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SABANA SHARI’AH COMPLIANT REIT
34
1.4
Investment Commitments
Though investment commi tments in Singapore
continued to grow, they advanced at a slower pace
due to the global economy. Fixed Asset Investments
(3)
(“FAI”), a key indicator of manufacturing investments,
grew by 6.2% from $12.9 billion
(4)
in 2010 to $13.7
billion in 2011, in line with previous forecasts ($12.0 to
$14.0 billion). Total Business Spending
(5)
(“TBS”) also
rose, albeit less significantly, by 1.4% from $7.2 billion
in 2010 to $7.3 billion in 2011.
The overal l value-added that is expected to be
generated grew by $1.1 billion to $15.5 billion in
2011, up from $14.4 billion in 2010 (Figure 1.2). This
represents a 7.6% increase from 2010. For the goods-
producing industries, the biomedical manufacturing
sector is expected to make the largest contribution at
$3.0 billion in 2011. This is followed by the electronics
sector, at $2.0 billion. In addition, the value-added
from the biomedical manufacturing sector increased
the most significantly, from $0.6 billion in 2010 to
$3.0 billion in 2011.
Figure 1.2
Value-Added Expected to be Generated by
Industry
■
Infocomms and Media
■
Healthcare Services
■
Education
■
Logistics
■
Engineering and Environmental Services
■
HQ and Professional Services
■
General Manufacturing
■
Transport Engineering
■
Precision Engineering
■
Chemicals
■
Electronics
■
Biomedical Manufacturing
Source: EDB, DTZ Consulting, February 2012
In the goods producing industries, the value-added
for the transport engineering, general manufacturing
and logistics industries contracted in 2011 due to the
effects of the March 2011 Japan earthquake, Thailand
floods, and Eurozone debt crisis. This in turn affected
trade-related services such as warehousing and air
cargo distribution.
The government is cautiously optimistic about the
investment outlook for 2012, with expectations that
investment commitments in 2012 will be sustained at
2011 levels. FAI is expected to grow by up to 9.5%
to about $13.0 to $15.0 billion in 2012, reflecting the
continued strong investment momentum resulting
from long-term strategic investments, particularly in
petrochemical cracker projects.
1.5
Government Policies and Strategies in 2011
1.5.1 Budget 2011
Budget 2011, announced in February 2011, built on the
mid-term expansionary policy agenda in Budget 2010.
It included one-off and longer-term measures across
three broad categories:
• Boosting skills and productivity – included tax
benefits, grants and training subsidies for companies
and workers to deepen their skills and expertise;
• Enhancing companies’ growth capabilities – included
measures to help companies commercialise their
Research & Development (“R&D”) and expand
abroad; and
• Social investments benef itting households –
initiatives were introduced to improve the softer
aspects of the quality of life in Singapore and make
growth more inclusive.
1.5.2 Conditions for New Developments Under
Industrial Government Land Sales
MTI int roduced new condi t ions for indust r i a l
developments, effective 1 January 2012, to better meet
the needs of users of ready-built industrial space. The
conditions are as follows
(6)
:
• For selective sites near MRT stations or as decided
by the Government, strata subdivision of industrial
development is not allowed for a period of 10 years
from the date of the issue of Temporary Occupation
Permit (“TOP”). If the successful tenderer decides
to strata subdivide the development upon expiry of
the 10-year period, the GFA comprised in a single
strata unit should not be less than 150 sq m;
$12.5 billion
2009
2010
2011
$14.4 billion
$15.5 billion
(3) FAI refers to capital investments in facilities, equipment and machinery.
(4) All currencies are in Singapore dollars.
(5) TBS refers to a company’s annual operating expenditure when the project is fully implemented. The major components include wages,
depreciation and rental.
(6) Source: MTI Press Release, 29 December 2011.
Independent Market Study
by DTZ Debenham Tie Leung (SEA) Pte Ltd
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