Fixed asset investment commitments in Singapore rise to $3.6 billion in Q2: MTI

The manufacturing sector garnered the largest amount of FAI commitments.
The manufacturing sector garnered the largest amount of FAI commitments.PHOTO: ST FILE

SINGAPORE - Fixed asset investment (FAI) commitments in Singapore rose to $3.6 billion in the April-June period, up 28.6 per cent from $2.8 billion in the first quarter, according to the Ministry of Trade and Industry’s Economic Survey released on Wednesday (Aug 11).

FAI – comprising the amount invested in building, land, machinery and equipment, as well as infrastructure related to a project – was led by the manufacturing sector, which attracted $2.5 billion in commitments.

However, commitments in total business expenditure (TBE) - referring to a company's incremental annual operating expenditure, excluding depreciation - dropped 26.3 per cent to $1.4 billion, from $1.9 billion in the first quarter.

Within the manufacturing sector, the electronics cluster, with $1.3 billion, and biomedical manufacturing cluster, with $603 million, garnered the largest amount of FAI commitments.

Within the services sector, the research and development cluster attracted the most FAI commitments, at $594 million.

Investors from the United States contributed the most to total FAI, at $2.1 billion, or 59 per cent, of all commitments in the period.

For TBE, the service clusters attracted the highest amount of commitments at $823 million, led by headquarters and professional services, and research and development clusters.

Among the manufacturing clusters, the electronics cluster, with $178 million, and biomedical manufacturing cluster, with $142 million, garnered the largest amount of TBE commitments.

Again, investors from the US were the largest source of TBE commitments, at $494 million, or 36 per cent, of the pie.