JAPANESE DIRECT FOREIGN INVESTMENTS IN SINGAPORE

Abstract

This academic exercise attempts to show the recent trends of Japanese direct investments in Singapore, with a brief section on early investments. However, in order to provide a clearer picture, Japanese investments to other parts of the world will be examined too, and general reasons for Japanese investments are given. The discussion of the structure of Japanese investments in Singapore will be linked to the characteristics of the Singapore economy. Important features of Japanese investments are studied: the industry groups they belong to, the size of investment, the number of people they employ and whether most are tie-up with locals or wholly-owned Japanese companies. The shape of future investments to come are examined using data on companies at present registered with the Registrar of Companies in Singapore. The importance of investments to Singapore is underlined, and steps which have been taken by the Government to promote investments are presented. The motivations of firms to invest in Singapore, resulting from investment incentives or other attractive advantages are discussed. The concluding section states the likelihood of greatly increased Japanese investment, especially in the electronics and electrical, finance and insurance, trade and commerce industries, in the near future.