SINGAPORE'S INVESTMENT IN ASEAN COUNTRIES

SINGAPORE'S INVESTMENT IN ASEAN COUNTRIES:

(Update): 5.

Mdm Ho Geok Choo asked the Minister for Trade and Industry (a) if he will provide an update on Singapore's investments in the respective countries of ASEAN; and (b) whether Singapore continues to draw investments from ASEAN countries.

The Minister for Trade and Industry (Mr Lim Hng Kiang): Mr Speaker, Sir, ASEAN remains the top investment destination for Singapore companies. According to preliminary data from the Department of Statistics, the stock of direct investment from Singapore companies into ASEAN stood at S$50 billion as at end 2006, accounting for nearly a quarter of Singapore's total direct

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investment stock abroad. Singapore companies' investment in Malaysia and Indonesia, our two top investment destinations within ASEAN, amounted to S$16 billion and S$15 billion respectively.

Singapore also continues to welcome investments from ASEAN countries. Preliminary data from the Department of Statistics shows that the stock of foreign direct investment (FDI) from other ASEAN countries into Singapore was more than S$10 billion as at end 2006, with the top investors being Malaysia, Thailand and Indonesia. Between 2004 and 2006, FDI inflow from other ASEAN countries into Singapore doubled from S$0.9 billion to S$1.8 billion. According to data published by the ASEAN Secretariat, FDI inflow from other ASEAN countries into Singapore accounted for about one-fifth of total intra-ASEAN investment inflow in 2006.

We will continue to encourage companies to invest in ASEAN and draw on the unique strengths of each ASEAN nation. Increased intra-ASEAN investment flows are important, as they would result in tighter regional economic integration that will enhance the overall competitiveness of ASEAN.

Mdm Ho Geok Choo: I would like to ask the Minister how diversified is our investment portfolio in the ASEAN countries and whether the sub-prime crisis has, to a certain extent, affected our investment decisions in ASEAN.

Mr Lim Hng Kiang: Within the ASEAN countries, our key investment countries are Malaysia, Indonesia, Thailand, Philippines and Vietnam, as can be expected. The sub-prime crisis has not affected these flows. As I have mentioned, even though our statistics are collected from the balance of payment data and tend to be at least one to one-

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and-a-half years' lag, anecdotal feedback from our companies shows that interest within ASEAN countries is still very strong.