Singapore’s economic resilience shines as it secures a staggering S$14.2 billion in investments for 2025, but here’s the twist: despite this impressive figure, the number of expected new jobs over the next five years has dipped to 15,700—the lowest since 2005. Is this the beginning of a shift where economic growth outpaces job creation? Let’s dive into the details and explore what this means for the future of work in Singapore.
On Monday, February 9, the Economic Development Board (EDB) announced that Singapore attracted S$14.2 billion (US$11.1 billion) in fixed asset investments for 2025. This marks a slight increase from the S$13.5 billion secured in 2024. Fixed asset investments refer to long-term spending on infrastructure like facilities, equipment, and machinery—a key indicator of a nation’s economic health. Meanwhile, total business expenditure, which includes operational costs such as wages and rent, rose to S$8.9 billion in 2025 from S$8.4 billion the previous year.
But here’s where it gets controversial: While investment commitments remain robust, the EDB’s annual report highlights a growing disconnect between investment and job creation. In 2024, investments were expected to generate 18,700 jobs over five years, but the 2025 figures show a notable decline. Why? EDB chairman Png Cheong Boon points to a more cautious business outlook and the increasing adoption of automation and artificial intelligence (AI) in operations.
“Singapore remains a top destination for business leaders due to its stability, reliability, and pro-business policies,” said Mr. Png. “However, the global landscape is evolving, and companies are navigating uncertainties like the global minimum tax rate and shifting trade policies.”
And this is the part most people miss: Despite the drop in job numbers, the quality of jobs remains high. Over two-thirds of the 15,700 new jobs are expected to offer gross monthly salaries above S$5,000, targeting both fresh graduates and mid-career professionals. These roles, primarily in services (40%), manufacturing (37%), and research and development (23%), are predominantly professional, managerial, executive, and technical (PMET) positions.
Jermaine Loy, EDB’s managing director, emphasizes the evolving nature of job roles. “As industries transform, there’s a growing demand for digital skills and specialized expertise. Companies are investing in AI, semiconductors, and biomedical technologies, but this shift requires a workforce equipped to meet these new challenges.”
Manufacturing remains a cornerstone of Singapore’s economy, with electronics and biomedical sectors leading investments at 33% and 30.8%, respectively. This contrasts with 2024, when electronics dominated at 57%. Of the S$14.2 billion in fixed asset investments, S$12.1 billion came from manufacturing-related projects, underscoring Singapore’s role as a hub for advanced manufacturing.
Here’s a thought-provoking question: As China’s investment share in Singapore surges from 2.5% to 20.6%, overtaking the U.S. for the first time, what does this shift mean for global economic dynamics? China now accounts for 50.7% of total business expenditure commitments, up from 15% in 2024. Mr. Png notes that Chinese companies, facing slower domestic growth, are increasingly looking to expand internationally, with brands like Bytedance and Mihoyo setting up operations in Singapore.
Looking ahead, the EDB expects fierce global competition for investments and acknowledges that job creation will become more challenging. To stay competitive, Singapore must double down on sectors where it has a proven edge, such as aerospace and AI. The nation is also positioning itself as a leading AI hub and fostering growth in areas like precision medicine, green economy, and next-generation hardware.
What’s your take? Is Singapore’s focus on high-quality jobs and advanced industries enough to offset the decline in overall job creation? Or does this signal a broader trend where technology outpaces human employment? Share your thoughts in the comments below—we’d love to hear your perspective!
