German companies say they are still keen on investing in Singapore despite the manpower crunch and rising labour costs.
Mr Klaus Borig, president of the Singapore-German Chamber of Industry and Commerce, said German industry is characterised by high productivity and German companies "do not come to Singapore for cheap manpower".
He added that more small and medium-sized German enterprises across a range of industries are now expressing interest in moving into the Asean region, following in the footsteps of their multinational counterparts.
However, the high price of energy has squeezed the ones already operating here, he said.
Mr Borig was speaking at the unveiling of the Asean Business Climate Survey, conducted by German chambers in five Asean countries including Singapore.
The survey showed that German companies are cautiously upbeat about their operations in the region.