WELCOME TO SINGAPORE

THE LION CITY

SUBMITTED TO - Dr. PNN IYER

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RECAP
Singapore has a unique position in the global economy and a pivotal role as
a business epicenter in the heart of Asia. The city-state has been consistently
acknowledged as a global business hub one that features developed
infrastructure, political stability, open business policies, a skilled workforce,
the use of English as the main working language and respect for intellectual
property rights.

Singapore has established itself as a reputable financial and regional trading

center. It is the world’s busiest port and a top location for investments in the
Asia Pacific region. Factors such as strategic location, a competitive
workforce, pro-business environment, and forward looking economic
policies have enabled Singapore to be the world’s gateway to Asia.
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INTERNATIONAL BUSINESS IN THE LAST 5

YEARS
2017
In 2017, Singapore launched the regional finance hub ‘Asia’s Infrastructure Exchange

Infrastructure Asia signed two MOUs to foster partnerships to bring about more
infrastructure projects in Asia:

• An MOU with the World Bank Group to leverage each other’s networks and expertise
to drive knowledge building and exchange within Asia. They will also work together
to help Asian countries strengthen capacities for infrastructure project structuring,
financing, implementation and operation.
• An MOU with Singapore Business Federation to
• i) enhance visibility of regional project opportunities for Singapore-based companies
through workshops and marketing initiatives
• ii) market and match Singapore-based companies equipped with relevant technical,
financial and/or professional services solutions to project opportunities.
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INTERNATIONAL BUSINESS IN THE LAST 5

YEARS
2018
Singapore ranked at number 5 in top 20 host economies for
2018-19.

Singapore remained the world’s most investor-friendly

Sugih Energy (Singapore), to operate an oil refinery at the
location in 2014-18. Magapura Mahinda Rajapakse Port.

Greenfield investment - 7,903 Millions of Announced

greenfield FDI projects including an affiliate of Sugih
Energy (Singapore), to operate an oil refinery at the
Magapura Mahinda Rajapakse Port.

Cross-border M&As by region/economy for 2018−2019 -

Sales- 4,206, Purchases- 5,727
Singapore Foreign Investments 2018
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INTERNATIONAL BUSINESS IN THE LAST 5

YEARS
201
9
Recorded a 15 per cent rise in FDI to $92 billion, its highest ever level.
Strong investment in electronics manufacturing, energy, the chemical
industry and services pushed up inflows.

Major investments in 2019 included the expansion by Micron

Technology (United States), gas giant Linde (United Kingdom),
Freshworks (United States), Dyson (United Kingdom) and Bombardier
(Canada), Qualcomm (United States), Softbank (Japan), YY Inc (China). Singapore Foreign Investments 2019

GIC (a sovereign wealth fund in Singapore) acquired the logistics real

estate portfolio of Apollo Global Management (Germany) for $1 billion.

GIC acquired the logistics real estate portfolio of Apollo

Global Management
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INTERNATIONAL BUSINESS IN THE LAST 5

YEARS
2020-21
• Total merchandise trade declined by 5.2% in 2020 to S$969 billion,
mainly due to a decline in oil trade.

• Non-oil domestic exports (NODX) grew by 4.3% in 2020.

• Total services trade declined by 14.3% to reach S$497.1 billion in

2020, after the 5.7% increase in 2019

• Eurasian Economic Union (EAEU) and Singapore, list climate-

resilient development as an area of cooperation.

• At the WTO, Singapore and New Zealand issued a joint declaration

of principles to keep their markets open.

Singapore Foreign Investments 2020-21

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Initiatives for economic treaties

European Union – Singapore Free Trade Agreement (EUSFTA) - 21 Nov 2019
• EU will remove tariffs on 84% of all Singapore products entering the EU.
• Enhanced market access for Asian food products made in Singapore, service
providers, professionals and investors.
• Enhanced access to city-level and municipal-level government procurement (GP)
opportunities.

Sri Lanka - Singapore Free Trade Agreement (SLSFTA)- 1 May 2018

• SLSFTA covers tariff elimination for 80% of all tariff lines through staging periods of up to
15 years.
• Safeguards market access and ensures a more predictable operating environment for service
suppliers.
• Protection for Singapore investors and investments in Sri Lanka.
Turkey – Singapore Free Trade Agreement (TRSFTA)- 1 October 2017
• TRSFTA eliminates tariffs for more than 95% of Singapore’s exports to Turkey.
• Safeguards market access and ensures a more predictable operating
environment for service suppliers.
• Protection for Singapore investors and investments in Turkey.
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Investment freindly environment

• Extensive double tax treaties
Singapore has an extensive network of double tax agreements (DTA) with more than 80
countries across the globe.

• Attractive tax regime

Singapore’s tax system is viewed as “simple and investor friendly”. The highest corporate
tax rate on taxable income is 17%. The tax on capital gains and dividend income is 0%

• Strategic location with superb connectivity

Singapore has a unique advantage in its geography. The country is strategically
located at the crossroads of the main trade and shipping routes of the world,
including the major sea route between India and China.
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Investment freindly environment

• Enterprise Singapore
is the government agency tasked with championing enterprise development. It was formed
from other existing agencies in 2018 to help businesses build their capabilities, move forward
with innovation and expand internationally.
• Productivity Solutions Grant (PSG)
The Productivity Solutions Grant (PSG) is designed to help businesses registered and operating
in Singapore to improve their processes with pre-scoped IT solutions and equipment. It
provides cross-sector and sector-specific funding to move ahead with digitization and
improved productivity.
• The Market Readiness Assistant (MRA)
grant is available until 31 Mar 2023 to help small and medium enterprises (SMEs) expand
overseas. This can cover up to 80% (from 1 November 2020 to 30 September 2021) of the
costs to develop ecommerce sites designed to meet the needs of international customers,
overseas logistics or marketing.
 Diplomatic efforts with neighbouring countries
• Inflows to Indonesia grew by 14 per cent to a record level of $23 billion,
with strong investments in manufacturing, financial services and mining.
Asian companies based in Singapore and Japan being major investors in
manufacturing.

