Ultimately, this will serve as the motivation for the Singaporean firms to rigorously expand their abroad investment activities. In other words, those firms have competitive advantage in financing foreign investment due to lower cost of borrowing in home country. On the other perspective, higher interest rate may reduce the intention of the domestic firms to invest abroad. This is due to the higher interest rate may attract more accumulation of investment via the saving. Therefore, domestic firms will have the tendency to invest locally to gain favorable return instead of taking risk investing abroad.