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Singapore’s Economic Development Board is intensifying efforts to attract foreign investment as global competition for capital reaches unprecedented levels, according to the agency’s chairman. Speaking about the outlook for Singapore foreign investment, EDB Chairman Png Cheong Boon acknowledged that creating quality jobs will become increasingly challenging amid structural shifts in the global business landscape. The board plans to cast a wider net by engaging more companies across diverse sectors, regions, and growth stages.
The announcement comes as more multinational corporations look beyond traditional markets for expansion opportunities and supply chain resilience. Southeast Asia has emerged as a particularly attractive destination due to its brighter growth prospects, and Singapore is well positioned to serve as a gateway for companies seeking regional expansion, according to Mr Png.
Increased Competition for Singapore Foreign Investment
The EDB chairman emphasized that Singapore must operate with clear awareness of the changing global context. To generate the same number of employment opportunities as in previous years, the agency will need to secure significantly more new projects than before. This reality reflects the shifting nature of modern business operations and investment patterns.
However, Mr Png stressed that Singapore cannot rely on a scattergun approach. The nation must concentrate efforts on sectors where it has developed strong capabilities and established global leadership positions to maintain its competitive advantage in attracting investment.
Aerospace Sector Highlights Competitive Strengths
The EDB pointed to Singapore’s aerospace industry as a prime example of successful sector development. Over the years, the country has built a substantial aerospace maintenance, repair, and overhaul industry with a global leadership position in aircraft engine component repairs, Mr Png noted. This demonstrates the value of sustained focus on specific high-value sectors.
Additionally, the aerospace sector represents one of Singapore’s strongest growth areas, illustrating how strategic investment in particular industries can yield long-term economic benefits. Such focused development provides a model for future sector cultivation.
Artificial Intelligence and Future Growth Engines
The EDB report outlined priority areas aligned with the Economic Strategy Review Committee’s recommendations. Chief among these is strengthening Singapore’s leadership in growth sectors, particularly artificial intelligence. The goal is to position the nation as both a leading AI hub and an AI-empowered economy.
Meanwhile, the agency will pursue emerging opportunities to create new economic growth engines. This includes identifying, attracting, and anchoring high-growth companies with potential to become future industry leaders. Such firms represent crucial sources of innovation and employment for Singapore’s economy.
In contrast to purely focusing on large established corporations, this approach recognizes the value of engaging companies at different growth stages. Startups and scale-ups may offer significant long-term value despite smaller initial investment sizes.
Workforce Development Remains Priority
The EDB emphasized continued partnerships with companies to train and upskill the local workforce. Ensuring a strong talent pipeline with future-ready skills is essential to fuel sustained economic growth, according to Mr Png. This human capital development complements efforts to attract foreign investment by making Singapore more attractive to global businesses.
Furthermore, workforce development helps ensure that Singaporeans benefit directly from foreign investment through quality employment opportunities. The challenge lies in anticipating which skills will be most valuable as industries evolve rapidly.
The EDB has not announced specific timelines for achieving these objectives, though the initiatives align with broader national economic strategy reviews currently underway. How successfully Singapore navigates intensifying global competition for investment capital will likely become clearer as major economies continue adjusting their own industrial policies.
