Asia remains top investment hotspot for S'pore companies

Asia remains top investment hotspot for S'pore companies

SINGAPORE - Singapore's cumulative stock of Direct Investments Abroad (DIA) rose by 1.7 per cent, from $409.5 billion in the preceding year to $416.4 billion as of end 2011, despite the global slowdown.

Emerging markets, especially Asia, continue to drive Singapore's DIA. IE Singapore said today that it expects this trend to continue, given the projected growth of emerging markets.

Investments and trade driven by booming consumer markets in Asia

Mr Teo Eng Cheong, Chief Executive Officer of International Enterprise (IE) Singapore, said: "Emerging markets are not insulated from the global slowdown but they continue to be the engine of growth for our investments and trade.

"The growing middle class, young population and urbanisation in these markets offer opportunities which will fuel our companies' growth, and this will create good jobs with regional and global responsibilities for Singaporeans.

"IE Singapore's global network and on-the-ground knowledge will ease companies? entry into promising emerging markets around the world," he added.

Direct investments abroad

Asia remains a bright spot for Singapore's investments abroad. Singapore?s DIA to Asia grew 6.5 per cent in 2011, faster than the overall growth of 1.7 per cent.

As of end-2011, Asia was the top destination for Singapore's investments, accounting for 57.7 per cent of Singapore's DIA at $240 billion.

The top three outbound investment destinations for Singapore companies within Asia were fast-expanding emerging markets: China at $76.6 billion (+12.3 per cent), Malaysia at $34.0 billion (+7.7 per cent) and Indonesia at $32.3 billion (+14.4 per cent), as of end 2011.

Some projects that drove the growth of investments included Hyflux?s S$39 million investment to develop a wastewater treatment plant, capable of treating up to 150,000m3 of domestic wastewater per day for Zunyi City in China?s north Guizhou province.

ATC, a surface treatment company with certifications to support the aerospace industry, ventured overseas for the first time, investing $6 million in opening a plant in Penang.

A number of consumer lifestyle companies, such as Lalu and Putien, also expanded their presence into Kuala Lumpur in 2011.

In Indonesia, Frasers Hospitality invested $37 million into its 108-unit Frasers Residence Sudirman, marking its first major foray into Jakarta?s market for serviced residences.

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