EDB ACHIEVED RECORD INVESTMENT COMMITMENTS IN 2011 DESPITE CHALLENGING GLOBAL ECONOMIC ENVIRONMENT

Singapore's Global-Asia positioning and EDB's 'Home' strategy continue to gain traction with international companies and Asian enterprises
 

(I)	OVERVIEW
1.	EDB achieved record investment commitments in 2011 as investor interest in Asia remained strong. Singapore's positioning as a Global-Asia hub and EDB's 'Home' strategy resonated well with companies looking for a strategic base in Asia to drive their business, innovation and talent activities.
2.	For 2012, EDB expects investment commitments to be sustained around 2011 levels. EDB will continue to build on and strengthen Singapore's Global-Asia positioning even as new capabilities put in place in recent years gain traction.
(II)	YEAR 2011 IN REVIEW
3.	EDB achieved record investment commitments in 2011, meeting or exceeding the forecast announced in January last year. This took place despite global economic uncertainties especially in the second half of 2011. Indicator 2010 Actual 2011 Forecast 2011 Actual Fixed Asset Investments1 (S$ billion) 12.9  12.0 – 14.0  13.7  Total Business Spending per annum2  (S$ billion)  8.6 7.5 – 9.0   8.6 Total Business Spending less depreciation per annum3 (S$ billion) 7.2  6.0 – 7.5   7.3 Expected VA per annum4 (S$ billion) 14.4   14.0 – 16.0  15.5 No. of Skilled Jobs  21,300  16,000 – 19,000  20,300 (Please refer to Annex A for details)
4.	Investment commitments for FAI, TBS, TBS less depreciation and value-added per annum were at the top end of the forecasts. FAI, at S$13.7 billion, represented a record year if spikes due to the petrochemical cracker-related investments in 2007 and 2008 were excluded. When projects committed in 2011 are fully implemented, they will contribute a record S$15.5 billion in value-added per annum and create 20,300 new skilled jobs, above our forecast range of 16,000 – 19,000 jobs.
5.	EDB continued to secure key projects in manufacturing, R&D and innovation last year, generating good jobs for the Singapore workforce. Major investments that broke ground, were opened or announced in 2011 are listed in Annex B.
6.	Singapore's Global-Asia positioning and EDB's 'Home' strategy continued to resonate strongly with international companies and Asian enterprises. International companies stepped up their presence in Singapore to better orchestrate and coordinate the growth of their Asian or global operations, while Asian enterprises leveraged Singapore as their platform for internationalisation and to seek out growth opportunities beyond their domestic markets. Business activities undertaken in Singapore by these companies are expanding to include the development of products, services and solutions for Asian and international markets, as well as the development and deployment of Asia-ready talent to harness opportunities in the region.  Examples of companies that have set up their home bases in Singapore as well as those with regional or global headquarters here are listed in Annex C.
(III)	2012 INVESTMENT OUTLOOK
7.	EDB is cautiously optimistic about the outlook for 2012 and expects investment commitments in 2012 to be sustained at 2011 levels. Investment interest in Asia remains healthy in spite of the uncertainties in the global economy, especially in the Eurozone.
8.	EDB's forecast for 2012 is as follows: Indicator 2011 Actual 2012 Forecast Fixed Asset Investments (S$ billion) 13.7 13.0 – 15.0 Total Business Spending less depreciation  per annum (S$ billion) 7.3 6.0 – 7.5 Expected VA per annum (S$ billion) 15.5  15.0 – 17.0 No. of Skilled Jobs 20,300 18,000 – 21,000
9.	The strong FAI forecast for 2012 reflects the continued strong interest in downstream chemicals projects that have been enabled by the two new petrochemical crackers. Decisions on such capital-intensive investments are typically based on long term strategic considerations and are less sensitive to short term economic volatility. Barring any major negative economic event, EDB expects that the investment momentum in 2011 will be carried over into 2012.
10.	Initiatives to build new capabilities launched in recent years have strengthened Singapore's position as a Global-Asia hub. For example, Singapore's ability to provide pan-Asian insights is valued by the international business community, while the establishment of centres of excellence such as the Institute for Asian Consumer Insight, will further entrench Singapore's position as a choice location for companies to better understand Asian consumers and markets. Data analytics is a key capability that enables the discovery of such insights. The growing demand for such expertise plays to Singapore's strength as a choice location for analytics.
11.	Talent initiatives launched in 2011, such as the Singapore Business Leaders Programme, will continue in 2012, anchoring Singapore's position as a Home for Talent in Asia. Further information on these initiatives is listed in Annex D.
(IV)	CONCLUSION
12.	"The 2011 record investment commitment levels achieved by EDB is testament to Singapore’s continued attractiveness to global companies and Asian enterprises," said Mr. Leo Yip, Chairman of EDB.  "In 2012, EDB will enhance Singapore's Global-Asia positioning by championing key initiatives to build deeper horizontal business capabilities, such as consumer insights, data analytics and leadership development. These efforts will strengthen Singapore's partnership with companies seeking to capture growth opportunities in Asia and globally, and firmly establish Singapore as a strategic location in Asia, for global companies to tap into pan-Asian growth opportunities and for Asian enterprises to access global markets."
	Footnote: 1 FAI refers to capital investment in facilities, equipment and machinery. 2 TBS refers to a company's incremental operating expenditure. The major components include wages, depreciation and rental. 3 Traditionally, TBS has been a measure of EDB's performance in attracting services investments, while FAI tracks manufacturing investments. Since 2008, EDB has used both FAI and TBS to measure all investment commitments for a more complete picture of the value generated. To further fine-tune this approach, the computation of TBS has been revised to exclude depreciation.  As capital investments will continue to be accounted for through FAI, TBS less depreciation will be a more accurate indicator of economic activities that are not linked to fixed assets. 2011 is a transition year where both TBS and TBS less depreciation will be reported. From 2012 onwards, only TBS less depreciation will be tracked. 4 VA measures the direct contribution to Singapore's GDP excluding multiplier effects.
	ABOUT THE EDB The Singapore Economic Development Board (EDB) is the lead government agency for planning and executing strategies to enhance Singapore's position as a global business centre.  EDB dreams, designs and delivers solutions that create value for investors and companies in Singapore.  Our mission is to create for Singapore, sustainable economic growth with vibrant business and good job opportunities. EDB's 'Host to Home' strategy articulates how we are positioning Singapore for the future.  It is about extending Singapore's value proposition to businesses not just to help them improve their bottom line, but also to help them grow their top line through establishing and deepening strategic activities in Singapore to drive their business, innovation and talent objectives in Asia and globally.  For more information on EDB, please visit www.sedb.com For media enquiries, please contact: Ms. Karen Lin / Ms. Praveen Randhawa Corporate Communications Tel: (65) 6832-6587 / (65) 6835-6433 Mobile: (65) 9623-0355 / (65) 9236-8939 Email: karen_lin@edb.gov.sg / praveen_randhawa@edb.gov.sg