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Quick Summary
Investment commitments rose, but job creation fell to the lowest level since at least 2006
AI, electronics and manufacturing dominated new investments
China emerged as a major investment source, while the US share dropped sharply
The shift highlights capital-intensive growth over labour-intensive expansion
What’s Happening
Singapore is pulling in larger and more capital-heavy investments, yet generating fewer jobs in return.
According to the annual review by Singapore Economic Development Board, projects committed last year are expected to create just 15,700 jobs over the next five years — the lowest projection in nearly two decades.
At the same time, these projects are forecast to deliver S$18 billion in value-added per year once fully realised, also the weakest outcome since 2021.
Investment Keeps Growing
Despite softer employment outcomes:
Fixed-asset investment commitments reached S$14.2 billion in 2025
Up 5.2% year-on-year
Growth was driven by artificial intelligence, electronics and advanced manufacturing
Manufacturing-related sectors — including semiconductors, biomedical sciences and aerospace — accounted for S$12.1 billion, underscoring Singapore’s continued push up the value chain.
China’s Role Expands
The source of investments also shifted notably:
China became the second-largest contributor, making up 20.6% of fixed-asset commitments
This jumped from just 2.5% a year earlier
US investment share fell sharply to 17.3%, down from 55.5% in the prior year
Europe remained the largest contributor overall
Key signal: Singapore is becoming a bigger hub for China-linked advanced manufacturing and technology investment.
Why Fewer Jobs
The trend reflects:
More automation and capital-intensive projects
AI-driven productivity gains reducing labour needs
A strategic shift towards higher value-added output rather than headcount growth
Bottom Line
Singapore’s growth model is evolving.
The city-state is winning larger, more sophisticated investments — but these projects create fewer jobs than in the past, highlighting a structural shift toward capital efficiency over employment expansion.
For policymakers, the challenge now is ensuring job quality, reskilling and wage growth keep pace with this new investment reality.
Key Takeaways
Job creation outlook at a decades-low despite higher investments
AI and electronics driving capital inflows
China’s investment footprint rising sharply
Growth increasingly capital-intensive, not labour-driven
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