RECORD 2010 INVESTMENT NUMBERS; MOMENTUM EXPECTED TO CARRY INTO 2011

Gaining traction: EDB’s ‘Home’ strategy and Singapore as Global-Asia hub

(I)	OVERVIEW
1.	EDB achieved strong investment commitments in 2010 on the back of the global economic recovery and rising investor interest in Asia.  EDB's 'Home' strategy and Singapore's positioning as the Global-Asia hub resonated well with companies looking for a home base in Asia to drive their business, innovation and talent activities.
2.	In 2011, EDB will seek to capitalise on the momentum of investor interest and build on the 'Home' strategy's early successes.  We will also identify and build capabilities to reinforce Singapore's Global-Asia positioning.  As these efforts continue to gain traction, we expect investment commitments to be sustained around the levels achieved in 2010.
(II)	YEAR 2010 IN REVIEW
3.	EDB's 2010 investment commitments set new records for total business spending (TBS)1  and number of skilled jobs created.  In addition, fixed asset investments (FAI)2  exceeded forecasts while the value-added (VA)3  per annum contributed by these projects, ranks as the second highest on record. Indicator 2009 Actual 2010 Forecast 2010 Actual Fixed Asset Investments (S$ billion) 11.8   10.0 - 12.0  12.9 Total Business Spending per annum (S$ billion)  6.8 7.0 - 9.0   8.6 VA per annum (S$ billion) 12.5  13.0 - 15.0   14.4 No. of Skilled Jobs  15,200 14,000 – 17,000  21,300 (Please refer to Annex A for details)
4.	TBS reached S$8.6 billion.  FAI, at S$12.9 billion, also represents a record year if spikes due to the petrochemical cracker projects in 2007 and 2008 are excluded.  When the projects committed in 2010 are fully implemented, they will create a record number of 21,300 new skilled jobs and contribute S$14.4 billion in value-added per annum.
5.	The economic rebound and prevalence of growth opportunities in Asia spurred companies to step up their investment interest and also look for a home base in the region.  EDB made significant progress in 2010 as our 'Home' strategy and Singapore's Global-Asia positioning resonated strongly with these companies.  Many companies increasingly view Singapore as an ideal location for their "control towers" to manage pan-Asian and global operations, develop products and services for Asian and international markets, as well as tap into and grow a pool of Asia-ready talent.  Examples of companies that have set up their home bases for business, innovation and talent in Singapore are listed in Annex B.  This has expanded our established position as the choice location for regional headquarters, to also become a preferred location for global and international headquarters.  These companies are listed in Annex C.
6.	In addition, EDB's continued focus on capital-, knowledge- and innovation-intensive (CKI) projects in manufacturing, R&D and product development, continues to generate good jobs and quality careers for the Singapore workforce.  Major investments that broke ground, were opened or announced in 2010 are listed in Annex D.
(III)	2011 INVESTMENT OUTLOOK
7.	While business prospects for the global economy in 2011 are mixed, the sentiment about growth in Asia is more positive.  Coupled with the momentum from 2010, EDB is therefore optimistic about the outlook for investments in 2011.
8.	EDB is refining the definition for TBS with effect from 2011. Traditionally, TBS has been a measure of EDB's performance in attracting services investments, while FAI tracks manufacturing investments. Since 2008, EDB has used both FAI and TBS to measure all investment commitments for a more complete picture of the value generated. To further fine-tune this approach, we will revise the computation of TBS to exclude depreciation.  As capital investments will continue to be accounted for through FAI, TBS less depreciation will be a more accurate indicator of economic activities that are not linked to fixed assets. EDB will provide forecasts for both TBS and TBS less depreciation for 2011 as a transition year.
9.	Our forecasts for 2011 are as follows: Indicator 2010 Actual 2011 Forecast Fixed Asset Investments (S$ billion) 12.9 12.0 - 14.0 Total Business Spending per annum (S$ billion)  8.6 7.5 - 9.0  Total Business Spending less depreciation  per annum (S$ billion) 7.2   6.0 - 7.5 VA per annum (S$ billion)  14.4  14.0 - 16.0 No. of Skilled Jobs 21,300  16,000 - 19,000
10.	The strong FAI forecast for 2011 is in part indicative of the interest in downstream specialty chemicals projects that have been enabled by the two recent petrochemical crackers. EDB also expects that continued and growing interest in Singapore as a home base in Asia will help sustain TBS for 2011 at last year's commitment levels. As for skilled jobs creation, the forecast for 2011 is lower than the figure achieved in 2010, as the exceptionally high number last year was partly due to a rebound from the cautious sentiments of 2009.
11.	In 2011, EDB will build on the early successes of our Home strategy to extend our outreach beyond multinational companies and Asian enterprises to include global mid-sized companies looking to set up their first presence in Asia. We will also promote innovation and commercialisation activities that lead to the creation of products and services for the Asian and global markets. Finally, EDB will initiate and support the launch of talent and leadership development programmes to firmly entrench Singapore's position as the Home for Talent in Asia.
(IV)	CONCLUSION
12.	"The record level of investments secured last year is testimony to the strength and continued competitiveness of our industry clusters and the growing momentum of EDB's 'Home' strategy to position Singapore for sustained growth," said Mr. Leo Yip, Chairman of EDB.  "Singapore's role as a strategic business location for global companies and Asian enterprises to grow their businesses, innovate, as well as access and develop talent, addresses a critical need for these companies. In 2011, EDB will accelerate the implementation of our 'Home' strategy, to be a partner to companies seeking to capture growth opportunities in Asia and globally. This will firmly establish Singapore as a strategic location in Asia, for global companies to tap into pan-Asian growth opportunities and for Asian enterprises to access global markets."
	Footnote: 1 TBS refers to a company's annual operating expenditure when the project is fully implemented. The major components include wages, depreciation and rental. 2 FAI refers to capital investments in facilities, equipment and machinery. 3 VA measures the direct contribution to Singapore's GDP when the projects are fully implemented. It excludes multiplier effects.
	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. We dream, design and deliver 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. For media enquiries, please contact: Ms Karen Lin Corporate Communication Tel: (65) 6832-6587 Mobile: (65) 9623-0355 Email: karen_lin@edb.gov.sg Ms Linette Tye Corporate Communication Tel: (65) 6832-6366 Mobile: (65) 9639-6382 Email: linette_tye@edb.gov.sg