Debated in Parliament on 4 Aug 2026.
Mr Lee Hong Chuang asked the Minister for Trade and Industry (Energy and Industry) (a) how does the Ministry assess the recent relocation of regional headquarters and production facilities to neighbouring countries; and (b) what strategic interventions will be implemented to restore Singapore's cost competitiveness, strengthen Singapore's value proposition and retain high-value regional hub functions amid intensifying regional competition for investment.
Businesses regularly review and optimise their operations in response to evolving market conditions, shifts in global supply chains and changes in business strategies. While some firms have chosen to relocate activities elsewhere to optimise their cost structures, others have chosen to expand in Singapore to tap on our advanced manufacturing capabilities, research and innovation ecosystem, the depth and breadth of our financial and professional services sectors as well as connectivity to the region and globally.
In 2025, the Economic Development Board secured $8.9 billion in Total Business Expenditure commitments, with the majority coming from investments in headquarters, professional services and research and development, and $14.2 billion in Fixed Asset Investment commitments, including about $12.1 billion from manufacturing-related projects. These investment commitments were on par with recent years, demonstrating that Singapore's value proposition to businesses remains strong.
We do not take the competitiveness of our economy and our attractiveness to investors for granted. In line with the Economic Strategy Review recommendations, the Government will continue to strengthen Singapore's position as a leading business hub by supporting businesses and workers to pivot, grow and seize opportunities in growth areas, such as advanced manufacturing, artificial intelligence, high-value trust-based services as well as pursue emerging technologies, such as quantum and space.
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