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Singapore INTRODUCTION • • • • •
Dynamic International Hub and Ideal Base for Business Singapore’s Fact File International Chamber of Commerce EuroCham Long-Standing Partnership with the EU
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BUSINESS & INVESTMENTS OPPORTUNITIES • • • • • • •
Thriving, Diversified, Globally Minded Economy Economic Development Board Top Asian FDI Choice International Enterprise Singapore Tetra Pak ISI Emerging Markets Singapore Infocomm Technology Federation
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FINANCE, BANKING & INSURANCE • Financial Services Sector Continues to Expand • General Insurance Association
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TRADE & INDUSTRY • • • • • • •
Global Trade Hub Enhances its Advantages Land Transport Authority OM Holdings Global Hub for Commodities Trading Yongnam Holdings Limited Centre for Global Rubber Trade R1 International
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TRANSPORT & LOGISTICS • • • • •
South-East Asia’s Transport and Logistics Hub Ideal Asian Business Hub Maritime Port Authority Neptune Orient Lines X-Press Container Line
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AGRICULTURE & FOOD INDUSTRY • Regional Centre for Food Industry • ABR Holdings Limited
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RESEARCH & DEVELOPMENT • Global Centre for R&D • A*STAR
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TOURISM • New Integrated Resorts to Help Keep Visitor Numbers High 42 •Useful addresses 43
Production Co-ordinators: Cindy Thys, Heleen Castro Editorial: Emily Emerson-Le Moing Design: Martine Vandervoort, Carine Thaens, Walter Vranken, Johny Verstegen, Dirk Van Bun
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Introduction
Singapore, an island state at the tip of the Malay Peninsula, has grown from a small British colony to become a thriving economic powerhouse, global financial services centre, and one of the world’s busiest ports.
Dynamic International Hub and Ideal Base for Business
The city-state became independent from Britain in 1959 and separated from the Federation of Malaysia in 1965. Ever since, Singapore has been carving out a niche for itself as a link between East and West and a key hub for business and trade in South-East Asia and beyond.
Singapore is a colourful blend of tropical paradise and cutting-edge business centre. Skyscrapers and traditional colonial architecture meet in downtown Singapore, while parks and gardens flourish along with high-tech conference centres – Singapore has been ranked Asia’s top convention location for 23 straight years – and a wide range of cultural attractions.
An international trading centre for centuries, Singapore has a rich multilingual culture to which people from many nations have contributed. Thanks to Singapore’s heritage as a British colony, English is widely spoken.
Singapore’s government is a parliamentary republic led by the Cabinet, headed by the Prime Minister; Lee Hsien Loong has held this post since
2004. The government is known for its stability and for its pro-business outlook. Hard hit by the Asian financial crisis in the late 1990s, Singapore typically responded with a pro-active approach. The government intensified spending and economic restructuring to promote innovation and economic diversity with a focus on services and higher value added activities. The aim was to foster a knowledge based economy. The strategy has worked well for Singapore, and the process is continuing. Various sectors, including financial services, have been liberalised in an effort to increase overall efficiency, and a number of bilateral free-trade agreements have been negotiated to improve international market access for Singapore based companies and to encourage foreign investment. Singapore is known for its skilled human resources, highly developed infrastructure, strategic location on the key trade route linking China and India, commitment to stability, and an international outlook. Singapore is also a strong supporter of on-going development in Asia and is a key member of the Asian Development Bank. With per capita GDP equal to that of many of the world’s most prosperous countries, excellent quality of life, and world-class facilities and services, including high quality health care and education, Singapore has positioned itself as an ideal business base for foreign investors in Asia.
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Introduction
Singapore’s Fact File Total land area:
699 sq km, comprising one main island at the tip of the Malay Peninsula and several islets Climate: Tropical, with relatively uniform temperature, high humidity and abundant rainfall Average daily temperature: 25 to 31 degrees C Population: 4.6 million (2008 estimate) Racial mix: Chinese (76%), Malay Malay (13.7%), and Indian (8.4%), others Population Density (2005): 6,208 per sq km Official Languages: English, Mandarin Chinese, Malay (the national language), Tamil Religions: Buddhism, Islam, Christianity, Taoism, Hinduism General Literacy rate (2005): 95% Literacy in two or more languages: 56% Currency: Singapore dollar Government: parliamentary republic with an elected parliament, a president and a cabinet headed by the Prime Minister (Lee Hsien Loong since 2004) Time zone: UTC+8
Economy at a Glance GDP (purchasing power parity): GDP real growth rate: GDP per capita: GDP contributions by sector: Labour force: Labour force by occupation:
US$228.1 billion (€155.3 billion) 7.7% US$49,700 (€33,849) services (68.8%), industry (31.2%) 2.7 million financial, business, and other services (42%); manufacturing (21%); transport and communications (7%), construction (5%), other (25%) Inflation rate (consumer prices): 2.1% Government revenues: US$27 billion (€18 billion) Expenditures: US$21.5 billion (€14.6 billion) Agricultural products: rubber, copra, fruit, orchids, vegetables; poultry, eggs, fish, ornamental fish Key industries: electronics, chemicals, financial services, oil drilling equipment, petroleum refining, rubber processing and rubber products, processed food and beverages, ship repair, offshore platform construction, life sciences, entrepot trade Industrial production growth rate: 7.4% Current account balance: US$39.16 billion (€26.67 billion) Exports: US$450.6 billion (€306.9 billion) Leading exports: machinery and equipment (including electronics), consumer goods, chemicals, mineral fuels Leading export markets: Malaysia (12.9%), Hong Kong (10.5%), Indonesia (9.8%), China (9.7%), United States (8.9%), Japan (4.8%), Thailand (4.1%) Imports: US$396 billion (€270 billion) Leading imports: machinery and equipment, mineral fuels, chemicals, foodstuffs Leading sources of imports: Malaysia (13.1%), United States (12.5%), China (12.1%), Japan (8.2%), Taiwan (5.9%), Indonesia (5.6%), South Korea (4.9%) Foreign reserves: US$163 billion (€111 billion) External debt: US$25.59 billion (€17.43 billion) Stock of direct foreign investment at home: US$214.5 billion (€146.1 billion) Stock of direct foreign investment abroad: US$111.2 billion (€75.3 billion) (Statistics from 2007 unless otherwise indicated)
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Introduction
Singapore International Chamber of Commerce
International Chamber Promoting Dialogue and Partnerships The Singapore International Chamber of Commerce (SICC) is the oldest Chamber of Commerce in Asia, founded in 1837. Today, SICC has over 800 member companies, 60% of which are foreign, from 40 different countries. SICC members generate around 65% of Singapore’s total corporate turnover.
Since most of its members are larger companies, SICC focuses on these companies’ needs while also serving smaller and medium-sized enterprises. SICC organises a variety of events, including sectorspecific activities designed to promote networking among members and to help develop new business opportunities. SICC also serves as a liaison between the government and the private sector, and is one of five local business associations authorized to provide various trade and export documents. Singling out particularly promising business sectors in Singapore today, SICC’s Chief Executive Phillip Overmyer cites pharmaceuticals, environmental technology, media and broadcasting, transport and logistics, and aviation services, all of which offer strong investment potential and partnership possibilities. “Singapore is looking for partners,” he adds. Known for its efficiency, reliability, stable economy and business-friendly environment, Singapore is recognised as one of the world’s top business hubs. Challenges include promoting local entrepreneurship and continuing to attract foreign investment. Phillip Overmyer concludes, “The prime minister is pushing for massive changes to make Singapore a truly global city. One of the most important developments is the government’s great interest in learning about new ideas, such as those presented by the business community. Singapore is open to foreign talent, and has become the most inviting place to live in.”
Phillip Overmyer, Chief Executive SICC
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Introduction
EuroCham
Local Chamber Promotes Increased Ties between EU and Singapore EuroCham is forging stronger links between Singapore and Europe. The organization represents all the European chambers of commerce in Singapore, which have a total of around 2,500 members. Joachim Ihrcke, President, explains, “EuroCham focuses only on activities with a true European angle. One example is the free-trade agreement between Europe and Singapore that is currently being negotiated.”
According to Ihrcke, an impetus for this agreement is the free-trade agreement between Singapore and the US that went into force in 2004; the EUSingapore free-trade agreement will help keep the EU competitive within Singapore. “Especially for products with a relatively short shelf life, it is important that regulations and certifying processes are not too time-consuming and expensive. The free-trade agreement would resolve these issues,” Ihrcke points out. EU companies can benefit from using Singapore as a base for operations in the ASEAN market, which has a population of around 600 million and is one of the world’s fastest-growing regional markets. Singapore already attracts the biggest share of foreign direct investment in ASEAN, for a total of around €6 billion per year. Singapore is attractive as a regional business base because of its outstanding infrastructure,
Joachim Ihrcke, President EuroCham
highly educated workforce, transparent regulatory environment, and attractive lifestyle. “Singapore is the natural Hub for ASEAN. For example, environmental engineering projects need a critical size in order to demonstrate their viability. This means that the demand of several countries has to be pooled to make one single project. EuroCham is lobbying to get European investors to Singapore, design the projects here and later decide in which country to build,” Joachim Ihrcke says. The EU is also becoming a focus of Singaporean investors and companies. “Singaporeans are turning towards Europe, searching for industries in which they can use their existing machines and expertise, including the automotive, medical-technology and aircraft-manufacturing sectors,” Joachim Ihrcke explains.
