Latest news with #SingaporeEconomy
CNA
2 days ago
- Business
- CNA
Dutch equipment-maker VDL Group to hire 400 new staff in Singapore over five years
VDL Enabling Technologies Group — a Dutch firm that supplies key equipment parts to major semiconductor players — plans to hire 400 new staff in areas such as advanced manufacturing and supply chain management at its expanded Singapore facility over the next five years. It will also pump in S$100 million to grow its Singapore operations. With more space in its new building, it can produce 30% more, and aims to reach S$1 billion in revenue in the next few years. According to the Economic Development Board, Singapore's semiconductor sector makes up about 7% of its GDP and employs some 35,000 people. Nasyrah Rohim reports.
Reuters
28-05-2025
- Business
- Reuters
Wages in Singapore grew 3.2% in 2024, fewer firms planning increase in 2025
SINGAPORE, May 28 (Reuters) - Real wages in Singapore grew 3.2% in 2024 compared to 0.4% in 2023, government data on Wednesday showed. However, the share of firms planning wage increases going forward has declined to 22% in March compared to 32% in December 2024 because of geopolitical tensions and global trade uncertainties, according to a survey by the manpower ministry.
Independent Singapore
27-05-2025
- Business
- Independent Singapore
Can Singapore choose between America and China? What have they to offer
Singapore cannot remain on the sidelines indefinitely amid rising trade tensions between the United States and China, Deputy Prime Minister Gan Kim Yong said at a business conference on May 22. While Singapore values strong economic ties with both superpowers, it is becoming 'increasingly difficult and challenging' to 'find a way that will be comfortable for both sides,' he noted. Should Singapore be forced to choose, the consequences could be significant for its S$731.4 billion economy (at current market prices), given the depth of its trade and investment links with both countries. China is currently Singapore's largest merchandise trading partner, with Malaysia in second place and the US in third. In 2024, total merchandise trade reached S$170.2 billion with China, S$138.6 billion with Malaysia, and S$136 billion with the US, according to the Department of Statistics (Singstat). Singapore exported more to China and Malaysia than it imported from them, while it imported more from the US than it exported. The pattern was reversed in the services trade. In 2023—the most recent year for figures found in the Singstat document—the United States was Singapore's largest services trade partner, followed by the European Union and China. Singapore imported S$108 billion worth of services from the US and exported S$51.1 billion. For China, services imports totalled S$35.7 billion and exports S$29.2 billion. Foreign direct investment The US also holds a commanding lead in foreign direct investment (FDI) in Singapore. It accounted for S$692.3 billion—roughly a quarter—of Singapore's total FDI stock of S$2.84 trillion in 2023. China, by contrast, did not appear among the top five sources, which included the Cayman Islands, British Virgin Islands, Japan, and the United Kingdom. However, China had the largest stock of Singapore's outbound FDI in 2023, having received S$223 billion, followed by India with S$109.9 billion. Chinese FDI in Singapore is rising too. China was the fourth-largest source of inward FDI, investing over S$10 billion—still significantly less than the nearly S$50 billion from the US. The UK and Japan were the second and third largest sources, respectively, though contributing substantially less than America. America plays a significant role in the Singapore economy. Bilateral trade and investment have grown steadily since the US-Singapore Free Trade Agreement (USSFTA) came into force in 2004. According to the American Chamber of Commerce, around 5,700 American companies operate in Singapore, many using it as their Asia-Pacific hub. In 2021, US multinationals based in Singapore employed 191,400 people. China's presence is growing, too. Tech giants Alibaba, Tencent, and ByteDance have all set up regional offices in Singapore, joined by others like and Huawei Cloud, according to business consultancy Hawksford. Nonetheless, American companies have a much longer history in Singapore. China's outward investment only gained momentum following economic reforms under Deng Xiaoping. Defence ties Singapore's ties with the US also run deep in the defence realm. According to the Ministry of Foreign Affairs, 'close and longstanding defence ties are a cornerstone of the Singapore-US bilateral relationship'. The 2005 Strategic Framework