SINGAPORE: Singapore attracted more investment and spending in 2025, but unfortunately, jobs didn’t really follow.
Singapore’s fixed-asset investment (FAI) commitments rose 5.2% in 2025, mainly thanks to China, which made a big leap in FAI commitments, just after Europe (24.9%) surpassed the United States’ share for the first time.
The US’ share fell to 17.3%, down from 55.5% in 2024, while China’s share jumped to 20.6% from just 2.5%.
Once realised over the next five years, these commitments are expected to contribute S$18 billion in annual value-added, down from S$23.5 billion a year earlier.
Notably, China also made up 50.7% of Singapore’s total business expenditure (TBE), up from just 15% in 2024, according to data from the Economic Development Board (EDB) released on Monday (Feb 9).
However, these commitments only created 15,700 jobs last year, 16% fewer than in 2024, when S$13.5 billion in commitments created 18,700 roles. This is the lowest projected job creation since at least 2006, and the weakest expected value-added since 2021, Bloomberg reported.
EDB said Singapore “made further progress” in attracting investments in artificial intelligence (AI), alongside precision medicine, green and bio-based economy, and next-generation hardware and mobility.
Paradoxically, EDB chairman Png Cheong Boon attributed the lower job creation last year to rapid technological advances, as companies are now able to do more with fewer employees, as reported by AsiaOne.
According to Mr Png, “new investments yield fewer opportunities than before,” and to create the same number of jobs, EDB will have to bring in more investments. /TISG
