Doing Business in Singapore: The Gateway to Southeast Asia

Doing Business in singapore The gaTeway To souTheasT asia

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Prepared by the American Embassy with assistance of The American Chamber of Commerce in Singapore

Doing Business in singaporeThe gaTeway To souTheasT asia2011/2012 guiDe for u.s. Companies

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5Doing Business in singapore: The gateway to southeast asia

ConTenTs6 messsage from the

u.s. ambassador

8 Commercial service singapore

13 The american Chamber of Commerce in singapore

18 Doing Business in singapore

22 political and economic environment

34 selling u.s. products and services

45 Leading sectors for u.s. export and investment

78 Trade regulations, Custom and standards

92 investment Climate

123 Trade and project financing

127 Business Travel

136 Contacts, market research, and Trade

events

140 guide to our services

142 Doing Business in Brunei Darussalam

149 Doing Business in Cambodia

157 Doing Business in indonesia

172 Doing Business in Laos

178 Doing Business in malaysia

185 Doing Business in philippines

196 Doing Business in Thailand

206 Doing Business in Vietnam

216 List of ports and states represented in singapore

218 american Community organizations in singapore

220 u.s. & foreign Commercial service offices in the asia-pacific region

226 u. s. Department of Commerce

u.s. & foreign Commercial service export assistance Center Directory

236 more from The advertisers

6 Doing Business in singapore: The gateway to southeast asia

at no other time in the history of the united states have exports become so important to the country’s economic growth. The u.s. embassy in singapore plays an integral role in president obama’s national export initiative to expand american exports and help american businesses strengthen their export endeavors in singapore and the region.

Doing Business in singapore 2011 guide is prepared by the embassy to provide you with a comprehensive overview of singapore’s commercial, economic, political and investment climate, emphasizing the best prospects for american exports. it also describes assistance available from the u.s. government and other sources that can help you in your marketing efforts in singapore and the region.

as the united states’ 10th largest export market and 13th largest trading partner, singapore is one of the most highly developed and sophisticated industrial, commercial, financial and consumer economies in the world. with a per capita

emBassy of The uniTeD sTaTessingapore

amBassaDor’s messagegDp of more than us$43,000, the country is an excellent market for a wide variety of u.s. products and services. it also serves as a major distribution center for u.s. companies interested in selling in asia.

To stay engaged in the region, the united states joined the Trans-pacific strategic economic partnership (Tpp) negotiations that will link singapore, the u.s., Chile, peru, new Zealand, australia, Vietnam, malaysia and Brunei in a regional free Trade agreement.

i am very proud to say that u.s.-singapore relations are at an all-time high and the u.s. is enjoying unprecedented goodwill and standing in asia. i therefore invite you to make full use of our embassy and its Commercial service to help you achieve success in the marketplace.

David i. adelmanunited states ambassador

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Cs singapore offers a wide variety of programs and activities to help american companies prosper in the southeast asia economies.

This section provides important contact information on Cs singapore personnel, lists a few of the many commercial and industrial sectors covered by Cs singapore’s Commercial specialists and describes the major export promotion programs.

The mission of the u.s. Commercial service (Cs) is to promote u.s. exports and support u.s. business interests in the greater singapore region.

Patrick SantilloCommercial Counselor

Darrel chingCommercial attaché

Ms. chia Swee hoon Senior Commercial Specialist(information technology/telecommunications/broadcasting/audio visual; franchising; services)

Mr. ng haw chengCommercial Specialist(Building/construction; transportation; environment protection)

Mr. chan Yiu keiCommercial Specialist(manufacturing; education/training; power/utilities; energy/natural resources)

Ms. luanne theseira-o’hara Commercial Specialist (food processing, packaging and services; health/medical/scientific; consumer goods & services)

Singapore Mailing address:american embassyCommercial service27 napier road, singapore 258508Tel: (65) 6476-9037fax: (65) 6476-9080e-mail: [email protected]: www.buyusa.gov/singapore

Stateside mailing address:(for users of the U.S. postal system):Commercial sectionunit 4280 Box 2700Dpo ap 96507-2700

Mr. Michael hoggeSingapore Desk Officermarket access & Complianceu.s. Department of Commerce14th & Constitution avenue n.w.washington D.C. 20230-0001Tel. (202) 482 1405fax (202) 482 3316 e-mail: [email protected]


cS SingaPore ProDUctS anD SerViceS

The u.s. Commercial service offers cus-tomized solutions to help your business enter and succeed in markets world-wide. our global network of trade spe-cialists will work one-on-one with you through every step of the exporting pro-cess, helping you to:

• Targetthebestmarketswithourworldclass research

• Promoteyourproductsandservicesto qualified buyers

• Meet the best distributors andagents for your products and ser-vices

• Overcomepotentialchallengesortrade barriers

u.s. exporters seeking general export information/assistance or country-specific commercial information should consult with their nearest export assistance Center or contact the u.s. Department of Commerce’s Trade in-formation Center at 1-800-usa-TraDe, or visit www.trade.gov.

client Facilitation SerViceS

Business Facilitation Service (BFS)

get low-cost logistical and adminis-trative support when you are on inter-national business travel.

CommerCiaL serViCe singapore



The u.s. Commercial service’s Business facilitation service offers flexible solu-tions to let you do business when you are away from home.

These services can include: pick-up and delivery of bid documents; invitations to targeted members of the local business community; and meetings with specific companies.