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Introduction
Long-Standing Partnership with the EU operation” agreement wherein the EU and Singapore join forces in projects in lesser developed ASEAN nations. The third SECC meeting was held in Singapore in 2006. In 2002, the EU opened an EU Delegation office in Singapore to further promote bilateral ties, and in 2007 the first EU-ASEAN Summit took place in Singapore. At a high-level EU-ASEAN meeting held in Singapore in July this year, discussions focused on cooperation and partnership agreements between the two economies, including the potential for a free-trade agreement. Singapore has long aimed to establish its own free-trade agreement with the EU.
Base for European business in Asia Singapore has close, long-standing ties with Europe, both economically and culturally. It has become the key trade link between Europe and Asia, serving as both a direct trade partner for the EU and for individual European nations, and as a trans-shipment hub for Europe-Asia trade. In fact, Singapore has more trade with Europe than any other ASEAN nation, and since 2005 the EU has been Singapore’s top trading partner after Malaysia. Total EU-Singapore bilateral trade totalled US$97.5 billion (€66.8 billion) last year, a rise of 6.8% over 2006.
Close political ties Political relations between Europe and Singapore are close and productive. In 2001 the first Singapore-European Community Consultations (SECC) were held to promote an open exchange concerning issues of mutual interest at the bilateral, regional and international levels. At the second SECC meeting held in Brussels in 2003, the two sides reached a “trilateral co-
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In addition to serving as a trade hub, Singapore is a leading base for European business in the Asia-Pacific region. The German Centre for Industry and Trade, the German-Singapore Chamber of Industry and Commerce, the Singapore-British Business Council and the France-Singapore Business Council help European small and medium-sized enterprises launch operations in Singapore and the region. There are now more than 7,000 European companies in Singapore, and the EU is Singapore’s second-biggest foreign investor after Malaysia. Singapore and Europe also work together in cultural, research and development, education, health, and other projects, as well as collaborate on security issues, energy and climate change. One current cultural project is “Encore! The European Season”, which showcases arts and cultural events; it is running from May to December 2008 in Singapore. Singapore also plays host to European cultural organisations such as the Asia-Europe Foundation (ASEM’s only permanent institution), the Goethe-Institut, Italian Cultural Institute, Alliance Française de Singapour, and the British Council.
Thriving, Diversified, Globally Minded Economy Singapore has traditionally built on its strategic location and port facilities to develop a diverse, tradefocused and very globally oriented economy. In recent years, the country has been stressing value added production, a knowledge economy, and entrepreneurship. The strategy has paid off, and Singapore’s economy is thriving.
7.5% growth in 2007 In spite of global economic pressures from rising oil prices, the US sub-prime mortgage crisis, inflation and currency instabilities, Singapore’s economy grew by 7.5% in 2007, with both large and small firms reporting increased turnover and profits. The best performing sectors in Singapore last year were construction, communications, transport and storage, financial services, and hotels and food, all of which registered at least 20% growth in overall turnover in 2007. The construction sector alone boosted turnover by an impressive 51.3%, after negative results in 2006.
Precision instruments manufacturing on growth curve The manufacturing sector reported an 8.3% decline over the year, however, mainly due to a slowdown in turnover of electrical and electronic products. On the other hand, the new field of precision instruments manufacturing achieved strong growth to reach 2.1% of total manufacturing turnover compared to 1.1% in 2006. Precision instruments manufacturing is involved in the electronics, transport, medical technology, and other sectors, and is expected to expand further through increasing investments in the transport
engineering, oil and gas, and medical technology industries. In the local property market, smaller and medium sized enterprises reported 14.1% growth in turnover in 2007 (€248.4 million). Meanwhile the financial services sector grew by 17% and wholesale trade by 6.3% over the year. Investment and stockbroking smaller and medium-sized enterprises accounted for 74.9% of total turnover in the financial services sector. The communications, transport and storage sector reported an impressive 20.3% growth over the year to reach US$1.4 billion (€953.5 million) in turnover.
Outlook for 2008 Increasing operating costs, especially in the face of rising oil prices, along with reduced consumer spending in the US as a result of the sub-prime mortgage crisis, are likely to put pressure on most Singaporean companies’ margins this year. On the plus side for Singapore’s economy, however, rising oil prices will boost the country’s oil and gas sector, while continued growth throughout the region is expected to benefit Singapore’s services sector throughout the year. The local tourism sector is continuing to grow this year, stimulated by major events like the Singapore Formula One Grand Prix in September.
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Business & Investment Opportunities
Economic Development Board
Investors’ Partner in Singapore Singapore’s Economic Development Board (EDB) is playing a crucial role in strengthening Singapore’s position as a leading global business hub. Beh Swan Gin, Managing Director, explains, “EDB is responsible for the health of about 40% of Singapore’s economy.”
When EDB was established in 1961, its key goal was to create good jobs for locals at a time of high unemployment. Singapore and EDB have come a long way since then. “We focused on developing the skills of our people, and now we are definitely moving towards a knowledge intensive economy,” Beh Swan Gin points out.
Testing ground for innovative ideas EDB has around 450 projects currently in the works, in a wide range of growth sectors which include renewable energies. EDB focuses on capital intensive, knowledge intensive and innovation intensive projects. “We look at how we can help companies find solutions for issues affecting people all over the world. Companies can test new business concepts, innovative products and solutions for today’s urban environments, all in Singapore. Singapore has a large middle class with sophisticated consumer preferences, and a population base that is a microcosm of Asia,” Beh Swan Gin says. EDB has offices in London, Frankfurt, Milan, Stockholm, Paris and Moscow as well as in New York. “Our offices help companies enter Asian markets,” Beh explains. EDB’s sister agency, SPRING, assists local small and medium sized firms (SMEs), and EDB welcomes contacts with foreign SMEs as well. EDB also works with the Ministry of Manpower to bring top quality human resources and new businesses to Singapore. EDB sometimes co-invests in projects but only in a minority capacity during start up.
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Beh Swan Gin, Managing Director EDB
Singapore is an ideal business base, Beh Swan Gin believes, because it offers reliability, good corporate governance practices, zero tolerance of corruption, world-class infrastructure, knowledge of both Asia and the West, and excellent quality of life. Beh Swan Gin concludes, “Investors have been consistently impressed by the Singapore government’s commitment to create world-class conditions and capabilities for businesses to thrive. EDB’s role is to help you enjoy a quick start-up and to make your operations a success. We deliver on our promises.”
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Business & Investment Opportunities
According to the European Development Bank, Singapore’s prospects for foreign direct investment continue to be bright in 2008 thanks to the country’s strategic location, excellent infrastructure, pro-business environment and economic stability.
Top Asian FDI Choice
Europe is the top foreign investor in Singapore by far, accounting for two-fifths of foreign direct investment in 2005. Within Europe, the UK was the top investor in Singapore that year (€34 billion), with the Netherlands in second place (€22 billion). Other top investors include Japan (€28 billion in 2005) and the US (€29 billion). In 2007, a number of key projects were launched by foreign investors in Singapore that demonstrate the country’s on-going investment appeal. ExxonMobil Chemical is building its second world-scale petrochemical project in Singapore; the new project will be ExxonMobile’s biggest petrochemicals operation in the world. In other projects, Neste Oil (Finland) has announced it will invest approximately S$1.2 billion (€575,1 million) in building a plant in Singapore to produce NExBTL renewable diesel; Swiss pharmaceutical giant Novartis has announced plans for a new S$1 billion (€479 million), large-scale biotechnology facility in Singapore that will be Singapore’s largest vertically integrated investment to date; Rolls-Royce (UK) has selected Singapore for its first civil aero-engine (Trent) assembly and test facility in Asia for the Boeing 787 (Trent 1000) and Airbus A350XWB (Trent XWB); Heptagon Oy. (Switzerland), which produces advanced optical products, recently chose Singapore as its regional headquarters as well as the location for its first manufacturing facility; and logistics leader TNT
(Netherlands) has opened its largest life sciences-focused regional distribution centre in Singapore near Changi Airport.
Asian hub for research and manufacturing In other news, Sony (Japan) has set up a US$200 million (€136 million) lithium ion polymer battery plant in Singapore, Sony’s first in the South East Asia region; and Singapore was chosen as the location for a new facility for FormFactor (US), the world’s largest manufacturer of wafer probe cards; an LED manufacturing facility for Philips Lumileds (Netherlands); the new international headquarters and technology development centre for Significant
Innovation-Intensive Projects PayPal (US); a US$400 million (€272 million) research and development centre for Infineon Technologies (Germany); and the IT regional operations centre and Asia-Pacific research and development headquarters for Bosch (Germany). Singapore will also have the world’s biggest integrated solar manufacturing complex, by Renewable Energy Corporation ASA (Norway), and solar cell equipment plants by Oerlikon Solar (Switzerland) and Solar Energy Power (Germany). These are only a few of the recent foreign investment projects that illustrate Singapore’s outstanding attractions as a business base.
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IE Singapore
Helping Local Enterprises Go Global Ted Tan, deputy CEO, is in charge of overseeing opportunities for Singapore-based companies in the Americas, the Middle East, Europe and Africa. He says, “Our mission is to promote the international expansion of Singapore based enterprises and also to promote international trade.”
