Singapore breaks into world’s ten top countries for FDI
A.T. Kearney has published their 2016 Foreign Direct Investment Confidence Index® most recently. In spite of investors’ shifting focus towards developed economics in North America and Europe, Singapore has recorded a 5-spot improvement over last year to rank No. 10 globally, overtaking economies like Switzerland and Sweden.
Being labelled consistently as one of the easiest places to do business in the world, the city-state has seen a major magnet to global companies, which elect to setup their regional headquarters here. Investments come mostly from the Asia Pacific region, but also in particular from the IT industry as the government and the private sector has shown persistent commitment to growing technology’s role in the economy, with the “Smart Nation” initiative.
We have highlighted before why Singapore is an ideal place to conduct business in Asia and it was the very same reasons why the city-state managed to leap the ranks in recent years. With FDI stock levels equating to 302.9% of GDP, reaching $65 billion as recent as in 2015, the country is very friendly to foreign investments. Foreign businesses receive equal treatment with local firms under the local law despite some sectors such as telecom, broadcasting, legal services and domestic media that remain closed to foreigners.
The A.T. Kearney index ranks among other considerations a country’s regulatory transparency, market size, corruption status and cost of labour when gauging its attractiveness to investments.
For further reading, please refer to A.T. Kearney’s original report:
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