The UK was the top investor in Singapore prior to 2005, but things have changed since then. The crisis at home and lack of credit for investment overseas had dropped UK from first to fourth position in 2009 as far investment in the Island nation is concerned. Netherlands jumped from fifth to top position in 2009 as it doubled its investment in the Island state.
The top ten foreign investors in Singapore are:
Top countries according to foreign direct investment in Singapore, 2011
|Sr No.||Country||FDI in billions of S$|
|5.||British Virgin Islands||52.5|
Norway with 21.8 billion Singapore dollars was at 11th position. Earlier, it was in top 10, but slipped out because of the entry of Bahamas.
Region wise order of top investors
Region wise Europe was at SGD 252 billion, Asia at SGD 162 billion, South and Central America and the Caribbean at SGD 146 billion, ASEAN at SGD 26 billion, Africa at SGD 15 billion (with SGD 13 billion from Mauritius alone), Australia and New Zealand were at SGD 13 billion in terms of their contribution towards FDI in Singapore.
Therefore Europe was the largest investor in terms of geographical area, followed by Asia. It was followed by South and Central America and the Caribbean, with Caribbean leading the chart, which is a relatively small region but is growing at a rapid rate and has enormous potential.
This is according to an authentic report by the Department of Statistics, Singapore Government. According to it, the investments from UK and Netherlands were mainly in manufacturing and financial services. Switzerland’s investments were focused upon financial and insurance sectors. It also had a strong portfolio in retail and wholesale sectors.
Total FDI in Singapore was around SGD 672 billion. It was just SGD 530 billion in 2009 and SGD 490 billion in 2008.
Government initiatives to attract FDI
FDI is increasing in Singapore because of the pro-development policies of its government and the relative stability of country’s economy in the financially most uncertain times. The Singapore government is cautious enough not to over-invest in uncertain economies and ventures and therefore, it’s the largest investments are done in India, which is a rapidly developing economy and relatively stable compared to EU and US.
The sectors attracting the FDI
The leading sectors where the FDI is coming in Singapore are financial and insurance services (financial services, banking and investment holding), wholesale and retail and manufacturing etc. Together, these sectors were responsible to invite more than 4/5th of the total FDI. Financial and insurance sector attracted almost 43% of the total FDI, with investment holding as a sub-sector of it invited S$243 billion. Banks were at S$15 billion and insurance services were at S$10 billion.
In the manufacturing sector, the prominent subsectors responsible for attracting FDI were pharmaceuticals (S$45 billion), computers, electronics and optical products (S$42 billion), refined petroleum products (S$21 billion), chemicals (S$9 billion) and machinery (S$7 billion).
The total contribution of manufacturing sector was S$140 billion in 2011.