Catalog Display at Trade show

Companies that wish to display catalogs at usDoC certified trade shows to pro-mote their company products may use this package. Cs singapore will carry out a pre-show publicity campaign, col-lect leads, compile and send the leads to the u.s. company one-week after the show.

DeLiVery: 4 weeks lead-time

Commercial news usa

promote your products and services to buyers, distributors and representatives in over 145 countries through an advertise-ment in Commercial news usa. Distrib-uted by u.s. embassies and consulates worldwide, this bi-monthly export maga-zine enables u.s. small and medium-sized businesses to reach an estimated 80,000 readers and has a proven track record in generating export sales. a Chi-nese language version is available for

u.s. businesses wishing to sell into this dy-namic market. Visit to www.export.gov/cnusa or call 1-800-581-8533.

Customized market research

access the international market intelli-gence you need to make informed busi-ness decisions regarding exporting. our in-country experts help u.s. small and medium-sized businesses develop a clear picture of the export prospects for specific products in any given market. you’ll get customized market research reports that address your particular questions regarding: overall marketabil-ity of your products and services; market trends and size; customary distribution and promotion practices; market entry requirements; regulations, product stan-dards and registration; key competitors; potential agents, distributors or strategic partners; and more.

gold Key matching service (gKs)

The gold Key matching service (gKs) in-cludes: appointments with pre-screened firms interested in client's product(s)/service(s) or in joint venture; use of con-ference room for one-on-one meetings; market counseling by Commercial spe-cialist; a guide for u.s. exporters; reve-lant market research; hotel reservations at embassy rate; car rental arrange-


ments as needed; escort for out-of of-fice calls as available. post requires 20 sets of product/service literature.

DeLiVery: 6 weeks advance scheduling required.

international Company profile (iCp)

iCp - initiate and manage your interna-tional business relationships with con-fidence. have the u.s. Commercial service generate a customized inter-national Company profile (iCp) on your potential business partners. researched and prepared by our international trade specialists and commercial officers, iCps enable u.s. small and medium-sized businesses to more effectively evaluate overseas companies. you'll get detailed answers to your questions about the spe-cific overseas companies in which you are interested - credit rating, profit and loss numbers, key officers, and our opin-ion on the overall viability of the firm in its market.

DeLiVery: 15 working days after receipt of fee and completed questionnaire.

The international partner search (ips)

The international partner search (ips) ser-vice provides a report on qualified over-seas agents, distributors, manufacturers,

representatives, joint venture partners, licensees, franchises, or strategic part-ners who have examined a u.s. compa-ny's materials and expressed an interest in the company's products, services, or licenses, or expressed an interest in oth-erwise partnering with the company.

platinum Key service (pKs)

The platinum Key service or pKs provides sustained marketing support by the u.s. Commercial service in singapore for u.s. firms. a Commercial specialist will be assigned as a "dedicated account executive" to develop and implement a customized market expansion program for the client. This program will be imple-mented according to a defined scope of work that includes specific deliver-able agreed upon between the u.s. cli-ent and the Commercial service.

DeLiVery: as determined in the work plan with the u.s. client.

single Company promotion

we will assist a u.s. company or its lo-cal representative to organize a promo-tional event in singapore which could include seminars, luncheons, cocktail receptions, etc. The service is tailored to the specific needs of the u.s. company.

DeLiVery: 6 weeks advance scheduling required.

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nationalitY oF execUtiVeS38% of amCham executives are singaporean and 17% of amCham executives are american.

nationalitY anD Size oF coMPanieSmost of amCham’s corporate members are large u.s. companies. in terms of size, 60% of our members are large companies and 30% are small companies.

oThers

inDian

ausTraLian/new ZeaLanD

singaporean

ameriCan

european

maLaysian

CorporaTe (u.s.) Large

assoCiaTe (non u.s.) Large

assoCiaTe (non u.s.) smaLL

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naTionaLiTy of exeCuTiVes

17%

18%12%

38% 7%

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naTionaLiTy of Companies

we help your business succeed in the region by providing you unrivalled access to valuable business information, advocacy and networking opportunities.

with 4,400 executives representing more than 700 companies, amCham represents more than us$25 billion of investment in the region. with 280 events and committee meetings a year, even the busiest executive will find ample opportunities to network and gain business insights.

38 years of leading the business community

78% of fortune 500 companies based in singapore are amCham members

77% of amCham executives have regional responsibilities

65% of our members are multi-national companies

aBoUt US

The ameriCan ChamBer of CommerCe in singaporeexpanD your Business neTworK wiTh


as a member of the chamber, your organization will be able to enjoy the following benefits:

network160 events and 120 committee meetings a year. use our platform to network and gain insights: you and your colleagues can also attend our upcoming events and committee meetings at members’ prices. small companies are entitled to nominate 10 employees as amCham members; large companies are entitled to nominate 20 employees. engage with goVernMentSwe organize business missions to countries in the region, provide feedback to the u.s. and singapore governments on pertinent issues affecting the ease of doing business in the region. moreover, every year, we participate in the annual washington DC Doorknock where members meet with Congress and the executive Branch of u.s. government to discuss issues of relevance to the american business community in asia pacific. for more information, refer to our "advocacy" section i the next page. exPoSUrespeak at our events, and receive exposure in the following ways:• ListinginMembership

Directory (for all companies)• ListinginSmallBusiness

Directory (for small companies)

• Profilesofmembercompanies are displayed on members’ spotlight

• Newsaboutmembercompanies is publicized on our e-newsletter.

