SINGAPORE
Trade and Investment Country Information
1995
Trade & Investment Information
1995
Singapore Indian Chamber of Commerce & Industry
CONTENTS
Details Page
Chapter
General Business Information 1
1.
A. Establishing a Business Office
B. Trademarks & Patent Registration
C. Infrastructure & Facilities
D. Travelling & Business Customs
Selling to Singapore 8
2.
A. Import Policy, Regulations & Procedures
B. Tariff Schedules
C. Foreign Exchange Regime
Buying from Singapore 12
3.
A. Export policy, Regulations & Procedures
B. Tariff Schedules
Investing in Singapore 16
4.
A. Priority Industries and Areas
B. Reserved Activities
C. Investment Incentives
D. Administrative procedures
Trade & Investment Information Services 22
5.
A. Government Agencies
B. Chambers of Commerce & Industry
C. Overseas Sources of Trade Information
Singapore Statistics 31
6.
A. Key Economic Indicators
B. Imports
C. Exports
CHAPTER 1
GENERAL BUSINESS INFORMATION
There are about 300,000 business enterprises, ranging from large multi-national organisations to sole proprietorship firms, registered in Singapore at present and some of them are over a hundred years old.
A. ESTABLISHING A BUSINESS OFFICE
In Singapore, a business entity can operate either as a company or a business firm which must be registered with the Registry of Companies and Businesses (RCB). RCB is a government body which deals with the formation of business entities, provides information on other businesses registered with RCB and ensures their compliance with the statutory requirements in Singapore. The three main areas of activities of RCB are therefore registration, supply of information and compliance control.
1. Types of Business Organisations
A business entity can engage in business either as a business firm or a company.
i. Business Firm
A business entity can be registered as a business firm if it is a sole proprietorship or a partnership. For registering a business firm, the individuals need not be Singaporean or companies need not be registered in Singapore but its manager must be a Singaporean, permanent resident or employment pass holder.
Individuals and companies are legal persons but a business firm is not a legal entity. It has no legal rights or obligations and cannot therefore enter into business transactions under its name. It cannot own assets and cannot register another business firm. All its activities have to be in the name of the owner(s) whose financial responsibility is unlimited. Liability of the firm also extends to the manager of the concern. Business firms are registered and regulated by the Business Registration Act, Cap 32.
a. Sole proprietorship
It is a business firm owned by an individual who is fully responsible for the enterprise.
b. Partnership
It is owned by more than one and less than twenty persons or companies generally, with each partner having equal responsibility for running of the firm. In case one of the partners withdraws, is declared bankrupt or dies, RCB has to be informed and a new partnership has to be started. Once the number of partners in a business firm exceeds 20, it cannot continue as a business firm and must be registered as a company under the Companies Act, Cap 50.
ii. Company
A business entity can be registered as a company if two or more individuals or companies agree to becoming its subscribers and subscribe to at least one share each. Two directors are also required and they may be same as the subscribers. For registering a company, the individuals need not be Singaporean or companies need not be registered in Singapore but one of its directors must be a Singaporean, permanent resident or employment pass holder.
A company is a legal person in law having its own rights and obligations and may own assets, other companies or business firms. Unlike business firms, the status of the company remains unchanged when one of the shareholders withdraws, is declared bankrupt or dies. Companies are registered and regulated by the Companies Act, Cap 50.
I. Classification of a company by shares
An incorporated company may be classified, based on its shares, into one of the following categories:
a. Private company
It is a company which has not more than fifty shareholders. Its share capital must be raised privately from the shareholders and the banks. A private company cannot raise capital by inviting public to deposit money, be its shareholder or debentureholder.
b. Public company
It is a company with more than fifty shareholders. It may invite public to deposit money with it, subscribe to its shares or debentures. The shares of a public company, subject to approval from RCB and the Stock Exchange of Singapore Ltd, may be transferable and tradeable.
II. Classification of a company by liability
A company may also be classified, based on its liability, into the following categories:
a. A company limited by shares
It is a company where the liability of the shareholders is limited to the value of shares held by them. Most companies in Singapore fall under this category.
b. A company limited by guarantee
It is a company whose members individually guarantee to contribute to the assets of the company in case of closure. Non-profit organisations come under this category.
c. An unlimited company
It is a company where the liability of its shareholders is unlimited. Such companies are rarely found in Singapore.
2. Foreign companies
A foreign company may either set up an office for non-business purposes or for business purposes in Singapore. For non-business purposes, it may set up a representative office where as to conduct business it may either set up a subsidiary or a branch.
Approving authority for establishing a representative office is Singapore Trade and Development Board (STDB). The subsidiaries and the branch offices of foreign companies, however, come under the jurisdiction of RCB. Once registered in Singapore they are governed by the Companies Act, Cap 50 and are subject to the local laws.
i. Representative Office
A representative office of a foreign company can be set up in Singapore for liaison and promotional activities. A representative office cannot enter any business transactions either in its own capacity or on behalf of the parent company.
ii. Subsidiary
A subsidiary which is a new legal entity and is governed by the rules applicable to any new organisation.
iii. Registered branch
A registered branch is not a separate legal entity as it is considered to be merely an extension of a company incorporated outside Singapore. A branch office requires RCB's approval for the use of the name of the foreign company before registration. Every registered branch office must be accessible to public for at least five hours on working days between 9 am to 5 pm and must have two agents in Singapore who are Singaporeans, permanent residents or employment pass holders. A foreign company must seek approval from Controller of Immigration to station expatriate staff at its branches.
3. Guidelines for Registration
To operate in Singapore all business entities require a Certificate of Registration or Incorporation from RCB except people like domestic servants, farmers, licensed hawkers, private fish & prawn pond keepers, sampan men, taxi and trishaw drivers. Another group of people who need not register are professionals like doctors, lawyers and Accountants as they are regulated by their respective professional bodies.
To be registered in Singapore a business entity must ensure that it qualifies and completes the necessary formalities prescribed by the Companies Act. A brief listing of the requirements are as follows:
i. Eligibility
Any individual over 21 years of age and any company is eligible to form a business entity. Undischarged bankrupts need permission of the High Court to enter into business. These individuals and companies need not be Singaporean or incorporated in Singapore. Foreigners stationed in Singapore, however, need a Work Permit from Ministry of Labour and Employment Pass from Immigration Department.
ii. Approvals & Licences
All business entities require approval of proposed name prior to registration or incorporation from the relevant bodies. The proposed name must conform to the guidelines laid down in Companies Act, Cap 50.
In addition, certain types of business activities are controlled by government agencies and require necessary approvals and licence from relevant authorities before commencing business.
S/N Business Activity Relevant Authority
1. Banking & Financial Services Monetary Authority of Singapore,
Ministry of Finance
2. Bus Services Ministry of Communications
3. Child Care Centres Ministry of Community Development
4. Medicinal Products/ Controlled Ministry of Health
Drugs
5. Primary Food Items Ministry of National Development
6. Private Car Parks Ministry of National Development
7. Private School Ministry of Education
8. Radioactive Materials/ Ministry of Health
Irradiating Apparatus
9. Travel Agency Singapore Tourist Promotion Board,
Ministry of Trade & Development
10. Video Companies Ministry of Information and the Arts
iii. Documentation for Registration
After receiving approval of business name and other necessary approvals (if any), a business entity must apply to RCB for registration.
