Investment Abroad by Singaporeans

Foreign investment provides much economic gain to the countries which receive such investment. Singapore is one of the countries which receives a great deal of foreign investment. This large amount of foreign investment stems from the fact that investing in Singapore is often deemed to be a suitable and stable course of action to be taken due to the positive business environment which exists in the country. The government of Singapore often encourages investors from Singapore to return the favor by likewise investing in other countries, especially those in the Asia-Pacific region which have made past investments in Singapore.


Why the Singaporean Government Encourages Investment in Other Countries

There are various reasons why the government of Singapore encourages the country’s citizens to make investments in other countries. One such reason is to guard against the effects of a recession, should one ever happen to occur. During times of recession, the economic growth rate in a particular country slows dramatically; indeed, in especially severe recessions, the economic growth rate might even turn out to be negative. In order to manage the low or even negative growth rate which takes place during a recession, the Singapore government promotes investing in other countries, especially in other countries of the Asia-Pacific regions which are not likely to experience a recession. Through investment in countries experiencing much economic growth, the economic growth of such countries could be brought into Singapore, thus mitigating the effects of a recession. their economic growth can be “imported” into Singapore.

Another reason why the Singaporean government encourages investors from Singapore to invest in other countries is due to the fact that doing so will enhance the relationship between Singapore and any other country involved in the investment. When Singapore and another country make mutual investments, it strengthens economic ties between these two countries. Through this strengthening of economic ties, the overall relationship between the countries involved will become stronger and will therefore allow Singapore to have an additional ally whenever its government chooses to embark on any important international venture.

Want to Start business in Singapore
Want to Start business in Singapore

How Singaporean Investors Invest in Other Countries

Most Singaporeans who invest in other countries place most of their focus on foreign direct investment (FDI) within the Asia-Pacific region. The amount of FDI money which has been invested by Singaporean investors in such countries has been growing at a tremendous rate.

According to the latest statistics which were taken for 2017, six of the 10 leading independent nations which received FDI from Singapore were in the Asia-Pacific region. The top 10 receivers of FDI originating from Singapore in 2017 were China (including Hong Kong), the United Kingdom (including British Overseas Territories), Indonesia, Australia, India, Malaysia, the United States, Luxembourg, the Netherlands, and Thailand. The total amount of FDI from Singapore to these 10 countries totaled almost S$700 billion.

In general, the total amount of money invested as FDI by Singaporeans to other countries has seen an enormous amount of growth. In 2006, Singaporean investors invested just over S$311 billion in other countries. In 2017, this figure had risen to almost S$850 billion, which thus showed that the total amount of FDI invested over this 11-year span increased by over 270%. Thus, there is ample evidence that the Singaporean government’s push for its citizens to increase their level of investment in other countries has yielded significant results.

Although not every investor in Singapore has chosen to invest in foreign countries, all investors of Singapore are highly encouraged to do so because of the many benefits associated with making investments in foreign countries. Doing so provides benefits to the investor, the government and economy of Singapore, and even the government and economy of the country which receives the money from the investment which has been made.