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CONTENTS

Message from the U.S. Ambassador

107 Doing Business in Brunei Darussalam

Message from the AmCham Chairman

111 Doing Business in Burma

118 Doing Business in Cambodia

The American Chamber of Commerce in Singapore

121 Doing Business in Indonesia

U.S. Commercial Service in Singapore

127 Doing Business in Laos

Doing Business in Singapore

132 Doing Business in Malaysia

Political Environment

138 Doing Business in the Philippines

Selling U.S. Products and Services

146 Doing Business in Thailand

28 Trade Regulations, Customs, & Standards

151 Doing Business in Vietnam

Investment Climate Statement

Singapore

Trade and Project Financing

159 American Community Organizations

Business Travel

158 U.S. Ports and States Represented in

83 Leading Sectors for U.S. Exports and Investments

91 Telecommunications

in Singapore

160 U.S. Commercial Service

Offices in the Asia-Pacific Region

166 U.S. Department of Commerce:

U.S. Commercial Service Export Assistance Center Directory

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Editors: Morgan Hughes, Chia Swee Hoon, Thomas McNutt, Hazlyn Aidzil, and Harry Chiang

Published By: The American Chamber of Commerce in Singapore 1 Scotts Road, Shaw Centre, #23-03 Singapore 228208 Tel: +65 6597-5730 Fax: +65 6732-5917 www.amcham.org.sg American Embassy U.S. Commercial Service 27 Napier Road Singapore 258508 Tel: +65 6476-9037 Fax: +65 6476-9080 http://export.gov/singapore/

Image courtesy of the Singapore Tourism Board

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AMBASSADOR’S MESSAGE

Welcome to the 2017 edition of Crossroads: Doing Business in Singapore and Southeast Asia. An annual collaboration between the U.S. Embassy and the American Chamber of Commerce in Singapore (AmCham Singapore), Crossroads is a comprehensive guide to conducting business in Singapore and the wider ASEAN region for American business leaders. It provides key insights on Singapore’s business environment, overviews of other ASEAN markets and highlights the top prospects for U.S. exports. This guide also lists helpful U.S. Government contacts to support your regional expansion efforts. Singapore continues to be one of the United States’ largest trading partners. With a per capita GDP of more than US$52,000 in 2015, Singapore is an excellent market for a variety of U.S. products and services. Singapore’s strong and open economy consistently ranks among the top 10 in the world for government transparency and robust intellectual property protection, making it a preferred regional business hub and distribution center for U.S. companies to reach Asia. 2016 is a landmark year of business opportunity. Since the inauguration of the ASEAN

Economic Community (AEC) at the end of 2015, the coming years hold immense promise for U.S. business in ASEAN. The Trans-Pacific Partnership (TPP) is advancing towards ratification as each of the 12 countries has signed the agreement. Plus, this year we commemorated 50 years of bilateral relations between the United States and Singapore and witnessed the historic State visit by Prime Minister Lee to Washington, which further highlighted the close relationship between the United States and Singapore. This truly historic visit illuminated both the breadth and depth of our bilateral cooperation and strengthened our partnership, building upon our shared vision of political, security, trade and investment, cultural exchanges, and people-to-people ties. We hope that you find this year’s edition of Crossroads an insightful guide for doing business in Singapore and the ASEAN region. I encourage you to make full use of our Embassy and our U.S. Commercial Service to help you succeed.

Kirk W. Wagar U.S. Ambassador

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AMCHAM SINGAPORE CHAIRMAN’S MESSAGE An increasingly prosperous Southeast Asian region offers American business growing opportunities. The ten Southeast Asian nations that comprise ASEAN continue to improve intra-regional connectivity and harmonize regulatory environments, enhancing the region’s trade and investment attractiveness. Singapore, as a key economic hub, is in a favorable position to promote business operations looking to grow in Southeast Asia. The American Chamber of Commerce Singapore (AmCham Singapore) and the U.S. Embassy in Singapore are pleased to present the 2017 edition of Crossroads: Doing Business in Singapore & Southeast Asia. This publication serves as a comprehensive guide to the region’s business climate, key contacts, and investment approaches. We hope this year’s edition contains useful information for the prosperous growth of your business. With the inauguration of the ASEAN Economic Community (AEC) at the end of 2015 and ongoing work on the AEC Blueprint 2025,

this year looks to advance flexibility and efficiency for regional operations and integration. U.S. companies across the region remain optimistic about economic growth in ASEAN supported by the emergence of a strong consumer class and improving government systems and infrastructure. ASEAN’s own growing market and its proximity to other rapidly rising markets such as China makes it an important region in the future global economy. We look forward to ever more involvement of U.S. business in this exciting region. AmCham aims to support you in your business efforts and stands ready to assist through supportive advocacy, actionable insights and meaningful connections.

Dwight Hutchins Chairman of the AmCham Board of Governors Managing Director, Accenture Strategy, Asia Pacific

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THE U.S. COMMERCIAL SERVICE (CS) PROMOTES U.S. EXPORTS, SUPPORTS U.S. BUSINESS INTERESTS IN THE REGION AND ENCOURAGES INVESTMENT INTO THE UNITED STATES.

CS Singapore offers a wide variety of programs and activities to help American companies prosper in the Association of Southeast Asian Nations (ASEAN).

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U.S. COMMERCIAL SERVICE SINGAPORE This section provides contact information for CS Singapore personnel, lists a few of the many industry sectors covered by CS Singapore’s Commercial Specialists and describes the major export promotion programs available to U.S. companies. Ms. CHIA Swee Hoon Senior Commercial Specialist

Ms. Luanne Theseira-O’Hara Commercial Specialist

Information Technology, Telecommunications, Banking & Insurance, Media/Content/Entertainment/ Broadcasting, Franchising

Medical Devices, Pharmaceuticals, Biomedical Sciences, Laboratory & Scientific Equipment, Cosmetics and Nutritional Supplements, Consumer Goods

Trade Shows CommunicAsia2017/Broadcast Asia 2017 May 23- May 25, 2017 http://www.communicasia.com http://www.broadcast-asia.com

Mr. NG Haw Cheng Commercial Specialist Aviation, Environment Control Equipment, Water, ACE, Building Products & Supplies, Safety & Security

Trade Shows Interpol World 2017 July 5-7, 2017 https://www.interpol-world.com/

Mr. CHAN Yiu Kei Commercial Specialist Oil & Gas, Tourism, Manufacturing

SelectUSA Program Mr. ONG Zhi Xiang (Zac) Commercial Assistant SelectUSA Summit June 18-20, 2017 National Harbor, MD Singapore Mailing Address American Embassy U.S. Commercial Service 27 Napier Road Singapore 258508 Tel: (65) 6476-9037 Fax: (65) 6476-9080 Email address: office.singapore@trade.gov Website: www.export.gov/singapore

Trade Shows OSEA 2016 November 29- December 2, 2016 http://www.osea-asia.com

Amy Vickery Desk officer for Singapore and Indonesia

ITB Asia 2017 October 25-27, 2017 http://www.itb-asia.com/

International Trade Administration U.S. Department of Commerce 1400 Constitution Ave., NW Washington, DC 20230 E-mail: Amy.Vickery@trade.gov Phone: (202) 482-3913

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U.S. COMMERCIAL SERVICE SINGAPORE

Our Products and Services The U.S. Commercial Service offers customized solutions to help your business enter and succeed in markets worldwide. Our global network of trade specialists will work one-on-one with you through every step of the exporting process, helping you to: ◊

Target the best markets with our world class research

◊

Promote your products and services to qualified buyers

U.S. exporters seeking general export information/assistance or country specific commercial information should consult with their nearest Export Assistance Center or by visiting www.export.gov. SelectUSA The SelectUSA program aims to attract investment and increase employment in the United States. Recognizing that the competitiveness and job-generating ability of a nation is determined by its desirability as a place for businesses to operate, SelectUSA was created at the federal level to showcase the United States as the world’s premier business location and to provide easy access to federal-level programs and services related to business investment. SelectUSA is designed to complement the activities of our states—the primary drivers of economic development in the United States.

Client Facilitation Services Business Facilitation Service (BFS) The BFS offers flexible solutions to let you do business when you are away from home. These services can include: pick-up

and delivery of bid documents; organize outreach and networking events to targeted members of the local business community; and meetings with specific companies or government agencies. Catalog Display at Trade Show Companies that wish to display catalogs at USDOC certified trade shows to promote their company products may use this service. CS Singapore will carry out a pre-show publicity campaign, collect leads, compile and send the leads to the U.S. company one week after the show. Customized Market Research (CMR) Use a CMR to access the international market intelligence you need to make informed business decisions regarding exporting. Our in-country experts help U.S. businesses develop a clear picture of the export prospects for specific products in any given market. You will receive customized market research reports that respond to your particular questions regarding: overall marketability of your products and services; market trends and size; customary distribution and promotion practices; market entry requirements; regulations, product standards and registration; key competitors; potential agents, distributors or strategic partners; and more. Gold Key Service (GKS) Our flagship service, the GKS includes: appointments with pre-screened firms interested in client’s product(s)/ service(s) or in joint venture; use of conference room for one-on-one meetings; market counseling by a Commercial Specialist; a Guide for U.S. exporters; relevant market research; hotel reservations at embassy rates; car rental arrangements as needed; escort for out-of-office calls as available.

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

Initial Market Check (IMC) The IMC offers a quick and brief assessment of how a specific product will sell in the country. This service helps U.S. businesses obtain a preliminary overview of the market, providing a basis for their market entry decision. Commercial Specialists or Assistants will get in touch with industry contacts to receive feedback on the market conditions with regards to a particular product and include their findings in the report. International Partner Search (IPS) The IPS provides a report on qualified over seas agents, distributors, manufacturers, representatives, joint venture partners, licensees, franchisees, or strategic partners who have examined a U.S. company’s materials

and expressed an interest in partnering with the company. Platinum Key Service (PKS) The 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 implemented according to a defined scope of work that includes specific deliverables agreed upon between the U.S. client and the U.S. Commercial Service.

U.S. COMMERCIAL SERVICE SINGAPORE

International Company Profile (ICP) Initiate and manage your international business relationships with confidence. Have the U.S. Commercial Service generate a customized ICP on your potential business partners. Researched and prepared by our Commercial Specialists, ICPs enable U.S. small and medium-sized businesses to more effectively evaluate overseas companies. You will receive detailed answers to your questions about the specific overseas companies in which you are interested - credit rating, profit and loss numbers, key officers, and our opinion on the overall viability of the firm in its market. We visit the companies in person to validate the information.

Single Company Promotion (SCP) Via our SCP service, we will assist a U.S. company or its local representative to organize a promotional event in Singapore which could include seminars, luncheons, cocktail receptions, etc. The service is tailored to the specific needs of the U.S. company. Single Location Promotion (SLP) SLP events are a fee-based service to develop specific activities for U.S. economic development organizations (EDOs) to help promote a U.S. region as an investment destination. At the EDO’s request, we can develop a customized scope of services -including individual meetings with government representatives and firms identified by the EDO, briefings, events, and other activities— to support the visit. ♦

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

DOING BUSINESS IN SINGAPORE

Image courtesy of the Singapore Tourism Board

Market Overview The Singapore economy expanded by 2.0% in 2015 and real GDP is forecasted to grow between 1.0% and 2.0% in 2016. Foreign investments, combined with investments through government-linked corporations, underpin Singapore’s open, heavily trade-dependent economy. U.S. exports to Singapore totaled US$28.7 billion in 2015, down 5.2% and U.S. imports from Singapore rose 10.8% to US$18.2 billion. China was Singapore’s top source of imports, followed by the United States, Malaysia, Taiwan, Japan, South Korea, Indonesia, Germany, United Emirates and Saudi Arabia. In 2016, the U.S. and Singapore commemorated 50 years of formal bilateral relations. Trade between the U.S. and Singapore has

continued to expand, thanks to one of the most successfulw FTAs on record, reaching US$47 billion in 2015. Singapore was the United States’ 13th largest export market and 17th largest trading partner in 2015. It is a U.S. partner in the Trans-Pacific Partnership (TPP) agreement, with 10 other Asia-Pacific countries. The TPP agreement concluded in October 2015 and signed in February 2016 will significantly liberalize trade and investment in the Asia-Pacific and advance U.S. economic interests in some of the fastest growing economies in the world. Singapore has been ranked #1 in the world for ease of doing business since 2003 by the World Bank. Five reasons U.S. companies should consider exporting to Singapore are: ◊

Major distribution and logistics hub and gateway to the ASEAN region

◊

Lack of corruption

◊

Favorable tax codes

◊

Strong intellectual property protection

◊

English speaking population

Market Challenges Singapore is generally a free port as more than 99% of all imports enter Singapore duty-free. For social and/or environmental reasons, it levies high excise taxes on distilled

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

television, licensing of online news websites, legal services, banking and healthcare industries. Details on the barriers can be found in the USTR 2016 National Trade Estimate Report on Foreign Trade Barriers available online at https://ustr.gov/sites/default/files/2016-NTEReport-FINAL.pdf The next 50 years will present new challenges to Singapore in the form of a maturing economy, aging population, growing influence of social media and increasing competition from other trade agreements and ASEAN partners.

DOING BUSINESS IN SINGAPORE

spirits and wine, tobacco products, motor vehicles, and gasoline. Competing with global suppliers remains a key challenge for American companies. With the ongoing restructuring of Singaporeâ&#x20AC;&#x2122;s economy, U.S. companies doing business in the country can expect increased operating costs and a continued tightening labor market. U.S. companies also face technical import barriers for beef, pork and poultry products, and restrictions on satellite dishes and foreign newspapers. Service barriers include pay

Image courtesy of the Singapore Tourism Board

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

DOING BUSINESS IN SINGAPORE

Market Opportunities U.S. exporters will find a promising market for the following industry sectors in Singapore: aircraft and parts, medical devices, environmental control equipment, computer hardware, software & peripherals, telecommunication equipment, laboratory and scientific equipment, oil & gas, semiconductors, industrial automation and education. The following are major infrastructure projects, significant government procurements and business opportunities in Singapore: ◊

US$500 million second Liquid National Gas (LNG) terminal is being planned;

◊

US$150 million Very Large Floating Structure (VLFS) tender is postponed to the second half of 2016 due to the downturn in the oil and gas sector;

◊

US$580 million blueprint to grow the clean energy industry in Singapore;

◊

Construction of a new 300-bed hospital for infectious disease slated for completion by 2018 and a new US$135 million National Heart Center Building by 2020;

◊

Construction of up to 25 public nursing homes by 2020, and four public acute medical care hospitals and up to 12 polyclinics by 2030;

◊

Private medical groups will spend more than US$406 million to build, expand and upgrade their healthcare facilities. Renovations at the Raffles Hospital are expected to be completed by the third quarter of 2017

◊

Construction of Singapore Changi Airport Terminal 4 and Terminal 5;

◊

US$2.6 billion Phase 3 and 4 port expansion at Pasir Panjang Terminal;

◊

The national water agency, the Public Utilities Board (PUB), has been expanding the water infrastructure over the years and is still forging ahead with further developments. Areas of particular interest include filtering and purifying machinery and apparatus, technologies involving wastewater recycling and treatment, and desalination technologies;

◊

US$2.0 billion of Singapore Government ICT tenders in the Financial Year 2016 (April 2016-March 2017).

◊

First annual FinTech Festival in November 2016

Market Entry Strategy Many U.S. exporters successfully use agents or distributors to serve the Singapore and other Southeast Asia markets while over 3,700 U.S. firms have set up operations in the country. Singapore firms are aggressive when it comes to representing new products and usually respond enthusiastically to new opportunities. Price, quality and service are the three main factors for Singapore buyers. U.S. exporters should be aware that competition is strong and buyers expect good after-sales service. Selling techniques vary according to the industry and product and are comparable to the techniques used in most other sophisticated markets. It is also important for U.S. firms to visit their representatives and maintain close contact with them. ♦

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POLITICAL ENVIRONMENT

U.S.-Singapore Relations The United States recognized Singapore’s independence from Malaysia in 1965 and has had formal diplomatic relations with Singapore since 1966. The United States and Singapore have a comprehensive relationship with productive cooperation on economic, political, and security issues. Singapore’s support for regional cooperation harmonizes with U.S. policy in the region, forming a solid basis for amicable relations between the two countries. In early 2012, the United States and Singapore held the first meeting of their Strategic Partnership Dialogue, followed by a ministerial meeting that introduced new mechanisms to further

strengthen partnership and cooperation for the benefit of the Asia-Pacific region, including the Third Country Training Program (TCTP), a joint technical assistance program for developing countries. TCTP projects have been ongoing since 2012 and focus on training officials in the sub-Mekong region in the areas of environment, health, urban planning, and disaster management. The second Strategic Partnership Dialogue was held in Singapore on January 27, 2014 and the third took place in Washington on February 12, 2015. There are a large number of Americans living in Singapore with approximately 3,700 U.S. companies established in the country, a

By soeperbaby. (Own work), via Flickr. www.flickr.com/photos/soeperbaby/6542449685/

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POLITICAL ENVIRONMENT

large number of which use Singapore as their regional headquarters. Many Singaporeans visit and study in the United States. The U.S. Government sponsors visitors from Singapore each year under the International Visitor Program; provides Fulbright awards to enable selected American professors to teach or conduct research at the National University of Singapore and the Institute of Southeast Asian Studies; awards scholarships to outstanding Singaporean students for graduate studies at American universities and to American students to study in Singapore; and sponsors programs related to American culture in Singapore. The East-West Center and private American organizations, such as the Asia and Ford Foundations, also fund exchanges involving Singaporeans.

U.S. Assistance to Singapore The EXBS program has been active in Singapore since 2003 and has provided over $2 million in technical exchanges and assistance. EXBS’ goals in Singapore are to encourage active targeting and enforcement of export controls, full compliance with the four multilateral export control regimes, and cooperation on counter-proliferation prosecution and investigation matters. EXBS assistance for Singapore in 2014 totaled $250,000.

largest foreign investor, with U.S. investments reaching $179.8 billion in 2014. Singapore is a visa waiver program country, which allows its nationals to travel to the United States for certain business or tourism purposes for stays of 90 days or less without obtaining a visa.

Singapore’s Membership in International Organizations Singapore and the United States belong to a number of the same international organizations, including the United Nations, AsiaPacific Economic Cooperation forum, ASEAN Regional Forum, International Monetary Fund, World Bank, and World Trade Organization.

Bilateral Representation The U.S. Ambassador to Singapore is Kirk Wagar (http://www.state.gov/r/pa/ei/ biog/214039.htm); other principal embassy officials are listed in the Department’s Key Officers List (http://www.state.gov/ documents/organization/111812.pdf). Singapore maintains an embassy (https://www.mfa.gov.sg/content/mfa/ overseasmission/washington.html) in the United States at 3501 International Place NW, Washington, DC 20008 (tel. 202-537-3100). ♦

Bilateral Economic Relations The United States has a bilateral free trade agreement with Singapore, which entered into force in 2004. Since that time, bilateral trade has increased over 45%, reaching $46.5 billion in goods trade in 2015. The two countries participate in the Trans-Pacific Partnership negotiations that seek to develop a regional trade agreement. The United States is Singapore’s

Image courtesy of the Singapore Tourism Board

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SELLING U.S. PRODUCTS & SERVICES Using an Agent to Sell U.S. Products and Services Many American exporters use agents or distributors to serve the Singapore market and other markets in Southeast Asia. Finding prospective partners usually presents no problem as Singapore firms are aggressive when it comes to representing new products and typically respond enthusiastically to new opportunities. Most American companies that use the U.S. Commercial Service (CS) Singapore client facilitation services in Singapore successfully find agents or distributors. Because of the relatively small size of the Singapore market, potential partners often ask to cover regional territories. With a strong history of trade, Singaporean companies are particularly successful in taking products to the region. CS Singapore offers a wide range of programs and has an excellent record of success in introducing U.S. firms to the market. A list of services offered by CS Singapore can be obtained from our website at www.export. gov/singapore.

Establishing an Office American firms wishing to establish a presence in Singapore have several straightforward options to do so. They can establish a Representative Office (RO), register as a Branch of the parent, or incorporate as a Singapore company. General

information on establishing an office can be found at http://www.enterpriseone. gov.sg/en/Business%20Stages/Start.aspx. If an American company wishes to conduct operations in Singapore, it should register a branch office or incorporate a local company with the Accounting and Corporate Regulatory Authority (ACRA) – http://www.acra.gov.sg. ACRA publishes an excellent guide that takes the first time registrant through the process of establishing a branch office or incorporating in Singapore. REPRESENTATIVE OFFICE | Setting up a

Representative Office in Singapore can be a good way for American firms to explore business opportunities in Singapore or the region. ROs in banking and insurance need to register with the Monetary Authority of Singapore (MAS) and meet the guidelines or requirements laid out by the MAS. ROs in all other industries need to register with International Enterprise (IE) Singapore. ROs can only carry out market research, conduct feasibility studies or work as a liaison on behalf of the parent company. RO may not conduct business directly or on behalf of the parent company. ROs cannot ship, transship or store goods in Singapore. American firms can either work through an agent or distributor to do so or establish their own commercial presence.

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

SELLING U.S. PRODUCTS & SERVICES 22

BRANCH OFFICE | For Branch Offices, the

Singaporeans continue to seek out new franchise concepts to introduce into the country. The success of selling a franchise in Singapore is based on a number of factors including brand name, up-front costs and royalties, the concept’s uniqueness, and the flexibility of the franchise agreement. U.S. franchisors should note that real estate in Singapore is prohibitively expensive and finding a good location is a challenge, especially for those ESTABLISHING A SINGAPORE BUSINESS | in the retail and F&B business. American firms can also register a sole-proWith its strategic location and well-deprietorship, partnership, limited liability veloped infrastructure, Singapore serves as partnership or incorporate a company in the regional showcase and distribution cenSingapore. For a sole proprietorship the pro- ter for U.S. franchisors wishing to enter othcess takes about one day, while more com- er Asian markets. There have been instances plex business entities can take up to six weeks where visitors from the region saw a franand require lawyers and accountants to as- chise concept in Singapore and were interestsist with incorporation documents. A point ed in bringing it back to their own countries. to bear in mind is that registration/incorpo- In 2015, Singapore attracted over 15 million ration of a company does not automatically visitors from around the world. The country’s mean that expatriate staff can be assigned multi-ethnic society also makes it an ideal to Singapore. Foreign staff must obtain em- location for foreign franchisors to test their ployment passes from the Singapore Ministry concepts and use the reaction to gauge the of Manpower. acceptance of their franchise in Asia. There are also opportunities for U.S. franchisors to work with Singapore companies to access markets in nearby countries. Singapore inFranchising Singapore is home to a wide variety of vestors may buy franchise licenses for addifranchise concepts with more than 500 con- tional markets in the Southeast Asian region cepts and over 30,000 franchisees operat- and not for Singapore alone. ing in the country. Foreign franchises are well received and the United States is by far the largest supplier of foreign franchises in Direct Marketing the country. There are American franchisThe direct marketing industry in es in practically every industry. McDonald’s, Singapore began in the early 1990s and now Burger King, KFC, Wing Zone, Krispy Kreme, includes direct mail, telemarketing, televiSubway, Starbucks, Ben and Jerry’s, Gymboree, sion sales, mail order, call centers, fulfillment New Horizons, Mister Minit, Avis, Toys R Us, and e-commerce firms. The Direct Marketing On-line Trading Academy, Comfort Keepers, Association of Singapore represents both Contours Express, and many others have op- users and service providers. The direct erations in Singapore. marketing industry is well supported by Companies Act requires a foreign company to appoint two local agents in Singapore to act on behalf of the company. The agents must be ordinarily resident in Singapore i.e. a Singaporean Citizen, a Singapore Permanent Resident, or a person who has been issued an EntrePass/Approval-In-Principle letter/ Dependent Pass.

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

Joint Ventures/Licensing Foreign investors are not required to enter into joint ventures or cede management control to local interests. In Singapore, local and foreign investors are subject to the same basic laws. Apart from regulatory requirements in some sectors, the government screens investment proposals only to determine eligibility for various incentive regimes. Singapore places no restrictions on reinvestment or repatriation of earnings or capital. Licensing is also a viable alternative in Singapore. With one of the strongest IPR protection schemes in Asia, a well-developed legal framework and an advanced manufacturing base, Singapore is an attractive location for American licensors.

Selling to the Government Singapore is a signatory to the WTO Agreement on Government Procurement. The U.S.-Singapore FTA provides increased access for U.S. firms to Singaporeâ&#x20AC;&#x2122;s central government procurement. U.S. firms generally find Singapore to be a receptive, open and lucrative market. The Singaporean government procurement system is considered by many American firms to be fair and transparent. However, some U.S. and local firms have expressed concerns that government-owned and government-linked companies (GLCs) may receive preferential treatment in the government procurement process. Singapore denies that it gives any preferences to GLCs or that GLCs give preferences to other GLCs. Procurement recommendations are made at the technical level and then forwarded to management for concurrence. Bidders should work closely with the project manager to determine the relative importance of decision criteria such as technical capability and price. Bidders must meet the specifications set out in the tender. Post mortem hearings or meetings for losing bidders are not required or common. Government procurement regulations are contained in Instruction Manual 3, available from the Ministry of Finance. The Singapore Government also advertises its tenders on its website at www.gebiz.gov.sg.

SELLING U.S. PRODUCTS & SERVICES

service companies including: Singapore Post, Singapore Telecom Call Center, Teledirect, TNT International Mail, Ogilvy One and MMS Consultancy, among many others. The Singapore government also actively supports the industry by assisting companies (through financial incentives) in using direct marketing for their trading activities through its Direct Marketing Program. The Direct Selling Association of Singapore (DSAS), a self-regulatory body, was established in 1976. It provides a forum for all direct-selling companies in Singapore to discuss problems of common concern and to codify a high standard of business practices throughout the industry. The DSAS has adopted a Code of Conduct by which member-companies in the Association must abide by in every aspect of business. Through the Code of Conduct, DSAS aims to further inculcate the spirit and practice of ethical direct-selling within its member-companies, setting examples for others to follow.

Distribution & Sales Channels Singaporeâ&#x20AC;&#x2122;s distribution and sales channels are simple, direct and open to the participation of foreign firms established in Singapore. Because of Singaporeâ&#x20AC;&#x2122;s role as a regional hub, most local distributors will also have knowledge of regional distribution rules and regulations. Most consumer goods are imported by stocking distributors who resell to retailers.

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

SELLING U.S. PRODUCTS & SERVICES

Some goods are imported directly for sale in the importerâ&#x20AC;&#x2122;s own retail outlets.

Express Delivery Changi Airport is served by more than 100 airlines flying to some 220 cities in about 60 countries and territories worldwide. Among these, 15 airlines operate more than 300 weekly scheduled pure freighter flights linking Singapore to about 17 cities in 7 countries. As one of the worldâ&#x20AC;&#x2122;s busiest airports for air cargo, Changi Airport handles over 1.8 million tons annually, with transshipment volume accounting for almost half of the throughput. At Changi Airport, stringent standards are set to ensure that ground handlers deliver world class services to the cargo agents and the shippers while cargo clearance through the Customs checkpoints remains seamless and efficient. Performance Standards

Target

Cargo documents available within 2 hours of passenger aircraft arrival

90%

Cargo documents available within 4 hours of freighter aircraft arrival

90%

Cargo available within 3.5 hours of passenger aircraft arrival

90%

Cargo available within 5.5 hours of freighter aircraft arrival

90%

Cargo cleared by customs within 13 minutes

90%

Selling Factors and Techniques Price, quality and service are the main selling factors in Singapore. Prospective exporters to Singapore should be aware that competition is strong and that buyers expect good after-sales service. Selling techniques vary according to the industry or the product involved, but they are comparable

to the techniques used in any other sophisticated market. Returning merchandise for a refund is generally not an accepted practice.

eCommerce Singapore is one of the first countries in the world to enact a law that addresses issues that arise in the context of electronic contracts and digital signatures. The Electronic Transactions Act (ETA) (Cap 88) was enacted to provide a legal foundation for electronic signatures, and to give predictability and certainty to contracts formed electronically. The Singapore ETA follows closely the UN Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce, which sets the framework for electronic laws in many countries. The full text of the ETA can be found at the Singapore Statutes Online website: http://statutes.agc.gov.sg/aol/search/display/ view.w3p;query=DocId%3A294c715e-89c848c4-8e14-58b9ea4f1c29%20Depth%3A0%20 Status%3Ainforce;rec=0

Trade Promotion and Advertising There are many specialized trade magazines in Singapore and scores of trade fairs that can be used to promote U.S. goods and services. The major English-language daily newspapers are the Straits Times and the Business Times. They are available at http://www.straitstimes.com and http:// www.businesstimes.com.sg. The major Chinese daily is Lianhe Zaobao (http://www. zaobao.com). Leads for local advertising and promotional service agencies can be found at http://www.yellowpages.com.sg. Major trade fair organizers include Singapore Exhibition Services (http://www.sesallworld.

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

Pricing Pricing is very competitive. Major department stores and retail chains offer fixed-price merchandise, while the smaller shops expect buyers to bargain. Hard bargaining is common in the commercial and industrial sectors as well, where buyers usually want a discount and vendors inflate their initial offers accordingly. Credit terms of 30-60-90 days are common. Buyers will often retain 10% of the sales price for major electronic equipment purchases until the vendor has installed the machine and it is performing according to specifications. Typical Product Pricing Structures: Depending on the type of product, importer mark-ups range from 20-40%, while retail mark-ups are often more than 100%. Industrial goods are brought in by stocking distributors, who add on at least 20% before sale to end-users, or by agents whose commissions generally run about 7-10%. These mark-ups are approximate, and will vary widely, depending on the product and the contractual relationship in question.

job cultivating old customers and developing new ones.

Due Diligence Entities wanting to carry out business in Singapore must register with the Accounting and Corporate Regulatory Authority (ACRA). CS Singapore offers the International Company Profile (http://www.export.gov/ singapore/servicesforu.s.companies/ internationalcompanyprofile/index.asp) service to American firms wishing to check the bona fides of existing or potential partners.

SELLING U.S. PRODUCTS & SERVICES

com/), Reed Exhibition Services (http://www. reedexpo.com.sg/), Experia Events (http:// www.experiaevents.com) and Koelnmesse (http://www.koelnmesse.com.sg).

Sales Service/ Customer Support Good sales and customer support are vital in Singapore. The market is so price competitive that client-focused sales support or customer service can make a big difference. Singapore distributors respond well to training on new products, and if properly supported by the U.S. manufacturer will do a good

Image courtesy of the Singapore Tourism Board

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

SELLING U.S. PRODUCTS & SERVICES

Alternately, U.S. firms can run a check on Singapore companies by accessing the ACRA database via www.acra.gov.sg or using credit agencies such as Infocredit D&B (http://www. dnb.com.sg).

Local Professional Services

LEGAL SERVICES | A list of service

providers can be found at The Law Society of Singapore website: http://www.lawsociety. org.sg/forPublic/FindaLawFirmLawyer/ FindaLawFirm.aspx ACCOUNTING AND TAX SERVICES | A

list of service providers can be found at the Institute of Singapore Chartered Accountants website: http://iscadirectory.isca.org.sg/

Principal Business Associations Singapore Business Federation (http://www.sbf.org.sg): The Singapore Business Federation (SBF) is the apex business chamber that champions the interests of the Singapore business community in trade, investment and industrial relations. It represents 21,500 companies, as well as key local and foreign business chambers, that contribute significantly to the Singapore economy. Its formation was to foster a more comprehensive organization and representation of the business community’s interests in Singapore and abroad. As the apex business chamber, SBF presents a strong collective voice that: ◊

Acts as the bridge between the business community and government in Singapore to create and enhance

a conducive business environment ◊

Represents the business community in bilateral, regional and multilateral fora for the purpose of promoting trade expansion and business networking in Singapore and abroad

◊

Helps companies build competitiveness and resilience through capacity building initiatives and services

◊

As Business Voice and Value Creator, SBF is committed to advocating key issues that impact the Singapore business community, helping enterprises develop capabilities and venture overseas.

American Chamber of Commerce in Singapore (http://www.amcham.org.sg/): The American Chamber of Commerce in Singapore (AmCham) is the leading international business association in Singapore, with over 5,000 members representing more than 750 companies. American companies’ direct investment in Singapore exceeds an estimated US$229 billion. Its mission is to promote the interests of AmCham members in Singapore and the region by providing insights, advocacy and connections through its programing and publications. AmCham represents its members at the highest levels of government in Singapore and Washington, and advocates on policy issues concerning them.

Limitations on Selling U.S. Products and Services The business limitations are confined primarily to the professional services such as the legal, accounting and tax services, and

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

Selling U.S. Products and Services Web Resources http://www.buyusa.gov/singapore http://singapore.usembassy.gov/legal_information.html http://www.enterpriseone.gov.sg http://www.gov.sg http://www.gebiz.gov.sg http://statutes.agc.gov.sg http://www.imda.gov.sg http://www.sg http://www.tech.gov.sg http://www.straitstimes.com.sg http://www.businesstimes.com.sg http://www.zaobao.com http://www.yellowpages.com.sg http://www.sesallworld.com http://www.reedexpo.com.sg http://www.experiaevents.com http://www.koelnmesse.com.sg http://www.acra.gov.sg http://www.dnb.com.sg http://www.StopFakes.gov http://www.isca.org.sg/ http://www.lawsociety.org.sg/forPublic/ FindaLawFirmLawyer/FindaLawFirm.aspx http://iscadirectory.isca.org.sg/ http://statutes.agc.gov.sg/aol/search/display/ view.w3p;query=DocId%3A294c715e-89c848c4-8e14-58b9ea4f1c29%20Depth%3A0%20 Status%3Ainforce;rec=0

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

SELLING U.S. PRODUCTS & SERVICES

engineering and architectural services. Details can be found in the “Investment Climate Statement” section. ♦

TRADE REGULATIONS, CUSTOMS, & STANDARDS

Import Tariff Singapore is generally a free port and an open economy. More than 99% of all imports into Singapore enter the country duty-free. For social and/or environmental reasons, Singapore levies high excise taxes on distilled spirits and wine, tobacco products, motor vehicles and petroleum products. Singapore levies a 7% Goods and Services Tax (GST). For dutiable goods, the taxable value for GST is calculated based on the CIF (Cost, Insurance and Freight) value plus all duties and other charges. In the case of non-dutiable goods, GST will be based on the CIF value plus any commission and other incidental charges whether or not shown on the invoice. If the goods are dutiable, the GST will be collected simultaneously with the duties. Special provisions pertain to goods stored in licensed

warehouses and free trade zones. See http:// www.iras.gov.sg and http://www.customs.gov. sg for more information.

Inland Revenue Authority of Singapore Comptroller of Goods & Service Tax 55 Newton Road Revenue House Singapore 307987 Tel: +65 1800 356 8633 (General Helpline) Fax: +65 6351 3553 Website: http://www.iras.gov.sg

Singapore Customs

55 Newton Road #10-01 Revenue House Singapore 307987 Tel: +65 6355 2000 Fax: +65 6250 8663 Email: customs_documentation@customs.gov.sg Website: http://www.customs.gov.sg

Image courtesy of the Singapore Tourism Board

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

Singapore maintains one of the most liberal trading regimes in the world, but U.S. companies face several trade barriers. Singapore maintains a tiered motorcycle operator licensing system based on engine displacement which, along with a road tax based on engine size, adversely affects U.S. exports of large motorcycles. Singapore also restricts the import and sale of non-medicinal chewing gum. For social and/or environmental reasons, it levies high excise taxes on distilled spirits and wine, tobacco products, and motor vehicles. Services barriers include sectors such as pay TV, audiovisual and media services, licensing of online news websites, legal services, banking, and cloud computing services for financial institutions. Details can be found in the USTR Report on Foreign Trade Barriers that is available online at https://ustr.gov/sites/ default/files/2016-NTE-Report-FINAL.pdf and http://www.ustr.gov. While Singapore’s Agri-Food and Veterinary Authority (AVA) follows OIE and Codex guidelines, AVA can be overly strict and risk averse; and this has generated several ongoing trade barriers issues—mostly SPS—with the United States. AVA requires health certification for a wide range of uncooked meats and shelf fish; food inspectors regularly pull samples off the shelves of retail stores for laboratory testing of preservative and additives; and all meat imports are visually inspected and subjected to regular testing for salmonella / other micro bacteria. Regarding Pathogen Reduction Treatments (PRT), AVA now allows nine instead of eight out of the 41 antimicrobial washes currently allowed in the United States. As for U.S. pork and pork products, AVA requires U.S. fresh and chilled pork products to be tested for trichinae even though Trichinella

spiralis in U.S. commercial swine rarely shows up as U.S. pork producers practice stringent biosecurity protocols. The Trichinella testing is both expensive and time consuming, and thus creates a barrier to international trade. AVA also imposes strict shelf life requirements on frozen and processed meat and poultry products that limit the time after slaughter/ manufacture that a product must enter Singapore. The USDA and AVA had concluded discussions on U.S. beef that allows for a greater access and range of U.S. beef products to Singapore. As of June 2015, these include bone-in, fillets and a diverse variety of processed beef products. Prior to this, Singapore restricted U.S. beef to only boneless beef from cattle less than 30 months of age. The U.S. was officially categorized by the World Organization for Animal Health (OIE) as negligible risk for BSE in 2013. For beef offal and processed products, added requirements and some restrictions still apply; and thus, this will require further discussion for greater market access into Singapore. After the recent successful discussion between APHIS and AVA, the temporary bans of U.S. poultry due to HPAI outbreaks have been scoped down from State to county level; and for LPAI outbreaks, the bans have been reduced from county level to 10 km radius around the affected premises.

TRADE REGULATIONS, CUSTOMS, & STANDARDS

Trade Barriers

Import Requirements & Documentation Companies must make an inward declaration for all goods imported into Singapore. All imports require an import permit although this is largely a statistical requirement for most goods. Details can be found at http://www. customs.gov.sg/businesses/importing-goods/ import-procedures/types-of-import-permits.

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

TRADE REGULATIONS, CUSTOMS, & STANDARDS

BONA FIDE TRADE SAMPLES | The import of trade samples that is below US$295 is not subject to payment of duty and/or GST. In addition, no permit is required for their import. Bona fide trade samples (excluding liquors and tobacco) may be imported for the following purposes: for the purpose of soliciting orders for goods to be supplied from abroad; for demonstration in Singapore to enable manufacturers in Singapore to produce such articles to fulfill orders from abroad or by a manufacturer for the purpose of copying; and for testing or experimenting before producing such articles in Singapore. More information can be found at http://www. customs.gov.sg/businesses/importing-goods/ import-procedures/importing-trade-samples. MEDICAL AND MEDICINAL PRODUCTS IM PORT REGULATIONS | All medical devices

and medicinal products, prescription and over-the-counter pharmaceuticals imported or sold in Singapore are required to be licensed by the Health Sciences Authority. The onus of applying for a product license rests with the license holder, i.e., a locally registered company that is responsible for the safety, quality and efficacy of the product. If U.S. companies have concerns regarding product licensing, they should contact the Health Sciences Authority (http://www.hsa.gov.sg) or ask a potential distributor to submit samples to the Health Sciences Authority.

countries require specific licensing. Singapore is a major transshipment hub for the Asian market. While many items may not initially require an export license, exporters need to be aware that more than half of items exported to Singapore are re-exported to third countries that may have more stringent licensing requirements that require additional export licenses. The Bureau of Industry and Security (BIS) is responsible for implementing and enforcing the Export Administration Regulations (EAR), which regulate the export and re-export of certain commercial items while other U.S government agencies regulate more specialized exports. For example, the U.S. Department of State has authority over defense articles and defense services. A list of agencies involved in export controls can be found at www.bis.doc. gov or in Supplement No. 3 Part 730 of the EAR which is available on BI Website at www. gpo.gov. If you have any questions or would like information on export controls, please contact our Regional Export Control Officer at http://export.gov/singapore/contactus. To find out more about Export Control Reform, please visit http://www.export.gov/ecr/. A list that consolidates eleven export screening lists of the Departments of Commerce, State and the Treasury into a single search as an aid to industry in conducting electronic screens of potential parties to regulated transactions is available here: http://export.gov/ecr/eg_ main_023148.asp.

U.S. Export Controls Companies wanting to export controlled items to Singapore must apply for licenses from the appropriate government agencies in the United States. U.S. goods being re-exported from intermediary consignees in Singapore to ultimate consignees in third

Temporary Entry Goods may be temporarily imported under the Temporary Import Scheme for a period of six months and for purposes such as repairs, testing and stage performances, auctions, displays, exhibitions or other similar

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

name, list of ingredients, mandatory warning, advisory statements or allergens declarations, net weight or volume, date mark, nutritional information panel, instructions for use or storage, country of origin, the name and address of the business and manufacturer and importer. Repackaged foods must be labeled to show (in English) the appropriate designation of food content printed in capital letters at least 1/16 inch; whether foods are compounded, mixed or blended; the minimum quantity stated in metric net weight or measure; the name and address of ADMISSION TEMPORAIRE/ TEMPORARY the manufacturer or seller; and the country of ADM ISS ION (ATA) CARNET | A foreign origin. Illustrations must accurately describe exhibitor may import exhibition goods into the true nature or origin of the food. Foods Singapore using an ATA carnet. When the having defined standards must be labeled exhibitor arrives in Singapore, the carnet to conform to those standards and be free must be produced together with the goods from added foreign substances. Packages to Customs at the entry point for verification of food described as “enriched”, “fortified”, and endorsement. When goods covered by “vitaminized” or in any other way that implies a carnet are taken out of Singapore, the that the article contains added vitamins or foreign exhibitor must produce the carnet minerals must show the quantity of vitamins together with the goods to Customs at the or minerals added per metric unit. More exit point for verification and endorsement. information can be found at: http://www. GST will be recovered from the carnet ava.gov.sg/explore-by-sections/food/labellingholder on any item that is unaccounted packaging-information/labelling-guidelinesfor. For more information on Temporary for-food-importers-manufacturers and http:// Importation for Exhibition, Auction & Fairs www.ava.gov.sg/explore-by-sections/food/ or Temporary Import Scheme, please contact labelling-packaging-information/labellingthe following or visit http://www.customs. guidelines-for-food-importers-manufacturers. gov.sg/businesses/importing-goods/ There are two levels of labeling requiretemporary-import-scheme. ments for medicinal products. Administrative labeling requirements are not statutory requirements and are specified in the Health Labeling/ Sciences Authority’s Guidance on Medicinal Product Registration in Singapore. Compliance Marking Requirements Labels are required on imported food, is checked during the product registration prodrugs, liquors, paints and solvents and must cess, prior to granting of marketing approvspecify the country of origin. al. For legal labeling requirements, these are A food label should contain core stipulated in the legislation related to meinformation such as the prescribed food dicinal products regulation in Singapore and

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

TRADE REGULATIONS, CUSTOMS, & STANDARDS

events without the payment of duty and/or GST. A banker’s guarantee is required under the Temporary Import Scheme. The temporary imports are covered by a Customs Inward Permit or a Carnet. Goods temporarily imported must be re-exported within the prescribed period using a Customs Outward permit. GST has to be paid if the goods are not subsequently re-exported. The procedures governing such importation can be found at http://www.customs.gov.sg/leftNav/trad/ Temporary+Import+Scheme.html.

TRADE REGULATIONS, CUSTOMS, & STANDARDS

are subject to the Health Sciences Authority’s surveillance program. The labeling requirements include the name of the active ingredient, quantitative particulars, product license number and name and address of the dealer. More information may be obtained at http://www.hsa.gov.sg/content/dam/HSA/ HPRG/Useful_Information_for_Applicants/ Legislation/MEDICINES%20(LABELLING)%20 REGULATIONS.pdf. Labeling and advertising legislation also applies to the sale of vitamins and dietary supplements. Generally, labeling laws require that: 1) the composition of the products is disclosed in English, 2) labels/packaging materials not contain any references to diseases/conditions as specified in the schedule to the Medicines (Advertisement & Sale) Act (http://statutes.agc.gov.sg/aol/home.w3p); and 3) the advertising/sale promotion of the product in the public media be approved by the Health Sciences Authority.

As the national Safety Authority for 45 categories of Controlled Goods as well as the Weights and Measures Authority, SPRING administers two marks, namely, the SAFETY Mark and the ACCURACY Label. The “SAFETY Mark” is intended for selected electrical and electronic products as well as gas appliances which are sold to consumers for use in Singapore households. The “SAFETY Mark” helps consumers to identify registered Controlled Goods. All registered Controlled Goods must be tested to specific international and national safety standards and certified safe by designated product certification bodies. The products are individually marked with the “SAFETY Mark” either on the product or the packaging. The “SAFETY Mark” is unique and traceable to the registrant and the registered models. More information on the registration for the SAFETY Mark can be obtained from: http://www.spring.gov.sg/productsafety. As the Safety Authority, SPRING also

Image courtesy of the Singapore Tourism Board

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

More information can be obtained from: www. imda.gov.sg. For the construction industry, the Building and Construction Authority uses the Construction Quality Assessment System (CONQUAS) to objectively rate building works. Details are available at: www.bca.gov.sg.

Prohibited & Restricted Imports Special import licenses are required for certain goods, including strategic items, hazardous chemicals, radioactive materials, films and videos, video games, arms and ammunition, agricultural biotechnology products, food derived from agricultural biotechnology products, medical devices, prescription drugs, over-the-counter drugs, vitamins with very high dosages of certain nutrients, and cosmetics and skin care products. The import of items such as lighters in the shape of pistols or revolvers, firecrackers, handcuffs, shell casings, and silencers is prohibited. Generally, the import of goods that the government determines as posing a threat to health, security, safety and social decency is controlled. A full list of prohibited products and controlled goods and their corresponding controlling agencies can be obtained from the Singapore Customs website at http:// www.customs.gov.sg/leftNav/trad/TradeNet/ List+Of+Controlled+Goods+-+Imports.html and http://www.customs.gov.sg/leftNav/trav/ Controlled+and+Prohibited+Goods.html. Companies must make an outward declaration to export or re-export goods out of Singapore. Selected items are subjected to controls on exports of goods from Singapore. Items such as rubber, timber, granite, satellite dishes and receivers, and chlorofluorocarbons are subjected to export control and

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

TRADE REGULATIONS, CUSTOMS, & STANDARDS

administers the Consumer Protection (Consumer Goods Safety Requirements) Regulations (CGSR) to enhance the safety of general consumer goods in the household. Such consumer goods include toys, children’s products, apparel and furniture. These regulations bring the safety of Singapore’s consumer goods in line with internationally accepted standards. There is no approval needed from the Safety Authority. The authority carries out regular market surveillance to protect consumers against unsafe consumer goods. More information on CGSR can be obtained from: www.spring.gov.sg/CGSR. The “ACCURACY Label” covers weighing and measuring instruments intended for trade use. In Singapore, all weighing and measuring instruments used for trade purposes (like price computing scales in supermarkets, baggage weighing machines at airports and seaports as well as fuel dispensers at petrol stations) are regulated under the Singapore Weights and Measures Act and Regulations. Before an ACCURACY Label can be affixed on the instrument, it will first need to be pattern registered with SPRING. Thereafter, every individual weighing or measuring instrument will need to be verified fit for trade use and affixed with a tamper-proof seal and the ACCURACY Label by SPRING-appointed Authorised Verifiers (AVs). Competent private sector bodies such as manufacturers, installers, suppliers and repairers of weighing and measuring instruments may apply to be designated by SPRING to handle the verification of weighing and measuring instruments for trade use. More information on the ACCURACY Label can be obtained from: www.spring.gov.sg/wmo. Telecommunication equipment imported for use in Singapore is subject to “Type Approval” by the Infocomm Media Development Authority of Singapore (IMDA).

TRADE REGULATIONS, CUSTOMS, & STANDARDS

licensing. Items under export control must be endorsed or licensed by the appropriate government agencies before they can be exported. More information may be obtained at http://www.customs.gov.sg/leftNav/ trad/TradeNet/List+Of+Controlled+Goods++Exports.html. The Strategic Trade Scheme (STS) is an enhanced permit regime that seeks to promote effective internal export control compliance and provide legitimate traders with greater facilitation in permit declarations involving transactions of strategic goods for non-WMD (Weapons of Mass Destruction) related end-use. The STS comprises 3 tiers whereby the level of facilitation and flexibility accorded to a company will be contingent upon the quality of their internal export control compliance program. More information may be obtained at http://www.customs.gov. sg/~/media/cus/files/business/strategic%20 goods%20control/2016-02-04%20sts%20 handbook.pdf?la=en.

