Singapore is the second most attractive destination for foreign direct
investment (FDI) flows from China, said an index compiled by the
Economist Intelligence Unit (EIU).
The US topped the EIU rankings and Hong Kong ranked third.
The EIU said Singapore and Hong Kong scored for their favourable
business environments, openness to trade and strong cultural links with
China .
Both have high levels of GDP per capita and while not
large, they make excellent bases for Chinese firms to access regional
and global markets, thanks to good transport infrastructure and open
economic policies.
According to Singapore’s
Department of Statistics, China ’s FDI in Singapore rose from 38
million USD in 2004 to nearly 3.3 billion USD in 2011.
By
the end of 2011, China’s FDI accumulation in Singapore reached 10.9
billion USD, accounting for nearly 50 percent of its total FDI in
Southeast Asia.-VNA