Doing Business in Singapore: The Gateway to Southeast Asia by AmCham Singapore

Doing Business in Singapore The Gateway to Southeast Asia

2011/2012 Guide for U.S. Companies

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

Contents 6 Messsage from the U.S. Ambassador 8

Commercial Service Singapore

136 Contacts, Market Research, and Trade Events 140 Guide to Our Services

13 The American Chamber of Commerce in Singapore

142 Doing Business in Brunei Darussalam

18 Doing Business in Singapore

149 Doing Business in Cambodia

22 Political and Economic Environment 34 Selling U.S. Products and Services

157 Doing Business in Indonesia 172 Doing Business in Laos

45 Leading Sectors for U.S. Export and Investment

178 Doing Business in Malaysia

78 Trade Regulations, Custom and Standards

185 Doing Business in Philippines

92 Investment Climate

196 Doing Business in Thailand

123 Trade and Project Financing 127 Business Travel

216 List of Ports and States represented in Singapore 218 American Community Organizations in Singapore 220 U.S. & Foreign Commercial Service Offices in the AsiaPacific Region 226 U. S. Department of Commerce U.S. & Foreign Commercial Service Export Assistance Center Directory 236 More from The Advertisers

206 Doing Business in Vietnam

Doing Business in Singapore: The Gateway to Southeast Asia

Embassy of the United States Singapore

Ambassador’s Message At no other time in the history of the United States have exports become so important to the country’s economic growth. The U.S. Embassy in Singapore plays an integral role in President Obama’s National Export Initiative to expand American exports and help American businesses strengthen their export endeavors in Singapore and the region. Doing Business in Singapore 2011 Guide is prepared by the Embassy to provide you with a comprehensive overview of Singapore’s commercial, economic, political and investment climate, emphasizing the best prospects for American exports. It also describes assistance available from the U.S. government and other sources that can help you in your marketing efforts in Singapore and the region. As the United States’ 10th largest export market and 13th largest trading partner, Singapore is one of the most highly developed and sophisticated industrial, commercial, financial and consumer economies in the world. With a per capita

GDP of more than US$43,000, the country is an excellent market for a wide variety of U.S. products and services. It also serves as a major distribution center for U.S. companies interested in selling in Asia. To stay engaged in the region, the United States joined the Trans-Pacific Strategic Economic Partnership (TPP) negotiations that will link Singapore, the U.S., Chile, Peru, New Zealand, Australia, Vietnam, Malaysia and Brunei in a regional Free Trade Agreement. I am very proud to say that U.S.-Singapore relations are at an all-time high and the U.S. is enjoying unprecedented goodwill and standing in Asia. I therefore invite you to make full use of our Embassy and its Commercial Service to help you achieve success in the marketplace.

David I. Adelman United States Ambassador

Doing Business in Singapore: The Gateway to Southeast Asia

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

Mr. Ng Haw Cheng Commercial Specialist (Building/construction; transportation; environment protection)

The mission of the U.S. Commercial Service (CS) is to promote U.S. exports and support U.S. business interests in the greater Singapore region.

Mr. Chan Yiu Kei Commercial Specialist (Manufacturing; education/training; power/utilities; energy/natural resources)

Ms. Luanne Theseira-O’Hara Commercial Specialist (Food processing, packaging and services; health/medical/scientific; consumer goods & services)

Patrick Santillo Commercial Counselor

Darrel Ching Commercial Attaché

CS Singapore offers a wide variety of programs and activities to help American companies prosper in the Southeast Asia economies. This section provides important contact information on CS Singapore personnel, lists a few of the many commercial and industrial sectors covered by CS Singapore’s Commercial Specialists and describes the major export promotion programs.

Singapore Mailing Address: American Embassy Commercial Service 27 Napier Road, Singapore 258508 Tel: (65) 6476-9037 Fax: (65) 6476-9080 E-mail: Singapore.office@trade.gov Website: www.buyusa.gov/singapore Stateside mailing address: (for users of the U.S. postal system): Commercial Section Unit 4280 Box 2700 DPO AP 96507-2700

Mr. Michael Hogge Singapore Desk Officer Market Access & Compliance U.S. Department of Commerce 14th & Constitution Avenue N.W. Washington D.C. 20230-0001 Tel. (202) 482 1405 Fax (202) 482 3316 E-mail: michael.hogge@mail.doc.gov

Doing Business in Singapore: The Gateway to Southeast Asia

Commercial Service Singapore • Meet the best distributors and agents for your products and services • Overcome potential challenges or trade barriers

CS SINGAPORE 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 Doing Business in Singapore: The Gateway to Southeast Asia

U.S. exporters seeking general export information/assistance or countryspecific commercial information should consult with their nearest Export Assistance Center or contact the U.S. Department of Commerce’s Trade Information Center at 1-800-USA-TRADE, or visit www.trade.gov.

