SINGAPORE, SG – Singapore’s data far exceeded its expectations on investment commitments for 2019, recording a 39% increase from its 2018 data.
Despite a challenging year largely due to the uncertainty in the global economy, 2019 proved to be excellent for Singapore’s investment numbers, pulling in around $15.2 billion last year.
The increase in the country’s investments in 2019 was mainly driven by the rise in manufacturing investments from chemical and energy companies, as well as the semiconductor firms, according to the year-in-review that the Economic Development Board (EDB) shared on Thursday.
According to Beh Swan Gin, Chairman of EDB, the investment commitment numbers of Singapore for 2019 is a strong testament of the position of the country as a favored location for a lot of companies and firms wanting to tap in the economic growth in Asia. The EDB chairman further stated that the competitiveness of Singapore in the market, especially as a hub for digital activities, innovation, and manufacturing had attracted investors.
The forecast of EDB for the country’s investment commitments for 2019 was between $8 billion to $10 billion. However, the final number released was so much better than they have expected, with around 28.4% of the numbers accounting for investments in the electronics industry.
The recent $15.2 billion of investment commitments for 2019 in Singapore further exceeded the data from 2018, which was only at $10.9 billion.
When such investment commitments become fruitful, it is expected to create 32,814 jobs, which would also double the 16,000 to 18,000 new positions that were forecasted.
Among the biggest commitments in the country in 2019 was of the multibillion-dollar investment of the chipmaker Micron Technology. The investment is an expansion of a plant in Woodlands. Another significant commitment for Singapore includes the $1.4 billion investment from the gas behemoth Linde in a new complex set for the Jurong Island.
According to chairman Beh, the strong commitment figures for 2019 reflects the confidence of the companies on the fundamentals of Singapore. He also stated that firms are starting to look forward to long-term investments in the country and preparing for an increase in demand despite the challenges in the economy.
The project commitments in 2019 are expected to fund a value-added per year in the country of around $29.4 billion, which would be a direct contribution to the gross domestic product (GDP) of the country.
ChngKai Fong, managing director of EDB, said that there are three major areas they wish to focus on: supporting firms in terms of their innovation plans, strengthening the country’s position as a top choice for companies who want to tap at opportunities in Southeast Asia, and reinforcing Singapore’s role as a center for both manufacturing and non-manufacturing firms for building and delivering digital solutions.