Foreign equity investment in S’pore hit $365.9 bln in 2006

Source : Business Times - 28 Aug 2008

Foreign equity investment (FEI) in Singapore reached $365.9 billion as at end 2006, 15.5 per cent higher than that recorded a year earlier, the Singapore Department of Statistics said on Thursday.

The latest survey was carried out in 2007/08 for reference year 2006.

The bulk (90.2 per cent or $330.2 billion) of total FEI was in the form of direct equity investment while the remaining 9.8 per cent (or $35.6 billion) were in the form of portfolio equity investment.

Both components of FEI (direct and portfolio equity investment) recorded positive growth in 2006. While portfolio investment grew significantly by 74.3 per cent in 2006, the expansion of direct equity investment was more moderate at 11.5 per cent.

Singapore’s stock of foreign direct investment (FDI) rose by 12.4 per cent to $363.9 billion as at end 2006.

Direct equity investment accounted for the bulk (90.7 per cent or $330.2 billion) of FDI while the remaining $33.7 billion was derived from net lending from foreign parent companies.

Both direct equity investment and net lending from foreign parent companies registered double-digit growths in 2006.

Foreign investors in Singapore were mainly attracted to financial services and manufacturing sectors.