Singapore forecasts $10-$12 billion investments in 2010

Singapore's Economic Development Board (EDB) said that it expects Fixed Asset Investments (FAI) to the tune of $10 billion to $12 billion during the current year, which is in line with the island-city state's predictions for 2009.

The lead agency responsible for planning and executing the state's economic strategies said that despite the global economic meltdown, companies worldwide brought in $11.8 billion last year, which is at the upper end of the projected $10-$12 billion for the year.

Modest signs of growth in the G-3 economies (the US, Eurozone and Japan) have kept global manufacturers reluctant to expand capacities. However, other investment indicators - total business spending, economic value-added and skilled jobs created, are all expected to rise this year, EDB observed.

It is anticipated that last year's investment commitments would add around $12.5 billion a year to the country's economy and when implemented, would create 21,900 new jobs. About 15,200 or 37 per cent of which is for professionals, managers, engineers, research scientists and other skilled workers. More than half of the new employment created would be in the manufacturing sector, while the balance is in the services sector.

EDB expects that the investments in 2010 would eventually result in $13 billion to $15 billion additional revenue to Singapore's economy each year and create 14,000-17,000 additional skilled jobs.

The board has earmarked last year $100 million to share companies' expenses to train science, engineering and technical personnel during the period of recession.