Many countries are obsessed with FDI to generate economic activities in their countries. The more FDIs coming in, the more vibrant will be the economy. The Philippines are getting something like $2b to $3b FDIs annually while Singapore is getting something like $30b. No wonder Singapore’s economy is so healthy.
Singapore also has a reserve, unofficially it is rumoured to be around $1 trillion. Leaving this money idle is unsound as the money must generate income to pay the real owners of the money even at 2.5% or 4% pa.
Incidentally, how much of this reserve is being invested in Sin City and how much is being invested as FDIs in other countries? If the reserve were to be invested locally, would it mean that the $30b FDIs Singapore is getting is really peanuts?
Instead, Singapore is pouring FDIs all over the world and begging foreigners to invest here for a paltry $30b and so frightened that they would not come. Even worse, Singapore is throwing the billions all over without anyone begging for it but actually begging others to let Singapore pour FDIs into their countries at their terms. Heheh, the first thing that came to my mine is all the Free Trade Agreements like CECA.
Would it not be a better idea to pump our billions and billions of reserves back into our economy and no need to beg anyone to be here and be threatened by them or for them to discriminate and fix up our PMEs? Does it make sense? And from the reports and records, with so many failures in the tune of hundreds of millions and billions, is Singapore’s FDIs to other countries really profitable, nett nett of such heavy losses and still making billions?
Would Singapore be a safer alternative for our own reserves? We are trying so hard to sell Singapore to foreigners to invest here and have to kow tow to their demands. Why don’t Singapore sell Singapore to GIC and Temasek to attract their money to invest here as FDIs?
Does it sound funny?
Chua Chin Leng AKA Redbean
*The writer blogs at http://mysingaporenews.blogspot.com/