IE Singapore provides a wide range of services for local companies, including small and medium sized enterprises who are ready to expand their business into overseas markets. One creative initiative is an online business matching portal called BuySingapore (www.buysingapore.com) that helps match up buyers and sellers from Singapore and abroad. Since its launch in November 2006, more than 14,000 foreign companies have registered with the portal, collectively providing more than 20,000 foreign business and trade leads. Some 100,000 Singapore companies have also had their profiles listed on the portal, making it one of the largest and most dynamic information databases on Singapore business today. The organisation serves enterprises from key industry clusters, which are business services (including education and health care), electronics and precision engineering, environmental services, information/communications technology, infrastructure, retail and lifestyle, and transport/ logistics. IE Singapore’s Global Trader Program which encourages global trading companies to use Singapore as their regional global base, now has over 200 companies from over 20 countries under the GTP based in Singapore – this number is up from 25 companies in 1989. These companies span various industries that range from energy to agriculture commodities and electronics; they have created significant spin-offs generating over S$5 billion in local total business spending and contributing over S$6 billion in VA in 2006.
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Ted Tan, deputy CEO IE Singapore
IE Singapore has a network of over 30 offices all over the world, including London, Frankfurt and Moscow. Ted Tan says, “For European companies, Singapore’s automotive industry is a great choice for outsourcing, since many Singapore companies specialise in providing precision engineering at attractive costs. European companies can also leverage on Singapore’s network of production centres throughout Asia.” IE Singapore has had many success stories in helping local companies go global, including OSIM, which began as a small manufacturer of massage chairs and has grown to become an international brand. IE Singapore also organises networking events and works hard to promote Singapore’s advantages as a business base. “The Singapore brand is a promise to deliver,” Ted Tan concludes.
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Business & Investment Opportunities
Tetra Pak
Global Packaging Leader Focusing on Adding Value Global Leader Carton Packaging provider, Tetra Pak, established a presence in Singapore 27 years ago, and its production facility became one of Tetra Pak’s biggest manufacturing plants worldwide. Tetra Pak Singapore supplies 60% of the packaging products for markets in South and Southeast Asia, as well as for about 10 other key markets outside the region, including Japan, Korea and Taiwan.
segments of this industry, including support and advising regional dairy farmers on how to improve quality and produce more milk and diversify into new products. Tetra Pak has also earned consumers’ trust through living up to its motto: “Protect what is good.” High standards of quality and hygiene, extended to the whole processing and packaging solutions provide food safety conditions for it customers and consumers.”
Alberto Tureikis, Supply Chain Director Tetra pak
The company has been expanding its portfolio and now offers hundreds of items in a wide range of sizes, shapes, printing options and types. Last year Tetra Pak was the winner of Singapore’s prestigious Maxa Award for Overall Manufacturing Excellence. Alberto Tureikis, Supply Chain Director for South and South East Asia, says that “Tetra Pak’s Singapore growth strategy is to focus on high-end, niche segments.” He adds, “We are working with our customers to develop and create value added products, for example through the addition of calcium or vitamins, and focused ingredients for particular population or age groups. Special products deserve special packaging, with a special look and feel that will make them stand out.”
Tetra Pak has developed capabilities to adapt its production lines, several times each day, to meet customers’ needs. By raising products’ profiles in the marketplace through distinctive packaging, Tetra Pak can help manufacturers succeed in sophisticated niche markets that bring them higher revenues.
Tetra Pak Singapore is strongly committed to recycling and energy conservation, and is considered a local benchmark for environmentally friendly manufacturing. Commenting on Singapore as a business base, Alberto Tureikis says, “Singapore offers supply chain infrastructure and logistics services which you don’t find anywhere else in the world, along with a supportive government and a hardworking labour force.”
World class manufacturing – excellence in operational management approach – used for the company worldwide, has Singapore as one of best practices model of implementation. The global Tetra Pak group is present in more than 165 countries and leads the carton packaging market for liquid food, offering solutions for the whole processing, packaging and distribution. It is “present in the whole food chain,” Alberto Tureikis says, pointing out initiatives on different
www.tetrapak.com
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Business & Investment Opportunities
ISI Emerging Markets ISI’s online product suite includes • EMIS: Emerging Markets Information Service aggregates content such as full-text news articles, financial statements, industry analyses, equity quotes, macroeconomic statistics, and market-specific information. http://www.securities.com/ifis/index.html • CEIC Data provides databases focusing on Asian and Emerging market macro-economic, industrial and financial time-series data. http://www.ceicdata.com • IFIS: Islamic Finance Information Service is ISI’s subscription-based electronic information service, designed to meet the unique requirements of Sharia compliant financial industry participants. http://www.ifis.securities.com
Newly launched products include Information on emerging economies can be hard to find, but reliable and current data is vital for making crucial investment decisions. ISI Emerging Markets aims at minimising the difficulties associated with evaluating the attractiveness of emerging markets and adds transparency to these economies. It delivers hard-to-get information on more than 80 emerging markets through its award winning online service, Emerging Market Information Service (EMIS). ISI Emerging Markets offers aggregated content from more than 16,000 publications, via an easy-to-navigate interface, available in 18 languages. ISI Emerging Markets, a subsidiary of Euromoney Institutional Investor PLC, started its coverage of the Asian market with India and China in 1994. Today, its coverage includes 16 Asian markets, profiles over 67,000 Asian companies and covers more than 30 sectors. ISI’s trained customer service provides 24-hour support to its customers, out of its 29 global offices.
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• DealWatch: Emerging Market merger and acquisition intelligence and data that brings you tomorrow’s potential deals today. http://www.securities.com/dw • Compliance Edition: Delivers accurate information on key persons and companies, critical in order to verify customer identity and streamline the enhanced due diligence process. http://www.securities.com/emis_compliance
Pradeep Fernandes, ISI’s regional manager for Southeast Asia, based in Singapore, comments, “ISI’s growth would involve the expansion of our proprietary coverage, enhancement of our core company and industry information along with continued focus on excellent customer relations. Additionally, ISI will continue to launch new related products (such as IFIS & DealWatch) and seek new acquisition opportunities to enhance our service.”
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Business & Investment Opportunities
Singapore Infocomm Technology Federation
Promoting ICT Sector at Home and Abroad Singapore Infocomm Technology Federation (SiTF) is a non-profit organisation with more than 400 member companies that supports the local information and communications technology (ICT) sector. As Pek Yew Chai, Immediate Past Chairman, explains, “SiTF is home to most of the ICT companies in Singapore. We work together to ensure that the ICT industry remains vibrant.”
SiTF also serves as a liaison between its members and the government, and also encourages local companies to employ ICT to enhance their competitiveness. SiTF works closely with trade organisations and other groups, both locally and internationally. SiTF recently opened another office in China and collaborates with the Infocomm Development Authority, and International Enterprise Singapore in the overseas markets eg. in Dubai, Qatar and other Middle East markets. “Many countries are keen to find out what Singapore can do for them in terms of e-government, since we are ranked number one in the world in this area,” Pek Yew Chai explains.
Operating internationally under the Infocomm Singapore brand name, SiTF is committed to “showing people overseas that Singapore delivers on its promises,” Pek Yew Chai says. He adds that Singapore’s strong ICT sector and solid ICT regulatory environment are a major attraction for investors. SiTF is currently working to promote Singapore’s creativity and is also working with the government to attract more talent. “We need to include foreigners in our talent base or else we would be restricting our own growth,” Pek Yew Chai says. He adds, “The advantage of working within a multiple-agency industry like Singapore’s ICT sector is that we are able to provide an end-to-end chain.”
Pek Yew Chai, Immediate Past Chairman SiTF
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Finance, Banking & Insurance
Financial Services Sector Continues to Expand A World Bank-IFC report ranked Singapore the most business-friendly economy in the world in 2006, and this year Singapore came in second only to Hong Kong on the Index of Economic Freedom list. Singapore is also ranked number one in ease of doing business. With these stellar attractions for business, it’s no surprise that Singapore has developed a world-class financial services sector.
trading, financial advisory services, and specialised insurance services.
Significant growth for financial services sector
In addition to specialist financial institutions, Singapore is also home to the financial and treasury operations of many international groups, including a large number of Fortune 500 companies.
According to the Singapore Department of Statistics, Singapore’s financial services sector grew by 10.2% in the second quarter of 2008, to reach S$7.73 billion (€3.70 million), a 13.8% rise over the same period last year. Singapore’s development as an international financial centre began in the late 1960s. Today, the country is home to over 600 foreign and local financial institutions offering the full range of financial services, including trade financing, foreign exchange, derivatives products, capital market activities, loan syndication, underwriting, mergers and acquisitions, asset management, securities
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Strong regulatory environment The Monetary Authority of Singapore is the regulator for the banking, insurance, securities and futures industries, and Singapore is recognised as having one of the world’s strongest regulatory environments. It also has a solid corporate governance framework.
The financial sector is dominated by insurance companies and brokers; banking makes up the next most important financial services activity, followed by fund management firms, stockbroker companies, financial advisors, and futures brokers. Banking, foreign exchange and insurance have seen particularly phenomenal growth over the past 20 years. In the thriving insurance sector, Singapore is Asia’s hub and the most popular base in the Asia Pacific region for
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Finance, Banking & Insurance
captive insurance companies. The insurance sector was fully opened to foreign insurers in 2000, and now many of the world’s leading insurance groups are operating in Singapore.
Singapore is also emerging as the most popular Asian location for hedge fund managers for fund start ups. The Singapore Exchange Ltd (SGX) has been accepting listings of hedge funds since June 2006.
Asia’s private banking capital
Resilient in the face of challenges
Thanks to its high quality banking sector, Singapore has carved out a niche for itself as the undisputed private banking capital of Asia. The Monetary Authority of Singapore estimates that more than US$200 billion (€136.21 billion) in private banking assets was being managed in Singapore in 2006; that total has certainly grown.
