Singapore attracted SGD 127 billion in fixed asset investments last year, marking a more than 40% decrease from the previous year but remaining consistent with historical trends. According to annual investment data released by the Economic Development Board on Tuesday (January 30), Singapore's Total Business Expenditure (TBE) reached SGD 89 billion last year. Once all investment commitments materialize, an estimated 20,000 jobs will be created over the next five years, contributing to an annual economic value-addition of SGD 267 billion.
In 2022, boosted by investments in the semiconductor sector, Singapore secured a record-breaking SGD 225 billion in fixed asset investments. While the Economic Development Board anticipates a performance dip in 2023 compared to 2022, last year's results surpassed the board's set medium-to-long-term goals and aligned with past trends.
Global players in the chemical, electronics, healthcare, and aerospace manufacturing sectors continue to invest in Singapore to enhance their supply chain resilience, serving global and Asian customers. The Economic Development Board notes an increase in investment projects, with last year's TBE, anticipated job creation, and economic value-addition all surpassing 2022 figures.
Investment projects in corporate headquarters and professional services accounted for nearly 70% of TBE. Information and communication technology companies played a major role in headquarters projects, reflecting the rise of Southeast Asia's digital economy and widespread digitization across industries. Of the estimated 20,000 jobs to be created, 58% are expected in the service sector, 26% in research and development, and 16% in manufacturing.
Due to ongoing geopolitical tensions, policy uncertainties arising from local elections, intensified competition for investment, and various macroeconomic uncertainties, the Economic Development Board anticipates challenging business and investment prospects in 2024.
The board aims to strengthen Singapore's position as a key node in global advanced manufacturing and a service hub in Southeast Asia. One approach involves encouraging industry transformation by collaborating with large enterprises to leverage opportunities in artificial intelligence and digitization, enhancing productivity. Additionally, the board will drive the transformation of Singapore's major industrial activities, including energy and chemicals, towards low-carbon solutions, exploring new opportunities for sustainable development products, experimenting with climate technologies, and fostering new green and sustainable development businesses.