Customs Regulations In Singapore, valuation for customs purposes is based on the Customs Valuation Code (CVC). The primary basis for customs value is the transaction value of the imported goods when sold for export to Singapore. Where goods are dutiable, ad valorem or specific rates may be applied. An ad valorem rate, which is most commonly applied, is a percentage of the Customs value of the imported goods. A specific rate is a specified amount per unit of weight of other quantity. Cost, insurance, freight, handling charges and all other charges incidental to the sale and delivery of the goods are taken into account when the duty is assessed. Exporters are required to ensure that the declared values

of goods have not been undervalued or the Customs and Excise Department will increase the values declared. Severe penalties may be imposed on traders attempting to evade duty. FREE TRADE ZONE/WAREHOUSES | Singapore has three Free Trade Zone (FTZ) authorities, namely PSA Corporation Ltd, Jurong Port Pte Ltd and the Changi Airport Group (Singapore) Pte Ltd. The eight FTZs are Brani Terminal, Keppel Distripark, Pasir Panjang Terminal, Sembawang Wharves, Tanjong Pagar Terminal, Keppel Terminal, Jurong Port, Airport Logistics Park of Singapore and the Changi Airport Cargo Terminal Complex. They provide a wide range of facilities and services for storage and re-export of dutiable and controlled goods. Goods can be stored within the zones without any customs documentation until they are released in the market and they can also be processed and re-exported with minimum customs formalities. More information can be found at http://www.customs.gov.sg. GST is suspended for imported goods deposited in a FTZ and will only be payable upon removal from the FTZ for local consumption. GST is not payable on supply made in FTZ if the goods supplied are meant for transshipment or re-export. The FTZs at the port facilitate entrepot trade and promote the handling of transshipment cargo. They offer free 72-hour storage for import/export of conventional and containerized cargo and 140-day free storage for transshipment/re-export cargo. There are many warehouse space options available in Singapore. Some of the more popular ones are located close to the port and within easy reach of the airport and the Jurong industrial hub. These include the Tanjong Pagar, Alexandra and Pasir Panjang distriparks which are home to

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

BE framework, organizations achieve key certification milestones and can also vie for the prestigious BE awards.

Standards

The Singapore Standardisation Programme is administered by SPRING to develop and promote Singapore Standards and International Trade Standards Standards which are important to Singapore. It OVERVIEW | As the national standards and establishes and publishes Singapore Standards accreditation body, SPRING Singapore devel- by announcement in the Government Gazette. ops and promotes a robust and international- SPRING is a member body of the International ly-recognized quality and standards assurance Organization for Standardization (ISO) and infrastructure in Singapore. This infrastructure also a member body of the International enables enterprises to become more efficient, Electrotechnical Commission (IEC) through productive, global and competitive, as well as the Singapore National Committee of the IEC. supports national initiatives in areas such as SPRING facilitates the participation of health, safety, and protection of the environment. industry in standards development work SPRING also encourages local industries through the industry-led Singapore Standards and enterprises to adopt standards and con- Council. To strengthen its linkages with indusformance schemes to build trust in Singapore try, the Council comprises standards partners products and services. or experts from the private and public sectors. To facilitate trade with Singapore’s trading The Standards Council approves the publicapartners, SPRING signed bilateral and multi- tion and withdrawal of Singapore Standards lateral Memoranda of Understanding (MOUs) (SSs) and Technical References (TRs). It also and Mutual Recognition Arrangements (MRAs) oversees Singapore’s participation in the with a number of agencies and governments development or monitoring of ISO and IEC around the world. international standards that are important SPRING currently participates in a num- to Singapore. It currently has 12 Standards ber of international or regional fora such as Committees (SCs) to lead the development the Pacific Area Standards Congress (PASC), and promotion of standards in various indusAsia Pacific Economic Cooperation Sub- tries or technical fields such as biomedical, Committee on Standards & Conformance building & construction, chemical, electrical (APEC SCSC), ASEAN Consultative Committee & electronic, food and management systems. on Standards & Qualit y (ACCSQ), Under the various Standards Committees (SCs), and Pacific Accreditation Cooperation (PAC). Technical Committees (TCs) and Working SPRING also administers the SPRING Groups (WGs) are established to undertake Business Excellence (BE) Initiative which helps the preparation and promotion of standards. organizations enhance their management sys- More information can be obtained at: http:// tems and processes to improve performance. www.spring.gov.sg/standards. By adopting the internationally benchmarked Where possible, SPRING promotes the

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

TRADE REGULATIONS, CUSTOMS, & STANDARDS

many established multinationals. The distriparks, in varying designs and sizes cater to Central Distribution Center operators, manufacturers, traders, freight forwarders and others. http://www.customs.gov.sg/businesses/ resources/directories-of-service-providers/ licensed-premises-for-zero-gst-goods.

TRADE REGULATIONS, CUSTOMS, & STANDARDS

use of international standards. SSs are developed when there are no suitable international standards.

Conformity Assessment Conformity assessment is the process used to demonstrate that a product, service or system meets specified requirements, likely to be contained in a standard. Conforming to national or international standards provides consumers with added confidence, enterprises with a competitive edge and helps regulators to ensure that safety or environmental requirements are met. Conformity Assessment Bodies (CABs) are testing and calibration laboratories, certification bodies as well as inspection bodies that provide conformity assessment services. A list of conformity assessment bodies accredited by the Singapore Accreditation Council (SAC) may be found here: http://www.sac-accreditation.gov.sg/ cab/acab/Pages/search_acab.aspx.

activities. Besides being the national standards body in Singapore, SPRING is also the national accreditation body managing the Singapore Accreditation Council (SAC). The SAC’s primary function is to accredit CABs based on international standards. After being assessed on their competence, impartiality and performance capability to offer specified conformity assessment services, CABs gain the right of use of the SAC accreditation marks in their issuance of endorsed test/calibration/ inspection reports or accredited certificates. The SAC currently operates accreditation programs in the following areas: ◊

Calibration laboratories covering the temperature, dimensional, electrical and mechanical; and testing laboratories covering chemical, biological, environmental, medical, medical imaging, electrical, non-destructive testing, gaming and testing related to civil and mechanical engineering

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Inspection bodies for areas such as industrial pressure vessels and lifting equipment, motor vehicle, structural steelwork, cargo, technical audit for extension of pressure vessel, site investigation and hook lift and container

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Quality management system (ISO 9001) certification bodies

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Environmental management system (ISO 14001) certification bodies

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Product certification bodies

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Personnel certification bodies

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Occupational safety and health management system (OSHMS) certification bodies

Product Certification A list of the designated product certification bodies for the Consumer Protection (Safety Requirements) Registration Scheme (CPS Scheme) administered by SPRING can be found here: http://www.spring.gov.sg/ Building-Trust/Raising-Confidence/ConsumerProduct-Safety/CPS-Scheme/Documents/CPS_ InfoBooklet.pdf.

Accreditation Accreditation is an endorsement of a Conformity Assessment Bodies’ (CABs) competence, credibility, independence and integrity in carrying out its conformity assessment

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

Hazard analysis and critical control points (HACCP) food safety management system certification bodies

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Business continuity management certification bodies

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Energy management system (EnMS) certification bodies

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Food safety management system (ISO 22000) certification bodies

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Water efficiency management system certification bodies

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Good distribution practice for medical device (GDPMDS) certification bodies

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Asset management system certification bodies

TRADE REGULATIONS, CUSTOMS, & STANDARDS

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Image courtesy of the Singapore Tourism Board

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TRADE REGULATIONS, CUSTOMS, & STANDARDS

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Proficiency testing providers

In October 2010, the SAC was formally recognised by the U.S. Environmental Protection Agency (EPA) for the ENERGY STAR Program. More information is available at: http://www. sac-accreditation.gov.sg. The SAC had signed a number of accreditation related multilateral mutual recognition arrangements (MRAs/MLAs). These include: ◊

Asia Pacific Laboratory Accreditation Cooperation (APLAC) MRA for testing, calibration, medical (ISO 15189), inspection and proficiency testing providers

◊

Pacific Accreditation Cooperation (PAC) MLA for quality management system certification, product certification and food safety management system certification

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International Accreditation Forum (IAF) MLA for quality management system certification, product certification and food safety management system certification

◊

International Laboratory Accreditation Cooperation (ILAC) MRA for testing, calibration and inspection.

In addition, SPRING had appointed SAC as the Good Laboratory Practice (GLP) Compliance Monitoring Authority in Singapore. In January 2010, Singapore became a Mutual Acceptance of Data (MAD) adherent member of the Organization for Economic Cooperation and Development (OECD). This means that GLP studies conducted in Singapore for the health and safety assessment of chemicals will be accepted

in more than 30 OECD and non-OECD member countries. Singapore operates a MRA on telecom equipment certification with the U.S. The MRA provides for direct entry of telecommunications into either market without the need for additional testing and certification. Under the Asian Pacific Economic Cooperation (APEC) Telecommunications MRA implemented between the U.S. and Singapore, products can be tested and certified in the United States for conformance with Singapore’s technical requirements. A list of the recognised U.S. testing and certification agencies can be found at: https:// www.imda.gov.sg/regulations-licensing-andconsultations/international-roles/testinglaboratories-and-certification-bodiesrecognised-by-imda.

Publication of Technical Regulations Singapore Standards (SS) are nationally recognized documents that undergo the full consensus process, including a two-month public review before publication. They are functional or technical requirements in the form of specifications for materials, product system or process, codes of practice, methods of test, terminologies, and guides, etc. They are voluntary in nature, except when referred to by the regulatory bodies in legislations. International standards can be adopted as SS. On the other hand, Technical References (TR) are transitional documents developed to provide guidance for products and services to help meet urgent industry demands in areas where there is an absence of reference standards. They are pre-standards for trial over a period of two years to assess on their

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

Toppan Leefung Pte Ltd 1 Kim Seng Promenade #18-01 Great World City East Tower Singapore 237994 Operating Hours: Mon to Fri: 9.30 am to 6.00 pm Closed on Saturdays, Sundays and Public Holidays Customer Service Hotline: + (65) 6826 9691 Fax: + (65) 6820 3341 Email: singaporestandardseshop@toppanleefung.com Website: http://www.singaporestandardseshop.sg

Contact Information SPRING Singapore

2 Fusionopolis Way #15-01 Innovis Singapore 138634 Tel: (65) 6278 6666 Fax: (65) 6250 1096 Website: www.spring.gov.sg

Ms. CHANG Kwei Fern, Director, Accreditation Division Email: sac@spring.gov.sg Mr. CHEONG Tak Leong, Director, Standards Division Email: standards@spring.gov.sg Ms. LIM Lee Fang, Deputy Director, Consumer Protection, Weights & Measures Division Email: safety@spring.gov.sg Mr. Patrick LIM, Director, Business & Service Excellence Division Email: be@spring.gov.sg

Standards contact at U.S. Commercial Service, Singapore: Ms. CHIA Swee Hoon, Senior Commercial Specialist Email: Sweehoon.chia@trade.gov

Trade Agreements As a nation with a small domestic market that depends on imports for food, energy and industrial raw materials, Singapore places the highest priority on the multilateral trading system embodied by the World Trade Organization (WTO). As a member of the WTO, Singapore believes that the WTO can provide a stable framework for developing sound multilateral rules that ensure that goods and services can flow freely with minimum impediment. The primary objective of Singaporeâ&#x20AC;&#x2122;s trade policy is to guard its trading interest by ensuring a free and open international trading environment. In tandem with its support of the WTO, Singapore advocates that trade efforts are undertaken in the regional context such as APEC (Asia Pacific Economic Cooperation), ASEM (Asia-Europe Meeting) and ASEAN (Association of Southeast Asian Nations) as well as bilateral Free Trade Agreements (FTAs) to accelerate the momentum of trade liberalization and strengthen the multilateral trading system. It has actively pursued a number of legally binding arrangements with trading partners. ASEAN is preparing a roadmap for an ASEAN Economic Community by 2020 that aims to create a single enlarged market of 600 million people. Singapore has concluded FTAs with the United States, ASEAN, Australia, New Zealand, Hashemite Kingdom of Jordan, China, India, Japan, South Korea, Costa Rica, Switzerland, Liechtenstein, Norway & Iceland, Gulf Cooperation Council, Panama, Peru and

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

TRADE REGULATIONS, CUSTOMS, & STANDARDS

suitability for the local industry. TR can, therefore, become SS after two years, continue as TR for further comments, or be withdrawn. Both SS and TR are available for purchase from the Singapore Standards eShop. SPRING had appointed Toppan Leefung Pte Ltd to manage the sale of the SS and TR, as well as international and overseas standards that SPRING is permitted to sell in Singapore. Toppan Leefungâ&#x20AC;&#x2122;s contact details are:

TRADE REGULATIONS, CUSTOMS, & STANDARDS

with Brunei, Chile and New Zealand under the Trans-Pacific SEP (Strategic Economic Partnership) Agreement. FTA negotiations are ongoing with Canada, Mexico, Pakistan and the Ukraine. The Trans-Pacific Partnership (TPP) is a Free Trade Agreement (FTA) between twelve countries which include the U.S., Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Concluded in October 2015 and signed in February 2016, the TPP is an evolution of the Trans-Pacific Strategic Economic Partnership (TPSEP) between Singapore, Brunei, Chile and New Zealand. It will also address a range of new and emerging issues of concern to U.S. businesses, workers and other stakeholders in the 21st Century. The TPP also aims to eliminate over 18,000 foreign taxes on U.S. exports. For more information, please visit http:// www.iesingapore.gov.sg, http://www.fta.gov. sg and https://ustr.gov/tpp/.

Licensing Requirements for Professional Services Legal Services: The Qualifying Foreign Law Practice Licence (QFLP) was introduced in 2008 and allows Foreign Law Practices to practice in permitted areas of Singapore law. The QFLP aims to support the growth of Singapore’s key economic growth sectors. The Singapore Ministry of Law oversees this and more information on the structure of Singapore’s legal service can be found at http://www.lsc.gov.

sg and https://www.mlaw.gov.sg. Accounting and Tax Services: Under the Accountants Act, anyone who wishes to practice public accountancy must register with ACRA and be a member of the Institute of Singapore Chartered Accountants (ISCA), formerly the Institute of Certified Public Accountants of Singapore (http://isca.org.sg). More information can be found at ACRA website: https://www. acra.gov.sg/components/wireframes/ howToGuidesChapters.aspx?pageid=1492. ACRA recognizes U.S. accountants registered with the American Institute of Certified Public Accountants. The major international accounting firms operate in Singapore and have at least one partner residing here. Engineering and Architectural Services: Only engineers and architects registered with the Professional Engineers Board, Singapore (http://www.peb.gov.sg) and the Board of Architects (http://www.boa.gov.sg) respectively, can practice in Singapore. All applicants (both local and foreign) must have at least four years of practical experience in engineering or architectural works, and pass an examination set by the respective Board. Engineering and architectural firms can be 100% foreign-owned. Under the Architect Act, no person shall draw or prepare any architectural plan and design intended to govern the construction of any building in Singapore unless the person is a registered architect who has a valid practicing certificate issued by the Board of Architects (http://www.boa.gov.sg). ♦

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Accounting and Corporate Regulatory Authority (ACRA) http://www.acra.gov.sg

Intellectual Property Office of Singapore (IPOS) http://www.ipos.gov.sg

Agency for Science, Technology & Research (A*STAR) http://www.a-star.edu.sg

International Enterprise Singapore (IE Singapore) http://www.iesingapore.gov.sg

Agri-Food & Veterinary Authority of Singapore (AVA) http://www.ava.gov.sg

International Revenue Authority of Singapore (IRAS) http://www.iras.gov.sg

ASEAN http://www.asean.org Board of Architects http://www.boa.gov.sg

List of the recognized U.S. testing and certification agencies http://www.ida.gov.sg/~/media/Files/ PCDG/International%20Relations/ ListRecoTestingLabsCertiBodies/RTL_USA.pdf

Building & Construction Authority of Singapore http://www.bca.gov.sg

Ministry of Defence http://www.mindef.gov.sg

Civil Aviation Authority of Singapore (CAAS) http://www.caas.gov.sg

Ministry of Education http://www.moe.gov.sg

Consumer Association of Singapore (CASE) http://www.case.org.sg

Ministry of Environment & Water Resources http://www.mewr.gov.sg

Consumer Protection (Safety Requirements) Registration Scheme http://www.spring.gov.sg/Building-Trust/RaisingConfidence/Consumer-Product-Safety/CPS-Scheme/ Documents/CPS_InfoBooklet.pdf

Ministry of Finance http://www.mof.gov.sg

Economic Development Board Singapore (EDB Singapore) http://www.edb.gov.sg

Ministry of Law https://www.mlaw.gov.sg

Energy Market Authority (EMA) http://www.ema.gov.sg

TRADE REGULATIONS, CUSTOMS, & STANDARDS

Trade Regulation Web Resources

Ministry of Health http://www.moh.gov.sg

Ministry of Trade & Industry http://www.mti.gov.sg Monetary Authority of Singapore http://www.mas.gov.sg

Enterprise One http://www.enterpriseone.gov.sg

National Environment Agency http://www.nea.gov.sg

GovTech Singapore https://www.tech.gov.sg/

National Institute of Standards and Technology http://www.nist.gov

Health Sciences Authority http://www.hsa.gov.sg

Professional Engineers Board https://www.peb.gov.sg

Hotel Licensing Board (HLB) http://www.hlb.gov.sg Infocomm Media Development Authority https://www.imda.gov.sg Information Technology Standards Committee http://www.itsc.org.sg Institute of Certified Public Accountants http://isca.org.sg

Singapore Accreditation Centre http://www.sac-accreditation.gov.sg Singapore Customs http://www.customs.gov.sg Singapore Standards eShop http://www.singaporestandardseshop.sg SPRING Singapore http://www.spring.gov.sg

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

INVESTMENT CLIMATE STATEMENT Executive Summary Foreign investments, combined with investments through government-linked corporations (GLCs), underpin Singapore’s open, heavily trade-dependent economy. With the exception of some restrictions in the financial services, professional services, and media sectors, Singapore maintains a predominantly open investment regime, with strong government commitment to maintaining a free market and active management of Singapore’s economic development. Companies in Singapore cite transparency and lack of corruption, business friendly laws and regulations, tax structure, customs facilitation, and well-developed infrastructure as leading attractive features of Singapore’s business and investment climate. The World Bank’s “Doing

Business 2016” report ranked Singapore as the easiest country in which to do business. The Global Competitiveness Report 20152016 by the World Economic Forum ranked Singapore as the second-most competitive economy globally. Singapore typically ranks as the least corrupt country in Asia and one of the least corrupt in the world, and actively enforces its robust anti-corruption laws. The U.S.-Singapore Free Trade Agreement (FTA), which came into force January 1, 2004, expanded U.S. market access in goods, services, investment, and government procurement, enhanced intellectual property protection, and provided for cooperation in promoting labor rights and the environment. The government actively uses the public sector as both an investor and catalyst for development.

Image courtesy of the Singapore Tourism Board

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◊

The U.S. direct investment position in Singapore in 2014 reached US$179.8 billion, primarily in non-bank holding companies, manufacturing (especially computers and electronic products), and finance and insurance – an increase of 12.5% from the previous year.

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Singapore’s extensive arbitration and mediation centers and commercial court have contributed to its development as an international hub for dispute resolution, and a desired base for international law firms and MNC corporate counsel. The Singapore International Commercial Court (SICC) heard its first case in May 2015, marking a milestone in Singapore’s quest to become a leading arbitration center.

◊

The government is increasingly tightening restrictions on hiring foreign workers in favor of employment of Singaporean nationals. The Ministry of Manpower introduced measures in 2016 to watchlist companies and suspend work pass privileges for firms found

not to have a “healthy Singaporean core,” demonstrated commitment to developing a Singaporean core, and not to be “relevant” to Singapore’s economy and society. As of April 2016, approximately 100 companies have been watchlisted.

Investment Trends Singapore’s aggressive pursuit of foreign investment as a pillar of its overall economic strategy has enabled the country to evolve into a regional base for multinational corporations (MNCs). The Economic Development Board (EDB), Singapore’s investment promotion agency, focuses on securing major investments in high value-added manufacturing and service activities as part of a strategy to replace labor-intensive, low value-added activities that have migrated offshore. As part of a strategy to develop Singapore into a top financial center, the government offers tax incentives for financial institutions looking to set up operations. Further information, details, and guidelines are available at: http:// www.mas.gov.sg/Singapore-FinancialCentre/Value-Propositions/Setting-Up.aspx.

INVESTMENT CLIMATE STATEMENT

Highlights:

Table 1 Measure

Year

Index or Rank

Website Address

TI Corruption Perceptions index

2015

8 of 167

http://www.transparency.org/cpi2015

World Bank’s Doing Business Report “Ease of Doing Business”

2016

1 of 189

http://www.doingbusiness.org/~/media/GIAWB/ Doing%20Business/Documents/Annual-Reports/ English/DB16-Full-Report.pdf

Global Innovation Index

2015

7 of 141

https://globalinnovationindex.org/content/page/ data-analysis

U.S. FDI in Singapore

2014

US$ 179.8 billion

World Bank GNI per capita

2014

US$ 55,150

http://bea.gov/international/di1usdbal.htm http://data.worldbank.org/indicator/NY.GNP. PCAP.CD http://data.worldbank.org/data-catalog/ GNI-per-capita-Atlas-and-PPP-table

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

INVESTMENT CLIMATE STATEMENT

Openness to and Restrictions upon Foreign Investment Attitude Toward Foreign Direct Investment Singapore’s legal framework and public policies are generally favorable toward foreign investors. Foreign investors are not required to enter into joint ventures or cede management control to local interests, and local and foreign investors are subject to the same basic laws. Apart from regulatory requirements in some sectors (reference “Limits on National Treatment and Other Restrictions”), the government screens investment proposals only to determine eligibility for various incentive regimes (reference Annex). Singapore places no restrictions on reinvestment or repatriation of earnings or capital. The judicial system, which includes international arbitration and mediation centers, and a commercial court, upholds the sanctity of contracts, and decisions are transparent and effectively enforced. Limits on National Treatment and Other Restrictions: Exceptions to Singapore’s general openness to foreign investment exist in telecommunications, broadcasting, the domestic news media, financial services, legal, and other professional services, and property ownership. Under Singapore law, Articles of Incorporation may include shareholding limits that restrict ownership in corporations by foreign persons. TELECOMMUNICATIONS | Since 2000, the implementation of the Telecoms Competition Code has allowed foreign and domestic companies seeking to provide facilities-based (fixed line or mobile) or services-based (local, international, and callback) telecommunications services, to apply for licenses to operate and deploy telecommunication systems and services. Singapore Telecommunications (SingTel)—a GLC which is currently 51% owned by Temasek,

a holding company with the Singapore Minister of Finance as its sole shareholder—faces competition in all market segments. Its main competitors, M1 and StarHub, are also GLCs. As of February 2016, Singapore has 57 facilities-based (group) and 257 services-based (individual) operators. Since 2007, SingTel has been exempted from dominant licensee obligations for the residential and commercial portions of the retail international telephone services. SingTel is also exempted from dominant licensee obligations for wholesale international telephone services, international managed data, international IP transit, leased satellite bandwidth, terrestrial international private leased circuit, and backhaul services. U.S. and other companies remain concerned about the lack of transparency in some aspects of Singapore’s telecommunications regulatory and rule-making process. In particular, there is no obligation to make information publicly available concerning a company’s request for a stay of decision or the filing of an appeal, request public comments about such requests, or to publish a detailed explanation concerning final decisions made by the Infocomm Development Authority (IDA) or the Ministry of Communication and Information (MCI). Infrastructure for the all-fiber national broadband network (NBN), has been developed since 2009 by OpenNet—a consortium formed by Canada’s Axia Netmedia (which holds 30% ownership), SingTel (30%), Singapore Press Holdings (25%), and SP Telecommunications (15%). The network is operated by Nucleus Connect, a wholly-owned subsidiary of StarHub. Operational separation is imposed on Nucleus Connect to maintain its independence from OpenNet, and to ensure that it provide services to all downstream operators on the same prices and terms and conditions, with the same processes and access to information. Nearly

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in the telecommunications sector and ensure continuity and competiveness in telecommunications services. The amendments allow the Minister for Communication and Information to issue a Separation Order to a telecommunications company (Telco) that engages in anti-competitive behavior, where the Ministry assesses that imposition of regulatory obligations in relation to the relevant market or business has failed and other regulatory actions would fail to achieve effective competition. The amendments allow the Minister of Communication and Information to issue Special Administrative Orders (SAOs) that ensure a key telecommunication network or service continues to be functional in the public national interest and revise the maximum administrative financial penalty on Telco that breach regulations to 10% of the annual business turnover for licensable services of a licensee, or US$790,514 (SGD 1 million), whichever is higher.

INVESTMENT CLIMATE STATEMENT

all homes and offices are connected to the fiber-optic broadband network. In November 2013, IDA approved the acquisition of the shares of OpenNet by NetLink Trust,—a business trust that supported the roll-out of the NBN by providing the ducts and manholes through which the optical fiber cables pass to reach homes and buildings. NetLink Trust’s – purchase of OpenNet gives it control over all the steps involved in connecting users to the networks. Seven Singapore telecommunication firms, including M1 and StarHub, voiced their opposition to the consolidation, noting it would see SingTel becoming the 100% beneficial owner of the only other nationwide fixed telecommunications network in Singapore, apart from SingTel’s own network, leading to discriminatory treatment and a lack of independence. In response, IDA established several conditions to allay concerns about anti-competitive practices and ensure that effective and non-discriminatory access is available to requesting licensees, including by establishing a monitoring board consisting of government representatives to ensure SingTel does not influence any decisions on service price as well as terms and conditions. SingTel must also divest its majority stake in NetLink Trust by April 2018. In October 2015, Infocomm Development Authority of Singapore (IDA) fined NetLink Trust US$327,320 (SGD 450,000) for failing to meet quality of service (QoS) benchmarks in 2014 in delivering residential and non-residential end-user connections. The fine is the fourth in three years for the company, the largest at nearly US$450,000 in 2013 not meeting its obligation to IDA to roll out the network to all homes and offices by the end of 2012. In 2011, the Singaporean Government amended the Telecommunications Act, giving it more power to curb monopolistic behavior

MEDIA | The local free-to-air broadcasting, cable and newspaper sectors are effectively closed to foreign firms. Section 44 of the Broadcasting Act restricts foreign equity ownership of companies broadcasting to the Singapore domestic market to 49% or less, although the Act does allow for exceptions. Individuals cannot hold more than 5% of the ordinary shares issued by a broadcasting company without the government’s prior approval. The Newspaper and Printing Presses Act restricts equity ownership (local or foreign) to 5% per shareholder and requires that directors be Singapore citizens. Newspaper companies must issue two classes of shares, ordinary and management, with the latter available only to Singapore citizens or corporations approved by the government. Holders of management shares have an effective veto over selected board decisions. The government controls

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

INVESTMENT CLIMATE STATEMENT

distribution, importation and sale of any foreign newspaper, and significantly restricts freedom of the press, having curtailed or banned the circulation of some foreign publications. The government has also gazetted foreign newspapers, i.e., numerically limited their circulation. Singapore’s leaders have brought defamation suits against foreign publishers. Such suits have resulted in the foreign publishers issuing apologies and paying damages. While local media is heavily government influenced, in practice there are few restrictions on the internet, and Singaporeans generally have uncensored access to international media. However, the Media Development Authority (MDA), which is responsible for regulating Internet service providers, has blocked various websites containing objectionable material, such as pornography and racist and religious hatred sites. In a high-profile case in 2016, the government charged and sentenced to 10 months imprisonment a foreign operator of an online media news site for sedition on the grounds of generating ill-will and hostility. LICENSING SCHEME FOR NEWS WEBSITES | The Media Development

Authority implemented in 2013 a regulation requiring certain internet news sites to obtain an individual license. MDA asserts the new regulation was intended to put online news sites on a more consistent regulatory basis with traditional media such as print and television, which are also individually licensed. This requirement applies to sites, both commercial news and other sites, that publish on average over a two-month period one article per week relating to issues in Singapore and which receive a two-month average of at least 50,000 monthly site visits from unique addresses of Singapore-based internet providers. The license requires these sites to submit

a bond of US$40,000 (SGD 50,000) and to adhere to new requirements to remove prohibited content within 24 hours of notification from the MDA. Some viewed this regulation as a way to censor online critics of the government. In June 2013 more than 2,500 persons participated in a protest against the new regulation. The Minister for Communications and Information publicly stated that the new regulation was not intended to target individual bloggers or blogs. PAY-TELEVISION | MediaCorp TV is the only free-to-air TV broadcaster; the government via Temasek Holdings (Temasek) owns 100% of it. Pay-TV providers StarHub Cable Vision (SCV) and SingNet are wholly-owned subsidiaries of StarHub and SingTel, respectively. Free-to-air radio broadcasters are mainly government-owned, with MediaCorp Radio Singapore being the largest operator. BBC World Services is the only foreign free-to-air broadcaster in Singapore. To rectify the high degree of content fragmentation in the Singapore pay-TV market, and shift the focus of competition from an exclusivity-centric strategy to other aspects such as service differentiation and competitive packaging, the Media Development Authority (MDA) implemented cross-carriage measures in 2011 requiring pay TV companies designated by MDA to be Receiving Qualified Licensees (RQL) – currently SingTel and StarHub—to cross carry content subject to exclusive carriage provisions. Correspondingly, Supplying Qualified Licensees (SQLs) with an exclusive contract for a channel are required to share that content with other pay TV companies. Content providers consider the measures an unnecessary interference in a competitive market that would deny content holders the ability to negotiate freely in the marketplace, and an

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and conditions, provide consumers a copy of the contract and the CIS within 14 days of contracting, and obtain consumers’ confirmation that they understand contract terms. In January 2016, citing the convergence of the infocomm technology (ICT) and media sectors and a desire to expand the reach of the digital economy to more people, MCI announced that it restructure the Infocomm Development Authority of Singapore (IDA) and the Media Development Authority of Singapore (MDA) to become the Infocomm Media Development Authority (IMDA) and the Government Technology Organization (GTO) in the second half of 2016.

INVESTMENT CLIMATE STATEMENT

interference with their ability to manage and protect their intellectual property. More common content is now available across the different pay-TV platforms, and the operators are beginning to differentiate themselves by originating their own content, offering subscribed content online via PCs and tablet computers, and delivering content via fiber networks. The Media Development Authority (MDA) finalized in March 2016 its recommendations to enhance pay-TV consumer protection measures under the Media Market Conduct Code (MMCC) to address consumer concerns including unilateral contract changes, forced upgrades of non pay-TV services and the lack of awareness of the terms and conditions of contracts. According to MDA, these recommendations were based on feedback received from a public consultation held from September to November 2014. Under the proposed changes MDA will require pay-TV operators to allow consumers to exit fixed term contracts without paying Early Termination Charges (ETCs) if unilateral contract changes by the operators are detrimental to subscribers due to: increase in subscription fee; removal of material channel(s); removal of material sports content within a channel; or removal of at least 20% of total number of channels in entire pay-TV service since the point of subscription. Pay-TV operators will also be required to provide consumers with options for 12-month or shorter contract terms for all packages or bundles as an alternative to longer term commitments. The MMCC prevents operators from requiring subscribers to upgrade their non pay-TV services such as broadband or phone service contracts to modify the terms of their pay-TV services. The MMCC also requires operators to provide consumers with a critical information summary (CIS) clearly highlighting key terms

BANKING | The Monetary Authority of Singapore (MAS) regulates all banking activities as provided for under the Banking Act. Singapore maintains legal distinctions between foreign and local banks, and the type of license (i.e., full service, wholesale, and offshore) held by foreign banks. As of March 28, 2016, 28 foreign full service licensees, 53 wholesale licensees, and 38 offshore licensees operated in Singapore. All offshore banks are eligible to be upgraded to wholesale bank status based on MAS criteria to enable them to conduct a wider range of activities. Except in retail banking, Singapore laws do not distinguish operationally between foreign and domestic banks. Foreign banks with a significant retail presence in Singapore are required to locally incorporate their retail operations. The government initiated a banking liberalization program in 1999 to ease restrictions on foreign banks and has supplemented this with phased-in provisions under the FTA, including removal of a 40% ceiling on foreign ownership of local banks and a 20% aggregate foreign shareholding limit on finance companies. The Minister in charge of

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

INVESTMENT CLIMATE STATEMENT 48

the Monetary Authority of Singapore must approve the merger or takeover of a local bank or financial holding company, as well as the acquisition of voting shares in such institutions above specific thresholds of 5%, 12% or 20% of shareholdings. Although the Singaporean Government has lifted the formal ceilings on foreign ownership of local banks and finance companies, the approval of controllers of local banks ensures that this control rests with individuals or groups whose interests are aligned with the long term interests of the Singapore economy and Singapore’s national interests. Of the 28 full service licenses granted to foreign banks, four have gone to U.S. banks. Ten of the 28 full service licensees (including one U.S. bank) have been granted qualifying full bank (QFB) status. U.S. financial institutions enjoy phased-in benefits under the FTA. Since 2006, U.S.-licensed full service banks that are also QFBs have been able to operate at an unlimited number of locations (branches or off-premises ATMs) versus 25 for non-U.S. full service foreign banks with QFB status. U.S. and foreign full-service banks with QFB status can freely relocate existing branches and share ATMs among themselves. They can also provide electronic funds transfer and point-ofsale debit services, and accept services related to Singapore’s compulsory pension fund. In 2007, Singapore lifted the quota on new licenses for U.S. wholesale banks. In April 2015, MAS announced a framework for identifying and supervising domestic systemically important banks (D-SIBs) - banks that are assessed to have a significant impact on the stability and functioning of the financial system and economy in Singapore—and the inaugural list of D-SIBs, which includes DBS Bank, Oversea-Chinese Banking Corporation, United Overseas Bank, Citibank, Malayan Banking Berhad, Standard

Chartered, and The Hong Kong and Shanghai Banking Corporation. The MAS will apply additional supervisory measures on D-SIBs, including higher capital requirements for locally-incorporated D-SIBs. Locally and non-locally incorporated subsidiaries of U.S. full-service banks with QFB status can apply for access to local ATM networks. However, no U.S. bank has come to a commercial agreement to gain such access. Despite liberalization, U.S. and other foreign banks in the domestic retail banking sector still face barriers. Under the enhanced QFB program launched in 2012, MAS will require QFBs it deems systemically significant to incorporate locally. If those locally incorporated entities are deemed “significantly rooted” in Singapore, with a majority of Singaporean or permanent resident members, Singapore may grant approval for an additional 25 places of business, of which up to 10 may be branches. Local retail banks do not face similar constraints on customer service locations or access to the local ATM network. As noted above, U.S. banks are not subject to quotas on service locations under the terms of the FTA. Holders of credit cards issued locally by foreign banks or other financial institutions sometimes cannot access their accounts through the local ATM networks. They are also unable to access their accounts for cash withdrawals, transfers or bill payments at ATMs operated by banks other than those operated by their own bank or at foreign banks’ shared ATM network. Nevertheless, full-service foreign banks have made significant inroads in other retail banking areas, with substantial market share in products like credit cards and personal and housing loans. U.S. industry advocates enhancements to Singapore’s credit bureau system, in particular, adoption of an open admission system for all

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

Report ranks Singapore as the second-most competitive economy globally. The 2004 U.S.-Singapore Free Trade Agreement (FTA), expanded U.S. market acSECURITIES AND ASSET MANAGEMENT | cess in goods, services, investment, and govSingapore has no trading restrictions on for- ernment procurement, enhanced intelleceign-owned stockbrokers. There is no cap on tual property protection, and provided for the aggregate investment by foreigners re- cooperation in promoting labor rights and garding the paid-up capital of dealers that the environment. are members of the SGX. Direct registration The Singaporean Government is strongof foreign mutual funds is allowed, provided ly committed to maintaining a free market MAS approves the prospectus and the fund. but also takes a leadership role in planning The FTA has relaxed conditions that foreign Singapore’s economic development. The govasset managers must meet in order to offer ernment actively uses the public sector as both products under the government-managed an investor and catalyst for development. As compulsory pension fund (Central Provident of February 2016, the top four Singapore-listed Fund Investment Scheme). GLCs accounted for about 13.7% of total capitalization of the Singapore Exchange (SGX). LEGAL SERVICES | As of end February Some observers have criticized the dominant 2016, 17 out of the 121 foreign law firms op- role of GLCs in the domestic economy, arguerating in Singapore were from the United ing that it has displaced or suppressed priStates. In December 2008, Singapore grant- vate sector entrepreneurship and investment. ed Qualifying Foreign Law Practice (QFLP) liIn accordance with current legislation, forcenses to six foreign law firms (two U.S. firms) eign law firms can provide legal services unto practice domestic law. Restrictions remain der Singapore law only through a Joint Law in certain legal fields including; conveyance, Venture (JLV) or Formal Law Alliance (FLA) with penal law, and domestic relations. In the first a domestic law firm. The Joint Law Venture is quarter of 2013, Singapore awarded another collaboration between a Foreign Law Practice four QFLP licenses, stemming from applications and Singapore Law Practice. There is not a submitted in 2012. As of 2015, there are nine clear indication regarding how share percentQFLPs in Singapore, including five U.S. firms. ages can be held in this type of partnership. Foreign investments, combined with in- The Attorney-General will consider all the relvestments through government-linked cor- evant circumstances including the proposed porations (GLCs), underpin Singapore’s open, structure and its overall suitability to achieve heavily trade-dependent economy. With the the objectives for which Joint law Ventures exception of restrictions in the financial ser- are permitted to be established in deciding vices, professional services, and media sec- on its approval. Currently, there are two U.S. tors, Singapore maintains a predominantly law firms with Joint Law Ventures in Singapore. open investment regime. The World Bank’s U.S. and foreign attorneys are allowed to repDoing Business 2016 report ranked Singapore resent parties in arbitration without the need as the easiest country in which to do busi- for a Singapore attorney to be present. With ness. The 2015-2016 Global Competitiveness the exception of law degrees from a handful

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

INVESTMENT CLIMATE STATEMENT

lenders, including non-banks. There are currently two credit bureaus in Singapore, Credit Bureau (Singapore) Private Ltd. (CBS) and Credit Scan.

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of designated U.S., British, Australian, and New Zealand universities, no foreign university law degrees are recognized for purposes of admission to practice law in Singapore. Under the FTA, Singapore recognizes law degrees from Harvard University, Columbia University, New York University, and the University of Michigan. Singapore will admit to the Singapore professional bar- a citizen or permanent-resident law school graduates of those designated universities who are ranked among the top 70% of their graduating class or have obtained lower-second class honors (under the British system). ENGINEERING AND ARCHITECTURAL SERVICES | Engineering and architectural

firms can be 100% foreign-owned. Only engineers and architects registered with the Professional Engineers Board and the Architects Board, respectively, can practice in Singapore. All applicants (both local and foreign) must have at least four years of practical experience in engineering or architectural works, and pass an examination set by the respective Board. ACCOUNTING AND TAX SERVICES | The major international accounting firms operate in Singapore. Public accountants and at least one partner of a public accounting firm must reside in Singapore. Only public accountants who are members of the Institute of Certified Public Accountants of Singapore and registered with the Public Accountants Board may practice in Singapore. The Board recognizes U.S. accountants registered with the American Institute of Certified Public Accountants. ENERGY | Singapore completed efforts to liberalize its gas market with the amendment of the Gas Act and implementation of a Gas Network Code in 2008, which were designed to give gas retailers and importers

direct access to the onshore gas pipeline infrastructure. However, key parts of the local gas market, such as gas retailing and access to offshore gas pipelines, remain controlled by incumbent Singaporean firms. In the past, the dominance of Singaporean government-linked corporations in this sector proved challenging for American companies that tried to enter the power generation and gas import business. Other Investment Policy Reviews Singapore has not conducted an investment policy review through OECD or UNCTAD in the past three years. Singapore is a World Trade Organization (WTO) member since 1995. The last Trade Policy Review was conducted in 2012. Laws/Regulations of Foreign Direct Investment Singapore enacted the Competition Act in 2004 and established the Competition Commission of Singapore in January 2005. The Act contains provisions on anti-competitive agreements, decisions, and practices; abuse of dominance; enforcement and appeals process; and mergers and acquisitions. There are no reports of government or executive interference in judicial proceedings affecting foreign investors. Business Registration Singapore’s online business registration process is clear and efficient, and allows foreign companies to register. All businesses must be registered with the Accounting & Corporate Regulatory Authority (ACRA) through the website https://www.acra.gov. sg/home/, including any individual, firm or corporation that carries out business for a foreign company. Applications are typically processed immediately after the application

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sg/content/edb/en/why-singapore/ready-toinvest/incentives-for-businesses.html). The Global Investor Programme (GIP) allows foreigners interesting in starting a business or investing in Singapore to apply for Permanent Residence (PR) status (https://www.edb.gov. sg/content/dam/edb/en/why%20singapore/ entering-singapore/GIP-Global-InvestorProgramme-Factsheet-EN.pdf). Small and Medium Enterprises (SMEs) are defined as companies with annual Sales turnover not exceeding S$100 million, or staff numbering less than 200. SPRING Singapore is an agency under the Singapore’s Ministry of Trade and Industry to promote Singapore enterprises and products through assistance in financing, capability and management development, technology and innovation, and access to markets. SPRING also provides these services to foreign SMEs which meet the SME criteria stated above, and are registered and

INVESTMENT CLIMATE STATEMENT

fee is paid, but may take between 14 days to 2 months if the application needs to be referred to another agency for approval or review. A step-by-step guide to registering a business or company in Singapore is provided at the SME Portal (formerly known as the EnterpriseOne Portal): https://www.smeportal.sg. Additional information on registering a branch of a foreign company is available through the Singapore’s Economic Development Board (EDB). Singapore’s Economic Development Board (EDB), an investment promotion agency that facilitate foreign investment into Singapore (https://www.edb.gov.sg), generally targets multinational companies (MNCs), but will consider investments on a case by case basis. EDB provides incentives including grants, allowances, awards, tax exemptions, and reduced tax rates for investments in certain sectors or categories (https://www.edb.gov.

Image courtesy of the Singapore Tourism Board

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INVESTMENT CLIMATE STATEMENT

based in Singapore with at least 30% local shareholding (http://www.spring.gov.sg/ About-Us/Pages/spring-singapore.aspx). Industrial Strategy The Economic Development Board (EDB), Singapore’s investment promotion agency, focuses on securing major investments in high value-added manufacturing and service activities as part of a strategy to replace labor-intensive, low value-added activities that have migrated offshore. As part of the government’s strategy to develop Singapore into a premier financial center, the Singaporean Government offers tax incentives for financial institutions looking to set up operations. Further information, details and guidelines are available at: http:// www.mas.gov.sg/Singapore-Financial-Centre/ Value-Propositions/Setting-Up.aspx. Limits on Foreign Control and Right to Private Ownership and Establishment Exceptions to Singapore’s general openness to foreign investment exist in telecommunications, broadcasting, the domestic news media, financial services, legal, and other professional services, and property ownership. Under Singapore law, Articles of Incorporation may include shareholding limits that restrict ownership in corporations by foreign persons. Foreign and local entities may readily establish, operate, and dispose of their own enterprises in Singapore. Except for representative offices (where foreign firms maintain a local representative but do not conduct commercial transactions in Singapore), there are no restrictions on carrying out remunerative activities. All businesses in Singapore must be registered with the Accounting and Corporate Regulatory Authority. Foreign investors can operate their businesses in one of the

following forms: sole proprietorship, limited partnership, incorporated company, foreign company branch or representative office. Singapore’s Government-linked corporations (GLCs) are active in many sectors of the economy, especially strategically important sectors including telecommunications, media, public transportation, defense, port, and airport operations. In addition, the GLCs are also present in many other sectors of the economy, including banking, shipping, airline, consumer/lifestyle, infrastructure, and real estate. GLCs operate on a commercial basis and compete on a generally equal basis with private businesses, both local and foreign. The GLCs are fully or partially owned by Temasek, a holding company with the Singapore Ministry of Finance as its sole shareholder. Some observers have complained that GLCs benefit from cheaper financing due to an implicit government guarantee. Singapore officials counter that the government does not interfere with the operations of GLCs or grant them special privileges, preferential treatment or hidden subsidies, asserting that GLCs are subject to the same regulatory regime and discipline of the market as private sector companies. Many observers, however, have been critical of cases where GLCs have entered into new lines of business or where government agencies have “corporatized” certain government functions, in both circumstances entering into competition with already-existing private businesses. The FTA contains specific conduct guarantees to ensure that GLCs will operate on a commercial and non-discriminatory basis towards U.S. firms. GLCs with substantial revenues or assets are also subject to enhanced transparency requirements under the FTA. In accordance with its FTA commitments, Singapore enacted the Competition Act in 2004 and established the Competition

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Conversion and Transfer Policies

Screening of FDI Singapore has a generally open investment regime, and no overarching screening process for foreign investment.

Remittance Policies The FTA commits Singapore to the free transfer of capital, unimpeded by regulatory restrictions. Singapore places no restrictions on reinvestment or repatriation of earnings and capital, and maintains no significant restrictions on remittances, foreign exchange transactions and capital movements.

Competition Law The U.S.-Singapore FTA contains specific conduct guarantees to ensure that GLCs will operate on a commercial and non-discriminatory basis towards U.S. firms. GLCs with substantial revenues or assets are also subject to enhanced transparency requirements under the FTA. In accordance with its FTA commitments, Singapore enacted the Competition Act in 2004 and established the Competition Commission of Singapore in January 2005. The Act contains provisions on anti-competitive agreements, decisions, and practices; abuse of dominance; enforcement and appeals process; and mergers and acquisitions. Singapore has an extensive network of GLCs that are active in many sectors of the economy. Some sectors, notably telecommunications and financial services, are subject to sector-specific regulatory bodies and competition regulations typically less rigorous than those being implemented under the Competition Act.

Foreign Exchange The FTA commits Singapore to the free transfer of capital, unimpeded by regulatory restrictions. Singapore places no restrictions on reinvestment or repatriation of earnings and capital, and maintains no significant restrictions on remittances, foreign exchange transactions and capital movements (reference â&#x20AC;&#x153;Efficient Capital Marketsâ&#x20AC;? for a discussion of certain restrictions on the borrowing of Singapore Dollars (SGD) for use offshore).

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Commission of Singapore in January 2005. The Act contains provisions on anti-competitive agreements, decisions, and practices; abuse of dominance; enforcement and appeals process; and mergers and acquisitions. Singapore has an extensive network of GLCs that are active in many sectors of the economy. Some sectors, notably telecommunications and financial services, are subject to sector-specific regulatory bodies and competition regulations typically less rigorous than those being implemented under the Competition Act.

Expropriation and Compensation The FTA contains strong investor protection provisions relating to expropriation of private property and the need to follow due process; provisions are in place for an owner to receive compensation based on fair market value. Singapore has not expropriated foreign owned property and has no laws that force foreign investors to transfer ownership to local interests. No significant disputes are pending. Singapore has signed investment promotion and protection agreements with a wide range of countries. These agreements mutually protect nationals or companies of either country against war and non-commercial risks of expropriation and nationalization for an

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INVESTMENT CLIMATE STATEMENT

initial period of 15 years and continue thereafter unless otherwise terminated.

