According to the Economic Development Board (EDB), Singapore attracted SGD 12.7 billion (USD 9.5 billion) in fixed asset investments in 2023. The chemicals sector led with 35% of total investments, followed by electronics at 24.2%, and research and development at 16.6%.
These investments are anticipated to generate 20,045 new jobs, with 58% in services, 26% in R&D, and 16% in manufacturing. While industrial policies in other countries intensified competition, Singapore’s reputation as a reliable business hub continues to attract investors, according to EDB managing director Jacqueline Poh.
Total business expenditure amounted to SGD 8.9 billion (USD 6.6 billion), with 70% of expenditure coming from the headquarters and professional services sector as global firms increasingly use Singapore as a base. While investments from China and India declined from 2022, there was greater interest from Japan, and continued investments from the United States and Europe.
EDB highlighted increased investment in R&D and innovation activities, reflecting the deep presence MNCs have in Singapore, as well as growing interest from foreign startups. EDB has championed innovation through initiatives like the Corporate Venture Launchpad program, facilitating the launch of ventures in AI, data services, climate technology, and agricultural technology.
Looking ahead, geopolitical tensions, policy uncertainty, and intensified competition pose challenges for 2024. EDB’s strategies for the future include fostering collaboration between multinational and local businesses, focusing on sectors like healthcare, environmental sustainability, and aerospace, and leveraging opportunities in AI and digitalization for increased productivity. Additionally, efforts will be made to train and reskill Singaporeans for emerging sectors and develop local talent for leadership roles, both domestically and internationally.
(Source: The Straits Times)
