Singapore nets SG$23B in 2025 investments as AI and startups steal the spotlight

Singapore’s Economic Development Board (EDB) secured SG$14.2 billion in fixed asset investment (FAI) and SG$8.9 billion in total business expenditure (TBE) commitments in 2025, anchoring the city-state as a stable hub for global businesses despite a volatile macro environment. Investments are projected to create 15,700 jobs and generate SG$18 billion in value-added over the next five years.

In a statement, EDB said manufacturing dominated the FAI pipeline, contributing SG$12.1 billion of the total. Semiconductor firms expanded facilities and built greenfield plants to meet global demand for AI chips, servers, and related products, creating spillover benefits for precision engineering.

Biomedical and chemicals manufacturers scaled capacity for high-value biopharma, medtech, specialty chemicals, and sustainable materials. Aerospace companies invested in advanced maintenance, repair and overhaul (MRO) capabilities, supporting the region’s recovering air travel sector.

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TBE commitments focused on corporate HQs, professional services, and R&D. Tech firms led HQ investments, reflecting strong demand for digital solutions, followed by consumer and professional services companies. R&D projects included new Centres of Excellence and partnerships with Singapore’s innovation ecosystem, spanning semiconductors, pharmaceuticals, materials, biofuels, and digital solutions.

Job creation spanned services (40%), manufacturing (37%), and R&D/innovation (23%), with most roles in professional, managerial, executive, and technician (PMET) categories. Emerging roles include AI research scientists, robotics engineers, sustainability specialists, data scientists, and product managers. About two-thirds of the new positions are expected to offer monthly gross wages above SG$5,000.

EDB also strengthened the local talent pipeline, advancing digital upskilling, cybersecurity and cloud computing programmes, and nurturing future leaders through initiatives like the Singapore Leaders Network Fellowship and the Global Business Leaders Programme.

Growth areas attracted notable investment. AI saw more than 60 Centres of Excellence established through Digital Industry Singapore, supported by Google, AWS, Microsoft, and Oracle. Precision medicine projects advanced multiomics, robotics, and AI capabilities, with companies joining the National Precision Medicine Pharma Pre-competitive consortium. Investments in green and bio-based sectors included carbon services, biofuels, and specialty chemicals, while next-generation hardware and mobility projects covered quantum hardware, data centre infrastructure, and electrification technologies.

EDB also deepened Singapore’s innovation ecosystem through partnerships with local enterprises, the launch of the Global Founder Programme to attract high-growth startups, and progress in the Johor-Singapore Special Economic Zone, enhancing cross-border collaboration.

Looking ahead, EDB aims to strengthen leadership in growth sectors, pursue emerging technologies, anchor globally ambitious enterprises, and develop Singaporeans with industry-relevant skills, as part of its Economic Strategy Review priorities.

“The 2025 investment commitments show that in an increasingly fragmented world, Singapore remains a trusted hub for global enterprises to strengthen business resilience and create value for the long-term," said Png Cheong Boon, chairman at EDB.

He added, "In a challenging global environment, EDB will double down on securing investments that create quality jobs by strengthening existing growth sectors, building new growth engines and preparing our people for the future." 

Singapore’s investment performance comes amid a wider regional digital boom. According to the November 2025 e-Conomy SEA report by Google, Temasek, and Bain & Company, Southeast Asia’s digital economy is on track to surpass US$300 billion in gross merchandise value (GMV) this year, with revenue growth expected to reach US$135 billion. Double-digit growth persists across sectors including eCommerce, digital financial services, food delivery, transport, and online travel, while video commerce now accounts for roughly 25% of GMV.

Singapore alone is projected to hit US$29 billion in GMV by 2025, powered by strong growth in transport, food, online media, and digital financial services. AI adoption is robust, with 55% of users interacting with AI daily, and the city-state commands US$1.31 billion in private AI funding, the highest in the region.

These trends reinforce Singapore’s position as a hub for digital innovation, AI development, and regional economic resilience, complementing EDB’s focus on high-value manufacturing, R&D, and professional services.

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