Singapore’s financial sector has been resilient in the face of major economic downturns in recent years, weathering the Asian crisis in 1997-1998, a sharp drop in electronics exports in 2000-2001, and the outbreak of SARS in early 2003. Analysts cite Singapore’s long history of sound fiscal and monetary policies, long-standing external current account surpluses, significant external assets and reserve positions, healthy corporate sector, high household wealth, and conservative financial regulatory and supervisory practices as the reasons it has managed to overcome domestic and international economic challenges.
Overall, Banker magazine, which named Singapore the “Financial Centre of the Future” in 2005, estimates that Singapore had over S$720 billion (€345 billion) in assets under management as of the end of 2005.
World’s fourth largest foreign exchange trade centre Concerning foreign exchange trading, Singapore is the fourth largest foreign exchange trading centre in the world, and the government’s efforts to boost the Singapore Government Securities (SGS) market have also produced positive results. Outstanding SGS grew from S$20.5 billion (€9.8 billion) in 1996 to S$85.8 billion (€41.1 billion) in December 2006. Singapore is also Asia’s top over the counter derivatives centre, and the eighth largest warrant trading centre in the world. In the commodities market, Singapore is the leading Asia Pacific location for the pricing and trading of oil and rubber. In fact, 20% of the world’s physical oil trading and half the world’s rubber trading takes place in Singapore.
Singapore’s financial sector is preparing itself for any new risks in the future. As Lim Hng Kiang, Deputy Chairman of the Monetary Authority of Singapore, commented in a speech last year, “We must not allow ourselves to get over-confident with our knowledge and analyses of the risks out there. Risks may deviate from expectations. Situations may take unexpected turns. In the face of such uncertainties, being ready is always a good proposition.” Singapore, with its long history of forward-thinking policies and pro-active strategies, has built a strong foundation for its financial services sector that should help the sector continue to weather any shocks.
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Sector
General Insurance Association
Organisation Helps Insurance Firms Thrive Singapore’s General Insurance Association (GIA), which recently celebrated its 40th anniversary, promotes Singapore’s insurance sector and provides a wide range of services for its member companies. Derek Teo, President of the organisation since 2001, has three decades of experience in the insurance sector. He says that one key advantage GIA provides its members is access to a well established network of connections with leading government departments and trade bodies. In addition, GIA can help its members increase their revenues, in part through publicising new insurance products and services. “The association does a great deal of consumer outreach. We will soon launch a claims handling service,” he says. Singapore welcomes competition in the insurance sector, according to Derek Teo. He adds, “Companies considering setting up shop here should not just look at doing business in Singapore, but in using Singapore as a springboard into the rest of the region and even in India. The GIA has the competency to leverage regional business.” The GIA works closely with other insurance associations, including the ASEAN Insurance Council. Derek Teo cites the maritime sector and financial products as having particularly strong potential for Singapore’s insurance companies. He adds, “Insurance is a recession proof business.”
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Global Trade Hub Enhances its Advantages Singapore’s Ministry of Trade and Industry (MTI) announced in mid-August that Singapore’s economy is expected to grow by 4% to 5% in 2008, underpinned in particular by resilient performance in wholesale trade, financial services and business services. The Ministry also announced that Singapore’s total trade grew by an impressive 20.6% in July this year compared to July 2007, indicating that the government’s long term programme to position Singapore as a leading global trade hub is continuing to bear fruit.
Competitive advantages as global trade hub As a free trader and a small and open economy highly dependent on trade, Singapore has been building on its advantages as a global trade hub for many years. Singapore’s competitive attractions include the country’s exceptional infrastructure, both on the logistics side (one of the world’s best equipped and busiest ports, a state-of-the-art international airport with extensive cargo handling facilities, and cutting-edge telecommunications) and on the political and regulatory side. Singapore’s highly developed regulatory environment, business friendly legislation and stable government are respected worldwide.
Singapore’s membership in the Association of South East Asian Nations (ASEAN) – which has had a free trade agreement since 1992 and which has concluded a number of free trade agreements with other markets – is a distinct advantage, and Singapore has also signed many bilateral free trade agreements.
in ensuring that global trade is based on a strong, rule-based multilateral trading system where goods and services can flow freely with minimum impediment. We also support regional initiatives such as APEC, ASEAN and ASEM, which we believe are complementary to the World Trade Organisation process.”
Strategic location
International Enterprise (IE) Singapore is the lead agency under the Ministry of Trade and Industry which spearheads the development of Singapore’s external economic activities and trade. Chong Lit Cheong, CEO, comments, “While we have been busy promoting overseas growth and international trade among our Singapore based companies, we have also been working hard to increase Singapore’s position as a crucial trade hub. Twelve regional trade associations and business chambers joined our IE Hub Programme in 2006 alone, bringing the total number to 40 as of late March 2007. Apart from the foreign trade chambers, more than 260 foreign companies have established Representative Offices in Singapore to explore opportunities in the region and beyond.”
In addition to these attractions, Singapore has a very strategic location with easy access to markets throughout Asia as well as a time zone advantage that makes it a complementary port of call for trade between Asia, the Americas and Europe. The country’s early focus on oil trading has proved a distinct advantage since Singapore is now the world’s third largest oil trade centre and the scene of an active over the counter oil market. Oil trading has helped Singapore develop its trading activities in other areas. Related advantages include a wellestablished local trade sector, Singapore’s safe and attractive lifestyle, and a multinational, multilingual population.
Member of international trade bodies Singapore has joined all the major international organisations related to trade, a further reassurance for traders and investors. As the Ministry of Trade and Industry points out, “Singapore has a strong interest
Promoting ASEAN-Europe trade Singapore is playing a key role in promoting trade between ASEAN and Europe. As the Ministry of Trade explains, “For Singapore, more business and trade ties with the EU, India and the US will help result in a prosperous East Asia fully engaged with the rest of the world.”
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SINGAPORE
Trade & Industry
The enlarged EU is currently ASEAN’s second largest trading partner, ahead of China and Japan, and accounts for 11.7% of ASEAN trade. ASEAN as a bloc is the EU’s fifth largest overall trading partner, ahead of Japan, Norway and Turkey. Despite the current level of trade, the enormous potential from enhancing the economic partnership led the EU and ASEAN in 2007 to launch negotiations on a free trade agreement.
Trade in 2007 rose 4.5% Singapore’s top 10 trade partners in 2007 were Malaysia, the US, Japan, Hong Kong, Thailand, Australia, Germany and Indonesia. Singapore’s total external trade last year reached US$846.6 billion (€576.6 billion), with a total US$450.6 billion (€306.9 billion) in exports, US$395.9 billion (€269.6 billion) in imports, and US$215.7 billion (€146.9 billion) in re-exports, in addition to domestic exports of US$234.9 billion (€160 billion), of which US$63.2 billion (€43 billion) was in oil. Total trade rose by 4.5% over the year, with imports also rising by 4.5%, exports by 4.4%, re-exports by 5.7% and domestic exports by 3.3%, including a 6.2% rise in oil exports. Clearly Singapore is strengthening its role as a global trade hub.
EXTERNAL TRADE
2004
2005
2006
2007
Total
444,992.5
506,383.8
573,428.1
598,986.4
Imports
207,540.3
235,737.1
268,094.0
280,151.1
Exports
237,452.2
270,646.7
305,334.1
318,825.3
Domestic Exports 127,494.3
146,772.1
160,873.1
166,197.2
Oil
26,397.0
37,355.5
42,171.1
44,765.2
Non-Oil
101,097.3
109,416.7
118,702.0
121,432.0
Re-Exports
109,958.0
123,874.6
144,461.0
152,628.2
Total
21.9
13.8
13.2
4.5
Imports
23.6
13.6
13.7
4.5
Exports
20.5
14.0
12.8
4.4
Domestic Exports 19.7
15.1
9.6
3.3
Oil
35.9
41.5
12.9
6.2
Non-Oil
16.1
8.2
8.5
2.3
Re-Exports
21.4
12.7
16.6
5.7
Trade at Current Prices (m)
Trade at Current Prices (Change in %)
Source: International Enterprise Singapore
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SINGAPORE
Trade & Industry
Land Transport Authority
Land Transport System Projects Offer Partnership Potential Singapore’s Land Transport Authority (LTA) within the Ministry of Transport handles all matters related to land transport throughout the country. According to Lim Bok Ngam, Deputy Chief Executive, “The LTA is an authority that is a combination of developer, regulator, and manager of all land transport.”
Tekst onder foto.
The LTA works with engineers, architects, contractors and other professionals from Singapore and all over the world in completing its projects, and usually outsources the operation of transport systems.
Marine Coastal Expressway, the S$8 billion (€4 billion) Downtown Line, the S$56 million (€28 million) Formula One circuit, and the S$7 billion (€3.5 billion) Circle Line, which is set for completion in 2010.
The LTA’s current strategic plan outlines developments in land transport up to 2020. The plan specifies a S$54 billion (€27 billion) investment in infrastructure, including in several new underground mass-transit lines.
Singapore recently established a S$50 million (€24.8 million) Land Transportation Innovation Fund to promote research and development in transport systems. Lim Bok Ngam explains, “The idea of the fund is that it will act promote collaboration between us and the local and foreign private sector to come up with innovative land-transport ideas.” The LTA already works with a number of leading European firms, and welcomes more partnerships. “Singapore offers safety, reliability and exceptional logistics,” Lim Bok Ngam concludes.
