Speaking in Singapore, the first stop of a visit that will also take him to Japan and South Korea, Merz said there were "no uncertainties in Europe".

"Under the federal government I lead, investment opportunities will be continuously improved," Merz said after meeting Singapore Prime Minister Lawrence Wong.

"All I can say is that I encounter a great deal of confidence here in Germany and in Europe as locations for investment," the German leader added.

His comments came despite fresh turbulence in Berlin, where his government has faced pressure —  including the resignation this month of a key minister from its junior coalition partner.

Merz's approval ratings have also weakened, while support for the far right has risen.

Elsewhere in Europe, France has seen widespread looting and protests over the past weeks.

Singapore's Wong said investor confidence remained high in Germany and Europe.

"Our investors are long-term investors. They are not just investing for one election cycle," he said.

"Singapore believes in the longer term potential of Germany and Europe."

Germany has been seeking to diversify its strategic and trade links to counter the perceived unreliability of the United States or China's growth as an economic rival.

Merz said Singapore, Japan and South Korea had "common interests".

"If we undertake these efforts together, then our independence from other countries will grow significantly," Merz said, without naming specific nations.

China is Germany's top economic partner in Asia and has long been a major investment destination but is also seen as a growing competitor.

Merz will fly to Japan on Wednesday, where he will meet Prime Minister Sanae Takaichi, and to South Korea on Thursday and Friday.

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