Dispute Settlement Legal System, Specialized Courts, Judicial Independence, Judgments of Foreign Courts Singapore’s legal system has its roots in English common law and practice. All core obligations of the FTA are subject to the dispute settlement provisions of the Agreement. The dispute settlement procedures promote compliance through consultation and trade-enhancing remedies, rather than relying solely on trade sanctions. The procedures also set higher standards of openness and transparency. Singapore enacted and subsequently amended their 2001 Arbitration Act on domestic arbitration by basing their rules on the United Nations Commission on International Trade Law (UNCITRAL Model Law). In 1986, Singapore ratified the convention on the Recognition and Enforcement of Foreign Arbitration Awards (1958 New York Convention) and is a member state to the International Centre for Settlement of Investment Disputes (ICSID convention). The Singapore International Arbitration Center (SIAC) and the Singapore Mediation Center (SMC) actively promote alternative dispute mechanisms (ADR) for settling commercial disputes. BANKRUPTCY | Singapore has strict bankruptcy laws, with both debtors and creditors able to file a bankruptcy claim. Singapore is ranked number 27 for resolving insolvency in the World Bank’s Doing Business index. INVESTMENT DISPUTES | Singapore amended their Arbitration Act of 2001 by adapting the rules of the United Nations

Commission on International Trade Law (UNCITRAL) Model Law to their arbitration procedure. In 1986, Singapore ratified the convention on the Recognition and Enforcement of Foreign Arbitration Awards (1958 New York Convention) and in 1968 became a member state to the International Centre for Settlement of Investment Disputes (ICSID convention). The Singapore International Arbitration Center (SIAC) and the Singapore Mediation Center (SMC) actively promote mediation and reconciliation for settling commercial disputes. There are no outstanding investment disputes or expropriation claims involving U.S. citizens. I N T E R N AT I O N A L A R B I T R AT I O N | Singapore’s extensive arbitration and mediation centers and commercial court have contributed to its development as a regional hub for dispute resolution, and a desired base for international law firms and MNC corporate counsel. Among the alternative dispute resolution (ADR) institutions for the both investment and commercial disputes is the Singapore International Arbitration Centre (SIAC), the Singapore International Commercial Court (SICC), the Singapore International Mediation Institute (SIMI) and the Singapore International Mediation Centre (SIMC) established in November 2014, the Singapore Mediation Centre (SMC), the Primary Dispute Resolution Centre, and Maxwell Chambers, Asia’s first integrated dispute resolution complex. Singapore’s extensive arbitration centers have contributed to its development as a regional hub for alternative disputes mechanisms. Arbitral awards in Singapore, for either domestic or international arbitration, are legally binding and enforceable in local courts. The SICC, established in January 2015, heard its first case in May 2015.

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of the International Centre for Settlement of Investment Disputes (ICSID convention). Singapore ratified the convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention). These agreements have been fundamental in the development of Singapore’s arbitration law. Duration of Dispute Resolution Mediation cases can be handled within a short period of time. Arbitration cases involve a lengthier process and therefore vary considerably in the time they take to obtain an award. Within Singapore, arbitral awards, for cases involving domestic or international arbitration, are legally binding and enforceable in domestic courts.

Performance Requirements and Investment Incentives WTO/TRIMS Singapore is a World Trade Organization member since 1995. Singapore complies with WTO Trade-Related Investment Measures (TRIMS) obligations. The FTA prohibits and removes certain performance-related restrictions on U.S. investors such as limitations on the number of customer service locations for the retail banking sector. There are no discriminatory or preferential export or import policies affecting foreign investors. The government does not require investors to purchase from local sources or specify a percentage of output for export. The government also does not require local equity ownership in the investment. There are no rules forcing the transfer of technology. Foreign investors face no requirement to

reduce equity over time and are free to obtain their necessary financing from any source. Investment Incentives Singapore offers numerous incentives to encourage foreign investors to startup businesses; particularly in targeted growth sectors. Research and Development Singapore’s Economic Development Board sponsors a Research Incentive Scheme for Companies (RISC) to award government grants to develop research and development capabilities in strategic areas of technology. The scheme targets businesses registered in Singapore, including foreign firms, and encourage companies to set up R&D centers in Singapore.

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ICSID CONVENTION AND NEW YORK CONVENTION | Singapore is a member

Performance Requirements There are no discriminatory or preferential export or import policies affecting foreign investors. The government does not require investors to purchase from local sources or specify a percentage of output for export. The government also does not require local equity ownership in the investment. There are no rules forcing the transfer of technology. Foreign investors face no requirement to reduce equity over time and are free to obtain their necessary financing from any source. The government is increasingly tightening restrictions on hiring foreign workers in favor of employment of host country nationals (reference Labor). Data Storage Singapore has no forced localization policy requiring domestic content in goods or technology. Personal data is protected under the Personal Data Protection Act of 2012, covering electronic and non-electronic data.

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INVESTMENT CLIMATE STATEMENT

Protection of Property Rights Real Property Real property interests are enforced in Singapore. Residents have access to mortgages and liens, with reliable recording of properties. In the 2015 World Bank’s, Doing Business Report, Singapore ranks number 1 in enforcing contracts, and number 24 in registering property. Foreigners are not allowed to purchase public housing (HDB) in Singapore. Under the Residential Property Act, foreigners are allowed to purchase private sector housing (condominiums or any unit within a building) without the need to obtain prior approval from the Singapore Land Authority. However, foreigners are not allowed to acquire all the apartments within a building or all the units in an approved condominium apartment without prior approval. For landed homes (houses) and vacant residential land, prior approval is required. There are no restrictions on foreign ownership of industrial and commercial real estate. In December 2011, the Singaporean Government enacted an additional effective 10% tax, or Additional Buyer’s Stamp Duty (ABSD), on foreigners who purchase homes in Singapore. In January 2013, the Singaporean Government further raised the ABSD to 15%, however, U.S. citizens are accorded national treatment under the FTA, meaning only second and subsequent purchases of residential property will be subject to 7 and 10% ABSD accordingly, the same as Singaporean citizens. Intellectual Property Rights In line with its FTA commitments and obligations under international treaties and conventions, Singapore has developed one of the stronger intellectual property rights (IPR) regimes in Asia. Some concerns remain in certain areas such as business software piracy,

online piracy and enforcement. Singapore has brought its IPR laws in line with international standards, including amending its Trademarks Act, Patents Act, the Layout Designs of Integrated Circuits Act, Registered Designs Act, and the Plant Varieties Protection Act. In accordance with its FTA obligations, Singapore has implemented Article 1 through Article 6 of the Joint Recommendation concerning Provisions on the Protection of WellKnown Marks of 1999. It has signed and ratified the International Convention for the Protection of New Varieties of Plants (1991) and the Convention Relating to the Distribution of Program-Carrying Signals Transmitted by Satellite (1974). Singapore is not listed in USTR’s Special 301 report. Singapore is a member of the WTO and a party to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). It is a signatory to other international copyright agreements, including the Paris Convention, the Berne Convention, the Patent Cooperation Treaty, the Madrid Protocol, and the Budapest Treaty. The World Intellectual Property Organization (WIPO) Secretariat opened offices in Singapore in 2005 (http://www. wipo.int/about-wipo/en/offices/singapore/). Amendments to the Trademark Act, which took effect in January 2007, fulfill Singapore’s obligations in WIPO’s revised Treaty on the Law of Trademarks. Music and film industry representatives continue to express concerns over persistent Internet piracy and a lack of effective enforcement against online peer-to-peer infringement on Singapore’s expanding highspeed broadband network. Facing reports stating Singapore has the highest incidence of per-capita online infringement in Asia, Parliament amended the Copyright Act in July 2014 to allow rights owners, or the exclusive

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a number of the proposed GIs are common names that would unfairly restrict market access and limit consumer choice. For additional information about treaty obligations and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en. Resources for Rights Holders

George Ward Economic Chief U.S. Embassy Singapore +65-6476-9100 WardGL@state.gov Local lawyers list: http://singapore.usembassy.gov/ list_of_attorneys.html

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licensees of copyrighted material, to directly apply to the high court for an injunction to block leading infringing websites. The law went into effect in December 2014. The changes to the law target websites which clearly and blatantly infringe copyright, rather than search engines or websites based primarily on user-generated content, and is designed to allow rights holders to more effectively protect online content. In February 2016, Singapore’s High Court ordered Internet service providers Singtel, StarHub and M1 to disable access to the website Solarmovie.ph which was found to be “flagrantly infringing” intellectual property, marking the first infringing website to be blocked under amended Copyright Act. The FTA ensures that government agencies will not grant approval to patent-violating products, but Singapore does allow parallel imports. Under the amended Patents Act, the patent owner has the right to bring an action to stop an importer of “grey market goods” from importing the patent owner’s patented product if the product has not previously been sold or distributed in Singapore. The FTA ensures protection of test data and trade secrets submitted to the government for product approval purposes. Disclosure of such information is prohibited for a period of five years for pharmaceuticals and ten years for agricultural chemicals. Singapore has no specific legislation concerning trade secrets. Instead, it protects investors’ commercially valuable proprietary information under common law by the Law of Confidence. U.S. industry has expressed concern that this provision is inadequate. The intellectual property chapter of the EU-Singapore FTA (EUSFTA) concluded in 2014 includes a list of 196 product names to be applied for protections as geographical indications (GIs). While the EUSFTA is not yet in force, U.S. industry has raised concerns that

Transparency of the Regulatory System The government establishes clear rules that foster competition and the U.S.-Singapore FTA enhances transparency by requiring regulatory authorities, to the extent possible, to consult with interested parties before issuing regulations, to provide advance notice, and comment periods for proposed rules, and to publish all regulations. Singapore’s legal, regulatory, and accounting systems are transparent and consistent with international norms. Notices of proposed legislation to be considered by Parliament are published, including the text of the laws, the dates of the readings, and whether or not the laws eventually pass. The government has established a centralized Internet portal—www.reach.gov.sg— to solicit feedback on selected draft legislation and regulations, a process that is being used with increasing frequency. There is no stipulated consultative period, but public consultations typically last for four weeks, with results usually consolidated and published on relevant websites. As noted in the “Openness to Foreign Investment” section, some U.S.

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companies, in particular, in the telecommunications and media sectors, are concerned about the government’s lack of transparency in its regulatory and rule-making process. Singapore strives to promote an efficient, business-friendly regulatory environment. Tax, labor, banking and finance, industrial health and safety, arbitration, wage and training rules and regulations are formulated and reviewed with the interests of both foreign investors and local enterprises in mind. Starting in 2005, a Rules Review Panel, comprising senior civil servants, began overseeing a review of all rules and regulations; this process will be repeated every five years. A Pro-Enterprise Panel of high-level public sector and private sector representatives examines feedback from businesses on regulatory issues and provides recommendations to the government. Local laws give regulatory bodies’ wide discretion to modify regulations and impose new conditions, but in practice agencies use this positively to adapt incentives or other services on a case-by-case basis to meet the needs of foreign as well as domestic companies. Procedures for obtaining licenses and permits are generally transparent and not burdensome, but some exceptions apply. Procedures can be faster for investors in areas considered national priorities. Singapore has established an online licensing portal to provide a onestop application point for multiple licenses— https://licence1.business.gov.sg/. Singapore has a private sector-led Council on Corporate Disclosure and Governance to implement the country’s Code of Corporate Governance. Compliance with the Code is not mandatory but listed companies are required under the Singapore Exchange Listing Rules to disclose their corporate governance practices and give explanations for deviations from the Code in their annual reports.

Singapore’s prescribed accounting standards (Financial Reporting Standards or FRS) are aligned with those of the International Accounting Standards Board. Companies can deviate from these standards when required to present a true and fair set of financial statements. Singapore-incorporated, publicly-listed companies can use certain alternative standards such as International Accounting Standards (IAS) or the U.S. Generally Accepted Accounting Principles (U.S. GAAP) if they are listed on foreign stock exchanges that require these standards. They do not need to reconcile their accounts with FRS. All other Singaporeincorporated companies must use FRS unless the Accounting and Corporate Regulatory Authority exempts them.

Efficient Capital Markets and Portfolio Investment The Government of Singapore actively facilitates the free flow of financial resources. Credit is allocated on market terms and foreign investors can access credit, U.S. dollars, Singapore dollars (SGD), and other foreign currencies on the local market. The Monetary Authority of Singapore (MAS) formulates and implements the country’s monetary and exchange rate policy, and supervises and regulates the country’s sophisticated financial and capital markets. Total assets under management in Singapore stood at US$1.86 trillion at the end of 2014, a 30.0% year-on-year increment (in Singapore dollar terms) in view of strong inflows and higher market valuations. About 81% of the funds managed in Singapore are foreign sourced, with some 68% of these funds invested in the AsiaPacific region. Singapore-based companies issued approximately US$20.7 billion in bonds in 2015, down from US$24.9 billion in 2014.

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that U.S. citizens may be constrained in their ability to open bank accounts at some institutions, as some Americans have been turned away by banks reportedly, or required to meet a higher deposit threshold, as a result of the additional reporting requirements associated with the U.S. Foreign Account Tax Compliance Act (FATCA) and other U.S. financial regulations. The U.S. Embassy routinely encounters U.S. citizens with complaints about not being allowed to open accounts. There have also been cases of U.S. citizens with existing accounts who have been asked by their banks to close them. U.S. Citizens are encouraged to alert the nearest U.S. Embassy of any practices they encounter with regard to the provision of financial services.

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Money and Banking System, Hostile Takeovers Singapore’s banking system is sound and well-regulated. Total domestic banking assets were about US$769.39 billion as of December 2015. Local Singapore banks are relatively small by regional standards, but are reasonably profitable and have stronger capital levels and credit ratings than many of their peers in the region. As of fourth quarter 2015, the non-performing loans (NPLs) ratio of the three local banks averaged 1.1%, slightly up from the NPL ratio of 0.9 in 2014. Banks are statutorily prohibited from engaging in non-financial business. Banks can hold 10% or less in non-financial companies as an “equity portfolio investment.” The Securities and Futures Act (SFA) of 2002 moved Singapore’s capital markets to a disclosure-based regime. The SFA allows for imposition of civil or criminal penalties against corporations listed on the Singapore Exchange (SGX) that fail to disclose material information on a continuous basis. Listed companies are required to prepare quarterly financial reporting. The SFA requires persons acquiring shareholdings of 5% or more of the voting shares of a listed company to disclose such acquisitions as well as any subsequent changes in their holdings directly to the SGX within two business days. The SFA also contains enhanced market misconduct provisions. The Act was further strengthened in 2009 to provide for stronger market misconduct enforcement with the courts empowered to order disgorgement of gains from illegal trades, and allowing the transfer of evidence between the Commercial Affairs Department of the police force and MAS. U.S. financial regulations do not restrict foreign banks’ ability to hold accounts for U.S. citizens. Anecdotal evidence suggests, however,

Competition from StateOwned Enterprises Singapore has an extensive network of government-linked corporations (GLC) that are fully or partially owned by Temasek, a holding company with the Singapore Minister of Finance as its sole shareholder As previously noted, Singapore GLCs are active in many sectors of the economy, especially strategically important sectors including telecommunications, media, public transportation, defense, port, and airport operations. In addition, the GLCs are also present in many other sectors of the economy, including banking, shipping, airline, consumer/lifestyle, infrastructure, and real estate. GLCs operate on a commercial basis and compete on a generally equal basis with private businesses, both local and foreign. However, some private sector companies have said they encountered unfair business practices and opaque bidding processes that appeared to favor incumbent, government-linked firms.

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Corporate governance within GLCs typically is guided or influenced by policies developed by Temasek. Temasek, however, does not directly manage or control the business decisions or operations of its portfolio companies, as it prefers to maintain the ability to divest GLCs transparently at will. There are differences in corporate governance disclosures and practices across the GLCs, and GLC boards are allowed to determine their own governance practices, with Temasek advisors occasionally meeting with the companies to make recommendations. GLC board seats are not specifically allocated to government officials, although retired officials are often represented on boards and fill senior management positions. OECD Guidelines on Corporate Governance of SOEs As of the end of February 2016, the top four Singapore-listed GLCs accounted for about 13.7% of total capitalization of the Singapore Exchange (SGX). Some observers have criticized the dominant role of GLCs in the domestic economy, arguing that it has displaced or suppressed private sector entrepreneurship and investment. GLCs funding decisions are often driven by goals emanating from the central government. Sovereign Wealth Funds There are two sovereign wealth funds (SWF) in Singapore, the Government of Singapore Investment Corporation (GIC) and the previously- mentioned Temasek Holdings. The government established the two SWFs to manage the Government of Singapore’s substantial investments, fiscal, and foreign reserves, with the stated objective to achieve long-term returns and preserve the international purchasing power of the reserves.

GIC, Singapore’s largest SWF, does not publish the size of its funds, but some industry observers estimate its assets exceed US$300 billion. GIC does not invest domestically, but manages Singapore’s international investments, which are generally passive (non-controlling) investments in publicly-traded entities. Its investment is entirely overseas, with the United States as its top destination, accounting for 34% of GIC’s portfolio as of March 2015. Although not required by law, since 2008 GIC has published an annual report describing its management and governance, and how it invests Singapore’s foreign reserves. Temasek’s portfolio value reached US$200 billion (SGD 266 billion) in 2015. Temasek began as a holding company for Singapore’s state-owned enterprises, now GLCs, but has since branched to other asset classes and generally focuses on holding significant (often controlling) stakes in companies. As of March 2015, Temasek’s exposure to Singapore (based on underlying assets) was 28%, with the rest of Asia accounting for 42% of its portfolio. Temasek’s stated goal is to hold and manage the government’s investments in companies for the long-term benefit of Singapore, to create jobs, and contribute to Singapore’s economic survival, progress and prosperity. Temasek formerly focused on managing industries to promote economic development, but has shifted emphasis to commercial objectives and principles. Temasek exercises its shareholder rights to influence the strategic directions of its companies but does not get involved in the day-to-day business and commercial decisions of its firms and subsidiaries. Temasek has published an annual report since 2004, but only provides consolidated financial statements, which aggregate all of

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Corporate Social Responsibility The awareness and implementation of CSR in Singapore has been increasing since the government’s formation of the Singapore Compact, a national society promoting CSR in Singapore. In May 2004, the National Tripartite Committee on CSR was established to study the issues holistically and address any gaps at the national level. The initiative provides strategic direction and overall coordination for various CSR programs, which include helping small and medium-sized enterprises (SMEs) adopt good CSR practices. In January 2005, the Singapore Compact for Corporate Social Responsibility was set up to provide a forum for collaboration, support, and information sharing on good CSR practices. In June 2015, the society rebranded itself as the Global Compact Network Singapore (GCNS) under the United Nations Global Compact (UNGC) network, with the goals of encouraging companies to adopt sustainability principles related to human and labor rights, environmental conservation, and anti-corruption. GCNS facilitates exchanges, conducts research, and

provides training in Singapore to build capacity in areas including sustainability reporting, supply chain management, ISO 26000, measuring and reporting carbon emissions. The Singapore Stock Exchange implemented a requirement in June 2011 that listed companies report on their sustainable business practices. The Singapore Environmental Council (SEC) developed a green labeling scheme which endorses environmentally-friendly products, numbering over 3,000 from 27 countries. The Association of Banks in Singapore (ABS) issued guidelines to banks in Singapore in October 2015 encouraging them to adopt sustainable lending practices, including the integration of environmental, social and governance (ESG) principles into their lending and business practices. While voluntary, the move marks the first time Singapore’s financial sector has been asked to play a significant role in sustainable development. Singapore has no oil, gas, or mineral resources and is not a member of the Extractive Industries Transparency Initiative (EITI). A small sector processes and rare minerals, and complies with responsible supply chains and conflict mineral principles. Singapore has not developed a National Action Plan on business and human rights, but supports and promotes responsible business practices and encourages foreign and local enterprises to follow generally accepted CSR principles.

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Temasek’s subsidiaries into a single financial report. Temasek follows the Santiago Principles for SWF good practices. Singapore is a member of the IMF international Working Group of Sovereign Wealth Funds. Other leading GLC investing entities include EDB, which has its own private equity and venture capital arm in the form of EDB Investments Pte Ltd, Singapore’s Housing Development Board, which has the power to incorporate private companies as part of its charter, and other Singaporean Government agencies, with funding decisions driven by goals emanating from the central government.

Political Violence Singapore’s political environment is stable and there is no history of incidents involving politically motivated damage to foreign investments in Singapore. The ruling People’s Action Party (PAP) has dominated Singapore’s parliamentary government since 1959, and currently controls 83 of the 89 regularly contested

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parliamentary seats. Singapore opposition parties, which currently hold six regularly contested parliamentary seats and three additional seats reserved to the opposition by the constitution, do not usually espouse views that are radically different from the mainstream of Singapore political opinion.

Corruption Corruption, including bribery, raises the costs and risks of doing business. Corruption has a corrosive impact on both market opportunities overseas for U.S. companies and the broader business climate. It also deters international investment, stifles economic growth and development, distorts prices, and undermines the rule of law. It is important for U.S. companies, irrespective of their size, to assess the business climate in the relevant market in which they will be operating or investing, and to have an effective compliance program or measures to prevent and detect corruption, including foreign bribery. U.S. individuals and firms operating or investing in foreign markets should take the time to become familiar with the relevant anticorruption laws of both the foreign country and the United States in order to properly comply with them, and where appropriate, they should seek the advice of legal counsel. The U.S. Government seeks to level the global playing field for U.S. businesses by encouraging other countries to take steps to criminalize their own companiesâ&#x20AC;&#x2122; acts of corruption, including bribery of foreign public officials, by requiring them to uphold their obligations under relevant international conventions. A U. S. firm that believes a competitor is seeking to use bribery of a foreign public official in international business, for example to secure a contract, should bring this to the attention

of appropriate U.S. agencies, as noted below. U.S. Foreign Corrupt Practices Act: In 1977, the United States enacted the Foreign Corrupt Practices Act (FCPA), which generally makes it unlawful for U.S. persons and businesses (domestic concerns), and U.S. and foreign public companies listed on stock exchanges in the United States or which must file periodic reports with the Securities and Exchange Commission (issuers), to offer, promise or make a corrupt payment or anything of value to foreign officials to obtain or retain business. The FCPA also applies to foreign firms and persons who take any act in furtherance of such a corrupt payment while in the United States. In addition to the anti-bribery provisions, the FCPA contains accounting provisions applicable to public companies. The accounting provisions require issuers to make and keep accurate books and records and to devise and maintain an adequate system of internal accounting controls. The accounting provisions also prohibit individuals and businesses from knowingly falsifying books or records or knowingly circumventing or failing to implement a system of internal controls. In order to provide more information and guidance on the statute, the Department of Justice and the Securities and Exchange Commission published A Resource Guide to the U.S. Foreign Corrupt Practices Act, available in PDF at: http://www.justice.gov/criminal/fraud/ fcpa/guidance/. For more detailed information on the FCPA generally, see the Department of Justice FCPA website at: http://www.justice. gov/criminal/fraud/fcpa/. Other Instruments: It is U.S. Government policy to promote good governance, including host countriesâ&#x20AC;&#x2122; implementation and enforcement of anti-corruption laws and policies pursuant to their obligations under international agreements. Since enactment of the FCPA,

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and laundering of the proceeds of corruption. The Convention contains transnational business bribery provisions that are functionally similar to those in the OECD Antibribery Convention and contains provisions on private sector auditing and books and records requirements. Other provisions address matters such as prevention, international cooperation, and asset recovery. OAS Convention: In 1996, the Member States of the Organization of American States (OAS) adopted the first international anticorruption legal instrument, the InterAmerican Convention against Corruption (OAS Convention), which entered into force in March 1997. The OAS Convention, among other things, establishes a set of preventive measures against corruption, provides for the criminalization of certain acts of corruption, including transnational bribery and illicit enrichment, and contains a series of provisions to strengthen the cooperation between its States Parties in areas such as mutual legal assistance and technical cooperation. As of January 2016, the OAS Convention has 34 parties (see http://www.oas.org/juridico/ english/Sigs/b-58.html) and the follow-up mechanism created in 2001 (MESICIC) has 31 members (see http://www.oas.org/juridico/ english/mesicic_intro_en.htm). Council of Europe Criminal Law and Civil Law Conventions on Corruption: Many European countries are parties to either the Council of Europe (CoE) Criminal Law Convention on Corruption, the Civil Law Convention on Corruption, or both. The Criminal Law Convention requires criminalization of a wide range of national and transnational conduct, including bribery, money-laundering, and accounting offenses. It also incorporates provisions on liability of legal persons and witness protection. The

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INVESTMENT CLIMATE STATEMENT

the United States has been instrumental to the expansion of the international framework to fight corruption. Several significant components of this framework are the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions negotiated under the auspices of the OECD (Antibribery Convention), the United Nations Convention against Corruption (UN Convention), the InterAmerican Convention against Corruption (OAS Convention), the Council of Europe Criminal and Civil Law Conventions, and a growing list of U.S. free trade agreements. OECD Antibribery Convention: The Antibribery Convention entered into force in February 1999. As of January 2016, there are 41 parties to the Convention, including the United States (see http://www.oecd.org/corruption/ oecdantibriberyconvention.htm). Major exporters China and India are not parties, although the U.S. Government strongly endorses their eventual accession to the Antibribery Convention. The Antibribery Convention obligates the Parties to criminalize bribery of foreign public officials in international business transactions, which the United States has done under U.S. FCPA. Singapore is not a party to the OECD Convention on Combating Bribery, but the Prevention of Corruption Act makes it a crime for a Singapore citizen to bribe a foreign official or any other person, whether within or outside Singapore. UN Convention: The UN Convention entered into force on December 14, 2005, and there are 178 parties to it as of January 2016 (see http://www.unodc.org/unodc/en/treaties/ CAC/signatories.html). The UN Convention requires countries to establish criminal and other offences to cover a wide range of acts of corruption, from basic forms of corruption such as bribery and solicitation, embezzlement, and trading in influence to the concealment

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Civil Law Convention includes provisions on whistleblower protection, compensation for damage relating to corrupt acts, and nullification of a contract providing for or influenced by corruption, inter alia. The Group of States against Corruption (GRECO) was established in 1999 by the CoE to monitor compliance with these and related anti-corruption standards. Currently, GRECO comprises 49 member States (48 European countries and the United States). See http:// www.coe.int/t/dghl/monitoring/greco/ general/about_en.asp. As of January 2016, the Criminal Law Convention has 44 parties and the Civil Law Convention has 35 (see http://conventions.coe.int/Treaty/Commun/ QueVoulezVous.asp?CL=ENG&NT=173; http://conventions.coe.int/Treaty/Commun/ QueVoulezVous.asp?CL=ENG&NT=174). Free Trade Agreements: While it is U.S. Government policy to include anticorruption provisions in free trade agreements (FTAs) that it negotiates with its trading partners, the anticorruption provisions have evolved over time. The most recent FTAs negotiated now require trading partners to criminalize “active bribery” of public officials (offering bribes to any public official must be made a criminal offense, both domestically and trans-nationally) as well as domestic “passive bribery” (solicitation of a bribe by a domestic official). All U.S. FTAs may be found at the U.S. Trade Representative Website: http://www.ustr.gov/trade-agreements/freetrade-agreements. Singapore has a free trade agreement in place with the United States. The United States-Singapore Free Trade Agreement came into force in Jan 1, 2004. Local Laws: U.S. firms should familiarize themselves with local anticorruption laws, and, where appropriate, seek legal counsel. While the U.S. Department of Commerce cannot provide legal advice on local laws, the

Department’s U.S. and Foreign Commercial Service can provide assistance with navigating the host country’s legal system and obtaining a list of local legal counsel. Assistance for U.S. Businesses: The U.S. Department of Commerce offers several services to aid U.S. businesses seeking to address business-related corruption issues. For example, the U.S. Commercial Service can provide services that may assist U.S. companies in conducting their due diligence as part of the company’s overarching compliance program when choosing business partners or agents overseas. The U.S. and Foreign Commercial Service can be reached directly through its offices in every major U.S. and foreign city, or through its website at www.trade.gov/cs. The United States provides commercial advocacy on behalf of exporters of U.S. goods and services bidding on public sector contracts with foreign governments and government agencies. An applicant for advocacy must complete a questionnaire concerning its background, the relevant contract, and the requested U.S. Government assistance. The applicant must also certify that it is in compliance with applicable U.S. law, that it and its affiliates have not and will not engage in bribery of foreign public officials in connection with the foreign project, and that it and its affiliates maintain and enforce a policy that prohibits bribery of foreign public officials. Problems, including alleged corruption by foreign governments or competitors, encountered by U.S. companies in seeking such foreign business opportunities can be brought to the attention of appropriate U.S. government officials, including local embassy personnel, and reported through the Department of Commerce Trade Compliance Center “Report a Trade Barrier” Website at tcc.export.gov/Report_a_Barrier/ index.asp. Potential violations of the FCPA can

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Singapore actively enforces its strong anti-corruption laws. The Prevention of Corruption Act, and the Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act provide the legal basis for government action by the Corrupt Practices Investigation Bureau, an anti-corruption agency that reports to the Prime Minister. These laws cover acts of corruption both within Singapore as well as those committed by Singaporeans abroad. When cases of corruption are uncovered, whether in the public or private sector, the government deals with them firmly, swiftly and publicly, as they do in cases where public officials are involved in dishonest and illegal behavior.

INVESTMENT CLIMATE STATEMENT

be reported to the Department of Justice via email to FCPA.Fraud@usdoj.gov. Guidance on the U.S. FCPA: The Department of Justice’s (DOJ) FCPA Opinion Procedure enables U.S. firms and individuals and issuers to request a statement of the Justice Department’s present enforcement intentions under the anti-bribery provisions of the FCPA regarding actual, prospective business conduct. The details of the opinion procedure are available on DOJ’s Fraud Section Website at www.justice.gov/criminal/fraud/ fcpa and general information is contained in Chapter 9 of the publication A Resource Guide to the U.S. Foreign Corrupt Practices Act, at http://www.justice.gov/criminal/fraud/ fcpa/guidance/. Although the Department of Commerce has no enforcement role with respect to the FCPA, it supplies general information to U.S. exporters who have questions about the FCPA and about international developments concerning the FCPA. For further information, see the Office of the General Counsel, U.S. Department of Commerce, website, at http://www.commerce.gov/os/ogc/ transparency-and-anti-bribery-initiatives. More general information on the FCPA is available at the websites listed below. Exporters and investors should be aware that generally all countries prohibit the bribery of their public officials, and prohibit their officials from soliciting bribes under domestic laws. Most countries are required to criminalize such bribery and other acts of corruption by virtue of being parties to various international conventions discussed above. Singapore typically ranks as the least corrupt country in Asia and one of the least corrupt in the world. Singapore was eighth (i.e., with one being least corrupt) on watchdog group Transparency International (TI)’s global index in 2015.

UN Anticorruption Convention, OECD Convention on Combatting Bribery Singapore is not a party to the OECD Convention on Combating Bribery, but the Prevention of Corruption Act makes it a crime for a Singapore citizen to bribe a foreign official or any other person, whether within or outside Singapore. Resources to Report Corruption Corrupt Practices Investigation Bureau 2 Lengkok Bahru, Singapore 159047 +65 6270 0141

ANTI-CORRUPTION RESOURCES | Some useful resources for individuals and companies regarding combating corruption in global markets include the following: Information about the U.S. Foreign Corrupt Practices Act (FCPA), including A Resource Guide to the U.S. Foreign Corrupt Practices Act, translations of the statute into numerous languages, documents from FCPA related prosecutions and resolutions, and press releases are available at the U.S. Department of Justice’s Website at: http://www.justice.gov/

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criminal/fraud/fcpa and http://www.justice. gov/criminal/fraud/fcpa/guidance. The U.S. Securities and Exchange Commission FCPA Unit also maintains an FCPA website, at: https://www.sec.gov/spotlight/fcpa.shtml. The website, which is updated regularly, provides general information about the FCPA, links to all SEC enforcement actions involving the FCPA, and contains other useful information. General information about anticorruption and transparency initiatives, relevant conventions and the FCPA, is available at the Department of Commerce Office of the General Counsel website: http://www.commerce.gov/os/ogc/ transparency-and-anti-bribery-initiatives. The Trade Compliance Center hosts a website with anti-bribery resources, at http://tcc. export.gov/Bribery. This website contains an online form through which U.S. companies can report allegations of foreign bribery by foreign competitors in international business transactions. Additional country information related to corruption can be found in the U.S. State Department’s annual Human Rights Report available at http://www.state.gov/g/drl/rls/hrrpt/. Information about the OECD Antibribery Convention including links to national implementing legislation and country monitoring reports is available at: http://www.oecd. org/corruption/oecdantibriberyconvention. htm. See also Antibribery Recommendation http://www.oecd.org/daf/anti-bribery/ oecdantibriberyrecommendation2009.htm and Good Practice Guidance Annex for companies: http://www.oecd.org/daf/antibribery/44884389.pdf. GRECO monitoring reports can be found at: http://www.coe.int/t/dghl/ monitoring/greco/evaluations/index_en.asp. MESICIC monitoring reports can be found

at: http://www.oas.org/juridico/english/ mesicic_intro_en.htm The Asia Pacific Economic Cooperation (APEC) Leaders have also recognized the problem of corruption and APEC Member Economies have developed anticorruption and ethics resources in several working groups, including the Small and Medium Enterprises Working Group, at http://businessethics.apec. org/, and the APEC Anti-Corruption and Transparency Working Group, at http://www. apec.org/Groups/SOM-Steering-Committeeon-Economic-and-Technical-Cooperation/ Working-Groups/Anti-Corruption-andTransparency.aspx. For more information on APEC generally, http://www.apec.org/. There are many other publicly available anticorruption resources which may be useful, some of which are listed below without prejudice to other sources of information that have not been included. (The listing of resources below does not necessarily constitute U.S. Government endorsement of their findings.) Transparency International (TI) publishes an annual Corruption Perceptions Index (CPI). The CPI measures the perceived level of public-sector corruption in approximately 180 countries and territories around the world. The CPI is available at: http://www.transparency. org/research/cpi/overview. TI also publishes an annual Global Corruption Report which provides a systematic evaluation of the state of corruption around the world. It includes an in-depth analysis of a focal theme, a series of country reports that document major corruption related events and developments from all continents, and an overview of the latest research findings on anti-corruption diagnostics and tools. See http://www. transparency.org/research/gcr. The World Bank Institute’s Worldwide Governance Indicators (WGI) project reports

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Bilateral Investment Agreements Singapore has 41 bilateral investment treaties (BIT) currently in force, including a BIT and a Free Trade Agreement (FTA) with the United

States. These agreements mutually protect nationals or companies of either economy against war and non-commercial risks of expropriation and nationalization. Singapore has signed free trade/economic cooperation agreements that include investment chapters with Australia, China, the European Free Trade Association (Switzerland, Norway, Lichtenstein, and Iceland), India, Japan, New Zealand, Panama, Peru, South Korea, Costa Rica, the United States, and the separate customs territory of Taiwan, Penghu, Kinmen, and Matsu. Singapore has completed negotiations with the European Union and Turkey, and is negotiating FTAs with Canada, Mexico, Pakistan, and Ukraine. Singapore also has agreements with Jordan and the Gulf Cooperation Council (comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates), but these agreements do not contain investment chapters. Singapore is a member of the Association of Southeast Asian Nations (ASEAN), which has concluded FTAs with Australia and New Zealand, China, India, and South Korea, and a Comprehensive Economic Partnership Agreement with Japan. Singapore is also a member of the Trans-Pacific Partnership, a multi-lateral free trade agreement signed in February 2016 that includes Singapore, the U.S. and ten other countries (Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Japan and Viet Nam). The agreement has not yet been ratified. Singapore is also leading the goods chapterâ&#x20AC;&#x2122;s negotiations for the Regional Comprehensive Economic Partnership (RCEP) FTA which was launched in November 2012 and includes ASEAN members plus Australia, China, India, Japan, New Zealand, and South Korea. Singapore has signed Comprehensive Avoidance of Double Taxation Agreements with a number of economies, but not with the United States.

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INVESTMENT CLIMATE STATEMENT

aggregate and individual governance indicators for 215 economies over the period 1996-2014, for six dimensions of governance (Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption). See http://info.worldbank.org/ governance/wgi/index.aspx#home. The World Bank Business Environment and Enterprise Performance Surveys may also be of interest and are available at: http://data.worldbank. org/data-catalog/BEEPS. See also the World Bank Group Doing Business reports, a series of annual reports measuring regulations affecting business activity, available at: http:// www.doingbusiness.org/. The World Economic Forum publishes every two years the Global Enabling Trade Report, which assesses the quality of institutions, policies and services facilitating the free flow of goods over borders and to their destinations. At the core of the report, the Enabling Trade Index benchmarks the performance of 138 economies in four areas: market access; border administration; transport and communications infrastructure; and regulatory and business environment. See http://www.weforum.org/reports/ global-enabling-trade-report-2014. Global Integrity, a nonprofit organization, publishes its annual Global Integrity Report, which typically assesses anti-corruption and good governance mechanisms in diverse countries. For more information on the report, see https://www.globalintegrity.org.

INVESTMENT CLIMATE STATEMENT

Bilateral Taxation Treaties U.S. financial regulations do not restrict foreign banks’ ability to hold accounts for U.S. citizens. Anecdotal evidence suggests, however, that U.S. citizens may be constrained in their ability to open bank accounts at some institutions, as some Americans have been turned away by banks, or required to meet a higher deposit threshold, reportedly as a result of the additional reporting requirements associated with the U.S. Foreign Account Tax Compliance Act (FATCA) and other U.S. financial regulations. The U.S. Embassy routinely encounters U.S. citizens with complaints about not being allowed to open accounts. There have also been cases of U.S. citizens with existing accounts who have been asked by their banks to close them. U.S. Citizens are encouraged to alert the nearest U.S. Embassy of any practices they encounter with regard to the provision of financial services.

OPIC and Other Investment Insurance Programs Under the 1966 Investment Guarantee Agreement with Singapore, the Overseas Private Investment Corporation (OPIC) offers insurance to U.S. investors in Singapore against currency inconvertibility, expropriation, and losses arising from war. Singapore became a member of the Multilateral Investment Guarantee Agency (MIGA) in 1998.

Labor As of June 2015, Singapore’s labor market totaled 3.61 million workers; this includes about 1.37 million foreigners of which about 85% are unskilled or semi-skilled workers. The labor market continues to be tight, with unemployment at 2% in 2015. Local labor laws

allow for relatively free hiring and firing practices. Either party can terminate employment by giving the other party the required notice. The Ministry of Manpower (MOM) must approve employment of foreigners. Since 2011 the Government has introduced policy measures to support productivity increases coupled with reduced dependence on foreign labor. The MOM has started tightening foreign labor approvals, resulting in many businesses in Singapore voicing discontent at not being able to access sufficient labor. In order to tackle the growing concerns that many foreigners are displacing locals in the job market, as well as perceptions that foreign managers are hiring other foreigners instead of recruiting locally according to merit, Singapore’s Ministry on Manpower (MOM) announced a ruling in September 2013, requiring employers to consider Singaporeans fairly before hiring skilled professional foreigners. The new rules, known as the Fair Consideration Framework (FCF) were implemented from August 2014 and affect employers who apply for Employment Passes (EP), the work pass for foreign professionals working in professional, manager and executive (PME) posts. Companies have noted inconsistent and increasingly burdensome documentation requirements and excessive qualification criteria to approve EP applications. Under the rules, firms making new EP applications must first advertise the job vacancy in a new jobs bank administered by the Singapore Workforce and Development Agency (WDA) for at least 14 days. The jobs bank will be free for use by companies and job seekers and the job advertisement must be open to all Singaporeans. Employers are encouraged to keep records of their interview process as proof that they have done due diligence in trying to look for a Singaporean

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also provides incentives and assistance to firms to automate and invest in labor-saving technology in an effort to increase productivity levels in traditionally low-productivity sectors. Labor-management relations in Singapore are generally amicable. Singapore’s labor laws provide for the right of most workers to form and join trade unions. Workers have the legal right to strike and to bargain collectively. There is no law prohibiting antiunion discrimination, and no specific laws prohibit retaliation against strikers. Although workers, other than those employed in the three essential services of water, gas and electricity, can strike, no workers did so between 1986 and 2011. Workers in “essential services” are required to give 14 days’ notice to an employer before striking. About 24% of the workforce is unionized. The majority of unions are affiliated with the National Trades Union Congress (NTUC), which maintains a symbiotic relationship with the PAP ruling party and close relations with the government. The current NTUC Secretary General is also a Minister in the Prime Minister’s Office. In November 2012, some 171 SMRT bus drivers from China held an illegal strike. The drivers complained about poor living conditions and lower wages compared to Malaysian drivers. The incident resulted in four Chinese drivers being charged in a Singapore court and pleading guilty for instigating the strike and causing public inconvenience, resulting in jail terms between six and seven weeks. Another 29 Chinese SMRT bus drivers had their work permits revoked and were deported. No strikes in recent years have posed an investment risk. Most labor disagreements are resolved through conciliation by the Ministry of Manpower. If conciliation fails, the disputing parties usually submit their case to the tripartite Industrial Arbitration Court, composed of employee and management representatives and

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INVESTMENT CLIMATE STATEMENT

worker. If an EP is still needed, the employer will have to make a statutory declaration that a job advertisement with the national jobs bank had been made. Some exceptions have been made for smaller firms with 25 or fewer employees and jobs which pay a fixed monthly salary of US$8,730 (SGD 12,000) or more will not be subjected to the advertising requirement. Consistent with Singapore’s WTO obligations, intra-corporate transfers (ICT) are allowed for managers, executives, and specialists who had worked for at least one-year in the firm before being posted to Singapore. ICT would still be required to meet all EP criteria, but the requirement for an advertisement in the jobs data bank would be waived. In July 2015, MOM announced that starting 1 October 2015, companies will be required to publish the salary range of job vacancies they post to comply with the FCF’s advertising requirement. MOM also warned it will increasingly scrutinize EP applications from firms with a lower proportion of Singaporean PMEs relative to other firms in the same industry. In April 2016, MOM, outlined measures to refine the work pass applications process going forward, looking not only at the qualifications of individuals, but of companies. Any companies found not to have a “healthy Singaporean core,” demonstrated commitment to developing a Singaporean core, and not to be “relevant” to Singapore’s economy and society, will be labeled “triple weak” and put on a watchlist. Companies not demonstrating progress can have work pass privileges suspended. As of April 2016, approximately 100 companies have been watchlisted. Singapore imposes a ceiling on the ratio of unskilled/semi-skilled foreign workers to local workers that a company can employ, and charges a monthly levy for each unskilled or semi-skilled foreign worker. The government

chaired by a judge. In some situations the law provides for compulsory arbitration. The court must certify collective agreements before they go into effect. The court may refuse certification at its discretion on the ground of public interest. Collective bargaining is a normal part of labor-management relations in all sectors. Given that nearly all unions are NTUC affiliates, the NTUC has almost exclusive authority to exercise collective bargaining power on behalf of employees. Union members may not reject collective agreements negotiated between their union representatives and an employer. Although transfers and layoffs are excluded from the scope of collective bargaining, employers consult with unions on both problems, and the Tripartite Panel on Retrenched Workers issues guidelines calling for early notification to unions of layoffs. Singapore law prohibits all forms of forced or compulsory labor. The Prevention of Human Trafficking Act, which strengthened victim protection and the role of law enforcement, went into effect in March 2015. MOM is responsible for combating labor trafficking and improving working conditions for workers, and generally enforces anti-trafficking legislation, although some workers in low-wage and unskilled sectors are vulnerable to labor exploitation and abuse. Some observers note that the countryâ&#x20AC;&#x2122;s employer sponsorship system made legal migrant workers vulnerable to forced labor. MOM effectively enforces laws and regulations pertaining to child labor. Penalties for employers that violated child labor laws were subject to fines and/or imprisonment, depending on the violation. Government officials assert that child labor is not a significant issue. The incidence of children in formal employment is low, and almost no abuses have been reported. Labor laws set the standard legal workweek at 44 hours, with one rest day each week,

and establish a framework for workplaces to comply with occupational safety and health standards, with regular inspections designed to enforce the standards. MOM effectively enforces laws and regulations establishing working conditions and comprehensive occupational safety and health (OSH) laws, and implements enforcement procedures and promoted educational and training programs to reduce the frequency of job-related accidents (see the U.S. State Department Human Rights Report: http://www.state.gov/j/drl/rls/hrrpt/ humanrightsreport/#wrapper). Singapore has no across the board minimum wage law, although there are some exceptions in certain low skill industries. Generally, the government follows a policy of allowing free market forces to determine wage levels. The National Wage Council (NWC), a tripartite body comprising a Chairman and representatives from the Government, employers and unions, recommends non-binding wage adjustments on an annual basis. The NWC recommendations apply to all employees in both domestic and foreign firms, and across the private and public sectors. While the NWC wage guidelines are not mandatory, they are widely implemented. The level of implementation is generally higher among unionized companies compared to non-unionized companies.

Foreign Trade Zones/ Free Ports/Trade Facilitation Singapore has nine free-trade zones (FTZs), seven for seaborne cargo and two for airfreight. The FTZs may be used for storage and repackaging of import and export cargo, and goods transiting Singapore for subsequent re-export. Manufacturing is not carried out within the zones. Foreign and local firms have equal access to the FTZ facilities.

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Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy Host Country Statistical source*

USG or international statistical source

Economic Data

Year

Amount

Year

Host Country Gross Domestic Product (GDP) ($M US$)

2015

$ 292.7 billion

2014

Foreign Direct Investment

USG or International Source of Data: BEA; IMF; Eurostat; UNCTAD, Other

Amount $307.9 billion www.worldbank.org/en/country

Host Country Statistical USG or international source* statistical source

USG or international Source of data: BEA; IMF; Eurostat; UNCTAD, Other

U.S. FDI in partner country ($M US$, stock positions)

2014

$118 billion

2014

$179.8 billion

http://bea.gov/international/factsheet/ factsheet.cfm?Area=625

Host country’s FDI in the United States ($M US$, stock positions)

2014

$9.3 billion

2014

$20.6 billion

http://bea.gov/international/factsheet/ factsheet.cfm?Area=625

Total inbound stock of FDI as % host GDP

2014

3.2%

2014

6.7%

INVESTMENT CLIMATE STATEMENT

Foreign Direct Investment and Foreign Portfolio Investment Statistics

Source: Singapore Department of Statistics

Table 3: Sources and Destination of FDI Direct Investment from/in Counterpart Economy Data From Top Five Sources/To Top Five Destinations (US Dollars, Millions)

Inward Direct Investment (2014)

Outward Direct Investment (2014)

Total Inward

806,768

100%

Total Outward

476,841.6

100%

U.S.

109,999

14%

China

88,058.2

18.5%

Netherlands

73,520

Cayman Islands

45,635.9

9.6%

British Virgin Islands

61,167

Hong Kong

38,984.1

8.2%

Japan

58,768

Indonesia

35,689.2

7.5%

Cayman Islands

52,121

Australia

34,320.4

7.2%

“0” reflects amounts rounded to +/- US$ 500,000. Source: IMF Coordinated Direct Investment Survey (Inward) and Singapore Department of Statistics (Outward)

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INVESTMENT CLIMATE STATEMENT

Table 4: Sources of Portfolio Investment Portfolio Investment Assets (2015) Top Five Partners (Millions, US Dollars)

Total

Equity Securities

Total Debt Securities

All Countries

965,867

100%

All Countries

504,197

100%

All Countries

461,671

100%

U.S.

269,495

28%

U.S.

126,541

25%

U.S.

142,955

31%

China

12,080

12%

China

84,623

17%

China

27,457

India

55,636

Taiwan

31,063

India

27,246

Korea

India

Korea

21,059

39,085

Japan

19,112

28,390 26,200

Source: Coordinated Portfolio Investment Survey (http://data.imf. org/?sk=B981B4E3-4E58-467E-9B90-9DE0C3367363)

Contact for more information on the Investment Climate Statement George Ward Economic Chief U.S. Embassy Singapore +65-6476-9100 WardGL@state.gov

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TRADE & PROJECT FINANCING

Methods of Payment Singapore has a well-developed financial system, which offers a full range of export finance instruments. Shipments are generally made under letters of credit and sight drafts (or bills of exchange), depending on the exporterâ&#x20AC;&#x2122;s preference and the extent of past dealings with the purchaser. Standard credit terms are generally 30 to 90 days and they are allocated on market terms. Quotations are generally made on a C.I.F. basis. Prices given in U.S. dollars should be clearly stated

to avoid confusion with the Singapore dollar. Exporters making quotations in Singapore dollars should consult their banks for the prevailing exchange rate. Singapore uses the metric system, so it is beneficial for price/quantity quotations to be prepared accordingly. In Singapore, there are easily 70 different types of credit cards on offer (http://moneyline. sg/compare/credit-cards/) all with different promotions, services and conditions. However, charge cards face intense competition from credit cards catering to high net

Image courtesy of the Singapore Tourism Board

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TRADE & PROJECT FINANCING 74

worth individuals. For example, some banks that issue charge cards require potential card holders to have SGD 5 million (US$3.7 million) of investable assets with the bank.