A recent success story for the LTA is the Fort Canning tunnel, phase one of the 12.5 km, S$2.3 billion (€1.1 billion) Kallang Paya Expressway project, which will include South-East Asia’s longest underground road tunnel. Other current LTA projects are the S$2.3 billion (€1.1 billion)
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SINGAPORE
Trade & Industry
OM Holdings
Metal Material Supplier Sees 50% Revenue Growth in 2007 OM Materials Singapore (OMS) began operations in 1999 when OM Holdings (OMH), founded by Mr. Ngee Tong Low and Mrs. Siow Kwee Low, relocated their operation from Hong Kong. Attracted by Singapore’s strategic location, excellent infrastructure, and stable political and economic environment, the Lows’ foresight paid off when OMS was ranked among Singapore’s top 50 fastest growing enterprises in 2006.
supplier and trader, Mr. Low commented, “OMS is very focused on raw materials for steel, and there are few companies with this specialty. In the long run, we will keep our competitive advantage because of our presence in Australia, Singapore, China, Japan, Korea and Taiwan.
Ngee Tong Low & Siow Kwee Low, Founders OM Holdings
Having earned a strong reputation as an importer, processor and trader of specialised metal materials and products, OMS is focusing on developing new markets, expanding and enhancing its range of raw materials, and maintaining its high standards of quality. “Today, OMS is the strategic trading hub of the OMH group,” says Ngee Tong Low, CEO and co-founder. The company’s key strategy is to leverage on Mr. Low’s past experience and key relationships in China while developing a niche in the specialised raw materials sector. “This has involved the contract sale of mineral commodities and ferroalloys, including sourcing and contract manufacturing on behalf of Chinese raw materials factories,” explains Siow Kwee Low, Group HR Director and co-founder, adding that OMS has developed strong relationships with steel mills throughout Asia. Overall, OMS aims to become one of the world’s leading raw material
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Current goals for the company include expanding its distribution networks in Asia and Europe, and forming new alliances. Specific targets include developing a complete raw materials supply chain, investing in mining with strategic business partners, adding new metal materials to its portfolio, selling alloys to end users, and trading third party raw materials as well as managing the supply, processing and sale chain of third party mine operators.
SINGAPORE
Open to more partnerships In the future, “OM is focusing on organic growth, expanding our mining capacity and pursuing exploration projects, particularly in China and Australia. We will continue to assess quality acquisitions and corporate opportunities,” Ngee Tong Low elaborates. The group achieved
a 50% rise in revenue in 2007, a trend which the Lows believe will continue this year. Ngee Tong Low says that the OM group is in the process of transforming from a small business to a sophisticated corporate entity, positioning itself to serve as an ideal Asian gateway for foreign partners, par-
ticularly partners from China, Korea and Japan. He adds, “The projects we pursue are not only oriented toward profits. We also take into account whether our business meets our high standards.” Siow Kwee Low concludes, “We deliver what we promise, we always believe in creating a win-win situation for all our business associates. Internally, we treasure all our people, they are our greatest assets. Thus, we are confident and sure that all our business partners, our employees have been enjoying working with OM. This is something we take pride in.”
www.ommaterials.com
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SINGAPORE
Trade & Industry
Global Hub for Commodities Trading The recent announcement by India’s largest commodity bourse – the Multi Commodity Exchange (MCX), part of the Financial Technologies Group – that it would launch a new commodities exchange in Singapore underlines Singapore’s role as a global centre for commodities trade. The new exchange, the Singapore Mercantile Exchange, will join Singapore’s Joint Asian Derivatives Exchange and the Singapore Commodity Exchange (SICOM).
SICOM: world-class regulatory environment SICOM is currently Singapore’s top centre for commodities trading. It provides a centralised and regulated marketplace for the trade of commodity futures, and has positioned Singapore as a top international commodity futures trading hub which complements the country’s international trading activities. SICOM is known for its world-class regulatory environment. International Enterprise Singapore, which operates within the Ministry of Trade and Industry, serves as the exchange’s regulatory body, ensuring transparency and protection of the rights of participants on the exchange, and the SICOM Clearing House clears all futures contracts transacted between buyers and sellers. SICOM has implemented the latest technologies, including a computerised trading network linking the marketmakers/brokers and providing them with an efficient price discovery system which ensures the best bid and offer for all the market’s participants. SICOM’s other activities include market research into new futures contracts, educational efforts for the commodity trading community and the general public on the economic benefits of futures trading, and audits and market surveillance activities to ensure members’ compliance with the exchange’s rules.
Enhancing Singapore’s role as commodities trade centre The new Singapore Mercantile Exchange by MCX will add to Singapore’s attractions as a
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commodities trading hub. MCX was responsible for the creation of the Dubai Gold and Commodities Exchange, the biggest commodities exchange in the Middle East, and is currently in the process of establishing MCX Africa and a multi commodity exchange in Mauritius. Singapore’s Economic Development Board will also have a stake in the Singapore Mercantile Exchange.
New centre for metals research Metal is one of the top commodities traded in Singapore, and many of the country’s fastest growing companies are involved in the metals industry. Singapore recently established the Minerals, Metals and Materials Technology Centre, the country’s first research and development centre dedicated to the research and development of minerals and metals in areas such as high value added materials processing, new materials development and renewable and recyclable materials. The new centre will help stimulate the growth of the metals and minerals industry even more.
SINGAPORE
Trade & Industry
Yongnam Holdings Limited
Construction Group Targets International Markets Singapore based Yongnam Holdings Limited, now with more than 1,000 employees, has grown to become an integrated engineering and construction group specialising in structural steel construction, mechanical engineering and specialist civil engineering. The group has also expanded abroad, operating subsidiary companies in Malaysia, Hong Kong, Thailand and Dubai as well as four subsidiaries in Singapore and production facilities in Singapore and Malaysia.
Seow Soon Yong, CEO, explains that Yongnam Holdings has integrated all its divisions and has many projects under way this year. “The future looks very promising for us,” he says. Yongnam Holdings has been involved in all the major engineering and construction projects in Singapore, including the new mass-transit system, KPE expressway, Suntec City Convention Centre and Capital Tower. Yongnam expects to be very busy with projects in Singapore over the next three years, but in future aims for 50% of its revenues to come from overseas markets. The company is targeting the Middle East, where its first project was to participate in the construction of Dubai’s new mass transit system. “Yongnam also has projects in the very exciting market of India, where we are currently involved in the construction of a new terminal at New Delhi airport,” Seow Soon Yong says. India, in fact, is a market that Yongnam has targeted as having particularly strong growth potential because of the many projects there that involve major steel structures.
Yongnam Holdings has formed partnerships with many international companies, for example in Yongnam’s current project to build the skypark in the new Marina Bay Sands Integrated Resorts initiative in Singapore.
Key competitive advantages Seow Soon Yong cites quality, capability and delivery as Yongnam’s key competitive advantages. “When customers choose us, it’s not all about pricing; it’s especially capability,” he says, adding that when he made a tender bid for Bangkok’s international airport project, Yongnam’s winning bid was higher but offered higher quality. In addition, Yongnam has earned a reputation for on time delivery always. “We are the major contributor to the structural steel construction and specialist civil engineering in Singapore,” Seow Soon Yong explains. In fact, when some of Yongnam’s Singapore clients expand abroad, they include Yongnam in their projects, and around 90% of Yongnam’s clients are repeat customers, an exceptional record. Yongnam is well placed to continue its impressive success story.
www.yongnam.com.sg
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SINGAPORE
Trade & Industry
Centre for Global Rubber Trade Singapore, the location for at least half of the world’s rubber trading, has been the centre of the regional rubber industry since the industry began. At the beginning of the 20th century, Singapore served as the main market for rubber produced in neighbouring Malaysia and in Indonesia, and stimulated the growth of the rubber industry by acting as a liaison between regional rubber producers and global markets. Partly as a response to Singapore’s involvement, trade in rubber became one of the biggest commodities booms in history.
World’s top rubber market In the years between the two world wars, in fact, the world’s top three rubber markets were Singapore, London and New York, and Singapore was ranked along with London as the leading price setter for rubber. This was a major accomplishment for Singapore’s rubber trading activities, since commodities markets of the time were usually based in major metropolitan areas. Today, Singapore is still ranked one of the world’s top rubber markets. The others are Kuala Lumpur, London, New York, Tokyo, Bangkok, and Shanghai. The Rubber Trade Association of Singapore (RTAS), the leading local rubber organisation, was established in 1918 to promote goodwill among the various interests in the rubber trade and industry. It provides constructive feedback and suggestions to the Singapore Commodity Exchange (SICOM) for discussions on major policies affecting the local rubber industry and the prospects of the Singapore rubber market. The regional rubber industry is going increasingly global, with dynamic multinational enterprises, many of them based in Singapore, taking the place of the smaller family owned companies that dominated the industry in the past.
SICOM main centre for rubber trading SICOM is Singapore’s centre for rubber trading. In fact, rubber is the main commodity traded on the exchange, and SICOM is owned and run by some of the world’s most experienced rubber brokers and traders. This system ensures their continued support as market-makers, brokers, traders and liquidity providers. The international rubber trade benefits from the vast experience, information and liquidity that Singapore’s brokers and traders inject into the market. “Market participants are encouraged to join the Exchange as members, as this gives them an edge in the world’s largest rubber market. Clearing Members, who are also shareholders, have a significant voice in policy decisions affecting the development of the Exchange and the market,” SICOM points out. Members enjoy lower brokerage charges and privileged access to SICOM’s computerised trading system.
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SINGAPORE
Trade & Industry
R1 International
Dynamic Rubber Enterprise Reshaping the Industry R1 International (the “R” stands for Rubber, the “1” for number one in its industry) was formed in 2001 merging the long standing rubber trading activities of its major shareholders Mardec, a leading Malaysian rubber processor and Cargill, a global commodity trading company.
