SINGAPORE, Feb 2 — Singapore lowered its target for investment this year as the city state contends with uncertain global economic conditions and weaker overseas demand hurts its manufacturing sector.
The government forecasts S$8 billion (RM23.64 billion) to S$10 billion in fixed-asset investment commitments this year, the Economic Development Board said today, compared with S$11.5 billion lured in 2015.
“For 2016, EDB expects the level of investments to remain moderate due to uncertain global economic conditions,” the agency said in a statement. “We will continue to explore ways to seize new manufacturing opportunities, as a result of advanced manufacturing technologies such as robotics.”
Prime Minister Lee Hsien Loong is trying to transform the island into a global centre for research and innovation as he seeks new drivers of growth while traditional ones like electronics exports falter. The city-state is in the midst of a 10-year economic restructuring plan that includes reducing reliance on cheap foreign labour and boosting productivity.
The investments targeted this year should help generate 20,000 to 22,000 skilled jobs and contribute S$12 billion to S$14 billion in value-add to gross domestic product, the EDB said. The US made up 61 per cent of foreign investment into Singapore last year, while Europe contributed 13.2 per cent and Japan 3.7 per cent. — Bloomberg
