FDI TRENDS IN SINGAPORE: THE IMPACT OF COVID-19 AND KEY LESSONS FOR ASEAN NATIONS

Abstract

This paper analyzes the factors influencing foreign direct investment (FDI) inflows into Singapore from 2010 to 2023, focusing on socioeconomic and institutional determinants. The study employed panel data regression to analyze the combined impact of independent variables on FDI. The results showed that GDP per capita, market capitalization, and government effectiveness are the most significant factors in attracting FDI, with GDP per capita having the strongest effect. These findings suggested that strong economic development, a well-capitalized stock market, and effective institutions are critical in shaping investment decisions and fostering a favorable business environment both before and after COVID-19. ASEAN countries, through investment implementation agencies, should focus on enhancing growth factors and strengthening institutions to boost FDI attraction. This paper contributes to a broader understanding of the evolving FDI patterns in Singapore and policy strategies for ASEAN nations.