ANN/THE STRAITS TIMES – Singapore recorded a 6.3-per-cent increase in fixed asset investments in 2024, attracting SGD13.5 billion in commitments compared to SGD12.7 billion the previous year, according to the Economic Development Board (EDB) in its annual year-in-review.
Despite this growth, the global investment landscape in 2025 is expected to face challenges due to geopolitical uncertainties and escalating trade tensions.
Fixed asset investments, which refer to capital investments in facilities, equipment and machinery, were largely driven by the electronics sector. The sector accounted for approximately 57 per cent of total investment commitments, fuelled by a strong semiconductor outlook amid rising demand for artificial intelligence (AI) and digitalisation.
Biomedical manufacturing emerged as the second-largest contributor, representing 16.5 per cent of total commitments, followed by headquarters and professional services at 8.4 per cent. Meanwhile, the chemicals sector saw a significant drop, declining from 35.6 per cent in 2023 to just 2.7 per cent in 2024. EDB attributed this sharp decrease to an oversupply of chemicals in global markets.
When asked about potential risks to Singapore’s semiconductor investment climate, following a United States (US) investigation into Chinese start-up DeepSeek’s acquisition of Nvidia semiconductor chips through intermediaries in Singapore, EDB referred to an earlier statement by the Ministry of Trade and Industry. The ministry stated that it expects US companies, including Nvidia, to comply with American export regulations and laws.
Beyond the dominant sectors, EDB highlighted new areas of growth, including precision engineering, artificial intelligence, and sustainable products and services, although further details were not disclosed.
In all, the projects secured in 2024 are expected to create around 18,700 new jobs when they are fully implemented in the next five years, a 6.71-per-cent decline from the preceding year.
When asked about the decline, EDB managing director Jacqueline Poh said the drop in percentage terms was negligible and that the tally was still above its medium-term goal. Of the jobs to be created, 46 per cent will be in services, 37 per cent in manufacturing, and the remaining 17 per cent in research and development (R&D) and innovation.