CLIENT FACILITATION SERVICES Business Facilitation Service (BFS) Get low-cost logistical and administrative support when you are on international business travel.

The U.S. Commercial Serviceâ&#x20AC;&#x2122;s Business Facilitation Service 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; invitations to targeted members of the local business community; and meetings with specific companies.

Catalog Display at Trade Show Companies that wish to display catalogs at USDOC certified trade shows to promote their company products may use this package. 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. Delivery: 4 weeks lead-time

Commercial News USA Promote your products and services to buyers, distributors and representatives in over 145 countries through an advertisement in Commercial News USA. Distributed by U.S. embassies and consulates worldwide, this bi-monthly export magazine enables U.S. small and mediumsized businesses to reach an estimated 80,000 readers and has a proven track record in generating export sales. A Chinese language version is available for

U.S. businesses wishing to sell into this dynamic market. Visit to www.export.gov/ cnusa or call 1-800-581-8533.

Customized Market Research Access the international market intelligence you need to make informed business decisions regarding exporting. Our in-country experts help U.S. small and medium-sized businesses develop a clear picture of the export prospects for specific products in any given market. Youâ&#x20AC;&#x2122;ll get customized market research reports that address 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 Matching Service (GKS) The Gold Key Matching Service (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 Commercial Specialist; a Guide for U.S. Exporters; revelant market research; hotel reservations at Embassy rate; car rental arrange-

Doing Business in Singapore: The Gateway to Southeast Asia

ments as needed; escort for out-of office calls as available. Post requires 20 sets of product/service literature. Delivery: 6 weeks advance scheduling required.

International Company Profile (ICP) ICP - Initiate and manage your international business relationships with confidence. Have the U.S. Commercial Service generate a customized International Company Profile (ICP) on your potential business partners. Researched and prepared by our international trade specialists and commercial officers, ICPs enable U.S. small and medium-sized businesses to more effectively evaluate overseas companies. You'll get detailed answers to your questions about the 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. Delivery: 15 working days after receipt of fee and completed questionnaire.

The International Partner Search (IPS) The International Partner Search (IPS) service provides a report on qualified overseas agents, distributors, manufacturers,

Doing Business in Singapore: The Gateway to Southeast Asia

representatives, joint venture partners, licensees, franchises, or strategic partners who have examined a U.S. company's materials and expressed an interest in the company's products, services, or licenses, or expressed an interest in otherwise partnering with the company.

Platinum Key Service (PKS) The Platinum Key Service or PKS provides sustained marketing support by the U.S. Commercial Service in Singapore for U.S. firms. A Commercial Specialist will be assigned as a "dedicated account executive" to develop and implement a customized market expansion program for the client. This program will be implemented according to a defined scope of work that includes specific deliverable agreed upon between the U.S. client and the Commercial Service. Delivery: As determined in the work plan with the U.S. client.

Single Company Promotion We will assist a U.S. company or its 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. Delivery: 6 weeks advance scheduling required.

Expand Your Business Network With The American Chamber of Commerce in Singapore About Us 10% 18% Nationality of companies

We help your business succeed in the region by providing you unrivalled access to valuable business information, advocacy and networking opportunities. With 4,400 executives representing more than 700 companies, AmCham represents more than US$25 billion of investment in the region. With 280 events and committee meetings a year, even the busiest executive will find ample opportunities to network and gain business insights.

46%

12% 14% Corporate (U.S.) Large Associate (non U.s.) Large Corporate (U.S.) SMALL Associate (non U.s.) Small OTHERS

Nationality and size of companies Most of AmChamâ&#x20AC;&#x2122;s corporate members are large U.S. companies. In terms of size, 60% of our members are large companies and 30% are small companies.

12%

38%

38 years of leading the business community 78% of Fortune 500 companies based in Singapore are AmCham members

77% of AmCham executives have regional responsibilities

65% of our members are multi-national companies

Doing Business in Singapore: The Gateway to Southeast Asia

18%

Nationality of Executives

4% 4% 7%

17% Singaporean

INdian

American

Malaysian

European

Others

Australian/NEW ZEALAND

Nationality of Executives 38% of AmCham executives are Singaporean and 17% of AmCham executives are American.

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

Network

Industry Insights

160 events and 120 committee meetings a year. Use our platform to network and gain insights: You and your colleagues can also attend our upcoming events and committee meetings at members’ prices. Small companies are entitled to nominate 10 employees as AmCham members; large companies are entitled to nominate 20 employees.

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

Engage with governments We organize business missions to countries in the region, provide feedback to the U.S. and Singapore governments on pertinent issues affecting the ease of doing business in the region. Moreover, every year, we participate in the Annual Washington DC Doorknock where members meet with Congress and the Executive Branch of U.S. Government to discuss issues of relevance to the American business community in Asia Pacific. For more information, refer to our "Advocacy" section i the next page.