• SubmitanarticletoshareonamCham’s e-newsletter.

inDUStrY inSightSwe have 13 committees that meet once a month for committee meetings – intimate discussions over breakfast or lunch with peers in the industry

aDVertiSeMentS & SPonSorShiPThe chamber has various avenues for members who would like to have a more direct marketing approach such as website, e-news and publications with special discounts. Besides that, members will also have the option to choose from the 250 events that amCham host every year to reach out to a target group of audience. sponsorship can be customized and designed based on member’s business objective. aMchaM’S exclUSiVe PrograMspecial discounts for member companies’ products/ services can be offered to other amCham members through the amCham exclusive program. aMchaM’S VenUe FacilitieSVery affordable rates for rental of facilities in our office – the sais auditorium and the Citi Boardroom Social MeDiayou can join amCham’s Linkedin group, facebook page and use the platform to exchange/promote information. you can also watch events you have missed on amCham’s youTube channel, and follow us on Twitter.

MeMBerShiP BeneFitS


For more information, please contact

Join The american Chamber of Commerce in singapore’s fanpage on facebook for photos and news, be part of our Linkedin Discussion group, follow us at www.twitter.com/amchamsingapore and watch videos of our events on our youTube Channel: www.youtube.com/amchamsingapore

the aMerican chaMBer oF coMMerce in SingaPoree-mail: [email protected]: www.amcham.org.sgTel: (65) 6597-5730address: #23-03/04/05 shaw Centre, 1 scotts roadsingapore 228208

connect with us and our members on Social Media

aDVocacY

aDVocacY PaPerSu.s.-singapore-free Trade agreement•

Trans-pacific partnership•

Double Taxation agreement•

annUal aSean BUSineSS oUtlook SUrVeYamCham conducts an annual survey of u.s. companies operating in:

•Cambodia •Indonesia •Malaysia•Philippines •Singapore •Thailand•Vietnam

The results are shared with u.s., singapore, and regional goverments.

leaDerShiP in the aSia PaciFic coUncil oF aMerican chaMBerS oF coMMerce

apCaC is the regional organization of 27 amChams in 21 economies across asia •pacific, representing over 10,000 business and 50,000 executives

amCham singapore board members have served as apCaC Chairs in 2008-2010 •and 2011-2012

amCham singapore has produce 3 apCaC white papers to the u.s. goverment.•

Corporate for Travel promotion proposal•

asean harmonization•

gloBal leaDerS at aMchaM eVentS

Jeffrey R. Immelt, Chairman & CEO of General Electric John Anderson, CEO of Levi Strauss & Co.

Kristian P. Moor, President and CEO, Chartis, Inc. Tony Davis, Group CEO, Tiger AirwaysTom Ridge, Former Secretary of Homeland Security

Kevin Kelly, CEO, Heidrick & Struggles

Richard Edelman, President & CEO, Edelman Gary Locke, U.S. Secretary of Commerce

Stephen Roach, Chairman, Morgan Stanley Asia Scott Davis, Chairman & CEO, United Parcel Services Carol Bartz, CEO, Yahoo!

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18 Doing Business in Singapore: The Gateway to Southeast Asia

MArkeT Overview

Foreign investments, combined with investments through government-linked corporations, underpin Singapore's open, heavily trade-dependent econ-omy. in 2010, the Singapore economy rebounded with an exceptional perfor-mance, expanding by 14.5% to become the second fastest growing economy in the world. GDP is expected to moderate in 2011 with the Singapore Government forecasting a more sustainable growth rate of 5.0-7.0%. inflation grew 2.8% in 2010 and is projected to rise to 3.0-4.0% in 2011. Analysts expect the Singapore currency to strengthen as the Singapore Government uses monetary policy to fight inflation.

in 2010, Singapore was the United States’ 10th largest export market (up from 11th place in 2009) and remained

the 13th largest trading partner. The city state is a major entrepot and was the second busiest container port in the world in 2010. The top supplier of imported goods to Singapore was Ma-laysia, followed by the United States, China, Japan, Taiwan, South korea, indonesia, Saudi Arabia, Thailand, and india respectively. "The Global enabling Trade report 2010" by the world eco-nomic Forum ranked Singapore first for having the most open economy for international trade and investment.

MArkeT ChAllenGeS

Singapore is generally a free port; more than 99% of all imports enter Singapore duty-free. For social and/or environmen-tal reasons, it levies high excise taxes on distilled spirits and wine, tobacco prod-ucts, motor vehicles, and gasoline. The

DOinG BUSineSS in SinGAPOre


19Doing Business in Singapore: The Gateway to Southeast Asia

Doing Business in Singapore

Political and econom

ic environm

ent

Selling U.S. Products and Services

leading Sectors for U.S. export and investm

ent

Trade regulations and Standards

investment

Clim

ateTrade and Project Financing

Business Travel

Contacts,

Market

research and Trade events

Guide

to Our

Services

Doing Business in Brunei Darussalam

Doing Business in C

ambodia

Doing Business in Brunei indonesia

Doing Business in laos

Doing Business in M

alaysia

Doing Business in Philippines

Doing Business in Thailand

Doing Business in vietnam

main challenge for American compa-nies is strong competition from both for-eign and local suppliers. Despite its lib-eral trading regime, foreign companies face barriers in certain service sectors such as telecommunications, media, financial and professional services, and energy. Details can be found in the USTr report on Foreign Trade Barriers that is available on-line at http://www.ustr.gov/sites/default/files/uploads/reports/2010/nTe/2010_nTe_Sing apore_final.pdf.

in March 2010, the Media Develop-ment Authority (MDA) introduced new measures that will require pay Tv com-panies to cross carry content subject to exclusive carriage provisions. A pay Tv company with an exclusive contract for a channel would be required to share that content with other pay Tv compa-nies at their request. Content providers consider the measures an unnecessary interference in a competitive market that would deny content holders the ability to negotiate freely in the market-place, and interferes with their ability to manage and protect their intellectual property. MDA plans to implement the measures in mid-2011.

