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