Singapore is a robust Asian investment hub. Discover the top economy-driven investments in Singapore today that will improve the excellent economic condition.
Singapore, located in South Asia, has developed into a leading economy in Asia and holds a strong position in the global economy. This is all thanks to the government’s macro and microeconomic investments. Today, Singapore is an investment destination attracting investors worldwide and across many industries, from real estate to IT, finance, and pharmaceuticals. Whether you’re looking to invest or trade via platforms such as TradingView, Singapore’s economic environment is suitable. Singapore also looks towards the future, as evidenced by economy-driven investments. In this article, you’ll learn about six top sectors focused on improving the economy.
Educational investments
Singapore is a leading educational hub in Asia, thanks to the policies and investments made to improve the educational sector. Education is essential for improving the economy, as most countries experience a better economy as their average education increases. Singapore has an excellent educational system and structure; in 2021, Singapore spent over S$ 10.7 billion on education, a sizable investment considering that there are less than two million students, from primary school to higher institutions. This has created a culture of furthering education, but it does not end there.
Educational scholarships are quite the thing in educational investments today. Singapore annually attracts hundreds of top talents across various educational fields through scholarships. These academics go on to train future talent for the Singaporean workforce, lead research, and develop technologies in business, science, health, medicine, manufacturing, and just about every sector. This is particularly evident in the manufacturing industry, which generates 20–25% of the country’s GDP.
Transportation
Transportation is another crucial component of a country’s economy, generating revenue and facilitating business. Singapore has an excellent transportation system, consisting of intra- and inter-city shuttles, cabs, airports, and water channels. The transport sector contributed S$ 30.7 billion in 2021. Singapore is working on expanding its rail network to 360 km by 2030, a move the Land Transport Authority says will connect more people to within 10 minutes of rail lines. The LTA is also deploying innovative technologies for payment and transportation to help improve the commuter experience. This investment will pay off for the Singaporean economy, as the transportation GDP may increase. As the cost of shipping goods has increased significantly since 2020, Singapore’s shipping industry is expected to contribute more to the GDP in 2023.
Banking and financial services
Singapore’s financial services industry boasts a world-class system that’s fast, responsive, and designed to improve financial transactions. This is especially important for the economy, as Singapore operates an internet-based financial services system. Banks and other financial institutions, companies, and private investors perform transactions worth massive figures daily. Currency traders, for example, rely on the internet and fintech services to trade and process their profits. Singapore is a financial hub in Asia, thanks to investments that deliver high-speed internet and connectivity across the country, with an internet penetration rate of just over 90%. This is partly why there’s a growing number of currency traders in Singapore. There’s also an increased use of Robo-advisors in trading in Singapore, thanks to the excellent internet connection.
Real estate
The real estate sector in Singapore is a natural driver of economic growth in the country, and in Asia generally. Singapore’s real estate covers residential buildings and commercial real estate properties. Many multinational companies move to Singapore to benefit from the friendly business environment and laws. This, in turn, drives real estate investments in Singapore, as most of Singapore’s successful entrepreneurs have real estate businesses.
The real estate industry is closely linked with tourism, another of Singapore’s revenue sources. Singapore’s tourism attracts visitors worldwide, including the so-called digital nomads who travel around working or doing business remotely.
Energy
Singapore generates 95% of its power from natural gas, but there are ongoing investments to harness renewable energy. In 2021, Singapore owned the world’s largest floating solar farm; private companies are also investing in clean energy to drive the economy. Government-private partnerships are progressing in research, development, and maintenance of renewable energy facilities for solar energy, hydrogen, and Carbon Capture, Utilization, and Storage (CCUS) technologies. Today, foreign energy companies are investing in Singapore’s energy sector to harness its potential.
AI and automation technology
Artificial intelligence impacts different areas of the economy, albeit at an increasing pace. The services industry is already benefiting from using AI in customer service, but the manufacturing industry also uses AI-powered automation and robotics to improve efficiency and revenue.
In Singapore, research and development in AI and AI-powered products is gaining ground, with positive results. With advanced AI tools, current investments in AI companies could pay off very soon.
Impact on Singapore’s economy
How do these investments impact the economy?
The Singaporean Dollar (SGD, S$) is the 13th-most traded currency in the global currency market, exchanging for about SGD 1.35 per USD. The SGD accounts for about 1.8% of the 5 trillion USD traded daily on the forex market.
A more robust economy means that the value of the SGD could increase, making it more powerful than it is now. That’s why the Singaporean government and private sector invest in the economy to drive growth. Despite its relatively small population, Singapore is thriving economically, and remains a destination country for foreign investors and local entrepreneurs.
Final thoughts
You, too, can invest in Singapore by trading the SGD on the global forex market. Whether you’re a resident of Singapore or visiting tourist locations, you can trade right from the comfort of your own home.
