Singapore attracted S$13.5 billion in fixed asset investment (FAI) commitments in 2024, with the majority of it contributed by the manufacturing sector, according to its Economic Development Board (EDB).

This represents a 6.3% increase from S$12.7 billion in 2023, despite a more challenging global environment marked by macroeconomic uncertainty and heightened global competition for investments.

FAI refers to a company's incremental capital investment in facilities, equipment and machinery.

Meanwhile, commitments in total business expenditure (TBE), which refers to a company's incremental annual operating expenditure in Singapore (excluding depreciation), declined slightly to S$8.4 billion last year from S$8.9 billion in 2023.

EDB said the manufacturing sector contributed S$11.1 billion in FAI commitments, with major investments in semiconductors and biomedical manufacturing, while TBE commitments were driven by investments in HQs and professional services.

Meanwhile, the agency said the global investment environment in 2025 is expected to remain challenging due to geopolitical and macroeconomic uncertainty.

It said protectionist policies stemming from economic nationalism and trade frictions will weigh on companies' investment decisions.

As such, EDB said Singapore will strengthen its local ecosystem and prepare its workforce to seize new job and leadership opportunities to remain a preferred location for high-performing companies.