The U.S. Commercial Service has received multiple complaints from U.S. merchants reporting fraudulent credit card transactions committed by companies/individuals purporting

to be in Singapore. investigation of the fraudulent transactions has revealed that the shipments are actually being sent to freight forwarders in Singapore and diverted to unknown consignees in neighboring countries. exporters should be wary of orders paid by credit card and requiring immediate shipment. More information can be found at http://www.buyusa.gov/singapore/en/warning_credit_card_fraud.html.

MArkeT OPPOrTUniTieS

Singapore is a sophisticated and mod-ern economy that offers excellent op-portunities for U.S. firms interested in penetrating the Asian market. The world Bank's "Doing Business 2010" report ranked Singapore as the easiest coun-try in which to do business. Singapore’s market appeal is its free port status, straightforward, english-speaking, U.S. style of doing business, strong intellec-tual property protection with virtually no corruption. The country is a major trad-ing hub, importing and exporting all kinds of products from consumer goods to high technology and industrial goods for re-export to third countries. Best pros-pects for U.S. companies include: elec-tronics, oil and gas equipment, aircraft and parts, pollution control equipment, computer hardware and software, tele-communications equipment, labora-tory and scientific instruments, medical




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devices, university education services and franchises.

The Singapore government and private industry are expected to invest in sev-eral major projects including:

• construction of $300 million mo-tor sports hub to be ready of end 2011;

• construction of $47million new aircargo hub at Singapore Changi Air-port to be completed by first half of 2012;

• constructionofaseconddesalina-tion plant to be ready by 2013;

• constructionof$1billionLNGtermi-nal that will start operations in mid 2013;

• construction of a $530 million un-derground oil storage facility;

• construction of a public hospitalwith an allocated budget of over $700millionscheduledtobereadyby 2014;

• constructionofaprivatesector350-bedhospitalcostingbetween$207and$345milliontobebuiltby2012while another private healthcare group will spend between $61.5million and $77 million to expandtheir flagship hospital scheduled for completion by 2012;

• Singapore’s second largest tele-com services provider together with regional telcos will jointly build and operate a $430 million submarinecable connecting east Asia’s major business hubs;

Artist ’s impression of The Singapore Sports hub




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relatively small size of the Singapore market, potential partners often ask to cover regional territories. it is important for U.S. firms to visit their representatives, maintain a good relationship with them and respond quickly to inquiries. Pro-spective exporters to Singapore should be aware that competition is high and that buyers expect good after-sales ser-vice. Most American companies that use the U.S. Commercial Service (CS) Singapore matchmaking and promo-tion services in Singapore find several interested agents or distributors. when business warrants, many companies have found it useful and sometimes necessary to set up offices in Singa-pore. Singapore is home to over 1,500 American firms, most of which serve the regional market.

• Construction of new Mass RapidTransit (MrT) rail lines costing over $30 billion that will double Singa-pore’s MrT network from 138km today to 278km in 2020.

Singapore government investments of $5 billion by 2013 to foster researchand high-end production in industries such as precision engineering and life sciences.

MArkeT enTry STrATeGy

Using agents or distributors is a com-mon and effective way to serve the Singapore market and, from here, other countries in Southeast Asia. Sin-gapore firms are aggressive when it comes to representing new products and typically respond enthusiastically to new opportunities. Because of the

Changi Airport. Image courtesy of the Singapore Tourism Board


PeOPle

Singapore is one of the most densely populated countries in the world. The annual population growth rate for 2010 was 1.8%, including resident foreign-ers. Singapore has a varied linguistic, cultural, and religious heritage. Malay is the national language, but Chinese, english, and Tamil also are official languages. english is the language of administration and also is widely used in the professions, businesses, and schools.

The government has mandated that english be the primary language used at all levels of the school systems, and it aims to provide at least 10 years of

education for every child. in 2009, pri-mary and secondary school students totaledabout489,484,or9.6%of theentire population. in 2009, enrollment at public universities was 72,710 (full-time/part-time)and80,635atthepolytech-nics. The institute of Technical educa-tion for basic technical and commerce skillshas24,846students.Thecountry'sliteracyrateis96.3%.

Singapore generally allows religious freedom, although religious groups are subject to government scrutiny, and some religious sects are restricted or banned. Almost all Malays are Muslim; other Singaporeans are Taoists, Bud-dhists, Confucianists, Christians, hindus, or Sikhs.

