Singapore’s overseas investments soared by 1.7%

Its investment hotspots boil down to these 3 Asian peers.

According to International Enterprise Singapore, the country’s cumulative stock of Direct Investments Abroad (DIA) rose by 1.7%, from S$409.5 billion in the preceding year to S$416.4 billion as of end-20111, despite the global slowdown. Emerging markets, especially Asia, continue to drive Singapore’s DIA. IE Singapore expects this trend to continue, given the projected growth of emerging markets.

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Mr Teo Eng Cheong, Chief Executive Officer of International Enterprise Singapore, said, “Emerging markets are not insulated from the global slowdown but they continue to be the engine of growth for our investments and trade.

The growing middle class, young population and urbanisation in these markets offer opportunities which will fuel our companies’ growth, and this will create good jobs with regional and global responsibilities for Singaporeans. IE Singapore’s global network and on-the-ground knowledge will ease companies’ entry into promising emerging markets around the world.”

Asia remains a bright spot for Singapore’s investments abroad. Singapore’s DIA to Asia grew 6.5% in 2011, faster than the overall growth of 1.7%. As of end-2011, Asia was the top destination for Singapore’s investments, accounting for 57.7% of Singapore’s DIA at S$240 billion.

The top three outbound investment destinations for Singapore companies within Asia were fast-expanding emerging markets: China at S$76.6 billion (+12.3%), Malaysia at S$34.0 billion (+7.7%) and Indonesia at S$32.3 billion (+14.4%), as of end-2011.

Some projects that drove the growth of investments included Hyflux’s S$39 million2 investment to develop a wastewater treatment plant, capable of treating up to 150,000m3 of domestic wastewater per day, for Zunyi City in China’s north Guizhou province. ATC, a surface treatment company with certifications to support the aerospace industry, ventured overseas for the first time, investing S$6 million in opening a plant in Penang.

A number of consumer lifestyle companies, such as Lalu and Putien, also expanded their presence into Kuala Lumpur in 2011. In Indonesia, Frasers Hospitality invested S$37 million into its 108-unit Frasers Residence Sudirman, marking its first major foray into Jakarta’s market for serviced residences.

In 2012, Singapore’s total trade reached S$984.9 billion, growing 1.1% from 20114. The growth in total trade was supported by the 3.2% rise in imports, which outweighed the decline in exports. Exports of goods declined by 0.9% due to weakened global demand, especially electronics, while non-oil domestic exports grew 0.5%.