Despite global uncertainties, the nation remains a key investment hub
Singapore has experienced a surge in investments from India, China, and Southeast Asia, even as the United States remains its largest investor. This trend highlights the city-state’s continued appeal as a global business hub despite economic challenges.
Speaking at a Reuters Newsmaker event, Singapore Economic Development Board (EDB) managing director Jacqueline Poh noted that Southeast Asia is projected to grow by 4% to 5% this year. However, she cautioned that investment levels in 2023 are likely to be lower than the record-breaking figures of 2022 when Singapore secured S$22.5 billion in fixed asset investments. More than 66% of those investments came from electronics manufacturing, driven by the semiconductor super cycle.
While the semiconductor sector played a crucial role in past investments, demand has softened. Singapore currently holds an 11% share of the global semiconductor market and is responsible for 20% of worldwide semiconductor equipment manufacturing.
Looking ahead, the EDB is focusing on attracting investments in green finance and renewable energy, including solar, wind, and hydropower. This strategic pivot aligns with Singapore’s sustainability goals and its ambition to remain at the forefront of economic transformation.
