SINGAPORE INVESTMENTS IN CHINA

Abstract

Singapore's external wing has spread far and wide since it took flight in late 1992. Indicators have showed that China is now the hottest spot for investments by Singapore businessmen. The latest survey done by Trade and Development Board showed that Singapore businessmen are very keen to invest in China. China is so called the 'last train in this century' and Singapore has been the fifth largest foreign investor in China since 1992. However, surprisingly, relatively little research on the topic has been done. Besides the Trade and Development Board, no survey is actually been carried out. The survey in this study is the first attempt of this kind that has been done. This survey is conducted with a view to create awareness of the subject and to find out the motives and problems of Singapore investors in China as there is hardly any opportunity for the investors to come together to share their experiences and frustrations. Chapter 1 provides a background of the study while Chapter 2 reviews some theories on the foreign direct investment. Chapter 3 will analyse the motivators of the investors based on the survey. A general analysis on the various aspects of the investments is given in Chapter 4. In Chapter 5, the problems that the investors have faced or are facing is presented and examined based on the survey. Lastly, Chapter 6 tries to draw some implications for the Singapore economy and some policy recommendations, followed by a conclusion.