Mr Lim Hng Kiang's reply to Parliament Questions on Singapore’s investments in ASEAN

Question No 529 of Notice Paper No 36 of 2008

Name and Constituency of Member of Parliament
Mdm Ho Geok Choo (Member for West Coast GRC)

Question
To ask the Minister for Trade and Industry (a) if he will provide an update on Singapore’s investments in the respective countries of ASEAN; and (b) whether Singapore continues to draw investments from ASEAN countries.

Answer
Mr Speaker Sir, ASEAN remains the top investment destination for Singapore companies.According to preliminary data from the Department of Statistics, the stock of direct investment from Singapore companies into ASEAN stood at S$50 billion as at end 2006, accounting for nearly a quarter of Singapore's total direct investment stock abroad.Singapore companies' investment in Malaysia and Indonesia, our top investment destinations within ASEAN, amounted to S$16 billion and S$15 billion respectively.

Singapore also continues to welcome investments from ASEAN countries. Preliminary data from the Department of Statistics shows that the stock of foreign direct investment (FDI) from other ASEAN countries into Singapore was more than S$10 billion as at end 2006, with the top investors being Malaysia, Thailand and Indonesia. Between 2004 and 2006, FDI inflow from other ASEAN countries into Singapore doubled from S$0.9 billion to S$1.8 billion. According to data published by the ASEAN Secretariat, FDI inflow from other ASEAN countries into Singapore accounted for about a fifth of total intra-ASEAN investment inflow in 2006.

We will continue to encourage companies to invest in ASEAN and draw on the unique strengths of each ASEAN nation.Increased intra-ASEAN investment flows are important, as they would result in tighter regional economic integration that will enhance the overall competitiveness of ASEAN.