Singapore's 2009 overseas investment up to $736.5bn

The country’s direct investment contributed 48.8% to total investment abroad while 28.3% and 22.9% were attributed to portfolio investment and other foreign assets.

Total investment abroad made by Singapore’s corporate sector grew from $669.0 billion as at end 2008 to $736.5 billion as at end 2009. 

There are three components of Singapore’s investment abroad - direct investment, portfolio investment and other foreign assets. Direct investment contributed 48.8 per cent or $359.3 billion to total investment abroad. About 28.3 per cent and 22.9 per cent of total overseas investment were attributed to portfolio investment and other foreign assets respectively, according to a Ministry of Trade & Industry Department of Statistics report. 

Direct Investment
Singapore’s stock of direct investment abroad expanded 13.2 per cent to $359.3 billion as at end 2009. The bulk of direct investment was in the form of direct equity investment (83.6 per cent), with net lending to overseas affiliates constituting the remaining 16.4 per cent of direct investment.

Portfolio Investment
Total stock of portfolio investment rose from $173.7 billion as at end 2008 to $208.3 billion as at end 2009. About 65.7 per cent of portfolio investment were quoted and unquoted shares while the remaining 34.3 per cent were in the form of debt securities.

Other Foreign Assets
Investment in other foreign assets amounted to $168.9 billion as at end of 2009, compared to $177.9 billion a year earlier. Other foreign assets comprise mainly money deposits held abroad (44.0 per cent) and loans granted to nonaffiliates (41.0 per cent).

Distribution of Direct Investment
 

Activity Abroad
Singapore’s overseas direct investment were concentrated in financial & insurance services (including investment holding) (49.5 per cent or $177.9 billion) and manufacturing (23.4 per cent or $84.1 billion) sectors. Real estate activities (5.6 per cent), wholesale & retail trade (5.5 per cent), and information & communications (4.7 per cent) were other sectors of interest to Singapore investors.

Geographical Distribution
Asia remained the top destination for Singapore’s direct investment abroad as at end 2009, attracting 52.8 per cent (or $189.8 billion) of total direct investment abroad. Europe (16.5 per cent) and South and Central America and the Caribbean (15.1 per cent) were also popular with Singapore investors.

Asia
Singapore’s stock of direct investment in Asia rose 9.7 per cent to reach $189.8 billion as at end 2009. China ($58.1 billion), Malaysia ($28.7 billion) and Indonesia ($26.3 billion) were major Asian hosts to Singapore investors. There were also significant direct investment from Singapore in Hong Kong ($21.5 billion) and Thailand ($19.5 billion).

Singapore’s direct investment in China grew from $53.9 billion as at end 2008 to $58.1 billion as at end 2009. About 55.6 per cent of the country’s investment in China were in manufacturing sector, while about 18.4 per cent were in real estate sector.

Singapore investors in Malaysia were predominantly attracted to financial services (54.5 per cent) and manufacturing (30.1 per cent) sectors. Manufacturing (37.3 per cent) and financial services (20.9 per cent) sectors accounted for the bulk of Singapore’s direct investment in Indonesia.

Europe
Singapore’s stock of direct investment in Europe stood at $59.2 billion as at end 2009, compared to $45.5 billion recorded a year earlier. United Kingdom ($41.9 billion), Switzerland ($4.8 billion) and Netherlands ($4.6 billion) attracted the bulk of Singapore’s investment in Europe. The country’s direct investment in United Kingdom were predominantly in financial services sector.

Other regions
Australia hosted $23.0 billion of Singapore’s direct investment as at end 2009, compared to $18.1 billion a year earlier. Singapore’s investment in Australia were primarily in financial services ($11.5 billion) and information & communications ($5.7 billion) sectors. 

Singapore’s direct investment in United States amounted to $12.0 billion as at end 2009. Manufacturing ($6.8 billion) and financial services ($3.0 billion) sectors in United States were popular with Singapore direct investors.