German Chancellor Friedrich Merz has told Asian investors that Germany and Europe remain reliable destinations for long-term investment, during a three-country tour designed to deepen economic and strategic ties beyond China.
Speaking in Singapore on 27 October 2026, Merz said investment opportunities in Germany would continue to improve under his government. His message comes as Berlin faces domestic political pressure, including a ministerial resignation, weaker approval ratings and growing support for the far right.
Merz begins Asia tour with Singapore talks
Singapore was the first stop on Merz’s visit, which also includes Japan and South Korea. He met Singaporean Prime Minister Lawrence Wong and used the talks to promote Germany as a stable base for investors.
Merz said he saw no fundamental uncertainty in Europe and described Germany and the wider continent as locations that continued to attract confidence. The chancellor’s comments were aimed at reassuring international businesses at a time when European governments are seeking stronger economic resilience and broader partnerships.
Wong said Singaporean investors continued to take a long-term view of Germany and Europe. He indicated that their confidence was not determined by a single election cycle, suggesting that investment decisions were based on wider economic and institutional relationships.
Why Germany is looking beyond China
Germany has been attempting to diversify its trade and strategic relationships across Asia. China remains Germany’s largest economic partner in the region, but the relationship has become more complicated as Beijing is increasingly viewed not only as a market but also as a competitor.
At the same time, uncertainty about the reliability of the United States has encouraged European governments to strengthen links with other partners. Singapore, Japan and South Korea are important economies in the Indo-Pacific, and Berlin sees closer cooperation with them as a way to expand trade, investment and strategic coordination.
Merz said the four countries shared common interests. He argued that working together could strengthen their independence from other states, although he did not identify any country specifically.
The economic issues behind the tour
The visit reflects several priorities in European foreign and economic policy:
- Trade diversification: Germany is seeking stronger commercial links beyond its established relationship with China.
- Investment confidence: Berlin wants international companies to view Germany and Europe as dependable long-term locations.
- Strategic resilience: Partnerships with Indo-Pacific countries could reduce reliance on individual suppliers or markets.
- Technology and industry: Cooperation with advanced Asian economies may support investment in manufacturing, innovation and supply chains.
These objectives are relevant beyond Germany because the country is the European Union’s largest economy and a central part of the single market. German trade and investment policy can therefore influence broader European economic debates.
Domestic pressure complicates Merz’s message
The chancellor’s positive presentation abroad contrasts with political difficulties at home. Bärbel Bas, a senior minister from the junior coalition partner, resigned earlier this month, adding to concerns about the stability of the governing alliance.
Merz’s approval ratings have also declined, while support for the far right has increased. The source report additionally noted protests and widespread looting in France, highlighting the political and social pressures affecting major European countries.
Those developments do not automatically undermine Europe’s investment environment, but they form an important backdrop to Merz’s remarks. Investors typically assess political stability, public finances, regulation, infrastructure and access to markets over a longer period than an individual government’s term.
Merz’s Asia itinerary
The chancellor’s schedule covers three countries over four days:
- Tuesday 27 October: Singapore, including talks with Prime Minister Lawrence Wong.
- Wednesday 28 October: Japan, with a meeting planned with Prime Minister Sanae Takaichi.
- Thursday 29 to Friday 30 October: South Korea, for a two-day visit.
The sequence gives Germany an opportunity to discuss investment, trade and strategic cooperation with several influential economies in the Indo-Pacific. It also allows Berlin to present its Asian policy as broader than its relationship with China.
What the visit means for Europe
Merz’s remarks are political and economic messaging rather than a new European Union decision or investment guarantee. No new EU law, regulation or funding programme was announced in the report.
However, the trip illustrates how European governments are responding to a more competitive global economy. Germany is trying to maintain established trade links while developing alternatives and reinforcing relationships with countries that share an interest in open commerce and resilient supply chains.
For European businesses, the main significance lies in the potential for future commercial agreements, investment flows and cooperation in strategic sectors. Any concrete changes would require separate negotiations and formal decisions by the relevant governments or EU institutions.
What happens next?
Merz’s meetings in Japan and South Korea will provide the next opportunities to develop the themes raised in Singapore. The immediate focus is expected to remain on economic ties, strategic cooperation and reducing excessive dependence on any single external partner.
Whether the tour produces specific agreements will become clearer after the meetings conclude. For now, the central message from Berlin is that Europe remains open for investment, even as Germany’s coalition faces political challenges at home.
The takeaway: Friedrich Merz is using his Asia tour to reassure investors and build stronger partnerships beyond China. His argument that Europe remains a safe investment destination is also a test of whether Germany can project economic confidence abroad while managing political uncertainty domestically.