The Republic of Singapore, a member of the World Trade Organisation (WTO) since 1995, has an ethnically diverse population of 4.84 million living in an area of 272 square miles. It is the United Kingdom’s biggest trading partner in Southeast Asia. The UK is also Singapore’s largest investor with around 700 businesses already functioning in the country.
World Bank – Doing Business in Singapore
Singapore is rated number one (out of 183 economies) of the World Bank’s “Ease of Doing Business” table. Other ratings include:
- Trading across borders – number one
- Dealing with construction permits – number two
- Getting credit – number six
- Paying taxes – number four
- Starting a business – number four
These figures are drawn from World Bank publication, Singapore: Doing Business 2011, which presents a detailed statistical analysis of a range of hurdles which companies must overcome before getting established in Singapore. It is essential reading for all British businesses looking for a foothold in the country.
International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn said in a recent visit to Singapore (1 February 2011) that Asia was one of the, “Leading economic regions of the world.” Singapore is an important player in the region, a “Model of economic development” said the UK Foreign and Commonwealth Office (FCO) and as such has much to offer UK trade and investment companies.
Although Singapore was one of the first Asian countries to fall into recession in 2008, a subsequent government recovery package worth S$20.5 billion, together with other economic stimuli meant a 2010 growth forecast of around 4.5 - 6%.
There are few better markets for UK exporters and investors, who want a presence in Southeast Asia, than Singapore. Singapore, an important regional hub, is ranked number 18 in the list of the UK’s top trading partners (Exports General Trade) with an export value of £858 (millions) in the 3rd quarter of 2010.
UK Trade and Investment (UKTI) has identified the following key market sectors as opportunities for British business:
- Advanced engineering
- Biomedical sciences
- Creative industries
- Defence and security
- Education and training
- ICT
- Infrastructure development
- Financial services
- Oil and gas
- Water
A brief look at the Singapore 2009/2010 Economic Development Board (EDB) report provides a range of encouraging data to support the key sector investment advice issued by UKTI. While it is not the intention of this writer to give a detailed analysis of the sectors, it is worth briefly referring to the report overview, which said. “In 2011, EDB will seek to capitalise on the momentum of investor interest and build on the ‘Home’ strategy successes. We will identify and build capabilities to reinforce Singapore’s Global-Asia positioning…”
Support for UK Business – the Role of UK Trade and Investment
The role of UKTI is multi-faceted, with support available to UK business in a number of ways: events where business leaders can meet a range of country experts, online guidance and through UKTI’s network of locally based experts who can provide practical advice for UK exporters and investors who want to do business in Singapore
In a statement introducing the Singapore Economic Development Board’s annual report 2008/09, the outgoing chairman, Lim Siong Guan said, “The rising importance of markets in Asia – not just China, not just India, but also ASEAN [Association of Southeast Asian Nations], will increasingly shape global trade and investment flows… Singapore offers the presence in Asia, the connectivity to Asia and the marketplace of thought and perspective… Singapore can be the erstwhile [second] home for global business.”
Although written some time ago, these sentiments still hold true today and British business with an eye to expansion in ASEAN Southeast Asia should take note.
ASEAN member states are:
Sources:
International Monetary Fund (press release) Managing Director Dominique Strauss-Kahn in Singapore, 1 February 2011
World Bank, Singapore: Doing Business 2011, site accessed 4 February 2011
EDB Singapore, Annual Report 2009/2010, site accessed 4 February 2011
EDB Singapore, Annual Report 2008/2009, site accessed 4 February 2011
EDB Singapore, Business Sentiments for April-September 2010, site accessed 4 February 2011
UK Trade and Investment, Singapore, site accessed 4 February 2011
HM Revenue and Customs: Overseas Trade Statistics, site accessed 4 February 2011
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