Singapore: Singapore received SGD 16 billion (about USD 12.9 billion) in Fixed Asset Investments last year, up 16.8 percent on 2011's SGD 13.7 billion, despite the global economic woes.
The state investment agency, Economic Development Board (EDB), said the investment growth was largely driven by significant inflows into the electronics and energy & chemicals industries which totalled SGD 12.9 billion last year.
However, the EDB was "cautiously optimistic" about investment commitments this year due to continued uncertainty over the global economy.
It has projected investments of between SGD11-13 billion for this year.
Both large multinational corporations and, increasingly, medium-sized companies continue to find Singapore an attractive destination to stage their growth in Asia, the EDB said.
Companies remain confident of Singapore's strong fundamentals in spite of the uncertain global economy, and the city state's tight labour market and foreign manpower policy adjustments, it said.
Even though growth prospects in the developed economies might be weak, multi-national corporations and Asian companies continue to show strong investment interest in this part of the world, said the EDB.
"Also, technological advancements such as those in advanced manufacturing will open up new possibilities for Singapore.
"These technologies present us the opportunity to build a stronger future of manufacturing in Singapore that will better optimise our land and manpower resources," it said.
Even as Singapore embarks on economic re-structuring, the EDB said it would continue to focus on enhancing the city state's capabilities and competitiveness, to capture these new opportunities.
Land-short Singapore focuses on high-tech and value-added product investments, industry observers said.
First Published: Monday, January 28, 2013, 17:39