Singapore Emerges as APAC's Top FDI Safe Haven
Trade tensions are reshaping investor priorities, but Singapore’s political stability, legal strength, and innovation focus are cementing its lead as the region’s most trusted destination for foreign direct investment.
Singapore has secured the top spot for foreign direct investment (FDI) confidence in Asia-Pacific, according to «Bloomberg Media’s latest Global FDI Outlook».
Despite escalating US-China trade tensions, 62 percent of regionally focused investors expressed stronger net confidence in the city-state. Political stability was the single most important factor for 62 percent of respondents, followed by the rule of law (54 percent) and tax policies (53 percent).
Investors Recalibrate Amid Rising Risks
Globally, investor concerns have shifted sharply toward geopolitics, with 38 percent of respondents citing US–China relations as a critical risk, overtaking inflation and supply chain disruptions.
Yet appetite for international expansion remains resilient, holding at 76 percent—just a fraction below last year’s level. Singapore’s reputation as a stable and resilient hub positions it as the key beneficiary of this rebalancing.
Innovation, Talent, and Market Access Drive Interest
For investors, Singapore’s strengths lie beyond stability. Innovation capabilities (34 percent), access to new customer markets (34 percent), and a highly skilled workforce (26 percent) emerged as the leading motivations for investment.
These factors highlight Singapore’s strategic alignment with global investor priorities for long-term competitiveness.
Betting on AI and Supply Chain Resilience
The future of investment in Singapore is closely tied to technology and transformation. More than half (55 percent) of investors pointed to AI adoption as the top opportunity over the next three years, while 45 percent highlighted supply chain diversification and 41 percent digital transformation.
These priorities show Singapore’s ability to channel global megatrends into concrete investment strategies.
Where the Money Will Flow
In practical terms, investors eye Singapore for expansion into new territories (53 percent), development of local supply chains and logistics (50 percent), and business support services (45 percent).
Advanced technology leads the sector focus, attracting 54 percent of investors, followed by IT/computer technology (40 percent) and business services (38 percent).
Singapore’s Forward-Looking Edge
«Singapore stands out not just for its stability, but for how closely it aligns with what investors value most,» said Michelle Lynn, Global Head of Data Science & Insights at Bloomberg Media.
With AI, digital transformation, and supply chain resilience topping investor agendas, Singapore’s tech-savvy, future-focused ecosystem cements its position as the region’s most trusted FDI hub.