To register a business firm `Application to Register a Business' form has to be submitted at the RCB. Registration is valid for one year and needs to be renewed annually.
To incorporate a company the following documents need to be submitted to the RCB:
* Memorandum and Articles of Association
* Statutory Declaration of Compliance (Form 6)
* Certificate of Identity (Form 7)
* Return of Allotment of Shares (Form 24)
* Notice of Situation of Registered Office/Office Hrs at Time of Registration (Form 44)
* Consent to Act as Director and Statement of Non-disqualification to Act as Director (Form 45)/ Consent to Act as Director and Statement of Non-disqualification to Act as Director with leave of Court (Form 45A)
* A Consent to Act as Secretary (Form 45B) - (if applicable)
* Return Giving Particulars in Register of Directors, Managers, Secretaries, Auditors and Changes of Particulars (Form 49)
B. TRADEMARKS AND PATENT REGISTRATION
Trademarks and Patents are integral part of business world. Trademarks provide an identity to goods or services and establishes their relationship with the registered users. A Patent, however, provides intellectual property rights to a new invention or innovation of an individual or an organisation.
1. Trademarks
In Singapore, Trademarks are governed by the Trademarks Act and come under the purview of Registry of Trademarks & Patents. Once registered a trademark is protected under the law, within the jurisdiction of the country, allowing the owner exclusive right to use it. Any infringement of the trade mark empowers the owner to seek legal redressal.
A trademark may be registered under one or more of the 42 classes of goods and services classified in the trademarks register. The registration is valid for a ten year period and may be renewed thereafter, within the stipulated time given by the Registrar.
2. Patents
There is no provision for the original grant of Patents in Singapore. However, government has set up a Patent Application Fund (PAF) under the aegis of National Science & Technology Board (NSTB) which helps Singaporean organisations or individuals to register their Patents with USA or UK. Financial assistance is provided to the applicants to cover 50% of the cost of filing the patent to a maximum of $30 000. To qualify for PAF the following requirements must be fulfilled:
* applicants must be Singaporeans, public sector organisations or companies with Singaporean equity ownership of minimum 30 %
* the research work leading to the Patent must be done in Singapore and
* the patent must belong to a Singaporean organisation or individual.
C. INFRASTRUCTURE & FACILITIES
1. Utilities
Public Utilities Board (PUB) is responsible for the production and distribution of electricity, water and gas to the consumers throughout Singapore including the offshore islands.
i. Electricity
Electricity is generated and transmitted through a cable network of over 19,000 km. A reliable supply is ensured by the Power System Control Centre (PSCC) located at Ayer Rajah Substation which uses SCADA to monitor the network. Power is available for industrial use at 66kV, 22kV, 400 V (3 phase) and 230 V (1 phase) and for domestic use at 400 V (3 phase) and 230 V (1 phase).
ii. Water
Potable as well as industrial water is distributed through over 4,000 km pipeline network throughout the country.
iii. Gas
Gas produced at Kallang gasworks is distributed through over 2,000 km gas mains to domestic, commercial and industrial consumers.
2. Telecommunications
Telecommunications Authority of Singapore acts as an apex body on telecommunication matters in Singapore. Cable and satellite links provide access to the rest of the world through telephones, facsimiles, telex services and data transmission. Special telecommunication services are also provided for aeronautical, maritime and meteorological purposes.
3. Port Facilities
Singapore port, administered by the Port Authority of Singapore (PSA), is one of the busiest in the world in terms of tonnage. PSA operates six terminals and provides a range of services like cargo handling, warehousing, distribution, bunkering, ship supplies and other support services. The six cargo gateways - Tanjong Pagar, Keppel, Brani, Pasir Panjang, Sembawang and Jurong port - operate 24 hours and are capable of harbouring over 700 ships at a point in time. The port serves over 500 shipping lines and 30,000 vessels annually.
4. Aviation Facilities
Singapore has two airports catering to its aviation needs which are managed by Civil Aviation Authority of Singapore (CAAS). While Changi International Airport serves international carriers, Seletar Airport is designated for charter services and other general activities. A range of services are offered by the CAAS to facilitate air traffic movement. Changi Airport has earned recognition world over for its efficient services and the aircraft movements, passenger traffic and volume of cargo handled has steadily increased over the years. In 1994 about 60 airlines, 18 million passengers, 900,000 tonnes of cargo used the facilities at the Changi Airport.
D. TRAVELLING AND BUSINESS CUSTOMS
1. Immigration Requirements
Admission, residence and employment of foreigners in Singapore is regulated by the Immigration Act (Cap. 133). Foreigners are required to obtain permission of the Controller of Immigration to enter, stay and work in Singapore.
Permission is granted under two categories for foreigners entering Singapore for employment purposes. While Work Permits are given to foreigners with monthly income below $1,500, Employment Passes are issued to foreigners earning a monthly salary of $1,500 and above. However, for short term assignments, foreigners may be issued Professional Visit Passes.
Non-Singaporeans wishing to reside in Singapore are granted permission for permanent stay under two schemes - Professional/Technical/Skilled Workers Scheme or $1 Million Deposit Scheme for entrepreneurs. Spouse and dependent children of a permanent resident may also be granted similar status. Permanent residents who wish to reside on a permanent basis in Singapore, may opt for Singapore citizenship if eligible.
2. Languages, Business Hours and Holidays
English is well understood as it is one of the four official languages of Singapore besides Mandarin, Malay and Tamil. Majority of Singaporeans are bilingual having a working knowledge of at least two official languages.
Most government and business offices operate between 9 am and 5 pm from Mondays to Fridays. Some offices, however, also work half a day on Saturdays from 9 am to 1 pm. Shops are usually open from 10 am to 9 pm throughout the week. Banks are open for public dealings from 9 am to 3 pm on all weekdays except Saturdays, when they are normally open from 9 am to 11 am.
Most organisations are closed on public holidays in Singapore. The public holidays for the year 1995 are as follows:
S/N Date Day Occasion 1. 2 Jan 95 Monday New Year 2. 31 Jan 95 Tuesday Chinese New Year 3. 1 Feb 95 Wednesday -do- 4. 3 Mar 95 Friday Hari Raya Puasa 5. 14 Apr 95 Friday Good Friday 6. 1 May 95 Monday May Day 7. 10 May 95 Wednesday Hari Raya Haji 8. 15 May 95 Monday Vesak Day 9. 9 Aug 95 Wednesday National Day 10. 23 Oct 95 Monday Deepavali 11. 25 Dec 95 Monday Christmas
CHAPTER 2
SELLING TO SINGAPORE
Singapore provides a favourable climate for trade cooperation for countries both in the immediate vicinity and beyond. It imports as well as exports goods to various countries across the world.
