Singapore in talks with Malaysia and Indonesia to establish regional supply chain: Report 

Singapore is taking proactive steps to harness the changing dynamics of global manufacturing flows by partnering with Malaysia and Indonesia to bolster its regional supply chain. This strategic collaboration aims to capitalise on rising investments from India, China, and Southeast Asia in recent years.

During an event hosted by LSEG and Reuters Newsmaker,Managing Director of Singapore’s Economic Development Board (EDB)Jacqueline Poh highlighted the importance of fostering a robust manufacturing base that encompasses Singapore, the southern Malaysian state of Johor, and the nearby Riau Islands of Indonesia. This collaborative effort is envisioned to position Southeast Asia as a formidable production hub.

Singapore’s objective is twofold: to maintain its status as one of the world’s premier financial centres and leverage the ongoing wealth shift towards Asia. Concurrently, the city-state is actively establishing itself as a wealth management hub catering to the ultra-rich.

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However, the competition for a share of this growth is intensifying across the region as economies and businesses recover from the lingering effects of the COVID-19 pandemic.

Poh cautioned that the EDB anticipates a relatively subdued 2023 in terms of investments following a record-breaking 2022. In the previous year, Singapore secured S$22.5 billion (approximately $16.5 billion) in fixed asset investments, with over 66 per cent originating from electronics manufacturing projects.

“The primary driver for investments was the semiconductor super cycle," Reuters quoted Poh as saying. However, the electronics industry has faced a downturn, leading to a reversal of this trend.

Currently, Singapore holds an 11 per cent share of the global semiconductor market, with 20 per cent of global semiconductor equipment being manufactured within the country.

Additionally, Poh emphasised the EDB’s commitment to promoting “green finance” and renewable energy investments, encompassing sectors such as solar, wind, and hydropower.

Rising Family Offices

Singapore is maintaining its status as a sanctuary for the wealthy, who are establishing family offices to handle their money outside of their native countries in order to avoid political unrest and economic unpredictability.

According to data from the Monetary Authority of Singapore (MAS), there will be 1,100 single family offices in Singapore by the end of 2022, up from 400 at the end of 2020. These offices manage investments, taxes, asset transfers, and other financial problems for the wealthy.

Poh maintained that Singapore has made efforts to foster these family offices by enhancing training initiatives focused on asset management and financial planning.

“We've worked with the Wealth Management Institute at the MAS to start a brand-new course for family offices so that our family offices have to attend this new sort of training to better understand how they can deploy their capital,” Reuters quoted Poh as saying.

(With inputs from Reuters)

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