POliTiCAl AnD eCOnOMiC envirOnMenT

helicopters fly over Sir Stamford raffles’ statue on national Day. Image courtesy of the Singapore Tourism Board





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hiSTOry

Although Singapore's history dates from the 11th century, the island was little known to the west until the 19th cen-tury, when in 1819, Sir Thomas Stamford raffles arrived as an agent of the Brit-ish east india Company. in 1824, the British purchased Singapore island, and by 1825, the city of Singapore had become a major port, with trade exceeding that of Malaya's Malacca and Penang combined. In 1826, Sin-gapore, Penang, and Malacca were combined as the Straits Settlements to form an outlying residency of the British EastIndiaCompany;in1867,theStraitsSettlements were made a British Crown Colony, an arrangement that continued until1946.

The opening of the Suez Canal in 1869 and the advent of steamshipslaunched an era of prosperity for Sin-gapore as transit trade expanded throughout Southeast Asia. in the 20th century, the automobile industry's de-mand for rubber from Southeast Asia and the packaging industry's need for tin helped make Singapore one of the world's major ports.

in 1921, the British constructed a naval base, which was soon supplemented by an air base. But the Japanese cap-tured the island in February 1942, and it remained under their control until Sep-tember 1945, when the British returned.

In1946,theStraitsSettlementswasdis-solved; Penang and Malacca became part of the Malayan Union, and Singa-pore became a separate British Crown Colony. in 1959, Singapore became self-governing, and, in 1963, it joinedthe newly independent Federation of Malaya, Sabah, and Sarawak--the latter two former British Borneo territories--to form Malaysia.

indonesia adopted a policy of "con-frontation" against the new federation, charging that it was a "British colonial creation," and severed trade with Ma-laysia. The move particularly affected Singapore, since indonesia had been the island's second-largest trading part-ner. The political dispute was resolved in1966,and Indonesia resumedtradewith Singapore.

After a period of friction between Sin-gapore and the central government in kuala lumpur, Singapore separated fromMalaysiaonAugust9,1965,andbecame an independent republic.

GOvernMenT

According to the constitution, as amended in 1965, Singapore is a re-public with a parliamentary system of government. Political authority rests with the prime minister and the cabinet. The prime minister is the leader of the politi-cal party or coalition of parties having the majority of seats in Parliament. The president, who is chief of state, previ-




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ously exercised only ceremonial duties. As a result of 1991 constitutional chang-es, the president is now supposed to be elected and exercises expanded pow-ers over legislative appointments, gov-ernment budgetary affairs, and internal security matters.

The unicameral Parliament consists of 87 members elected on the basis of universal adult suffrage, and up to nine "nominated" members of Parliament (nMPs). in addition, a constitutional pro-vision assures at least nine opposition members in Parliament, even if fewer than nine actually are elected; these are known as non-constituency mem-bers of Parliament (nCMPs). The presi-dent appoints nominated members of Parliament from among nominations by a special selection committee. nomi-nated members of Parliament enjoy the same privileges as members of Parlia-

ment but cannot vote on constitutional matters or expenditures of funds. The maximum term of Parliament is 5 years. nMPs serve for 2½-year terms. in the May 7, 2011 general election, the gov-erning People's Action Party (PAP) won 81 of the 87 elective seats of the 12th Parliament. The opposition workers' Party won the remaining six seats. There are three nCMPs in the 12th Parliament, two from the workers' Party and one from the Singapore People’s Party. voting has been compulsory since 1959.

Judicial power is vested in the high Court and the Court of Appeal. The high Court exercises original criminal and civil jurisdiction in serious cases as well as appellate jurisdiction from sub-ordinate courts. its chief justice, senior judge, and 12 judges are appointed by the president. Appeals from the high Court are heard by the Court of Appeal.

The Parliament house. Image courtesy of the Singapore Tourism Board




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The right of appeal to the Privy Council in london was abolished effective April 1994.

PrinCiPAl GOvernMenT OFFiCiAlS

PreSiDenT: S.r. nAThAn

PriMe MiniSTer: lee hSien lOOnG

DePUTy PriMe MiniSTer: TeO Chee heAn

DePUTy PriMe MiniSTer: ThArMAn ShAnMUGArATnAM

MiniSTerS

COMMUniTy DevelOPMenT, yOUTh AnD SPOrTS (ACTinG): ChAn ChUn SinG

DeFenSe: nG enG hen

eDUCATiOn: henG Swee keAT

envirOnMenT AnD wATer reSOUrCeS: viviAn BAlAkriShnAn

FinAnCe: ThArMAn ShAnMUGArATnAM

FOreiGn AFFAirS: k. ShAnMUGAM

heAlTh: GAn kiM yOnG

hOMe AFFAirS: TeO Chee heAn

inFOrMATiOn, COMMUniCATiOnS AnD The ArTS: yAACOB iBrAhiM

lAw: k. ShAnMUGAM

MAnPOwer: ThArMAn ShAnMUGArATnAM

nATiOnAl DevelOPMenT: khAw BOOn wAn

TrADe AnD inDUSTry: liM hnG kiAnG

TrAnSPOrT: lUi TUCk yew

PriMe MiniSTer’S OFFiCe: liM Swee SAy, S. iSwArAn

AMBASSADOr TO The UniTeD nATiOnS: k. v. vAnU GOPAlA MenOn

AMBASSADOr TO The UniTeD STATeS: ChAn henG Chee

Singapore maintains an embassy in the United States at 3501 international Place nw, washington, DC 20008 (tel. 202/537-3100,fax202/537-0876).

