FOREIGN DIRECT INVESTMENTS

[Mr Speaker in the Chair]

Mdm Ho Geok Choo asked the Minister for Trade and Industry (a) what proportion of the 13.4% foreign direct investments (FDIs) pulled in by ASEAN has come to Singapore and in what forms; and (b) how will these investments help to create jobs and what are the types in the immediate and the near future.

The Minister for Trade and Industry (BG George Yong-Boon Yeo): Mr Speaker, Sir, I believe Mdm Ho is referring to the figure reported by the ASEAN Secretariat that foreign direct investment into ASEAN has increased by 13.4% to US$13 billion last year. The figure comes from the World Investment Report 2002 published by UNTAD. In that report, Singapore attracted US$8.6 billion or 65% of the total FDI into ASEAN.

These figures, which show international capital flows, do not have breakdown by industry. To see the breakdown by industry and gauge the impact on job creation, it is better for us to look at investment commitments in the data compiled by EDB.

Last year, Singapore attracted fixed asset investment commitments of S$9.2 billion in the manufacturing sector. 50% of the commitments were in the electronics industry. Another 21% were in the chemicals industry. The other commitments were in the petroleum, precision engineering, transport equipment and other industries. In the services sector, S$1.8 billion in total business spending was committed last year. This was largely in projects for the info-communications, media, logistics and transport clusters.

These investment commitments are expected to create 17,000 jobs in manufacturing and 7,500 jobs in services over the next two to three years, when the projects are fully realised. Professionals and skilled workers account for about 70% of the total jobs created.

Our target this year is to attract investment commitments of S$9.2 billion in manufacturing, and total business spending of S$2 billion in services. Most of these investments will continue to be in the electronics and chemicals clusters. If achieved, this would further create more than 20,000 jobs in the coming three to four years.