Singapore - Singapore is planning to attract as much as S$19 billion in fixed asset investments this year.
This follows the record S$17.2 billion invested in 2007, which was almost double the official estimates.
All this money is expected to bring along with it as many as 19,000 skilled jobs in areas such as engineering.
Economists say the targets by the Economic Development Board (EDB) are entirely possible, even in this mellowing global economic climate.
In 2007, companies such as Exxon-Mobil, Neste Oil, Novartis announced investments to build capital intensive projects in Singapore. Furthermore, companies such as Rolls Royce, TNT and Sony announced investment plans in knowledge-intensive projects.
EDB`s managing director, Ko Kheng Hwa, said: "For 2007, we`ve already got a record year. This is due to the fact that over the past years, we have restructured the economy and built new capabilities.
"Together with the upward trend in some of the key industries that we are targeting, we have been able to build up a very strong pipeline of investments."
Apart from traditional sources of growth in manufacturing and services, the EDB also made headway in industries like clean energy and water in 2007. These helped create a record 28,600 jobs, of which 65 per cent were skilled ones.
Economists say this year is not going to be far behind.
"The EDB is also pushing for development in some new areas, for example, water, solar energy. So, I think there are new engines of growth, which is probably why they are looking at higher fixed asset investments this year despite the softening in the global environment," said UOB economist Ho Woei Chen.
Song Seng Wun, CEO & regional economist, CIMB-GK Research, said: "We`ll find that while the traditional sectors in electronics and chemicals continue to be attracting headlines, there will be a lot more headway in these newer industries and industries for the future.
"Given that we continue to be looking at industries which are going to be leading the way into the future, we really have to look outside Singapore for their expertise. In terms of total job creation, we`ll find that given the relative high skills involved in many of these industries, many of them will be from outside Singapore."
But while highly skilled jobs in new industries will likely go to foreigners, economists say Singaporeans will still find that there are enough jobs available.
Mr Song said: "In services, there will be lots of jobs for Singaporeans, many jobs for foreigners too.
"Over the medium term, if all those investments we target materialize, it looks like there will be plenty of job creation. Certainly, in Singapore, anyone who wants a job will be able to get a job."
The influx of foreign talent is expected to put further pressure on property prices in Singapore.
Mr Song said: "This is a short-term problem which the government is aware of, something they have to be aware to make sure the speculative elements are kept to a minimum or else Singapore may find that come 2009, investment may drop off because investors worry lots more about the cost of doing business in Singapore, not only in industrial space but also for their workers."
Rising costs may be a concern, but the EDB says they are often outweighed by the benefits of investing in Singapore. Other areas the EDB plans to explore opportunities in include urban solutions, and health, wellness and ageing.
The EDB also projects total business spending to hit as high as S$8 billion in 2008, up from S$7.7 billion last year.
Source: www.channelnewsasia.com (22 Januari 2008)
