Singapore, one of the richest countries in Asia, is facing a downfall in economy. Yet, investment in this country keeps escalating.
Lately, the economy of Singapore has been consistently falling. Accordingly, the cause is none other than the fierce US-China trade war.
During the first quarter of the year, the country experienced a flat economic performance. Earlier, the country eradicated the forecast of economic growth to nearly zero.
The slowing economic growth has hurt a massive number of companies. To elaborate, most of the companies are SMEs (Small and Medium Enterprises).
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According to an annual survey conducted by Singapore Chinese Chamber of Commerce and Industry (SCCCI), most of the participating SMEs expect a decline in margins this year.
Out of 972 respondents in which 95% of them are SMEs, nearly 40% of them predicted a drop in revenue. Last year, it was only around 26.8%, Business Times reported.
Accordingly, Singapore is always a trade-dependent country. With the trade war between its two biggest trading partners, the US and China, keeps getting intense, the country is currently at loss.
Despite the fall of its economy, investment in Singapore surprisingly keeps rising.
Investment in Singapore at the Minute
Although the economy has not left good impressions since the first quarter of the year, Singapore has attracted US$ 8.1 billion in investment commitments in fixed asset investment (FAI). The investment, additionally, is in manufacturing and services.
Fortunately, this is higher compared to the US$ 5.3 billion worth of investment on the same period last year.
Furthermore, the current investment on the first period of 2019 has fallen within the Economic Development Board’s full-year forecast of US$ 8 up to US$ 10 billion.
Between manufacturing and services, manufacturing scored higher in investment. It raked in US$ 4.6 billion. Additionally, two-third of them is in the field of electronics.
Meanwhile, services acquired US$ 3.5 billion worth of investment in FAI commitments.
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