Investments secured in 2023 could create 20,045 jobs in Singapore over the next 5 years: EDB

Of these jobs, 58% are expected to be in the services sector, 26% in R&D and innovation, and the remaining 16% in manufacturing.

The Singapore Economic Development Board has, in the last year, attracted investments which are expected to create 20,045 jobs over the next five years, according to its 2023 Year in Review.

In a press release on 30 January 2024 (Tuesday), the Board shared an overview of the investments secured in the year, where these investments are focused, as well as its investment commitment goals and priorities ahead in 2024. 

Details are as follow:

Overview of 2023

In 2023, the EDB attracted investment commitments amounting to S$12.7bn in Fixed Asset Investment (FAI) and S$8.9bn in Total Business Expenditure per annum (TBE).

Contributors to this spike are global manufacturers in chemicals, electronics, healthcare, and aerospace as they continue to invest in Singapore, consequently strengthening the country's supply chain resilience to serve customers across Asia and the rest of the world. 

These commitments, when realised, are expected to create 20,045 jobs with a projected contribution of S$26.7bn in Value-Added per annum (VA).

Of the 20,045 jobs that were expected to be created when projects are fully implemented:

58% are in services

Service sector jobs are anchored by HQs and are driven by business priorities like environmental sustainability, procurement, supply chain resilience, digital transformation, and automation. Job roles include:

• Sales/business development managers
• Finance executives
• Supply chain executives
• Carbon specialists (Engineer/scientist)
• Regulatory managers

26% are in R&D and innovation

Jobs in R&D and/or innovation encompass not only cutting-edge technology but also product development and commercialisation. Job roles include:

• Product specialists
• Software engineers
• Data platform engineers
• AI/Machine learning researchers 
• Bioinformatics scientists

The remaining 16% are in manufacturing

Manufacturing jobs in Singapore, a highly automated and advanced location, encompass roles such as:

• Test Engineers
• Process Technicians
• Control Systems Engineers
• Laser/Optics Systems Engineers
• Network Specialists

In 2023, TBE commitments, job creation, and economic value added increased, driven by a rise in investment projects.

HQ and professional services projects constituted nearly 70% of the annual S$8.9bn in TBE, showcasing Singapore's position as a regional services hub.

The surge is attributed to global businesses using Singapore as a gateway to tap into Asia's growth, and Asian companies leveraging the vibrant business ecosystem to expand internationally.

Information & communications technology companies played a significant role in HQ projects, reflecting the growth of Southeast Asia's digital economy and widespread digitalisation across industries.

Here is a summary of the investment commitments that will take place over the next five years; 

Investment commitments for research & development (R&D) and Innovation activities increased, with multinational corporations (MNCs) deepening their innovation presence in Singapore.

The growth is attributed to more foreign start-ups choosing Singapore as their base. MNCs are expanding collaborations with the local research, innovation, and enterprise (RIE) ecosystem to develop products in Singapore.

Since 2021, the EDB's Corporate Venture Launchpad (CVL) programme has assisted 25 large companies nurture new venture concepts, with 15 of them planning to launch or having launched ventures in areas such as AI, data services, climate technology, and agricultural technology.

Vision for 2024

EDB aims to maintain the following investment commitment goals for the medium-to-long term: 

To enhance economic competitiveness, EDB will concentrate on positioning Singapore as a pivotal global node for advanced manufacturing and a services hub for Southeast Asia, with a strategic focus on the following areas:

Transforming existing sectors

EDB noted that it will work with large corporates to take advantage of opportunities like AI and digitalisation to increase productivity, as well as leverage the country's RIE ecosystem. EDB will continue to transition our base of industrial activities, including in the energy & chemicals sector, to a low-carbon future by unlocking opportunities in sustainable products and solutions, test-bedding new climate technologies, and creating new ventures around green and sustainable solutions.

Strengthening Singapore’s position in the global value chain

EDB will boost Singapore’s connectivity, logistics and supply management capabilities and continue to ensure that companies are able to establish their operations here quickly and smoothly.

Building new growth areas and anchoring innovation.

EDB will work with Enterprise Singapore (EnterpriseSG) and other government agencies to target potential new engines of growth, such as the green economy, AI and precision medicine.

Developing local talent

EDB will continue working with companies to train or reskill Singaporeans so they can seize job opportunities in growth sectors, while building a stronger Singaporean leadership pipeline.

Strengthening the competitiveness of our local ecosystem

 EDB is working with government agencies to secure access to renewable energy. Together with EnterpriseSG, the Board aims to nurture more collaborations between MNCs and our Singapore businesses (large local enterprises, small and medium-sized enterprises, and startups) and research institutions.

READ MORE: Unemployment rates remain stable, while retrenchments ease: Singapore labour market Q4 2023

Lead image / Provided by EDB Singapore