Exposure Speak at our events, and receive exposure in the following ways: • Listing in Membership Directory (for all companies) • Listing in Small Business Directory (for small companies) • Profiles of member companies are displayed on Members’ Spotlight • News about member companies is publicized on our E-newsletter. • Submit an article to share on AmCham’s E-newsletter.

Advertisements & Sponsorship The chamber has various avenues for members who would like to have a more direct marketing approach such as website, E-news and publications with special discounts. Besides that, members will also have the option to choose from the 250 events that AmCham host every year to reach out to a target group of audience. Sponsorship can be customized and designed based on member’s business objective.

AmCham’s Exclusive Program Special discounts for member companies’ products/ services can be offered to other AmCham members through the AmCham Exclusive Program.

AmCham’s Venue Facilities Very affordable rates for rental of facilities in our office – the SAIS Auditorium and the Citi Boardroom

Social Media You can join AmCham’s LinkedIn group, Facebook page and use the platform to exchange/ promote information. You can also watch events you have missed on AmCham’s YouTube channel, and follow us on Twitter.

Doing Business in Singapore: The Gateway to Southeast Asia

Advocacy Annual Asean Business Outlook Survey AmCham conducts an annual survey of U.S. companies operating in: • Cambodia • Philippines • Vietnam

• Indonesia • Singapore

• Malaysia • Thailand

The results are shared with U.S., Singapore, and regional goverments.

Leadership in the Asia Pacific Council of American Chambers of Commerce • APCAC is the regional organization of 27 AmChams in 21 economies across Asia Pacific, representing over 10,000 business and 50,000 executives • AmCham Singapore board members have served as APCAC Chairs in 2008-2010 and 2011-2012 • AmCham Singapore has produce 3 APCAC white papers to the U.S. Goverment.

Advocacy Papers • U.S.-Singapore-Free Trade Agreement

• Corporate for Travel Promotion Proposal

• Trans-Pacific Partnership

• ASEAN Harmonization

• Double Taxation Agreement

Connect with us and our members on Social Media

Join The American Chamber of Commerce in Singapore’s fanpage on Facebook for photos and news, be part of our LinkedIn Discussion Group, follow us at www.twitter.com/amchamsingapore and watch videos of our events on our YouTube Channel: www.youtube.com/amchamsingapore

For more information, please contact

The American Chamber of Commerce in Singapore E-mail: info@amcham.org.sg Website: www.amcham.org.sg Tel: (65) 6597-5730 Address: #23-03/04/05 Shaw Centre, 1 Scotts Road Singapore 228208 Doing Business in Singapore: The Gateway to Southeast Asia

Jeffrey R. Immelt, Chairman & CEO of General Electric

Kristian P. Moor, President and CEO, Chartis, Inc.

John Anderson, CEO of Levi Strauss & Co.

Tom Ridge, Former Secretary of Homeland Security

Tony Davis, Group CEO, Tiger Airways

Global Leaders at AmCham events Kevin Kelly, CEO, Heidrick & Struggles

Richard Edelman, President & CEO, Edelman

Stephen Roach, Chairman, Morgan Stanley Asia

Gary Locke, U.S. Secretary of Commerce

Scott Davis, Chairman & CEO, United Parcel Services

Carol Bartz, CEO, Yahoo!

Doing Business In Singapore Market Overview Foreign investments, combined with investments through government-linked corporations, underpin Singapore's open, heavily trade-dependent economy. In 2010, the Singapore economy rebounded with an exceptional performance, expanding by 14.5% to become the second fastest growing economy in the world. GDP is expected to moderate in 2011 with the Singapore Government forecasting a more sustainable growth rate of 5.0-7.0%. Inflation grew 2.8% in 2010 and is projected to rise to 3.0-4.0% in 2011. Analysts expect the Singapore currency to strengthen as the Singapore Government uses monetary policy to fight inflation. In 2010, Singapore was the United Statesâ&#x20AC;&#x2122; 10th largest export market (up from 11th place in 2009) and remained

the 13th largest trading partner. The city state is a major entrepot and was the second busiest container port in the world in 2010. The top supplier of imported goods to Singapore was Malaysia, followed by the United States, China, Japan, Taiwan, South Korea, Indonesia, Saudi Arabia, Thailand, and India respectively. "The Global Enabling Trade Report 2010" by the World Economic Forum ranked Singapore first for having the most open economy for international trade and investment.

