Sectors such as services, manufacturing, and R&D to lead the way in job creation
Investment commitments secured in Singapore throughout 2025 are projected to generate 15,700 new jobs as they materialise over the next five years. Significantly, approximately two-thirds of these positions are expected to offer a gross monthly salary exceeding $5,000, the Economic Development Board (EDB) said on Monday (Feb 9).
In a statement released Feb 5, the EDB noted that the 15,700 projected jobs are largely geared toward the professional, manager, executive and technician (PMET) workforce. The sectoral split sees services taking the lead at 40%, followed closely by manufacturing at 37%, and research and development (R&D) and innovation accounting for the remaining 23%.
Addressing the media at the statutory board’s 2025 year-in-review press conference held at its Raffles City Tower office, EDB chairman Png Cheong Boon said the new jobs would open doors for fresh graduates and mid-career hires.
“They will offer meaningful career pathways for our workers, especially those who have the necessary expertise and have done well; they will also offer opportunities to learn new skills and to take on new roles,” he said.
The nation’s fixed asset investment in 2025 reached S$14.2 billion, a modest 5.2% increase from S$13.5 billion in 2024, reflecting continued spending on long-term assets such as facilities, equipment, and machinery.
Whereas total business expenditure, which refers to companies’ incremental operating costs including wages and rent, edged up to S$8.9 billion in 2025 from S$8.4 billion the year before. The majority came from investments in headquarters, professional services and R&D.
Similar to last year, tech companies were the largest contributor to HQ investments, reflecting a strong demand for digital solutions and services in the region, Loy said.
“And we also saw many companies investing in R&D through new centres of excellence, and by locating their product roadmaps and commercialisation functions here in Singapore,” he said.
Despite the higher volume of investments, the 15,700 jobs expected to be created are the lowest in a decade, representing a decline of about 16% from the 18,700 projected in 2024.
EDB managing director Jermaine Loy explained that companies are taking a more cautious approach in their projections amid the uncertain environment.
He added that there are “some structural shifts at play as well, with higher levels of automation and digitalisation across industries”.
The director explained that as industries transform, they are increasingly seeing job roles evolve.
“More than ever, they require strong digital capabilities, and some require new and specialised skillsets,” he said.
Still, Loy said, “the jobs expected to be created are good, high-value roles that will offer meaningful career pathways for Singaporeans”.
Investments poured into manufacturing
Electronics and biomedical manufacturing were the leading industries for investment commitments last year, contributing 33% and 30.8%, respectively.
This is a stark contrast with 2024, when electronics investments dominated, accounting for 57% of the total.
EDB reported that of the S$14.2 billion in fixed asset investment commitments for 2025, approximately S$12.1 billion came from manufacturing-related projects.
Loy said this reflects Singapore’s continued strengths as a hub for advanced manufacturing.
“We also saw strong global demand for AI-related activities—chips, servers, server-related products—
and these were all key drivers of investments in the semiconductor industry,” he added.
“At the same time, we also saw biomedical manufacturers investing to meet demand for high-value biopharma and medtech products, and chemical manufacturers investing in specialty chemicals and sustainable materials.”
Additionally, EDB advanced its efforts in growth sectors such as AI, precision medicine, the green and bio-based economy, and next-generation hardware and mobility.
The agency secured new projects in data centre hardware and infrastructure, as well as emerging areas like quantum hardware testing.
In the mobility sector, new projects involving autonomous vehicles and electrification technologies helped create new jobs in automation, software, and hardware development.
According to Loy, the precision medicine sector is emerging as a key growth area for Singapore, driven by rising healthcare demands and wellness trends that are boosting the need for data-driven medical equipment.
China’s rising stake
By region, most fixed asset investment commitments originated from Europe, China, and the US.
The US’s share of investment commitments dropped sharply from 55.5% in 2024 to 17.3% in 2025, while China’s share rose from 2.5% to 20.6% over the same period.
For the first time, China surpassed the US in fixed asset investment commitments. In terms of total business expenditure commitments, China now accounts for the largest share at 50.7%, up sharply from 15% in 2024.
“Singapore has always been an open economy. Foreign companies with substantive business activities are welcome to set up here as long as they abide by our laws and regulations,” Png said.
Many Chinese companies are looking to expand internationally in response to slower domestic growth. In recent years, firms headquartered in China across various sectors have been increasing their presence in Singapore, Loy added.
Notable examples include e-commerce and gaming brands such as Bytedance and Mihoyo.
Singapore has a “good track record” of hosting multinational corporations from the US, Europe, Japan, India, China, and other Southeast Asian countries, he added.
“We continue to look towards the US and Europe to be key sources of investment commitments in terms of stock and flow,” he added.
Png noted that MNCs in 2025 generally adopted a “wait-and-see” approach to figure out how to respond to the evolving geopolitical environment.
“This year, business leaders have told us that while they expect volatility and uncertainties to remain, with the global economy remaining fragmented, they are ready to make calculated moves to grow or transform,” he added.
What lies ahead
Png observed that an increasing number of global businesses are seeking growth opportunities and stronger supply chain resilience by expanding beyond their traditional markets and operating bases.
He added that Southeast Asia offers “brighter growth prospects”, with Singapore “well positioned” to support companies looking to expand into the region.
However, he cautioned that Singapore is now operating in a different context than before and should remain “clear-eyed” about these changes.
Looking ahead, EDB expects continued intense global competition for investments. With structural shifts in the global business landscape, creating jobs will become more challenging.
To create the same number of jobs, EDB will have to bring in even more new projects, Png explained. This implies engaging more companies across more sectors and regions, and of different company sizes and growth stages.
“To remain competitive and secure more investments, we must double down on sectors where Singapore has built-up strong capabilities, established global leadership positions and therefore has a competitive advantage,” he said.
He gave the example of Singapore’s aerospace sector, which has a “global leadership position in aircraft engine component repairs” and is one of the country’s strongest growth sectors.
In its report, EDB highlighted key areas for development, in line with the priorities of the Economic Strategy Review Committee.
One focus is reinforcing Singapore’s leadership in growth sectors such as AI, with the aim of establishing the country as a leading AI hub and a fully AI-empowered economy.
Singapore’s Deputy Prime Minister, Gan Kim Yong, said in a media interview in January that the city-state can no longer take for granted that economic growth will automatically create jobs.
“With automation, AI and productivity, as all of us hope to achieve, there will be higher value-adding industries and business activities. That means with higher value-add per worker, you will not need as many workers,” he said.
EDB stated that it continues to collaborate with companies, training partners, and industry associations to enhance the competitiveness of Singapore’s workforce.
EDB will also explore emerging opportunities to develop new growth engines and focus on identifying, attracting, and anchoring high-growth companies with the potential to become future industry leaders.
“We will also continue our partnerships with companies to train and upskill our local workforce to ensure they have a strong talent pipeline with future-ready skills to fuel future growth,” Png said.
Monday’s EDB data was released ahead of Singapore’s budget, which Prime Minister and Finance Minister Lawrence Wong is scheduled to deliver on Feb 12.
- Read more articles we’ve written on job trends here.
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