Singapore's Investment Surge Amid Global Shifts

In 2025, Singapore saw increased investments despite global uncertainties, with a notable rise in Chinese commitments surpassing the U.S. for the first time. Fixed asset investments reached S$14.2 billion, while business expenditures grew to S$8.9 billion. Although job creation declined, sectors like manufacturing, led by AI-driven demand, remained dominant.

Singapore's investment landscape flourished in 2025, overcoming geopolitical and economic hurdles, primarily driven by increased Chinese participation, as revealed by the Economic Development Board. Total fixed asset investments rose to S$14.2 billion, while business expenditures surged by 6% to S$8.9 billion, marking significant growth amid global tensions.

China's contribution to Singapore's fixed asset commitments soared to 20.6%, surpassing the U.S for the first time. In comparison, the U.S. fell to 17.3%. This shift comes as Chinese firms seek international expansion amid slowing domestic growth, with Singapore providing a strategic domicile.

Despite robust investment in sectors like manufacturing, led by demand for semiconductors in AI, job creation saw a decline. The EDB attributes this to technological advancements, emphasizing the need for more diverse and strategic investments to maintain employment levels and economic growth.

(With inputs from agencies.)