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

Doing Business in Singapore: The Gateway to Southeast Asia

Doing Business in Singapore Political and Economic Environment

Market Opportunities

Contacts, Market Research and Trade Events Guide to Our Services Doing Business in Brunei Darussalam Doing Business in Cambodia Doing Business in Brunei Indonesia Doing Business in Laos Doing Business in Malaysia Doing Business in Philippines Doing Business in Thailand Doing Business in Vietnam

Singapore is a sophisticated and modern economy that offers excellent opportunities for U.S. firms interested in penetrating the Asian market. The World Bank's "Doing Business 2010" report ranked Singapore as the easiest country in which to do business. Singaporeâ&#x20AC;&#x2122;s market appeal is its free port status, straightforward, English-speaking, U.S. style of doing business, strong intellectual property protection with virtually no corruption. The country is a major trading hub, importing and exporting all kinds of products from consumer goods to high technology and industrial goods for re-export to third countries. Best prospects for U.S. companies include: electronics, oil and gas equipment, aircraft and parts, pollution control equipment, computer hardware and software, telecommunications equipment, laboratory and scientific instruments, medical

Business Travel

Doing Business in Singapore: The Gateway to Southeast Asia

Trade and Project Financing

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

Trade Investment Regulations and Climate Standards

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

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

Selling U.S. Leading Sectors Products and for U.S. Export Services and Investment

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

Doing Business in Singapore Political and Economic Environment Selling U.S. Leading Sectors Products and for U.S. Export Services and Investment Trade Investment Regulations and Climate Standards Trade and Project Financing Business Travel Contacts, Market Research and Trade Events Guide to Our Services Doing Business in Brunei Darussalam Doing Business in Cambodia Doing Business in Brunei Indonesia Doing Business in Laos Doing Business in Malaysia Doing Business in Philippines Doing Business in Thailand Doing Business in Vietnam

Artist’s Impression of The Singapore Sports Hub

devices, university education services and franchises.

• construction of a $530 million underground oil storage facility;

The Singapore government and private industry are expected to invest in several major projects including:

• construction of a public hospital with an allocated budget of over $700 million scheduled to be ready by 2014;

• construction of $300 million motor sports hub to be ready of end 2011; • construction of $47 million new air cargo hub at Singapore Changi Airport to be completed by first half of 2012; • construction of a second desalination plant to be ready by 2013; • construction of $1 billion LNG terminal that will start operations in mid 2013;

• construction of a private sector 350bed hospital costing between $207 and $345 million to be built by 2012 while another private healthcare group will spend between $61.5 million and $77 million to expand their flagship hospital scheduled for completion by 2012; • Singapore’s second largest telecom services provider together with regional telcos will jointly build and operate a $430 million submarine cable connecting East Asia’s major business hubs; Doing Business in Singapore: The Gateway to Southeast Asia

Doing Business in Singapore: The Gateway to Southeast Asia

Doing Business in Brunei Indonesia

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

Doing Business in Cambodia

Market Entry Strategy

Doing Business in Brunei Darussalam

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

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

Guide to Our Services

â&#x20AC;˘ Construction of new Mass Rapid Transit (MRT) rail lines costing over $30 billion that will double Singaporeâ&#x20AC;&#x2122;s MRT network from 138km today to 278km in 2020.

Contacts, Market Research and Trade Events

Changi Airport. Image courtesy of the Singapore Tourism Board

Helicopters fly over Sir Stamford Rafflesâ&#x20AC;&#x2122; statue on National Day. Image courtesy of the Singapore Tourism Board

Political and Economic Environment PEOPLE Singapore is one of the most densely populated countries in the world. The annual population growth rate for 2010 was 1.8%, including resident foreigners. Singapore has a varied linguistic, cultural, and religious heritage. Malay is the national language, but Chinese, English, and Tamil also are official languages. English is the language of administration and also is widely used in the professions, businesses, and schools. The government has mandated that English be the primary language used at all levels of the school systems, and it aims to provide at least 10 years of

education for every child. In 2009, primary and secondary school students totaled about 489,484, or 9.6% of the entire population. In 2009, enrollment at public universities was 72,710 (full-time/ part-time) and 80,635 at the polytechnics. The Institute of Technical Education for basic technical and commerce skills has 24,846 students. The country's literacy rate is 96.3%. Singapore generally allows religious freedom, although religious groups are subject to government scrutiny, and some religious sects are restricted or banned. Almost all Malays are Muslim; other Singaporeans are Taoists, Buddhists, Confucianists, Christians, Hindus, or Sikhs. Doing Business in Singapore: The Gateway to Southeast Asia

Doing Business in Singapore Political and Economic Environment Guide to Our Services Doing Business in Brunei Darussalam Doing Business in Cambodia Doing Business in Brunei Indonesia Doing Business in Laos Doing Business in Malaysia Doing Business in Philippines Doing Business in Thailand Doing Business in Vietnam

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

Contacts, Market Research and Trade Events

Doing Business in Singapore: The Gateway to Southeast Asia

GOVERNMENT

Business Travel

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

After a period of friction between Singapore and the central government in Kuala Lumpur, Singapore separated from Malaysia on August 9, 1965, and became an independent republic.

