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Date: For Parliament Sitting on 27 February 2025
Name and Constituency of Member of Parliament
Mr Yip Hon Weng, MP, Yio Chu Kang SMC
Question:
To ask the Prime Minister and Minister for Finance in light of neighbouring countries attracting investments which bolster their currencies (a) what strategies is MAS implementing to enhance Singapore's appeal to investors; and (b) how does the current monetary policy align with these efforts.
Answer by Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, and Chairman of MAS:
1. Global competition for foreign investment has intensified as supply chains reconfigure in response to geoeconomic upheavals and national industrial policies. Singapore, along with our neighbouring countries, has seen shifts in capital flows associated with these developments.
2. Despite a more challenging global economic environment, Singapore remains an attractive destination for foreign investment. In 2024, Singapore recorded foreign direct investment inflows amounting to S$203 billion, up from S$178 billion in 2023. The Singapore Economic Development Board also secured commitments amounting to S$13.5 billion in fixed asset investment in 2024, up from S$12.7 billion the previous year, and S$8.4 billion in total business expenditure. Singapore continues to be a key gateway for global asset managers and investors to tap the region’s growth opportunities. The domestic fund management industry expanded by a robust 13.5% in 2024, up from 3.2% in 2023, on a real value-added basis.
3. Singapore’s attractiveness as a destination for long-term investments reflects a range of factors such as our political stability and rule of law, pro-business environment, global and regional connectivity, and a skilled workforce. MAS’ monetary policy, including its January 2025 decision, contributes as well by securing domestic price stability. Low and stable inflation in Singapore provides local and foreign investors the confidence that the value of their investments will be protected from high and volatile price fluctuations and will grow over time. The purchasing power of the Singapore dollar encourages long-term investment and thus sustainable economic growth.
4. MAS will continue to conduct monetary policy to ensure medium-term price stability, while also leading efforts to grow Singapore as a leading international financial centre.
