What is Net Foreign Assets

The purpose of this chapter is to analyze how soft power components affect foreign direct investment in Singapore. The chapter aims to investigate the impact of soft power elements on foreign direct investment from 2000 to 2021, which includes governance, the population, education, financial, and development variables. A matrix of correlations of soft power variables is constructed and GMM techniques are used for analysis. Results concluded that soft power factors variables have a significant positive relationship with foreign direct investment. Meanwhile, enrolment in secondary schools, regulatory quality, political stability, no violence have a significant negative relationship with foreign direct investment. In addition, control variable exchange rate has a significant positive relationship with foreign direct investment. This chapter will theoretically improve existing research and offer major implications for both private and government organizations. In other words, regions with more 'soft power' have a tendency to have higher levels of foreign direct investment.