POliTiCAl COnDiTiOnS

The ruling political party in Singapore, reelected continuously since 1959, is the People's Action Party (PAP), headed by Prime Minister lee hsien loong. The PAP has held the overwhelming majority ofseatsinParliamentsince1966,whenthe opposition Barisan Sosialis Party (Socialist Front), a left-wing group that splitoff fromthePAP in1961, resignedfrom Parliament, leaving the PAP as the sole representative party. in the gen-eralelectionsof1968,1972,1976,and1980, the PAP won all of the seats in an expanding Parliament.

Then-workers' Party Secretary General J.B. Jeyaretnam (who died in 2008) be-came the first opposition party member of Parliament in 15 years when he won a 1981 by-election. Opposition parties gained small numbers of seats in the general elections of 1984 (2 out of 79), 1988 (1 of 81), 1991 (4 of 81), 1997 (2 of 83), 2001 (2 of 84), 2006 (2 of 84),and2011(6of87).Meanwhile,thePAP'sshare of the popular vote in contested seats decreased from 75% in 2001 to 60.1%in2011.Inthe2011election,op-position parties together contested 82 of the 87 seats, the largest number ever.




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eCOnOMy

Singapore's strategic location on major sea lanes and its industrious population have given the country an economic importance in Southeast Asia dispropor-tionate to its small size. Upon indepen-dence in 1965, Singapore was facedwith a lack of physical resources and a small domestic market. in response, the Singapore Government adopted a pro-business, pro-foreign investment, export-oriented economic policy framework, combined with state-directed invest-ments in strategic government-owned corporations. Singapore's economic strategy proved a success, producing

real growth that averaged 7.9% from

1965to2009.Theworldwideelectronics

slump in 2001 and the outbreak of se-

vere acute respiratory syndrome (SArS)

in 2003 dealt blows to the economy,

but growth bounced back each time,

driven by world demand for electronics,

pharmaceuticals, other manufactured

goods, and financial services, par-

ticularly in the economies of its major

trading partners--the United States, the

european Union, Japan, and China, as

well as expanding emerging markets

such as india. The global financial crisis

of 2008 and 2009 had a sharp impact

on Singapore's open, trade-oriented

Image courtesy of the Singapore Tourism Board




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economy. Singapore saw its worst two quarters of contraction in late 2008 and early 2009, but quickly recovered with strong performance in later quarters. The economy grew 14.5% in 2010.

Singapore's largely corruption-free government, skilled work force, and ad-vanced and efficient infrastructure have attracted investments from more than 7,000 multinational corporations from the United States, Japan, and europe. Also present are 1,500 companies from China and another 1,500 from india. Foreign firms are found in almost all sectors of the economy. Multinational corporations account for more than two-thirds of manufacturing output and direct export sales, although certain services sectors remain dominated by government-linked companies.

Manufacturing (including construction) and services are the twin engines of the Singapore economy and accounted for 26.3% and 69.1%, respectively, ofSingapore's gross domestic product in 2009. The electronics and biomedical manufacturing industries lead Singa-pore's manufacturing sector, account-ing for30.6%and20.8%, respectively,of Singapore's manufacturing output in 2009. To inject new life to the tourism sector, the government in April 2005 approved the development of two casi-nos that resulted in investments of more

than$5billion.LasVegasSands'MarinaBay Sands resort opened for business in April 2010, while Genting international's resort world Sentosa opened its doors in February 2010.

To maintain its competitive position despite rising wages, the government seeks to promote higher value-added activities in the manufacturing and ser-vices sectors. it also has opened, or is in the process of opening, the financial services, telecommunications, and power generation and retailing sectors to foreign service-providers and greater competition. The government also has pursued cost-cutting measures, including tax cuts and wage and rent reductions, to lower the cost of doing business in Singapore. The govern-ment is actively negotiating eight free trade agreements (FTAs) with emerging economic partners and has already concluded 18 FTAs with many of its key trade partners, including one with the United States that came into force January 1, 2004. As a member of the Association of Southeast Asian nations (ASeAn), Singapore is part of the ASeAn Free Trade Area (AFTA), and is signatory to ASeAn FTAs with China, korea, Ja-pan, india, and a joint agreement with new Zealand and Australia. Singapore is also a party to the Transpacific Strate-gic economic Partnership Agreement,




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which includes Brunei, Chile, and new Zealand.

TrADe, inveSTMenT, AnD AiD

Singapore's total trade in 2009 amount-ed to $513.9 billion, a dip of 19.4%from 2008. in 2009, Singapore's imports totaled$245billion,andexportstotaled$269 billion. Malaysia was Singapore'smain import source country, as well as its second-largest export market, ab-sorbing 11.5% of Singapore's exports, after Hong Kong (11.6%). Othermajorexport markets include the United States (6.5%), China (9.7%), and Indonesia(9.7%). Singapore was the 13th-largest trading partner of the United States in 2009. re-exports accounted for 48.9% of Singapore's total sales to other coun-tries in 2009. Singapore's principal ex-ports are petroleum products, food and beverages, chemicals, pharmaceuti-cals, electronic components, telecom-munication apparatus, and transport equipment. Singapore's main imports are aircraft, crude oil and petroleum products, electronic components, con-sumer electronics, industrial machinery and equipment, motor vehicles, chem-icals, food and beverages, electricity generators, and iron and steel.

Singapore continues to attract invest-ment funds on a large scale despite its relatively high-cost operating en-

vironment. The United States leads in foreign investment, accounting for 11.2% of new actual investment in the manufacturing sector in 2008. As of 2009, the stock of investment by U.S. companies in the manufacturing and services sectors in Singapore reached about $76.86 billion (total assets). Thebulk of U.S. investment is in electronics manufacturing, oil refining and storage, and the chemical industry. About 1,500 U.S. firms operate in Singapore.

