World Country Guide

Business Profile

Economy
Singapore’s economy relies on entrepôt trade, shipbuilding and repairing, oil refining, electronics and information technology, banking and finance and, to a lesser extent, tourism. From the late 1970s, the Government promoted export-oriented and service industries with the intention of making Singapore a regional economic hub. Singapore also derived some benefit from the decision of some companies to relocate following the reversion of Hong Kong to Chinese administration in 1997. High-technology manufacturing, particularly computer and telecommunications equipment, and financial services, mainly banking and insurance, form the kernel of the economy. There is also an important oil-refining industry. The newest addition to the economic portfolio is pharmaceuticals: on top of that, the government is promoting Singapore as a centre for biotechnology, especially for stem cell research which has proved so controversial elsewhere. The importance of trade to the economy cannot be overstated: the total value of Singapore’s trade is almost three times its GDP (compared with 17 per cent of GDP in the case of Japan). Vibrant economic activity more than compensates for Singapore’s lack of natural resources. There is a little agriculture, with the cultivation of plants and vegetables, and some fishing; however, most foodstuffs and raw materials have to be imported. Singapore’s only significant natural resource is its superb natural harbour, which is the busiest in the world after Rotterdam. This accounts in part for the high level of Singapore’s re-export trade, which accounts for almost half of all trade.
Singapore was less affected than many of its neighbours by the 1997 Asian financial crisis, owing to sound financial management, high savings and investment rates, and massive foreign exchange reserves. However, shortly afterwards the territory was plunged into its worst economic recession for 30 years, largely because of a sudden collapse of international demand in key industries, especially electronics. At the lowest point, Singapore’s economy was contracting at an unprecedented rate of 6 per cent per annum. Industrial production fell by over 20 per cent during 2001. GDP growth was a paltry 0.8 per cent in 2003, but that figure rose to a robust 8.6 per cent in 2004. Current inflation is 1.7 per cent. Singapore’s principal trading partners are Japan, Thailand, the USA and Malaysia. Singapore is a member of the Association of South East Asian Nations (ASEAN) and of the Asian Pacific Economic Forum (APEC).

Business
English is widely spoken in business circles. Appointments should be made and punctuality is important. Chinese people should be addressed with their surnames first, while Malays do not have surnames but use the initial of their father’s name before their own. Visiting cards are essential, although it is policy for government officials not to use them. Office hours: Mon-Fri 0900-1300 and 1400-1700, Sat 0900-1300.

Commercial Information
The following organisations can offer advice: Singapore Indian Chamber of Commerce and Industry, 101 Cecil Street, Tong Eng Building, Unit 23-01/04, Singapore 069533 (tel: 6224 6634 or 6222 2855; fax: 6223 1707; e-mail: sicci@sicci.com; website: www.sicci.com); or Singapore International Chamber of Commerce, 10-01 John Hancock Tower, 6 Raffles Quay, Singapore 048580 (tel: 6224 1255; fax: 6224 2785; e-mail: SA@sicc.com.sg; website: www.sicc.com.sg).

Conferences/Conventions
Singapore is the top convention city in Asia and ranks among the top 10 meetings destinations in the world. There are many hotels with extensive conference facilities, including the latest audio-visual equipment, secretarial services, translation and simultaneous interpretation systems, whilst Raffles City, a self-contained convention city, can accommodate up to 6000 delegates under one roof. Other popular venues for larger conventions and exhibitions include Suntec Singapore and Singapore Expo, the country’s latest addition to conference venues. Full information on Singapore as a conference destination can be obtained from the Exhibition & Convention Bureau within the Singapore Tourism Board (see Contact Addresses section). The Bureau is a non-profitmaking organisation with the dual objectives of marketing Singapore as an international exhibition and convention city and of assisting with the planning and staging of individual events.