A. IMPORT POLICY, REGULATIONS AND PROCEDURES
Singapore primarily follows a free trade policy. Majority of the imports are free of any restrictions. However, duties, licensing and controls do apply to a limited number of goods. Ministry of Trade & Development administers foreign trade and is responsible for the policy directions.
1. Import Trade Classification
Import trade of Singapore can be classified as:
i. Direct
Goods imported for direct consumption or for use in manufacturing and payments are made in Singapore.
ii. Transit
Goods imported in transit through Singapore by land, sea or air by a Malaysian company destined for countries other than Peninsular Malaysia.
iii. Re-export
Goods imported for sale to a foreign country, irrespectively of whether or not there is re-packing, splitting into lots, sorting, grading or marking.
iv. Foreign 3rd Party
The import into Singapore of crude petroleum and petroleum products owned by foreign companies to be processed by oil refineries in Singapore.
v. Local 3rd Party
The import into Singapore of crude petroleum and petroleum products owned by local companies to be processed by oil refineries in Singapore.
2. Licensing, Controls and Prohibitions
Majority of the goods can be imported into Singapore without any restrictions under the Open General Licence. Goods originating from specific countries like Iran and certain goods like rice from any country are subject to import licensing. Certain goods like fire crackers are prohibited. Some other goods fall under the controlled category whose imports are controlled for security, safety or health reasons.
3. Import Requirements
Items under import control may either require endorsement or a licence before import is allowed or they may be prohibited from import. To import goods into Singapore, an importer needs to file an IC application to the Controller of Imports & Exports after obtaining necessary permissions/ endorsements for items under import control. Before applying for an Import Certificate (IC) for goods under import control, the importer must also ensure that the goods to be imported into Singapore are subject to export control in the exporting country and are not banned in Singapore. A letter or declaration in the prescribed format is required of the exporter and at times a letter of confirmation from the exporter's government department may be required to prove that the goods are subject to export control in the exporting country.
In order to ensure speedy delivery of imports, importers must follow the import declaration procedures carefully. Importer must submit the completed Singapore Inward Declaration form with the following documents to the I&E Office for endorsement:
* Invoice
* Certificate of Origin (if required)
* Import Licence (if required)
* Catalogue/ Sample (for new products)
* Air Waybills (for air consignments)
Delivery of the goods can be obtained by handing the original copy of the endorsed declaration to the shipping agent in exchange for a delivery order (for sea consignments); by showing the 1st copy of the endorsed declaration to the airline/cargo agent (for air consignments); showing the 1st copy of the endorsed declaration to Customs at the checkpoint/gate where the goods are taken out of the controlled area/Free Trade Zone (FTZ).
4. Participation in Multilateral, Regional and Commodity Agreements
Recognising the impact of globalisation, Singapore has built trade cooperation ties with several nations and has integrated well into the world economy. Singapore is a member of ASEAN under which the members encourage regional cooperation through trade agreements like ASEAN Preferential Trading Arrangements (PTA) and Common Effective Preferential Tariff (CEPT) between member countries and dialogue sessions with trading partners.
Singapore is also a partner in the Growth Triangle concept which incorporates Johor (Malaysia) and Riau Island (Indonesia). The three partners which are at different stages of development aim to benefit through mutual exchange of resources.
B. TARIFF SCHEDULE
1. Classification
Singapore uses the Harmonized System (HS) for tariff classification and coding based on the International Convention on the Harmonized Commodity Description and Coding System.
2. Customs Duties
Customs duties come under the purview of the Customs & Excise Department. All dutiable goods imported into or manufactured in Singapore are subject to customs duties in accordance with the Schedule to the Customs Duties Order.
In Singapore, valuation for Customs purposes is based on the Brussels Definition of Value (BDV). The basic principle of the BDV is that dutiable value is taken to be the normal price or import price of goods at the port of place of importation. It pre-supposes that the sale has taken place in the open market between buyer and seller independent of each other.
For dutiable goods, ad valorem or specific rates of customs duty may be applied. Ad valorem rate of duty is most commonly levied which is a percentage of the assessed value of the imported goods. For certain goods, a specific rate of duty is applied which is an amount specified per unit of weight or any other measure.
In general, full rates of duty are applicable to all dutiable imports. But for certain specified imports originating and consigned from ASEAN countries, preferential rates are leviable.
3. Capital Gains Tax
For foreign investors there are no capital gains tax, turnover tax, development tax or surtax on imports in Singapore.
4. Goods and Services Tax (GST)
From Apr 94, the Goods and Services Tax (GST) has been levied on all goods imported into Singapore and on all supply of goods and services within Singapore. All goods imported into Singapore are subject to GST at the rate of 3% on the CIF value of the goods plus commission and other incidental charges and is payable at the point of import. On selected goods, however, relief from payment of GST is provided on import. The Customs and Excise Department is responsible for the collection of the tax on imported goods and supply of locally manufactured goods subject to excise duty.
If the goods are dutiable, the GST is collected together with the customs duty. In the case of dutiable goods such as liquors, tobacco, petroleum products and motor vehicles, the GST together with the customs duty is temporarily suspended when such goods on importation are removed for storage in a warehouse. The GST and the customs duty is payable when the goods are later released from the warehouse for local consumption.
GST relief is available subject to certain conditions for the following import categories:
* Temporary imports for re-export in the same state
* Temporary imports for repair
* Re-importation of goods temporarily exported for repair
* Return of rejected exports
* Goods imported under the Major Exporter Scheme
* Goods imported or removed from warehouse for processing
5. Foreign Exchange Regime
Established in 1971, the Monetary Authority of Singapore (MAS) brought all monetary operations normally associated with a central bank under one administration leaving only currency issuing function with the Board of Commissioners of Currency. The MAS acts as a banker, fiscal agent and financial advisor to the government of Singapore.
All exchange controls were removed in Singapore from 1978 allowing resident corporations and individuals freedom to enter into transactions involving payment, remittance or capital transfers in any currency to any country.
i. Currency
The currency of Singapore is Dollar. 1 Dollar is equal to 100 cents. The dollar is denominated in 1, 2, 5, 10, 20, 50, 100, 500 and 1000 dollar notes; and 1, 5, 10, 20, 50 cents and 1 dollar coins.
ii. Banking
The MAS implements the monetary policies and is the financial agent and banker of the government. It serves as a banker to the banks and administers various statutes pertaining to money and banking.
There are about 129 commercial banks, 52 representative offices and 76 merchant banks operating in Singapore.
Majority of the commercial banks in Singapore have offshore banking licence which deal mainly in Asian dollar and foreign exchange transactions concentrating mainly on wholesale banking of non-residents. The other two groups of commercial banks are those with full banking licences and those with restricted banking licences. Restricted banks can open only one office in Singapore and are not permitted to either operate savings accounts or accept time deposits less than $250,000.
Representative offices are not permitted to conduct any banking business and can only act as liaison offices for their parent organisations where as merchant banks provide a range of merchant banking services like portfolio management, underwriting, corporate financing, investment and financial advisory services.
