25 January 2011

Investment Commitments In Singapore

In its report entitled "EDB Year 2010 In Review" released on 24 January 2011, Economic Development Board said:
EDB's 2010 investment commitments set new records for total business spending... and number of skilled jobs created.  In addition, fixed asset investments... exceeded forecasts while the value-added... per annum contributed by these projects, ranks as the second highest on record.
[Total business spending — annual operating expenditure, which consists mainly of wages, depreciation and rental] reached S$8.6 billion.  [Fixed asset investment], at S$12.9 billion, also represents a record year...  When the projects committed in 2010 are fully implemented, they will create a record number of 21,300 new skilled jobs and contribute S$14.4 billion in value-added per annum.
Several people took this statement to mean that fixed asset investment in 2010 was S$12.9 billion, total business spending associated with these projects was S$8.6 billion etc.

It is likely that what Economic Development Board meant was that, in 2010, it secured commitments from companies to invest in projects in Singapore.  The fixed asset investment of the projects was committed to be S$12.9 billion.  The total business spending of the projects was estimated to be S$8.6 billion.

An investment commitment is not an actual investment, however.

Many projects take a number of years to be fully implemented.

Some projects may not be implemented in the form or scale that the companies envisaged in 2010, or may not be implemented at all.

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