Banking Systems Singapore is a reputable international financial center. It is a leading world foreign exchange trading center and trader in derivatives. There are about 900 local and foreign banking and financial institutions in Singapore that provide services relating to trade financing, foreign exchange, derivatives products, capital markets activities, loan syndication, underwriting, mergers and acquisitions, asset management, securities trading, financial advisory services, and specialized insurance services. The Monetary Authority of Singapore (MAS) performs all the functions of a central bank including the issuance of currency. The unit of legal tender is the Singapore dollar. The MAS is a wholly owned and controlled statutory board under the Ministry of Finance; it is responsible for all matters relating to banks and financial institutions. Besides regulating financial institutions, the MAS has a Financial Sector Promotion Department that promotes new financial activities, develops IT infrastructure and manpower resources for the financial sector, and designs appropriate incentives to attract international financial firms to conduct activities in Singapore. In October 2005, Singapore enacted the Deposit Insurance Act and the deposit insurance program took effect from April 1, 2006. In the event that a bank or finance company fails, the program compensates individuals and charities for the first SGD 20,000 (about US$14,800) of their Singapore dollar deposits in standard savings, current and fixed deposit accounts, and net of liabilities. The program compensates depositors through a fund built up from contributions

by full banks and finance companies. For deposits in excess of the payout, individual depositors can also claim from assets of the failed bank. Depositors and policyholders, in the case of an insurance company, would rank ahead of unsecured creditors and shareholders in their claims. The MAS, together with the Singapore Deposit Insurance Corporation (SDIC) that administers the deposit insurance program, will review the coverage limit regularly, taking into consideration the objectives of the program and international norms. The MAS is known and respected as an effective regulator/supervisor of the financial services sector. MAS will require Singaporeincorporated banks to meet a minimum Common Equity Tier 1 (“CET1”) capital adequacy ratio (“CAR”) of 6.5%, Tier 1 CAR of 8% and Total CAR of 10% from 1 January 2015. These standards (http://www.mas.gov. sg/news-and-publications/media-releases/ 2011/mas-strengthens-capital-requirements-forsingapore-incorporated-banks.aspx) are higher than the Basel III minimum requirements of 4.5%, 6% and 8% for CET1 CAR, Tier 1 CAR and Total CAR, respectively. Financial statements are in compliance with international standards and internationally recognized accounting firms perform audits. In December 2015, total combined assets/liabilities of Singapore’s domestic banking sector amounted to US$602 billion, which is a 2.4% decrease from the previous year due to the exchange rate.

Foreign Exchange Controls Singapore has no significant restrictions on remittances, foreign exchange transactions and capital movements. It also does not restrict reinvestment or repatriation of earnings and capital. In addition, The U.S.-Singapore FTA underpins the shared commitment of the United

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

U.S. Banks & Local Correspondent Banks As of March 28, 2016, there were 28 foreign full service licensees, 53 wholesale licensees, and 38 offshore licensees operating in Singapore. Of the 29 foreign full service licensees, the government has granted “qualifying full bank” (QFB) licenses to 10 foreign banks, one of which is Citibank Singapore. Except in retail banking, Singapore laws do not distinguish operationally between foreign and domestic banks. The four U.S. banks with a license to provide full banking services are: Bank of America N.A., Citibank N.A., Citibank Singapore Limited, and JPMorgan Chase Bank N.A. The MAS maintains a full directory of local and foreign banks and financial institutions (including U.S.-headquartered entities) that operate in Singapore. Access to this directory is free and is available at the following website: https://secure.mas.gov.sg/fid.

Project Financing Singapore is considered a developed country and does not receive development assistance from multilateral institutions. U.S. government agencies such as the ExportImport Bank of the United States and the U.S. Department of Agriculture, Overseas Private Investment Corporation (OPIC), as well as state and local bodies (e.g., Small Business Administration) offer a variety of programs to assist exporters with their financing and insurance needs. Ex-Im Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services. One example is the Medium Term Delegated Authority (MTDA) lender scheme underwritten by Ex-Im Bank. The MTDA program offers exporters quick access to buyer financing from a network of lenders who have authority to write loans that will be guaranteed by the Bank. Firms seeking such assistance should contact their nearest Export Assistance Center (http://www.export. gov/usoffices/index.asp). ♦

TRADE & PROJECT FINANCING

States and Singapore to the free transfer of capital, unimpeded by regulatory restrictions.

Financing Web Resources Trade Finance Guide: A Quick Reference for U.S. Exporters, published by the International Trade Administration’s Industry & Analysis team: https://www.export.gov/TradeFinanceGuide Export-Import Bank of the United States: http://www.exim.gov Country Limitation Schedule: http://www.exim.gov/tools-for-exporters/country-limitation-schedule OPIC: http://www.opic.gov Trade and Development Agency: https://www.ustda.gov/ SBA’s Office of International Trade: http://www.sba.gov/oit/ USDA Commodity Credit Corporation: https://www.fsa.usda.gov/about-fsa/structure-and-organization/commodity-credit-corporation/index U.S. Agency for International Development: http://www.usaid.gov

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

BUSINESS TRAVEL

Business Customs Business discussions are usually conducted in a very straightforward manner. English is widely spoken and most businesspeople are skilled and technically knowledgeable. Furthermore, most agents and distributors have visited the United States and often handle several American product lines. Corruption is virtually non-existent. Many Singapore business people are of ethnic Chinese background, and many of them will have “Western” first names (e.g., Nancy Goh). Those with only a Chinese name presented on business cards will list his/her family name before their first name. For example, a person whose card reads “Mr. Chan Yiu Kei” would be addressed as “Mr. Chan.” The names of business people of Malay or Indian descent are written and spoken as given name followed by family name. For the sake of politeness and respect, it is wise to address a businessperson by the last name rather than the first name until invited to use a given name. When in doubt it is not impolite to ask. The common and polite Singaporean phrase is ‘How shall I address you?’ Business cards are a must as they are immediately exchanged during business and social meetings. The East Asian practice of presenting a business card with both hands is observed. There is no need to have special business cards printed in Chinese. Located a one degree from the Equator,

Singapore has a constant tropical climate yearround. Daytime temperatures average between 85 and 90 degrees Fahrenheit. Humidity is very high and rain showers are frequent. Temperatures at night average between 76 and 80 degrees. All public buildings, indoor restaurants and taxis are air-conditioned. Summer-weight suits/dresses, several dress-shirts, and an umbrella are recommended for the traveler. Singapore business dress is a long-sleeved shirt and tie for men, although one will not be out of place without a tie. Some formal meetings call for a coat and tie. Businesswomen wear light-weight attire. Evening dinner-dress is a shirt and tie for men but there isn’t a strict dress code for women. Tipping is not customary in Singapore. Restaurants automatically add a 10% service charge and a 7% goods and services tax (GST) to the bill.

Travel Advisory Americans traveling abroad should regularly monitor the Department of State, Bureau of Consular Affairs’ web site at http://travel. state.gov, where current Travel Warnings and Travel Alerts, as well as Worldwide Caution alerts, can be found. While in a foreign country, a U.S. citizen is subject to that country’s laws and regulations, which sometimes differ significantly from those in the U.S. and may not afford

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

weapons in the United States, such as dive knives, kitchen knives, handcuffs and expended shell casings. Carrying any of these items without permission may result in immediate arrest. All baggage is x-rayed at every port of entry, so checked baggage will also be inspected for regulated items. Generally, there are four types of dutiable goods in Singapore: alcoholic beverages, tobacco, gasoline and motor vehicles. Travelers entering Singapore at any port of entry must approach an Immigration and Checkpoints Authority (ICA) officer at the “Red Channel” for payment of duty (e.g. alcohol and tobacco) and goods and services tax (GST) if you have dutiable goods which exceed the GST relief or duty-free concession. It is an offence to proceed to the “Green Channel” for clearance if you have items that are subject to payment of duty and/or GST. The State Department Consular Information Sheet on Singapore can be found at: https://travel.state.gov/content/passports/ en/country/singapore.html.

BUSINESS TRAVEL

the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than those in the U.S. for similar offenses. Persons violating Singapore laws, even unknowingly, may be expelled, arrested or imprisoned. There are strict penalties for possession and use of drugs as well as for trafficking in illegal drugs. Visitors should be aware of Singapore’s strict laws and penalties for a variety of actions that might not be illegal or might be considered minor offenses in the U.S. Commercial disputes that may be handled as civil suits in the U.S. can escalate to criminal cases in Singapore and may result in heavy fines and prison sentences. Singapore customs authorities enforce strict regulations concerning temporary import and export of items such as weapons, illegal drugs, certain religious materials and pornographic material. Singapore customs authorities’ definition of “weapon” is very broad, and, in addition to firearms, includes many items which are not necessarily seen as

Image courtesy of the Singapore Tourism Board

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BUSINESS TRAVEL 78

Visa Requirements

area at Changi Airport (at a reasonable rate) or U.S. citizens do not need a visa if their visit to at any hotel (at a less favorable rate). Singapore Singapore is for business or social purposes and features dozens of Government-authorized their stay is for 90 days or less. Travelers to the “money changers” located in major shopping region should note that Singapore and some centers, offering competitive rates and they neighboring countries do not allow Americans to will usually accept U.S. travelers’ checks as enter under any circumstances with fewer than well as major currencies. International credsix months of validity remaining on their pass- it cards are widely accepted in hotels, restauport. Travelers should note that there are also rants and retail shops. ATMs that accept U.S. very strict penalties for overstaying their visas. cards are widely available. Specific information about entry requirements for Singapore may be obtained from the Embassy of the Republic of Singapore (http:// Telecommunications/Electric www.mfa.gov.sg/washington). Telecommunications and Internet faciliU.S. companies should note that Singapore ties in Singapore are state-of-the-art, providis part of the Visa Waiver Program and that el- ing high-quality communications with the igible nationals of Singapore are able to travel rest of the world. Mobile phone users can acto the United States without a visa for tourist cess third generation (3G) and 4G or Long and business travel of 90 days or less provided Term Evolution (LTE) networks and services they possess an e-passport and an approved in Singapore, with theoretical speeds of up authorization through the Electronic System to 337.5 Megabits per second (Mbps). Internet for Travel Authorization (ESTA). Third country connections are widely available in hotels. nationals living and working in Singapore may There are three main mobile telephony have to obtain a visa before visiting the United providers (and 17 mobile virtual network opStates. U.S. companies that require travel of erators or MVNOs) and 81 Internet Services foreign businesspersons to the United States Providers in Singapore. The mobile peneshould be advised that security evaluations tration rate is close to 148.4% in December are handled via an interagency process. Visa 2015. Household broadband penetration is applicants should go to the following links: at 102.8% as of December 2015. Singapore’s island-wide free Wi-Fi service ◊ State Department Visa Website: https:// offers additional connectivity options. Dubbed travel.state.gov/content/visas/en.html Wireless@SG, it offers access speeds of up to 2Mbp at over 10,000 Wi-Fi hot spots in public ◊ U.S. Embassy, Singapore: http:// places such as shopping malls, town centers singapore.usembassy.gov/visas.html and the business district. From June 2014, visi◊ ESTA: https://esta.cbp.dhs.gov tors with foreign SIM cards can also register for a free account at any Wireless@SG hotspot and receive their login details through SMS mesCurrency sages sent to their foreign mobile numbers. Singapore’s unit of currency is the Alternatively, visitors can buy a local prepaid Singapore dollar. Travelers’ checks and cur- SIM card from M1, Singtel and StarHub to log on rency may be exchanged in the baggage claim to Wireless@SG via a SIM-based login feature.

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

Transportation Situated at the crossroads of international shipping and air routes, Singapore is a center for transportation and communication in Southeast Asia. With more than 100 airlines serving some 320 cities, Singapore’s Changi Airport has established itself as a major aviation hub in the Asia Pacific region. Singapore is also a leading international maritime center, home to more than 130 international shipping groups. In 2015, Singapore was the second busiest container port in the world, handling 30.9 million Twenty-Foot Equivalent Units (TEUs). The country is linked by road and rail to Malaysia. Taxis are abundant, metered, safe,

inexpensive, air-conditioned, and most drivers speak English. Drivers should be given place names for the destination as these are often more familiar than street names. In order to promote the flow of traffic, the Government limits the total number of cars on the road through heavy fees/taxes and imposes a surcharge on vehicles entering the Central Business District during peak hours. In addition, an exceptionally clean, efficient subway system links the major business/shopping areas.

BUSINESS TRAVEL

All homes and offices now have access to the new, ultra high-speed, all-fibre Nationwide Broadband Network (NBN). Offering pervasive, competitively priced broadband speeds, the NBN enables users to enjoy a richer broadband experience with higher access speeds at prices comparable to ADSL and cable services. All residential households and enterprises also benefit from the ease of access to ultra high-speed broadband of up to 10Gbps, and are able to use infocomm more extensively to boost productivity and competitiveness. Besides a nationwide broadband network infrastructure, Singapore is well connected by multiple satellite and submarine cable systems with more than 381 terabits per second (Tbps) of potential capacity supporting international and regional telecoms connectivity. It has more than 5.87 terabits per second (Tbps) of international internet bandwidth connectivity to economies such as the U.S., China, Japan, India, as well as some countries in Europe and ASEAN.

Language English is widely spoken in Singapore. It is the language of business, government, education and the media. Many business people are highly educated and have traveled extensively.

Health Good medical care is widely available in Singapore and high-end medical tourism is a growing business. Doctors and hospitals expect immediate payment for health services by credit card or cash and generally do not accept U.S. health insurance. Recipients of health care should be aware that the Ministry of Health auditors in certain circumstances may be granted access to patient medical records without the consent of the patient, and in certain circumstances, physicians may be required to provide information relating to the diagnosis or treatment without the patient’s consent. MEDICAL INSURANCE | The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

BUSINESS TRAVEL

OTHE R HE ALTH INFORMATION | Information on vaccinations and other health precautions may be obtained from the Centers for Disease Control and Prevention’s automated information line for international travelers at 877-FYI-TRIP (877-394-8747) or via http://wwwnc. cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization’s website at http://www. who.int/en. The World Health Organization also provides additional health information at http://www.who.int/ith. The Singapore Ministry of Health’s web site, http://www.moh.gov.sg, contains helpful health information.

Local Time, Business Hours and Holidays Singapore is twelve hours ahead of Eastern Daylight Savings or thirteen hours ahead of Eastern Standard Time. Normal business hours are 8:30 a.m. - 5:00 p.m., Monday-Friday. Government of Singapore agencies and many private sector companies are closed for business on Saturday. Shops are normally open every day from 10:00 am – 9:00 p.m. The American Embassy closes on American and local holidays. The dates on which holidays are observed in 2016 and 2017 are listed below:

2016 Official Date

U.S. Holiday

Singapore Holiday

Date Observed

January 1

New Year’s Day

Friday, January 1

3rd Mon in January

Birthday of Martin Luther King, Jr.

Monday, January 18

3rd Mon in February

President’s Day

Monday, February 15

February 8&9

Chinese New Year

March 25

Good Friday

Friday, March 25

May 1

Labor Day

Sunday, May 1 Monday, May 2

May 21

Vesak Day

Saturday, May 21

Last Monday in May

Memorial Day

Monday, May 30

July 4

Independence Day

Monday, July 4

July 6*

Hari Raya Puasa

Wednesday, July 6

August 9

National Day

Tuesday, August 9

1st Mon in September

Labor Day

September 12* 2nd Mon in October

Monday, September 1 Hari Raya Haji

Monday, September 12

Deepavali

Sunday, October 30

Columbus Day

October 30*

Monday, February 8 Tuesday, February 9

Monday, October 10

November 11

Veteran’s Day

Friday, November 11

4th Thu in November

Thanksgiving

Thursday, November 24

December 25

Christmas

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

Sunday, December 25 Monday, December 26

Official Date

U.S. Holiday

Singapore Holiday

Date Observed

January 1

New Year’s Day

Sunday, January 1 Monday, January 2

3rd Mon in January

Birthday of Martin Luther King, Jr. Chinese New Year

January 28 & 29 3rd Mon in February

Monday, January 16

President’s Day

Saturday, January 28 Sunday, January 29 Monday, January 30 Monday, February 20

April 14

Good Friday

Friday, April 14

May 1

Labor Day

Monday, May 1

May 10

Vesak Day

Wednesday, May 10

Last Monday in May

Memorial Day

June 25 July 4

Monday, May 29 Hari Raya Puasa

Independence Day

Sunday, June 25 Monday, June 26 Tuesday, July 4

August 9

National Day

Wednesday, August 9

September 1

Hari Raya Haji

Friday, September 1

1st Mon in September

Labor Day

Monday, September 4

2nd Mon in October

Columbus Day

Monday, October 9

October 18

BUSINESS TRAVEL

2017

Deepavali

Wednesday, October 18

November 10

Veteran’s Day

Friday, November 10

4th Thu in November

Thanksgiving

Thursday, November 23

December 25

Christmas

Monday, December 25

Note: * Official Singapore 2017 public holiday dates will be released by the Ministry of Manpower (MOM) later in 2016.

Temporary Entry of Materials or Personal Belongings Goods may be temporarily imported under the Temporary Import Scheme for a period of six months and for purposes such as repairs, testing and stage performances, auctions, displays, exhibitions or other similar events without the payment of duty and/or GST. A banker’s guarantee is required under the Temporary Import Scheme. The

temporary imports are covered by a Customs Inward Permit or a Carnet. Goods temporarily imported must be re-exported within the prescribed period using a Customs Outward permit. GST has to be paid if the goods are not subsequently re-exported. The procedures governing such importation can be found at http://www.customs. gov.sg/businesses/importing-goods/ temporary-import-scheme.

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BUSINESS TRAVEL Image courtesy of the Singapore Tourism Board

ADMISSION TEMPORAIRE/TEMPORARY ADM ISSION (ATA) CARNET | A foreign ex-

hibitor may import exhibition goods into Singapore using an ATA carnet. When the exhibitor arrives in Singapore, the carnet must be produced together with the goods to Customs at the entry point for verification and endorsement. When goods covered by a carnet are taken out of Singapore, the foreign exhibitor must produce the carnet

together with the goods to Customs at the exit point for verification and endorsement. GST will be recovered from the carnet holder on any item that is unaccounted for. For more information on Temporary Importation for Exhibition, Auction & Fairs or Temporary Import Scheme, please contact the following or visit http://www.customs.gov.sg/ businesses/importing-goods/temporaryimport-scheme. ♦

Travel Related Web Resources http://travel.state.gov https://travel.state.gov/content/passports/en/go/checklist.html http://travel.state.gov/content/passports/english/country/singapore.html http://www.mfa.gov.sg/washington http://travel.state.gov/content/visas/en.html http://singapore.usembassy.gov/visas.html https://esta.cbp.dhs.gov http://www.changiairportgroup.com/cag/html/the-group/air_traffic_statistics.html https://www.mfa.gov.sg/content/mfa/overseasmission/washington/visitor_information/Visa_and_Entry_Requirements.html http://travel.state.gov/content/passports/english/go/health/insurance-providers.html http://wwwnc.cdc.gov/travel http://www.who.int/en http://www.who.int/ith http://www.moh.gov.sg http://www.customs.gov.sg/businesses/importing-goods/temporary-import-scheme

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

LEADING SECTORS FOR U.S. EXPORTS & INVESTMENTS Aircraft and Parts

OVERVIEW | Singapore is consistently a

top market for U.S. aerospace parts exports, and parts exports averaged over U.S.$5.7 billion between 2005 and 2014. Parts represented 81% of Singapore’s aerospace imports from the United States during that period and 65% of Singapore’s parts imports were from the United States. Singapore is particularly well-equipped to capture the demand for aviation-related services from this market. Singapore has become the leading aviation hub in Asia-Pacific today, contributing over a quarter shares of the region’s Maintenance, Repair and Overhaul (MRO) output. Leading players such as ST Aerospace and Goodrich carry out comprehensive nose-to-tail MRO services from airframe maintenance to engine overhaul to aircraft modifications and conversion.

SUB-SECTOR BEST PROSPECTS | The ever growing low-cost travel and an expanding web of open-skies agreements are expected to fuel long-term growth for Asian airlines in the years ahead. As an aerospace hub in the Asia-Pacific, Singapore will reap the benefits of this upturn. In addition to supplying to all aspects of the MRO business, Singapore will see new growth opportunities in the areas of business aviation, regional training and asset management. OPPORTUNITIES | Singapore is consis tently developing its aerospace industry, particularly in its MRO sector. This will undoubtedly provide greater opportunities in Singapore for MRO activities to grow and so are the supply of aircraft parts and systems.

Image courtesy of the Singapore Airshow 2016 http://www.singaporeairshow.com/

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LEADING SECTORS FOR U.S. EXPORTS & INVESTMENTS

Web Resources Trade Show Singapore Air Show 2018 February 6-11, 2018 https://www.singaporeairshow.com/

Singapore Government Offices

Singapore Economic Development Board: https://www.edb.gov.sg Civil Aviation Authority of Singapore: http://www.caas.gov.sg Defense Science & Technology Agency: http://www.dsta.gov.sg

U.S. Commercial Service, Singapore Contact Mr. NG Haw Cheng, Commercial Specialist Email: Hawcheng.Ng@trade.gov

2014

2015

2016 (estimated)

2017 (estimated)

Total Market Size

11,224

13,582

14,668

15,988

Local Production

8,421

9,263

10,004

10,904

Exports

9,054

13,072

14,118

15,388

Imports

11,857

17,391

18,782

20,472

Imports from the U.S.

7,131

8,744

9,443

10,293

Exchange rate: 1US$

1.27

1.35

1.36

1.37

$US millions (total market size = (local production + imports) - exports) Data Sources: Singapore Government Trade Statistics

Environmental Control Equipment

OVERVIEW | Due to the climate change and pollution factors, the Government of Singapore and many companies here strive to find and adopt environmentally-friendly services and solutions. In particular, Singapore is committed to developing its clean energy sector, and in particular its solar energy capabilities, given the country’s location in the tropical sunbelt and strong semiconductor manufacturing and innovation base. Other important growth areas for the city-state are smart grids, green buildings and energy efficiency. Faced with the challenge of water scarcity, Singapore has been motivated to constantly

innovate and develop new water management and treatment technologies such as water reclamation and seawater desalination. Over the last four decades, Singapore has established a sustainable water supply from diversified sources known as the Four National Taps - water from local catchment areas, imported water, reclaimed water (NEWater) and desalinated water. Alongside these developments, an innovative environment and water industry has flourished. Beyond water, Singapore is also nurturing the environmental industry which includes environmental consultancy, waste management and pollution control. Companies like Suez, Veolia, Kurita and Golder Associates have established their presence in Singapore.

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

OPPORTUNITIES | Water technologies offer great opportunities in Singapore. The national water agency, the Public Utilities Board (PUB), has been expanding the water infrastructure over the years and is still forging ahead with further developments. The PUB constantly invites private developers to bid on water projects via public tenders. Successful contractors are usually required to design, build and operate the water plants. U.S. companies are encouraged to participate in future tenders offered by the PUB. American manufacturers could also supply their equipment to the successful prime contractors of PUB projects. Areas of particular interest include filtering and purifying machinery and apparatus, technologies involving wastewater recycling and treatment, and desalination technologies.

LEADING SECTORS FOR U.S. EXPORTS & INVESTMENTS

SUB-SECTOR BEST PROSPECTS | Singapore has been at the forefront of environmental innovation and was an early adopter of innovative solutions such as NEWater (wastewater reclamation) and the Deep Tunnel Sewerage System. Leading global players such as Black & Veatch and CH2M Hill are taking advantage of reference projects garnered in Singapore to address projects around the world. Singapore’s Green Plan incorporates programs for reduction of waste volumes through waste minimization and recycling; stricter emission standards, and tougher vehicular emission controls. The Singapore Government has announced it will upgrade and build environmental infrastructure projects over the next ten years. Related products from the U.S. will have excellent market prospects, given that imports of environmental products from the U.S. account for over 18% of the total imports.

Image courtesy of the Singapore Tourism Board

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

LEADING SECTORS FOR U.S. EXPORTS & INVESTMENTS

Web Resources Trade Show

Singapore International Water Week: http://www.siww.com.sg WasteMET Asia: http://www.wastemetasia.sg World Cities Summit: http://www.worldcitiessummit.com.sg BEX Asia: http://www.bex-asia.com/

Singapore Government Offices

Ministry of the Environment & Water Resources: http://www.mewr.gov.sg National Environment Agency: http://www.nea.gov.sg Public Utilities Board: http://www.pub.gov.sg Energy Market Authority: http://www.ema.gov.sg

U.S. Commercial Service, Singapore Contact Mr. NG Haw Cheng, Commercial Specialist Email: Hawcheng.Ng@trade.gov

2014

2015

2016 (estimated)

2017 (estimated)

Total Market Size

18,321

18,733

20,232

22,143

Local Production

18,977

19,357

20,906

22,878

Exports

10,798

9,847

10,635

11,593

Imports

10,142

9,223

9,961

10,858

Imports from the U.S.

2,643

1,742

1,882

2,052

Exchange rate: 1US$

1.27

1.35

1.36

1.37

$US millions (total market size = (local production + imports) - exports) Data Sources: Singapore Government Trade Statistics

Laboratory & Scientific Equipment

Research OVERVIEW | Singapore’s Innovation Enterprise (RIE) 2020 Plan aims to support and translate research into solutions that address national challenges, build up innovation and technology adoption in companies and drive economic growth. The RIE 2016 Plan is valued at US$13.9 billion, the biggest budget to date, and represents an 18% increase from 2015’s budget. The four primary technology domains are Advanced Manufacturing and Engineering, Health and Biomedical Sciences, Services and Digital Economy and Urban Solutions and Sustainability. These seek to deepen Singapore’s technological capabilities and competitiveness in manufacturing and engineering, advance human health

and wellness, leverage the country’s digital capabilities, and more. Under RIE2020, there will be an additional US$1.8 billion for “white space” which refers to emerging research, innovation and enterprise activities. Developing deep R&D capabilities continues to remain a key priority. Under this plan, Singapore will sustain R&D spending at about 1% of GDP. Seven years ago, the government injected approximately US$29 million into developing medical technology and devices that could be brought to market faster. In 2000, when Singapore began its push into the biomedical sciences, the medical technology industry was worth US$1.2 billion. Since then, Singapore’s biomedical sciences sector has grown into a sizeable stable of almost 300 companies and businesses. This

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

SUB-SECTOR BEST PROSPECTS | Demand for laboratory and scientific equipment comes from industry clusters such as the biomedical sciences, clean technologies (which encompasses environmental and water technologies), microelectronics, petrochemicals,

specialty chemicals, marine and offshore engineering, interactive and digital media, data storage, and institutional R&D laboratories. Several of these key sectors also attracted substantial new investment. The National Research Council, a Singapore government initiative, provides a national framework for strategic research and development efforts. The broad areas of focus are energy, environmental and water technologies, interactive and digital media as well as the biomedical sciences, translational and clinical research. Established in 2011, the Energy Innovation Challenge Directorate (EICD) aims to catalyze significant changes in Singapore’s energy landscape. Their goal is to harness Singapore’s vibrant R&D base to develop innovative solutions to meet the objectives of competitiveness, energy security and environmental sustainability. In the area of biomedical sciences, more than 7000 researchers carry out research and development for more than 50 companies, universities and private and public sector research institutes. More than US$1.23 billion is spent on biomedical R&D annually. The global medical technology industry is projected to exceed US$300 billion by 2017 with a significant contribution to this expansion coming from the Asia-Pacific market.

LEADING SECTORS FOR U.S. EXPORTS & INVESTMENTS

includes over 30 global medical technology companies that have set up commercial-scale manufacturing plants in Singapore. The United States continues to dominate in the area of laboratory and scientific equipment and accounts for approximately 30% of total imports. Total imports from the U.S. decreased by a marginal 5.5% in 2015. Overall, total imports in 2015 also fell, by 3.5%. As Singapore is a trans-shipment hub, more than 60% of imports are re-exported. Purchasing cycles for such equipment is between 5-10 years and as the industry replaces equipment, demand is expected to remain constant. The U.S. is considered a leader in the field of scientific and laboratory instrumentation and there is a strong preference for American manufactured products. With Singapore’s strong and keen focus across a broad spectrum of industry, such as precision engineering, chemicals, and biomedical sciences, exports of American laboratory and scientific equipment is expected to remain strong.

Image courtesy of the Singapore Tourism Board

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

LEADING SECTORS FOR U.S. EXPORTS & INVESTMENTS

ahead, OPPORTUNITIES | Looking Singapore has committed US$13.9 billion in continued support of research, innovation and enterprise activities through this year. A significant amount is dedicated to existing biomedical R&D infrastructure, integrating multi-disciplinary research and translating basic science into tangible outcomes. Considerable resources are being poured into six key research areas, specifically molecular, cellular and developmental biology, cancer genetics, stem cells and regenerative medicines, immunology and infectious disease, metabolic medicine, and biomedical engineering. Many global companies and Asian enterprises have significant operations in Singapore, including eight of the world’s top ten pharmaceutical companies, all of the top ten medical technology companies,

as well as several global skincare and personal care companies. U.S. firms include GE Healthcare, Johnson & Johnson, Amgen, Merck, Baxter, BD and Procter & Gamble. Recognizing that Asia is home to half of the world’s population, Singapore is betting on clean technologies as a strategic economic growth area. To achieve this, Singapore has allocated approximately US$580 million to develop five key areas for clean technologies. These are research and development, manpower development, grooming Singaporebased enterprises, branding Singapore’s clean technology industry internationally, and developing a vibrant cleantech eco-system. There are more than 70 water companies present in Singapore and these include U.S. firms such as GE Water and Black & Veach.

Web Resources Trade Shows

BioPharma Asia Convention 2017 (March 21 – 23, 2017): http://www.terrapinn.com/exhibition/bio-asia/index.stm MEDLAB Asia Pacific 2017 (March 29-31, 2017): http://www.medlabasia.com/ WasteMet Asia Symposium 2017 (October, 2017): http://www.wastemetasia.sg OSEA/ OGMtech 2018 (December 4-7, 2018): http://osea-asia.com

Singapore Government Offices

A*STAR (Agency for Science, Technology & Research): http://www.a-star.edu.sg Singapore Economic Development Board (SEDB): http://www.edb.gov.sg

U.S. Commercial Service, Singapore Contact Ms. Luanne Theseira, Commercial Specialist Email: Luanne.Theseira@trade.gov

2014

2015

2016 (estimated)

Total Market Size

9457

7658

8988

9168

Local Production

16775

15792

14859

15156

Exports

26272

26441

26125

26648

Imports

18955

18308

20255

20660

Imports from the U.S.

5674

5379

5410

5518

Exchange rate: 1US$

1.27

1.35

1.36

1.37

$US millions (total market size = (local production + imports) - exports) Data Sources: Singapore Government Trade Statistics

2017 (estimated)

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

OVERVIEW | As the regional powerhouse

for advanced manufacturing technologies (close to 90,000 are employed in this sector who contribute slightly more than 10% of Singapore’s total manufacturing output) such as industrial automation, Singapore provides an excellent opportunity for U.S. manufacturing companies to enter the ASEAN region. Manufacturing represents a significant component of Singapore’s GDP—20% according to Singapore’s Economic Development Board (EDB). Precision sensors / instrumentation, micro-electrical machining systems (MEMS) and 3D printing which all make use of industrial automation technologies will be critical components of Singapore’s long-term economic growth. In 2014, the U.S. held 19.1% of Singapore’s market share for automation equipment making it the largest partner that year. This was even larger than China or Japan.

Electrical Relays and Industrial Controls In 2015, Singapore was the 7th largest market for this sub-sector which totaled US$114 million but it has been on the decrease thought it is expected to increase again with key infrastructure projects in the transportation sector commencing. Industrial Robots In 2015, Singapore was the 8th largest recipient of U.S.-made products such as replacement parts and end-of-arm tooling, which totaled US$13 million in exports. It is expected that there will be strong completion from Japan and Europe.

Material Handling In 2015, Singapore was the 15th largest recipient of U.S.-made material handling equipment including conveyors and elevating apparatuses, which totaled US$16 million in exports. Due to economic slowdown in various Asian countries, there will not be much growth in SUB-SECTOR BEST PROSPECTS | this sub-sector over the next 1-2 years. Singapore ranks highly in the exports of U.S. industrial automation technologies and prod- Sensors and Instruments ucts. It is expected that exports to Singapore In 2015, Singapore was the 5th largest recipwill only grow moderately over the next 1-2 ient of U.S.-made in sensors and instruments years due to the country’s economic slow- including process control equipment for level down. However, from 2009 – 2015, U.S. ex- metering, which totaled US$90 million in exports in this sector grew at an average annu- ports. It is expected that this sub-sector will al rate of 11% and as such, the best prospects continue to do well over the next 1-2 years. are for the following: OPPORTUNITIES | Manufacturing is a key engine of the Singapore economy where preElectric Motors and Actuators In 2015, Singapore was the 9th largest recip- cision engineering is the crucial enabler for ient for this sub-sector which totaled US$118 industries as diverse as aerospace, electronmillion but it has been on the decrease due ics, chemicals, logistics, pharmaceutical, teleto the current slump in the oil & gas sector. communications and offshore engineering. This sector uses a great deal of electric and According to the Singapore Government, it pneumatic actuators and it will be another 1-2 is the essential ingredient in the fabrication years before there is a pick-up again. of the smallest semiconductor chips, to the

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

LEADING SECTORS FOR U.S. EXPORTS & INVESTMENTS

Industrial Automation

LEADING SECTORS FOR U.S. EXPORTS & INVESTMENTS

most cutting-edge of medical devices, and the largest oil and gas drill bits. Singaporeâ&#x20AC;&#x2122;s precision engineering activities began some 50 years ago and there are now around 2,500 companies, ranging from small and medium enterprises (SMEs) to large multinational corporations (MNCs) who provide contract manufacturing services and system integration of automation and robotic solutions. In view of manpower shortages and to increase productivity, these companies are being encouraged to adopt and make use of industrial automation as well as advance

manufacturing technologies. Automation is also seen to be spreading to other industries such as retail, services and healthcare especially with the convergence of key technologies such as wireless sensors, cloud computing, big data and analytics as well as an aging population. As such, the Singapore Government has various incentives for companies to upgrade the skills of their workers so as to meet technology advancements in the fields of precision motion, electromechanical modules and robotics. â&#x2122;Ś

Web Resources Trade Shows

Asian Robotics Expo: http://robots-expo.com/ Manufacturing Solutions Expo 2016: http://www.ms-expo.com/ Inside 3D Printing: http://inside3dprinting.com/ MTA 2017: http://mta-asia.com/

Singapore Government Offices

Singapore Economic Development Board (SEDB): http://www.edb.gov.sg Singapore Institute of Manufacturing Technology: http://www.a-star.edu.sg/simtech/

Industry Organizations

Singapore Industrial Automation Association: http://www.siaa.org

U.S. Commercial Service, Singapore Contact Mr. CHAN Y K, Commercial Specialist Email: yiukei.chan@trade.gov

2014

2015

2016 (estimated)

2017 (estimated)

Total Market Size

2,075

1,977

1600

2000

Local Production

3,412

2,977

2500

3000

Exports

5,999

5,439

5200

5500

Imports

4,662

4,439

4300

4500

Import from U.S.

958

795

800

900

Exchange Rate: 1US$

1.27

1.35

1.36

1.37

$US millions (total market size = (local production + imports) - exports) Data Sources: Singapore Government Trade Statistics

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

TELECOMMUNICATIONS

OVERVIEW | Singapore has one of

the most developed telecommunication infrastructures in the world, with an ultrahigh speed, all-fiber Next Generation Nationwide Broadband Network. In February 2016, mobile penetration rate in Singapore was 148.8%. Singapore wireless population broadband penetration rate was 191.7% while household residential wired broadband penetration rate was 102.7%. Telecom statistics can be found at: https:// www.imda.gov.sg/industry-development/ facts-and-figures/telecommunications/ statistics-on-telecom-services/statisticon-telecom-service-for-2016--jan. Telecommunications and Internet facilities in Singapore are state-of-the-art, providing high-quality communications with the rest of the world. 3G services were rolled out in 2005, 4G in 2011 and mobile operators introduced 4G+ or LTE-A in 2014. There are three main mobile telephony providers (and 17 mobile virtual network operators or MVNOs) and 81 Internet Services Providers in Singapore. Singapore operates a Mutual Recognition Arrangement (MRA) on telecom equipment certification with the U.S. A list of the recognized U.S. testing and certification agencies can be found at: https://www. imda.gov.sg/regulations-licensing-andconsultations/international-roles/testinglaboratories-and-certification-bodiesrecognised-by-imda.

Besides a nationwide broadband network infrastructure, Singapore is well connected by multiple satellite and submarine cable systems with more than 381 terabits per second (Tbps) of potential capacity supporting international and regional telecoms connectivity. It has more than 5.87 terabits per second (Tbps) of international internet bandwidth connectivity to economies such as the U.S., China, Japan, India, as well as some countries in Europe and ASEAN. SUB-SECTOR

BEST

PROSPECTS |

Singapore is a major entrepot and serves as a major distribution center for companies interested in selling to the region. In 2015, more than 97% of telecommunications products imported into Singapore were re-exported for third country consumption. Best prospects are solutions for broadband, wireless broadband, 4G, Smart Nation Platform and Heterogeneous Network. OPPORTUNITIES | Singapore is receptive

to investing in next generation technologies such as LTE and HSPA+. The Singapore government announced that it will auction the license for a fourth mobile network operator in the third quarter of 2016. There is excellent opportunity for U.S. vendors to supply to the new operator as it is expected to roll out its services as early as April 2017. Singapore has also begun to implement

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

TELECOMMUNICATIONS

some of the ideas articulated in its Infocomm and Media 2025 Master Plan, e.g., it is developing a Smart Nation Platform and Heterogeneous Network that will form the infrastructural foundation for Smart Nation, delivering connectivity to “Everyone, Everything, Everywhere, All the Time.” More information on the Master Plan can be found at https://www.imda.gov.sg/.

The Singapore government seeks to part ner ICT companies to develop innovative services and solutions to achieve their vision of a smart and connected nation. U.S. companies interested in participating in Singapore’s ICT projects should review the following websites: https://www.tech.gov.sg/ en/Programmes-Partnerships

Web Resources Trade Show

CommunicAsia2017/BroadcastAsia 2017 (May 23-25, 2017): http://www.communicasia.com CommunicAsia2018/BroadcastAsia 2018 (June 26-28, 2018): http://www.broadcast-asia.com

Key websites

https://www.tech.gov.sg/ https://www.imda.gov.sg/ http://www.sitf.org.sg/ http://www.atis.org.sg http://export.gov/mrktresearch/index.asp

U.S. Commercial Service, Singapore Contact Ms. CHIA Swee Hoon, Senior Commercial Specialist Email: SweeHoon.Chia@trade.gov

2014

2015

2016 (estimated)

2017 (estimated)

Total Market Size

1950

273

-700

100

Local Production

1946

2339

2500

2600

Exports

10076

11871

12200

12300

Imports

10079

9805

9000

9800

Imports from the U.S.

832

681

650

700

Exchange rate: 1US$

1.27

1.35

1.36

1.37

$US millions (total market size = (local production + imports) - exports) Data Sources: Singapore Government Trade Statistics

Computer Hardware, Software and Peripherals

OVERVIEW | The 2015 edition of The

World Economic Forum Global Information Technology Report ranked Singapore as the most networked ready country in the world to leverage ICT for increased competitiveness and well-being. It has developed a 10-year

Infocomm and Media 2025 Master Plan that charts the directions Singapore will take to stay at the forefront of innovation and achieve its vision of becoming a Smart Nation. Computer usage amongst all enterprises in Singapore is 90% and internet usage increased to 87%, with 86% of enterprises using broadband access. Nine out of ten Singapore

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

SUB-SECTOR BEST PROSPECTS | Best

prospects include government projects, security solutions, business analytics, data centers, cloud computing, internet of things, sensors and robotics, and solutions in the following industries: healthcare (IT Health); education; trade and logistics; tourism, hospitality and retail; financial services (fintech); and manufacturing. According to the Top Markets Study by

ITA, Singapore was rated the11th market for Health IT exports. The country represents a significant market opportunity for U.S. Health IT companies. Singapore signed a contract with a consortium (including two U.S. companies) in 2010 to develop a National Electronic Health Record system, one of the first Asian countries to formally integrate Health IT into their healthcare system. In addition, Singapore has some built-in advantages for relatively high usage of Health IT, with a compact geography resulting in a highly urbanized society, high per-capita income, and widespread use of mobile phones and Internet. Opportunities exist for U.S. companies in this sector, particularly for care coordination for private insurers and physicians, and possible deployment of new mobile applications. However, firms involved in developing and integrating systems will find few leads in Singapore. More information can be found at: http://trade.gov/topmarkets/pdf/ Health_IT_Singapore.pdf

TELECOMMUNICATIONS

homes have broadband and 96% of resident households reported using an Internetenabled mobile phone to access the Internet at home. Data on info-communications usage by individuals, households and enterprises can be found at: https://www.imda.gov. sg/industry-development/facts-and-figures/ infocomm-usage-households-and-individuals. In January 2016, the Singapore Government announced the merger of the Infocomm Development Authority (IDA) and the Media Development Authority (MDA) as a converged regulator and promoter, to take effect before the end of the year. The new agency, Infocommunications Media Development Authority of Singapore (IMDA) will spearhead the implementation of the integrated industry development plan Infocomm Media 2025 and oversee policy formulation for the converged environment. A second agency that will be formed with the restructuring is the Government Technology Organization (GTO) that will lead digital transformation in the public sector. The GTO will focus on providing a citizen-centric user experience and encourage the participation of citizens in the co-creation of public digital services. It will also ensure the security and resilience of the government’s IT infrastructure and help strengthen Singapore’s cyber defenses. The GTO will work closely with the Cybersecurity Agency of Singapore (CSA) to secure government services.

OPPORTUNITIES | The Singapore govern

ment announced that S$2.82 billion (US$2.0 billion) worth of ICT tenders will be called for financial year 2016 (April 2016 – March 2017). U.S. companies interested in doing business with the Singapore government should register with GeBIZ (http://www.gebiz.gov.sg), the Singapore government’s one-stop e-procurement portal where public sector invitations for quotations and tenders are posted. Both local and foreign suppliers are able to search for government procurement opportunities, download tender documents, and submit their bids online. U.S. companies interested in partnering with the government should also review the website: https://www.tech.gov.sg/ProgrammesPartnerships/Programmes-Partnerships?cat egory=For+Businesses.

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

TELECOMMUNICATIONS

Web Resources Trade Shows

The Fintech Show Asia 2016 (November 28-30, 2016) http://10times.com/the-brandery-asia Seamless 2017 (April 19-20, 2017) http://www.terrapinn.com/exhibition/ symbol-the-fintech-show-asia/?pk_campaign=Terr-Listing&pk_kwd=Asia Enterprise IT (May 23-25, 2017), (June 26-28, 2018) http://www.enterpriseit-asia.com/ Fintech Festival (November 14-18, 2016) http://www.fintechfestival.sg/

Key websites

https://www.tech.gov.sg/, https://www.imda.gov.sg/ http://www.sitf.org.sg https://www.export.gov/Market-Intelligence

U.S. Commercial Service, Singapore Contact Ms. CHIA Swee Hoon, Senior Commercial Specialist Email: SweeHoon.Chia@trade.gov

2014

2015

2016 (estimated)

2017 (estimated) 3280

Total Market Size

3463

3443

3250

Local Production

10446

10251

8620

8700

Exports

19034

18518

16160

16320

Imports

10900

12053

11710

10790

Imports from the U.S.

1117

940

960

970

Exchange rate: 1US$

1.27

1.35

1.36

1.37

$US millions (total market size = (local production + imports) - exports) Data Sources: Singapore Government Trade Statistics

Semiconductors

OVERVIEW | Singapore-based electron-

ics manufacturers account for 11% global market share for semiconductor wafer foundry output and 25% global market share for printers. The world’s top three wafer foundry companies, top three sub-contract assembly-and-test companies, and top four fabless IC design companies all have facilities in Singapore. Electronic components for these plants are imported and integrated into products such as mobile phones, digital cameras, hand-held tablets, music players, game consoles and televisions which are then mainly exported. Singapore’s manufacturing sector has emerged as a regional economic

powerhouse, contributing at least 20% to the Gross Domestic Product (GDP). A large component of this sector – electronics semiconductors – has attracted substantial foreign investments as well as value-added output and employment, contributing more than 25% of the manufacturing output. Despite the global economic uncertainty, cost pressures and regional competition, the fall in global oil prices, coupled with local structural shifts towards higher-value production and services, Singapore continues to be a world class semiconductor hub. It is still the location of choice for multi-national corporations (MNC) to enter new markets, launch products, processes, applications, and technology.

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

are increasing opportunities for Electronics Manufacturing Services (EMS) companies to pursue in various areas such as medical devices and aerospace. Many of the world’s top EMS companies such as Flextronics, Solectron and Venture are located in Singapore, which is becoming an attractive base of high value-added production activities. Another electronic component technology that is being developed is the Organic Light Emitting Diode (OLED) which is gradually replacing LCD panels. Leading the growth will be new technology products such as 3D printers, Ultra-High Definition televisions, connected thermostats, unmanned systems (unmanned aerial vehicles, unmanned vehicles and home robots), internet protocol cameras and wearables such as health and fitness devices and smartwatches. Smart phones which are driving social media usage in Asia are also on the increase. These products are expected to double, growing more than 100% year-over-year in 2015. The wearable device revolution is a key category to watch in the coming years. It is projected that overall wearable unit sales will reach 30 million units and generate in excess of US$5 billion in annual revenue over the next few years. Health and fitness devices are expected to lead unit sales among all wearables with a projected 20 million units. The revenue is expected to surpass US$1.8 billion. OPPORTUNITIES | The precision engi-

neering industry, which supports the EMS companies, is an important sector of the Singapore economy. Through the supply of components, tooling and equipment, this industry provides integral support to the manufacturing sector. Emerging global trends such as rapid urbanization, energy conservation and ageing populations poses new problems for

the Singapore market which in turn allows for new opportunities for the electronics industry in Singapore. There are four new growth areas which have been identified, they are namely green electronics, bio-electronics, plastic electronics and security have been identified. By 2020, the contribution to electronics output from these new growth areas is expected to triple to 30% of the electronics output. The Government of Singapore still expects to greatly expand manufacturing output by 2020 and is aiming to reach a total manufacturing output of US$200 billion and total manufacturing value-added of US$50 billion. More than 20,000 jobs are expected to be created in the manufacturing and the service sectors in the coming years as a result. Hewlett Packard and Texas Instruments which have extensive electronics expertise, have invested nearly US$10 billion combined. Singapore is also a leading manufacturer of enterprise hard disk drives with companies such as Seagate and Hitachi. Over the past few years, the country accounted for half of the world’s enterprise hard disk drives.

TELECOMMUNICATIONS

SUB-SECTOR BEST PROSPECTS | There

Web Resources Trade Shows Semicon Southeast Asia (April 25-27, 2017) http://www.semiconsea.org

Singapore Government Offices Singapore Economic Development Board https://www.edb.gov.sg

Industry Organizations Singapore Semiconductor Industry Association http://www.ssia.org.sg Singapore Manufacturing Federation http://www.smfederation.org.sg/ Association of Electronic Industries in Singapore http://www.aeis.org.sg

U.S. Commercial Service, Singapore Contact Mr. CHAN Y K, Commercial Specialist Email: yiukei.chan@trade.gov

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

TELECOMMUNICATIONS

2014

2015

Total Market Size

-3756

-3926

1000

Local Production

25929

24225

23000

25000

2017 (estimated)

Exports

95711

90571

93000

95000

Imports

66025

88573

70000

71000

Import from U.S.