Trade and Project Financing

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

Indonesia adopted a policy of "confrontation" against the new federation, charging that it was a "British colonial creation," and severed trade with Malaysia. The move particularly affected Singapore, since Indonesia had been the island's second-largest trading partner. The political dispute was resolved in 1966, and Indonesia resumed trade with Singapore.

Trade Investment Regulations and Climate Standards

Although Singapore's history dates from the 11th century, the island was little known to the West until the 19th century, when in 1819, Sir Thomas Stamford Raffles arrived as an agent of the British East India Company. In 1824, the British purchased Singapore Island, and by 1825, the city of Singapore had become a major port, with trade exceeding that of Malaya's Malacca and Penang combined. In 1826, Singapore, Penang, and Malacca were combined as the Straits Settlements to form an outlying residency of the British East India Company; in 1867, the Straits Settlements were made a British Crown Colony, an arrangement that continued until 1946.

In 1946, the Straits Settlements was dissolved; Penang and Malacca became part of the Malayan Union, and Singapore became a separate British Crown Colony. In 1959, Singapore became self-governing, and, in 1963, it joined the newly independent Federation of Malaya, Sabah, and Sarawak--the latter two former British Borneo territories--to form Malaysia.

Selling U.S. Leading Sectors Products and for U.S. Export Services and Investment

HISTORY

Doing Business in Singapore

The Parliament House. Image courtesy of the Singapore Tourism Board

Political and Economic Environment Selling U.S. Leading Sectors Products and for U.S. Export Services and Investment Trade Investment Regulations and Climate Standards Trade and Project Financing Business Travel Contacts, Market Research and Trade Events Guide to Our Services Doing Business in Brunei Darussalam Doing Business in Cambodia Doing Business in Brunei Indonesia Doing Business in Laos Doing Business in Malaysia Doing Business in Philippines Doing Business in Thailand Doing Business in Vietnam

ously exercised only ceremonial duties. As a result of 1991 constitutional changes, the president is now supposed to be elected and exercises expanded powers over legislative appointments, government budgetary affairs, and internal security matters. The unicameral Parliament consists of 87 members elected on the basis of universal adult suffrage, and up to nine "nominated" members of Parliament (NMPs). In addition, a constitutional provision assures at least nine opposition members in Parliament, even if fewer than nine actually are elected; these are known as non-constituency members of Parliament (NCMPs). The president appoints nominated members of Parliament from among nominations by a special selection committee. Nominated members of Parliament enjoy the same privileges as members of Parlia-

ment but cannot vote on constitutional matters or expenditures of funds. The maximum term of Parliament is 5 years. NMPs serve for 2Â˝-year terms. In the May 7, 2011 general election, the governing People's Action Party (PAP) won 81 of the 87 elective seats of the 12th Parliament. The opposition Workers' Party won the remaining six seats. There are three NCMPs in the 12th Parliament, two from the Workers' Party and one from the Singapore Peopleâ&#x20AC;&#x2122;s Party. Voting has been compulsory since 1959. Judicial power is vested in the High Court and the Court of Appeal. The High Court exercises original criminal and civil jurisdiction in serious cases as well as appellate jurisdiction from subordinate courts. Its chief justice, senior judge, and 12 judges are appointed by the president. Appeals from the High Court are heard by the Court of Appeal.

Doing Business in Singapore: The Gateway to Southeast Asia

Doing Business in Singapore Political and Economic Environment

President: S.R. NATHAN Prime Minister: LEE Hsien Loong Deputy Prime Minister: TEO Chee Hean

Ministers

Education: HENG Swee Keat

Finance: Tharman SHANMUGARATNAM

Health: GAN Kim Yong

Information, Communications and the Arts: YAACOB Ibrahim

Manpower: Tharman SHANMUGARATNAM

Transport: LUI Tuck Yew

Doing Business in Singapore: The Gateway to Southeast Asia

Doing Business in Vietnam

Ambassador to the United States: CHAN Heng Chee

Doing Business in Thailand

Ambassador to the United Nations: K. V. Vanu Gopala MENON

Doing Business in Philippines

Prime Ministerâ&#x20AC;&#x2122;s Office: LIM Swee Say, S. ISWARAN

Doing Business in Malaysia

Trade and Industry: LIM Hng Kiang

Doing Business in Laos

National Development: KHAW Boon Wan

Doing Business in Brunei Indonesia

Law: K. SHANMUGAM

Then-Workers' Party Secretary General J.B. Jeyaretnam (who died in 2008) became the first opposition party member of Parliament in 15 years when he won a 1981 by-election. Opposition parties gained small numbers of seats in the general elections of 1984 (2 out of 79), 1988 (1 of 81), 1991 (4 of 81), 1997 (2 of 83), 2001 (2 of 84), 2006 (2 of 84), and 2011 (6 of 87). Meanwhile, the PAP's share of the popular vote in contested seats decreased from 75% in 2001 to 60.1% in 2011. In the 2011 election, opposition parties together contested 82 of the 87 seats, the largest number ever.

