S'pore investors to stay

S'pore investors to stay

SINGAPORE (DPA): Officials on Indonesia's Batam Island are assuring foreigners they will safeguard their investments despite the political and social instability in the country, a report said on Monday.

Singapore's investments in Batam so far this year have reached US$55 million, putting the city-state in the top spot. Other big investors are Japan, South Korea and Hong Kong, in that order.

"The increase by Singapore was higher than expected as it happened against a backdrop of social and political unrest," Batam Industrial Development Authority chairman Ismeth Abdullah was quoted as saying by The Straits Times.

Singapore's investments for last year reached $40 million.

The industrial island 30 km south Singapore was the site of bloody ethnic clashes during July and August that left 21 dead.

Thousands of refugees returned to their home provinces after fighting between immigrants from North Sumatra and eastern Indonesia resulted in riots and widespread damage.

The total accumulated investment in Batam is $1.8 billion with 370 foreign manufacturing plants, of which 70 percent are Singaporean. There are also 85 companies from Europe, the United States, Japan, South Korea and Southeast Asia.

Ismeth said Batam is expecting up to 90 projects totaling $120 million from foreign companies next year.