Singapore unveils investment strategy<\/p>\n
SINGAPORE (Reuter): Singapore's Economic Development Board
\n(EDB) unveiled yesterday its 1996 strategy to keep the booming
\nisland ahead of the competition and to rocket it into the ranks
\nof the developed economies.<\/p>\n
Among its main initiatives are incentives to encourage
\nmanufacturing firms to set up regional headquarters in Singapore,
\nboost innovation and improve advanced training.<\/p>\n
The EDB, one of several key government agencies charged with
\nmasterminding Singapore's economy, also said it would offer soft
\nloans to encourage Singapore firms to invest in the region.<\/p>\n
EDB chief Philip Yeo, speaking to reporters about the annual
\nreview, said Singapore's economy had a good year in 1995 but
\nneeded to keep ahead of its competitors.<\/p>\n
\"The good news last year was that investments were strong but
\nthe bad news was that there were some major projects that we lost
\nand, surprisingly, we lost not to our neighbors, but to Europe,\"
\nYeo said.<\/p>\n
\"Our competition will come from countries where we are
\npositioning for the same high value-added technology
\ninvestments,\" he added.<\/p>\n
Singapore currently provides preferential tax and other
\nincentives for multi-national corporations (MNCs) which set up
\nregional headquarters on the island.<\/p>\n
But Yeo said many of the companies making goods in Singapore
\ndid not qualify for current incentives directed at those with
\nheadquarters here.<\/p>\n
\"We have today 3,600 manufacturing companies. A lot of them
\nare MNC's,\" Yeo said. \"We think we should give them incentives to
\nexpand in the region.\"<\/p>\n
He said the aim was to increase the number of companies with
\nregional headquarters in Singapore. He said there were now 2,000
\nsuch companies of which 80 he considered \"significant and
\nsubstantial\".<\/p>\n
He said the incentives for firms with a significant presence
\nwould be detailed later in the year, but the aim, he said, was to
\nboost their number to 200 in 2000.<\/p>\n
That, he added, would boost total business spending from S$2.0
\nbillion now to S$3.0 billion in 2000.<\/p>\n
Yeo said the board would set up a S$500 million scheme which
\nwould pay half the cost of developing innovative projects in
\nproducts, processes, applications and services.<\/p>\n
Singapore also needed to focus on people, Yeo said, and the
\nboard would increase its new technology training fund from S$50
\nmillion to S$250 million.<\/p>\n
The fund would cover grants for specialist training, the
\nestablishment of an international business institute and a S$15
\nmillion scholarship program, he said.<\/p>\n
The board would also increase its joint investments with
\nmultinational and local companies in risk-sharing ventures in
\nSingapore and regionally.<\/p>\n
Senior EDB officials said about one-third of EDB's co-
\ninvestment fund of S$1.3 billion had been invested. They said the
\nfund was expected to grow as investment opportunities increased,
\nbut did not give further details.<\/p>\n
EDB has also set a 7.0 percent target for annual growth in the
\nmanufacturing sector, the pillar of the Singapore economy.
\nManufacturing grew by 12 percent in the third quarter of 1995.<\/p>\n
Yeo said that fixed asset commitments in manufacturing reached
\na record S$6.8 billion, a 17 percent increase over the S$5.8
\nbillion in 1994.<\/p>\n
The chemicals and electronics sectors accounted for 42 percent
\nand 39 percent respectively of investment commitments.<\/p>\n
The services sector recorded S$1.1 billion in total business
\nspending in 1995, almost double the S$580 million in 1994.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/singapore-unveils-investment-strategy-1447893297",
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