The Genting group beat two other bidders, including the consortium of CapitaLand and Kerzner International and US-based Eighth Wonder.
"All three bidders submitted high quality proposals," Jayakumar said.
Jayakumar said improving relations between Malaysia and Singapore is not a factor in Singapore's decision to pick Genting for the Sentosa integrated resort (IR).
"Now that Genting has been successful... this will bolster the strong economic ties between the two countries," Jayakumar said.
The Sentosa integrated resort project is the second such project Singapore is developing.
In May, the government awarded the first such project on Marina Bay to Las Vegas Sands.
Genting group is spending about 5.2 bln sgd to develop the Sentosa IR, while Las Vegas Sands is spending over 3.2 bln usd on the Marina Bay IR.
While the main focus of the Marina Bay IR are business travellers attending conventions at its huge exhibition hall that can accommodate 52,000 people, the Sentosa IR is focused on tourist attractions, with Genting planning to build a 1.0 bln usd Universal Studios theme park.
The economic contribution of Sentosa IR will be similar to Marina Bay IR, with each of the project expected to boost Singapore's GDP by 0.80 pct or about 2.7 bln sgd annually, Trade and Industry minister Lim Hng Kiang said.
Lim said the Sentosa IR, which is expected to be completed in 2010, would create some 30,000 jobs by 2015.
"Both the Marina Bay and Sentosa IRs complement each other and will enable us to catalyze the growth in our two largest visitor segments of BTMICE (business travellers, meetings, incentives, conventions and exhibitions) and leisure," Lim said.
According to analysts, the Universal Studios theme park proposal gave Genting an edge over bidders. Six out of seven analysts polled by XFN-Asia last week predicted Genting will win.
"Genting, with its Universal Studios theme park component offers a clearly branded tourism strategy," said Merrill Lynch analyst Sean Monaghan.
Genting chairman Lim Kok Thay said he is confident that their Sentosa IR, to be called Resorts World at Sentosa, will contribute positively to Singapore.
"It will change the face of tourism in the region. Resorts World at Sentosa will attract 15 mln visitors," he said.
UOB KayHian economist Leslie Tang said the IR projects will be "quite positive for the economy."
"It will generate employment, since each of the casino bidders have already said they will try to employ as many locals as possible," Tang said.
Indirectly, the property sector will also benefit from the projects, Tang said, noting that prices of residential projects being built on Sentosa had been rising.
The construction sector, which has been in the doldrums for years will be another beneficiary.
"Construction will definitely be a boom and retail sales will probably see a boost from more tourist arrivals," he added.
"The IR will definitely help us meet our 17 mln tourist target (by 2015)," Tang said.
(1 usd = 1.53 sgd)