As Sandana Dass, Managing Director and founder, puts it, “In 2001, the commodities market environment was very different from what it is today. Back then, commodities were in the doldrums while now they are the flavour of the day. The two main shareholders took a strategic long term decision to combine their rubber processing capabilities and the price risk management and trading expertise to focus on a dedicated global company for the trading of all origin and all grades of natural rubber and latex.” Ten years ago, the rubber industry was made up of primarily family owned and owner operated companies. Sandana Dass says, that R1 organised itself differently and is motivated to redefine rubber trading, taking a more global and corporate approach. The focus is very much on customers’ needs and working together in partnership for value creation and ultimately ensuring their business success.”
Number one and determined to stay so Major enterprises in the tire industry account for around 70% of R1’s business and the rest covers a diverse range of industries from various parts of the world. R1 aims to trade around 1,000,000 tons by end of 2009. Sandana Dass explains, “We are a market leader and we strive to remain so. With leadership, we have a responsibility to work for a healthy and vibrant rubber industry,” How did R1 achieve such success so quickly? R1 built its business on the credibility and prestige of its main shareholders, namely Cargill and Mardec. Added to this is their dynamic vision, mission and values system and driven by a global team of experienced and passionate R1 family members. As Sandana Dass puts it, “We keep our promises, strive to be innovative and take a long term approach. Our clients see the difference when they deal with us.” R1 has worked hard to build a very solid brand reputation and to capture “mind share”, a strong presence in the minds of current and potential customers. As for the decision to base the company in Singapore, Sandana Dass explains, “Singapore is a neutral, transparent, open and stable country. It is in the heart of the world’s largest rubber producing countries. It is a natural rubber trading hub, dynamic and efficient and has great infrastruc-
Sandana Dass, Managing Director and CEO R1 International
ture, both financial and logistical. He concludes, “We are a global company, so our success is also tied to the success of the Singapore Brand. It is important for us to keep our reputation in line with that of Singapore’s, and Singapore deserves its great reputation.”
www.r1international.com
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SINGAPORE
Transport & Logistics
South-East Asia’s Transport Singapore has a transport infrastructure that is among the world’s most up-to-date. It includes the state-of-the-art Port of Singapore, one of the world’s busiest ports, along with Changi International Airport, which is ranked among the safest and most efficient airports on the planet and which provides rapid air links throughout the region and to all major international destinations.
Changi International opened its third terminal this year, and its cargo services include the Changi Airfreight Centre (CAC), a free trade zone, which offers airlines, cargo agents, shippers and consignees the benefit of 24-hour one-stop service; it has over 110,000 sq m of warehouses and offices. The 26 hectare Airport Logistics Park of Singapore adjacent to the airport serves as the ideal base for logistics companies. The airport is the hub for Singapore Airlines, which operates its own highly ranked cargo services in addition to its renowned passenger services which include non-stop all-business-class flights to the US.
Transport sector a top performer According to Singapore’s Department of Statistics, the local transport and logistics sector included more than 9,100 companies as of 2006 and employed more than 117,000
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Transport & Logistics
and Logistics Hub people. It achieved a 4.9% rise in revenues in 2006 compared to 2005. In 2007, the transport sector was again one of the country’s top performers. Local transport and storage companies achieved an average of 20.3% growth over the year, with total turnover of around US$1.424 billion (€975.54 million), compared to US$1.18 billion (€808.36 million) in 2006.
Boosting aviation and maritime transport
Singapore has launched incentive schemes to attract companies which own or operate foreign flagged ships to reside in Singapore. Over 60 international shipping companies have based their operations in Singapore since 1991. The Ministry of Transport also aims to ensure that Singapore offers “a comprehensive range of maritime ancillary services to provide one-stop service for all port, shipping and maritime activities.” The ministry adds, “We are constantly looking to develop high value added and knowledge-based services in areas such as ship management, ship financing, marine insurance, ship broking, maritime legal services and maritime and offshore engineering.”
Singapore’s Ministry of Transport aims to position Singapore as a leading international aviation and maritime transport hub. Concerning the aviation sector, the government is focusing on stimulating airport-related activities and services, aircraft leasing and financing, aircraft maintenance and manufacturing, and other aviation-related activities which will “enable Singapore to provide a comprehensive range of air transport and aviation services to the international aviation community that is commensurate with its status as a major air hub,” according to the Ministry.
Highly developed domestic transport
Singapore was elected to the Council of the International Civil Aviation Organization (ICAO) in March 2003, and has established the Singapore Aviation Academy, the internationally recognised training arm of the Civil Aviation Authority of Singapore, which has trained more than 31,000 participants from over 180 countries.
Concerning domestic transportation, the government’s policy is to provide clean, safe, affordable and efficient transport for all residents and visitors. The Mass Rapid Transit (MRT) system, Light Rail Transit (LRT) system, buses and taxis provide services covering the entire island at reasonable fares.
Highly developed maritime transport
The government is making extensive investments in expanding and improving the country’s domestic transport infrastructure. Major recent projects include the North East MRT Line, the Circle Line, the Sengkang and Punggol LRT Lines, and the Kallang/Paya Lebar expressway.
In the maritime sector, the Port of Singapore is one of the world’s busiest ports; it handled 483 million tonnes of cargo in 2007, including over 289 million tonnes of container cargo and 157 million tonnes of bulk oil cargo. The port is overseen by the Maritime and Port Authority. The Singapore Registry of Ships (SRS) is the largest in Asia and the fourth largest in the world, with some 33 million gross tonnes (GT) on its register of more than 3,200 vessels. The SRS is known for its excellent safety and environmental record, and offers financial incentives, recognition of foreign Certificates of Competency and other advantages.
Singapore is now home to many research institutions specialising in maritime industries, offshore engineering and maritime business. The government has also established the Maritime Innovation and Technology (MINT) Fund to co-fund the development of maritime R&D capabilities.
Given its strategic location, exceptional infrastructure and government policies supporting the on-going development of the transport, storage and logistics sectors, Singapore represents an outstanding choice for European investors in these industries, and the highly developed local transport sector is one of Singapore’s key competitive advantages for foreign enterprises choosing Singapore as their base in the region.
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SINGAPORE
Transport & Logistics
Ideal Asian Business Hub Rated the most business-friendly economy in the world and number three on the 2008 Index of Economic Freedom, Singapore has positioned itself as the ideal hub for business in Asia.
A small country with few resources and a limited domestic market, Singapore determined long ago to become a regional and international hub, and it has succeeded. To get ahead of its regional competitors, it has boosted its activities in financial services, shipping, air transport, telecommunications, and information technologies, and invested extensively in human resources and infrastructure.
Why multinationals choose Singapore The strategy has paid off: Singapore is now the home of more than 4,000 multinational corporations. According to a recent survey by the International Development Research Centre, these multinationals chose Singapore as their base for its strategic geographical location; excellent transport and communications infrastructure, logistics, and financial services; political stability, conducive environment for business and high quality living environment for executives; availability of goodquality human resources and the widespread use of English; the supportive role of government institutions such as Singapore Economic Development Board (EDB) and the Singapore Trade Development Board (TDB); minimal transactions costs of investment, trade, and immigration procedures; and generous tax incentives.
Maintaining its competitive edge In spite of its well-established hub status, Singapore is facing increasing challenges from other countries – particularly China and India – which are promoting their lower labour costs and bigger domestic markets. To remain competitive in this environment, Singapore is concentrating on its strengths, particularly its skilled workforce and cutting-edge technologies, to go beyond low cost manufacturing and the domestic market to focus on value added production, research, product development and design, process engineering, precision manufacturing, international marketing and distribution, operational headquarters services, and other activities geared to a knowledge based economy. For businesses wishing to produce lower quality goods at lower prices, Singapore is not the ideal choice, but for companies wishing to compete globally with higher quality goods and services, or to transport their goods and services to and from Asia, Singapore is the best place in Asia to be. Through its millennium Strategic Economic Plan, the government launched the Manufacturing 2000 and International Business Hub 2000 programmes, both of which have proved extremely successful. Singapore has
30
become a global hub for business and finance, logistics and distribution, communications and information, and new technologies, among other fields.
Hub for regional economies Singapore’s hub strategy requires the country to establish strong links with other regional economies, and Singapore has successfully concentrated on political diplomacy, outward investment and joint ventures as well as initiatives to establish growth triangles and overseas industrial parks. These include the SIJORI growth triangle, a partnership between Singapore, Johore (in Malaysia), and Riau (in Indonesia) which joins the infrastructure, capital, and expertise of Singapore with the natural and labour resources of Johore and Riau. Singapore has also established industrial parks in Suzhou and Wuxi (China), Bangalore (India), and Vietnam.
Focus on adding value In the manufacturing sector, Singapore is building on its strengths, particularly its skilled workforce, to focus on value added production and advanced technologies geared to the regional and global knowledge based economy. For businesses wishing to produce lower quality goods at lower prices, Singapore is not the ideal choice, but for companies wishing to compete globally with higher quality goods and
services, Singapore has positioned itself as the best place to be. Investments in value added production are increasing every year in Singapore. In 2007, such investment totalled S$ 11.6 billion (€5.6 billion) per annum, and this year that total is expected to rise to between S$12 billion (€5.8 billion) and S$14 billion (€6.7 billion), according to the EDB. In the manufacturing sector, total fixed assets investment reached S$17.2 billion (€8.2 billion) last year and is expected to total between S$17 billion (€8.1 billion) and S$19 billion (€9.1 billion) this year. Overall, in 2007 Singapore delivered results which exceeded expectations in added value creation and revenues, fixed assets investment, total business spending and job creation. Around 400 major projects were launched in Singapore in 2007, according to the EDB. These projects are expected to create 28,600 new jobs and add S$11.6 billion (€5.6 billion) per year to Singapore’s GDP. Many of these jobs will be in engineering, management, research, creative and industrial design, and other fields geared to adding value. As the EDB points out, “these projects not only help in developing depth in our key industry clusters, but are also notable in that many will provide the spark for new clusters to grow, such as in clean technology. They reflect strong investor confidence in Singapore.”
