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PUSHED by less exciting growth prospects in the home market because of limited size and maturity and lured by high-growth opportunities in emerging Asia, Singapore businesses are busy ploughing money into overseas markets.

Foreigners are leading the charge in developing new iconic projects that are set to change the Singapore skyline.

Various Singapore companies have set targets for where they want overseas earnings to be in the medium term. In the case of Singapore investment company Temasek Holdings, its realignment of portfolio saw it with big-ticket buys all over Asia.

But as Singapore companies widen their base and spread their wings overseas, foreigners have been streaming in to buy businesses and real estate in Singapore.

Active parties include those from neighbouring Malaysia and Indonesia and from further afield like Hong Kong and the Middle East, as well as from developed countries like Australia, Japan and the US.

Market players believe the flood of overseas money flowing into Singapore is linked with the low risk environment here and the value foreign investors place on Singapore dollar-de nominated cash flows. Moreover, foreigners see the economic restructuring that has taken place in Singapore as providing a good platform for longer-term economic growth and the efforts to lift Singapore's appeal as a place to live, work and play are pushing it up the league of global cities, say market players.

Foreigners are leading the charge in developing new iconic projects that are set to change the Singapore skyline. Hong Kong developers have major stakes in consortiums building mega projects like the Business and Financial Centre and Orchard Turn. Meanwhile, Las Vegas Sands is developing the Integrated Resort at Marina Bay, without any local equity partner.

Foreigners are seen by property players to be a major force behind the surge in prices and activity at the super high end of the Singapore residential property market. For example, a foreigner, who heads an international hedge fund, shelled out $16 million to buy a 7,000 square feet penthouse at The Boulevard Residence in the Orchard Road area.

Auction house Christie's was roped in to market the luxury condominium St Regis Residences to select customers in the UK and Europe. Besides residential properties, US fund Colony Capital bought the iconic Raffles Hotel last year and Filipino tycoon John Gokongwei, who failed in his attempt to take over office property landlord United Industrial Corporation, continues to up his stake in the company.

Lippo Group, owned by Indonesia's Riady family, has featured as the buyer in two anticipated sales by local banks, which are complying with regulations taking effect in mid-July that restrict the size of stakes held by banks in non-financial businesses. This year saw Lippo vehicles buying into Robinson & Co from OCBC Bank and Overseas Union Enterprise from United Overseas Bank.

Another deal announced this year sees an old name in corporate Singapore, Asia General Holdings, which is active in life and general insurance businesses in Singapore and Malaysia, being sold to Japan's Tokio Marine & Nichido Fire Insurance.

Australia's largest transport group, Toll Holdings, is behind the successful takeover of SembCorp Logistics.

High oil prices have led to Middle Eastern parties being flush with liquidity. Some of these monies, instead of heading to traditional markets like the US, are finding their way into Asia, including Singapore.

In late May, the control ling shareholder of Singapore-listed BH Global Marine, a procurement specialist of marine products for shipyards and ship chandlers, sold a 4.4 per cent stake in the company to Emirates Capital, which is a fund management company whose sponsors and major clients are from the Middle East.

Earlier in May, another Singapore-listed company, Hongwei Technologies, a polyester fibre manufacturer and supplier, got a new Middle Eastern investor for a 4.9 per cent stake in the company. He is Mubarak Ahmed bin Fahad, a special adviser to the son of the president of the United Arab Emirates.

Parties from Malaysia have also been active buyers of Singapore businesses. Tycoon Ananda Krishnan joined forces with Lippo to buy into OUE. Other examples include Scomi buying the marine logistics and offshore businesses of Chuan Hup and TM International, and Khazanah buying into Mobile One.

Market players note that Singapore property will continue to attract a wide spectrum of foreign investors but add that foreign interest in Singapore assets is spread across sectors. In particular, market players see businesses in areas like marine where Singapore is strong and Singapore businesses with good penetration in various Asian markets as being attractive to strategic investors.

Overall, market players say that with globalisation and liberalisation, cross-border investments will continue to increase across the globe. They say with Singapore being one of the economies most open to foreign investors and a beacon of stability in Asia, the flood of overseas monies from all quarters coming into Singapore will persist.