Siemens will spend €2 billion (US$2.16 billion) on a new global investment strategy, the German engineering and technology conglomerate announced on Thursday (Jun 15), as it prepares to satisfy rising demand caused by global stimulus packages.

Siemens said in a statement that it will create new factories, research and development centres, and training facilities around the world to address issues raised by the COVID-19 epidemic and escalating geopolitical tensions.

Siemens will invest €200 million in a new plant for its industrial automation division in Singapore as part of the investment programme, which will cover announcements made in 2023.

"Siemens is growing much faster than the market. "Today, we announce an investment strategy to drive future growth, innovation, and resilience," said Siemens CEO Roland Busch in a statement.

Siemens will also increase its R&D spending by €500 million this year, the firm announced on Thursday.