According to the latest economic report by the Economic Development Board (EDB) yesterday (Feb 2), Singapore saw an 38.75% decline in inbound investments since 2012. This is the fourth year of declining inbound investments since 2012, which saw a peak at S$16 billion. Last year’s inbound investments is only at S$9.8 billion, a 38.75% decline from 2012.
The chairman of EDB, Beh Swan Gin, conceded that Singapore is losing foreign investments as the years goes. However he blame land limitation as the key factor behind stifling growth:
“The years of stellar double-digit multi-billion-dollar investments were a thing of the past. In 2007 and 2008, FAI was more than S$17 billion a year because of large petrochemical investments in Jurong Island. We don’t have that much land, so I don’t think we can continue to expect to have this type of big investment. So the S$8 billion to S$10 billion (range) is what we believe to be sustainable for the medium term.”
Despite the dismaying figures, EDB Chairman Beh Swan Gin expressed optimism:
“The volume of global trade this year is expected to grow, compared with last year, while commodity prices have stabilised. These are all fairly positive signs that the global economy is stable, and there should be no reason for doom and gloom.”
Singapore is currently facing a slowing economy, posting the lowest GDP growth among Asian and Oceania countries. Job seekers outnumbered job vacancies at 100 to 91, but the Singapore government is however unconcerned by the worsening development. In his latest Chinese New Year message, Prime Minister Lee Hsien Loong claimed that the economy is only “restructuring” and that job losses are inevitable.