Multinationals’ pet: Singapore clinches 9th spot in foreign direct investment confidence index

More top firms set to expand in SG.

Singapore remains the multinationals’ favorite when it comes to setting up regional headquarters and R&D centers in Asia, as the country inched up one spot in the 2014 A.T Kearney Foreign Direct Investment Confidence Index.

Singapore placed 9th in a list of 25 countries that received the largest foreign direct investment. It is one of only three Asian countries in the Top 10, with China ranked second and India coming in at 7th place.

Among the factors that drive big-time companies to the country’s shores are its consistent regulations, relatively low corporate tax rates, and the large pool of qualified workers.

Here’s more from A.T Kearney:

In 2012, it received $56.7 billion in FDI, topping its previous record of $55.9 billion in 2011. In September 2013, the European Union and Singapore finalized the details of a comprehensive trade agreement, which the EU hopes will open the door to ASEAN’s 600 million consumers.

A favorite regional headquarters and R&D center for many multinationals, Singapore is expecting expansions from GlaxoSmithKline, Procter & Gamble, and Nestle. Global technology firm Thales opened its transportation-focused Regional Integration Center in Singapore in December 2013, its seventh global facility designed to cater to local product and operator support needs.

In the past two years, two top jet engine manufacturers have broken ground for a total investment of $810 million, following government efforts to become a global manufacturing hub for the aerospace industry.

In 2012, Rolls-Royce opened its first facility outside the United Kingdom for assembling its Trent series of aircraft engines, and U.S competitor Pratt & Whitney is building a factory that will start its first non-US production of turbofan blades in 2015.