CHAPTER 3
BUYING FROM SINGAPORE
Singapore's trade in terms of both exports and imports has shown a growth over the years on account of its favourable trade relations with the neighbouring countries and beyond. Devoid of natural resources and limited by its small size and population, Singapore is greatly dependent on its exports for its economic growth. Economic growth rates have been good for over two decades as the economy has moved from being a entrepot to a thriving business centre manufacturing and providing a host of services to a range of businesses.
A. EXPORT POLICY, REGULATIONS AND PROCEDURES
Singapore following a free trade policy encourages exports by levying no export duties on goods exported from Singapore. While majority of exports are free of restrictions some goods are subject to export licensing and controls. Ministry of Trade & Development administers foreign trade and is responsible for the policy directions.
1. Export Trade Classification
Export trade of Singapore can be classified as:
i. Direct
Goods whether of Singapore origin or foreign origin sold by Singapore to a foreign country.
ii. Transit
Goods exported in transit through Singapore by land, sea or air destined for Peninsular Malaysia from countries other than Peninsular Malaysia by a Peninsular Malaysian company.
iii. Foreign 3rd Party
The export from Singapore of petroleum products owned by foreign companies and processed by oil refineries in Singapore.
iv. Local 3rd Party
The export from Singapore of petroleum owned by local companies and processed by oil refineries in Singapore.
2. Licensing, Controls and Quotas
Majority of the goods can be exported from Singapore without any restrictions. However, export of certain goods like textiles to specific countries like Canada are subject to quantitative restrictions. Certain goods like granite require export licensing while some other goods like timber fall under export control.
3. Export Requirements
For exports from Singapore an exporter needs a Certificate of Origin (CO) for the goods to be exported. A CO is a document that certifies the country of origin of goods to be exported and is a mandatory requirement to establish legitimacy of the exports.
There are two types of Ordinary COs which may be used for export of "Singapore made products" to other countries that do not qualify a product for any preferential treatment. There are four other certificates issued under schemes of preferences like GSP, APTA, CP and AFTA, which allow a product to enjoy tariff reduction or exemption when they are exported to countries extending these privileges. Singapore exporters can take advantage of the following schemes:
* The Generalised System of Preference (GSP) which offers preferential tariff (partial or full exemption) for eligible products exported from the developing countries (or beneficiary countries) to the developed countries (or donor countries).
* Asean Preferential Trading Arrangements (APTA) which offers tariff concessions between 25 to 50 % of the existing rates for eligible products exported from Singapore to any of the Asean countries.
* Commonwealth Preference (CP) which applies to claims for preferential import duty on products imported into Mauritius and Seychelles, which are manufactured in Singapore and meet the CP requirements.
* Common Effective Preferential Tariff (CEPT) Scheme for the Asean Free Trade Area (AFTA) will reduce intra-ASEAN tariffs on all manufactured products including capital goods and processed agricultural products by 1 Jan 2003.
Thus, there are 6 types of Certificates of Origin that an exporter can apply for depending on the nature of the products being exported.
S/N Types of CO Use Authorities
1. Ordinary CO - To certify the country of Export Certification
origin of goods Unit (TDB)/
Authorised Chambers
of Commerce and
Associations
2. Ordinary CO for - To certify the country of Export Certification
textile origin of goods Unit (TDB)
products
exported to the - To support claim that the
EEC only textile items are exported to
the EEC within the quota
available
3. Commonwealth - To certify the country of Export Certification
Preference origin of goods Unit (TDB)/
Certificate Authorised Chambers
(CP) - To support preferential of Commerce and
tariff entry into Mauritius Associations
and Seychelles
4. Generalised - To certify the country of Export Certification
System of origin of goods Unit (TDB)/ Import
Preferences and Export Office at
(GSP) - To support claim for Changi Cargo Complex
preferential tariff entry into (for aquarium fish
the countries under the and fresh orchids)
Generalised System of
Preference (GSP)
5. ASEAN - To certify the country of Export Certification
Preferential origin of goods Unit (TDB)
Tariff
Arrangements - To support claim for
(APTA) preferential tariff entry into
ASEAN member states
6. Common - To certify the "ASEAN Export Certification
Effective Cumulative Content" of goods Unit (TDB)
Preferential
Tariff (CEPT)
Scheme for
(AFTA)
It is necessary to obtain an export permit before exporting or re-exporting goods from Singapore. The validity of the permit is for one month from the date of approval. To obtain the permit completed `Singapore Outward Declaration Form' must be submitted to the I&E Office for endorsement. For controlled items, however, the endorsement from the relevant controlling authority must be obtained before sending the Declaration Form to the I&E Office for processing and approval. Once endorsed by the I&E Office, the original copy of the Declaration Form can be handed over to the carrier's or cargo agent.
4. TradeNet
It is a nation-wide Electronic Data Interchange (EDI) System which allows various parties from the public and the private sectors to exchange structured trade related information electronically.
Various government agencies involved with control of the import, export and transhipment of goods use the system for the exchange of trade and shipping information with the private sector. The major users of TradeNet are the Singapore Trade Development Board (STDB), the Customs & Excise (C&E) Department and Port of Singapore Authority (PSA).
TradeNet by integrating the import, export and transhipment documentation processing procedures has helped reduce the cost and turnaround time for the preparation, submission and the clearance of cargo by the relevant authorities. Once the declaration is approved, a permit message is returned electronically to the sender.
TradeNet offers the following facilities to traders:
* trade documents can be sent directly to government agencies and departments for processing
* business documents can be exchanged between trading partners
* amendments to export permits for most items can be made by traders
* cancellations of import and export permits for air and sea consignments can also be made by traders
Except for items that cannot be declared through TradeNet, importers and exporters who trade with West Malaysia are required to apply for the Import & Export Permits through TradeNet. Even for transit trade with West Malaysia, the declarant must submit an Import Permit for goods imported into Singapore in transit from West Malaysia and an Export Permit for goods exported from Singapore in transit to West Malaysia through TradeNet. For items that cannot be declared through TradeNet, declaration must be made manually to the Imports and Exports (I&E) offices of STDB at World Trade Centre or Changi Airfreight Centre.
B. TARIFF SCHEDULE
There are no export duties on goods from Singapore. All exports of goods are zero-rated as far as Goods and Services Tax (GST) is concerned. For export of services also zero-rating is applied and it includes international procurement activities wherein goods are sourced from one foreign supplier for another foreign buyer without the goods passing through Singapore.
Only a taxable person can reclaim the GST paid as input tax on goods which are subsequently exported by him. A GST outward permit is required to substantiate zero-rated export before shipment in the following circumstances:
* removal of dutiable goods from warehouse for export
* removal of non-dutiable goods under the Bonded Warehouse Scheme and Major Exporters Scheme for export
* removal of goods for export which earlier have been imported temporarily for exhibitions, repairs, etc
* export of goods for repair abroad which will be re-imported after completion of repair
* export of goods by taxable persons for the purpose of claiming zero-rating
The goods and the covering GST outward permit must be produced to the Customs at the exit point for verification. A GST outward permit is not required for any export which is not zero-rated.