Doing Business in Cambodia

Home Affairs: TEO Chee Hean

Doing Business in Brunei Darussalam

Foreign Affairs: K. SHANMUGAM

Guide to Our Services

Environment and Water Resources: Vivian BALAKRISHNAN

Contacts, Market Research and Trade Events

Defense: NG Eng Hen

Business Travel

Community Development, Youth and Sports (Acting): CHAN Chun Sing

The ruling political party in Singapore, reelected continuously since 1959, is the People's Action Party (PAP), headed by Prime Minister Lee Hsien Loong. The PAP has held the overwhelming majority of seats in Parliament since 1966, when the opposition Barisan Sosialis Party (Socialist Front), a left-wing group that split off from the PAP in 1961, resigned from Parliament, leaving the PAP as the sole representative party. In the general elections of 1968, 1972, 1976, and 1980, the PAP won all of the seats in an expanding Parliament.

Trade and Project Financing

Deputy Prime Minister: Tharman SHANMUGARATNAM

POLITICAL CONDITIONS

Trade Investment Regulations and Climate Standards

PRINCIPAL GOVERNMENT OFFICIALS

Singapore maintains an embassy in the United States at 3501 International Place NW, Washington, DC 20008 (tel. 202/537-3100, fax 202/537-0876).

Selling U.S. Leading Sectors Products and for U.S. Export Services and Investment

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

Image courtesy of the Singapore Tourism Board

Guide to Our Services Doing Business in Brunei Darussalam Doing Business in Cambodia Doing Business in Brunei Indonesia Doing Business in Laos Doing Business in Malaysia Doing Business in Philippines Doing Business in Thailand Doing Business in Vietnam

ECONOMY Singapore's strategic location on major sea lanes and its industrious population have given the country an economic importance in Southeast Asia disproportionate to its small size. Upon independence in 1965, Singapore was faced with a lack of physical resources and a small domestic market. In response, the Singapore Government adopted a probusiness, pro-foreign investment, exportoriented economic policy framework, combined with state-directed investments in strategic government-owned corporations. Singapore's economic strategy proved a success, producing

real growth that averaged 7.9% from 1965 to 2009. The worldwide electronics slump in 2001 and the outbreak of severe acute respiratory syndrome (SARS) in 2003 dealt blows to the economy, but growth bounced back each time, driven by world demand for electronics, pharmaceuticals, other manufactured goods, and financial services, particularly in the economies of its major trading partners--the United States, the European Union, Japan, and China, as well as expanding emerging markets such as India. The global financial crisis of 2008 and 2009 had a sharp impact on Singapore's open, trade-oriented

Doing Business in Singapore: The Gateway to Southeast Asia

Contacts, Market Research and Trade Events

Manufacturing (including construction) and services are the twin engines of the Singapore economy and accounted for 26.3% and 69.1%, respectively, of Singapore's gross domestic product in 2009. The electronics and biomedical manufacturing industries lead Singapore's manufacturing sector, accounting for 30.6% and 20.8%, respectively, of Singapore's manufacturing output in 2009. To inject new life to the tourism sector, the government in April 2005 approved the development of two casinos that resulted in investments of more

Business Travel

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

Trade and Project Financing

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

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than $5 billion. Las Vegas Sands' Marina Bay Sands Resort opened for business in April 2010, while Genting International's Resort World Sentosa opened its doors in February 2010.

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

which includes Brunei, Chile, and New Zealand.

Trade, Investment, and Aid Singapore's total trade in 2009 amounted to $513.9 billion, a dip of 19.4% from 2008. In 2009, Singapore's imports totaled $245 billion, and exports totaled $269 billion. Malaysia was Singapore's main import source country, as well as its second-largest export market, absorbing 11.5% of Singapore's exports, after Hong Kong (11.6%). Other major export markets include the United States (6.5%), China (9.7%), and Indonesia (9.7%). Singapore was the 13th-largest trading partner of the United States in 2009. Re-exports accounted for 48.9% of Singapore's total sales to other countries in 2009. Singapore's principal exports are petroleum products, food and beverages, chemicals, pharmaceuticals, electronic components, telecommunication apparatus, and transport equipment. Singapore's main imports are aircraft, crude oil and petroleum products, electronic components, consumer electronics, industrial machinery and equipment, motor vehicles, chemicals, food and beverages, electricity generators, and iron and steel. Singapore continues to attract investment funds on a large scale despite its relatively high-cost operating en-