• Investment from South-East Asia- Flows from the subregion’s two largest
investors (Singapore and Malaysia) rose but were not sufficient to
compensate for the declines registered in the other ASEAN member States.
Singapore remained the largest source of intraregional investment and a
major investor in India. MNEs from the subregion are also notable
investors in East Asia, mainly in China, strengthening intraregional
connections through investment and production between the two
subregions.

• Inflows to Uzbekistan, a series of projects started in chemical production,

with Chinese, Russian, Singaporean, United Kingdom and United States
firms.

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 Technological advancements
2017
• On 20 March 2017, the Singapore Government announced
the formation of Smart Nation and Digital Government
Group which will be responsible for developing digital
enablers and platforms for Smart Nation, to grow
economic value and catalyse innovation by companies and
citizens.
• The BGP(Business Grants Portal) launched in January
2017 is a one-stop portal for businesses to apply for grants
according to their needs without having to approach
multiple agencies.
2019
• During the Smart Nation Innovations
Week held in Singapore in June
2019 , Minister for Communications
and Information, S Iswaran,
announced that the Government had
set aside S$40 million (US$29.3
million) to support 5G research and
innovation and develop the country as
a 5G innovation hub.
• The MAS (Monetary Authority of
Singapore) had set aside $225 million

2018 (US$165 million) to develop the

sector over the next five years
• Facebook teamed up with Singapore’s Infocomm Media
Development Authority (IMDA) in October to launch
“Startup Station Singapore”.
• Google has built its digital presence in Singapore by making
third data centre in Singapore

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 Technological advancements
2020-21
• On 23 June 2021, the Singapore government planned to spend up to S$3.8 billion on
information and communications technology (ICT) procurement, this public spending
will be targeted at “transforming government digital services used by both citizens
and businesses, and reengineering government digital infrastructure to support
modern application development”.

• Agilent Technologies Inc recently signed a Research Collaboration Agreement (RCA)

with the Singapore Institute of Food and Biotechnology Innovation (SIFBI) outlining
their collaboration on developing food research knowledge advancement over the
next two years.

• Singapore and the Republic of Colombia have signed a Memorandum of

Understanding (MOU) to deepen economic ties between the two countries and
promote closer collaboration between Singapore and Colombian companies.
Businesses in Singapore and Colombia will have more opportunities to collaborate in
areas such as technology and innovation.

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 singapore international alliances
AFRICA
Singapore has diplomatic presence in all the Maghreb countries – they have
accredited Non-Resident Ambassadors to Algeria, Morocco and Tunisia while their
Ambassador in Cairo is concurrently accredited to Libya. The Ambassadors of
Algeria, Libya, Morocco and Tunisia in Jakarta are concurrently accredited to
Singapore.

THE UNITED STATES OF

Prime Minister Lee Hsien Loong and US President AMERICA
Donald Trump signed the Protocol of
Amendment to the 1990 MOU in September 2019, further extending it for another 15
years. On the economic front, the US is Singapore’s largest foreign direct investor by
country. The US-Singapore Free Trade Agreement that came into force in 2004 was the
first FTA between the US and an Asian country.

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INDIA
Singapore enjoys excellent, broad-based and multifaceted bilateral relations with India,
underpinned by the India-Singapore Strategic Partnership (SP) signed in November 2015
during Indian Prime Minister Narendra Modi’s official visit to Singapore. The SP was updated
(FinTech and innovation was included as a key pillar) during Prime Minister Modi’s official visit
to Singapore in May/June 2018. In 2017, Singapore was India’s 5th largest trading partner
worldwide, and the 3rd largest trading partner in ASEAN. Singapore was also India’s top
source of Foreign Direct Investment (FDI) in FY2019/20.

EUROPE
Building on their strong economic links, Singapore and the EU signed the landmark EU-
Singapore Free Trade Agreement (EUSFTA), EU-Singapore Investment Protection Agreement
and the EU-Singapore Partnership and Cooperation Agreement (ESPCA) in October 2018. The
Agreements were approved by the European Parliament (EP) in February 2019.
 ED
M
EXPANSIO
Nexports of Singapore are
• The top
mostly to
• China ($45.8B)
• Hong Kong ($39.1B)
• Malaysia ($28.2B)
• United States ($24.8B)
• Indonesia ($19.8B).
Also included the expansion by
Micron Technology (United States)
gas giant Linde (United Kingdom),
Freshworks (United States),
Dyson (United Kingdom)
Bombardier (Canada)
Qualcomm (United States)
Softbank (Japan)
YY Inc (China).
DIVERSIFICAT
ION economy is diversified
• Singapore's
into:-
• Aerospace
• Oil and Energy
• Creative Industries
• Logistics and Supply Chain'
• Natural Resources
• Pharmaceauticals
• MAnufacturing
• Precision Technologies
MODERNIZATI
ONAsia also includes a number
• Southeast
of states which appear to be exceptions
to the modernization theory.
• The first and most prominent is
Singapore, which some insist
undercuts the legitimacy of the
modernization theory.
• Boasting the region's highest
GDP/capita of $37,293,32 its highest
human development rating (0.94), and
its highest transparency rating
(9.2),one would expect Singapore to
have a far higher democracy score than
5.89 (hybrid).
NANDINI SING B_48
 Terima Kasih

BY - NANDINI SINGH