EDB Year 2012 In Review

Date: 28 January 2013
Year in Review 2012

Record investments reflect investors’ continued confidence in Singapore’s growth potential

EDB RECORDS NEW INVESTMENT HIGH FOR 2012, MOVES INTO 2013 WITH CAUTIOUS OPTIMISM 

Record investments reflect investors’ continued confidence in Singapore’s growth potential

OVERVIEW

1. EDB achieved record investment commitments in 2012 as investor interest and confidence in Asia remained strong. This reflects Singapore’s continued attractiveness to businesses. It also demonstrates that Singapore’s positioning as a Global-Asia hub, as well as EDB’s ‘Home’ strategy continue to resonate strongly with companies looking for a strategic base in Asia to drive their business, innovation and talent activities.  

2. For 2013, EDB’s investment forecast reflects a consideration between the cautiousness from the sluggish global economy and the optimism of continued investment interest by companies to tap growth in Asia. 

(II)YEAR 2012 IN REVIEW

3. In 2012, EDB’s Fixed Asset Investments (“FAI”) and Expected Value-Added Per Annum (“VA”) exceeded the forecast numbers despite global economic uncertainties, especially in the second half of 2012.

Indicator 2011 Actual 2012 Forecast 2012 Actual
Fixed Asset Investments (S$ billion) 13.7 13.0 – 15.0 16.0
Total Business Expenditure Per Annum (S$ billion) 7.3 6.0 – 7.5 6.2
Expected Value-Added Per Annum
(S$ billion) 
15.5 15.0 – 17.0 20.3
No. of Skilled Jobs 20,300 18,000 – 21,000 18,600

(Please refer to Annex A and Annex B for details)

4. FAI, at S$16.0 billion, was an all-time high 1 due partly to significant investments from the Electronics and Energy & Chemicals industries. The record FAI is a validation of EDB’s ‘Home’ strategy, and reflects the continued strong investment interest by companies to seize long-term growth opportunities in Asia through Singapore. Total Business Expenditure Per Annum (“TBE”), at S$6.2 billion, was at the lower end of the forecast, and reflects the short term cautious business sentiments in 2012.

5. When investments committed in 2012 are fully implemented, they will contribute a record S$20.3 billion in VA, and create 18,600 new skilled jobs, meeting our forecast. 

6. In spite of the uncertain global economy, Singapore’s tight labour market and foreign manpower policy adjustments, companies remain confident in Singapore’s strong business fundamentals.  Singapore’s Global-Asia positioning continues to gain traction from both global and Asian companies. In particular, global companies, both large MNCs and, increasingly, medium-sized enterprises continue to find Singapore attractive as a strategic location to stage their Asian growth from. Singapore’s strong fundamental attributes of trust, knowledge, connectedness and liveability that have been built up over the last 50 years, remain valuable to investors, especially so for high-value industries, such as infant nutrition and pharmaceuticals; and across various activities including research & development, supply chain management, manufacturing and talent development. 

(III)2013 INVESTMENT OUTLOOK

7. With the continued uncertainty over the global economy, EDB is cautiously optimistic about investment commitments in 2013.

Indicator 2012 Actual 2013 Forecast
Fixed Asset Investments (S$ billion) 16.0 11.0 – 13.0
Total Business Spending less depreciation per annum (S$ billion) 6.2 6.5 – 8.0 
Expected VA per annum (S$ billion) 20.3 16.0 – 18.0
No. of Skilled Jobs 18,600 19,000 – 22,000

1Spikes due to the petrochemical cracker-related investments in 2007 and 2008 are excluded

8. The lower 2013 FAI forecast is consistent with the level of capital-intensive investments expected over the medium term, in keeping with Singapore’s land and manpower constraints. The increase in TBE and number of skilled jobs reflects our confidence that there are good investment prospects ahead for Singapore, against the backdrop of Asia’s growth, and an increasing focus by global companies on Southeast Asia. 

9. Even though growth prospects in the developed economies might be weak, MNCs and Asian companies continue to show strong investment interest in this part of the world.  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. Even as Singapore embarks on economic re-structuring, EDB will continue to focus on enhancing Singapore’s capabilities and competitiveness, to capture these new opportunities. This will enable Singapore to grow in a sustainable manner while creating good jobs and careers for Singaporeans.  

(IV) CONCLUSION

10. “The record investments achieved by EDB in 2012 reflect Singapore’s continued attractiveness as a business location,” said Mr. Leo Yip, Chairman of EDB. “As we move into 2013, despite the challenges of the global economy, Singapore remains at the heart of a vibrant Asia that is growing. There continue to be good business opportunities that Singapore will do well to capture, that can help secure our economic future for a long time to come. EDB will continue to build on Singapore’s strengths, harness new technologies to strengthen our key sectors such as manufacturing, and seize opportunities to further bolster our competitive position.” 

ABOUT THE EDB
The Singapore Economic Development Board (EDB) is the lead government agency for planning and executing strategies to enhance Singapore’s position as a global business centre.  EDB dreams, designs and delivers solutions that create value for investors and companies in Singapore.  Our mission is to create for Singapore, sustainable economic growth with vibrant business and good job opportunities. EDB’s ‘Host to Home’ strategy articulates how we are positioning Singapore for the future.  It is about extending Singapore's value proposition to businesses not just to help them improve their bottom line, but also to help them grow their top line through establishing and deepening strategic activities in Singapore to drive their business, innovation and talent objectives in Asia and globally.  

For more information on EDB, please visit www.sedb.com

For media enquiries, please contact:
Mr. Glenn Koh
Corporate Communications
Tel: (65) 6832-6146
Mobile: (65) 9738-7187
Email: glenn_koh@edb.gov.sg

DOWNLOADS
EDB Year 2012 in Review
EDB Year 2012 in Review

EDB RECORDS NEW INVESTMENT HIGH FOR 2012, MOVES INTO 2013 WITH CAUTIOUS OPTIMISM 

Record investments reflect investors’ continued confidence in Singapore’s growth potential

28 January 2013
Annexes A-B


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