Is investment in manufacturing and industrial firms shrinking?
A survey showed that investors are down weighting on industrials.
Investors are “down weighting” their interest in industrials and manufacturing amidst supply chain challenges, a 2022 Gallagher survey showed.
Global brokerage and consultancy firm, Gallagher, said the investors are shrinking their investment to a tune of 75%.
“As a financial hub for the wider Southeast Asia region, and a powerhouse of production, this an interesting response from Singapore-based private equity firms,” read the report.
Gallagher pointed out that manufacturing has been the most devastated by the trade woes so divestment in the segment is more likely to be a “short term response” on the ongoing problem.
Many Southeast Asian nations, including Singapore, have been “moving up the manufacturing value chain with a greater focus on semiconductors and nanotechnology,” Gallagher also noted.
Over 500 investors, including Singapore, were interviewed in Gallagher’s Infrastructure Investment Survey.