Singapore ranked top FDI confidence destination in Asia-Pacific

34% cited Singapore's innovation capabilities and access to new customer markets. 

Singapore has emerged as the top destination for foreign direct investment (FDI) confidence in the Asia-Pacific region, according to a Bloomberg Media report.

Amongst regionally focused investors, 62% expressed increased net confidence in Singapore as an FDI destination. Key factors contributing to this sentiment include political stability (62%), rule of law (54%), and tax incentives (53%). These attributes were identified as the most critical in shaping investor decisions.

Singapore's innovation capabilities and access to new customer markets were cited by 34% of respondents as top reasons for investment.

Additionally, 26% pointed to the availability of a high-skilled workforce as a key motivator. These factors position Singapore as a competitive hub for forward-looking industries.

Investors also identified major business opportunities in areas aligned with global trends. 55% see artificial intelligence (AI) for productivity gains as the top opportunity in the next one to three years. Other leading areas include supply chain diversification (45%) and accelerated digital transformation (41%).

When it comes to project types, investors prioritise expansion into new markets (53%), development of supply chains and logistics (50%), and investment in business support services (45%).

Industry-wise, advanced technology leads the way as the most promising sector (54%), followed by IT/computer technology (40%) and business services (38%).

Globally, the report showed a shift in investor concerns. Geopolitical risks, particularly US-China relations (38%) and tariffs (37%), have overtaken inflation and supply chain disruptions as the top perceived threats to FDI.

Despite this, 76% of global respondents still plan to expand internationally, indicating sustained interest in cross-border growth.