International Investment Position

Direct Investment

Direct Investment refers to cross-border investment where a direct investor, residing in one economy, owns 10 per cent or more of the ordinary shares or voting power in an enterprise residing in another economy. The components of direct investment comprise equity investment (i.e. share capital and reserves) attributable to the direct investor and net inter-company lending between the Singapore enterprise and its related entities overseas.

Direct investment statistics under the International Investment Position (and similarly the Balance of Payments) are presented on an asset/liability basis and are organised according to whether the direct investment relates to an asset or a liability for the country compiling the statistics. 

Financial Derivatives

A financial derivative contract is a financial instrument that is linked to another specific financial instrument or indicator or commodity and through which specific financial risks (such as interest rate risk, foreign exchange risk, equity and commodity price risks, credit risk, etc) can be traded in their own right in financial markets. Transactions and positions in financial derivatives are treated separately from the values of any underlying items to which they are linked.

International Investment Position

The International Investment Position (IIP) is a statement that shows the value and composition of cross-border financial assets and liabilities of residents of an economy. The values reflected are as at a point in time.

Other Investment

Other investment is a residual category that includes positions and transactions other than those included in direct investment, portfolio investment, financial derivatives, and reserve assets.

Portfolio Investment

Portfolio investment refers to cross-border investments by an investor in one economy into an enterprise that is resident of another economy with a lesser degree of influence than that of a direct investment relationship. Portfolio investment takes the form of either equity and investment fund shares or debt securities investment and is often associated with, but not limited to, trading of securities on organised or other financial markets.

Reserve Assets

Reserve assets show the stock of Singapore's foreign reserves holdings. They consist of Singapore's official holdings of monetary gold and foreign exchange assets, as well as Singapore's special drawing rights and reserve position in the International Monetary Fund.