CHAPTER 4
INVESTING IN SINGAPORE
With a limited indigenous market insufficient to generate investment opportunities, Singapore has long recognised the importance of foreign investments for its economic growth. Over the years, due its open-door policy Singapore has attracted a host of industries setting the pace for rapid industrialisation. The emphasis has shifted in the last decade to creating a higher value-added industrial base requiring higher skills and technology inputs. The impact of this policy direction has led to an increase in electrical and electronic equipment industries, aviation industry, bio-technology and bio-engineering industries and optical and precision engineering industries.
A. PRIORITY INDUSTRIES AND AREAS
Government has consistently welcomed and encouraged industries to sustain and improve their competitive advantage by offering them support in various forms. Although there are no special areas for priority development, certain locations have been allocated to specific industries to enable gradual integration of operations within the industries and bring about economies of scale. Jurong Town Corporation (JTC) is the apex body entrusted with development and maintenance of industrial estates in Singapore. Some of the areas like Sungei Kadut and Kranji estates have been developed into a base for wood-working industries, Loyang has been developed as engineering and manufacturing base supporting offshore oil exploration and production activities, Southern islands have been developed as petrochemical manufacturing and distribution centre and Seletar estate as aviation manufacturing centre.
B. RESERVED ACTIVITIES
There is freedom of private enterprise in Singapore, however, government exercises controls in certain areas. Certain industries which fall under essential category like utilities, telecommunications and airline, are closed to private enterprise. Government also has major interests in key industries like banking, shipbuilding, tourism and trading.
Under the Control of Manufacture Act, the manufacture and sale of certain goods is prohibited unless the manufacturer is registered under the Act. The list of which come under the purview of the Act are:
* Airconditioners
* Beer and Stout
* Cigars
* Cigarettes
* Drawn Steel products
* Fire crackers
* Matches
* Pig Iron/ Sponge Iron
* Refrigerators
* Rolled Steel products
* Steel ingots/ billets/ blooms/ slabs
C. INVESTMENT INCENTIVES
Government has steered industrial growth in Singapore through incentives. Incentives have been used both to help new ventures overcome initial start up hurdles and to enable existing industries to upgrade. Economic Development Board (EDB) is responsible for the industrial and commercial development. It administers various incentives under the Economic Expansion Incentives (Relief from Income Tax) Act, Operational Headquarters Incentive and Double Deduction Incentive for R&D Expenses, Local Enterprise Technical Assistance Scheme (LETAS), Product Development Assistance Scheme (PDAS), Local Enterprise Finance Scheme.
1. Guarantees and Protection Schemes
Singapore provides various guarantees and protections to the investors to encourage foreign investments into the country.
i. Guarantee against Nationalisation and Expropriation
Foreign investors are offered protection under the investment promotion and protection agreements. Under these agreements investments by nationals or companies of both contracting parties in each other's country are protected for an initial period of 15 years against war and non-commercial risks like expropriation and nationalisation. In case of non-commercial risks, the foreign investor would be compensated in terms of value of the property immediately before expropriation or nationalisation.
Singapore has signed joint investment promotion and protection agreements which are presently in force with the following organisations/ countries:
* Organisations - ASEAN, Belgo-Luxembourg Economic Union
* Countries - Canada, China, France, Germany, Netherlands, Poland, Riau Archipelago, Sri Lanka, Switzerland, Taiwan, U K, U S A, Vietnam
ii. Remittance and Repatriation facilities
There are no restrictions on remittance of interest earned by non-residents on accounts with Singapore banks. The interest is also not liable to Singapore tax provided the investor is non-resident for tax purposes. Repatriation of profits are freely allowed for the foreign investors at the exchange rate prevailing at the time of remission or repatriation.
Singapore has double taxation relief arrangements eliminating or minimising double taxation on same income earned by foreign investor with 28 countries which are as follows:
* Asia - Australia, Malaysia, Japan, New Zealand, Philippines, Sri Lanka, South Korea, Bangladesh, India, China, Indonesia, Papua New Guinea, Pakistan, Thailand, Taiwan, Israel.
* Europe - U K, Belgium, Germany, France, Switzerland, Denmark, Sweden, Norway, Netherlands, Finland, Italy.
* America - Canada
iii. Trademark and Patent Protection
Singapore has a Trademarks Act which allows foreign companies to apply for registration of their Trademarks with the Registry of Trademarks and Patents. The period of validity for a Trademark is ten years from registration and may be renewed. At present original patent registration is not possible in Singapore.
2. Tax Incentives
In order to encourage industries charter new territories and gear up to the world markets, government provides various tax incentives. Some of the main tax incentive schemes available to industries are as follows:
i. Pioneer Industries Incentive
An enterprise can qualify for pioneer status if it is in an industry which is either non-existent or not large enough for the needs of the country and has a positive growth potential. A Pioneer industry is given a tax holiday for a period ranging from 5 to 10 years and in addition, exemption of 27% corporate tax on profits is also allowed.
ii. Post-Pioneer Incentive
An enterprise providing pioneer goods or services to domestic or export markets on or after Apr 86 qualifies for post-pioneer status and is eligible for a concessionary corporate tax of 15% for up to 10 years.
iii. Expansion Incentive
An enterprise intending to expand its manufacturing or service base by investing in capital is eligible for expansion incentive and qualifies for exemption of 27% corporate tax on profits in excess of pre-expansion level and tax relief of upto 5 years.
iv. Investment Allowances Incentive
An enterprise intending to carry out investment in building or equipment for use in Singapore to improve its efficiency qualifies for investment allowances incentive and is exempted of taxable income of a specific amount (up to 50%) of new fixed investment incurred within a specified period of 5 years normally.
v. Approved Foreign Loan Incentive
Companies under the approved foreign loan scheme are granted exemption of withholding tax on interest.
vi. Venture Capital Incentive
A company resident in Singapore may apply for approval as a venture company, technology investment company or overseas investment company and be eligible to set off its losses incurred from sale of shares (upto 100% of equity invested) against the investor's taxable income.
vii. International Direct Investment Incentive
A company investing in overseas ventures is eligible to offset losses incurred (upto 100% of equity invested) from sale of shares or liquidation of the overseas company against its taxable income.
viii. Export of Services
An enterprise providing specific services for overseas projects like consultancy, technical, data processing etc may apply for approval as a export service company or firm and be eligible for exemption of 90% of the qualifying export income. The tax relief available is 5 years which may be extended further.
ix. Double Deduction for R&D Expenses
An individual can claim double deductions for expenditure incurred on research and development for certain specified services like computer services, agrotechnology services, medical services etc.