4241

3735

3600

3500

Exchange Rate: 1US$

1.27

1.35

1.36

1.37

$US millions (total market size = (local production + imports) - exports) Data Sources: Singapore Government Trade Statistics

Medical Devices

OVERVIEW | Singapore has achieved

world-class standards in healthcare and according to the World Health Organization (WHO), Singapore’s healthcare system ranks sixth globally and offers the fourth best healthcare infrastructure in the world. It also serves as the healthcare and medical hub of the region and offers Asia’s best healthcare system. In 2014, a Bloomberg report ranked Singapore first for most efficient healthcare system out of 51 countries while the Economist Intelligence Unit (EIU) ranked Singapore second in the world for best healthcare outcomes. Among its ASEAN peers, Singapore spends the most annually in healthcare on a per capita basis. The Joint Commission International (JCI) has accredited 22 Singapore hospitals and healthcare facilities. Each year, Singapore draws over 350,000 patients with its high-quality healthcare. According to the International Healthcare Research Centre (IHRC)’s latest study in 2014, Singapore ranked fourth out of 25 countries worldwide in the medical tourism rankings. International research organizations such as the American Association for Cancer Research, Duke University and Johns Hopkins University have established a presence in Singapore and work with scientists here to accelerate drug discovery and develop therapies

2016 (estimated)

for unmet healthcare needs. The government spends approximately 4% of GDP annually on healthcare and longrun plans are in place to raise this to 8% of GDP. The government’s projected healthcare spending is expected to rise to US$9.6 billion per year by 2020, up from US$6 billion in 2015. Singapore has strong fundamentals in healthcare excellence, providing strong infrastructure and the recently-instituted, universal health coverage. This emphasis on quality care has enabled the country to achieve high life expectancies, fourth in the world, and the lowest infant mortality in the world. Its challenge is that it has one of the fastest aging populations in Asia which will translate to a greater demand for specialized elderly care amid rising costs. In 2015, imports of medical equipment and supplies to Singapore decreased over the previous year. This can be attributed to a sharper increase in imports the previous two years, in which costs associated with the establishment of new hospitals and healthcare facilities resulted in increased spending. U.S. imports accounted for 30% of market share in 2014 and registered a decline of 5% over the previous year. Based on available trade figures for 2015 and 2016, U.S. exports of medical equipment

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

SUB-SECTOR BEST PROSPECTS | Statistics

have shown a rise in the incidence of diabetes in Singapore where approximately 8% of the population is diabetic. The Ministry of Health is looking to arrest this and will be dedicating resources to combat it. There are currently more than 400,000 diabetics, costing Singapore over US$740 million yearly. This is expected to rise to US$1.8 billion if the trend is not arrested. A holistic approach encompassing regular health screenings, lifestyle changes and exercise will be adopted. Opportunities therefore exist for U.S. suppliers of health and wellness products. In the last five years, the Ministry of Health has allocated a total of US$3.36 billion to achieve its mission of delivering affordable healthcare, ensuring good medical outcomes, reducing illness and promoting good health and ensuring that the country is resilient against communicable disease threats and civil emergencies. Four years ago, the government announced a US$5.6 billion budget that addresses infrastructure concerns in the short and long term as well as healthcare provision and subsidies for the poor. The three key areas of focus will be healthcare infrastructure, healthcare delivery and managing the associated costs and issues related to an aging population. This budget also includes larger subsidies for surgical implants, the treatment and management of chronic diseases, as well as funding programs to promote healthy lifestyle and active-aging programs. As a result, U.S. exporters of medical devices, preventive and health screening products, and disease management solutions would be able to benefit. The Singapore government also remains committed to ensuring that the national healthcare system keeps pace with global medical advancements. To keep up with advances in biomedical science and encourage the development of new clinical treatments

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

TELECOMMUNICATIONS

to Singapore declined marginally and this is expected to continue through 2017. This can be attributed primarily to the nature of the healthcare industry and the state of the global economy. There are, however, positive perceptions associated with American brands in this sector so as regional economies start to enjoy higher economic growth and improvements in healthcare standards and delivery, transshipments through Singapore are expected to rise. An increase in exports after 2017 is anticipated. At present, more than 60% of products imported into Singapore are subsequently re-exported. Medical devices are regulated under the Health Products Act and Health Products (Medical Devices) regulations. Singapore’s Health Sciences Authority (HSA) oversees the system of statutory control aimed to safeguard the quality, safety and efficacy of medical devices available in Singapore. Almost all medical devices are regulated. Class A medical devices supplied in a non-sterile state are exempted, however, Class A sterile, Class B, C and D medical devices are subject to product registration requirements. Classification rules are adopted from the guidance developed by the Global Harmonization Task Force (GHTF). ASEAN has been developing a uniform system for registering and assessing medical devices across the ten member countries. Since end 2015, the various ASEAN economies have started adoption of the ASEAN Medical Device Directive (AMDD). This requires ASEAN countries to adopt uniform classification criteria for medical devices. This augurs well for U.S. medical device manufacturers as they will be able to easily access a common medical device market with a market size of more than 600 million people. Adherence to the basic principles of the AMDD in ASEAN will likely only take place in 2017 or later.

TELECOMMUNICATIONS

for Singaporeans, the Ministry of Health, in partnership with A*STAR (Agency for Science, Technology & Research) and several other governmental bodies, will invest US$53 million in clinical and translational research. Another US$10.6 million has been set aside for the development of new clinical services. The aim is to augment Singapore’s medical capabilities in the public healthcare system and position Singapore as the premier regional medical services hub. U.S. exporters who are able to provide cutting-edge technology, laboratory and testing equipment and services for the healthcare and research communities will find Singapore a lucrative market. The elderly, categorized as those over 65 years, currently represents 10.7% of the total population, higher than all the other ASEAN countries. Within the next twenty years, Singapore will experience what is known as ‘hyper-aging.’ Over a quarter of the population will be 65 years and older by 2030. As such, more facilities for the elderly, such as nursing homes and rehabilitation centers, need to be built. The demand for services such as geriatric medicine and rehabilitation medicine are expected to rise as is demand for homecare services. U.S. firms specializing in elder-care products and services will find a robust and growing market in Singapore. OPPORTUNITIES | According to Frost

& Sullivan, by 2015, Asia Pacific’s healthcare market is expected to reach close to 33% of the global healthcare market and estimated to be valued at US$521 billion, with trends in the medical device industry in Asia mainly centered on imaging, cardiovascular and healthcare IT. A key driver for the Southeast Asian region is the impending liberalization of the services sector this year under the ASEAN agreement. A 2012 study by Deloitte Centre

for Health Solutions indicates that Southeast Asia has the highest private health expenditure of any region in the world, at 63.1% of total health expenditures. This has led to increased private-public sector collaboration in Singapore, Malaysia and Thailand. Singapore is renowned for its role as a healthcare hub for the region, treating patients from neighboring Malaysia, Brunei, Indonesia, Thailand, Philippines and more recently, from the Americas, Europe and the Asia Pacific. Government hospitals account for 80% of all hospital beds in Singapore while the private sector accounts for 20%. Under Healthcare 2020, over 4000 new public hospital and community hospital beds will be added by 2020. Currently, there were an estimated 12,000 hospital beds, equal to a rate of 2.2 beds per thousand people. Three quarters or 9,700 will come from the public sector with the private sector accounting for the rest. Demand for medical equipment comes from public and private hospitals and clinics. The Health Ministry is the largest consumer, accounting for nearly 70% of local demand. All public and the majority of private sector hospitals are Joint Commission International (JCI) accredited. Parkway Healthcare, the largest private sector healthcare provider in Singapore, is also a significant buyer of medical equipment. More than 80% of local demand is met through imports and there is a premium placed on American-made products. U.S. manufacturers with innovative products will find Singapore a good market place. Singapore will invest in primary care infrastructure such as polyclinics and community health centers. Digital technologies that support the healthcare sector is another area of investment. In 2009, Singapore initiated the National Electronic Health Record (NEHR) project which provides its citizens with his or her

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

a new 12-story, US$135 million National Heart Center building, three times larger than the size of the existing one, is currently being built at the Singapore General Hospital and is scheduled for completion in 2020. One-third of the private sector’s patient mix is from overseas. Recognizing the growth potential of the foreign patient sector, various private sector healthcare groups have embarked on renovations and expansion programs. Among them, the Parkway and Raffles groups over the last three years have appropriated between US$61.5 million and US$345 million to build, expand and upgrade their healthcare facilities. Renovations at the Raffles Hospital are expected to be completed by the third quarter of 2017.

TELECOMMUNICATIONS

own electronic medical record. This project is valued at US$144 million. Between now and 2025, parts of the Singapore General Hospital will be expanded with major redevelopment of Singapore’s oldest and largest hospital set to take place from 2025 to 2035. Over the medium term, six new public hospitals and up to twelve more polyclinics will be built by 2030 to ensure that Singapore has adequate healthcare coverage. There are also plans to build new and replacement nursing homes to bring the total to 25 by 2020. Given that the world is facing infectious disease threats due to more global travel and increased connectivity, a new 300-bed hospital for infectious disease will be built. It is expected to be ready by 2018. In addition,

Web Resources Trade Shows

BioPharma Asia Convention 2017 (March 21 – 23, 2017): http://www.terrapinn.com/exhibition/bio-asia/index.stm MEDLAB Asia Pacific 2017 (March 29-31, 2017): http://www.medlabasia.com/ International Dental Exhibition & Meeting 2018 (IDEM) (April 13-15, 2018): http://www.idem-singapore.com/ Medical Fair Asia 2018 (September 2018 (dates to be determined): http://www.medicalfair-asia.com

Singapore Government Offices

Singapore Ministry of Health (MOH): http://www.moh.gov.sg Health Sciences Authority (HSA): http://www.hsa.gov.sg Health Promotion Board (HPB): http://www.hpb.gov.sg Agency for Integrated Care (AIC): http://www.aic.sg Singapore Economic Development Board (SEDB): https://www.edb.gov.sg

U.S. Commercial Service, Singapore Contact Ms. Luanne Theseira, Commercial Specialist Email: Luanne.Theseira@trade.gov

2014

2015

2016 (estimated)

2017 (estimated)

Total Market Size

2423

1697

1878

1960

Local Production

10455

10623

10337

10027

Exports

19727

20126

19191

18327

Imports

11695

11200

10732

10260

Imports from the U.S.

4096

3378

3249

3135

Exchange rate: 1US$

1.27

1.35

1.36

1.37

$US millions (total market size = (local production + imports) - exports) Data Sources: Singapore Government Trade Statistics

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Oil and Gas

OVERVIEW | Singapore has become one

of the most important shipping centers in Asia and is one of the world’s top five oil trading and refining hubs. In addition, Singapore is one of the market leaders for floating production, storage and offloading (FPSOs) conversions and offshore jack-up rigs. Underground caverns for oil storage and a liquid natural gas (LNG) terminal are also being expanded in phases to enhance Singapore’s position as the premier regional center for the oil & gas industry. In view of the significant decrease in oil prices, the growth and imports are expected to be much less promising over the next 12 months due to a decrease in oil & gas exploration. However, as the regional hub for Southeast Asia, its friendly business environment and the Trans-Pacific Partnership agreement, there will be opportunities for U.S. exporters in Singapore especially when the oil & gas industry improves globally.

◊

Supply of tubular products such as casings, tubing, carbon steel line pipes, drill pipes, heavy wall pipes, drill collars, drill stem accessories and mechanical alloy steel tubes used on derricks OPPORTUNITIES | Singapore is often list-

ed as the leading oil trading hub in Asia (third in the world after New York and London) and amongst the world’s top five oil refining centers. It has a refining capacity of nearly double its rate of petroleum products consumption. It is also a world leader in the construction of exploration and production platforms and FPSOs conversions as well as for jack-up rigs. Engineering, procurement and construction of the US$700 million LNG terminal was awarded in late 2009 to a Korean consortium led by Samsung. The first phase was completed in 2013 with the arrival of the first shipment of LNG from Qatar. Future expansion work (including a second LNG terminal SUB-SECTOR BEST PROSPECTS | which has been proposed) costing more than Singapore offers many opportunities for US$500 million is already being planned as American companies including: Singapore aims to be a future hub for natural gas trading and trans-shipment in Asia. ◊ Supply of equipment such as boring Once all phases are completed by 2017, the or sinking machinery for upstream and first terminal will be able to handle nine mildownstream oil and gas, shipbuilding, lion metric tons per year. marine, mechanical and electrical The construction of Very Large Floating construction, oxidation additives Structures (VLFS) for storage of oil and peand various control systems troleum products is also being explored since land is scarce. Feasibility studies are ◊ Oilfield equipment that includes underway to determine the impact of sea instrumentation such as drilling currents and met-ocean conditions accordinformation systems, drilling monitors, ing to recent press reports. To be economimud logging units, mud monitoring cal, the minimum storage capacity of a VLFS systems, torque gauges, pressure would be 300,000 cubic meters or equivagauges, weight indicators, deadline lent to that of a very large crude carrier. It anchors, valves/actuators, performance is estimated that it would cost US$150 miltesting and design control systems lion or more – the decision to move forward

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

procurement and construction) but actual construction will commence in 2017 at the earliest.

Web Resources Trade Shows

OSEA 2016 (November 29 - December 2, 2016): http://www.osea-asia.com

TELECOMMUNICATIONS

has been postponed due to the downturn in the oil and gas sector until second half of 2016 with the issue of a tender (engineering,

Singapore Government Offices

Singapore Economic Development Board (SEDB): https://www.edb.gov.sg International Enterprise Singapore (IE Singapore): http://www.iesingapore.gov.sg/ Spring Singapore: http://www.spring.gov.sg

U.S. Commercial Service, Singapore Contact Mr. CHAN Y K, Commercial Specialist Email: yiukei.chan@trade.gov

2014

2015

2016 (estimated)

2017 (estimated)

Total Market Size

122,319

66,959

40,000

58,000

Local Production

85,280

50,061

36,000

43,000

Exports

93,378

60,836

43,000

50,000

Imports

130,417

77,734

47,000

65,000

Import from U.S.

4,773

5,659

1,800

2,500

Exchange Rate: 1US$

1.27

1.35

1.36

1.37

$US millions (total market size = (local production + imports) - exports) Data Sources: Singapore Government Trade Statistics

Education

OVERVIEW | Singapore is home to the

top two universities in Asia: The National University of Singapore is the top university in Asia while Nanyang Technological University is second according to Quacquarelli Symonds’ (QS) 2015 annual ranking of Asian universities. The OECD’s Program for International Student Assessment ranks Singapore’s public schools as among the best globally. Singapore emphasizes, supports and values higher education as well as human resource development and skills upgrading. Many government agencies and private sector companies also offer full scholarships for top students to pursue

their undergraduate and graduate studies in foreign universities such as Australia Britain and the United States. An increasing number of adult workers are also encouraged to upgrade themselves to be more knowledgeable in a globalized economy. SUB-SECTOR BEST PROSPECTS | There

are currently close to 5,000 Singaporeans (excluding exchange students) pursuing tertiary education in the U.S.; two-thirds are undergraduates and a third are graduate students. Despite the strong U.S. dollar, the number of student visas issued to Singaporeans and third-country students has risen over the past

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year and is expected to continue increasing over the next few years. U.S. universities and colleges will find a receptive market in Singapore, provided they are willing to invest in long-term branding and marketing with accredited programs in disciplines that offer strong career growth and high income potential. Apart from the traditional disciplines, the following degree courses are becoming increasingly important and are expected to see increased demand from Singaporean and third-country students studying in Singapore: ◊

Life Sciences and Healthcare

◊

Supply Chain Logistics

◊

Hospitality and Tourism

◊

Media and Animation

◊

Sports Science and Medicine

◊

Wealth Management and Financial Planning OPPORTUNITIES | The Singapore govern-

ment is developing the country into the “global schoolhouse” for Asia. The education system is well known for its quality, resulting in a strong demand from students in the region to study here. American universities, in addition to recruiting full-time students (both local and overseas) to study in the United States, may want to consider offering their external degree and executive education programs in Singapore to Singaporeans as well as international executives working in the region. However, simply having proper recognition and/or accreditation in the foreign institution’s own country is only a starting point for approval for a foreign institution seeking to offer programs or courses in Singapore.

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In addition to meeting Singapore’s standards, “national ranking” appears to be a key criterion for approval. The Council for Private Education was set up to regulate this new Private Education Bill which was passed in November 2009 and as of 2014, they have completed the evaluation of all existing private education institutions (PEIs) and foreign degree programs that are offered in Singapore. According to industry sources, the number of PEIs has been reduced to a third of what it used to be. U.S. universities and colleges should also consider the large number of foreign students studying at the high school and polytechnic levels in Singapore especially since more than 50,000 foreign students (mainly from Malaysia, Indonesia, Thailand, Vietnam, China, India and South Korea) study in Singapore. These foreign students would have passed the necessary background checks and also have a reasonably good command of English after studying in Singapore.

Web Resources U.S. University Fairs Education USA Study Fairs https://educationusa.state.gov/centers/ educationusa-singapore-advising-center Linden U.S. University Fairs http://www.lindentours.com AEO Student Recruitment Fairs http://www.aeotour.com

Singapore Government Offices Council for Private Education http://www.cpe.gov.sg Ministry of Education http://www.moe.gov.sg

U.S. Commercial Service, Singapore Contact Mr. CHAN Y K, Commercial Specialist Email: yiukei.chan@trade.gov

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

Number of visas issued to Singaporeans

2588

2814

2875

3109

3253

3038

3117

3200

3300

% increase / decrease from previous year

3.6

8.7

2.2

8.1

4.6

-6.6

2.6

2.7

3.0

4265

4678

4654

4994

5092

4784

4856

5200

5330

0.5

9.7

-0.5

7.3

2.0

-6.0

1.5

2.1

2.5

Total visas issued including foreign students % increase / decrease from previous year Figures for FY2016-17 are estimated only.

Agriculture Best Prospect Sectors

OVERVIEW | As a small country, Singapore

has little agricultural land and limited domestic food production. Agriculture contributes less than 0.5% of the country’s GDP per capita in 2015. Singapore produces mainly leafy vegetables and beansprouts, all for local consumption. With a total land mass of 1,465 hectares (3620 acres), its six Agro-technology parks comprising 200+ farms produce a diverse range of products including livestock, eggs, vegetables, fruits, orchids and aquarium fish and food. Singapore is a major exporter of some 500 ornamental fish species, and cut orchids that are exported to more than 30 countries including the United States, Japan, Greece and Canada. Due to scarce agricultural land and resources, Singapore imports nearly 90% of its food products from abroad and this, in turn, generates a vibrant and diverse retail foods market, with an assorted range of food products, from basic to high-end organic foods. U.S. products have gained traction in recent years, but competition is fierce. The United States was the fourth largest supplier at $897.49 million in 2015. China came in first, followed by Indonesia and Malaysia. The U.S. is a major exporter of fresh fruits and vegetables, dairy products, breakfast cereals, meat products, snack foods and pet food. Growth in consumer spending for consumer goods and food and beverages is expected to stay strong in 2014-18, at an average increase

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2009 2010 2011 2012 2013 2014 2015 2016 2017

of 5% in local currency terms. According to the latest Singapore government preliminary data, purchases from brick and mortar supermarkets hit $1.72 billion in 2015, nearly double the $0.90 million in 2005 – and thus amounted to a 92% increase since 2005. Despite the weaker global economic climate and increased competition from on-line grocers, experts expect strong sales at supermarkets over the next few years due to higher prices for goods; more willingness to spend on quality; more people choosing to dine at home; and a rising interest in cooking due to popularity of cooking shows on television and social media. DAIRY PRODUCTS | In general, pros-

pects are bright for U.S. dairy product sales to Singapore due to steady economic conditions, middle class expansion, dietary pattern shifts, growing food manufacturing industry, and healthier lifestyles which acknowledge dairy products’ role in health and nutrition. Albeit a decrease in sales across-the-board, the United States was still the third largest supplier of dairy products in 2015 while Australia and New Zealand are strong competitors. Some dairy products tend to perform better than others. According to Euromonitor, cheese posted current value growth of 4% in 2015, and its stable performance in the last few years is thanks to already growing popularity as widely used ingredient in Western dishes in Singapore. The large expatriate

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communities in the country are avid fans of cheese. Retail sales of cheeses are expected to remain strong; however, with the rising cost of living and economic uncertainty, consumers may switch to cheaper brands. Compared to 2014, more consumers in 2015 were switching back to full fat milk for its taste despite its higher fat content. However, according to retailers, growth is projected for fat free milk in the long term due to growing healthier lifestyle choices that are likely to shift taste to healthier milk products such as fortified / functional, organic and less fattening versions. Yoghurt product retail sales decreased in 2015 probably due to category maturity. However, there is stable demand for the product as rising health and wellness trends have generated increased interest in yoghurt. The number of frozen yoghurt shops in the country has risen substantially in recent years. Retail sales of breakfast cereal products grew by 4 % in 2015. Breakfast cereal consumption is one of the most preferred breakfast options in the country due to Singaporeans’ increasingly busy lifestyles that require quick preparation time. Yoghurt is also considered a nutritious and healthy product. As cereal is a common breakfast item for most international hotel chains and restaurants, international brands dominate the sector - including popular U.S. brands. BEEF / BEEF PRODUCTS | After successful

discussions between USDA and Singapore’s Agri-Food and Veterinary Authority (AVA) in May 2015 full market access was granted for bone-in, fillets and a variety of processed beef products. Prior to this, Singapore restricted U.S. beef to only boneless beef from cattle less than 30 months of age. This immediately triggered sales for the full range of U.S. beef and beef products. Sales of U.S. beef / beef products increased by 19% in 2015, and the United States

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remained the fourth largest supplier of beef and beef products for Singapore. The other three were Australia, Brazil and New Zealand. U.S. beef caters to high-end, Western restaurants, and restaurants at international chain hotels. U.S. beef faces stiff price competition from Australia, New Zealand and Brazil, but has excellent quality and taste appeal. U.S. beef products are especially attractive for premium food service outlets. With the recent liberalization of the beef sector, imports of U.S. beef should increase significantly in the long term. The greater availability of U.S. beef products will also enhance overall market opportunities. FRESH FRUIT | The U.S. continued to dom-

inate the fresh fruit market in 2015 due to price competitiveness, quality, and promotional support provided by U.S. suppliers, brand recognition and supply reliability. In addition, the country’s highly developed cold chain distribution system helps U.S. fruit prospects. The top U.S. fresh fruit from 2012 to last year were grapes, oranges, strawberries and applies. The U.S. faces strong competition from China, Malaysia, Australia and South Africa. Local consumers, in general, highly regard U.S. fresh fruit quality. Higher income also creates more demand for certain premium airflown fruit such as strawberries, plums and avocados. Local consumers are receptive to U.S. fresh fruit promotional programs and attractive packaging, and educational materials. U.S. exporters have excellent opportunities in the main retail channels of supermarkets, hypermarkets and convenience stores. The fresh fruit market is competitive, with extremely price sensitive retailers and consumers. FRESH VEGETABLES | Despite strong

competition from neighboring countries with their lower labor and transportation costs,

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

SNACKS | The snack sector in Singapore

is dominated by products from Malaysia and international brands manufactured in ASEAN and China. There is high competition for retail shelf space especially among chocolate producers. However, there is still room for growth for U.S. products. U.S. brand chips dominate the market; and for the nut category, U.S. almonds, walnuts, pistachios and raisins reign. U.S. products are both packed and sold under local brands and under common U.S. names, e.g. Frito Lay potato chips, Hershey chocolates, and Blue Diamond mixed nuts. The demand for sweet and savory snacks is expected to remain robust in years to come, due to Singaporeans’ rising disposable incomes, increasingly busy lifestyles, and growing tendency of Singaporeans to snack. New launches and promotional marketing activities also help to sustain demand, including new brands, product types and flavor variants. There is also a growing

demand for higher quality and more expensive snack products. The increasing popularity of social media generates demand for snacks. Consumption of edible nuts and dried fruit is increasing in Singapore both as snacks and as ingredient in the food service and bakery sectors. Food processing and confectionary companies are buying more products to be used as ingredients. U.S. raisins and almonds are market leaders; and dried fruits and nuts are perceived to have health benefits.

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prospects for U.S. fresh vegetables are still attractive due to solid demand for U.S. products. U.S. products tend to gravitate toward the premium market, where quality is more of a factor. Top selling fresh vegetables in 2015 were potatoes, celery, asparagus and lettuce. While there is price sensitivity on more expensive products such asparagus, purchases for asparagus actually increased by 22% for the 2014/2015 period. Singapore’s vibrant and dynamic food service sector has led to rapid growth in imported temperate climate vegetables. Key supermarket chains also offer imported vegetables including from the United States. Rising tourism in recent years and the large number of expatriates living in Singapore have led to the increased demand for imported vegetables. Imported vegetables should continue to grow by 10% during the next five years.

WINE | According to Euromonitor, wine

is predicted to record a 5% total volume Compound Annual Growth Rate (CAGR) over the forecast period, generating 14 million liters (3,968, 408 gallons) in sales in 2019. Wine sales have been growing steadily in the last few years due to increased demand and broadness of the market. Consumers in Singapore enjoy various types of wines. The increasing number of “specialty” wine shops also reflects growing demand. France dominates the wine market by more than 70%, followed by Australia, Italy and the United States. While it is growing, the U.S. market share in the overall market is still quite low due to Singaporeans’ lack of familiarity and awareness of U.S. wines. U.S. wines have greatest potential in the mid-tier range as French wines dominate the premium market with their broad range of products and high profile promotions; and Australian wines dominate the retail market with their broad range of products from mass market to also premium, and have strong distribution channels. Singaporeans are generally well educated when it comes to drinking wine and tend to follow global trends. Their emphasis on matching wine and food has prompted them to try wines from different countries. Also, the younger generation tends to experience wine drinking from an early age at social gatherings.

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Thus, retail sales of wine are expected to record positive and stable growth. U.S. wines have excellent quality recognition, and the growing premium dining sector and growing number of wine shops ensure potential for U.S. wine sales. Singapore also serves as an important transshipment point for sales to neighboring countries. PET FOOD | Pet food, in particular premi-

um dog and cat food, continued to grow in 2015 both in retail and volumes sales. Aside from a growing pet population, the demand for premium pet food is also due to the higher standard of living that has seen a preference towards premium imports that boast high nutritional value, natural ingredients and advanced formulation. With increasing healthy lifestyle choices,

pet owners are keen to share their healthy eating habits with their pets. International brands with regional production dominate the pet food market. Nonetheless, U.S. remained the largest supplier of both cat and dog food in 2015, and sales actually increased by 13.76% during the 2014/2015 period. More Singaporeans provide optimum care for pets purchase premium pet food and pet care products. These trends will continue to support demand for U.S. pet food in Singapore. As consumers gained better knowledge and understanding on healthcare and nutrition, manufacturers have already started to position their products with health claims such as “strengthening joints”, “improving the digestive system.” They offer products with fortified ingredients such as Omega-2 and Glucosamine. ♦

Web Resources Agri-Food & Veterinary Authority of Singapore (AVA): www.ava.gov.sg Singapore Manufacturing Federation (SMF): www.smfederation.org.sg Singapore Business Federation: www.sbf.org.sg Singapore Fruits and Vegetables Importers and Exporters Association (SFVA): http://www.singaporefva.com Singapore Chefs Association (SCA): http://singaporechefs.com Restaurant Association of Singapore (RSA): www.ras.org.sg Singapore Hotel Association (SHA): www.sha.org.sg U.S. Department of Agriculture (USDA): www.usda.gov

U.S. Department of Agriculture, Singapore Contacts Ms. Ira Sugita, Agricultural Specialist Email: Ira.Sugita@fas.usda.gov Ms. Alice Kwek, Agricultural Marketing Specialist Email: alice.kwek@fas.usda.gov

2014 Total Market Size Local Production

2015

2016 (estimated)

2017 (estimated)

10,515,190

11,040,949

11,093,815 10,014,468 (estimated) 182,598

173,469 (estimated)

182,142

191,249

Exports

8,322,486

7,524,768

7,901,006

8,296,056

Imports

10,911,217

9,840,999

10,333,048

10,849,700

965,387

864,913

908,158

953,565

1.27

1.35

1.36

1.37

Import from U.S. Exchange Rate: 1US$

$US thousands (total market size = (local production + imports) - exports) Data Sources: Global Trade Atlas

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DOING BUSINESS IN BRUNEI DARUSSALAM Market Overview Brunei Darussalam is a Southeast Asian oil-rich Sultanate on the northern coast of Borneo. A British protectorate until 1984, it boasts a well-educated and largely Englishspeaking population, excellent infrastructure, and a government intent on diversifying the economy and bringing foreign investment into the country. Despite repeated calls for diversification, Brunei’s economy remains overwhelmingly dependent on the income derived from the sale of oil and gas, which represents 92% of Brunei’s total exports (Department of Economic Planning and Development, December 2015). Additionally, substantial revenue from overseas investments supplements income from domestic hydrocarbon production. These two revenue streams provide a comfortable quality of life for Brunei’s population. Citizens pay no taxes and receive free education through to the university level, free medical care, and subsidized housing. Brunei’s central location in Southeast Asia, with good telecommunications and airline connections, no personal income, sales or export taxes, and its stable political situation offer a welcoming climate for would-be investors. Brunei encourages foreign direct investment (FDI) in its domestic economy through various investment incentives offered by the Energy and Industry Department, Prime Minister’s Office and through activities conducted by

the Ministry of Foreign Affairs and Trade, and the Brunei Economic Development Board. Additionally, a low crime rate, good schools, housing and sports facilities, as well as low utility costs make Brunei an attractive location for short and long-term residence. Life in Brunei reflects the national philosophy of the Malay Islamic Monarchy (MIB in Malay). Brunei has no debt, domestic or foreign, and has not been the recipient of economic aid. Despite importing most consumer goods and food, Brunei’s large oil exports keep its trade balance positive. The Brunei dollar is pegged to the Singapore dollar at a one-toone ratio, and the Singapore dollar is legal tender in the Sultanate. The five largest destinations for Brunei exports (mostly mineral fuels) as of December 2015 were Republic of Korea (31%), Japan (26%), Thailand (11%), Taiwan (7%), and China (6%). The five largest sources of imports to Brunei were Malaysia (23%), Singapore (17%), China (12%), the United States (12%), and Japan (6%). The largest export sectors by market value were mineral fuels, chemicals, and machinery and transport equipment. The largest import sectors by market value were machinery and transport equipment, manufactured goods, and food. In 2015, the total (two way) trade between United States and Brunei was US$153 million. The 2015 U.S. trade surplus with Brunei was US$114 million: exports totaled US$133

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DOING BUSINESS IN BRUNEI DARUSSALAM 108

million while imports totaled US$19 million. Brunei is a founding member of the TransPacific Partnership (TPP) trade agreement that concluded negotiations in October 2015 and was signed by all twelve parties in February 2016. More information on U.S.-Brunei trade figures can be found at: (https://www.census. gov/foreign-trade/balance/c5610.html)

Market Challenges With a population of approximately 416,000 in 2014, Brunei’s local market is relatively small. Foreign enterprises are allowed 100% ownership of business scope, operation, and investment. As such, foreign investors are not required to find a local partner to enter the market. However, in certain cases, foreign companies may be required to find a local partner to qualify for certain government and Brunei Shell Petroleum projects. U.S. businesses/investors should expect delays sometimes long ones - when dealing with the local government.

through activities conducted by the Ministry of Foreign and Trade and the Brunei Economic Development Board. Formed in 2001, the Brunei Economic Development Board (BEDB) promotes Brunei as an investment destination to move its economy away from oil and gas revenue. BEDB is mandated to work with foreign and domestic investors to develop new economic opportunities where Brunei has competitive advantages, focusing on four key growth areas: attracting investments, strengthening local businesses, increasing Research and Development (R&D) and innovation, and delivering infrastructure projects. BEDB has identified several industries as potential investment sectors in its efforts to diversify the economy, including life sciences, agricultural business, ICT, and services. Further information on BEDB is available at BEDB’s website: (http://www. bedb.com.bn). The most attractive commercial sectors include: ◊

Oil and Gas Extraction

Market Opportunities

◊

Commercial Aviation

Brunei has an open economy favorable to foreign trade and foreign direct investment (FDI) as it continues to diversify its economic away from its long reliance on oil and gas exports. Investment opportunities in Brunei are driven both by government planning and consumer demand. FDI is important to Brunei as it plays a key role in economic and technological development. Brunei encourages FDI in the domestic economy through various investment incentives offered by the Energy and Industry Department (Prime Minister’s Office) and

◊

Construction

◊

Defense Equipment

◊

Medical Equipment

◊

Food and Beverage Franchises

In the agricultural sector, the following investment opportunities may offer lucrative investment opportunities: ◊

Food Imports/Food Production

◊

Fishing Industry/Aquaculture

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

Market Entry Strategy Brunei’s population—largely clustered around the capital Bandar Seri Begawan, with other population centers connected by a well-maintained highway system—provides a ready destination for U.S. exports with low transit costs once goods arrive in country. The relatively small population of Brunei is an asset in that exported products, once a foothold is gained, may gain national prominence relatively quickly. Market access and promotion strategies typically focused on cities, may be applied with modification to enter the Brunei market. Firms that are able to export goods and services that will serve to increase the capacity of Bruneian enterprise and increase Bruneian employment will be particularly welcomed. U.S. businesses should build personal relationships with local representatives and customers through regular visits or by establishing resident representation. U.S. companies can set up their subsidiary companies or branch offices in Brunei as private limited companies registered with the Registrar of Companies and Business Names. Please note that throughout this report, except where otherwise noted, the following Brunei dollar/U.S. dollar exchange rates were used:

Year

Brunei dollar/U.S. dollar exchange rates

2009

1.513

2010

1.418

2011

1.308

2012

1.300

2013

1.302

2014

1.318

2015

1.430

The source of the rates above is: (http://www. irs.gov/Individuals/International-Taxpayers/ Yearly-Average-Currency-Exchange-Rates)

Political and Economic Environment

DOING BUSINESS IN BRUNEI DARUSSALAM

Brunei’s information communication technology (ICT) sector seeks to benefit from international expertise. There are also opportunities in the franchise sector, particularly in food & beverage.

U.S.-BRUNEI RELATIONS | Brunei Darussalam is a Malay Muslim Monarchy located at the heart of Southeast Asia, the focus of the U.S. rebalance to the Asia-Pacific. Although the United States and Brunei concluded their Treaty of Peace, Friendship, Commerce and Navigation in 1850, which is still in effect, the current era of U.S.-Brunei relations began in 1984 when Brunei became fully independent from the United Kingdom and the United States and Brunei established diplomatic relations. A memorandum of understanding on defense cooperation was signed in 1994. Brunei’s armed forces engage in joint exercises, training programs, and other military cooperation with the United States. Bruneian military personnel have attended U.S. military academies and in 2014 the first U.S. military student attended the Brunei Command and Staff Course. In 2014 the Brunei-United States Association (BUSA) was launched, the first official organization promoting commercial, cultural and economic ties between the two nations.

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DOING BUSINESS IN BRUNEI DARUSSALAM

The two countries work closely together on a bilateral and regional agenda to tackle some of the most pressing issues. The contemporary U.S.-Brunei relationship enters its fourth decade in a position of strength, based on the unprecedentedly intensive and productive bilateral engagement in 2013, when Brunei provided strong leadership for the Association of Southeast Asian Nations (ASEAN) as the 2013 ASEAN Chair. In connection with Brunei’s role as ASEAN Chair, Brunei hosted three U.S. Secretary of State visits and other Cabinetlevel U.S. government visits. Brunei’s hosting of the 18-nation ASEAN Defense Ministers Meeting - Plus Humanitarian Assistance/ Disaster Relief and Military Medicine exercise in June 2013 demonstrated Brunei’s ability to bring together diverse nations, including the United States and China, for practical cooperation in valuable areas such as humanitarian military cooperation. The United States and Brunei have also partnered to increase English language instruction in ASEAN countries, promote trade, and expand educational opportunities and people-to-people connections. The United States and Brunei share a commitment to protecting the environment and in 2013 Brunei became the first nation in the world to ban all trade relating to sharks.

spending still account for most of Brunei’s economic activity. Brunei’s non-petroleum industries include manufacturing, construction, agriculture, forestry, fishing, and services. U.S. firms are working in the energy sector, consulting on health care and other projects and U.S. franchises and brands are opening and thriving in Brunei. The United States was the largest non-ASEAN supplier of imports to Brunei in 2013. Aircraft that Brunei has procured from the United States in recent years include Sikorsky Black Hawk S70i helicopters and Boeing 787 Dreamliners. BRUNEI’S MEMBERSHIP IN INTERNATIONAL ORGANIZATIONS | Brunei gives its ASEAN

membership the highest priority in its foreign relations. Brunei and the United States belong to a number of the same international organizations and forums, including the United Nations, the International Monetary Fund, the World Bank, the World Trade Organization, the East Asia Summit, the ASEAN Regional Forum, and the Asia-Pacific Economic Cooperation forum.

BILATERAL REPRESENTATION | The U.S. Ambassador to Brunei is Craig Allen; other principal embassy officials are listed in the Department’s Key Officers List (http://www. U.S. ASSISTANCE TO BRUNEI | The United state.gov/documents/organization/111812.pdf). States provides no foreign assistance to Brunei. Brunei maintains an embassy (http://www. bruneiembassy.org/) in the United States at BILATERAL ECONOMIC RELATIONS | 3520 International Court, NW, Washington, DC Brunei encourages foreign investment in the 20008; tel. 202-237-1838. domestic economy through various incentives, You can learn more by following the marketing the country as an opportunity for Embassy on Facebook (U.S. Embassy Brunei investors in new industries and economic ac- Darussalam) or the Embassy webpage http:// tivities, although oil and gas and government brunei.usembassy.gov/. ♦

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DOING BUSINESS IN BURMA Market Overview Myanmar is an exciting emerging market located in a critical and rapidly changing part of the world. The National League for Democracy (NLD)’s landslide victory in November 2015 election was a major step forward for Myanmar’s political and economic future. As a recently opened market, there are opportunities in various sectors. At the same time, the market currently presents multiple and complex challenges for U.S. companies. With the opening of the Commercial Service office in Yangon in August of 2014, there is a team on the ground that can help companies navigate the opportunities and challenges outlined in this guide. The Government uses the name ‘Myanmar’ on official documents as do most citizens. Since 2011, the Government of Myanmar has adopted, among other changes, budgetary and tax reforms, and financial sector regulatory changes with limited liberalization of trade and investment in order to integrate the country into the international economy. There are five main reasons why American companies should consider exporting to Myanmar. 1: Right time, right place: With a rich natural resources base, an estimated population of 51 million, a young labor force and prime geographic location – between India, China and linked with the countries that

make up the Association of South East Asian Nations (ASEAN) – Myanmar is the subject of great interest from the international business community. The enactment of a new Foreign Investment Law in 2012, the easing of U.S. economic sanctions, and the complete lifting by the EU and Australia of their sanctions (except for a ban on the sale of military goods and services), have encouraged foreign companies to view Myanmar as a potential market. 2: Growing economy means more opportunity for US products: Myanmar’s economy has grown at approximately 8% since 2012. According to Directorate of Investment and Company Administration (DICA), the 8.7% growth during FY 2014-2015 has been mainly driven by development and investments in the telecommunication sector (57.5%*), extractive industries (50.5%*), oil and gas (36.1%*), construction (15.9%*), manufacturing (9.7%*) as well as growth in key service industries (e.g. tourism). (*=percentage increase of the absolute GDP contribution of the sector). Growth is expected to continue at the rate of 8-9% for the next two years. 3: Great interest in partnering with American Companies: Given Myanmar’s five decades of isolation there is a need for a wide array of product and services across multiple sectors. U.S. products and services are viewed favorably

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by Burmese society and businesses large and small. In fact the Commercial Service office is approached on a regular basis by local companies actively seeking U.S. suppliers.

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A legal and regulatory system that relies on practices and government discretion rather than written laws.

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An evolving economic policy.

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Investments approved on a case-by-case basis by Myanmar Investment Commission.

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Weak rule of law and property rights; the judiciary is not independent and lack of experience with commercial litigation and arbitration.

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Corruption, aided by lack of clear regulations.

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Weak intellectual property laws with limited implementation. The government is currently reviewing new intellectual property legislation.

Market Challenges

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Arbitrary tax policies.

Myanmar still has several market challenges and obstacles. For example, obtaining accurate and relevant market and financial data is onerous. Demand for well-educated and trained workers outstrips supply. Government ministers and their staff are overwhelmed due to the spike in interest from foreign governments, NGOs, and multinational businesses. Real-estate prices in Yangon have tripled, and infrastructure remains a barrier for growth. Market challenges that Myanmar has begun to address, but needs to show further progress on, include:

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A small and inexperienced financial sector and shallow domestic capital market.

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Limited supply of electricity, outside major urban areas.

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A weak educational system and unskilled work force.

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Poor infrastructure including communications and transportation network.

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There is no standard law on PPP (public-private partnership) between a public sector regulator and a private party, in which the private party provides a public service or project, and assumes substantial financial, technical and operational risk.

4: Viable projects: While there is a large amount of multilateral development underway, there is also a growing number of privately financed projects that are seeking American inputs. 5: Fast- Mover Advantage: Myanmar’s market presents U.S. companies with unique opportunities and potentially tremendous gains, but requires patience and persistence. Local knowledge gained by early movers could prove to be an invaluable competitive advantage. As the saying goes, if you wait for a perfect market, you will also face perfect competition.

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financial and trade transactions.

Moving money in and out of the country continues to be a challenge given U.S. banks reluctance to enter the market. The U.S. recently dropped relevant sanctions to allow easier

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As one of the least developed countries in Asia, Myanmar has market opportunities in nearly every sector, including infrastructure, transportation, telecommunications, tourism, hotels, agriculture, energy, healthcare, professional services, and franchising. Specifically, U.S. firms specializing in construction equipment, resource extraction, refining facilities, power generation, renewable energy, processed foods, auto parts, chemicals, computers, textiles, fertilizer, animal feed, and medical equipment will find export potential in Myanmar. In mid-2015, the World Bank (WB) reclassified Myanmar as a lower-middle income country, whereas previously it was a low-income nation. The nation’s Gross National Income (GNI) per capita was at US$ 1270 in 2014 by World Bank which is higher than Cambodia’s GNI per capita of US$ 1020 in 2014. Per Boston Consulting Group’s report in 2013, 5.3 million people (10% of the population) earned more than US$ 120/ month, which was the minimum threshold for middle class in Myanmar. If the current growth rate continues, more than 10 million will achieve middle class status by 2020. The report also noted that around 27% of the population increased their discretionary spending over the 2012/13 period. By 2020 around 15.4% of the nation’s total population was expected to be classified as low-income or poor, down significantly from 23.1% at the end of 2013. According to a report by Nielsen-MMRD’s Emerging Market Insights in September 2014, six in ten consumers are able to spend money beyond essentials such as food and shelter. They are earning 90% more and spending 60% more on average than they were in 2008. One in ten Burmese currently uses banking services. A third of the average

Myanmar household budget is spent on food and groceries, 9% on health care, 8% on mobile phones, 2% on rent. Consumer spending power will continue to be concentrated in Yangon, Mandalay and other urban areas. Myanmar is evolving quickly as consumers explore new products and services. The immediate consumer market for U.S. products is still somewhat limited. As incomes rise, demand for U.S. consumer goods is expected to grow in step. Most optimistic estimates project a quadrupling of Myanmar’s GDP by 2030 during which the urban population is expected to double. Such dramatic growth is far from assured and assumes significant investment in upgrading the country’s infrastructure. In the long term, domestic consumption in Myanmar will provide important business opportunities for U.S. firms.

DOING BUSINESS IN BURMA

Market Opportunities

Market Entry Strategy U.S. business should consult with U.S. Commercial Service office at the Embassy and reputable business consultants and lawyers to determine the most appropriate entry strategy for Myanmar. The Commercial Service in Yangon provides a series of solutions to business needs including: Initial Market Check (IMC), Gold Key Match-Making Service (GKS), Single Company Promotion (SCP), Business Facilitation Service (BFS), International Buyers Program (IBP), and Advocacy Services to assist U.S. firms. Also, a local partner is highly recommended. Despite the passage of a new Foreign Investment Law in November of 2012, entering the Myanmar market is complex and requires effort and patience. Various economic reforms are ongoing and will contribute towards steering the business climate in the right direction.

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Political and Economic Environment

U.S. - BURMA RELATIONS | The United States supports a peaceful, prosperous, and democratic Burma that respects the human rights of all its people. Elections in November 2010 led to a peaceful transition from sixty years of military rule to a quasi-civilian government headed by former President Thein Sein. Under former President Thein Sein, the previous Government of Burma initiated a series of political and economic reforms which resulted in a substantial opening of the long-isolated country. These reforms include the release of many political prisoners and child soldiers, the signing of a cease-fire agreement with eight major non-state ethnic groups, greater enjoyment of freedom of expression, including by the press, and parliamentary by-elections in 2012 in which pro-democracy leader Aung San Suu Kyi and her opposition party, the National League for Democracy (NLD), won 43 of the 45 contested seats. In historic elections in November 2015, the NLD won a majority of the total seats in the national parliament and in most state and regional parliaments. Despite some structural problems, including the reservation of 25 percent of parliamentary seats for the military; the disfranchisement of groups of people who voted in previous elections, including the Rohingya; and the disqualification of candidates based on arbitrary application of citizenship and residency requirements, this election represented an incredible step forward in Burma’s democratic transition. The new national parliament sat February 1, 2016, and National League for Democracy member Htin Kyaw was inaugurated as president on March 30, 2016. President Htin Kyaw’s inauguration and the formation of a democratically elected, civilian-led government were

momentous steps for Burma’s democratic transition. In two of its first major initiatives, the new government released two waves of political prisoners, including five well-known journalists and 69 student activists held on politically motivated charges, though others remain in jail. These actions demonstrated the new government’s ability to realize its commitment to human rights issues. The Obama Administration has employed a calibrated engagement strategy to recognize the positive steps undertaken to date and to incentivize further reform. The guiding principles of this approach have been to support Burma’s political and economic reforms; promote national reconciliation; build government transparency, and accountability and institutions; empower local communities and civil society; promote responsible international engagement; and strengthen respect for and protection of human rights and religious freedom. As part of our calibrated approach to support further reform, the United States has restored full diplomatic relations, re-established a U.S. Agency for International Development (USAID) Mission in country, supported new grant and lending operations and technical assistance by international financial institutions, and eased economic and investment sanctions against Burma. Senior U.S. government officials, including President Obama, continue to travel to the country to meet with the Government of Burma, political parties, civil society, human rights activists, religious and ethnic leaders, and youth, demonstrating the United States’ continuing support to Burma in its democratic reform efforts. While the country has made significant progress, major institutional and political challenges remain, including completing the national reconciliation process with various

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The military government changed the country name to “Myanmar” in 1989. U.S. ASSISTANCE TO BURMA | The United States has a long-standing commitment to improving the lives of the people of Burma. After the USAID Mission was closed in 1989, the United States continued to deliver emergency humanitarian assistance along the ThailandBurma border, including through NGO partners for Burmese refugees and asylum seekers in the refugee camps on the border. The United States resumed targeted health programs in 1998. In 2008, U.S. assistance efforts scaled up in response to the devastation caused by Cyclone Nargis. Burma’s ongoing reforms led to the re-establishment of the USAID Mission in 2012. Carefully integrated with U.S. diplomatic efforts, U.S. development assistance focuses on deepening and sustaining key political and economic reforms, ensuring that the democratic transition benefits everyday people, and mitigating division and conflict. Since 2012, the United States has provided over $500 million to support Burma’s transition, advance the peace process, and improve the lives of millions, including by assisting communities affected by violence and combatting hate speech and communal violence. More than 1.1 million people have improved food security, and over 300,000 impoverished farming families have increased their agricultural productivity with better access to technology, markets and new investments. New entrepreneurs are benefiting from the economic reform process, which has increased access to information and communications technology. Over 20 public-private partnerships with leading U.S. corporations, information and communications technology companies, and foundations work to develop small and

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

DOING BUSINESS IN BURMA

ethnic groups, strengthening respect for and protection of human rights and fundamental freedoms, releasing remaining political prisoners, and improving the conditions in Rakhine State, particularly those facing members of the Rohingya population. Additionally, more progress needs to be made to reduce the military’s role in politics, move from cease-fires to political dialogue, and to improve rule of law and government accountability. The United States continues to emphasize to the Government of Burma the importance of promoting values of tolerance, diversity, and peaceful co-existence, and for the Burmese military to completely end military ties with the Democratic People’s Republic of Korea. In November 2014, President Obama attended the ASEAN Summit in Naypyitaw, Burma and met with former President Thein Sein, former Parliamentary lower house speaker Shwe Mann, and NLD Chairperson Aung San Suu Kyi. In each of these meetings, the President reiterated the United States’ commitment to stand with the people of Burma during the long road of reform to help the country realize its full potential as a peaceful, just, prosperous and democratic society. President Obama raised concerns about the need to address human rights and humanitarian issues, particularly related to the situation in Rakhine State, which pose serious challenges to Burma’s reform process. Burma’s leadership acknowledged the work that lies ahead and re-affirmed its commitment to work with the United States and international community to continue on the path of democratic reform. The Administration regularly consults with key stakeholders in Burma, Congress, U.S. allies, and other international actors in appropriate ways to encourage continued reform in the country.

