Singapore attracted about $73 billion in foreign direct investments from January to June 2018 which is an 18 percent increase as compared to 2017, as per the latest Investment Trends Monitor by the United Nations Conference on Trade and Development (UNCTAD).
These increased levels of FDIs put Singapore on the sixth place on UNCTAD’s top FDI host economies. An elevated foreign interest in Singapore is contradictory to the MNCs global trend to reduce their other global investments.
Global FDIs have reduced to $470 billion in the first half of 2018 which is an almost 41 percent hit. This change can be traced back to the Tax Cut and Reform Bill passed by the US Senate that contributed to sending back the retained earnings abroad.
“The decline in FDI flows is in contrast with trends in cross-border merger and acquisitions (M&As) and announced greenfield investments,” according to UNCTAD.
Even though US FDIs in Singapore reduced by $32 billion, according to UNCTAD it was still able to increase its FDI--very much like the Netherlands.
Investment flow to Southeast Asia rose by 18 percent with Singapore as their leader at $35 billion, followed by Indonesia at $9 billion and Thailand attracting about $7 billion in global investment.
“Uncertainty caused by tensions in global trade relations may also have affected other regions that show negative growth in FDI,” UNCTAD stated in the report.