Singapore FDI 2025 figures confirm the city-state’s pull on international capital. According to UNCTAD’s World Investment Report 2026, Singapore received US$150.9 billion in foreign direct investment last year. As a result, it ranks as the second-largest recipient in the world.
For companies weighing an Asian base, this is a strong signal. However, it is worth reading the numbers carefully.
Singapore FDI 2025: second place worldwide
Singapore moved up from third place in 2024. Inflows rose from US$136.2 billion to US$150.9 billion, an increase of about 11%.
Meanwhile, global FDI grew by 6% to US$1.6 trillion, ending two years of decline. UNCTAD also notes that the recovery is uneven. In fact, the top 20 host economies attracted more than 80% of global FDI.
Singapore’s inward FDI stock reached US$3.17 trillion. In addition, its outward stock rose to US$2.07 trillion. Together, these figures show a hub that both attracts and redistributes capital.
What is behind the numbers
UNCTAD links Singapore’s position to its role as a regional headquarters location and a financial centre for international investment flows.
At the same time, the report adds an important caveat. Rankings among the largest recipients are often driven by a limited number of transactions in financial centres and investment hubs. Therefore, they do not always reflect broad-based growth in productive investment.
Singapore still leads Southeast Asia
The regional picture is just as striking. Southeast Asia attracted a record US$244 billion in FDI in 2025, up 10% on the year, according to a UOB analysis of UNCTAD data.
Singapore captured nearly 62% of that total. By comparison, Indonesia received US$21.4 billion and Vietnam US$20.4 billion. In other words, Singapore attracts roughly seven times more than the next market in the region.
What it means for international businesses
First, Singapore remains the natural place for regional headquarters, treasury and holding structures in Asia.
Second, the ranking is only one part of the story. Companies should look beyond headline FDI and assess tax, compliance, hiring and operating costs before they commit.
Finally, timing matters. A clear structure from the start makes it easier to expand across ASEAN later.
How Kelmer Group can help
Kelmer Group supports foreign companies entering and operating in Singapore. Our team assists with company formation, tax and legal advice, accounting and HR services, so you can set up the right structure with confidence.
Contact our Singapore team at kelmer.com/singapore/.
Source: Singapore Business Review — “Singapore overtakes peers as second-biggest FDI destination in 2025”, https://sbr.com.sg/economy/news/singapore-overtakes-peers-second-biggest-fdi-destination-in-2025