Regionalisation : an economic analysis of outward foreign direct investment from Singapore

Abstract

The objectives of this study are to give an idea of the economic development of Singapore over the past thirty years; the key factors that motivated Singapore firms to undertake foreign direct investment (FDI); and their responses towards FDI. The economic development of Singapore began with the role played by the Economic Development Board (EDB) in attracting foreign investors, mainly multinational companies into Singapore. However, more emphasis was placed on venturing overseas through FDI in the late eighties as Singapore's economy began to mature. Three contributing factors have been identified that resulted in this upsurge trend of FDI. They include both the pull and push factors, as well as the extensive role played by the government to encourage FDI.