Agreement saw the US recognise Singapore as a Major Security Cooperation Partner. This partnership was further strengthened by the Enhanced Defence Cooperation Agreement signed in 2015, which expanded collaboration in areas such as biosecurity, cyber defence, humanitarian aid, disaster relief, and strategic communications. Singapore maintains three military training detachments in Idaho, Arizona, and Texas, forming the second-largest permanent foreign military presence in the US. The two countries conduct joint exercises annually. At the same time, Singapore is expanding defence cooperation with China. The Singapore Armed Forces has conducted joint exercises with the People's Liberation Army as part of a growing bilateral relationship. Still, it is clear that China is playing catch-up. America recognised Singapore just two days after the city-state's independence on August 9, 1965, and established diplomatic ties in April 1966 when the US embassy opened on the island. China and Singapore only established official relations in 1990. From capital inflows and job creation to military training and security partnerships, Singapore has long benefited from close ties with the United States. Relations with China have also yielded significant economic dividends. Yet recent developments — such as renewed US tariff threats under former President Donald Trump — have raised concerns in Singapore. Prime Minister Lawrence Wong has warned that the global economy could be heading for its third recession in two decades, following the financial crisis in 2008 and the COVID-19 pandemic in 2020. Deputy Prime Minister Gan has said Singapore will make decisions based on what best serves the country and its people. But the reality is that, in a world increasingly shaped by geopolitical rivalry, Singapore finds itself caught—uneasily—between a rock and a hard place. Featured image by Freepik (for illustration purposes only)
Malay Mail
22-05-2025
- Business
- Malay Mail
Singapore's economy beats Q1 forecasts, growing 3.9pc, but govt warns of trade war risks
SINGAPORE, May 22 — Singapore's economy rose faster than expected in the first quarter year-on-year, official data showed today, pushed by stronger global demand as businesses rushed to beat the imposition of higher US tariffs. The government, however, warned that downside risks remained as a full-blown trade war between the United States and China could still reignite after the end of a 90-day pause. Singapore's trade-oriented economy expanded by 3.9 per cent in the three months to March from the same period a year before, surpassing an advance government estimate of 3.8 per cent. It was, however, weaker than the five per cent expansion in the December quarter. And on a quarter-on-quarter basis, the economy contracted by 0.6 per cent, signalling the risks ahead. The year-on-year growth in the first quarter was driven by the manufacturing and wholesale trade sectors due to 'front-loading activities ahead of anticipated US tariff hikes', the trade ministry said. Although US President Donald Trump imposed a baseline 10 per cent tariff on Singapore, the city-state is vulnerable to a global economic slowdown caused by the much higher levies on dozens of other countries because of its heavy reliance on international trade. In April, Trump suspended the imposition of the higher tariffs for 90 days, except for China but recent talks between Washington and Beijing have sparked hopes the world's two biggest economies will come to an agreement. 'Notwithstanding the positive developments in recent weeks, the global economic outlook remains clouded by significant uncertainty, with the risks tilted to the downside,' the trade ministry said. Uncertainty will likely lead to weaker spending as businesses and households adopt a 'wait-and-see' approach, it said. The ministry maintained its forecast for the economy to grow at between zero to two per cent this year. This was a downgrade from its previous growth forecast of between one and three per cent. — AFP
Reuters
22-05-2025
- Business
- Reuters
Singapore GDP grows 3.9% y/y in Q1 2025, slightly above advance estimate
SINGAPORE, May 22 (Reuters) - Singapore's economy grew by 3.9% in the first quarter of 2025 from a year earlier, government data showed on Thursday, slightly higher than an official advance estimate of 3.8% released last month. On a quarter-on-quarter, seasonally-adjusted basis, gross domestic product contracted by 0.6% in the January-March period, compared with an advance estimate of a 0.8% contraction. The trade ministry maintained its GDP growth forecast for 2025 at 0.0% to 2.0%, after revising it downwards from 1.0% to 3.0% in April.
