Direct Investment Abroad

Direct Investment Abroad (DIA) refers to an investment in which a Singapore direct investor owns 10% or more of the ordinary shares or voting power in an overseas direct investment enterprise. By contrast, an investment by a Singapore direct investor with less than 10% of the shares is considered as outward portfolio investment.

The statistics on Singapore’s Direct Investment Abroad are compiled mainly from the results of the Singapore's Investment Abroad Survey conducted annually by the Department of Statistics.

The stock of Singapore’s Direct Investment Abroad may decline due to:

1. partial/complete divestment in overseas direct investment enterprise by the Singapore direct investor
2. overseas direct investment enterprise buying back its shares from the Singapore direct investor
3. overseas direct investment enterprise is operating at a loss
4. dividends distributed by overseas direct investment enterprise are higher than current earnings recorded
5. redemption of inter-company loans from Singapore direct investors by direct investment enterprises
6. valuation changes and/or currency translation changes

Negative stock of Singapore’s Direct Investment Abroad may be recorded when:

1. the overseas direct investment enterprise has negative reserves due to the dividends distributed by the overseas direct investment enterprise being higher than current earnings recorded, and/or cumulative losses
2. loans/debt securities from the overseas direct investment enterprises to the Singapore enterprise exceed those from the Singapore enterprise to its overseas direct investment enterprises.

For more information on Singapore’s Direct Investment Abroad (DIA), you may refer to the Technical Notes document.

Equity Capital

Equity capital comprises (i) equity in branches and (ii) all shares in subsidiaries and associates (except non-participating, preferred shares). 

Singapore's Direct Investment Abroad

Singapore’s Direct Investment Abroad (DIA) refers to an investment where an enterprise in Singapore (direct investor) owns 10 per cent or more of the ordinary shares or voting power in an enterprise in another economy (direct investment enterprise).

DIA is measured by the sum of three components:

• Equity Capital invested by the direct investor in Singapore in the direct investment enterprise in another economy
• Reserves accrued to the direct investor in Singapore, which are accumulated retained earnings generated by the direct investment enterprises in another economy after deducting the dividends payable to the direct investor
• Net Inter-company Lending between the direct investor in Singapore and the direct investment enterprises in another economy. 

Singapore's Direct Equity Investment Abroad

Singapore's Direct Equity Investment Abroad refers to equity capital and reserves of enterprises in another economy attributable to direct investors in Singapore.

For overseas branches of Singapore incorporated or registered banks, their net fixed assets are used as a proxy of equity capital.  For overseas branches of other Singapore entities, the net amount due to their Singapore head office is used.

Net Inter-Company Lending

Net inter-company lending refers to net inter-company debt, such as loans and debt securities, between the enterprise in Singapore and its related entities in another economy.