S'pore retains 10th spot in FDI Confidence Index
Some 30% of respondents were more optimistic about S'pore's economic outlook than a year ago
Singapore
BETTER economic outlook led to investors retaining Singapore at the 10th spot on the 2017 AT Kearney Foreign Direct Investment (FDI) Confidence Index, even if political uncertainties wavered their confidence.
The city-state is in 10th position this year - similar to last year's - survey results released on Tuesday showed. Singapore took the 15th spot in 2015.
"While the global economy may finally seem to be back on course, the risk that geopolitical tensions or domestic policy changes such as rising protectionism will disrupt the global business environment is clearly front of mind for investors this year," noted the report.
The survey was conducted in January 2017 and took in views from 510 respondents, who include C-level executives and regional business leads.
All companies participating in the survey have annual revenues of US$500 million or more.
The resulting index is a forward-looking analysis of how political, economic, and regulatory changes will likely affect FDI inflows into countries in the coming years.
Some 30 per cent of the respondents said they were more optimistic about Singapore's economic outlook, compared with a year ago. Investors from the Asia-Pacific and those in the industry sector showed the most interest in investing in Singapore.
The United States retained its top position this year, while Germany rose two places to take over China's second spot; China is now ranked third.
Even though investors expressed concern about populist rhetoric late last year as the US presidential election drew to a close, the US still retained the top spot this time round.
Citing the bullish outlook for the US as a reason, the report said that "investors may be motivated by protectionist rhetoric, as FDI would give them a local footprint in the world's largest economy".
It also stressed that FDI decisions have a long gestation period and payout time, unlike rapid investment movements in capital markets.
FDI decisions are therefore less susceptible to current developments, and more determined by long-term competitiveness, the report noted.