3. Other Assistance Schemes
i. Product Development Assistance Scheme (PDAS)
PDAS is administered by EDB and offers financial assistance in terms of cash grants to local companies to encourage new product development, improvement of existing products and processes. A grant of 50% of approved direct development costs with no ceiling on the maximum amount.
ii. Local Enterprise Finance Scheme (LEFS)
LEFS is a administered by EDB and provides assistance for small and medium scale local enterprises strengthen and expand their operations. Loans are offered for factory financing, machinery financing and for short term under the scheme.
iii. Local Enterprise Technical Assistance Scheme (LETAS)
LETAS is administered by EDB and assists small and medium scale local enterprises to modernise and improve their operations with foreign expertise. EDB reimburses 70% of the cost of hiring the services of foreign expert for approved short-term assignment.
iv. Business Development Scheme (BDS)
BDS is available to local companies to help them meet the cost of pursuing international opportunities. Grants are awarded to cover the costs of business development activities like studies and visits made to explore new markets. 50 - 70% of the costs of the various activities are covered by EDB under the scheme.
v. Double Tax Deduction Scheme
The scheme administered by STDB is designed to help local companies promote the export of indigenously produced goods and services. The scheme entitles companies to deduct twice the eligible expenses, incurred on account of specific activities, from their taxable income. Some of the activities specified are participation in approved local and overseas trade fairs, setting up of overseas marketing offices and printing of publicity materials.
vi. Market & Investment Development Assistance Scheme (MIDAS)
MIDAS is administered by STDB and provides various types of financial assistance to local companies for market development activities.
D. ADMINISTRATIVE PROCEDURES
The Ministry of Trade and Industry is vested with the responsibility of directing the industrial growth of Singapore. All matters concerning trade and development come under its purview. It is assisted in its efforts by two statutory bodies - Economic Development Board (EDB) and Singapore Trade Development Board (STDB).
1. Economic Development Board
Established in 1961, the Economic and Development Board (EDB) is a statutory body responsible for industrial developmental planning and promotion in the manufacturing and services sectors in Singapore. EDB provides a one-stop service to assist investors in procurement of land, financing, manpower. It also helps investors locate suppliers, sub-contractors and joint-venture partners.
There are five operational divisions of EDB helping it in its efforts in formulating and implementing industrial strategies for economic progress of Singapore. The divisions are:
* Industry Development Division
* Services Development Division
* Enterprise Development Division
* International Manpower Division
* Strategic Business Units
2. Singapore Trade and Development Board
The Singapore Trade and Development Board was established in 1983 to provide a direction to the country's international trade and promote it as an international trading centre. It therefore offers assistance to both local and foreign investors to develop Singapore as base for trading activities like entrepot trade, third-country trade, countertrade, regional warehousing and distribution.
The Board comprises five operational divisions which help it in its efforts and they are:
* Trade Development Division
* International Operations Division
* Trade Promotion Division
* Trade Services Division
STDB disseminates trade investment and business information through its computer linkages and publications. Investors can avail of the several facilities like Singapore Trade Connection CD-ROM, Globalink, Trade & Investment Enquiry Services, Trade & Investment Guide Series, Market Information Series, Country Profiles, Tradespur, Trade Contacts, Singapore Trade News etc.
CHAPTER 5
TRADE & INVESTMENT INFORMATION SERVICES
A list of various government and other organisations which may be of assistance for people setting up business in Singapore is given here. An attempt has been made to give all the major organisations with whom businesses have dealings but the listing may not be exhaustive. Clarification or further information on the procedures and requirements pertaining to the individual organisation may be obtained from the respective organisations.
A. GOVERNMENT AGENCIES
S/N Name of the Address Contact
Organisation Number
Telephone Fax
1. Ministry of Public Transport Council, 1 273 3088 278 7096
Communications Maritime Square, Telok
Blangah Road, #10-23 World
Trade Centre, Singapore 0409
2. Ministry of Child Care Branch, 512 258 5812
Community Thomson Road, 10th Storey,
Development MCD Building, Singapore 1129
3. Ministry of Private School Unit, Kay 473 9111 475 6128
Education Siang Road, 6th Storey, Annex
Building, Singapore 1024
4. Ministry of Food Control Department/ 732 7733 731 9843
Environment Pollution Control Department/ 731 9651
Environmental Health 731 9749
Department, Environment
Building, 40 Scotts Road,
Singapore 0922
5. Ministry of Customs & Excise Department, 272 8222 277 9090
Finance 1 Maritime Square, Telok
Blangah Road, #03-01 &
#10-01, World Trade Centre,
Singapore 0409
330 4714 330 4604
Inland Revenue Department, 330 4716
Valuation & Assessment
Division, 60 Albert Complex,
Singapore 0718
225 5577 229 9491
Monetary Authority of
Singapore, Banking &
Financial Institutions Group,
10 Shenton Way, MAS Building,
Singapore 0207
Ministry of Registration Section, 223 7777 224 1677
6. Health 16 College Road, College of
Medicine Building, Singapore
0316
Pharmaceutical Department, 320 9116 224 2352
Drug Administration Division, 320 9126
16A College Road, Tan Teck
Guan Building, Singapore 0316
229 0702 226 2353
Department of Scientific
Services,
Radiation Protection
Inspectorate, National Blood
Centre, Outram Road,
Singapore 0316
7. Ministry of Home Immigration Department, 532 2877 530 1840
Affairs 95 South Bridge Road, 7th &
8th Storeys, Pidemco Centre,
Singapore 0105
8. Ministry of Board of Film Censors, 140 338 0000 339 2264
Information & Hill Street, 4th Storey, 339 0619
the Arts Block G, Hill Street
Building, Singapore 0617
270 7988 375 7878
Censorship Section
(Publications/ Audio-visual
materials),
PSA Building, 460 Alexandra
Road, #02-07, Singapore 0511
9. Ministry of Department of Industrial 534 1511 539 5261
Labour Safety/ 539 5344
Work Permit & Employment
Department,
18 Havelock Road, #03-02,
Singapore 0105
10. Ministry of Law Registry of Moneylenders and 336 1203 336 6165
Pawnbrokers,
1 Colombo Court, #04-17,
Singapore 0617
11. Ministry of Primary Production 222 1111 220 6068
National Department,
Development #02-00 & #03-00, MND Complex,
5 Maxwell Road, Singapore
0106
12. Ministry of Singapore Tourist Promotion 339 6622 339 9423
Trade & Board, Industry Services
Development Department, 250 North Bridge
Road, #36-04, Raffles City
Tower, Singapore 0617
Singapore Trade Development 271 9388 274 0770
Board (Head Office), 278 2518
1 Maritime Square, #10-40 271 0985
(Lobby D), Telok Blangah
Road, World Trade Centre,
Singapore 0409
Singapore Trade Development 271 9388 272 4720
Board (I&E Office),
1 Maritime Square, #03-01A
(Lobby C or D), Telok Blangah
Road, World Trade Centre,
Singapore 0409
Singapore Trade Development 542 7179 542 5385
Board (I&E Office),
Changi Airfreight Centre,
115 Airport Road, #04-18
Cargo Agents Building C,
Singapore 1781
Economic Development Board 336 2288 339 6077
(Head Office), 250 North
Bridge Road, #24-00 Raffles
City Tower, Singapore 0617
13. Registry of 10 Anson Road, #05-01/15, 227 8551 225 1676
Companies & International Plaza,
Businesses Singapore 0207
14. Registry of 51 Bras Basah Road, #04-01 330 2700 339 0252
Trade Marks & Plaza By The Park, Singapore
Patents 0718
15. Public Utilities 111 Somerset Road, #16-05, 731 3105 731 3011
Board PUB Building, Singapore 0923
16. Telecommunication Licensing Department, 4-8 530 6600 538 1150
Authority of George Street, #04-00 City
Singapore Exchange, Singapore 0104
B. CHAMBERS OF COMMERCE & INDUSTRY
Singapore Federation of Chambers of Commerce & Industry (SFCCI) is the apex body which has five constituent members. The details of the various members are as follows:
S/N Name of the Address Contact
Organisation Number
Telephone Fax
1. Singapore 47 Hill Street, #03-01 338 9761 339 5630
Federation of Chinese Chamber of
Chambers of Commerce & Industry
Commerce & Building, Singapore 0617
Industry (SFCCI)
2. Singapore Chinese 47 Hill Street, #09-00 337 8381 339 0605
Chamber of Singapore Chinese Chamber
Commerce & of Commerce & Industry
Industry (SCCCI) Building, Singapore 0617
3. Singapore Indian 101 Cecil Street, #23-01 222 2855 223 1707
Chamber of Tong Eng Building,
Commerce & Singapore 0106
Industry (SICCI)
4. Singapore 6 Raffles Quay, #10-01 224 1255 224 2785
International John Hancock Tower,
Chamber of Singapore 0104
Commerce (SICC)
5. Singapore Malay 10 Anson Road, #24-07 221 1066 223 5811
Chamber of International Plaza,
Commerce (SMCC) Singapore 0207
6. Singapore 20 Orchard Road, SMA 338 8787 338 3358
Manufacturers House,Singapore 0923
Association (SMA)
C. OVERSEAS SOURCES OF TRADE INFORMATION
S/N Name of the Address Contact
Organisation Number
Telephone Fax
Australia
1.
