Singapore overtakes peers as second‑biggest FDI destination in 2025

FDI inflows reached $195.32b as the it strengthened its investment role.

Singapore became the world's second largest recipient of foreign direct investment (FDI) in 2025 after inflows increased to $195.32b (US$150.9b), according to the United Nations Conference on Trade and Development (UNCTAD).

In its World Investment Report 2026, UNCTAD said Singapore moved up from third place in 2024 as FDI inflows rose from $176.29b (US$136.2b). The organisation attributed Singapore's position to its role as a headquarters location and financial centre for international investment flows.

The report noted that changes in rankings amongst the world's largest FDI recipients are often driven by a limited number of transactions in financial centres and investment hubs, rather than broad-based changes in productive investment.

Singapore also strengthened its position as a global investment centre in 2025, with its inward FDI stock reaching $4.10t (US$3.17t), whilst its outward FDI stock rose to $2.68t (US$2.07t).

Outbound investment also accelerated during the year. Singapore ranked as the world's sixth largest source of FDI after outward investment increased to $121.93b (US$94.2b), up from $71.58b (US$55.3b) in 2024.

Regionally, South-East Asia became the largest FDI recipient subregion in developing Asia, with inflows rising to $315.83b (US$244b) from $287.35b (US$222b).

UNCTAD also highlighted the Johor–Singapore Special Economic Zone (JS-SEZ) as an example of cross-border investment cooperation.

It said approved investments in the zone reached about $22.39b (US$17.3b) in the first nine months of 2025.

The report said the initiative strengthens the two countries' joint investment platform through improved connectivity, coordinated investment facilitation and targeted incentives.

Globally, FDI increased 6% to $2.07t (US$1.6t) in 2025, according to UNCTAD.

($1 = US$0.77)