vironment. The United States leads in foreign investment, accounting for 11.2% of new actual investment in the manufacturing sector in 2008. As of 2009, the stock of investment by U.S. companies in the manufacturing and services sectors in Singapore reached about $76.86 billion (total assets). The bulk of U.S. investment is in electronics manufacturing, oil refining and storage, and the chemical industry. About 1,500 U.S. firms operate in Singapore. The government also has encouraged firms to invest outside Singapore, with the country's total direct investments abroad reaching $210.7 billion by the end of 2008. China was the top destination, accounting for 16.2% of total overseas investments, followed by the United Kingdom (8.4%), Malaysia (8.2%), Hong Kong (6.9%), Thailand (6.3%), Indonesia (6.1%), Australia (5.8%), and the United States (5.0%).

Labor As of June 2010, Singapore had a total labor force of about 3.053 million. The National Trades Union Congress (NTUC), the sole trade union federation, comprises almost 99% of total organized labor. Extensive legislation covers general labor and trade union matters. The Industrial Arbitration Court handles labormanagement disputes that cannot be

Doing Business in Singapore: The Gateway to Southeast Asia

Doing Business in Singapore Political and Economic Environment

of Labor. The Singapore Government has stressed the importance of cooperation between unions, management, as the early resolution of disputes. There have been no strikes since 1986. Singapore has enjoyed virtually full Amid slower economic growth in 2003, end of June 2008, the unemployment global economic crisis and the economyâ&#x20AC;&#x2122;s contraction, unemployment as of

However, the overall and resident unemployment rate dipped to 2.2% and of the Singapore Governmentâ&#x20AC;&#x2122;s job-savglobal economy. Overall, some of Singaporeâ&#x20AC;&#x2122;s unemployment is attributable as low-skill manufacturing operations number of foreign workers in Singapore labor shortages. Foreign workers commajority of these are unskilled workers.

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prise 35% of the labor force; the great

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has increased rapidly to cope with

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have moved overseas. Since 1990, the

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to structural changes in the economy,

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ing measures and gradually improving

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3.2%, respectively, in June 2010 in view

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

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resident unemployment reached 4.8%.

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end-September 2009 rose to 3.3% and

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rate was 2.2%. In tandem with the

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unemployment rose to 4.0%. As of the

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employment for long periods of time.

Situated at the crossroads of international shipping and air routes, Singapore is a center for transportation and communication in Southeast Asia. Singapore's Changi International Airport is a regional aviation hub served by 80 airlines. A third terminal opened in January 2008, and a dedicated low-cost terminal for budget airlines has operated since 2006. The Port of Singapore is the world's busiest for containerized transshipment traffic. The country also is linked by road and rail to Malaysia and Thailand.

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and government ("tripartism"), as well

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resolved informally through the Ministry

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Doing Business in Singapore: The Gateway to Southeast Asia

Doing Business in Singapore

Image courtesy of the Singapore Tourism Board

DEFENSE Singapore relies primarily on its own defense forces, which are continuously being modernized. The defense budget accounts for approximately 33% of government operating expenditures (or 4.3% of GDP). A career military force of 55,000 is supplemented by 300,000 persons, either on active National Service, which is compulsory for ablebodied young men, or on Reserve. The Singapore Armed Forces engage in joint training with Association of Southeast Asian Nations (ASEAN) countries and with the United States, Australia, New Zealand, and India. Singapore also conducts military training on Taiwan. Singapore is a member of the FivePower Defense Arrangement together with the United Kingdom, Australia, New Zealand, and Malaysia. The arrangement obligates members to consult

in the event of external threat and provides for stationing Commonwealth forces in Singapore. Singapore has consistently supported a strong U.S. military presence in the AsiaPacific region. In 1990, the United States and Singapore signed a memorandum of understanding (MOU) which allows United States access to Singapore facilities at Paya Lebar Airbase and the Sembawang wharves. Under the MOU, a U.S. Navy logistics unit was established in Singapore in 1992; U.S. fighter aircraft deploy periodically to Singapore for exercises, and a number of U.S. military vessels visit Singapore. The MOU was amended in 1999 to permit U.S. naval vessels to berth at the Changi Naval Base, which was completed in early 2001. In July 2005, the United States and Singapore signed a Strategic Framework Agreement to expand cooperation in defense and security.

