SINGAPORE: The Economic Development Board (EDB) says
Singapore booked record investment commitments in 2012 as investor
interest and confidence in Asia remained strong.
EDB's Fixed Asset Investments (FAI), which refers to
capital investment in facilities, equipment and machinery, came in
at better-than-expected S$16 billion last year.
That's up from S$13.7 billion in 2011.
The growth was largely driven by significant investments in the
electronics and energy & chemicals industries which totalled
S$12.9 billion last year.
EDB says when the investments committed in 2012 are fully
implemented, they will contribute to a record S$20.3 billion in
value-add and create 18,600 new skilled jobs.
However, EDB says companies spent less on operating expenditure
including wages and rental last year, at S$6.2 billion. This was
down from S$7.3 billion in 2011.
It adds that the drop in business expenditure reflects the
short-term cautious business sentiments in 2012.
Looking ahead, EDB says it is "cautiously optimistic" about
investment commitments in 2013 due to continued uncertainty over
the global economy.
It projects FAI to hover at between S$11 billion and S$13 billion
this year, with the expected value-add at S$16 billion to S$18
billion.
Meanwhile, it expects total business spending and job creation to
expand further in 2013.
Total business spending is forecast to increase to S$6.5 billion to
S$8 billion, and the number of skilled jobs generated could rise to
between 19,000 and 22,000, compared to 2012.
EDB says in spite of the uncertain global economy, Singapore's
tight labour market and foreign manpower policy adjustments,
companies remain confident in Singapore's strong
fundamentals.
It adds that both large multinational corporations and,
increasingly, medium-sized companies continue to find Singapore as
an attractive destination to stage their growth in Asia.
- CNA/ir