Singapore Attracts Strong FDI Amid Global Shifts

Oct 2024

Singapore has continued to attract substantial foreign direct investment (FDI) amidst global corporate changes, with the Economic Development Board (EDB) securing SGD 5.4 billion (USD 4 billion) in fixed asset investment commitments in the first half of 2024. This keeps EDB on track to reach its annual investment target of SGD 8-10 billion (USD 6-7.6 billion) in 2024.These investments underscore Singapore’s resilience and its status as a key FDI hub in the region.

As Asia’s top financial center and the world’s third most competitive, Singapore has fostered a robust financial environment that serves as a gateway for global businesses looking to expand in ASEAN, the world’s third most populous region and a rapidly growing economy expected to become the fourth largest by 2030. The city-state’s comprehensive range of financial services, spanning venture capital, private equity, and sustainable finance, provides a strong foundation to support business expansion across the region.

Building on this strong FDI performance, Singapore’s financial sector plays a critical role in supporting regional growth and investment across ASEAN. The city-state’s established financial infrastructure, which contributed about 14% to GDP in 2023, allows it to serve as a financing hub for global businesses seeking expansion into ASEAN markets. This region, projected to become the fourth-largest global economy by 2030, offers vast potential, and Singapore’s capabilities in venture capital, private equity, and sustainable finance help meet the diverse needs of international investors and corporations seeking to capitalize on ASEAN’s economic trajectory.

To sustain its competitive edge as a destination for FDI, Singapore is prioritizing workforce skills aligned with digitalization and sustainable finance. Initiatives led by the Institute of Banking and Finance (IBF) and the Monetary Authority of Singapore (MAS), including the Jobs Transformation Map (JTM) and Future Enabled Skills, focus on aligning local talent with the evolving demands of the financial sector. These efforts are integral to Singapore’s broader strategy to maintain its role as an ASEAN growth hub, ensuring that both the financial sector and the workforce are equipped to capture opportunities in the fast-growing digital and green economies across the region.

(Sources: MTI; MAS; The Business Times)

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