For this year, the board will focus on preserving and creating jobs by extending assistance to companies with major operations in Singapore, as well as redouble efforts to keep up the pipeline of new investments. -- ST PHOTO: LIN YONG
THE grim outlook for the global economy has prompted the Economic Development Board (EDB) to lower its investment target this year and focus on helping companies keep and create jobs.
It said fixed asset investments in Singapore are expected to fall by more than 40 per cent - from $18 billion last year to $10 billion this year - as the worldwide downturn takes its toll on companies' expansion plans.
Fixed asset investments include companies setting up plants and leasing land or property here.
Already, 10 to 20 per cent of the projects originally planned for this year have been postponed due to the downturn, said EDB chairman Lim Siong Guan. Fewer than 2 per cent have been cancelled outright.
'The present global economic uncertainty is very challenging for attracting new investments," he told reporters at EDB's year-in-review media briefing on Monday.
'However, given Singapore's strong fundamentals in supporting business, we are cautiously optimistic of achieving a respectable level of investment commitments this year.'
Projects that have already been committed will open up about 6,000 job vacancies in the coming months, many requiring science, engineering and technical skills.
An additional 18,000 to 22,000 jobs are forecast to be created from the investments expected this year.
EDB will also spend $100 million on a series of initiatives to help companies recruit and train employees. Called Prep-Up (Preparing for the Upturn), the programme will see EDB co-paying to train engineering and technical staff, as well as funding attachments and internships for fresh graduates.
The agency, which is responsible for attracting foreign investors to Singapore, will also extend other types of help to companies.
It will help companies that have already committed to investments get financing help, if they need it.
Firms that are unable to achieve their incentive milestones this year, such as meeting spending targets, will be given a grace period until March 31 next year.
Companies enjoying Pioneer Status or Development Expansion Initatives that end this year will also enjoy an extension of their incentive periods until March 31 next year, as long as they do not cut back their present levels of operation in Singapore.
