Findings for Foreign Equity Investment in Singapore 2011 - Statistics ...

FINDINGS FOREIGN EQUITY INVESTMENT IN SINGAPORE 2011Foreign Equity Investment (FEI)The stock of foreign equity investment (FEI) in Singapore reached $662.2billion as at end 2011. This was about $52.1 billion or 8.5 per cent more than theamount recorded as at end 2010.The bulk of foreign equity investment in Singapore was in the form of directequity investment. As at end 2011, direct equity investment made up 90.3 per cent ofthe total foreign equity investment. The remainder 9.7 per cent was made up byportfolio equity investment.Table 1: Components of Foreign Equity Investment(Stock as at Year-End)2010($ bil)2011($ bil)Change(%)Total 610.1 662.2 8.5Direct Equity Investment 554.0 598.2 8.0Portfolio Equity Investment 56.2 64.0 14.0Foreign Direct Investment (FDI)Foreign direct investment (FDI) comprises direct equity investment and netlending from foreign direct investors. The stock of FDI in Singapore continued toexpand in 2011, growing by 6.7 per cent or $42.2 billion to $672.0 billion as at end ofthe year.The increase in FDI was mainly contributed by higher direct equity investment,which also accounted for the 89.0 per cent of FDI in Singapore. Net lending fromforeign direct investors decreased by 2.6 per cent to $73.8 billion as at end 2011.Table 2: Component of Foreign Direct Investment(Stock as at Year-End)2010($ bil)2011($ bil)Change(%)Total 629.8 672.0 6.7Direct Equity Investment 554.0 598.2 8.0Net Lending from Foreign Direct Investors 75.8 73.8 -2.61

FINDINGS FOREIGN EQUITY INVESTMENT IN SINGAPORE 2011Distribution by IndustryThe financial & insurance services sector attracted the most FDI, followed bythe manufacturing sector and wholesale & retail trade sector. Together, these threesectors accounted for more than four-fifths of FDI in Singapore.Table 3: Distribution of FDI by Industry(Stock as at Year-End)Totalof which:Amount($ bil)2010 2011Share(%)Amount($ bil)Share(%)629.8 100.0 672.0 100.0Financial & Insurance Services 272.6 43.3 289.7 43.1Manufacturing 133.7 21.2 137.3 20.4Wholesale & Retail Trade 108.9 17.3 118.5 17.6Professional, Scientific & Technical,Administrative & Support Services35.8 5.7 39.8 5.9Transport & Storage 36.9 5.9 35.3 5.3Real Estate Activities 20.3 3.2 27.5 4.1Financial & Insurance ServicesAs at end 2011, the stock of FDI in Singapore’s financial & insurance servicessector amounted to $289.7 billion. Within this sector, FDI was predominantly ininvestment holding ($242.9 billion), followed by banks ($14.7 billion) and insuranceservices ($9.4 billion).Table 4: FDI in Financial & Insurance Services Sector(Stock as at Year-End)2010($ bil)2011($ bil)Share in 2011(%)Financial & Insurance Services 272.6 289.7 100.0Investment Holding 228.1 242.9 83.8Banks 14.4 14.7 5.1Insurance Services 8.6 9.4 3.32

FINDINGS FOREIGN EQUITY INVESTMENT IN SINGAPORE 2011Geographical DistributionEurope and Asia remained as the top sources of FDI in Singapore. As at end2011, 37.5 per cent (or $252.0 billion) of total FDI was attributed to European investorswhile about 24.1 per cent (or $161.9 billion) was contributed by Asian investors. Theother major sources of investment were South & Central America & the Caribbean(21.8 per cent or $146.3 billion) and North America (12.1 per cent or $81.6 billion).Chart 1: Source of FDI by Region, 2011NorthAmerica12.1%Africa2.2%Others2.3%Europe37.5%South &Central America& the Caribbean21.8%Asia24.1%EuropeEurope’s FDI stock in Singapore rose by 8.6 per cent to $252.0 billion as at end2011. Major investors from this region included Netherlands ($66.3 billion) and theUnited Kingdom ($55.9 billion). Direct investment from Netherlands waspredominantly in manufacturing and wholesale & retail trade sectors while Britishinvestors favoured the manufacturing and financial & insurance services sectors.4