Geopolitical tensions and escalating trade frictions are forcing investors to reshape their priorities, yet Singapore continues to stand out as the most trusted foreign direct investment (FDI) destination in the Asia-Pacific region due to its multiple advantages.
According to Bloomberg's latest "Global Foreign Direct Investment Outlook" survey, Singapore received a net investment confidence of 62% from regional investors, ranking first in the Asia-Pacific.
The main factors influencing foreign investment decisions include political stability (62%), sound legal frameworks (54%), and actual tax reductions (53%).
Bloomberg noted: "Investors view Singapore as highly stable and economically resilient, providing a much-needed safe haven of stability amidst increasing volatility."
The survey covered 2,600 senior business decision-makers across 31 major markets worldwide.
The results show that although investors remain wary of inflation and supply chain disruptions, their top concern has shifted to geopolitical risks. 38% of respondents identified US-China relations as a key risk, up 6% from 2023; additionally, 37% expressed concern over tariffs.
Nevertheless, the willingness for international expansion remains strong. Globally, 76% of companies plan to continue with cross-border investments, only 1% less than in 2023.
The key factors driving companies to choose Singapore mainly include strong technology and innovation capabilities (34%), access to new markets (34%), and a high-skilled talent pool (26%).
Looking ahead 1 to 3 years, among investors focusing on the Singapore market, 54% believe that applying artificial intelligence (AI) to enhance productivity is the greatest business opportunity; another 45% favor supply chain diversification, while 41% are optimistic about digital transformation.