Singapore attracted increased investment in 2025 despite uncertainties in geopolitics and the economy. According to data released on Monday (Feb 9) by Singapore's Economic Development Board, China played a significant role in the total commitments and business expenditures.

The fixed asset investment commitments in Singapore grew by 5.2% to $14.2 billion, compared to $13.5 billion the previous year. Total business expenditure also saw a 6% increase to $8.9 billion, as reported by the agency.

An increasing number of Chinese companies are choosing Singapore as their base to mitigate risks arising from geopolitical tensions between China and the United States.

In 2025, China's share of fixed asset commitments stood at 20.6%, surpassing the United States for the first time, as the US share dropped to 17.3%. In contrast, in 2024, China only represented 2.5% of the commitments, while the United States accounted for 55.5%.

EDB chairman Png Cheong Boon mentioned that many Chinese firms are expanding globally in response to slower domestic growth.

China's portion of business expenditure in Singapore also rose significantly to 50.7% in 2025, up from 15% in 2024.

The manufacturing sector continued to lead, contributing $12.1 billion in fixed asset commitments. This was mainly driven by new semiconductor manufacturing plants meeting the high demand for AI-related technologies, along with growth in the biomedical, chemicals, and aerospace industries.

Despite these positive trends, the number of jobs created decreased by 16.0% to 15,700 in 2025 from 18,700 in 2024, attributed to rapid technological advancements allowing companies to achieve more with fewer employees.

EDB will need to attract more investments to create the same number of jobs, engaging with a diverse range of companies from various sectors and regions of different sizes and growth stages, according to Png.

The release of the EDB data precedes Singapore's upcoming budget presentation by Prime Minister and Finance Minister Lawrence Wong on Feb 12.

Deputy Prime Minister Gan Kim Yong emphasized in a media interview in January that Singapore cannot rely solely on economic growth to generate jobs, given the advancements in automation, AI, and productivity, resulting in higher value-adding industries and reduced labor requirements.