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China Surpasses US in Singapore Investment
9 Feb
Summary
- Singapore's investment commitments rose 5.2% to S$14.2 billion in 2025.
- China's share of fixed asset commitments exceeded the U.S. for the first time.
- Job creation fell 16.0% despite increased investments due to technological advancements.
Singapore experienced a significant rise in investment commitments in 2025, totaling S$14.2 billion, a 5.2% increase from the previous year. Total business expenditure also grew by 6% to S$8.9 billion. This growth was largely driven by Chinese companies seeking to mitigate risks associated with geopolitical tensions between China and the U.S.
For the first time, China's share of fixed asset commitments reached 20.6%, surpassing the United States' 17.3%. This marks a substantial shift from 2024, when the U.S. accounted for 55.5% and China only 2.5%. China also led business expenditure, making up 50.7% in 2025, a sharp increase from 15% in 2024.
The manufacturing sector was the primary recipient of investment, securing S$12.1 billion, particularly in semiconductor plants driven by AI demand, alongside biomedical and chemical sectors. However, job creation decreased by 16.0% to 15,700 roles in 2025, a trend attributed to technological advancements enabling companies to achieve more with less staff.
