S'pore service capital up

S'pore service capital up

SINGAPORE (AFP): Singapore's drive to become a regional business hub is expected to result in business services investment rising 23 percent this year, officials of the Economic Development Board (EDB) said yesterday.

The officials said foreign and local companies had already committed S$580 million (US$386.7 million) to setting up offices in Singapore to cover the region.

Part of the money will go to building up support services like transportation, warehousing and telecommunications.

"GDP growth for Singapore has been targeted at six to eight percent for the next few years. The services sector should match if not exceed this growth," said Daisy Goh, the EDB deputy director of services.

An EDB statement said that overall, the commitments made to building up Singapore's business services should "generate more than S$1 billion to gross value added to the economy."

U.S. companies will contribute 37 percent of the investment, European firms 32 percent and companies from the Asia Pacific 10 percent. Local companies are expected to contribute the remaining 21 percent.