Singapore Trade c/o Austrident Shipping 251 4488 251 6818
Development Board Agency Pty Ltd, Level 2,
NOL Point,
62 Pitt Street, Sydney
2000 NSW
Belgium
2.
Singapore Trade Embassy of the Republic of 660 2979 675 0905
Development Board Singapore - Belgium, 198 675 0321
Avenue Franklin Roosevelt,
1050 Brussels
China
3. Singapore Trade Embassy of the Republic of 532 3926 532 4866
Development Board Singapore - Beijing, 1 Xiu 532 3143
Shui Bei Jie,
Jianguomenwai, Beijing 100
600
4. Singapore Trade Consulate of the Republic 437 0776 433 4150
Development Board of Singapore - China, 400 433 1362
Wulumuqi Zhong Lu,
Shanghai 200 031
Dubai
5. Singapore Trade c/o Jebeerup & Co., 22 9789 23 23 1515
Development Board Abdulla Mohd Ali Badri & 6957
Sons Building, Nasser
Square, P.O. Box 333 DIERA
Fiji
6. Singapore Trade c/o Yee Morgan & Co Ltd, 38 3788 38 37 0354
Development Board Suite A10 - A12, Raiwaqa 3663
Development Building,
Grantham Road, GPO Box
1180, Suva
France
7. Singapore Trade 20 Bis Avenue Bourgain, 4638 2424 4108 9466
Development Board 92130 Issy Les Moullneaux,
Paris
Economic 22 Avenue Victor Hugo, 4500 1183 4500 6137
Development Board 75116 Paris
Germany
8. Singapore Trade c/o Internationales 49 8938 49 49 0573
Development Board Sehiffahrtekonter (ISKON) 8939
- GmbH, Kalseratrasse 42,
40420 Dusseldorf, P O Box
320526
8. Singapore Trade Goethestrasse 5, 60313 28 1743 28 5039
Development Board Frankfurt am Main
Economic Untermainanlage 7, 60329 23 3838 252 882
Development Board Frankfurt/ Main
Hong Kong
9. Singapore Trade Singapore Commission - 528 6185 861 0048
Development Board Hong Kong, Units 901-2,
9th Floor
Admiralty Centre, Tower 1
18 Harcourt Road
810 0036 521 5732
10. Economic 3010-3012, One Pacific
Development Board Place, 88 Queensway
Hungary
11. Singapore Trade 1016 Budapest, Hegyalja ut 202 5133 202 3652
Development Board 7/13, Alag Buda Centre, 202 5527
Budapest 202 5209
India
12. Singapore Trade 88A Jolly Maker Chamber 204 0732 204 5051
Development Board II,
Nariman Point,
Bombay 400 021,
Maharashtra
13. Singapore Trade Singapore High Commission 688 5659 688 6798
Development Board - India, E-6 Chandragupta 688 6506
Marg, Chanakyapuri, New
Delhi
110 021
Indonesia
14. Singapore Trade c/o Embassy of the 522 9274 520 1488
Development Board/ Republic of Singapore - 520 1477 520 1476
Economic Indonesia, Block X/4 Kav 520 1489
Development Board No 2, Jalan H R Rasuna
Said, Kuningan, Jakarta
12950
Italy
15. Economic Via S Pietro all'Orto, 17 799 277 780 023
Development Board 20121 Milano
Japan
16. Singapore Trade Consulate-General of the 262 2662 262 2664
Development Board/ Republic of Singapore - 261 5131 261 0338
Japan (Osaka), 14th Floor 261 5132
Economic Osaka Kokusai Building,
Development Board 3-13 Azuchi-machi,
2-chome, Chuo-Ku, Osaka
541
17. Singapore Trade Embassy of the Republic of 3584 6032 3584 6135
Development Board Singapore - Japan (Tokyo),
12-3 Ropppongi 5-chome,
Minato-Ku, Tokyo 106
Economic 8th Floor, Imperial Tower, 3501 6041 3501 6060
Development Board 1-1 Uchisaiwai-cho
1-chome, Chiyoda-ku, Tokyo
100
Korea
18. Singapore Trade Suite #1306,Sam Ku 754 8404 754 7017
Development Board Building, 754 8405
70 Sokong Dong, Chung-Ku
Seoul
19. Singapore Trade c/o Ashin Shipping Co Ltd, 757 6944 757 4919
Development Board Marine Center 10th Floor, 753 1211
51 Sokong-dong, Chung-Ku,
Seoul
Netherlands
20. Singapore Trade c/o Consulate - General of 404 2111 404 2460
Development Board the Republic of Singapore
-Rotterdam, Rotterdam
Plaza, Weena 670, 3012 CN,
Rotterdam
Saudi Arabia
21. Singapore Trade Consulate of the Republic 643 5677 643 0750
Development Board of Singapore - Jeddah, 643 7267
Suite 1021, 10th Floor,
Corniche Commercial
Centre, P O Box 18294,
Jeddah 21415
Sri Lanka
22. Singapore Trade c/o Lanka Trident 43 9226 43 43 9230
Development Board Shipping, Agencies Pte 9227 43
Ltd, 46/12 Sayuru Sevana 9228
Building, Navam Mawattha,
Colombo
Sweden
23. Singapore Trade c/o Consulate-General of 660 0135 662 2035
Development Board the Republic of Singapore
- Sweden, Storgatan 42,
11455 Stockholm
Economic Storgatan 42, 11455 663 7488 782 3951
Development Board Stockholm
Switzerland
24.
