Foreign direct investment (FDI) is an investment from an entity in one country into a business or corporation in another country, with the intention of establishing a lasting relationship or interest. This could come in the form of an acquisition of a substantial stake in a foreign business, or an outright purchase of a company as a means to expand into a new market and develop a multinational presence. 

As with any kind of investment, FDI activities carry with them a certain level of risk. 

Given the international nature of FDI, investors may face financial risks because of high transaction costs, sudden currency volatility, or third-party intermediaries. In foreign markets – especially those in emerging economies – investors may also face liquidity risks, or risks posed by political instability.  

We offer a wide range of products and services for clients to begin engaging in FDI activities, including advisory and platform-based solutions. Contact us today to learn more about how we can help you achieve your business goals.

Singapore stands as a global business hub, renowned for its innovation, reliability, and stability. The nation offers a business-friendly climate, supported by strong legal and regulatory frameworks along with attractive tax policies, making it straightforward for both corporations and individuals to conduct business. As a highly regarded regional treasury centre (RTC), Singapore serves as an optimal platform for global expansion.

Singapore is also one of the largest offshore clearing centres for renminbi (RMB) and maintains large trade volumes with its ASEAN neighbours, outperforming other hubs in Asia. 

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In Singapore, the government has introduced a range of measures to foster FDI. These include incentives from the Economic Development Board of Singapore (EDB), tax exemptions, grants for research and development (R&D) and permits for technology professionals.

Although Singapore widely welcomes foreign investment, it is governed by specific regulations and restrictions. Sectors considered sensitive to public or national security, including media and real estate, may face FDI limitations. Meanwhile, industries such as professional services, banking, and telecommunications might be regulated through licensing requirements.