Singapore’s Fixed Asset Investments Hit Record High

Despite the unprecedented Covid-19 pandemic derailing businesses across various sectors, Singapore’s fixed asset investments in 2020 reached 12-year high of S$17.2 billion, far exceeding 2019’s S$15.2 billion and the Economic Development Board’s medium to long term target of S$10 billion. In discussion with your economics tutor Singapore in economics tuition Singapore, explain the benefits of higher fixed asset investments.

Tens Of Thousands Of New Jobs To Be Created

When fully utilised, the S$17.2 billion fixed asset investments are expected to bring about close to 20,000 new job opportunities in the next five years, with 45 per cent of them in production and 25 per cent in digital roles. The United States of America has overtaken Europe as Singapore’s largest investor region, with over 53 per cent of Singapore’s fixed asset investments in 2020 coming from the US. Europe dropped one notch to the second place in 2020. About 17 per cent of Singapore’s fixed asset investment came from Europe, a significant decline from the 47 per cent in 2019. You may consult your economics tutor Singapore in your economics tuition Singapore class about the possible reasons leading to the significant decline in fixed asset investments from Europe.

Electronics, chemicals, as well as research and development sectors are among the top three sectors drawing the largest capital investments, probably bolstered by a surge in demand amidst the Covid-19 pandemic. With guidance from your economics tutor Singapore in economics tuition Singapore, discuss the various implications of Covid-19 pandemic on the Singapore economy. The record fixed asset investments in 2020 is a vote of confidence from investors locally and abroad, in Singapore’s fundamentals, including among others, stable political environment, strategic geographic location and superb connectivity, as well as strong regulatory system and intellectual property regime. In consultation with your economics tutor Singapore in your economics tuition Singapore class, explain Singapore’s competitive advantages against other Southeast Asian countries.

The Road To Recovery

Singapore government has done a good job in attracting higher fixed asset investments from all over the world to generate more new job opportunities while keeping coronavirus at bay. For the full year of 2020, Singapore economy registered a decline of 5.8 per cent in GDP, with the quarterly year-on-year decline narrowing down from 13.2 per cent in the second quarter to 3.8 per cent in the last quarter of 2020. You may approach your economics tutor Singapore in economics tuition Singapore for a comparison of Singapore’s economic performance against other Southeast Asian countries in 2020.

Economists are cautiously optimistic about Singapore’s economic recovery. Based on a survey among 23 economists and analysts, Singapore’s GDP is expected to grow by 5.5 per cent in 2021, ending the country’s worst recession in decades. The projection by the Ministry of Trade and Industry is between 4 and 6 per cent. To learn why a V-shape recovery is likely to happen, you may sign up for economics tuition Singapore with a reputable economics tutor Singapore. Mr Edmund Quek is the best economics tutor Singapore. His economics tuition Singapore centre, Economics Cafe Learning Centre is conveniently located within five minutes’ walk from the Bishan MRT Station, near to elite schools such as Raffles Institution and Hwa Chong Institution.

However, Singapore, being an export driven economy, is extremely vulnerable to external risks such economic fallout and political unrest. Exports account for 150 per cent of Singapore’s annual GDP, about S$500 billion at pre-pandemic levels in 2019. Singapore’s total exports which comprise both domestic exports and re-exports are much larger than its total GDP. Therefore, it is inevitable that Singapore’s economic recovery will be impacted by the global economic recovery, particularly the performance of its key trading partners such as China, Hong Kong, Malaysia and the United States of America.

Linda Geng

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