APAC Economic Perspectives "Singapore: Implications of China's new outbo..."

Research evidence excerpt

APAC Economic Perspectives "Singapore: Implications of China's new outbo..."

Global Research

10 June 2026ab

APAC Economic Perspectives Economics

SingaporeSingapore: Implications of China's new

outbound investment regulations Grace Lim

Economist

grace-k.lim@ubs.com

+65-6495 5965

Limited macro impact, with targeted risks in FDI and private wealth Aakash Rawat, CFA

China’s new outbound investment rules, effective July 2026, establishes a Analyst

comprehensive framework to oversee overseas investments. (See note) This is unlikely to aakash.rawat@ubs.com

+65-6495 8283

materially alter Singapore’s near-term macro outlook or financial conditions.

Singapore’s strong external balances and diversified inflow base should mean broad Michael Lim

liquidity, the exchange rate, and interest rates are not significantly affected. In addition, Analyst

most China-related inflows do not flow directly into local equity markets, and the michael-h.lim@ubs.com

+65-6495 5902

property sector is no longer meaningfully dependent on foreign demand. Nevertheless,

there are targeted areas of exposure. Growth in family offices and private wealth inflows Claire Long

could slow at the margin, although a diversified client base should cushion the impact. Economist

Longer-term, a sustained moderation in Chinese FDI, particularly in technology and claire.long@ubs.com

+65 6495 7426

other strategic sectors, could dampen the pace at which new firms anchor higher-value

functions (e.g. R&D) in Singapore. Permada Darmono

Analyst

Inflows are largely intermediated, rather than boosting local asset markets permada.darmono@ubs.com

+65-6495 3137

Based on official balance of payments (BoP) data, we estimate that less than 5% of

China’s roughly US$800bn in annual outflows went to Singapore. Flows are Angus Chan