THE Economic Development Board (EDB) met investment forecasts last year, and expects 2009 to still bring in more than $10 billion in fixed asset investments (FAI).

RELATED LINKS  EDB SHARPENS FOCUS ON PRESERVING AND CREATING JOBS

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.

On the investment outlook for 2009, EDB said in its annual review on Monday: 'Investment commitments in 2007 and 2008 have been very high due to lumpy investments in sectors such as chemicals and electronics.'

'Investments in 2009 would therefore be expected to be lower than in 2008 and 2007, even if there was no economic downturn.'

'Nonetheless, EDB expects total FAI in 2009 to exceed S$10 billion for the third successive year, after taking into account projects that have been postponed or are likely to be delayed. This is a creditable level of investment when compared with the years prior to 2007.'

EDB said it attained S$18 billion in FAI and S$7.8 billion in total business spending (TBS) last year from committed projects in both the manufacturing and services sectors. Some 16,400 skilled jobs will be created when these projects are fully implemented.

'The investment forecasts for 2008 were met,' said EDB in a statement, adding that aside from the number of skilled jobs, commitments in FAI, TBS and value added (VA) also exceeded 2007 investment levels.

But it said bearish sentiments in the fourth quarter has affected various companies' ability to invest.

'Some projects have had to be delayed and could potentially be cancelled because of the sharp drop in demand, or difficulty in securing financing,' said the EDB.

'While this will not have a major impact on 2009 investment numbers, it will affect investment commitments in 2010 if global economic sentiments do not improve over the coming year.'

Amid the gloom, EDB said the downturn also presents unique opportunities for companies, to look to Singapore to preposition themselves for the upturn.

Going forward, EDB said it will continue to attract investments that create new jobs and, at the same time, help companies ride out the economic storm so that as many jobs as possible can be preserved.

'About 6,000 jobs from previously committed projects will open up in the coming months. Many of these jobs will require science, engineering and technical skills,' it said.

'EDB will actively monitor job openings from our client companies and work with the Ministry of Manpower (MOM) and the Workforce Development Agency (WDA) to facilitate job placements.'

It will help companies cope with the economic slowdown conditions so that they can keep their people and train them for the upturn.

For example, it will introduce a $100 million programme, PREP-UP (PREParing for the UPturn), which is a collection of initiatives where EDB co-shares manpower, training and related costs with companies, with special emphasis on enhancing the knowledge and skills of their engineers and technical staff.

PREPUP will also fund on-the-job training opportunities for fresh graduates. EDB will also consider extending various help schemes to individual companies according to their particular needs.

For companies facing difficulties in achieving their incentive milestones that are due this year, EDB is prepared to provide such companies with a grace period until March 31 2010.

Similarly, for companies with Pioneer Status, or Development Expansion Incentives with incentive periods ending this year, EDB is prepared to grant these companies an extension of the incentive period until next March, if there is no cutback in their present levels of operation in Singapore.

For companies which have settled their investment plans with EDB but are finding it difficult to get financing, EDB will help out in the financing of their capital expenditure, provided the projects remain good and viable. This will allow the planned investments to proceed at this time, and not be held back by the credit crunch.