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Transport & Logistics
“Asia is fast becoming a business and economic opportunity that few businesses can ignore,” says Tay Lim Heng, Chief Executive, Maritime and Port Authority of Singapore (MPA). He adds, “Singapore – with its strategic location in Asia, world-class infrastructure, strong industry clusters, English speaking and highly productive workforce, pro business and stable political environment, and good, long standing relationship with Europe – is well set to become Europe’s preferred partner to tap into the burgeoning Asian market.” As head of the MPA, Tay Lim Heng oversees the Port of Singapore, the world’s busiest port. Connected by around 200 shipping lines to 600 ports in more than 120 countries, the Port of Singapore has helped make Singapore one of the most important trade hubs on the planet and the centre of Asia’s maritime sector.
Ideal base for European maritime companies Tay Lim Heng points out that Singapore is an ideal base for European maritime companies. He says, “Singapore offers many business opportunities for maritime companies looking to grow and expand. Businesses in Singapore benefit from the increasing number of bilateral shipping agreements, free trade agreements and other legislation which ensures a benign tax regime and preferential market access. Furthermore, a maritime company setting up operations in Singapore will also have access to a wealth of other high-end maritime services and expertise across the
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Maritime Port Authority
Taking Maritime Sector to the Next Level Innovative initiatives The MPA has worked with local industries to launch a number of innovative initiatives designed to enhance Singapore’s maritime competitiveness. These include the Approved International Shipping Enterprise scheme, the Approved Shipping Logistics Enterprise scheme, the Maritime Cluster Fund, the Maritime Business Development Programme (focusing on innovation and research), and the Maritime Finance Incentive scheme, among others.
Tay Lim Heng, Chief Executive MPA
entire supply chain, from ship broking, shipping finance and risk management, maritime arbitration and port services, to maritime education and training and maritime research and development.” With the pro-active approach typical of Singapore, the MPA is now taking the country’s maritime sector to the next level. “We have adopted a cluster development approach and believe in working closely with the maritime community. This involves improving Singapore’s maritime business environment, attracting ship owners and operators to entrench their operations in Singapore, and enhancing the breadth and depth of local maritime services as well as boosting the quality of our maritime workforce,” says Tay Lim Heng.
The MPA’s S$50 million (€24.5 million) Maritime Cluster Fund focuses on developing new maritime related education programs as well as re-training maritime personnel, and companies can call on the fund for financial support in training their maritime workforce. Last year the MPA partnered with the Singapore Maritime Foundation, the Association of Singapore Marine Industries and the Singapore Shipping Association to launch MaritimeONE to help attract quality manpower into the maritime industry. Maintaining this focus on innovation, Singapore’s ship broking firms are branching out into new areas, including Forward Freight Agreements (FFAs) and research and consultancy. Many of the world’s top banks with shipping portfolios have also established operations in Singapore, and the local marine insurance sector has also been growing rapidly. “The increasing
SINGAPORE
Transport & Logistics
The Singapore Port
number of international maritime service providers calling Singapore home contributes to a vibrant cluster of maritime activities here,” Tay Lim Heng points out.
Implementing cutting-edge technologies Other cutting-edge programmes for the MPA include SGX AsiaClear, a platform for the clearing of over-thecounter (OTC) oil swaps and forward freight agreements. “The facility aims to provide shipping companies with another form of risk management, as they can look beyond the physical market to using paper trading as a tool for hedging,” Tay Lim Heng explains. In addition, the MPA recently launched WISEPORT, which leverages on the latest wireless broadband technology to give ships wireless mobile broadband connectivity while operating in the Port of Singapore and up to 15 km from Singapore’s southern coastline.
Preparing for the future The MPA has promoted events like Sea Asia to draw international maritime companies to Singapore, and has partnered with local educational institutions to introduce 14 maritime-related tertiary programmes at the diploma, graduate and post graduate levels. “With our established maritime intellectual capital, Singapore is well positioned as an Asian platform to contribute towards maritime
discourse and to shape decision making in global shipping,” Tay Lim Heng says. The Port of Singapore anticipates continued strong growth. The MPA oversees the expansion of the port’s container handling facilities, and the latest expansion of Pasir Panjang Terminal will see an addition of 16 container berths with a total annual handling capacity of about 14 million twenty-foot equivalent units (TEUs).
Commitment to quality The MPA is also seeing significant increases in the number of ships registered in Singapore, with the total growing to 39.6 million gross tonnes in 2007. “As we implement measures to ensure that we remain among the world’s leading registries, we remain committed to upholding a quality standard for our fleet. Singapore’s grading in the white list of both the Tokyo and the Paris MoUs on Port State Control reflects this,” Tay Lim Heng says. The MPA will continue to support Singapore’s on-going development and to ensure that the country’s maritime sector is world class in every aspect. Tay Lim Heng concludes, “We are committed to ensuring that the Port of Singapore continues to add value and provide quality and comprehensive services to the shipping community, while promoting safe, secure, efficient and environmentally friendly shipping on a global basis through the International Maritime Organisation.”
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SINGAPORE
Transport & Logistics
Neptune Orient Lines (NOL)
Singapore Shipping Firm Ranked Neptune Orient Lines (NOL) is a Singapore-based global container shipping, marine terminals and logistics company. NOL became Singapore’s national flag carrier when it was established in 1968 with a fleet of just five ships. Forty years on, NOL controls more than 130 vessels and delivers services in more than 80 countries. NOL is also the largest shipping and logistics company listed on the Singapore Stock Exchange. NOL’s core container shipping business, APL, is a global top-10 provider, which handled 4.8 million TEU (twenty-foot equivalent unit) in 2007. NOL’s supply chain services unit, APL Logistics, is among the world’s top-25 providers of international logistics solutions and operates one the world’s largest and most modern warehousing networks. APL Terminals controls a global top-10 network of container handling facilities in Asia and North America, which in 2007 handled more than 4.5 million TEU. NOL serves the international transportation and supplychain needs of a diverse customer base that includes Fortune 500 companies, many of Europe’s most successful enterprises, and the emerging giants of Asian business. Forbes has ranked NOL on its ‘Fabulous 50’ list of Asian companies with revenues or market capitalisation of at least US$ 5 billion. The Forbes ranking is based on long-term profitability, sales and earnings growth, stock price appreciation and projected earnings. NOL is one of only two Singapore based companies to make the prestigious list.
Strong revenue growth As world trade has grown exponentially in this decade, driven by the outsourcing of manufacturing so have NOL’s global revenues, rising from US$4.6 billion in 2000 to a record US$8.16 billion in 2007. NOL’s Chairman, Cheng Wai Keung, says, “We are always looking for opportunities for transformation and further growth. Our goal is to grow at least in line with the market this year and beyond.”
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Cheng Wai Keung, Chairman NOL
NOL and APL A giant step forward for NOL was its acquisition in 1997 of the iconic US shipping company American President Lines (now known just as “APL”), which has been active in global trade for 160 years. The acquisition was one of the most ambitious deals ever undertaken by a Singapore company. Industry-leading financial and operational results over the past five years highlight the great success of the NOL-APL union. Container shipping is in NOL’s DNA and remains its core business. In 2001, NOL introduced the APL Logistics brand to complement its container services, in response to rising global demand for value-added logistics services that expedite the flow of products from production to consumption. Earlier this year, NOL launched the APL Terminals business in recognition of the increasing strategic value of marine terminals in the global supply chain.
Asian origins, international presence Through APL, NOL has been operating in the Asia region since the 19th century. Today, NOL is a leader in providing services in key Asian markets such as China, India and Vietnam.
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Transport & Logistics
Among Global Leaders While NOL’s origins are in Asia, it is a truly global player. Through APL, APL Terminals and APL Logistics, the group delivers services in Asia, the Americas, Europe, the Middle East and the Indian Subcontinent. It is also actively seeking to expand its presence in key markets. Europe is a notable example. NOL is involved in a consortium which has been awarded the concession for the first container terminal to be developed at Maasvlakte 2, Rotterdam. When it becomes operational, Maasvlakte will be among NOL’s key European gateways. Cheng Wai Keung explains, “As a public company, we have the best of both worlds. We benefit from the Singapore government’s reputation for clear corporate governance, and we also have the flexibility of a private company.” He adds that one of NOL’s strong points is its multinational management. “We consider the diversity in nationalities within our management a competitive advantage. We are not only global in our activities, but also in our management team,” he says.
Strong image backed up by performance NOL is committed to maintaining its strong reputation. As Cheng Wai Keung points out, “We are a first-tier partner in the shipping industry, which means we offer reliability, quality service, timely delivery, good infrastructure, global spread, and good service for our customers. Our corporate image is strengthened by the services we deliver.” Singapore also has a strong brand image, one which NOL is helping to promote. In fact, Cheng Wai Keung would like to see other local companies sing the praises of Singapore as a business base. “The private sector here should speak a bit louder on behalf of Singapore’s opportunities and business friendly environment, particularly for foreign investors. Singapore is truly a favourable place for foreign investors to do business.
