(Feb 6): Investments into Singapore last year rose to S$13.5 billion (US$10 billion or RM59.75 billion) from S$12.7 billion in 2023, driven by pledges from sectors including semiconductors, aerospace and artificial intelligence (AI) despite a tough business environment.

The commitments are expected to create 18,700 jobs over the next five years, according to the Economic Development Board (EDB), the country’s investment promotion agency. About two-thirds of those jobs are likely to have a gross monthly wage above S$5,000.

“Companies continued to demonstrate strong interest in locating and expanding headquarters functions, as well as research and development and innovation activities here,” the EDB said in a statement on Thursday. “Singapore also gained traction with start-ups and founders from around the world, which have launched new ventures here.”

The city state’s economy is forecast to expand at a slower pace of 1%-3% from last year’s 4% growth. The central bank recently loosened its monetary policy settings for the first time in nearly five years, citing expectations of abating price pressures and slowing growth momentum. 

The Monetary Authority of Singapore’s easing shift in January may signal a swing in emphasis from inflation to growth, according to Bloomberg Intelligence. Central bankers globally are taking a watchful approach to the proposed US tariffs, waiting to see what’s actually implemented before assessing the impact. 

The EDB said the investment environment this year is expected to remain challenging.

“Protectionist policies stemming from economic nationalism and trade frictions will weigh on companies’ investment decisions,” it said. 

Uploaded by Tham Yek Lee