Singapore still attractive investment location, drew $5.4 billion in first-half commitments, says Trade and Industry Minister

In 2023, the Economic Development Board attracted $12.7 billion in fixed asset investment commitments, following a record $22.5 billion in 2022, driven by a surge in semiconductor investments.

Renald Yeo

Renald Yeo

The Straits Times

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Companies, including large multinationals, may reduce or exit their operations in Singapore due to market shifts or changes in global strategies. PHOTO: THE STRAITS TIMES

October 16, 2024

SINGAPORE – Singapore continues to draw strong investments despite global corporate shifts, with the Singapore Economic Development Board (EDB) securing $5.4 billion in fixed asset investment (FAI) commitments in the first half of 2024.

This keeps the EDB on track to meet its medium- to long-term investment commitment goal of $8 billion to $10 billion in FAI in 2024, Deputy Prime Minister and Trade and Industry Minister Gan Kim Yong said on Oct 14.

In 2023, the EDB attracted $12.7 billion in FAI commitments, following a record $22.5 billion in 2022, driven by a surge in semiconductor investments.

DPM Gan was responding to Mr Yip Hon Weng, MP for Yio Chu Kang, who asked about multinational companies relocating, downsizing or retrenching workers in Singapore, as well as the key factors driving these decisions and concerns over the local workforce’s competitive edge.

Tech giants Dyson, Samsung Electronics, Amazon and Google are among companies that have laid off employees in Singapore this year.

In his written response, DPM Gan said: “Singapore remains an attractive location for investments.”

He noted that companies, including large multinational ones, may reduce or exit their operations in Singapore due to market shifts or changes in global strategies.

“In such situations, the government works closely with the companies and unions to assist the retrenched workers with skills upgrading and job matching,” he noted.

In May, cloud service provider Amazon Web Services (AWS) and pharmaceuticals giant AstraZeneca announced major investment commitments to the Republic.

AWS committed $12 billion for cloud and AI infrastructure over the next four years, while AstraZeneca will build a $2 billion facility for antibody-drug conjugates.

“These investments will translate into good jobs for Singaporeans,” said DPM Gan, reiterating that some 60 per cent of locals earning more than $12,500 a month work for foreign-owned firms.

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