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medium enterprises, improve healthcare, and bring new technologies to Burma. In preparation for the historic elections in 2015, the United States trained more than 7,300 political party members and partnered with over 300 civil society organizations on voter education and observation, strengthening public participation in Burma’s overall reform process. In FY 2015, the United States provided more than $50 million to address humanitarian needs in Burma, including among internally displaced persons throughout the country and vulnerable Burmese refugees and asylum seekers in the region. In response to the maritime migrant crisis in May and June 2015, the United States provided more than $6 million towards the emergency appeals from the International Organization for Migration and the UN High Commissioner for Refugees and helped provide temporary shelter, emergency relief items, and health, nutrition, and psychosocial assistance. During the heavy seasonal rainfall in July and August 2015 and Tropical Cyclone Komen, which caused significant flooding and landslides throughout the country and affected more than 1.6 million people, the United States provided more than $5 million in humanitarian assistance to all affected communities, working with local officials and international relief partners to distribute essential supplies and services to the emergency shelters in the worst-affected areas and assist in early recovery efforts. The United States continues to provide emergency assistance to vulnerable communities along the Thailand-Burma border and in Rakhine, Kachin, and Shan States. In addition to USAID, many other U.S. agencies provide assistance and training in Burma, including the U.S. Department of State, U.S. Department of Commerce, U.S. Department of Health and Human Services, U.S. Census

Bureau, U.S. Patent and Trademark Office, U.S. Department of Energy, U.S. Department of Labor, U.S. Department of Defense, U.S. Department of the Treasury, and U.S. Trade and Development Agency. BILATERAL ECONOMIC RELATIONS | In recognition of Burma’s political and economic reform progress, the United States has taken concrete steps to accelerate broadbased economic growth and support the political reform process. The United States played an instrumental role in supporting renewed engagement from multilateral development banks, which re-started operations in 2013. Over the past three years, U.S. development partners at the World Bank and Asian Development Bank have committed more than $3.8 billion to critical needs in Burma’s infrastructure and human services. In July 2012, the Administration issued general licenses that, subject to certain limitations, authorize the exportation of U.S. financial services to Burma and authorize new U.S. investment in Burma, thus permitting the first new U.S. investment in Burma in nearly 15 years. In September 2012, the Administration removed President Thein Sein and Speaker Shwe Mann from the Specially Designated Nationals (SDN) list. In October 2012, the Administration took action under H.R. 6431 to allow the U.S. Executive Directors at international financial institutions (IFIs) to vote in favor of the provision of assistance for Burma by the IFI, paving the way for new grant and lending operations. In November 2012, the Administration issued a waiver and general license to ease the ban on the importation of products of Burma into the United States, with the exception of jadeite and rubies mined or extracted from Burma and articles of jewelry containing

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

leading role by enhancing human capacity and promoting global standards throughout Southeast Asia due to the quality of private investment. U.S. companies will continue to play a critical role in supporting broad-based, sustainable development in Burma and are helping the country progress toward a more open, inclusive, and democratic society.

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them, for the first time in almost a decade. The July 28, 2013 expiration of the Burmese Freedom and Democracy Act’s (BFDA) ban on imports from Burma removed the underlying statutory basis for the general import ban. Shortly thereafter, the President issued Executive Order 13651 to remove the general import ban from Executive Order 13310 and to maintain the previously described restrictions associated with jadeite and rubies. In 2013, the Administration issued a general license to authorize U.S. persons to conduct most transactions – including opening and maintaining financial accounts and conducting a range of other financial services – with four of Burma’s major financial institutions: Asia Green Development Bank, Ayeyarwady Bank, Myanmar Economic Bank, and Myanmar Investment and Commercial Bank. In December 2015, the Administration issued a six-month general license to authorize most transactions ordinarily incident to the export of goods, technology, and non-financial services to or from Burma provided that the exportation is not to, from, or on behalf of SDNs or otherwise blocked persons. The U.S. government encourages responsible investment in Burma as part of an overall strategy to encourage economic growth and improve the standard of living for the people of Burma. The United States plays a

BURMA’S MEMBERSHIP IN INTERNATIONAL ORGANIZATIONS | Burma became a member

of the United Nations in 1948 following independence from the United Kingdom, and a member of the Association of Southeast Asian Nations (ASEAN) in 1997. Burma was the chair of ASEAN for 2014, its first chairmanship in 17 years as an ASEAN member state. Burma and the United States belong to a number of the same international organizations, including the UN, International Monetary Fund, World Bank, and World Trade Organization. BILATERAL REPRESENTATION | The U.S. Ambassador to Burma is Scot Marciel; other principal embassy officials are listed in the Department’s Key Officers List. Burma maintains an embassy in the United States at 2300 S Street NW, Washington, DC 20008, tel.: (202) 332-3344; fax: (202) 332-4351. ♦

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DOING BUSINESS IN CAMBODIA Market Overview Cambodia has experienced rapid economic growth over the last decade. Cambodian gross domestic product (GDP) has grown at an average annual rate of 7.5% over the past decade and it is expected to continue to grow at a similar rate in 2016. Cambodia’s economy is expected to officially reach lower-middle income status in mid-2016. Cambodia, however, remains one of the poorest countries in Asia. It is still reliant on foreign aid, with donor support totalling approximately 32% of the government’s budget in 2015. Despite the strong performance of the garment, tourism, and construction/real estate sectors, Cambodia remains an agrarian country. Approximately 80% of the Cambodian population is involved in agriculture on a full-time or part-time basis. Since Cambodia became the first least-developed country (LDC) to join the World Trade Organization (WTO) in 2004, trade has steadily increased. The United States is Cambodia’s largest trading partner. In 2015, approximately 25% of Cambodia’s total exports reached the United States – primarily garment and footwear products. In 2015, Cambodian exports to the United States were valued at US$3 billion and U.S. exports to Cambodia were US$392 million. The United States and Cambodia are signatories to a 2006 Trade and Investment Framework Agreement (TIFA) to promote greater trade and investment in both countries and to provide a forum for addressing

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bilateral trade and investment issues. In February 2016, the third TIFA meeting was held in Phnom Penh. The United States and Cambodia began exploratory discussions on a Bilateral Investment Treaty (BIT) in May 2013. Additional exploratory talks on a BIT were held in February 2016 and these discussions are ongoing. Cambodia is also a member of the Association of Southeast Asian Nations (ASEAN) and the Asia Free Trade Area (AFTA).

Market Challenges Significant challenges to doing business in Cambodia commonly cited by the private sector include weak rule of law, poor infrastructure, high energy costs, corruption, and under-developed human resources. Lack of respect for basic human rights, including media freedoms, freedom of expression, and freedom of assembly, continues to be a concern and has factored prominently in disputes over land rights. Limited enforcement of intellectual property rights, including the sale of counterfeit and pirated products, also remains a major concern for U.S. companies.

Market Opportunities Cambodia offers potential investment opportunities in agribusiness and food processing; tourism infrastructure and resorts; education; architecture, construction, and

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economic development, achieve the fullest possible accounting for Americans missing from the Indochina conflict in the 1960s and 1970s, and to bring to justice those most responsible for serious violations of international humanitarian law committed under the 197579 Khmer Rouge regime.

Market Entry Strategy

U.S. ASSISTANCE TO CAMBODIA | Cambodia is at peace after decades of conflict, although important challenges remain. Cambodia relies heavily on foreign assistance— between 30 and 40% of the central government’s budget depends on donor aid. U.S. assistance makes significant contributions to the country’s development. In 2014, U.S. foreign assistance for programs in health, education, governance, economic growth, and demining of unexploded ordnance totalled over US$77.6 million.

Working with a local partner, such as an agent or distributor, is the most effective way to reach Cambodian consumers. A local partner can facilitate and expedite market entry through market knowledge and established networks. In Cambodia, personal relationships can be the key to successful business transactions.

Political and Economic Environment

U.S. - CAMBODIA RELATIONS | Over the last several decades of the 20th century, the United States and Cambodia established, broke off, and re-established relations as a result of armed conflict and government changes in Cambodia. Full diplomatic relations were established after the freely elected Royal Government of Cambodia was formed in 1993. President Obama became the first incumbent President to visit the country during the November 2012 East Asia Summit. The United States is working with Cambodia to further develop its democratic institutions and promote respect for human rights. The two countries are also striving to increase trade and address challenges from promoting regional security to expanding global health and development. The United States also supports efforts in Cambodia to reduce the prevalence of HIV/AIDS, improve nutrition for children, eliminate human trafficking and corruption, address environmental degradation, better manage natural resources, foster

DOING BUSINESS IN CAMBODIA

engineering services; household goods and appliances; used cars and automotive parts; power generation equipment and power transmission infrastructure; fast food and beverage franchises; pharmaceuticals; and medical supplies and equipment.

BILATERAL ECONOMIC RELATIONS | Cambodia’s economy still suffers from decades of war and internal strife. The economy is heavily dollarized; the dollar and riel can be used interchangeably. The U.S. normalized economic relations with the country in 1992, and is now the largest single country purchaser of Cambodia’s exports. Manufacturing output is concentrated in the garment sector, which dominates Cambodia’s exports, especially to the U.S. and the European Union. C A M B O D I A ’ S M E M B E R S H I P I N I N T E R N AT I O N A L O R G A N I Z AT I O N S |

Cambodia became a member of the United Nations in 1955 following independence from France in 1953. Cambodia and the United States belong to a number of the same international organizations, including the UN, International Monetary Fund, World Bank, and World Trade Organization.

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BILATERAL REPRESENTATION | The U.S. Ambassador to Cambodia is William A. Heidt; other principal embassy officials are listed in the Department’s Key Officers List (http://www. state.gov/documents/organization/111812.pdf) Cambodia maintains an embassy (http:// www.embassyofcambodia.org/) in the United States at 4530 16th Street NW, Washington DC 20011; tel: (202) 726-7742; fax: (202) 726-8381.♦

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

DOING BUSINESS IN INDONESIA Market Overview Indonesia is Southeast Asia’s largest economy with a GDP of US$861 billion in 2015, ranking 8th in the world based on purchasing power parity, and averaging over 5% growth over the last decade. In the last year, growth has slowed but is projected by the World Bank to reach 5.1% in 2016. President Joko Widodo (known as “Jokowi”) took office in October 2014 and has pledged to improve infrastructure, diversify the economy, and reduce barriers to doing business in Indonesia as a means to increase the country’s GDP growth rate to 7% by 2017. Over the past decade Indonesia has enjoyed steady economic growth, though less than needed to pull the country into upper middle-income status. Sound macroeconomic policies, combined with growing domestic demand and high commodity prices, propelled economic expansion in recent years. However, protectionist policies, corruption at all levels of government, poor infrastructure, weak rule of law, and labor rigidity have taken their toll. The economy slowed in 2015 to a 4.8% growth rate and the rupiah, like many other currencies, has weakened. Export revenues have fallen due to the slowdown in China and declining global commodity prices. Imports have fallen even further as non-tariff barriers and negative market sentiment dampen demand. Though markets initially

responded positively to expectations that a Jokowi presidency would boost the economy, there are many urgent issues the new president will have to tackle to keep Indonesia growing. Beginning in September 2015, the Government of Indonesia (GOI) announced a series of economic reform packages in an effort to spur its GDP growth and encourage foreign investment. The announced reforms are a positive signal of the Jokowi administration’s desire to improve the business climate; however, the implementation and impact of the policies remains to be determined. Nonetheless, the Indonesian market has many positive attributes. ◊

Indonesia has a GDP per capita of US$3,370 ($11,100 at PPP) that exceeds many of its ASEAN neighbors such the Philippines and Vietnam, and with 255 million people (World Bank), Indonesia’s economy comprises nearly half of the ASEAN economic output.

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Indonesia is a thriving democracy with significant regional autonomy. It is located on one of the world’s major trade routes and has extensive natural resource wealth distributed over an area the size of the United States and comprised of 17,508 islands (CIA World Factbook).

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According to Euromonitor International,

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Indonesia has the world’s fourth largest middle class with 17.3 million households as of 2014, and is forecasted to expand to around 20 million households by 2030. The Boston Consulting Group estimates that there were 74 million Indonesian middle-class and affluent consumers (those spending over US$165 or 2 million IDR in key categories) in 2013, which would likely double by 2020. ◊

Globally, Indonesians are the fourth largest users of Facebook (60.3 million, May 2014). According to Statista, in the 4th quarter of 2014, Indonesia was found to have the highest Twitter user rate in the Asia Pacific with 84 percent of the online population having an account on the social networking site.

opaque or conflicting. Indonesia has begun to implement local content requirements that prevent some products from being sold in Indonesia. ◊

Although significant anti-corruption measures have been undertaken by the Indonesian government, corruption remains a concern for many businesses looking to operate within Indonesia. Indonesia ranked 88th on Transparency International’s Corruption Perceptions Index 2015. Companies are recommended to have a solid due diligence process in place and should consult with the U.S. Commercial Service prior to signing with agents and distributors.

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Although improving, significant ruleof-law issues persist. Formal dispute settlement mechanisms are not considered effective, and business and regulatory disputes— which would generally be considered administrative or civil matters in the United States—may be considered criminal cases in Indonesia. The court system is widely viewed as corrupt. In addition, international arbitration is widely discouraged by the government of Indonesia.

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Competition from 3rd country firms such as Singapore, China, Japan, Australia, Korea, and other regional players is intense, and U.S. firms often have to significantly adapt their business model and pricing scheme to compete effectively.

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Official trade statistics understate market opportunities and American presence given the large numbers

Market Challenges The business environment in Indonesia can be challenging, with Indonesia ranked 109 out of 189 countries in the “Ease of Doing Business” 2016 report by the World Bank. U.S. firms can encounter complex bureaucratic and regulatory requirements which make it time-consuming to enter the market. ◊ Indonesian infrastructure and service networks have not been developed or maintained to keep pace with the booming consumerled economy, causing increased transaction costs and inefficiencies that hamper exporters and investors. ◊

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Deregulation has successfully reduced some barriers, but nontariff barriers remain wide-spread and the bureaucracy can still be cumbersome. Laws are often

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Market Opportunities ◊

Consumer-related market opportunities continue to lead growth in the world’s fourth- largest country, and expansion in the retail, health, education, telecom and financial services sector have boomed in the last few years. The Indonesian consumer is ranked as one of the most confident in the world, and 50% of Indonesia’s 255 million citizens are under the age of 30.

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Indonesia’s aviation market is growing at 20% per year and favors U.S. products. Aircraft replacement parts and services is a valuable and significant market. There is also high demand for air traffic control and airport logistics services and ground support equipment.

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A competitive and expanding banking market offers significant opportunities for IT and banking equipment, software and technology providers. Indonesia’s under-developed public infrastructure remains a major national challenge and could present significant opportunities in aviation, rail, ports and land transport, as well as in municipal infrastructure projects such as water supply and wastewater systems. As the Indonesian military expands its budget, there are opportunities for U.S. defense manufacturers to sell a broad range of military aircraft,

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Important opportunities outside of Jakarta remain present in energy and electricity transmission services. The Government of Indonesia has announced its intention to increase electricity generation by 35,000 MW by 2019 and growth in power generation projects, conventional and renewable, and including IPPs, is expected to continue for the next decade.

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Telecommunications equipment and services and satellites remain excellent areas for American products and services, which have a comparative advantage technologically.

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Education and professional training, medical equipment and high-quality American agricultural commodities all retain their market edge even with premium prices.

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Emerging opportunities include palm oil, biofuel processing, clean energy and technology to improve local production capacity, and potentially cold storage and fish processing equipment and services.

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vehicles, communications systems, spare parts, and maintenance services. Monitoring and protection of sea-borne traffic for both national security and fisheries enforcement presents new opportunities.

of U.S. shipments that are recorded as U.S. exports to Singapore, but which ultimately enter Indonesia, and U.S. sales in Indonesia that U.S. multinationals source via third countries.

Market Entry Strategy ◊

U.S. companies must visit the Indonesian market in order to properly choose an appropriate agent or distributor in Indonesia. Appointment of a representative requires care, since it is

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difficult to terminate a bad relationship. Qualified representatives will not take U.S. principals seriously unless they make a commitment to visiting the market on a regular basis. Patience, persistence and presence are three key factors for success in Indonesia. ◊

Important factors affecting purchasing decisions in Indonesia are pricing, financing, technical skills, and after-sales service. Firms should be prepared to invest in training for their local staff, from entry-level personnel to experienced managers.

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Indonesian non-financial firms often depend on trade financing with nearly 50% of their financing obtained from abroad via loans, bonds, and other credit. U.S. Ex-Im Bank, OPIC, and SBA are all suitable providers of trade and investment financing for local projects.

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Although it is possible for U.S. companies to sell directly to the government and state-owned companies, local agents or distributors are often critical (and at times, required by law) for successful project development and delivery of products or services. Many government tenders are awarded based on the proven track record of providers or long-established relationships between the government agency and an agent or distributor.

Political and Economic Environment

U.S. – INDONESIA RELATIONS | U.S.Indonesia relations have taken on increasing importance. Indonesia is the world’s third largest democracy, has the largest

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Muslim-majority population, is the tenth-largest economy in the world by purchasing power, and possesses the world’s greatest marine biodiversity and its second greatest terrestrial biodiversity. Indonesia also borders the South China Sea, which has the world’s busiest sea lanes—over $5 trillion in cargo and as much as 50 percent of the world’s oil tankers pass through the South China Sea every year. The United States was one of the first countries to establish diplomatic relations with Indonesia in 1949, following its independence from the Netherlands. Indonesia’s democratization and reform process since 1998 has increased its stability and security, and resulted in strengthened U.S.-Indonesia relations. The U.S.-Indonesia Comprehensive Partnership, inaugurated in 2010 when President Obama traveled to Indonesia, fostered consistent high-level engagement on democracy and civil society, education, security, climate, maritime, energy, and trade issues, among others. Based on its success, in 2015 the two countries upgraded the relationship to the U.S.Indonesia Strategic Partnership, extending cooperation to issues of regional and global significance. BILATERAL ECONOMIC RELATIONS | Indonesia, the largest economy in Southeast Asia, has enjoyed steady economic growth over the past decade, averaging between 5-6 percent, with moderate inflation, rising foreign direct investment, and relatively low interest rates. Indonesia’s annual budget deficit is capped at 3 percent of GDP, and the Government of Indonesia lowered its debtto-GDP ratio from a peak of 100% shortly after the Asian financial crisis in 1999 to less than 25% today. Indonesia’s growing middle class, strong domestic demand, large and youthful population, and need for new

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governance, strengthening health systems, advancing security, partnering on international issues, and supporting environmental stewardship. Both countries are committed to strengthening university partnerships and increasing the number of American and Indonesian students who study in each other’s country. Currently, approximately 8,000 Indonesians study in the United States and 500 U.S. citizens study in Indonesia. U.S. development assistance is delivered through the U.S. Agency for International Development (USAID), Millennium Challenge Corporation and Peace Corps. USAID has been in Indonesia for over 60 years, enabling INDONESIA’S MEMBERSHIP IN INTER Indonesians to realize their full potential by NATIONAL ORGANIZATIONS | Indonesia partnering with Indonesians to become and the United States belong to a number self-reliant, advanced, well governed, and of the same international organizations and prosperous. The innovative programming forums, including the United Nations, ASEAN covers a five-year horizon valued at approxRegional Forum, the East Asia Summit, Asia- imately $700 million in the heath, environPacific Economic Cooperation forum, G-20, ment, education, and governance sectors. In International Monetary Fund, World Bank, 2013, the $600 million Millennium Challenge and World Trade Organization. Indonesia Corporation Compact entered into force with also cooperates with the United States on investments in renewable energy, maternal issues of regional and global concern such and child health, and Indonesia’s efforts as violent extremism, global peacekeeping to modernize its public procurement sysoperations, health pandemics, and climate tem. The Peace Corps works in underserved change. and rural schools and communities to help Indonesia reach its education development U.S. ASSISTANCE TO INDONESIA | goals through grassroots people-to-peoIndonesia faces domestic development chal- ple contact, cultural exchange, and technilenges; uneven benefits from democratic and cal skills transfer. economic progress; fragile institutions that Indonesia has the third-largest area of lack capacity to adequately address its so- tropical rainforest on the planet, with 131.3 cial service needs; and risks from climate million hectares – equivalent to 68% of its change and environmental degradation. It landmass – covered by forests. Indonesia is is also home to 41 million people living be- considered one of the world’s top greenhouse low the international poverty line of $1.25 gas emitters. The majority of Indonesia’s a day. Cooperation extends across a range greenhouse gas emissions stem from land of key development areas: strengthening use activities and peat fires. Our assistance education and professional ties, improving programming supports Indonesia’s goals of

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DOING BUSINESS IN INDONESIA

infrastructure makes it an important potential market for U.S. products and investment. U.S. bilateral goods trade with Indonesia totaled almost $27 billion in 2015, while bilateral trade in services with Indonesia exceeded $3 billion. Principal U.S. exports to Indonesia include transportation equipment, including aircraft, food and agricultural products, machinery and equipment, and chemicals. However, there are significant challenges to our bilateral economic relationship: the implementation of protectionist laws, limited infrastructure, and an unevenly applied legal structure.

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reducing greenhouse gas emissions through improved land use practices and increasing the amount of renewable energy generated as a proportion of Indonesia’s overall energy production. BILATERAL REPRESENTATION | There is currently no U.S. Ambassador to Indonesia; other principal embassy officials are listed in the Department’s Key Officers List. Indonesia maintains an embassy in the United States at 2020 Massachusetts Avenue NW, Washington, DC 20036 (tel. 202-775-5200). ♦

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DOING BUSINESS IN LAOS

Market Overview The Lao market economy has grown at nearly 8% for the last decade and is heading into a new phase of regional and global integration. After acceding to the World Trade Organization in 2013, Laos looks to the ASEAN Economic Community’s formal establishment at the end of 2015 as a marker for its next set of economic policy and trade development goals. Laos is one of the world’s few remaining communist countries. The Lao economic model bears some relation to its Chinese and Vietnamese counterparts, in that it has implemented market-based economic practices while maintaining a high degree of state control. Laos is politically stable. Laos and the United States signed a bilateral trade agreement in 2005, although the terms of the agreement are still being implemented in Laos, with U.S. assistance. Since 2005, trade has increased from US$14 million to US$61 million per year in 2014. Vietnam, China and Thailand have dominant trade and investment roles in the Lao economy, with participation in certain sectors by Korea, France, Japan, Australia, Malaysia, and Singapore. Bilateral trade between Laos and Thailand, its largest trading partner by far, totalled US$5 billion in 2014. Laos’ GDP was an estimated US$12.9 billion in 2015, up 7.5% from the prior year. The

Lao economy is projected to grow between 7 and 8% in 2016. The Lao population was estimated at 6.5 million in 2015. Approximately 70% of the workforce is employed in agriculture, mostly in small scale farming. The Lao population is young, with more than half under 20 years of age and 70% under 30. The country has a small but growing middle class concentrated mostly in the capital and larger cities. The Lao government weathered a fiscal and monetary crisis in 2013 and into 2014, brought about by poor budgetary processes, uncontrolled provincial spending, and a large raise for civil servants. The government is taking steps to address some deficiencies, though overall, fiscal and budgetary policy formulation and implementation remain weak. Major international companies have begun to invest in Lao Special Economic Zones, particularly near Savannakhet and Vientiane. Investors include Toyota, Nikon, and Essilor. Coca Cola opened a bottling plant in 2015. GE has a significant interest in the hydropower sector. Laos ran a projected trade deficit of approximately US$2.9 billion in 2014, with merchandise imports of US$7.6 billion, exports of US$4.1 billion and net services of US$750 billion. Laos imported US$24.6 million worth of goods from the United States and exported US$45.1 million to the United States in 2015.

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Top U.S. exports to Laos include steelmaking improved markedly in recent years with the inmaterials, precious metals, manmade cloth, troduction of automated customs procedures, specialized mining and industrial machines, dropping from an average 18 hours in 2010 to passenger cars, pharmaceutical preparations, 11 hours in 2012. The cost for a standard shipcell phones, and other household goods. ping container fell from US$2100 to US$1900 Top U.S. imports from Laos are green coffee, in 2013 but remains more than twice the renonferrous metal, industrial supplies, appar- gional average for East Asia and the Pacific. el household goods, apparel, and jewellery. Despite government efforts to establish The Lao Trade Portal, established in 2012, “one stop service” for business registration and has information for exporters and importers licensing, procedures for investment are cumat: http://www.laotradeportal.gov.la. The bersome and approvals often do not occur Lao Electronic Gazette, http://laoofficialga- within stated times or rules. zette.gov.la, is a repository of all Lao legislaHuman resources are not well developed tion and offers the public the opportunity to in Laos, and employers frequently have a difcomment on proposed legislation. Though ficult time finding and retaining qualified emmost information is in Lao, many laws have ployees. The market for skilled and unskilled been translated into English as well. workers is extremely tight. A World Bank survey found that nearly half of advertisements Useful Web Links for low-skilled workers attract no applicants. Tax administration is consistently cited as CIA World Factbook one of the largest barriers to commerce in Laos https://www.cia.gov/library/publications/ the-world-factbook/geos/la.html in surveys of small and medium enterprises. The World Bank’s “Ease of Doing Business” Lao Chapter of The American Chamber of Commerce http://amchamlao.com project ranks Laos 134 out of 185 other economies at: (http://www.doingbusiness.org/ Lao Investment Promotion Department http://www.investlaos.gov.la ExploreEconomies/?economyid=107) Corruption is a major problem and seriU.S. Census Trade data http://www.census.gov/foreign-trade/index.html ously hampers the efficient operation of the Lao economy and society. Competitors from U.S. Embassy in Vientiane, Laos http://vientiane.usembassy.gov countries without the legal or moral sanctions against corrupt practices have a major adMarket Challenges vantage in securing government approvals The Lao government has the goal of be- and concessions. Frequent bribes and payoffs coming a rule of law state by 2020. Currently, are an accepted part of Lao business culture. commercial law and the commercial court sys- (http://cpi.transparency.org/cpi2012/results/) tem in Laos are still developing and are not transparent. Sanctity of contract is not well understood in Laos and concessions or prop- Market Opportunities erty rights granted by the government are liIncreases in disposable income, particularable to overlap or conflict with other claims. ly among elites with access to resource-based Customs procedures are improving but re- industries, and a slowly expanding middle main opaque. Customs clearance speed has class mean that the consumer and services

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roadways, and underdeveloped medical, water, and sewage systems. The GOL is likely to make investments in these areas in coming years in keeping with its goal of graduating from Least Developed Country status by 2020. The minerals and mining sector has been a major driver of growth in Laos, particularly copper and gold. Other mineral resources include bauxite and potash.

DOING BUSINESS IN LAOS

sectors are likely to experience continued growth in the future. The government is strongly committed to becoming “the battery of Southeast Asia” by harnessing hydropower, and to a lesser extent wind, solar, and thermal energy resources to export electricity throughout the region. The power sector is open to foreign investment, with many international firms represented. Hydropower and transmission and distribution infrastructure will be the focus of increasing investment by the Lao government as it develops its power industry. The Lao agricultural sector also shows promise and is a priority for the Lao government. Land is underutilized. The low population density in Laos and large markets for agricultural goods and livestock in neighbouring markets have brought many new investors to explore agricultural opportunities. There are opportunities for exports of modern harvesting, planting, processing, and other technologies that would help the sector to grow. Many international companies are exploring Special Economic Zones (SEZs) in Vientiane and Savannakhet provinces. SEZs offer a range of incentives and tax holidays to investors depending on the industry. International investors have been attracted by the relative abundance of inexpensive electricity and the low cost of labor. The Lao government has targeted tourism, especially ecotourism, as a major area of future growth. Laos is attempting to attract more upmarket tourists to its market and has liberalized air services resulting in more frequent and less expensive flights to and from the country. The Lao government fully liberalized the retail sector in 2015, allowing foreign retail establishments to enter the country. Laos has a poorly developed infrastructure with only a few kilometres of rail, few decent

Market Entry Strategy American companies considering investments in Laos are advised to visit the country several times, as personal relationships are essential to locating suitable Lao business partners and avoiding misunderstandings. Many foreign businesses take on a Lao partner or agent and consult closely with law firms with local legal practices. The American Chamber of Commerce (AMCHAM) in Laos was established in 2012 and can help establish connections within Laos. The Lao National Chamber of Commerce and Industry may help locate suitable local partners or distributors (http://www.laocci. com). Foreign businesses can also apply for membership. In addition to AMCHAM, there are business chambers or associations from Australia, China, France, India, Japan, Korea, Taiwan, Vietnam, and the European Chamber of Commerce and Industry.

Political and Economic Environment

U.S. - LAOS RELATIONS | The United States established full diplomatic relations with Laos in 1955, following its full independence from France in 1954. Within a few years, Laos entered into civil war, and the United States

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DOING BUSINESS IN LAOS

supported the country’s royal government. For nearly a decade beginning in 1964, Laos was subjected to heavy U.S. bombing as part of the wider war in Indochina. Following the change of regimes in Vietnam and Cambodia in 1975, a communist government also came to power in Laos. The government aligned itself with Vietnam and the Soviet bloc, implementing one-party rule and a command economy. U.S.-Lao relations deteriorated after 1975, and U.S. representation was downgraded. After the collapse of the Soviet Union, Laos sought to improve relations with other countries. Full U.S.-Lao diplomatic relations were restored in 1992. In July 2012, Secretary of State Hillary Clinton visited Laos, marking the first visit by a Secretary of State since 1955. Accounting for American personnel missing in Laos and clearing unexploded ordnance (UXO) from the war were the initial focuses of the post-war bilateral relationship. Since that time the relationship has broadened to include cooperation on a range of issues including counter-narcotics, health, child nutrition, environmental sustainability, trade liberalization, and English language training. This expansion in cooperation has accelerated since 2009, with the launch of the Lower Mekong Initiative (LMI), which serves as a platform to address complex, transnational development and policy changes in the Lower Mekong sub-region. The United States and Laos share a commitment to ensuring a prosperous and sustainable future for the Mekong sub-region. U.S. ASSISTANCE TO LAOS | Though still

under one-party communist rule, Laos’ economy is now essentially a free market system building upon the 1986 introduction of some economic reforms. The overarching policy goals for U.S. assistance to Laos are to help

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the country meet its development goals, improve governance and the rule of law, and increase its capacity to integrate fully within the Association for Southeast Asian Nations (ASEAN) and the global economy. A large part of U.S. bilateral assistance to Laos is devoted to improving health and child nutrition. The United States also helps improve trade policy in Laos, promotes sustainable development and biodiversity conservation, and works to strengthen the criminal justice system and law enforcement. The United States has provided significant support for clearance of UXO from the war, particularly cluster munitions, as well as for risk education and victims’ assistance. BILATERAL ECONOMIC RELATIONS | U.S. exports to Laos include diamonds, metals, aircraft, vehicles, and agricultural products. U.S. imports from Laos include apparel, inorganic chemicals, agricultural products, and jewelry. Laos acceded to the World Trade Organization (WTO) in 2013 and will join the ASEAN Economic Community (AEC). Both of these processes require trade and regulatory reforms, which should make the investment climate more attractive to U.S. companies. WTO and AEC requirements also reinforce fuller implementation of the conditions of the 2005 U.S.-Laos bilateral trade agreement. The United States and Laos have a bilateral investment agreement and have signed a civil aviation agreement. LAOS’S MEMBERSHIP IN INTERNATIONAL ORGANIZATIONS | Laos and the United States

belong to a number of the same international organizations, including the United Nations, ASEAN Regional Forum, International Monetary Fund, World Trade Organization, and World Bank.

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DOING BUSINESS IN LAOS

BILATERAL REPRESENTATION | The U.S. Ambassador to Laos is Daniel A. Clune (http:// www.state.gov/r/pa/ei/biog/215270.htm); other principal embassy officials are listed in the Department’s Key Officers List. Laos maintains an embassy in the United States at 2222 S Street NW, Washington, DC 20008 (tel: 202-332-6416). ♦

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DOING BUSINESS IN MALAYSIA Market Overview For centuries, Malaysia has profited from its location at a crossroads of trade between the East and West, a tradition that carries into the 21st century. Geographically blessed, peninsular Malaysia stretches the length of the Strait of Malacca, one of the most economically and politically important shipping lanes in the world. Malaysia leveraged its strategic location to become one of the largest producers and exporters of tin, rubber and palm oil. Malaysia has been able to transform its economy from overdependence on raw materials and agriculture to a relatively high-tech, competitive nation. Services and manufacturing now account for nearly 75% of GDP (51.2% in services and 22.9% in manufacturing in 2014), while agriculture accounts for 8.9%, according to the World Bank. Malaysia’s population was 31.3 million as of December 2015. According to Bank Negara Malaysia (Malaysia’s Central Bank), Malaysia’s GDP in 2015 was valued at US$296.7 billion. In 2016, Malaysia GDP growth is projected be 4.4%. GDP growth was 5.0% and 5.9% in 2015 and 2014, respectively. Malaysia is continuing efforts to boost domestic demand and reduce the economy’s dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. Gross exports of goods and services constitute more than 80% of GDP, with

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15.8% of Malaysia’s exports going to China, its top trading partner. China’s weakened demand and falling global commodity prices have slowed Malaysia’s prospects for economic growth. ◊

In 2015 and 2016 Malaysia’s currency, the ringgit, faced downward pressure due to declining exports and strained government finances. For example, in 2014, the average exchange rate for the Malaysian Ringgit against the US Dollar was US$1=RM3.27, whereas the 2015 and 2016 (Q1-Q2) average was exchange rate was US$1= 3.9 and US$1=RM4.10, respectively. Malaysia’s economic headwinds have made the government’s attempts to rein in the budget deficit more challenging. This has a dampening effect on consumer sentiment and spending.

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Malaysia’s total trade for 2015 was US$376 billion. China is the top trading partner with 15.8% market share. Next is Singapore with 13.0% market share, followed by the EU with 10.1%, the U.S. with 8.8%, Japan 8.7%, Thailand 5.9%, Taiwan 4.1%, Indonesia 4.1%, South Korea 3.8%, Hong Kong 3.3%, and India 3.2%. 54% of Malaysia’s imports came from East Asia, with the largest share from China. The advanced

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Though overall Malaysian Foreign Direct Investment (FDI) to the US is relatively low at US$1.587 billion, Malaysia was the fifth fastest-growing source of Foreign Direct Investment (FDI) into the United States in 2014 (by UBO).

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Malaysia is an attractive destination for U.S. exporters. In addition to Malaysia’s attractive business environment and market potential, top reasons why U.S. companies should consider exporting to Malaysia include widespread English usage, relaxed foreign exchange, ability to repatriate capital and profits, a well-established legal framework, good infrastructure, and an affinity for United States products.

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Malaysia has a high (96%) U.S. visa approval rate, and a 10-year maximum validity visa makes it easy for your business partners to travel to the United States.

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Malaysia is a signatory to the TransPacific Partnership Agreement (TPP). Malaysia’s Parliament was the first to ratify the TPP. The TPP is pending ratification by the other signatories; once ratification is complete the TPP will enter into force. The TPP will establish an FTA among all 12 countries with a total market of 800 million people and a combined GDP of US$27.5 trillion. TPP members include: Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, Vietnam and Japan. The full text of the TPP and fact sheets on the agreement can be found here: https://ustr.gov/tpp/.

Market Challenges ◊

Malaysia restricts open trade in protected industries, such as the automotive and agricultural sectors. Malaysia protects domestic industries by imposing higher duty rates and excessive excise taxes. Malaysia also uses a system of import permits or licenses to reduce imports in protected and strategic sectors.

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Government restrictions hamper foreign involvement in several areas, including government procurement contracts; financial, business, and professional services; and telecommunications. In many cases it is imperative to have a local partner, usually a Bumiputra (ethnic Malay-owned) company, to effectively compete in the market.

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Malaysian officials continue to make progress in establishing fair and adequate protection of IPR. Although challenges remain, Malaysian officials have augmented their resources to combat online piracy and have sustained their efforts to deny access to piracy websites, taking down infringing content on domestic sites, and conducting raids and arrests of Malaysians either operating or posting links to sites with pirated content. The Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC), responsible for IPR enforcement, has been largely dependent upon complaints from companies to take action on transshipments of pirated goods.

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DOING BUSINESS IN MALAYSIA

economies (the United States, EU, and Japan) accounted for 26% of imports.

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DOING BUSINESS IN MALAYSIA

In the World Bank’s global “Doing Business 2016” report, Malaysia ranked 18th place overall among the 189 economies covered in the survey. The 2016 ranking is a slight decrease from 2015, when Malaysia ranked 17 out of 189 economies. Malaysia’s lowest topic rankings are in “registering property” (38th), “enforcing contracts” (44th), “trading across borders” (49th), and “resolving insolvency” (45th). Many of aforementioned market challenges will be resolved or improved under the TPP. Under the TPP, Malaysia has committed to eliminate tariffs or substantially improve market access on imports from the United States through tariff reductions and tariff-rate quotas. Furthermore, the TPP Agreement sets strong and balanced standards on IPR protection and enforcement. Under the TPP, Malaysia will also make significant improvements to its services markets.

healthcare products and services, as well as ecological lifestyle offerings. The World Bank classifies Malaysia as an upper-middle income nation. Through the Economic Transformation Program (ETP), the Malaysian government remains committed to reaching high-income status by the year 2020. This initiative includes a commitment to attract investment in “National Key Economic Areas” (NKEA) and a commitment to improving Malaysia’s infrastructure, especially its transportation infrastructure in East Malaysia (Sabah and Sarawak). Planned projects include the below: ◊

Development and upgrading of the 2,083 km Pan Borneo Highway that connects Sabah, Sarawak, and Brunei. Estimated value: RM16.6 billion; estimated completion date: 2021

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Sungai Besi-Ulu Klang Expressway (SUKE), a 31.8 km expressway linking Sg. Besi, Alam Damai, Ampang-KL Elevated Highway and KL Middle Ring Road. Estimated value: RM5.3 billion; estimated completion date: Unknown

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The Bandar Utama-Klang Valley light rapid transit (LRT) line is slated to be the third LRT system in Klang Valley. The LRT is currently in the planning stage and will stretch 36-kilometers with 25 stations. Estimated value: RM9.3 billion; estimated completion date: 2020

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The MRT Sungai Buloh-SerdangPutrajaya Line (MRT2) is the mass rapid transit line servicing the Sungai Buloh-Serdang-Putrajaya area. The line is part of a larger mass transit project aimed at connecting the Klang

Market Opportunities ◊

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Despite the fact the Malaysian economy is facing some turbulence, Malaysia has solid growth prospects and a rising middle class. In 2015, Malaysia’s per capita GDP was US$9,556.8 (current U.S. prices), when adjusting for purchasing-powerparity (PPP), Malaysia’s 2015 per capita GDP is US$26,314.8. Its purchasing power is among the third highest in ASEAN, after Singapore and Brunei. Malaysia’s level of economic development drives both consumer and business demand for products and services. Its consumers, though price sensitive, are accustomed to several decades of strong growth. Thus, they are attracted to and are familiar with international branded products, better education, quality

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Development of the Cyber City Centre in Cyberjaya, with an investment of RM11 billion over a period of 5 years

Managerial and Professional Staff are at least 51% Bumiputra ♦♦ Supporting Staff are at least 51% Bumiputra ♦♦

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The Malaysian government and GLCs make use of offsets and other measures to encourage technology transfer, particularly in defense procurements. The Government of Malaysia and GLCs also look favorably on U.S. companies that have a longterm presence in the local market. Therefore for strategic or large-scale market entry, U.S. companies typically find they are treated more favorably when they are willing to establish a local office, hire Malaysians, engage in training, undertake some amount of local assembly or production, or at least plan regular and frequent trips to maintain relationships and presence.

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In sectors that are not government dominated, companies, agents, or distributors should be selected based on competitive considerations (e.g. technical grounds or product knowledge). However, since the Malaysian market is a very relationship-oriented market, having a local presence or local agent can influence the final outcome.

A 1,300 hectare Aeropolis KLIA to be developed that is expected to attract RM7 billion in investments.

Market Entry Strategy ◊

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Most exporters find that using a local distributor or agent is the best first step for entering the Malaysian market. A local distributor is typically responsible for handling customs clearance, dealing with established wholesalers/ retailers, marketing the product directly to major corporations or the government, and handling after-sales service. Exporters of services generally also benefit from use of local partner. Sales to the Government of Malaysia, Government Linked Companies (GLC), or for procurement in priority sectors favor local agents and/or a joint venture partners that are classified as a Bumiputra (Malay) company. The term Bumiputera refers to individuals who are ethnically Malay. A Bumiputra company is defined as a company that fulfills the following criteria: Established under the Companies Act, 1965 ♦♦ Paid-up capital of at least RM25,000 ♦♦ Shareholders are 100% Bumiputra ♦♦ Board of Directors are at least 51% Bumiputra ♦♦

DOING BUSINESS IN MALAYSIA

Valley. Construction commenced in 2016. Estimated value: RM28 billion; estimated completion date: 2022

Political and Economic Environment

U.S. - MALAYSIA RELATIONS | The United States established diplomatic relations with Malaysia in 1957, following its independence from the United Kingdom, but has had a consular or commercial presence in the area comprising modern day Malaysia since the 1800’s.

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President Obama and Prime Minister Najib elevated the relationship to a Comprehensive Partnership in April 2014. Today, Malaysia is a significant regional and global partner for the United States, and the two countries share a diverse and expanding partnership in trade, investment, security, environmental cooperation, and educational and cultural relations. Economic ties are robust, and there is a long history of people-to-people exchanges. Malaysia has a diverse democracy and is an important partner in U.S. engagement with Southeast Asia. The two countries cooperate closely on security matters, including counter-terrorism, maritime domain awareness, and regional stability and participate frequently in bilateral and multilateral training, exercises, and visits.

Malaysia. The United States supports Malaysia’s counterterrorism efforts through information sharing, capacity building programs for law enforcement and judicial authorities, and assistance to improve immigration security and border controls. The United States also works with the Malaysian government and civil society actors on programs to counter violent extremism. Non-proliferation assistance aims at enhancing Malaysia’s ability to enforce its laws on shipments and trans-shipments of controlled munitions, dual-use commodities, and weapons of mass destruction and related commodities. Security cooperation and training builds capabilities among Malaysia’s armed forces and coast guard, allowing it to take on an expanded international role, including peacekeeping operations.

U.S. ASSISTANCE TO MALAYSIA | U.S. assistance to Malaysia focuses on education, exchanges, cultural heritage preservation, counterterrorism, non-proliferation, and security cooperation. The U.S. Fulbright English Teaching Assistant program in Malaysia is among the largest in the world, helping improve the English language skills of thousands of Malaysian secondary school students. Exchange programs promote engagement with secondary school and undergraduate students, Fulbright Scholars, agricultural fellows, and participants of sports and cultural programs. In 2014 President Obama announced additional exchange programs, grant opportunities and fellowships for youth ages 18 – 35 under the Young Southeast Asian Young Leaders Initiative (YSEALI). There are over 6,000 alumni of Department of State-sponsored exchange programs in Malaysia. Since 2001, the Ambassadors Fund for Cultural Preservation (AFCP) has supported 10 projects to support the preservation of cultural heritage in

BILATERAL ECONOMIC RELATIONS | On February 4, 2016, the United States and Malaysia joined the rest of the 12 Trans-Pacific Partnership (TPP) negotiating partners to sign the TPP, an ambitious next generation AsiaPacific trade agreement. In addition to working together on TPP, the United States and Malaysia meet frequently to discuss bilateral trade and investment issues and to coordinate approaches on APEC, ASEAN, and the WTO. In 2015, U.S.-Malaysia bilateral trade in goods and services approached $50 billion. In 2014, Malaysia was the United States’ 19th largest trading partner and the second-largest trading partner among the 10 ASEAN members in Southeast Asia. The United States is Malaysia’s fourth-largest trading partner. U.S. exports to Malaysia include machinery, aircraft, agricultural products, optic and medical instruments, and iron and steel. U.S. imports from Malaysia include machinery, agricultural products, and optic and medical instruments. The United States continues to hold the largest stock of

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Monetary Fund, World Bank, and World Trade Organization. Malaysia and the United States participate in the East Asia Summit. Malaysia is currently a non-permanent member of the Security Council (2015-2016).

B I L AT E R A L R E P R E S E N TAT I O N | The U.S. Ambassador to Malaysia is Joseph Y. Yun; other principal embassy officials are M A L AY S I A ’ S M E M B E R S H I P I N listed in the Department’s Key Officers List. I N T E R N AT I O N A L O R G A N I Z AT I O N S | Malaysia maintains an embassy in the Malaysia and the United States belong to United States at 3516 International Court NW, a number of the same international orga- Washington, DC 20008, tel. (202) 572-9700. nizations, including the United Nations, Additional useful resources may be found at Asia-Pacific Economic Cooperation fo- the website of the U.S. Embassy Kuala Lumpur, rum, ASEAN Regional Forum, International Malaysia: (https://my.usembassy.gov/). ♦

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DOING BUSINESS IN MALAYSIA

foreign investment into Malaysia, with several new investments in 2015. Reported U.S. foreign direct investment in Malaysia is led by the manufacturing, banking, and oil and gas sectors. Malaysian foreign direct investment in the United States is led by the real estate, gaming, biotechnology and wholesale trade sectors.

