News Update $11.8b investments secured Singapore

Jan 25, 2010

By Fiona Chan

The EDB is forecasting $7 billion to $9 billion in total business spending, up from last year's $6.8 billion. -- ST PHOTO: MALCOLM MCLEOD

COMPANIES around the world invested $11.8 billion in fixed assets in Singapore last year, a figure that came in at the top end of the Economic Development Board's (EDB) forecasts despite the recession.
The EDB, which is responsible for getting companies to invest in Singapore, had forecast $10 billion to $12 billion in fixed asset investments - such as factories and machinery - last year.
It is keeping the same forecast of $10 billion to $12 billion in total FAI for this year. Even though the economy is improving, companies remain cautious about embarking on major investments as consumer demand is still weak in the developed countries, the EDB said.
But the agency is expecting companies to spend more on items such as wages and rentals.
This expenditure, which the EDB calls total business spending, may hit a record this year. The EDB is forecasting $7 billion to $9 billion in total business spending, up from last year's $6.8 billion. This year's investments are also expected to create 14,000 to 17,000 skilled jobs, compared to the 15,200 created last year.
EDB chairman Leo Yip told reporters on Monday that Singapore is well positioned to attract new investments in the coming year, from both global companies coming to Asia to tap on the region's growth and Asian companies looking to internationalise.