Singapur: Invertir a Singapur
Global foreign direct investment (FDI) flows in the first half of 2021 reached an estimated USD 852 billion, showing stronger than expected rebound momentum, with an increase of 78% of the partial-year growth rate on the previous year according to UNCTAD’s Investment Trends Monitor released on October 2021. The global FDI outlook for the full year 2021 has also improved from earlier projections. The current momentum and the growth of international project finance are likely to bring FDI flows back beyond pre-pandemic levels. Nevertheless, the duration of the health crisis and the pace of vaccinations, especially in developing countries, as well as the speed of implementation of infrastructure investment stimulus, remain important factors of uncertainty. Other important risk factors, including labour and supply chain bottlenecks, energy prices and inflationary pressures, will also affect final year results. (UNCTAD, October 2021). Covid’s impact on developing markets and shifting investment from China are major trends that will impact foreign investment in 2022.
According to UNCTAD's World Investment Report 2021, FDI inflows declined by 21% from USD 114 billion in 2019 to USD 91 billion in 2020. In the same year, the stock of FDI was about USD 1.9 trillion. Singapore is the fourth largest recipient of FDI inflows in the world, after the US, China and Hong Kong. Singapore is also the tenth largest investor abroad, FDI outflows stood at USD 32 billion in 2020; in recent years it has sought to diversify its investments beyond its traditional target markets in Asia, namely China, India and Vietnam. The main investors in Singapore are the US, Cayman Islands, British Virgin Islands and the Netherlands. Financial and insurance activities are by far the largest recipient of foreign investment, followed by wholesale and retail trade and manufacturing. In 2020, FDI in the three largest recipient industries (finance, wholesale and retail trade, and manufacturing) contracted, but investment in manufacturing declined the most - by more than 80 per cent.
Singapore has based its economic development on a proactive strategy to attract FDI using its trade openness. Since the first publication of the World Bank's Doing Business ranking in 2003, the country has always been in the lead until 2018, when it was overtaken by New Zealand. The country maintained the second position in the last publication of the report in 2021 for the Year 2020. Being favourable for lending to foreign investors, a simple regulatory system, tax incentives, a high-quality industrial real estate park, political stability and the absence of corruption make Singapore an attractive destination for investment. The country has one of the best regulatory systems of the world for paying taxes (it is fast and cheap) and for enforcing contracts. In 2019, dealing with construction permits was facilitated (in terms of improvement of the risk-based approach to inspections, improvement of the public access to soil information and rationalisation of the process of obtaining a building permit).
The latest United Nation Asia-Pacific Trade and Investment Trends Report provides additional information on FDI in Singapore and Asia-Pacific in 2021 and 2022.
Foreign Direct Investment | 2019 | 2020 | 2021 |
FDI Inward Flow (million USD) | 106,323 | 75,437 | 99,099 |
FDI Stock (million USD) | 1,738,526 | 1,952,038 | 2,007,270 |
Number of Greenfield Investments* | 397 | 304 | 360 |
Value of Greenfield Investments (million USD) | 6,820 | 6,779 | 13,341 |
Source: UNCTAD, Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Country Comparison For the Protection of Investors | Singapore | East Asia & Pacific | United States | Germany |
Index of Transaction Transparency* | 10.0 | 5.9 | 7.0 | 5.0 |
Index of Manager’s Responsibility** | 9.0 | 5.2 | 9.0 | 5.0 |
Index of Shareholders’ Power*** | 9.0 | 6.7 | 9.0 | 5.0 |
Source: Doing Business, Latest available data
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
Singapore has been considered for many years by the World Bank as one of the best countries in the world in terms of the ease of doing business, ranking second in the 2020 Doing Business report. Advantages for FDI include:
Disadvantages for FDI include:
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Actualitzacions: January 2023