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DOING BUSINESS IN THE PHILIPPINES Market Overview KEY ECONOMIC INDICATORS AND TRADE STATISTICS | The Philippines has the twelfth

largest population in the world (about 100 million) and is the fourth largest English-speaking country. It also has one of the youngest populations in the world, with more than twothirds of its population under the age of 35. Relatively high population growth (nearly 2% annually) will help drive economic growth for the next several years, but will also increase the strain on the country’s infrastructure. Philippine GDP growth slowed for a second consecutive year to 5.8% in 2015 due mainly to climate/weather-related damage to farm output and lethargic exports but nevertheless remained among Asia’s top performers. Most economists project the economy will grow around the 6% mark in 2016, buoyed in part by election-related spending. Consumer spending, supported by remittances from overseas Filipinos and a growing middle class, remains the major GDP growth driver. Although still lagging behind regional peers, fixed capital investments and manufacturing output have accelerated with improved business confidence under the Aquino government. Helped by soft global oil prices, average year-on-year consumer price inflation slowed markedly from 4.1% in 2014 to 1.4% in 2015, well below the 2-4% range targeted by the Philippine Central Bank. Average inflation

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will likely accelerate in 2016 due partly to food-supply pressures from a severe and prolonged drought but is expected to remain within the government’s 2-4% target band. The Philippines reversed from a US$2.9 billion balance of payments (BOP) deficit in 2014 (its first BOP deficit in nearly ten years) to a US$2.6 billion surplus in 2015. The merchandise trade gap widened but resilient remittances from Filipino workers and migrants (up 4.4% year-on-year to US$28.5 billion) and rapidly expanding Business Process Outsourcing revenues (up more than 15% to nearly US$22 billion) kept the current account in surplus for a thirteenth consecutive year. Significantly smaller net outflows in the financial account—reflecting a drop in residents’ offshore net direct investments, net withdrawals by residents of currency and deposit placements abroad, non-residents’ repayment of loans owed to local banks, and net foreign loan proceeds—more than offset the smaller current account balance, pushing the overall BOP position to surplus territory. These also more than made up for larger net outflows of portfolio capital as both local and foreign investors repositioned investments from emerging economies due to uncertainties over global economic prospects and the U.S. Fed funds rate lift-off. Net foreign direct investment (FDI) inflows were flat at US$5.7 billion in 2014 and 2015 but have generally increased under the Aquino

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foreign currency sovereign ratings a notch above minimum investment grade, the highest achieved thus far in the Philippines’ credit-rating history. The Philippines has improved in various competitiveness rankings, including the World Economic Forum’s (WEF) Global Competitiveness Report (September 2015), rising 38 spaces since 2011 to 47th place—on the fringes of the government’s goal to climb to the top third in the rankings. However, the inadequate state of infrastructure remains a weak spot and investors continue to cite government red tape, regulatory uncertainties, a slow judicial system, and corruption as challenges to doing business in the country. The generally good economic news has been diminished by the relatively modest progress in addressing high unemployment (officially 6.5% in 2015) and under-employment (18.5% of the employed). U.S.-Philippines bilateral trade has grown by over 44% since 2009, amounting to nearly US$18.1 billion in 2015. In 2015, the Philippines ranked as the 32nd largest export destination for U.S. products and the 30th largest source of U.S. merchandise imports. The U.S. trade deficit with the Philippines was at US$2.3 billion in 2015. Other major importing countries include Taiwan, Singapore, and the Republic of Korea. External events, notably speculation over the timing and pace of an anticipated Fed funds rate, triggered further volatility in the foreign exchange market. The Philippines peso began weakening in mid-2013 with U.S. QE- tapering signals and developments and averaged 45.50 Philippine pesos (PhP) to the U.S. dollar during 2015, a 2.5% depreciation from the 2014 average rate. The peso closed 2015 at 47.06 to the U.S. dollar, almost 5% weaker from the end of 2014 (PhP44.82 per

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government, growing from US$1.1 billion in 2010 when President Aquino assumed office. The Philippines nevertheless remains among the region’s FDI laggards, with barely 3% of the total FDI stock in the region. The Philippine Central Bank’s gross international reserves (GIR) increased by 1.4% to US$80.7 billion between the end of 2014 and the end of 2015, equivalent to more than ten months’ worth of goods and service imports and nearly four times the Philippines’ shortterm foreign debt—well above international benchmarks. The national government’s fiscal deficit ended 2015 at 0.9% of GDP, higher than in 2014 (0.6% of GDP) but still well below the government’s target of 2% a year. The ratio of taxes to GDP—which remains among the lowest regionally—improved slightly from 13.6% to 13.7% but fell short of the government’s 15.3% target, making it unlikely for the government to meet the 16% tax-to-GDP goal by the end of President Aquino’s term in 2016. Unwelcome shortfalls in targeted expenditures, including infrastructure spending, have been more than offsetting taxes, reflecting problems in spending and implementation of projects. More vigorous efforts to untangle spending bottlenecks have yielded emerging improvements since the second half of 2015. Boosting tax collection remains a critical challenge moving forward to finance still large infrastructure gaps and the needs of a growing population, about a quarter of which lives in poverty. The overall improvement in macroeconomic stability, resilience to domestic and external shocks, and debt management efforts has been recognized by the “big three” credit rating agencies—Fitch, S&P, and Moody’s investment grade ratings. S&P and Moody’s currently rate the Philippines’ long-term

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U.S. dollar). Tracking the regional uptrend, the peso has recovered some of its value, trading at stronger than 47 pesos to the U.S. dollar since the second week of March 2016. The Philippine Stock Exchange Index (PSEi) climbed further to new record highs until the second week of April 2015 but, similar to emerging markets elsewhere, subsequently succumbed to unsettling external news, the specter of higher interest rates, and the repositioning of financial assets from emerging markets. The benchmark index closed 2015 down 3.9% year-on-year, pausing from six years of consecutive gains, although it began inching up in March 2016 due in part to more dovish interest rate signals from the U.S. Federal Reserve Board. As of March 2016, the PSEi had closed 4.5% higher than at the end of 2015 and also mustered a slight increase from the end of 2014. POLITICAL SITUATION AND OTHER ISSUES THAT AFFECT TRADE | The political situation

in the Philippines is stable. Philippine voters elected President Benigno S. Aquino III on May 10, 2010 to a single six-year term. In the May 9, 2016, general election, Filipinos elected Davao Mayor Rodrigo Duterte as president with around 39% of the vote. Mr. Duterte ran on a platform of cracking down on crime and illegal drugs, curbing corruption, and shifting the Philippines to a federal system of government. The transition from the Aquino Administration to Duterte Administration will take effect on June 30, 2016 and is expected to be smooth. The peace process between the Philippine government and the Moro Islamic Liberation Front (MILF), the largest Muslim separatist group in the country, is currently stalled following the failure of Congress to pass legislation to implement a 2014 peace deal. The

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incoming administration will determine the next steps. For now, both the government and the MILF have agreed to continue to adhere to the ceasefire. The Philippines is one of just four countries selected to join the Partnership for Growth (PFG), a “whole of government” effort established by President Obama to unlock the growth potential of partner countries towards becoming the next generation of emerging markets. Having signed this in 2011, the U.S. government is now working with the Philippines to help address the most binding constraints to growth and development, identified through rigorous analysis as weak governance, constrained public finances, inadequate infrastructure, and weak human resources. Within these broad areas, the U.S. and the Philippines are working together to, among others; improve regulatory quality, rule of law, anti-corruption enforcement, revenue collection and expenditure management, and human capacity development in health and education. The U.S. and the Philippines signed a fiveyear Millennium Challenge Corporation (MCC) Compact, effective 2011, to reduce poverty through economic growth. The grant funds three categories of projects focused on road infrastructure, community-level infrastructure and social services, and tax administration reform. Project activities are in the final stages of completion as the Compact is due to finish in May 2016 and initial implementation of sustainability plans in coordination with the Government of the Philippines has commenced. In December 2015, MCC’s Board reselected the Philippines as eligible to develop a second Compact program, and initial efforts are underway to identify economic constraints and a potential program of projects which could address the identified constraints.

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GRAFT AND CORRUPTION | The Philippine

Government has made major strides in fighting graft and corruption, though some key officials of the Aquino Administration have been embattled with corruption issues despite making anti-corruption efforts a flagship program of the government. Corruption, a constraint to business and outside investment, is a pervasive and long-standing challenge in the Philippines. The country’s ranking in Transparency International’s Corruption Perceptions Index declined from 85 in 2014 to 95 in 2015. INEFFECTIVE JUDICIAL SYSTEM | The Philippines’ complex, slow, and complicated judicial system can inhibit the timely and fair resolution of commercial disputes. Most cases take many years to reach a final verdict. LIMITED OWNERSHIP | The Philippines has restricted foreign ownership in selected industries, including utilities and the media. See Investment Climate Statement Section in the Philippines Country Commercial Guide that can be found at https://www.export. gov/ccg The government also lists several professions where foreign participation is not allowed. REGULATORY SYSTEM | Product registra tion, product standards, and environmental and labelling requirements place restrictions on certain products. See Trade Regulations Section in the Philippines Country Commercial Guide that can be found at https://www.export. gov/ccg VALUE-ADDED TAX (VAT) | The VAT is a 12% tax levied on the sale of all goods and

services, including the imports of goods into the Philippines. The VAT is an indirect tax which is generally passed on to the buyer/ consumer. INFRASTRUCTURE | The Philippines lags behind many of its neighbors in infrastructure development. Major improvements are needed in transport infrastructure. While renovation is underway, overcapacity at the Ninoy Aquino International Airport (NAIA), the primary international gateway in the country, presents a significant impediment to development and tourism. Port congestion, especially at the Port of Manila, and customs processing can significantly delay the entry of goods into the country. The Aquino administration has instituted a Public-Private Partnership (PPP) program to address the country’s pressing infrastructure needs. For more information on the PPP program, please visit http://ppp.gov.ph.

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Market Challenges

HIGHLY PRICE-SENSITIVE MARKET | U.S. products are generally known as being high quality, but more costly. U.S. exporters should not expect to apply their U.S. pricing strategy in this market. Distributors and customers will request payment terms. P H I L I P P I N E G O V E R N M E N T PROCUREMENT | There are significant

procurement opportunities with the Philippine Government. However, the governing law for government procurement, Republic Act (RA) 9184, generally requires foreign vendors to work with local representatives, has arduous paperwork requirements, limits advance payment to a maximum of 15%, and only allows 90% payment upon delivery of goods. The remaining 10% is withheld until after the warranty period is completed. See U.S.

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Selling Products and Services Section in the Philippines Country Commercial Guide that can be found at https://www.export.gov/ccg CUSTOMS | U.S. exporters need to ensure that their Philippine consignee has the proper accreditation to receive imports. In addition, specific products require special licenses and permits prior to shipment. U.S. exporters may contact the U.S. Commercial Service Philippines (CS Philippines) to determine if their goods require import permits. The Customs Bureau has implemented the National Single Window (NSW) to simplify the formal entry process. See Customs Regulations Section in the Philippines Country Commercial Guide that can be found at https://www. export.gov/ccg TARIFF/NON-TARIFF BARRIERS AND OTHER TRADE REGULATIONS | See Trade Regulations,

Customs and Standards Section in the Philippines Country Commercial Guide that can be found at https://www.export.gov/ccg

Market Opportunities Best prospects for U.S. companies in the Philippines are infrastructure, energy, (including renewable energy, renewable fuels and smart grid), information and communication technology (ICT), defense, medical, and water resources. ICT companies in particular may find opportunities in providing equipment and services to the growing business process outsourcing (BPO) sector, which is growing at a rate of 15% a year. U.S. medical technology is widely used in private hospitals in the Philippines. Energy production, conservation and efficiency are top priorities as the country is presently operating

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on low reserve margins and at high rates, with many remote areas suffering blackouts. Companies in water/wastewater management will also find opportunities in the Philippines. Many of these sectors are in the government’s Public-Private Partnership (PPP) program targeting those projects of priority to the government. The Government of the Philippines actively seeks foreign participation to promote economic development of these PPP projects. Some foreign companies have partnered with local groups on large projects. Twelve projects, covering transport, education, water and the medical sector, have been awarded, and several more are in the bidding stage for airports, roads, water, port, prison facility and information technology projects. Other promising sectors include franchising, aviation, and security. The Philippines ranks in the top 10 markets in the world for U.S. food and beverages and continues to be a promising market for U.S. companies in this sector. ASIAN DEVELOPMENT BANK | The Asian Development Bank, Asia’s premier multilateral development institution, is headquartered in Manila. U.S. firms are advised to explore the lucrative business opportunities that are derived from the US$27 billion that the ADB awards its 45 developing member countries annually. The ADB has a goal of 50% private sector participation in ADB-financed projects by 2020. Major sectors financed by the ADB include energy, transport, water supply, education, agriculture, and other development-related initiatives. ADB also lends directly to the private sector through its Private Sector Department. U.S. firms are

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Market Entry Strategy Agents and distributors are commonly used in the Philippines and are essential for most U.S. companies. See using agents and distributors section in the Philippines Country Commercial Guide that can be found at https:// www.export.gov/ccg Government procurement requires a local partner, with certain exceptions. See Section 23.5 - Eligibility Criteria of the Revised Implementing Rules and Regulations of Republic Act No. 9184 or The Government Procurement Act (http://www.gppb.gov.ph/ laws/laws/RevisedIRR.RA9184.pdf). It is recommended that U.S. companies visit their agents and distributors to strengthen these relationships and assess the local companies’ abilities. If possible, they should also visit existing and potential clients with their agents and distributors to promote their product lines and/or better understand the clients’ requirements. U.S. companies should be patient yet diligent in pursuing contracts, particularly projects with the Philippine Government. U.S. firms seeking agents or distributors in the Philippines are encouraged to use the services of the U.S. Commercial Service Philippines (CS Philippines). For more information, visit (http://export.gov/ philippines/) and click “Services for U.S. Companies.” U.S. firms may also contact CS Philippines (http://export.gov/philippines/ contactus/index.asp) or a local U.S. Export Assistance Center (http://export.gov/ usoffices/index.asp), or send an email to businessphilippines@trade.gov.

Political and Economic Environment

U.S. – PHILIPPINES RELATIONS | The United States recognized the Philippines as an independent state and established diplomatic relations with it in 1946. Except for the 1942-45 Japanese occupation during World War II, the Philippines had been under U.S. administration since the end of the SpanishAmerican War in 1898. The U.S.-Philippine Bilateral Strategic Dialogue (http://www.state.gov/r/pa/prs/ ps/2012/01/182689.htm) advances discussion and cooperation on bilateral, regional, and global issues. U.S.-Philippine relations are based on strong historical and cultural links and a shared commitment to democracy and human rights. The United States has designated the Philippines as a Major Non-NATO Ally, and there are close and abiding security ties between the two nations. The Manila Declaration signed in 2011 reaffirmed the 1951 U.S.-Philippines Mutual Defense Treaty as the foundation for a robust, balanced, and responsive security partnership. There is also a focus on economic, commercial, and people-to-people ties. There are an estimated four million U.S. citizens of Philippine ancestry in the United States, and more than 220,000 U.S. citizens in the Philippines, including a large presence of United States veterans. An estimated 650,000 U.S. citizens visit the Philippines each year. Many people-to-people programs exist between the United States and the Philippines, including Fulbright, International Visitor Leadership Program, and the Kenney-Lugar Youth Exchange and Study program. Manila is home to the only VA benefits office and healthcare clinic outside the United States, and the American Cemetery in Manila is the largest American military cemetery outside the United States.

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competitive in bidding for ADB projects and have won nearly US$9 billion in ADB contracts since 1966.

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U.S. ASSISTANCE TO PHILIPPINES | The U.S. government’s goal in the Philippines is to partner with the country to become a stable and prosperous nation. The 2011 Partnership for Growth Statement of Principles reinforced a shared interest in promoting inclusive and sustainable economic growth in the Philippines. U.S. assistance to the Philippines fosters broad-based economic growth; improves the health and education of Filipinos; promotes peace and security; advances democratic values, good governance, and human rights; and strengthens regional and global partnerships. Department of State, Department of Defense, and the U.S. Agency for International Development (USAID) programs in conflict-affected areas of Mindanao aim to strengthen the foundation for peace and stability in the area. U.S. assistance, including from the Millennium Challenge Corporation, seeks to intensify cooperation through a whole-of-government approach, using a wide range of assistance and other foreign policy tools. The United States has had a Peace Corps program in the Philippines for over 50 years. Over the last decade, disaster relief and recovery has also become an increasingly important area of assistance to the Philippines. The United States has provided over US$143 million in assistance to date to the people of the Philippines in relief and recovery efforts after Typhoon Haiyan/Yolanda devastated the country in 2013. The United States continues to support long-term reconstruction and rebuilding efforts.

largest foreign investors in the Philippines, and is the Philippines’ third-largest trading partner. The Philippines has been among the largest beneficiaries of the Generalized System of Preferences program for developing countries, which provides preferential duty-free access to the U.S. market. Key imports from the Philippines are semiconductor devices and computer peripherals, automobile parts, electric machinery, textiles and garments, wheat and animal feeds, coconut oil, and information technology/business process outsourcing services. Key U.S. exports to the Philippines are machinery, cereals, raw and semi-processed materials for the manufacture of semiconductors, electronics, and transport equipment. The two countries have a bilateral Trade and Investment Framework Agreement, signed in 1989, and a tax treaty. The Embassy is working to advance several key Environment, Science, Technology, and Health issues. The Philippines is an important partner on climate change and submitted an “intended nationally determined contribution” (INDC) prior to the December 2015 COP 21 meetings in Paris. USAID is providing key technical assistance to help ensure the Philippines’ INDC is meaningful and science-based. In support of Secretary Kerry’s Our Ocean initiative, the Philippines is working to finalize its accession to the “Ports States Measures Agreement on Illegal, Unregulated, and Unreported Fishing.”

BILATERAL ECONOMIC RELATIONS | The United States and the Philippines have a strong trade and investment relationship, with over US$25 billion in goods and services traded. The United States is one of the

and the United States belong to many of the same international organizations, including the United Nations, ASEAN Regional Forum, Asia-Pacific Economic Cooperation (APEC) forum, International Monetary Fund,

PHILIPPINES’S MEMBERSHIP IN INTER NATIONAL ORGANIZATIONS | The Philippines

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BILATERAL REPRESENTATION | The U.S. Ambassador to the Philippines is Philip S. Goldberg (http://www.state.gov/r/pa/ei/ biog/136919.htm); other principal embassy officials are listed in the Department’s Key Officers List (http://www.state.gov/ documents/organization/111812.pdf). The Philippines maintains an embassy in the United States at 1600 Massachusetts Avenue NW, Washington, DC 20036 (tel. 202-467-9300). ♦

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World Bank, and World Trade Organization. The Philippines is also an observer to the Organization of American States. The Philippines serves as chair and host of the APEC forum for 2015.

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DOING BUSINESS IN THAILAND Market Overview Thailand, the second largest economy in ASEAN after Indonesia, is an upper middle-income country with an open economy and a gross domestic product (GDP) of US$387 billion in 2015. Thailand is the 25th largest export destination for the United States. Two-way trade of goods and services in 2015 averaged US$39.8 billion, with US$28.6 billion in Thai exports to the U.S. and US$11.2 billion in U.S. exports to Thailand. U.S. exports to Thailand contracted by 4.7%, while U.S. imports from Thailand increased by about 5.4% for the same period in 2014. Among countries in Asia, Thailand ranks as the United States’ 9th largest export destination after China, Japan, South Korea, Hong Kong, Singapore, Taiwan, India, and Malaysia. An export-dependent economy, Thailand exported a total of US$210.9 billion worth of goods in 2015, a decrease of 5.6% from 2014. The United States was Thailand’s No. 1 export market (11.2%), followed by China (11.1%) and Japan (9.4%). The top ten export items were machinery (17.6%), electronics appliances (13.9%), vehicles and automotive parts (12.6%), rubber (5.8%), plastic (5.6%), gems and jewellery (5.1%), oil (3.9%), meat and seafood (2.8%), medical device and supplies (2.5%) and cereals (2.2%). Thailand is one of the world’s most visited countries and tourism is vital to the Thai

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economy, it contributes approximately 10% of the country’s Gross Domestic Product (GDP). In 2015, Thailand recorded 29.88 million tourist arrivals, a 20.4% increase over 2014, and the government aims to attract a record 33 million visitors in 2016. The six main airports of Thailand served a record 110 million passengers in 2015, an increase of 21.3% over 2014. After a dismal GDP growth rate of only 0.9% in 2014, the Thai economy showed signs of improvement in 2015. Output grew by 2.8%, while headline inflation dropped to 0.9%. The current account surplus rose to 8.8% of GDP, due to a sizable increase in tourism and a drop in imports associated with tepid domestic demand. Thailand’s financial markets weathered global financial volatility relatively well in 2015. The recovery is expected to strengthen moderately, with real GDP growth projected at 3% in 2016 and 3.2% in 2017. A slight improvement in business confidence, low energy prices, and increased government spending resulted in a recent uptick in private consumption. The government has pledged to spend US$50.2 billion through 2018 on the construction of twenty infrastructure projects covering rail, roads, air transport and ports. Financing will come from various sources including government spending and public-private partnerships.

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In May 2014, the Thai military suspended the constitution and took control of the government in a coup d’état. Reforms have been ongoing as a new constitution is drafted, and a constitutional referendum is expected in August 2016. The current administration has announced its intent to hold general elections in mid-2017 once the constitution is approved. With minimal growth in 2015 and a third year of declining exports, Thailand’s economy has remained stagnant. Thai industries face intense competition from both global and domestic suppliers of goods and services. Many domestic companies are family businesses that span generations, and are now led by second- and third-generation businessmen and women who are highly educated and possess deep knowledge of their industries. Thailand’s mass market is price conscious and generally served by local suppliers and/or low-priced imports. U.S. exporters with products that are competitive for reasons other than price should work with a local partner to undertake an appropriate market entry strategy. High tariffs in many sectors remain an impediment to market access. While Thailand’s average applied most favoured nation (MFN) rate averaged 10.7% in 2014, ad valorem tariffs can be as high as 50 to 80%, and the ad valorem equivalent of some specific tariffs (charged mostly on agricultural products) is even higher. About one-third of Thailand’s MFN tariff schedule involves duties of less than 5%, and almost 30% of tariff lines are MFN duty free, including for products such as chemicals, electronics, industrial machinery, and paper. Thailand has bound all tariffs on agricultural products in the WTO, but only approximately 70% of its tariff lines on

industrial products. The highest ad valorem tariff rates apply to imports competing with locally produced goods, such as automobiles and automotive parts, motorcycles, beef, pork, poultry, tea, tobacco, flowers, wine, beer and spirits, and textiles and apparel. Corruption and lack of transparency in government procurements are major concerns for U.S. companies. Where corruption is suspected during the bidding process, government agencies and state enterprises reserve the right to accept or reject any or all bids at any time and may also modify the technical requirements. This allows considerable leeway for government agencies and state-owned enterprises to manage procurements, while denying bidders recourse to challenge procedures. There are frequent allegations that the Thai government makes changes to technical requirements for this purpose during the course of procurements. Despite a Thai government commitment to transparency in government procurement, U.S. companies and the Thai media continue to report allegations of irregularities. Thailand is not party to the World Trade Organization Agreement on Government Procurement; it obtained observer status in June 2015. Customs law in Thailand does not fulfil the standards established by The International Convention on the Simplification and Harmonization of Customs Procedures, otherwise known as “the Kyoto Convention.” Major problem areas include Thailand’s Customs Penalty Regime and Customs Valuation Procedures. The penalty for undervaluing imports into Thailand, even if done through negligence or by mistake, can be accompanied by a prison sentence of up to ten years. The system is incentivized by the distribution of rewards from these penalty payments to customs officials involved in the investigation

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Market Challenges

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of each case. Additionally, the procedure for determining “Customs Value” remains opaque as the valuation methodologies, determined by Ministerial Regulations, are subject to frequent change. Confusion over the guidelines can lead to increased risk of misinterpretation and misapplication of goods valuation methods. U.S. businesses operating in Thailand should be aware that the government recently amended its Civil Procedure Code to include class-action lawsuit provisions. This increases rule of law and consumer protection in Thailand, but may leave some businesses at higher risk. This may result in higher insurance premiums, especially for small businesses. The regulatory environment protecting intellectual property in Thailand is at times difficult to navigate. Patent registration can be a lengthy process, sometimes requiring several years. Patent and trademark infringement is common in Thailand. U.S. companies have successfully protected their intellectual property through litigation in the Thai courts, but these cases can be costly and time-consuming. Counterfeit goods continue to predominate in Thailand, contributing to the country’s continued status as a Priority Watch List country in the 2016 Special 301 Report by the Office of the U.S. Trade Representative. While counterfeiting of hard goods such as DVDs, CDs, and apparel remains a problem, recent widespread usage of the internet and mobile devices in Thailand has resulted in a large increase in online pirated goods such as camcorder-recorded movies and pirated software. More information regarding intellectual property rights challenges in Thailand can be found in Chapter Four under “Protecting your Intellectual Property Rights.”

Market Opportunities Thailand maintains an open, market-oriented economy, and encourages foreign direct investment as a means of promoting economic development, employment, and technology transfer. Thailand continues to be a prominent destination for foreign direct investment, and many U.S. multinational and small and medium-sized companies alike have invested successfully in the country. Thailand continues to welcome investment from all countries and seeks to avoid dependence on any one country as a source of investment. Thailand’s economic growth has created opportunities for U.S. companies in a number of infrastructure sectors including electrical power, telecommunications, and renewable energy. Thai consumers are also creating opportunities for new sales for U.S. medical products, automotive accessories, agricultural equipment and chemicals, cosmetics, food supplements, outdoor recreation equipment, franchising and educational services among others. Thailand also continues to look for U.S. suppliers of aerospace and defense equipment, broadcast equipment, food processing, packaging equipment, and environmental technologies.

Market Entry Strategy Partnering with a local agent or distributor is the most effective way to enter the Thai market and reach potential Thai buyers. The agent or distributor can facilitate and expedite market entry with their extensive market knowledge and established distribution networks and relationships with key business and government officials. The Commercial Section at the U.S. Embassy in Bangkok provides a series of customized business development services to assist U.S. firms planning to enter or grow their presence in the market.

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Political and Economic Environment

U.S. - THAILAND RELATIONS | The United States and Thailand established relations in 1832 and signed a Treaty of Amity and Commerce in 1833, formalizing diplomatic relations. An interim military government has ruled Thailand, a constitutional monarchy, since a May 2014 military coup which deposed the then-elected civilian government. The United States has urged the early restoration of elected civilian government and return to democracy through elections. Over the decades, Thai democracy has been interrupted by military coups and rule, and civic and political unrest. Thailand is a key U.S. security ally in Asia, and the country’s stability and growth are important to the maintenance of peace in the region. Since World War II, the United States and Thailand have significantly expanded diplomatic, security, and commercial relations. The United States and Thailand are among the signatories of the 1954 Manila Pact of the former Southeast Asia Treaty Organization (SEATO). Despite the dissolution of the SEATO in 1977, the Manila Pact remains in force and, together with the Thanat-Rusk communiqué of 1962 and the 2012 Joint Vision Statement for the Thai-U.S. Defense Alliance, constitutes the basis of U.S. security commitments to Thailand. In 2003, the United States designated Thailand a Major Non-NATO Ally. U.S. PARTNERSHIP WITH THAILAND | The United States partnership with Thailand stretches beyond a bilateral relationship with

an impact on the broader region. The partnership spans the areas of trade, science and technology, wildlife trafficking, public health, education, cultural exchange, law enforcement, and security cooperation. Ongoing U.S. support is geared towards strengthening Thai efforts to reform the criminal justice system, promoting good governance through democracy and civil society activities, and investing in people through humanitarian assistance for displaced persons and control and prevention of infectious diseases and emerging pandemic threats. The United States also encourages Thailand’s ongoing active contributions to regional and global security, as well as supports Thailand’s efforts to assist lesser developed countries through the Lower Mekong Initiative (LMI). Thailand and the United States have longstanding cooperation in international law enforcement efforts. The United States and Thailand work closely together and with the United Nations on a broad range of programs to halt illicit trafficking and other criminal activity. Thailand has received U.S. military equipment, essential supplies, training, and assistance in the construction and improvement of facilities and installations for much of the period since 1950. As part of their mutual defense cooperation, Thailand and the United States have developed a joint military exercise program, which engages all the services of each nation and has averaged 40 joint exercises per year. The United States has scaled back military engagements with Thailand following the May 2014 coup and has urged a return to civilian rule and democracy to forestall further negative impact on the U.S.-Thai security relationship. The U.S. Agency for International Development (USAID), through its Regional Development Mission for Asia in Bangkok, supports regional, transnational, and bilateral

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For a list of professional service providers in the Thai marketplace that can assist U.S. companies in the assessment, completion, and/or financing of export transactions see: (http:// www.export.gov/thailand/bsp/).

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programs. These programs include work on the responsible use of natural resources; control and prevention of infectious diseases and emerging pandemic threats; prevention of human and wildlife trafficking; resolution of political conflict and increased citizen participation in political processes; and the achievement of an integrated Association of Southeast Asian Nations (ASEAN) community by the end of 2015. U.S. Peace Corps Volunteers, active in Thailand continuously since 1963, focus on primary education and youth development. Education Volunteers support English education through teacher collaboration, and community service. Since 2013, Peace Corps Volunteers have also worked to promote life skills and leadership, reproductive health, and civic engagement and volunteering. BILATERAL ECONOMIC RELATIONS | The United States is Thailand’s third-largest bilateral trading partner, after Japan and China, with total bilateral trade valued at more than US$44 billion in 2014. The United States is also one of the largest investors in Thailand, with over US$14 billion in foreign direct investment. Leading Thai imports from the United States include machinery, aircraft, gold, optic and medical goods, and agricultural products. Thai exports to the United States include machinery, rubber, prepared meat, shrimp and tuna, jewellery, and other agricultural products. The 1966 Treaty of Amity and Economic Relations, the most recent iteration of the 1833 Treaty of Amity and Commerce, facilitates U.S. and Thai companies’ economic access to one another’s markets. The two countries also have agreements addressing sales of agricultural commodities and investment guarantees and reconvened the Joint Council in 2013 under the Trade and Investment Framework Agreement to advance bilateral trade. In 2013,

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the United States and Thailand signed an historic agreement on science and technology cooperation that enshrines robust protections for intellectual property while facilitating increased joint research programs, government to government collaboration, and private sector investment and technology transfer. The Thai-U.S. Creative Partnership, active since 2011, builds on existing public-private and intergovernmental relationships, seeking to highlight innovative industry, identify new opportunities for collaborative ingenuity between the two countries, and spur increased productivity. T H A I L A N D ’ S M E M B E R S H I P I N I N T E R N AT I O N A L O R G A N I Z AT I O N S |

Thailand is a founding member of ASEAN and strongly supports its efforts to promote economic development, social integration, and stability throughout the region. Thailand and the United States belong to a number of the same international organizations, including the United Nations, ASEAN Regional Forum, Asia-Pacific Economic Cooperation forum, International Monetary Fund, World Bank, and World Trade Organization. Thailand is also a Partner for Cooperation with the Organization for Security and Cooperation in Europe and an Organization of American States observer. BILATERAL REPRESENTATION | The U.S. Ambassador to Thailand is Glyn Davies; other principal embassy officials are listed in the Department’s Key Officers List (http://www. state.gov/documents/organization/111812.pdf). The United States also operates a Consulate General in Chiang Mai. Thailand maintains an embassy (http:// thaiembdc.org/) in the United States at 1024 Wisconsin Ave. NW, Washington DC 20007 (tel. 202-944-3600) and Consulates in several other cities. ♦

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DOING BUSINESS IN VIETNAM “Let’s work together to create real opportunity and prosperity for all of our people.” President Barack Obama May 24, 2016, Hanoi, Vietnam

The U.S.-Vietnamese commercial relationship has grown dynamically since the United States lifted its trade embargo against Vietnam in 1994 and the two countries renewed diplomatic relations in 1995. The U.S. is now Vietnam’s largest export market and a major source of foreign direct investment, helping fuel Vietnam’s remarkable economic growth. Conversely, in 2015, Vietnam was the United States’ fastest growing export market, demonstrating the increasing demand for U.S. technologies and goods. This populous country of over 90 million consumers, with a positive view towards the U.S., exhibits the demographics needed for continuous growth over the next twenty years, and is a rising star among Asia’s bustling economies. U.S. firms, however, have been slow to take advantage of the growing opportunities that Vietnam presents, to the benefit of regional competition in Asia. This Country Commercial Guide is intended to provide an introduction to doing business in Vietnam and provide the foundation necessary for a firm to take the initial steps needed to pursue business here.

Market Overview Top 5 reasons why U.S. companies should consider exporting to Vietnam: 1.

Strong GDP growth expected to continue for medium term.

The fastest-growing middle and affluent class in the region, with young consumers who are among the most optimistic in the world providing the right demographics for growth.

Real income increasing, as is receptivity to U.S. products and services.

Large population of over 90 million consumers.

Political stability in a region known for its uncertainty.

Over the past 25 years, since economic reforms were initiated in the late 1980s, Vietnam’s annual economic growth rate of 5.3% has been second only to China in Asia. Vietnam has rebounded from the doldrums of the last decade’s global financial crisis as the country has regained its lustre as an investment destination and export market. Last year closed with the economy back in full swing, buoyed by GDP growth of 6.7%. Vietnam started 2016 with high expectations, as experts predicted continued growth of 6.7%, second only to India. However, low oil prices and a

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drought that has devastated parts of the agriculture sector in the south have economists anticipating that the country may fail in meeting this target. Taking a long-term perspective, a Pricewaterhouse Coopers study forecasts that Vietnam is expected to have the second strongest average GDP growth between now and 2050, exceeding 5% a year on average. The risks posed by inflation that peaked in 2011 at 18.8% have been reigned in as the Government of Vietnam (GVN) tightened macroeconomic policy and balanced growth targets with price stability measures. Inflation rate in 2015 was a low 0.6%. The 2001 U.S.–Vietnam Bilateral Trade Agreement (BTA) transformed the bilateral commercial relationship between our two nations and accelerated Vietnam’s entry into the global economy, with Vietnam joining the WTO in January of 2007. Since the BTA, bilateral trade increased from US$2.9 billion in 2002 to over US$45 billion in 2015. Passage of the Trans-Pacific Partnership (TPP) Agreement, which both countries signed in February 2016, but have yet to ratify, will further accelerate our trade relationship. U.S. exports to Vietnam grew by 23.3% to US$7.1 billion in 2015. This was by far the largest increase out of the U.S.’s top 50 export markets. During the same period, Vietnam’s exports to the U.S. increased 24.2% to US$38 billion, resulting in a US$30.9 billion bilateral trade deficit with Vietnam. U.S. exports of agricultural products account for nearly half of total exports to Vietnam. Industrial inputs continued to see steady growth as Vietnam continues to import machinery, chemicals, instruments and software to support its growing industrial sector. Over US$900 million (roughly 13%) of U.S. exports were represented by aircraft, as Boeing delivered several 787s to Vietnam

Airlines in 2015. According to the State Bank of Vietnam, foreign exchange reserves stood at about US$40 billion, up from US$35 billion at the end of 2014. In February 2016, Vietnam joined the United States and ten other nations in signing the Trans-Pacific Economic Partnership (TPP), a high-standard, 21st century Asia-Pacific free trade agreement. Full implementation of the TPP with Vietnam as a member would provide an increasingly favorable environment for American businesses to enter and expand in the market.

Market Challenges The evolving nature of regulatory regimes and commercial law in Vietnam, combined with overlapping jurisdiction among government ministries, often results in a lack of transparency, uniformity and consistency in government policies and decisions on commercial projects. Project timelines often exceed initial projections. While Vietnam’s anti-corruption law is considered amongst the best legal frameworks in Asia for anti-corruption, implementation remains problematic. Corruption and administrative red tape within the government has been a vast challenge for governmental consistency and productivity and for foreign companies doing business in Vietnam. Vietnam ranked 112 (out of 168) on Transparency International’s 2015 Corruption Perceptions Index. In comparison, regional neighbors scored the following: Philippines 95, Indonesia 88, China 83, Thailand 76, and Malaysia 54. 55% of respondents felt that public officials and civil servants were corrupt or extremely corrupt. Many firms operating in Vietnam, both

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Market Opportunities Continued strong economic growth, ongoing reform, and a large population of 93 million—half of which are under the age of thirty—have combined to create a dynamic and quickly evolving commercial environment in Vietnam. Sales of equipment, technologies and consulting, and management services associated with growth in Vietnam’s industrial and export sectors and implementation of major infrastructure projects continue to be a major source of commercial activity and interest for U.S. firms. Per capita GDP was estimated to be US$5,370 in 2014 (in 2011 PPP). The government’s recently stated goal is to increase this to at least US$18,000 by 2035. With disposable income levels in major urban areas four to five times the national average, significant opportunities in the consumer and services sectors are fast emerging. A 2013 study by the Boston Consulting Group predicted that Vietnam’s middle and affluent class will double by 2020, exceeding 30 million consumers. Telecommunications, information technology, oil and gas exploration, power generation, transportation infrastructure construction, environmental project management and technology, aviation, and education will continue to offer the most promising opportunities for U.S. companies over the next few years as infrastructure needs continue to expand with Vietnam’s pursuit of rapid economic development. Health care will also be a growing sector as the government expands programs and an increasingly wealthy population spends more on medical treatment. The GVN plays a significant role in the economy, with state-owned enterprises (SOEs) making up 35% of GDP. The GVN’s strategy to “equitize” (partially privatize) SOEs in all

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DOING BUSINESS IN VIETNAM

foreign and domestic, found ineffective protection of intellectual property to be a significant challenge. Piracy rates for software were estimated to be 81% 2014, a small improvement from 92% ten years earlier. “Tied” official development assistance (ODA), in addition to corruption, continues to be a significant challenge for U.S. firms bidding on infrastructure projects. Some companies have successfully partnered with Japanese companies in order to be eligible to bid on Japanese ODA funded projects, which represents the largest source of foreign ODA. While Vietnam has reduced tariffs on many products in line with its WTO commitments, high tariffs on selected products remain. The U.S. industry has identified a range of products, which includes agricultural products, processed foods and nutritional supplements, which has significant export growth potential if Vietnam’s tariffs could be reduced further. Additionally, the Ministry of Finance has recently increased some tariffs as a means of raising additional state revenue, sometimes in contradiction to WTO commitments. Investors often run into poorly developed infrastructure, high start-up costs, arcane land acquisition and transfer regulations and procedures, and a shortage of skilled personnel. Vietnam ranked 90th (of 189) in the World Bank’s “Ease of Doing Business” report for 2015. Though this is a drop from its ranking of 78th in 2014, Vietnam’s actual score improved over the last year, with the World Bank noting improvements in several factors and placing Vietnam among the 25 economies that improved the most. Lack of financial transparency and poor corporate disclosure standards add to the challenges U.S. companies face in performing due diligence on potential partners and clients.

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sectors of the economy is slowly moving forward. While the GVN will maintain majority ownership in the largest and most sensitive sectors of the economy, which includes energy, telecommunications, aviation, and banking, the equitization process could present opportunities for U.S. companies. Key U.S. agricultural inputs to production such as hardwood lumber, cotton, hides, skins and feed ingredients will also continue to play a key role in helping fuel Vietnam’s export led manufacturing strategy. Demand continues to also grow for consumption oriented products such as meat, dairy and fresh and dried fruits.

Market Entry Strategy U.S. companies preparing to enter the Vietnamese market must plan strategically and be persistent and consistent with faceto-face follow-up. It can take up to one or two years to make a successful sale into this market. Building relationships is important. For the most part, U.S. companies entering the Vietnamese market will need to consider two marketing efforts; one for targeting the northern part of the country, which has a higher concentration of government ministries and regulatory agencies, and one for the south, which is the dominant industry hub. The two markets also differ in terms of consumer behavior and preferences. To enter or expand in Vietnam, U.S. businesses may do so indirectly through the appointment of an agent or distributor. U.S. companies new to Vietnam should conduct sufficient due diligence on potential local agents/distributors to ensure they possess the requisite permits, facilities, manpower and capital. Firms seeking a direct presence in Vietnam should establish a commercial operation utilizing the following options: first, a

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representative office license; second, a branch license; and lastly, a foreign investment project license under Vietnam’s revised Foreign Investment Law. Vietnam disbursed about US$5.6 billion in ODA disbursement in 2014, increasing 9% year-on-year. Sectors prioritized for ODA funding are primarily in infrastructure construction and modernization and human resource development. U.S. companies doing business in transportation, telecommunications, energy, environmental/water, civil aviation, financial services and other infrastructure sectors are advised to develop core strategies and capabilities for bidding on ODA (World Bank, Asian Development Bank, USAID) projects.

Political and Economic Environment

U.S. - VIETNAM RELATIONS | The United States established diplomatic relations with Vietnam in 1950, following its limited independence within the French Union; France continued to oversee Vietnam’s defense and foreign policy. In 1954, Vietnamese nationalists fighting for full independence defeated France, and the now-divided Vietnam entered into two decades of civil war. The United States did not recognize North Vietnam’s government, maintaining the U.S. Embassy in South Vietnam, supporting the South against the North, and entering the war on the South’s side. In 1975, the United States closed its Embassy and evacuated all Embassy personnel just prior to South Vietnam’s surrender to North Vietnamese forces. Vietnam was reunified under communist rule. In 1978, it invaded Cambodia following border clashes. U.S. policy held that normalization of its relations with Vietnam be based on withdrawal of the Vietnamese military from

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counternarcotics. The United States and Vietnam hold a regular dialogue on human rights. The United States considers achieving the fullest possible accounting of Americans missing and unaccounted for in Indochina to be one of its highest priorities with Vietnam. The Joint POW/MIA Accounting Command conducts four major investigation and recovery periods a year in Vietnam, during which specially trained U.S. military and civilian personnel investigate and excavate hundreds of cases in pursuit of the fullest possible accounting. Vietnamese-led recovery teams have become regular participants in these recovery missions since August 2011. Vietnam remains heavily contaminated by explosive remnants of war, primarily in the form of unexploded ordnance (UXO) including extensive contamination by cluster munitions dating from the war with the United States. The United States is the largest single donor to UXO/mine action in Vietnam, and the two countries signed a memorandum of understanding on continued unexploded ordnance cooperation in December 2013. Legacy issues such as UXO/demining, MIA accounting, and Agent Orange (a defoliant used by U.S. forces) provided the foundations for the U.S.-Vietnam defense relationship. Mutual interest in addressing the challenges of humanitarian assistance/disaster relief, search and rescue, and maritime security have furthered this defense relationship, with Vietnam participating in U.S.-provided capacity-building training in these areas. Many of these topics are discussed in annual bilateral defense discussions. In 2011, the U.S. Department of Defense and the Vietnamese Ministry of National Defense signed a landmark Memorandum of Understanding during the Defense Policy Dialogue that will further

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DOING BUSINESS IN VIETNAM

Cambodia as part of a comprehensive political settlement and on continued cooperation on prisoner of war/missing in action (POW/MIA) issues and other humanitarian concerns. In 1995, the United States announced the formal normalization of diplomatic relations with Vietnam. In 2015 the United States and Vietnam mark the 20th anniversary of diplomatic relations. The United States wants a strong, independent, and prosperous Vietnam that respects human rights and the rule of law. U.S. relations with Vietnam have become increasingly cooperative and broad-based in the years since political normalization. In July 2013, Presidents Obama and Sang launched the U.S.-Vietnam Comprehensive Partnership, an overarching framework for advancing the bilateral relationship. The new partnership advances key initiatives to bolster U.S.-Vietnam relations and underscores the enduring U.S. commitment to the Asia-Pacific rebalance. The partnership provides a mechanism to facilitate cooperation in areas including political and diplomatic relations, trade and economic ties, science and technology, education and training, environment and health, war legacy issues, defense and security, protection and promotion of human rights, and culture, sports, and tourism. Vietnam is a partner in non-proliferation regimes, including the Global Initiative to Combat Nuclear Terrorism, and takes advantage of expertise, equipment, and training available under the Export Control and Related Border Security program. With the support of the U.S. Department of Energyâ&#x20AC;&#x2122;s Megaports Initiative, Vietnam is installing radiation detection equipment to help it detect and identify weapons of mass destruction and their components at the commercial port of Cai Mep-Vung Tau. The United States and Vietnam have signed an agreement on

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advance bilateral defense cooperation. In December 2013, Secretary of State John Kerry announced an initial commitment of new regional and bilateral assistance to advance maritime capacity building in Southeast Asia, including up to US$18 million in new assistance to Vietnam to enhance the capacity of coastal patrol units to deploy rapidly for search and rescue, disaster response, and other activities. This assistance directly responds to priorities identified in the Joint Minutes on Vietnam and U.S. Coast Guard Maritime Cooperation signed in October 2013 by the Vietnamese and U.S. Coast Guard Commandants. In October 2014, in keeping with U.S. efforts to integrate Vietnam fully into regional maritime security initiatives, the State Department took steps to allow for the future transfer to Vietnam of defense articles related to maritime security. This easing of the lethal weapons sales ban policy supports Vietnam’s efforts to improve its maritime domain awareness and maritime security capabilities. U.S. ASSISTANCE TO VIETNAM | In the 1980s, Vietnam introduced market reforms, opened up the country for foreign investment, and improved the business climate. It became one of the fastest-growing economies in the world. Vietnam’s rapid economic transformation and global integration has lifted millions out of poverty and has propelled the country to the ranks of lower-middle-income status. U.S. assistance in Vietnam focuses on consolidating gains to ensure sustainable economic development while promoting good governance and the rule of law. Assistance projects aim to deepen regulatory reforms, improve the capacity and independence of Vietnam’s judicial and legislative bodies, and promote more effective public participation in the law and regulation-making processes.

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U.S. assistance also seeks to support Vietnam’s response to climate change and other environmental challenges, including remediating Agent Orange/dioxin contamination, strengthening the country’s health and education systems, and assisting vulnerable populations. BILATERAL ECONOMIC RELATIONS | Since entry into force of the U.S.-Vietnam bilateral trade agreement in 2001, trade between the two countries and U.S. investment in Vietnam have grown dramatically. The United States and Vietnam have concluded a trade and investment framework agreement; they also have signed textile, air transport, and maritime agreements. The two countries, along with other Asia-Pacific nations, are part of the Trans-Pacific Partnership negotiations, with the goal of concluding a high-standard regional free trade agreement. U.S. exports to Vietnam include agricultural products, machinery, yarn/fabric, and vehicles. U.S. imports from Vietnam include apparel, footwear, furniture and bedding, agricultural products, seafood, and electrical machinery. U.S.-Vietnam bilateral trade has grown from US$451 million in 1995 to nearly US$35 billion in 2014. U.S. exports to Vietnam were worth US$5.5 billion in 2014, and U.S. imports in 2013 were worth US$29.7 billion. A key priority in 2015 to build on our economic progress is to conclude the Trans-Pacific Partnership (TPP) trade agreement. This high-standard trade agreement would provide the United States, Vietnam, and ten other member states a level playing field to compete in markets that together account for almost 40% of global GDP. Furthermore, in October 2014, an agreement between the United States and Vietnam came into force on the peaceful uses of nuclear activity, known as the 123 Agreement.