Doing Business in Singapore: The Gateway to Southeast Asia

Doing Business in Singapore

The U.S. Ambassador to Singapore David Adelman

Political and Economic Environment Contacts, Market Research and Trade Events Guide to Our Services Doing Business in Brunei Darussalam Doing Business in Cambodia Doing Business in Brunei Indonesia Doing Business in Laos Doing Business in Malaysia Doing Business in Philippines Doing Business in Thailand Doing Business in Vietnam

Doing Business in Singapore: The Gateway to Southeast Asia

The U.S. Government sponsors visitors from Singapore each year under the International Visitor Program. The U.S. Government provides Fulbright awards to enable selected American professors to teach or conduct research at the National University of Singapore and

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Singapore is nonaligned. It is a member of the United Nations and several of its specialized and related agencies, and also of the Non-Aligned Movement and the Commonwealth. Singapore has participated in UN peacekeeping/observer missions in Kuwait, Angola, Namibia, Cambodia, and Timor-Leste. Singapore supports two Provincial Reconstruction Teams and provides refueling aircraft in support of international efforts in Afghanistan. Singapore strongly supports regional and international anti-piracy efforts, and has undertaken a leadership

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FOREIGN RELATIONS

The United States has maintained formal diplomatic relations with Singapore since it became independent in 1965. Singapore's efforts to maintain economic growth and political stability and its support for regional cooperation harmonize with U.S. policy in the region and form a solid basis for amicable relations between the two countries. The United States and Singapore signed a bilateral free trade agreement on May 6, 2003; the agreement entered into force on January 1, 2004. The growth of U.S. investment in Singapore and the large number of Americans living there enhance opportunities for contact between Singapore and the United States. Many Singaporeans visit and study in the United States. Singapore is a Visa Waiver Program country.

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U.S.-SINGAPORE RELATIONS

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role in anti-piracy efforts in the Gulf of Aden. Singapore supports the concept of Southeast Asian regionalism and plays an active role in ASEAN, the ASEAN Regional Forum, and the Asia Pacific Economic Cooperation (APEC) forum.

the Institute of Southeast Asian Studies. It awards scholarships to outstanding Singaporean students for graduate studies at American universities and to American students to study in Singapore. The U.S. Government also sponsors occasional cultural presentations in Singapore. The East-West Center and private American organizations, such as the Asia and Ford Foundations, also sponsor exchanges involving Singaporeans. PRINCIPAL U.S. EMBASSY OFFICIALS Ambassador: David Adelman Deputy Chief of Mission: Louis Mazel Economic/Political Counselor: Joel Ehrendreich Senior Economic Officer: Manu Bhalla (Arriving August 2011) Senior Political Officer: Deanna G. Kim (Arriving August 2011) Consul: Craig Bryant (Arriving September 2011) Public Affairs Counselor: Eric Watnik (Arriving September 2011) Commercial Counselor: Patrick Santillo (Arriving August 2011) Management Counselor: Susan Niblock (Arriving July 2011) Defense Attache: John Wood Financial Attache (Southeast Asia): Seth Bleiweis

The U.S. Embassy in Singapore is located at 27 Napier Road, Singapore 258508 (tel. 65-6476-9100, fax 65-6476-9340). The Embassy's website is at http://singapore.usembassy.gov.

TRAVEL AND BUSINESS INFORMATION The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable. For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel. state.gov, where the current Worldwide Caution, Travel Alerts, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov. For ad-

Doing Business in Singapore: The Gateway to Southeast Asia

Doing Business in Singapore Political and Economic Environment Doing Business in Brunei Darussalam Doing Business in Cambodia Doing Business in Brunei Indonesia Doing Business in Laos Doing Business in Malaysia Doing Business in Philippines Doing Business in Thailand

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

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Doing Business in Singapore: The Gateway to Southeast Asia

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

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

Further Electronic Information

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The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4-USA-PPT (1-877-487-2778); TDD/TTY: 1-888-8747793. Passport information is available 24 hours, 7 days a week. You may speak with a representative Monday-Friday, 8 a.m. to 10 p.m., Eastern Time, excluding federal holidays.

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

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

Georgia. A hotline at 800-CDC-INFO (800-232-4636) and a web site at http:// wwwn.cdc.gov/travel/default.aspx give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. The CDC publication "Health Information for International Travel" can be found at http://wwwn.cdc.gov/travel/ content YellowBook.aspx.

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

The American Chamber of Commerce in Singapore by the numbers...

38 4,500 years of experience leading the business community

members

700

120

companies

committee meetings a year

160

events a year

committees

Membership is open to companies of all nationalities.

For more information visit www.amcham.org.sg

Itâ&#x20AC;&#x2122;s easy to understand why 78% of Fortune 500 companies based in Singapore are AmCham members and 53% of our members have been with us for 5 years or more.

This is the end of the preview for Doing Business in Singapore, The Gateway of Southeast Asia. Each company with an AmCham membership receives a complimentary issue of this publication every year.

To purchase a copy (at S$20 + GST) Please e-mail Dorcas Foo at dfoo@amcham.org.sg. For advertising enquiries Please e-mail April Chan at achan@amcham.org.sg For editorial enquiries Please e-mail Liyana Othman at lothman@amcham.org.sg