The government also has encouraged firms to invest outside Singapore, with the country's total direct investments abroad reaching $210.7 billion by theend of 2008. China was the top des-tination,accounting for 16.2%of totaloverseas investments, followed by the United kingdom (8.4%), Malaysia (8.2%), HongKong (6.9%), Thailand (6.3%), In-donesia (6.1%), Australia (5.8%), andthe United States (5.0%).

lABOr

As of June 2010, Singapore had a total labor force of about 3.053 million. The national Trades Union Congress (nTUC), the sole trade union federation, com-prises almost 99% of total organized la-bor. extensive legislation covers general labor and trade union matters. The in-dustrial Arbitration Court handles labor-management disputes that cannot be




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resolved informally through the Ministry

of labor. The Singapore Government

has stressed the importance of coop-

eration between unions, management,

and government ("tripartism"), as well

as the early resolution of disputes. There

havebeennostrikessince1986.

Singapore has enjoyed virtually full

employment for long periods of time.

Amid slower economic growth in 2003,

unemployment rose to 4.0%. As of the

end of June 2008, the unemployment

rate was 2.2%. in tandem with the

global economic crisis and the econo-

my’s contraction, unemployment as of

end-September 2009 rose to 3.3% and

resident unemployment reached 4.8%.

however, the overall and resident un-

employment rate dipped to 2.2% and

3.2%, respectively, in June 2010 in view

of the Singapore Government’s job-sav-

ing measures and gradually improving

global economy. Overall, some of Sin-

gapore’s unemployment is attributable

to structural changes in the economy,

as low-skill manufacturing operations

have moved overseas. Since 1990, the

number of foreign workers in Singapore

has increased rapidly to cope with

labor shortages. Foreign workers com-

prise 35% of the labor force; the great

majority of these are unskilled workers.

TrAnSPOrTATiOn AnD COMMUniCATiOnS

Situated at the crossroads of interna-tional shipping and air routes, Singa-pore is a center for transportation and communication in Southeast Asia. Sin-gapore's Changi international Airport is a regional aviation hub served by 80 airlines. A third terminal opened in Jan-uary 2008, and a dedicated low-cost terminal for budget airlines has oper-atedsince2006.ThePortofSingaporeis the world's busiest for containerized transshipment traffic. The country also is linked by road and rail to Malaysia and Thailand.

Telecommunications and internet fa-cilities are state-of-the-art, providing high-quality communications with the rest of the world. Singapore is rolling out a nationwide broadband network that promises high-speed internet connec-tions at lower prices. Sixty percent of the country is scheduled to be covered by the end of 2010. radio and television stations are all ultimately government-owned or government-linked. The print media is dominated by a company with close ties to the government. Daily newspapers are published in english, Chinese, Malay, and Tamil.




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DeFenSe

Singapore relies primarily on its own defense forces, which are continuously being modernized. The defense bud-get accounts for approximately 33% of government operating expenditures (or 4.3% of GDP). A career military force of 55,000 is supplemented by 300,000 persons, either on active national Service, which is compulsory for able-bodied young men, or on reserve. The Singapore Armed Forces engage in joint training with Association of South-east Asian nations (ASeAn) countries and with the United States, Australia, new Zealand, and india. Singapore also conducts military training on Taiwan.

Singapore is a member of the Five-Power Defense Arrangement together with the United kingdom, Australia, new Zealand, and Malaysia. The arrange-ment obligates members to consult

in the event of external threat and provides for stationing Commonwealth forces in Singapore.

Singapore has consistently supported a strong U.S. military presence in the Asia-Pacific region. in 1990, the United States and Singapore signed a memorandum of understanding (MOU) which allows United States access to Singapore fa-cilities at Paya lebar Airbase and the Sembawang wharves. Under the MOU, a U.S. navy logistics unit was established in Singapore in 1992; U.S. fighter aircraft deploy periodically to Singapore for exercises, and a number of U.S. military vessels visit Singapore. The MOU was amended in 1999 to permit U.S. naval vessels to berth at the Changi naval Base, which was completed in early 2001. in July 2005, the United States and Singapore signed a Strategic Framework Agreement to expand cooperation in defense and security.

Image courtesy of the Singapore Tourism Board




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FOreiGn relATiOnS

Singapore is nonaligned. it is a member of the United nations and several of its specialized and related agencies, and also of the non-Aligned Movement and the Commonwealth. Singapore has par-ticipated in Un peacekeeping/observer missions in kuwait, Angola, namibia, Cambodia, and Timor-leste. Singapore supports two Provincial reconstruction Teams and provides refueling aircraft in support of international efforts in Af-ghanistan. Singapore strongly supports regional and international anti-piracy efforts, and has undertaken a leadership

role in anti-piracy efforts in the Gulf of Aden. Singapore supports the concept of Southeast Asian regionalism and plays an active role in ASeAn, the ASeAn regional Forum, and the Asia Pacific economic Cooperation (APeC) forum.