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the United States belong to a number of the same international organizations, including the United Nations, ASEAN Regional Forum, Asia-Pacific Economic Cooperation forum, International Monetary Fund, World Bank, and World Trade Organization. BILATERAL REPRESENTATION | The U.S. Ambassador to Vietnam is Ted Osius (http:// www.state.gov/r/pa/ei/biog/235132.htm). He was confirmed by Congress on November 17, 2014 and presented his credentials to President Sang on December 16, 2014. Other principal embassy officials are listed in the Department’s Key Officers List. Vietnam maintains an embassy in the United States at 1233 20th Street, NW, #400, Washington DC 20036; tel.: 202-861-0737. ♦

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V I E TNA M’S M E M B E R SH I P I N I NTE R NATIONAL ORGANIZATIONS | Vietnam and

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U.S. PORTS AND STATES REPRESENTED IN SINGAPORE Georgia Port Authority 186 Pandan Loop, Singapore 128376 Tel: +65-6395-4545, +65-6309-3420 Fax: +65-6379-5102 Mobile: +65-9662-0758 Email: Peter.Sak@wilhelmsen.com Website: www.wilhelmsen.com Contact Person: Mr. Peter Sak, Maritime Logistics Manager

Port of Long Beach 20 Harbour Drive, #05-03 PSA Vista, Singapore 117612 Tel: +65-6836-6776 Fax: +65-6733-0768 Email: Mike.Jr@collyer.biz Website: www.collyer.biz Contact Person: Mr. Michael Jr. Ong, General Manager

Commonwealth of Pennsylvania – South East Asia Office Commonwealth of Virginia – In-Market Trade Consultant, South East Asia State of Iowa – South East Asia Office 1003 Bukit Merah Central #05-06, Inno Centre, Singapore 159836 Tel: +65-6225-8667 Fax: +65-6271-9791 Email: skmenon@orrisa-international.com Website: http://www.orissa-international.com/ Contact Person: Mr. Sarath Kumar Menon, Director

State of Missouri – Singapore Trade & Investment Office 137 Market Street #16-01, Singapore 048943 Tel: +65-6922-0560 Mobile: +65-9185-6932 Email: Missouri-Singaporeoffice@apcoworldwide.com Website: www.ExportMissouri.mo.gov Contact Person: Amanda Douglas, Director

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AMERICAN COMMUNITY ORGANIZATIONS IN SINGAPORE American Association of Singapore (AAS) 10 Claymore Hill, Singapore 229573 Tel: +65-6738-0371 Fax: +65-6738-3648 Email: aas@aasingapore.com Website: http://www.aasingapore.com/

American Association of Singapore – Career Resource Center of Expatriates (CRCE) 10 Claymore Hill, Singapore 229573 Tel: +65-6738-0371 Fax: +65-6738-3648 Email: crce.info@aasingapore.com Website: http://www.aasingapore.com/about-crce/

American Women’s Association (AWA) AWA office, The American Club 10 Claymore Hill, Singapore 229573 Tel: +65-6734-4895 Fax: +65-6733-6190 Email: office@awasingapore.org Website: http://www.awasingapore.org/

The American Club

SACAC Sports Office – Located at the Singapore American School 40 Woodlands Street 41, H216, Singapore 738547 Tel: +65-6363-6454 Fax: +65-6368-9757 Email: sports@sacac.com Website: http://www.sacac.com/

Singapore American Newspaper (SAN) 10 Claymore Hill, Singapore 229573 Tel: +65-6734-0371 Fax: +65-6738-3648 Email: communications@aasingapore.com Website: http://www.aasingapore.com/ singapore-american-newspaper/

The American Chamber of Commerce in Singapore (AmCham Singapore) 1 Scotts Road, Shaw Centre, #23-03/04/05 Singapore 228208 Tel: +65-6597-5730 Fax: +65-6732-5917 Email: contact@amcham.org.sg Website: http://www.amcham.org.sg/

United States Education Information Centre

10 Claymore Hill, Singapore 229573 Tel: +65-6737-3411 Fax: +65-6732-8308 Email: info@amclub.org.sg Website: http://www.amclub.org.sg/

Singapore American Community Action Council (SACAC) SACAC Counseling Office – Located at the American Club 10 Claymore Hill, Singapore 229573 Tel: +65-6733-9249 Fax: +65-6733-9321 Email: admin@sacac.sg Website: http://www.sacac.sg

25 Paterson Rd, Singapore 238510 Tel: +65-6223-4566 Fax: +65-6223-4533 Email: inquiry@useic.org Website: http://useic.org/

U.S. – ASEAN Business Council Inc. 100 Beach Road #22-04/05, Shaw Tower, Singapore 189702 Tel: +65-6339-8885 Fax: +65-6339-1982 Email: mmichalak@usasean.org Website: https://www.usasean.org/countries/ singapore/

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U.S. COMMERCIAL SERVICE OFFICES IN THE ASIA PACIFIC REGION Australia U.S. Commercial Service – Canberra Tel: +61-2-9373-9205 Fax: +61-2-9221-0573 Email: Office.Australia@trade.gov Commercial Specialist – Dr. Doug Hartley Street Address: American Embassy Attn: U.S. Commercial Service Moonah Place Yarralumla ACT 2600 AUSTRALIA U.S. Mailing Address: U.S. Department of State Attn: U.S. Commercial Service 7800 Canberra Place Washington DC 20521-7800

U.S. Commercial Service – Perth Tel: +61-8-6144-5149 Fax: +61-8-9231-9444 Email: Office.Australia@trade.gov Commerce Specialist - Ms. Donna Carter Street Address: American Consulate General US Commercial Service Level 4, 16 St. Georges Terrace Perth WA 6000 Australia U.S. Mailing Address: American Consulate General US Commercial Service 4160 Perth Pl Dulles VA 20189-4160

U.S. Commercial Service – Sydney Tel: +61-2-9373-9205 Fax: +61-2-9221-0573 Email: Office.Australia@trade.gov Deputy Senior Commercial Officer – Ms. Karen Ballard

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Street Address: American Consulate General US Commercial Service Level 59, MLC Centre 19-29 Martin Place Sydney NSW 2000 U.S. Mailing Address: American Consulate General US Commercial Service 4150 Sydney Pl Washington DC 20521-4150 http://www.export.gov/australia

Brunei American Embassy, Bandar Seri Begawan Tel: +673-238-4616 Fax: +673-238-4604 Email: BSBCommercial@state.gov Political, Economic, and Consular Chief - Mr. Fausto P. DeGuzman Street Address: Simpang 336-52-16-9 Jalan Duta BC4115 Negara Brunei Darussalam Postal Address: P.O. Box 2991 Bandar Seri Begawan BS8675 Negara Brunei Darussalam U.S. Mailing Address: Embassy of United States of America Unit 4280, Box 40 DPO, AP 96507-0040

Burma U.S. Commercial Service - Rangoon Tel: +95-1-536-509 ext 4435 Fax: +95-1-511-069 Email: Manoj.Desai@trade.gov Senior Commercial Officer - Mr. Manoj Desai

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Street Address: American Consulate General Guangzhou US Commercial Service No.43 Hua Jiu Road, Zhujian New Town Guangzhou, 510623 China

U.S. Mailing Address: 4250 Rangoon Place Department Of State Washington, DC 20521-4250

U.S. Mailing Address: American Consulate General Guangzhou US Commercial Service Department of State 4090 Guangzhou Place Washington, DC 20521-4090

China U.S. Commercial Service - Beijing

U.S. Commercial Service – Shanghai

Tel: +86-10-8531-3000 Fax: +86-10-8531-4343 Email: Office.Beijing@trade.gov Senior Commercial Officer - Ms. Sarah Kemp

Tel: +86-21-6279-7630 Fax: +86-21-6279-7639 Email: Office.Shanghai@trade.gov Principal Commercial Officer - Mr. Cameron Werker

Street Address: U.S. Commercial Service – Beijing No. 55 An Jia Lou Road, Chaoyang District Beijing 100600, China

Street Address: Shanghai Center Suite 631, East Tower 1376 Nanjing Xi Lu Shanghai, China 200040

U.S. Mailing Address: American Embassy Beijing – FCS Unit 7300 Box 0475 DPO AP 96521

U.S. Mailing Address: Foreign Commercial Service 4100 Shanghai Place Washington, DC 20521-4100

U.S. Commercial Service - Chengdu

U.S. Commercial Service - Shenyang

Tel: +86-28-8558-3992 Fax: +86-28-8558-9221 Email: Office.Chengdu@trade.gov Commercial Officer - Mr. Eric Hsu

Tel: +86-24-2322-1198 Fax: +86-24-2322-2206 Email: Office.Shengyang@trade.gov Principal Commercial Officer - Mr. Taylor Moore

Street Address: No. 4, Lingshiguan Road Section 4, Renmin Nan Lu Chengdu, China 610041

Street Address: 52 Shi Si Wei Road, Heping District Shenyang, 110003

U.S. COMMERCIAL SERVICE OFFICES IN THE ASIA PACIFIC REGION

Street Address: American Embassy US Commercial Service 110 University Ave Kamayut Township Rangoon, Burma

U.S. Mailing Address: Foreign Commercial Service Unit 4110 Box 7021 DPO, AP 96521

U.S. Mailing Address: Foreign Commercial Service 4080 Chengdu Place Washington DC. 20521-4080

U.S. Commercial Service - Wuhan

U.S. Commercial Service - Guangzhou Tel: +86-20-3814-5000 Fax: +86-20-3814-5353 Email: Office.Guangzhou@trade.gov Principal Commercial Officer - Mr. Darrel Ching

Tel: +86-27-8555-7791 Fax: +86-27-8555-7761 Email: Jing.Wang@trade.gov Commercial Specialist – Mr. Wellington Chu Street Address: U.S. Commercial Service – Wuhan 47F New World International Trade Tower I No. 568, Jianshe Avenue Hankou, Wuhan, 430022, China

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U.S. COMMERCIAL SERVICE OFFICES IN THE ASIA PACIFIC REGION

U.S. Mailing Address: American Embassy Wuhan – FCS PSC 461 Box 50 FPO AP 96521-0002

Street Address: J.W. Marriott Hotel, 9th Floor 24/1, Vittal Mallya Road, Ashok Nagar Bengaluru 560 001, India

http://www.export.gov/china

U.S. Mailing Address: Department of State (Bengaluru) 6260 Chennai PL Washington, DC 20521-6260

Hong Kong U.S. Commercial Service- Hong Kong Tel: +852-2521-1467 Fax: +852-2845-9800 Email: Office.HongKong@trade.gov Senior Commercial Officer - Mr. James Cunningham Street Address: American Consulate General U.S. Commercial Service 26 Garden Road Central Hong Kong U.S. Mailing Address: Foreign Commercial Service 8000 Hong Kong Place Department of State Washington D.C. 20521-8000 http://www.export.gov/hongkong

India U.S. Commercial Service - Ahmedabad Tel: +91-79-2656-5210 Fax: +91-79-2656-0763 Email: Office.Ahmedabad@trade.gov Commercial Specialist - Ms. Sangeeta Taneja Street Address: 5th Floor, Radisson Blu Hotel, Panchvati Cross Road Off. C G Road, Ambawadi - 380 006 U.S. Mailing Address: US Department of State (Ahmedabad) 6240 Mumbai Place Washington DC 20521-6240

U.S. Commercial Service – Bangaluru Tel: +91-80-2220-6401 Fax: +91-80-2220-6405 Email: Office.Bengaluru@trade.gov Senior Commercial Specialist - Ms. Manjushree Phookan

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U.S. Commercial Service – Chennai Tel: +91-44-2857-4477 Fax: +91-44-2857-4212 Email: Office.Chennai@trade.gov Principal Commercial Officer - Mr. John Fleming Street Address: 220 Anna Salai Chennai 600 006, India U.S. Mailing Address: Department of State 6260 Chennai PL Washington, DC 20521-6260

U.S. Commercial Service – Hyderabad Tel: +91-40-2330-5000; 91-40-2330-4025 Fax: +91-40-2330-0130 Email: Office.Hyderabad@trade.gov Commercial Assistant – Annette D’silva Street Address: # 152, Hotel Taj Deccan, Banjara Hills Hyderabad - 500 034, India U.S. Mailing Address: Principal Commercial Officer - John Fleming U.S. Department of State (Hyderabad) 6230 Hyderabad PL Washington, DC 20521-6230

U.S. Commercial Service – Kolkata Tel: +91-33-3984-6402 Fax: +91-33-3984-6353 Email: Office.Kolkata@trade.gov Principal Commercial Officer - Mr. Jonathan Ward Street Address: The American Center 38-A, Jawaharlal Nehru Road Kolkata (Calcutta) 700 071, India U.S. Mailing Address: Department of State (Kolkata) 6250 Kolkata PL Washington, DC 20189-6250

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

Tel: +91-22-2672-4000 Fax: +91-22-2672-4400 Email: Office.Mumbai@trade.gov Principal Commercial Officer - Mr. Gregory Taevs Street Address: US Commercial Service American Consulate General C-49, G-Block, Bandra Kurla Complex (BKC) Bandra (E), Mumbai - 400 051, India U.S. Mailing Address: Department of State (Mumbai) 6240 Mumbai PL Washington DC 20521-6240

U.S. Commercial Service - New Delhi Tel: +91-11-2347-2000 Fax: +91-11-2331-5172 Email: Office.Newdelhi@trade.gov Senior Commercial Officer - Mr. Patrick Santillo Street Address: The American Center 24 Kasturba Gandhi Marg New Delhi 110 001, India

http://www.export.gov/indonesia

Japan U.S. Commercial Service – Tokyo Tel: +81-3-3224-5060 Fax: +81-3-3589-4235 Email: Office.Tokyo@trade.gov Senior Commercial Officer - Mr. Andrew Wylegala Street Address: American Embassy U.S. Commercial Service 1-10-5 Akasaka, Minato-ku Tokyo 107-8420 U.S. Mailing Address: CS Tokyo U.S. Commercial Service UNIT 9800 BOX 486 DPO AP 96303-0486

U.S. Commercial Service - Osaka-Kobe Tel: +81-6-6315-5957 Fax: +81-6-6315-5963 Email: Office.Osaka-Kobe@trade.gov Principal Commercial Officer - Ms. Helen Hwang

U.S. Mailing Address: The U.S. Commercial Service Department of State 9000 New Delhi Place Washington, DC 20521-9000

Street Address: American Consulate General US Commercial Service 2-11-5 Nishitenma, Kita-Ku Osaka 530-8543

http://www.export.gov/india

Indonesia U.S. Commercial Service – Jakarta Tel: +62-21-526-2850 Fax: +62-21-526-2855 Email: Office.Jakarta@trade.gov Senior Commercial Officer - Ms. Rosemary Gallant Street Address: American Embassy US Commercial Service World Trade Center VI, 3rd Floor Jl. Jendral Sudirman Kav. 29-31 Jakarta 12920

U.S. Mailing Address: American Embassy Jakarta Unit 8129 FCS FPO AP 96520-8129

U.S. COMMERCIAL SERVICE OFFICES IN THE ASIA PACIFIC REGION

U.S. Commercial Service – Mumbai

U.S. Mailing Address: US Consulate, Osaka-Kobe US Commercial Service Unit 9800 Box 355 DPO AP 96303-0355 http://www.export.gov/japan

Korea (South) U.S. Commercial Service – Seoul Tel: +822-397-4535 Fax: +822-739-1628 Email: Office.Seoul@trade.gov Senior Commercial Officer - Mr. David Gossack

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U.S. COMMERCIAL SERVICE OFFICES IN THE ASIA PACIFIC REGION

Street Address: American Embassy U.S. Commercial Service 188, Sejong-daero, Jongno-gu Seoul 03141

U.S. Commercial Service – Wellington

U.S. Mailing Address: American Embassy U.S. Commercial Service Unit 9600 DPO AP 96209-9997

Street Address: U.S. Commercial Service American Embassy 29 Fitzherbert Terrace Thorndon, Wellington U.S. Mailing Address: American Embassy Wellington Attention: Janet Coulthart Unit 4360, Box 6000 DPO, AP 96532-6000

http://www.export.gov/southkorea

Malaysia U.S. Commercial Service - Kuala Lumpur Tel: +60-3-2168-5000 Fax: +60-3-2142-1866 Email: Office.KualaLumpur@trade.gov Senior Commercial Officer - Ms. Catherine Spillman Street Address: US Embassy Kuala Lumpur US Commercial Service 376 Jalan Tun Razak 50400 Kuala Lumpur

http://www.export.gov/newzealand

Philippines U.S. Commercial Service – Manila Tel: +632-301- 4249 Fax: +632-521-0416 Email: Office.Manila@trade.gov Senior Commercial Officer – Ms. Diane Jones

U.S. Mailing Address: US Embassy Kuala Lumpur US Commercial Service 376 Jalan Tun Razak 50400 Kuala Lumpur, Malaysia

Street Address: U.S. Commercial Service Embassy of the United States of America 1201 Roxas Boulevard Manila 0930, Philippines

http://www.export.gov/malaysia

U.S. Mailing Address: U.S. Commercial Service Unit 8600, Box 1565 DPO, AP 96515-1565

New Zealand

164

Tel: +644-462-6002 Fax: +644-473-0770 Email: Janet.Coulthart@trade.gov Commercial Specialist - Ms. Janet Coulthart

U.S. Commercial Service – Auckland

http://export.gov/philippines

Tel: +649-309-8079 Fax: +649-302-3156 Email: Dhiraj.Mani@trade.gov Commercial Specialist - Mr. Dhiraj Mani

U.S. Commercial Service – Singapore

Street Address: Citibank Building 23 Customs Street East Level 3 Auckland

Tel: +65-6476-9037 Fax: +65-6476-9080 Email: Office.Singapore@trade.gov Regional Senior Commercial Officer - Ms. Margaret Hanson-Muse

U.S. Mailing Address: U.S. Commercial Service American Consulate General/Auckland PSC 467, Box 1 FPO AP 96531-0001

Street Address: American Embassy U.S. Commercial Service 27 Napier Road Singapore 258508

Singapore

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

Street Address: American Embassy US Commercial Service GPF Witthayu, Tower A, Suite 302 93/1 Wireless Road, Pathumwan, Bangkok 10330

http://export.gov/singapore

Taiwan U.S. Commercial Service – Taipei Tel: +886-2-2720-1550 Fax: +886-2-2757-7162 Email: Office.Taipei@trade.gov Senior Commercial Officer - Ms. Ireas Cook

U.S. Mailing Address: US Commercial Service FCS Box 51 APO AP 96546 http://www.export.gov/thailand

Vietnam

Street Address: American Institute in Taiwan Suite 3207, 32nd Floor 333 Keelung Road Section 1 Taipei 110 Taiwan

U.S. Commercial Service – Hanoi

U.S. Mailing Address: Department of State 4170 AIT Taipei Place Washington, DC 20521-4170

U.S. Commercial Service – Kaohsiung

Street Address: American Embassy US Commercial Service Rose Garden Tower 170 Ngoc Khanh Street Hanoi, Vietnam

Tel: +886-7-335-5006 Fax: +886-7-338-0551 Email: Office.Kaohsiung@trade.gov Principal Commercial Officer – Ms. Sarah Fox

U.S. Mailing Address: U.S. Commercial Service 4550 Hanoi Place Washington, DC 20521-4550

Tel: +84-4-3850-5199 Fax: +84-4-3850-5064 Email: Office.Hanoi@trade.gov Senior Commercial Officer - Mr. Stuart Schaag

Street Address: 5F. No 88, Chenggong 2nd Rd. Qianzhen Dist. Kaohsiung 806 Taiwan U.S. Mailing Address: Department of State 4170 AIT Taipei Place Washington, DC 20521-4170

U.S. COMMERCIAL SERVICE OFFICES IN THE ASIA PACIFIC REGION

U.S. Mailing Address: Department of State U.S. Commercial Service Unit 4280 Singapore Place Washington DC 20521-4280

U.S. Commercial Service - Ho Chi Minh City Tel: +84-8-3520-4680 Fax: +84-8-3520-4679 / 81 Email: Office.HoChiMinhCity@trade.gov Principal Commercial Officer - Ms. Elizabeth Shieh

http://www.export.gov/taiwan

Thailand U.S. Commercial Service – Bangkok Tel: +66-2-205-5090 Fax: +66-2-255-2915 Email: Office.Bangkok@trade.gov Senior Commercial Officer - Mr. Gregory Wong

Street Address: U.S. Consulate General U.S. Commercial Service Diamond Plaza, 8F 34 Le Duan Street, District 1 Ho Chi Minh City Vietnam U.S. Mailing Address: U.S. Commercial Service 7160 Ho Chi Minh City Place Washington, DC 20521-7160 http://www.export.gov/vietnam

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U.S. DEPARTMENT OF COMMERCE: U.S. & FOREIGN COMMERCIAL SERVICE EXPORT ASSISTANCE CENTER DIRECTORY AK – Anchorage

AZ – Tucson

Ms. Debbie Franklin, USEAC Director 907-271-6237 Alaska U.S. Export Assistance Center 222 West 7th Avenue, Suite 524 P.O. Box 38 Anchorage, AK 99513 Debra.Franklin@Trade.gov http://www.export.gov/alaska/

Ms. Christina Parisi, International Trade Specialist 520-670-5540 Tucson U.S. Export Assistance Center 300 West Congress Street, Suite 7N1 Tucson, AZ 85701 Christina.Parisi@trade.gov http://www.export.gov/arizona/

AL – Birmingham Mr. Robert Stackpole, USEAC Director 205-731-1331, Fax: 205-731-0076 Birmingham U.S. Export Assistance Center 950 22nd Street North, Suite 773 Birmingham, AL 35203-5309 Robert.Stackpole@trade.gov http://www.export.gov/alabama/

Mr. Glen Roberts, USEAC Director 559-348-9859 Fresno U.S. Export Assistance Center 801 R Street, Suite 201 Fresno, CA 93721 Glen.Roberts@trade.gov http://export.gov/california/fresno/ http://export.gov/california/kern/

AR – Little Rock

CA – Inland Empire

Mr. James Aardappel, USEAC Director 501-324-5797, Fax: 501-324-7380 Little Rock U.S. Export Assistance Center 425 West Capitol Avenue, Suite 425 Little Rock, AR 72201 James.Aardappel@trade.gov http://www.export.gov/arkansas/

Mr. Fred Latuperissa, USEAC Director 909-390-8429, Fax: 909-390-5315 3110 East Guasti Road, Suite 465 Ontario, California 91761 Fred.Latuperissa@trade.gov http://www.export.gov/california/ie/

AZ – Phoenix Mr. Kristian Richardson, Director 602-640-2513, Fax: 602-745-7210 Phoenix U.S. Export Assistance Center 2828 N Central Avenue, Suite 800 Phoenix, AZ 85004 Kristian.Richardson@trade.gov http://www.export.gov/arizona/

166

CA – Bakersfield & Fresno

CA – Irvine Mr. Jim Mayfield, Office Director 949-660-1424, Fax: 949-660-1338 2302 Martin Court, Suite 315 Irvine, CA 92612 Jim.Mayfield@trade.gov http://export.gov/california/irvine/

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

CA – San Diego

Mr. Rachid Sayouty, USEAC Director 213-894-8784, Fax: 213-894-8789 Los Angeles (Downtown) U.S. Export Assistance Center 444 South Flower Street, 37th Floor Los Angeles, CA 90071 Rachid.Sayouty@trade.gov http://export.gov/california/losangelesdowntown/

Mr. Matthew Andersen, USEAC Director 858-467-7033, Fax: 858-467-7043 San Diego U.S. Export Assistance Center 9449 Balboa Avenue, Suite 111 San Diego, CA 92123 Matt.Andersen@trade.gov http://www.export.gov/california/sandiego/

CA – Los Angeles (West)

CA – San Francisco

Ms. Julieanne Hennessy, USEAC Director 310-235-7104, Fax: 310-235-7220 Los Angeles (West) U.S. Export Assistance Center 11500 Olympic Blvd., Suite 601 Los Angeles, CA 90064 JulieAnne.Hennessy@trade.gov http://www.export.gov/california/losangeleswest/

Mr. Stephan Crawford, USEAC Director 415-705-2300, Fax: 415-705-2299 San Francisco U.S. Export Assistance Center 75 Hawthorne, Suite 260 San Francisco, CA 94105-3920 Stephan.Crawford@trade.gov http://www.export.gov/california/sanfrancisco/

CA – Monterey Bay

CA – San Jose (Silicon Valley)

Monterey U.S. Export Assistance Center 411 Pacific Street, Suite 316A Monterey, CA 93940 The Monterey service area is being covered by the CA San Jose (Silicon Valley) USEAC http://www.export.gov/california/monterey

Ms. Joanne Vliet, USEAC Director 408-535-2757, Fax: 408-535-2758 San Jose (Silicon Valley) U.S. Export Assistance Center 55 South Market Street, Suite 1040 San Jose, CA 95113 Joanne.Vliet@trade.gov http://www.export.gov/california/sanjose

CA – North Bay Ms. Elizabeth Krauth, USEAC Director 415-485-6209, Fax: 415-485-6219 North Bay U.S. Export Assistance Center at Dominican University of California 50 Acacia Avenue San Rafael, CA 94901 Elizabeth.Krauth@trade.gov http://export.gov/california/northbay

CA – Ventura County

CA – Oakland

CO – Denver

Mr. Rod Hirsch, USEAC Director 510-273-7350, Fax: 510-273-7352 Oakland U.S. Export Assistance Center 1301 Clay St., Suite 630N Oakland, CA 94612 Rod.Hirsch@trade.gov http://www.export.gov/California/Oakland

Mr. Paul Bergman, USEAC Director 303-844-6623, Fax: 303-844-5651 Denver U.S. Export Assistance Center 1999 Broadway, Suite 2205 Denver, CO 80202 Paul.Bergman@trade.gov http://www.export.gov/colorado/

CA – Sacramento

CT – Middletown

Mr. George Tastard, USEAC Director 916-566-7170, Fax: 916-566-7123 Sacramento U.S. Commercial Service 1410 Ethan Way, Ste. 131 N Sacramento, CA 95825 George.Tastard@trade.gov http://www.export.gov/california/sacramento/

Ms. Anne Evans, USEAC Director 860-638-6950, Fax: 860-638-6970 Middletown U.S. Export Assistance Center 213 Court St., Suite 903 Middletown, CT 06457-3382 Anne.Evans@trade.gov http://www.export.gov/connecticut/

Mr. Gerald Vaughn, USEAC Director 805-488-4844, Fax: 805-488-7801 Ventura County U.S. Export Assistance Center 333 Ponoma Street Port Hueneme, CA 93041 Gerald.Vaughn@trade.gov http://www.export.gov/california/ventura/

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CA – Los Angeles (Downtown)

167

U.S. DEPARTMENT OF COMMERCE: U.S. & FOREIGN COMMERCIAL SERVICE EXPORT ASSISTANCE CENTER DIRECTORY 168

FL – Clearwater

GA – Savannah

Ms. Sandra Campbell, Director 727-893-3738, Fax: 727-893-3839 Tampa Bay U.S. Export Assistance Center 13805 58th Street North, Suite 1-200 Clearwater, FL 33760 Sandra.Campbell@trade.gov http://export.gov/florida/

Mr. Todd Gerken, USEAC Director 912-652-4204, Fax: 912-652-4675 Savannah U.S. Export Assistance Center 111 East Liberty Street, Suite 202 Savannah, GA 31401 Todd.Gerken@trade.gov http://www.export.gov/georgia/

FL – Fort Lauderdale

HI – Honolulu

Mr. Eduardo Torres, USEAC Director 954-356-6640, Fax: 954-356-6644 Fort Lauderdale U.S. Export Assistance Center 1850 Eller Drive, Suite 401 Fort Lauderdale, FL 33316 Eduardo.Torres@trade.gov http://www.export.gov/florida/

Mr. John Holman, USEAC Director 808-522-8040, Fax: 808-522-8045 Hawaii U.S. Export Assistance Center Foreign Trade Zone #9 521 Ala Moana Blvd., Room 214 Honolulu, HI 96813 John.Holman@trade.gov http://www.export.gov/hawaii/

FL – Jacksonville & Tallahassee Mr. Jorge Arce, Office Director 904-232-1270, Fax: 904-232-1271 Jacksonville U.S. Export Assistance Center 3 Independent Drive Jacksonville, FL 32202 Jorge.Arce@trade.gov http://www.export.gov/florida

FL – Miami Mr. Eduardo Torres, Director south Florida 305-526-7425, Fax: 305-526-7434 Miami U.S. Export Assistance Center 5835 Blue Lagoon Drive, Suite 203 Miami, FL 33126 Eduardo.Torres@trade.gov http://www.export.gov/florida

FL – Orlando Mr. Kenneth Mouradian, USEAC Director 407-420-4848, ext. 260, Fax: 407-420-4425 Orlando U.S. Export Assistance Center 3201 East Colonial Drive, Suite A-20 Orlando, FL 32803 Kenneth.Mouradian@trade.gov http://www.export.gov/florida

GA – Atlanta Mr. George Tracy, USEAC Director 404-815-1498, Fax: 404-347-0002 Atlanta U.S. Export Assistance Center 75 Fifth Street, NW, Suite 1060 Atlanta, GA 30308 George.Tracy@trade.gov http://www.export.gov/georgia/

IA – Des Moines Mrs. Patricia Cook, Office Director 515-284-4590, Fax: 515-284-4232 US Commercial Service Iowa Federal Building, Room 749 210 Walnut Street, Des Moines, IA 50309 Patricia.Cook@trade.gov http://www.export.gov/iowa/

ID – Boise Ms. Amy Benson, Office Director 208-364-7791, Fax: 208-334-2631 Boise U.S. Export Assistance Center 700 W. State Street, 2nd Floor Boise, ID 83720 Amy.Benson@trade.gov http://www.export.gov/idaho/

IL – Chicago Mr. Hovan Asdourian, Office Director 312-886-8094, Fax: 312-353-8120 233 North Michigan Avenue, Suite 260 Chicago, IL 60601 Houvan.Asdourian@trade.gov http://www.export.gov/illinois/

IL – Peoria Mrs. Elizabeth Ahern, Director 309-671-7815 Peoria U.S. Export Assistance Center 1501 West Bradley Avenue, 141 Jobst Hall Peoria, IL 61625 http://www.export.gov/illinois/

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

MA – Boston

Mr. Patrick Hope, USEAC Director 815-316-2380, Fax: 888-628-2571 Rockford Illinois U.S. Export Assistance Center 327 South Church Street, Suite 1600 Rockford, IL 61101 Patrick.Hope@trade.gov http://www.export.gov/illinois/

Mr. James Paul, USEAC Director 617-565-4301, Fax: 617-565-4313 Boston U.S. Export Assistance Center 55 New Sudbury Street, Suite 1826A Boston, MA 02203 JPaul@trade.gov http://www.export.gov/Massachusetts/

IN – Indianapolis

MD – Baltimore

Mr. Mark Cooper, Office Director 317-582-2300, Fax: 317-582-2301 Indianapolis U.S. Export Assistance Center 11405 N. Pennsylvania Street, Suite 106 Carmel, IN 46032 Mark.Cooper@trade.gov http://www.export.gov/indiana/

Mrs. Carla Menendez, Commercial Officer 410-962-4539, Fax: 410-962-4529 Baltimore U.S. Export Assistance Center 300 West Pratt Street, Suite 300 Baltimore, MD 21201 Carla.Menendez@trade.gov http://www.export.gov/maryland/

KS – Wichita

ME – Portland ME

Mr. Andrew Anderson, USEAC Director 316-263-4067, Fax: 316-462-5506 Wichita U.S. Export Assistance Center 300 W Douglas Avenue, Suite 850 Wichita, KS 67202 Andrew.Anderson@trade.gov http://www.export.gov/kansas

Mr. Jeffrey Porter, USEAC Director 207-780-3756, Fax: 207-780-3761 Maine U.S. Export Assistance Center 312 Fore Street Portland, Maine 04101 Jeffrey.Porter@trade.gov http://www.export.gov/maine

KY – Lexington

MI – Detroit

Ms. Sara Moreno, USEAC Director 859-225-7001 Lexington U.S. Export Assistance Center 301 East Main Street, Suite 110 Lexington, KY 40507-1553 Sara.Moreno@trade.gov http://www.export.gov/kentucky/

Ms. Sara Coulter, USEAC Director 313-226-3006, Fax: 313-226-3073 Detroit U.S. Export Assistance Center 211 W. Fort Street, Suite 1310 Detroit, MI 48226 Sara.Coulter@trade.gov http://www.export.gov/michigan

KY – Louisville

MI – Grand Rapids

Ms. Margaret (Peggy) Pauley, USEAC Director 502-582-5066, Fax: 502-582-6573 Louisville U.S. Export Assistance Center 601 W. Broadway, Room 634B Louisville, KY 40202 Peggy.Pauley@trade.gov http://www.export.gov/kentucky/

Ms. Kendra Kuo, USEAC Director 616-458-3564, Fax: 616-458-3872 Grand Rapids U.S. Export Assistance Center 50 Front Ave. SW, Suite 1119 Grand Rapids, MI 49504 Kendra.Kuo@trade.gov http://www.export.gov/michigan

LA – New Orleans

MI – Pontiac (East Michigan)

Ms. Erin Butler, USEAC Director 504-589-6530, Fax: 504-589-2337 Suite 419, U.S. Custom House 423 Canal Street, Suite 419 New Orleans, LA 70130 Erin.Butler@trade.gov http://www.export.gov/louisiana

Mr. Richard Corson, USEAC Director 248-975-9600, Fax: 248-975-9606 East Michigan U.S. Export Assistance Center 1200 N Telegraph Rd Administrative Annex 1, Building 47 West Pontiac, MI 48341 Richard.Corson@trade.gov http://www.export.gov/michigan/

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

U.S. DEPARTMENT OF COMMERCE: U.S. & FOREIGN COMMERCIAL SERVICE EXPORT ASSISTANCE CENTER DIRECTORY

IL – Rockford

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MN – Minneapolis

NC – Greensboro

Mr. Ryan Kanne, USEAC Director 612-348-1638, Fax: 612-348-1650 Minneapolis U.S. Export Assistance Center 330 2nd Avenue South, Suite 410 Minneapolis, MN 55401 Ryan.Kanne@trade.gov http://www.export.gov/minnesota/

Ms. Stephanie Heckel, Director 336-333-5345, Fax: 336-333-5158 330 S. Greene Street, Suite 303 Greensboro, NC 27401 Stephanie.Heckel@trade.gov http://www.export.gov/northcarolina

MO – Kansas City

NC – Raleigh

Ms. Nyamusi Igambi, Director 816-421-1876, Fax: 816-471-7839 U.S. Commercial Service- Kansas City 1000 Walnut Street, Suite 500 Kansas City, MO 64106 Nyamusi.Igambi@trade.gov http://www.export.gov/missouri/kansascity/

Mrs. Frances Selema, Senior International Trade Specialist 919-281-2750, Fax: 919-281-2754 Raleigh US Export Assistance Center 10900 World Trade Blvd., Suite 110 Raleigh, NC 27617 Frances.Selema@trade.gov http://www.export.gov/northcarolina/

MO – St. Louis

ND – Fargo

Mr. Cory Simek, USEAC Director 314-260-3780, Fax: 314-260-3792 U.S. Dept. of Commerce/ITA 4300 Goodfellow Blvd., Bldg. 110 Suite 1100A St. Louis, MO 63120 Cory.Simek@trade.gov http://www.export.gov/missouri/st.louis/

Ms. Heather Ranck, Director 701-239-5080, Fax: 701-540-0262 NDSU Agribusiness and Applied Economics Department at Barry Hall 811 Second Avenue North Suite 436 Fargo, ND 58102 Heather.Ranck@trade.gov http://www.export.gov/northdakota

MS – Jackson

NE – Omaha

Ms. Carol Moore, USEAC Director 601-373-0773, Fax: 601-373-0959 Mississippi U.S. Export Assistance Center 1230 Raymond Road, Box 600 Jackson, MS 39204 Carol.Moore@trade.gov http://www.export.gov/mississippi/

Ms. Meredith Bond, USEAC Director 402-346-6947, Fax: 402-939-0121 111 South 18th Plaza, Room C-52 Omaha, NE 68102-1321 Meredith.Bond@trade.gov http://www.export.gov/nebraska/

MT – Montana

NH – New Hampshire

Mr. Carey Hester, International Trade Specialist 406-370-0097, Fax: 503-326-6351 Montana U.S. Export Assistance Center 10 West 15th Street, Suite 1100 Helena, MT 59626 Carey.Hester@trade.gov http://www.export.gov/montana/

Mr. Justin Oslowski, USEAC Director 603-953-0212, Fax: 603-610-2418 Thomas J. McIntyre Federal Building 80 Daniel Street, Room 104 Portsmouth, New Hampshire 03801

NC – Charlotte Mr. Greg Sizemore, USEAC Director 704-333-4886, Fax: 704-332-2681 Charlotte U.S. Export Assistance Center 521 E. Morehead Street, Suite 435 Charlotte, NC 28202 Greg.Sizemore@trade.gov http://www.export.gov/northcarolina/

Mailing Address: P.O. Box 120, Portsmouth, NH 03802 Justin.Oslowski@trade.gov http://www.export.gov/newhampshire

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

NY – Long Island

Ms. Debora Sykes , Director 6098962734, Fax: 6098964249 Central-Southern NJ U.S. Export Assistant Center (formerly Trenton USEAC) 997 Lenox Drive, Suite 111 Lawrenceville, NJ 08648 Debora.Skyes@trade.gov http://www.export.gov/newjersey

Ms. Susan Sadocha, Director 516-427-9117 U.S. Commercial Service Long Island POB 423 Old Westbury, NY 11568-0423 Susan.Sadocha@trade.gov www.export.gov/newyork/longisland/

NY – New York

NJ – Northern New Jersey Ms. Susan Widmer, Director 973-645-4682, Fax: 973-645-4783 Northern New Jersey U.S. Export Assistance Center 20 Washington Place, Suite 615 Newark, NJ 07102 Susan.Widmer@trade.gov http://www.export.gov/newjersey

Ms. Carmela Mammas, USEAC Director 212-809-2675, Fax: 212-809-2687 New York U.S. Export Assistance Center 290 Broadway, Suite 1312 New York, NY 10007 Carmela.Mammas@trade.gov www.export.gov/newyork/

NY – Rochester

NV – Las Vegas Mr. Andrew Edlefsen, USEAC Director 702-388-6694, Fax: 702-388-6469 Las Vegas U.S. Export Assistance Center 300 S. Fourth Street, Suite 400 Las Vegas, Nevada 89101 Andrew.Edlefsen@trade.gov http://www.export.gov/nevada/

Mr. Timothy J. McCall, Director 585-399-7065, Fax: 585-423-7570 Rochester U.S. Export Assistance Center 400 Andrews Street, Suite 300 Rochester, NY 14604 Timothy.Mccall@trade.gov http://www.export.gov/newyork/bflorochsyr

NY – Westchester

NV – Reno

Ms. Joan Kanlian, USEAC Director 914-682-6712, Fax: 914-682-6698 Westchester U.S. Export Assistance Center 707 Westchester Avenue, Suite 209 White Plains, NY 10604 Joan.Kanlian@trade.gov http://export.gov/newyork/westchester/

Mr. Janis Kalnins, Director 775-301-0037, Fax: 775-784-5343 Reno U.S. Export Assistance Center 704 W Nye Ln # 201 Carson City, NV 89703 Janis.Kalnins@trade.gov http://www.export.gov/nevada/reno/

OH – Cincinnati

NY – Buffalo Ms. Rosanna Masucci, Director 716-551-4191, Fax: 716-551-5290 Buffalo U.S. Export Assistance Center 130 S. Elmwood Avenue, Suite 530 Buffalo, NY 14202 Rosanna.Masucci@trade.gov http://www.export.gov/newyork/bflorochsyr/

Ms. Marcia Brandstadt, USEAC Director 513-684-2944, Fax: 513-684-3227 Cincinnati U.S. Export Assistance Center 36 E. 7th Street, Suite 2650 Cincinnati, OH 45202 Marcia.Brandstadt@trade.gov http://www.export.gov/ohio/southernohio/

OH – Cleveland

NY – Harlem Ms. KL Fredericks, USEAC Director 212-860-6200, Fax: 212-860-6203 Harlem U.S. Export Assistance Center 163 W. 125th Street, Suite 901 New York, NY 10027 KL.Fredericks@trade.gov http://www.export.gov/newyork/harlem/

Ms. Susan Whitney, Office Director 216-522-4750, Fax: 216-522-2235 Cleveland U.S. Export Assistance Center Howard M. Metzenbaum U.S. Courthouse 201 Superior Avenue East, Suite 424 Cleveland, OH 44114 Susan.Whitney@trade.gov http://export.gov/ohio/northernohio/

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

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NJ - Central-Southern New Jersey

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OH – Columbus

PR – San Juan

614-365-9510, Fax: 614-365-9598 Columbus U.S. Export Assistance Center 401 N. Front St., #200 Columbus, OH 43215 http://export.gov/ohio/centralohio/

Mr. José Burgos, USEAC Director 787-775-1992,1974, Fax: 787-781-7178 San Juan (Guaynabo) U.S. Export Assistance Center Centro Internacional de Mercadeo, Torre II, Street 165, Suite 702 Guaynabo, PR 00968-8058 Jose.Burgos@trade.gov http://export.gov/puertorico/

OK – Oklahoma City Mr. Marcus Verner, USEAC Director 405-608-5302, Fax: 405-608-4211 Oklahoma City U.S. Export Assistance Center 301 NW 63rd Street, Suite 420 Oklahoma City, OK 73116 Marcus.Verner@trade.gov http://www.export.gov/oklahoma/

OK – Tulsa Mr. Marcus Verner, USEAC Director 918-581-7650, Fax: 918-581-6263 Tulsa U.S. Export Assistance Center 700 N. Greenwood Avenue, Suite 1400 Tulsa, OK 74106 Marcus.Verner@trade.gov http://www.export.gov/oklahoma

OR – Portland OR Mr. Scott Goddin, USEAC Director 503-326-3001, Fax: 503-326-6351 Portland, OR U.S. Export Assistance Center One World Trade Center 121 SW Salmon Street, Suite 242 Portland, OR 97204 Scott.Goddin@trade.gov http://export.gov/oregon/

PA – Philadelphia Mr. Antonio Ceballos, USEAC Director 215-597-7141, Fax: 215-597-6123 U.S. Commercial Service, Philadelphia One Penn Center 1617 John F. Kennedy Blvd. Suite 1580 Philadelphia, PA 19103-1815 Antonio.Ceballos@trade.gov http://www.export.gov/pennsylvania/philadelphia/

PA – Pittsburgh

RI – Providence Mr. Keith Yatsuhashi, USEAC Director 401-528-5104, Fax: 401-528-5067 Providence U.S. Export Assistance Center 315 Iron Horse Way, Suite 101 Providence, RI 02908 Keith.Yatsuhashi@trade.gov http://www.export.gov/rhodeisland/

SC – Charleston SC Mr. Phil Minard, Manager 843-746-3404, Fax: 843-529-0305 Charleston, SC U.S. Export Assistance Center 1362 McMillan Avenue, Suite 100 North Charleston, SC 29405 Phil.Minard@trade.gov http://www.export.gov/southcarolina/

SC – Columbia Ms. Dorette Coetsee, Director 803-255-2623, Fax: 803-777-2615 Columbia U.S. Export Assistance Center 1301 Gervais Street, Suite 1100 Columbia, SC 29201 Dorette.Coetsee@trade.gov http://www.export.gov/southcarolina/

SC – Greenville Mr. Denis Csizmadia, USEAC Director 864-250-8429, Fax: 864-250-6729 Greenville U.S. Export Assistance Center Buck Mickel Center at Greenville Technical College 216 S. Pleasantburg Drive, Suite 243 Greenville, SC 29607 Denis.Csizmadia@trade.gov http://www.export.gov/southcarolina/

Ms. Lyn Doverspike, USEAC Director 412-644-2800, Fax: 412-644-2803 U.S. Commercial Service William S. Moorhead Federal Building 1000 Liberty Avenue, Suite 807 Pittsburgh, PA 15222 Lyn.Doverspike@trade.gov http://www.export.gov/pennsylvania/pittsburgh

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

TX – Houston

Ms. Cinnamon King, USEAC Director 605-330-4265, Fax: 605-330-4266 Sioux Falls U.S. Export Assistance Center 2001 S. Summit Ave Augustana College / Madsen Center Sioux Falls, SD 57197 Cinnamon.King@trade.gov http://www.export.gov/southdakota/

Mr. Richard Ryan, Director 281-228-5650, Fax: 281-228-5663 Houston U.S. Export Assistance Center 1919 Smith Street, Suite 1026 Houston, TX 77002 Richard.Ryan@trade.gov http://www.export.gov/texas/houston/

TX – North Texas/West Texas

TN – Knoxville Mr. Robert Leach, USEAC Director 865-545-4637, Fax: 865-545-4435 Knoxville U.S. Export Assistance Center 17 Market Square, #201 Knoxville, TN 37902-1405 Robert.Leach@trade.gov http://www.export.gov/tennessee/

TN – Memphis Mr. Dylan Daniels, International Trade Specialist 901-308-3579, Fax: 901-543-3510 Memphis U.S. Export Assistance Center 22 North Front Street, Suite 200 Memphis, TN 38103 Dylan.Daniels@trade.gov http://export.gov/tennessee/memphis/

TN – Nashville Ms. Brie Knox, Director 615-736-2222, Fax: 615-736-2226 Nashville U.S. Export Assistance Center 801 Broadway, Suite C372 Nashville, Tennessee 37203 Brie.Knox@trade.gov http://export.gov/tennessee/nashville/

TX – Austin Ms. Karen Parker, USEAC Director 512-916-5939, Fax: 512-916-5940 221 E. 11th Street, 4th Floor Austin, TX 78701 (Call for appointment) Karen.Parker@trade.gov http://www.export.gov/texas/austin/

TX – El Paso Mr. Robert Queen, USEAC Director 915-929-6971, Fax: 915-858-8827 El Paso World Trade Center 9570 Pan American Drive El Paso, TX 79927 Robert.Queen@trade.gov http://www.export.gov/texas/elpaso/

817-684-5347, Fax: 817-684-5345 TX - Dallas-Fort Worth Export Assistance Center 4300 Amon Carter Blvd Suite 114 Fort Worth, Texas 76155 Office.NorthTexas@trade.gov http://www.export.gov/texas/fortworth/

TX – San Antonio/South Texas Mr. Daniel Rodriguez, USEAC Director 210-472-4020, Fax: 210-472-4019 San Antonio U.S. Export Assistance Center 615 E. Houston Street, Suite 207 San Antonio, TX 78205 Daniel.Rodriguez@trade.gov http://www.export.gov/texas/sanantonio

UT – Salt Lake City Mr. David Fiscus, USEAC Director 801-524-3070, Fax: 801-524-3072 Salt Lake City U.S. Export Assistance Center 350 S. Main Street, Suite 462 Salt Lake City, UT 84101 David.Fiscus@trade.gov http://www.export.gov/utah/

VA – Northern VA Mr. William Fanjoy, USEAC Director 703-235-0100 Northern VA U.S. Export Assistance Center 1501 Wilson Blvd., Suite 1225 Arlington, Virginia 22209 William.Fanjoy@trade.gov http://www.export.gov/virginia

VA – Richmond Mr. Joshua Kaplan, International Trade Specialist 804-461-9324 400 N. 8th Street, Suite 1028 Richmond, VA 23219 Joshua.Kaplan@trade.gov www.export.gov/virginia/

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

U.S. DEPARTMENT OF COMMERCE: U.S. & FOREIGN COMMERCIAL SERVICE EXPORT ASSISTANCE CENTER DIRECTORY

SD – Sioux Falls

173

U.S. DEPARTMENT OF COMMERCE: U.S. & FOREIGN COMMERCIAL SERVICE EXPORT ASSISTANCE CENTER DIRECTORY 174

VT – Montpelier

WI – Milwaukee

Mrs. Susan Murray, USEAC Director 802-828-4508, Fax: 802-828-3258 Montpelier U.S. Export Assistance Center PO Box 605 87 State Street, Room 205 Montpelier, VT 05601 Susan.Murray@trade.gov http://www.export.gov/vermont/

Mr. Damian Felton, Director 414-297-3457, Fax: 414-297-3470 Wisconsin U.S. Export Assistance Center 517 E. Wisconsin Avenue Milwaukee, WI 53202 Damian.Felton@trade.gov www.export.gov/wisconsin

WA – Seattle & Tacoma Ms. Diane Mooney, USEAC Director 206-553-5615, Fax: 206-553-7253 Seattle U.S. Export Assistance Center 2001 6th Avenue, Suite 2610 Seattle, WA 98121 Diane.Mooney@trade.gov http://export.gov/Washington/seattle/

WA – Spokane Ms. Janet Bauermeister, USEAC Director 509-344-9398, Fax: 503-326-6351 Spokane U.S. Export Assistance Center Greater Spokane Incorporated 801 W. Riverside Avenue, Suite 100 Spokane, WA 99201 Janet.Bauermeister@trade.gov http://www.export.gov/washington/spokane

WV – Charleston WV Ms. Leslie Drake, USEAC Director 304-347-5123, Fax: 304-347-5408 Charleston, WV U.S. Export Assistance Center 1116 Smith Street, Suite 314 Charleston, WV 25301 Leslie.Drake@trade.gov http://www.export.gov/westvirginia/

WV – Wheeling Mr. Diego Gattesco, USEAC Director, Senior International Trade Specialist 304-243-5493, Fax: 304-243-5494 Wheeling U.S. Export Assistance Center Wheeling Jesuit University NTTC Building, Room 134 316 Washington Ave Wheeling, WV 26003 Diego.Gattesco@trade.gov http://www.export.gov/westvirginia/

CROSSROADS | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA

Jessica Tan

Managing Director of Microsoft Singapore

U.S. DEPARTMENT OF COMMERCE: U.S. & FOREIGN COMMERCIAL SERVICE EXPORT ASSISTANCE CENTER DIRECTORY

At Microsoft, our mission is to empower every person and every organization on the planet to achieve more. To achieve this in today’s complex and connected world, we understand that we cannot do this alone. It is through collaborating with ecosystems such as that provided by AmCham Singapore that we accelerate efforts to make a lasting positive impact in the communities that we belong to.

When you’re running a global business, keeping up with emerging opportunities in the region becomes a challenge. AmCham Singapore connects companies like Microsoft with business and government leaders through advocacy, insights,CROSSROADS and connections. | DOING BUSINESS IN SINGAPORE & SOUTHEAST ASIA 175

ON OUR OWN WORLD STAGE FIRST CLASS PROFESSIONAL THEATER

e us .sg Ho edu . n pe sais O . at ww us t w a in Jo ter s gi Re

U.S. DEPARTMENT OF COMMERCE: U.S. & FOREIGN COMMERCIAL SERVICE EXPORT ASSISTANCE CENTER DIRECTORY

CREATING CONFIDENT PERFORMERS

Located only 10 minutes from Orchard, Stamford American’s state-of-the-art 500-seat Reagan Theater provides the perfect environment to rehearse and perform. It is the only school theater in Singapore equipped with an LED backdrop screen which brings performances to life, allowing students to give more engaging presentations.

500-Seat Professional Theater

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Stamford American offers an outstanding

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21/2/2016 – 20/2/2020

American International School CPE Registration Number: 200823594D Period of | DOING 176Stamford CROSSROADS BUSINESS IN SINGAPORE & SOUTHEAST ASIA Registration: August 10, 2014 to August 9, 2018

Inquiry Hotline +65 6653 7907