Press Release
09 February 2023
1. In 2022, the Singapore Economic Development Board (EDB) attracted S$22.5 billion in Fixed Asset Investment (FAI) commitments. Total Business Expenditure per annum (TBE) and Job Creation commitments were in line with medium to long term targets.
2. These investments were secured amidst a complex global operating environment. They demonstrate that:
a. Asia continues to be seen as offering growth opportunities;
b. Singapore is viewed as a trusted hub for capital, talent, flows of goods and data; and
c. Singapore’s growing innovation capabilities are being recognised.
YEAR 2022 IN REVIEW
3. The S$22.5 billion in FAI commitments in 2022 was a record high for EDB. This was driven by the electronics sector, which accounted for around two-thirds of FAI commitments. The sector saw an exceptional inflow of large manufacturing projects in the first half of the year. However, we do not expect this same level of FAI commitments in 2023 in view of global macro-uncertainties, increased global competition for investments, and the sharp slowdown in demand that the semiconductor industry is experiencing.
4. EDB also secured S$6.2 billion in TBE, which is in line with our medium-term goals. The Headquarters and Professional Services sector accounted for about half of TBE commitments as more global businesses used Singapore as a hub to build resilience in their operations as well as to access regional and global markets.
5. When projects are fully implemented in the coming years, they will create 17,113 new jobs with a projected contribution of S$20.6 billion in Value-Added Per Annum (VA). Of the jobs created, 61% will be in Hub and Business Services, 27% in Advanced Manufacturing, while 12% will be in Innovation (jobs created by Research & Development projects).
| Indicator | 2021 Actual | Medium- to Long-term Targets |
2022 Actual |
| Fixed Asset Investment (S$ billion) |
11.8 |
8.0 – 10.0 |
22.5 |
| Total Business Expenditure Per Annum (S$ billion) |
5.2 |
5.0 – 7.0 |
6.2 |
| Expected Value-Added Per Annum (S$ billion) |
16.8 |
- | 20.6 |
| Expected Jobs | 17,376 |
16,000 – 18,000 |
17,113 |
6. Singapore’s economic fundamentals and reputation for being stable, reliable and neutral allowed us to capture quality investments from diverse sources across the US, Europe and Asia. We have also seen rising interest from businesses from China and other Northeast Asian economies seeking to participate in the growing markets of South and Southeast Asia.
7. The long-term prospects of the digital industry remain positive. Companies across a variety of industries continue to build capabilities in data, digitalisation and automation. There are also opportunities from the growing digital economy in Southeast Asia, including in fintech, cloud, cybersecurity, B2B SaaS and gaming. We expect resilient demand for tech skills across all industries in Singapore.
8. Our vibrant R&D and innovation ecosystem attracted companies to establish product innovation activities, creating new areas of growth and jobs for Singaporeans. EDB continues to work with businesses to build and invest in Singapore-based new ventures. Our S$10 million pilot Corporate Venture Launchpad (CVL) programme in 2021 supported 13 companies to nurture new venture concepts. Six new ventures are being launched with their parent companies committing almost S$50 million of follow-on seed investments to build them. In July 2022, EDB expanded the CVL programme by putting aside an additional S$20 million to support a larger pool of companies. EDB aims to work with companies on 20 to 30 projects over the next two years.
9. As part of the global impetus for sustainability, EDB is working with carbon-intensive companies to implement decarbonisation pathways to help the manufacturing sector achieve Singapore’s net-zero goal by 2050. This is complemented by efforts to attract companies with promising technologies in emissions-reduction and renewable energy, as well as agrifood, the circular economy and carbon services. In addition, together with Enterprise Singapore, EDB has been developing the carbon services sector, resulting in a growing ecosystem of over 70 companies in that space today.
INVESTMENT COMMITMENT GOALS
10. EDB will maintain the following investment commitment goals for the medium- to long-term:
| Indicator | 2022 Actual |
Medium- to Long-term Targets |
| Fixed Asset Investment (S$ billion) |
22.5 |
8.0 – 10.0 |
| Total Business Expenditure Per Annum (S$ billion) |
6.2 |
5.0 – 7.0 |
| Expected Jobs | 17,113 | 16,000 – 18,000 |
11. The business outlook for 2023 is challenging given slowing global demand and high interest rates. But investments are multi-year commitments, and we believe that there are opportunities in high-growth and high-VA sectors, including Advanced Manufacturing (Electronics, Healthcare and Aerospace), the Green Economy (including Agri-food) and the Digital Economy. Singapore is also strengthening capabilities as a supply chain control tower and as a nexus of entrepreneurship, innovation and private capital.
12. We will support closer economic cooperation with our neighbours to remain attractive to global companies and founders seeking to invest in Asia, and those from Asia looking to expand to the world. We will also continue to nurture and grow a globally competitive pool of talent by uplifting the Singaporean workforce and remaining open to global talent and workers with complementary skills.