Singapore Trade Permanent Mission of 344 7330 345 7910
Development Board Singapore to the United 344 7339
Nations - Geneva,
6 bis Rue
Antoine-Carteret, 1202
Geneva
Taiwan
25. Singapore Trade c/o Singapore Trade Office 721 0664 781 7648
Development Board/ in Taipei, 9th Floor, Tfit 772 1940
Tower, 85 Jen Ai Road,
Economic Section 4, Taipei
Development Board
UK
26. Singapore Trade Singapore High Commission 222 0770 976 8598
Development Board - The United Kingdom,
Suite 30 Westminister
Palace Gardens,
1-7 Artillery Row, London
SW1P 1RJ
Economic 839 6688 839 6162
Development Board Norfolk House, 30 Charles
II Street, London SW1Y 4AE
USA
27. Singapore Trade Los Angeles World Trade 617 7358 617 7367
Development Board Centre, 350 South Figueroa 617 7359
Street, Suite 264, Los 617 7397
Angeles, 617 7398
California 90071
28. Economic 553 0199 557 1044
Development Board Suite 400, 2049 Century
Park East, Los Angeles,
California 90067-3105
29. Economic 591 9102 591 1328
Development Board 210 Twin Dolphin Drive,
Redwood City, San
Francisco, California
94065-1402
30. Economic Suite 970, Two Prudential 565 1100 565 1994
Development Board Plaza, 180 North Stetson
Avenue, Chicago, Illinois
60601-6712
31. Economic 8th Floor, One 261 9981 261 9983
Development Board International Place,
Boston, MA 02110-2600
32. Singapore Trade 745 Fifth Avenue, Suite 421 2207 888 2897
Development Board 1601,
New York 10151
Economic 421 2200 421 2206
Development Board 55 East 59th Street, New
York 10022-1112
33. Singapore Trade Embassy of the Republic of 537 3100 537 0876
Development Board Singapore - USA, 3501
International Place, NW,
Washington DC 20008
Economic Suite 504, 1350 223 2571 223 2572
Development Board Connecticut Avenue NW, 223 2570
Washington DC 20036-1701
Vietnam
34. Singapore Trade Consulate of the Republic 22 5173 22 25 1600
Development Board of Singapore - Ho Chi Minh 5174
City,
No.5 Phung Khac Khoan
Street,
Dial. 1 Ho Chi Minh City
CHAPTER 6
TRADE STATISTICS
Bestowed with a natural harbour, located strategically on major international trade routes, Singapore has become an important trade destination. Its economy has continued to flourish supporting a diverse range of activities from production to distribution.
Singapore is based on free market economy where movement of capital, manpower and goods are freely allowed. There is no restriction on foreign ownership of businesses, import of capital and repatriation of profits. The conducive economic environment has encouraged the flow of foreign investments into Singapore making it a base for Asia-Pacific operations for a number of companies. The foreign corporations have also in turn helped open global markets for Singapore. Trade in the ASEAN region and the rest of the world has been given further impetus through government initiatives.
A. KEY ECONOMIC INDICATORS
Some of the key indicators of the Singapore economy as of 1994 are:
S/N Indicator Unit Value
1. Population million 2.9
2. Land area square km 633
3. Gross National Product
At current market prices $ million 104,879.6
Per capita $ 31,181.7
4. Gross Domestic Product
At current market prices $ million 105,313.2
At 1985 market prices $ million 78,765.4
5. Trade at Current Prices S$ 303,723.0
million
Exports S$ 147,327
million
Imports S$ 156,395
million
Domestic Exports S$ 88,533.3
million
Re-exports S$ 58,793.9
million
6. Gross National Savings S$ 52,178.3
million
7. Exchange rate per US$ per US$ 1.5274
8. Measures of Inflation (Annual Change)
Consumer Price Index % 3.6
Domestic Supply Price Index % -2.0
GDP Deflator % 3.6
B. EXPORTS
Singapore exports which have grown over the years span a range of products and markets. In the year 1994, products under 97 commodity divisions were exported to 128 countries from Singapore. The value of exports increased by 23 % in 1994 over 1993 to $ 147,327 million. The combined share of Singapore's top ten trading partners was over 75 % of its total exports in 1994. The top ten export markets accounted for almost 75 % of total exports of Singapore in 1994.
SINGAPORE'S TOP TEN EXPORT MARKETS
(Unit:S$'000)
TOTAL
EXPORTS FOB
S/N Country
1993 1994 94 over 93
Value ($) % Value ($) % % Change
1. Malaysia 16,942,164 14.2 29,089,492 19.7 71.7
2. USA 24,291,751 20.3 27,637,016 18.8 13.8
3. Hong Kong 10,363,886 8.7 12,814,240 8.7 23.6
4. Japan 8,921,340 7.5 10,342,561 7.0 15.9
5. Thailand 6,804,936 5.7 8,186,289 5.6 20.3
6. Taiwan 4,641,381 3.9 5,939,544 4.0 28.0
7. Germany 4,746,730 4.0 5,229,837 3.6 10.2
8. United Kingdom 3,575,272 3.0 3,985,050 2.7 11.5
9. Netherlands 3,100,082 2.6 3,930,880 2.7 26.8
10. Korea 3,325,699 2.8 3,870,860 2.6 16.4
Total Top Ten 86,713,241 72.6 111,025,769 75.4 28.0
Countries
Total Singapore 119,473,446 100.0 147,327,198 100.0 23.3
Exports
C. IMPORTS
Singapore imports which have grown over the years span a range of products sourced from various countries. In the year 1994, products under 97 commodity divisions were imported from 128 countries by Singapore. The total value of imports increased by about 14 % to $156,395 million in 1994 over 1993. The top ten import sources accounted for over 79 % of the total imports in 1994.
SINGAPORE'S TOP TEN IMPORT SOURCES
(Unit:S$'000)
TOTAL
IMPORTS CIF
S/N Country
1993 1994 94 over 93
Value ($) % Value ($) % % Change
1. Japan 30,110,938 21.9 34,422,087 22.0 14.3
2. Malaysia 22,669,552 16.5 25,599,966 16.4 12.9
3. USA 22,359,794 16.3 23,901,854 15.3 6.9
4. Thailand 5,676,197 4.1 7,470,802 4.8 31.6
5. Taiwan 5,457,499 4.0 6,018,219 3.9 10.3
6. Korea 4,428,498 3.2 5,985,541 3.8 35.2
7. Saudi Arabia 5,359,150 3.9 5,607,028 3.6 4.6
8. Hong Kong 4,338,847 3.2 5,285,431 3.4 21.8
9. Germany 4,202,958 3.1 5,269,578 3.4 25.4
10. China 3,877,136 2.8 4,411,992 2.8 13.8
Total Top Ten 108,480,569 78.8 123,972,498 79.3 14.3
Countries
Total Singapore 137,602,782 100.0 156,395,793 100.0 13.7
Imports