U.S.-SinGAPOre relATiOnS

The United States has maintained for-mal diplomatic relations with Singa-pore since it became independent in 1965. Singapore's efforts to maintaineconomic growth and political stability and its support for regional cooperation harmonize with U.S. policy in the region and form a solid basis for amicable re-lations between the two countries. The United States and Singapore signed a bilateral free trade agreement on May 6, 2003; the agreement entered intoforce on January 1, 2004. The growth of U.S. investment in Singapore and the large number of Americans living there enhance opportunities for contact be-tween Singapore and the United States. Many Singaporeans visit and study in the United States. Singapore is a visa waiver Program country.

The U.S. Government sponsors visitors from Singapore each year under the international visitor Program. The U.S. Government provides Fulbright awards to enable selected American profes-sors to teach or conduct research at the national University of Singapore and

The U.S. Ambassador to Singapore David Adelman




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the institute of Southeast Asian Studies. it awards scholarships to outstanding Sin-gaporean students for graduate studies at American universities and to American students to study in Singapore. The U.S. Government also sponsors occasional cultural presentations in Singapore. The east-west Center and private American organizations, such as the Asia and Ford Foundations, also sponsor exchanges involving Singaporeans.

PrinCiPAl U.S. eMBASSy OFFiCiAlS

AMBASSADOr: DAviD ADelMAn

DePUTy ChieF OF MiSSiOn: lOUiS MAZel

eCOnOMiC/POliTiCAl COUnSelOr: JOel ehrenDreiCh

SeniOr eCOnOMiC OFFiCer: MAnU BhAllA (ArrivinG AUGUST 2011)

SeniOr POliTiCAl OFFiCer: DeAnnA G. kiM (ArrivinG AUGUST 2011)

COnSUl: CrAiG BryAnT (ArrivinG SePTeMBer 2011)

PUBliC AFFAirS COUnSelOr: eriC wATnik (ArrivinG SePTeMBer 2011)

COMMerCiAl COUnSelOr: PATriCk SAnTillO (ArrivinG AUGUST 2011)

MAnAGeMenT COUnSelOr: SUSAn niBlOCk (ArrivinG JUly 2011)

DeFenSe ATTAChe: JOhn wOOD

FinAnCiAl ATTAChe (SOUTheAST ASiA): SeTh BleiweiS

The U.S. embassy in Singapore is located at 27 napier road, Singapore 258508 (tel. 65-6476-9100, fax 65-6476-9340).The embassy's website is at http://singa-pore.usembassy.gov.

TrAvel AnD BUSineSS inFOrMATiOn

The U.S. Department of State's Consular information Program advises Americans traveling and residing abroad through Country Specific information, Travel Alerts, and Travel warnings. Country Specific information exists for all coun-tries and includes information on entry and exit requirements, currency regula-tions, health conditions, safety and se-curity, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

For the latest security information, Americans living and traveling abroad should regularly monitor the Depart-ment's Bureau of Consular Affairs in-ternet web site at http://www.travel.state.gov, where the current worldwide Caution, Travel Alerts, and Travel warn-ings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov. For ad-




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ditional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/international.shtml.

The Department of State encourages all U.S. citizens traveling or residing abroad to register via the State Depart-ment's travel registration website or at the nearest U.S. embassy or consulate abroad. registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on se-curity conditions.

emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for call-ers outside the U.S. and Canada.

The national Passport information Center (nPiC) is the U.S. Department of State's single, centralized public contact center for U.S. passport infor-mation. Telephone: 1-877-4-USA-PPT (1-877-487-2778); TDD/TTy: 1-888-874-7793. Passport information is available 24 hours, 7 days a week. you may speak with a representative Monday-Friday, 8 a.m. to 10 p.m., eastern Time, exclud-ing federal holidays.

Travelers can check the latest health information with the U.S. Centers for Dis-ease Control and Prevention in Atlanta,

Georgia. A hotline at 800-CDC-inFO (800-232-4636)andawebsiteathttp://wwwn.cdc.gov/travel/default.aspx give the most recent health advisories, im-munization recommendations or re-quirements, and advice on food and drinking water safety for regions and countries. The CDC publication "health information for international Travel" can be found at http://wwwn.cdc.gov/travel/content yellowBook.aspx.

FUrTher eleCTrOniC inFOrMATiOn

Department of State web Site. Available on the internet at http://www.state.gov, the Department of State web site pro-vides timely, global access to official U.S. foreign policy information, includ-ing Background notes and daily press briefings along with the directory of key officers of Foreign Service posts and more. The Overseas Security Advisory Council (OSAC) provides security infor-mation and regional news that impact U.S. companies working abroad through its website http://www.osac.gov.

export.gov provides a portal to all export-related assistance and market information offered by the federal gov-ernment and provides trade leads, free export counseling, help with the export process, and more.

For more information visit www.amcham.org.sgMembership is open to companies of all nationalities.

it’s easy to understand why 78% of Fortune 500 companies based in singapore are amCham members and 53% of our members have been with us for 5 years or more.

The ameriCan ChamBer oF CommerCe in singapore By The numBers...

13 CommiTTees

38years oF experienCe

leaDing The Business CommuniTy

4,500memBers

700 Companies

120 CommiTTee

meeTings a year

160 evenTs a year

To purChase a Copy (at s$20 + gsT) please e-mail Dorcas Foo at [email protected].

For aDverTising enquiriesplease e-mail april Chan at [email protected]

For eDiTorial enquiriesplease e-mail liyana othman at [email protected]

This is the end of the preview for Doing Business in Singapore, The Gateway of Southeast Asia.

each company with an amCham membership receives a complimentary issue of this publication every year.

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Doing Business in Singapore: The Gateway to Southeast Asia