Singapore: the ultimate outsourcing hub Singapore is the global hub for NOL’s key financial activities and strategic management as well as its key
gateway between Asia’s sourcing hotspots and the world’s major markets. For European companies operating in or trading with Asia, NOL offers a well-established regional network as well as the advantages of a base in Singapore, the ideal choice for multinational companies aiming to outsource some of their activities. With its commitment to quality and its ambitious growth strategies, NOL is highly respected in the investment community and is known as a committed corporate citizen. NOL reflects Singapore’s potential. As Cheng Wai Keung puts it, “NOL is associated with transparency and hard work, which are also Singapore’s core values. Our company is a typical example of a successful business that has benefited from Singapore’s stable business environment.”
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SINGAPORE
Transport & Logistics
X-Press Container Line
Value-Added Feeder Services for the Shipping Industry Sea Consortium, whose European brand name is X-Press Container Line, operates a fleet of over 60 container ships employed in scheduled feeder services covering Europe, Africa, the Mediterranean, the Black Sea, the Arabian Gulf, the Indian sub-continent, South East Asia and China. Founded in Singapore in 1972, Sea Consortium has grown exponentially and now has operations all over the world, including a network of feeder services in top global transhipment ports. Sea Consortium and X-Press Container Line handle over 2 million TEUs of cargo per annum, providing outsourced support for global container shipping enterprises. Sea Consortium is based in Singapore and X-Press Container Line operates out of London; the group also has management offices in Dubai, Barcelona, Genoa and Geneva.
Family owned, dynamically run “Sea Consortium is still a family owned business, with all the support functions run from Singapore,” explains Tim Hartnoll, CEO and son of the company’s founder. He adds that although Sea Consortium is still owned by the family, it is run as a dynamic private enterprise. Tim Hartnoll explains that Sea Consortium has carved out a strong niche in the global shipping industry. “The driver of our business is our customers outsourcing the feeding of their containers. It’s a low margin business so we need to push high volume. We have been able to grow within the same structure, becoming more efficient and driving unit costs down, while establishing geographical diversification. In fact, our geographical diversification will be the main driver for our growth,” he says. Sea Consortium differentiates itself from competitors through its specialisation in providing world class feeder services and through its impressive efficiency and high level of customer service. “We have been nicknamed the dotcom carrier because of our small management
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Tim Hartnoll, CEO X-Press Container Line
team with the empowerment to make decisions. We keep our heads low and remain customer-centric, and we are very good at this,” Tim Hartnoll explains. Sea Consortium and X-Press Container Line serve many high profile multinationals all over the world, including NYK, and the company is well known for its reliability. The company is currently expanding in Africa, where undeveloped infrastructure increases the need for feeder services. Singapore has proved to be an excellent base for Sea Consortium. “I am proud to come from Singapore, and being based here adds value to a company. Singapore’s port, for example, has an excellent international reputation. I unhesitatingly recommend Singapore as a business location,” Tim Hartnoll says, adding, “In terms of ease, quality of life and security, Singapore is far ahead of the rest.”
www.seacon.com.sg
Regional Centre for Food Industry The Asia-Pacific region’s agriculture and food and beverage sectors have been growing rapidly over the past few years, fuelled by growing demand from an expanding and increasingly affluent middle class, and Singapore aims to serve as the hub for these sectors. While Singapore’s agricultural activities are almost non-existent and the country imports most of its food, Singapore has a long tradition in trade in the agricultural sector as well as in food and beverage processing and technology development. The country is building on these strengths.
Local food sector small but technologically advanced Singapore has around 350 food companies with a staff base of 10 or more. The sector is worth around S$4 billion (€1.9 billion) per year and employs around 18,000 people. While Singapore’s food and beverage sector is small by global standards, it is characterised by up-to-date technologies and strong export activities. Singapore’s food and beverage sector is responding to current regional trends, which include a focus on packaging to increase shelf life of products, attract new consumers, and package products that have traditionally been purchased fresh; a strong focus on food security; increased interest in the region’s developed countries, including Singapore, in health issues (sales of organic and low-fat food and bottled water are growing rapidly); and demand for ready to cook food items to fit changing lifestyles.
Regional centre for food safety Singapore has taken steps to serve as the region’s centre for food safety by adopting the stringent ISO 22000 food accreditation scheme, making Singapore the first South-East Asian country implement such a programme. The new scheme ensures that local certification bodies that assess and certify food companies under the ISO 22000 Food Safety Management System Certification will have the technical ability and integrity to do so. The ISO 22000 initiative will make it easier for Singapore’s food exports to enter foreign markets, especially those in the European Union. The Singapore Accreditation Council (SAC), a unit of SPRING, will manage the scheme. Singapore has also set up the Regional Centre of Excellence for Research and Teaching in Food Science and Technology at the University of Singapore. Global agriculture, food and beverage companies wishing to establish a presence in the Asia Pacific market have found that joint ventures with local firms or acquisition of local companies is the best way to break into new markets and be sure of accommodating local tastes. Singapore is clearly an ideal base for such companies.
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SINGAPORE
Research & Development
ABR Holdings Limited
Accelerating the Launch of Global Beverage Brands within Asian ABR Holdings Limited epitomises the thriving entrepreneurial spirit in Singapore, with a rooted beginning that today spans diverse product portfolios as well as depth of offerings. The company began by operating a Swensen’s ice cream restaurant in 1978 and has grown to become a dynamic enterprise that manages, franchises and operates a portfolio of food and beverage operations featuring well-known brands like Swensen’s, Yogen Fruz, Gloria Jean’s Coffees, Oishi Pizza, Season Confectionary, and The Cocoa Trees.
Association of Singapore and DP Information Group, and supported by SPRING Singapore, the country’s enterprise development agency.
In 2007, ABR was recognised by the Restaurant Association of Singapore (RAS) as the inaugural Winner of the RAS Business Excellence Award, for its outstanding financial performance and business acumen. The RAS Business Excellence Award is part of a national initiative of the Singapore government. It was organised by the Restaurant
ABR Holdings Limited is listed on the secondary board of the Singapore Stock Exchange and is widely recognised as a premier franchising company offering emerging entrepreneurs the opportunity to become owners/operators of high profile enterprises in Singapore and beyond. “We have a food service division dedicated to operating and developing franchises. We also have a trading division
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Food and Markets which represents a wide variety of established brands, and a field-proven distribution network which services the Asia Pacific region,” says Keith Chua, Executive Chairman, ABR Holdings Limited. While the food service division derives most of its revenues from the Singapore market, the trading division’s revenues come mainly from beyond Singapore. ABR launched a subsidiary in China in 2006 and aims to expand more of its operations elsewhere, including its regional distribution networks. The group is also very active in duty-free sales. “The Singapore market still has significant potential in the food service line thanks to increasing disposable incomes of residents. We will continue to grow in Singapore using the expertise we have developed over the years. We also see enormous growth potential regionally, and our current focus is to establish a viable business in China,” says Keith Chua. ABR’s competitive edge is its well-established infrastructure and complete portfolio of services, from product purchasing and development to manufacturing and distribution. “We have established structures that encompass the whole spectrum of our operations, which affords us economies of scale. We also have years of experience and strong brand acceptance in the consumer market,” Keith Chua points out. ABR is always ready to welcome new franchisees, brands and investors. ABR recently formed a partnership with Groupe Flo to open the first French Hippopotamus steakhouse in Singapore. “ABR has proven its ability to expand sales and brand awareness of global brand names like Swensen’s. Our consistent track record demonstrates our expertise to assist new brands in entering Asian markets, including Singapore,” says Keith Chua. Keith Chua values the Singapore government for its support of the business sector to grow here, which in turn bolsters employment and the economy. Chua believes that Singapore is an excellent springboard for the Asian region, especially for the emerging small and mediumsized enterprises.
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SINGAPORE
Research & Development
Global Centre for R&D Singapore’s recent hosting of the 31st Annual International ACM SIGIR Conference – the major international forum for the presentation of new research and techniques in information retrieval – reflects Singapore’s role as a centre for research and development not only regionally but globally. According to Singapore’s Agency for Science, Technology and Research, in 2006 Singapore had 951 organisations devoted to conducting research, a dramatic increase from the 526 such organisations a decade earlier. Of these research organisations, the overwhelming majority (897) are private.
Spending on research and development Spending on research and development in Singapore has also grown exponentially, from S$1.79 billion (€859 million) in 1996 to S$5 billion (€2.4 billion) in 2006, of which the lion’s share (S$3.2 billion or €1.5 billion in 2006) was invested by the private sector. Research spending in Singapore in 2006 focused overwhelmingly on biomedical and related sciences (S$263.4 million or €126.4 million) and on engineering and technology (S$241.8 million or €116 million), with S$47 million (€22.6 million) devoted to natural sciences other than biology and S$70.5 million (€33.8 million) spent on research in other fields. Private industry in Singapore spent a total S$3.29 billion (€1.58 billion) on research and development in 2006, of which S$2.2 billion was by manufacturing firms and S$1 billion (€480 million) was by services enterprises.
Multinationals basing R&D in Singapore Thanks to this focus on research, coupled with Singapore’s highly skilled workforce, exceptional technological advancement and excellent working conditions, Singapore has carved out a niche for itself as a top base for multinationals to set up their research and development divisions. In the biomedical and health care field, for example, Singapore’s Biopolis, a dedicated research and development complex for biomedical initiatives, is home to five biomedical public research institutions and laboratories from the Agency of Science Technology and Research (A*STAR), and offers a “plug and play” infrastructure for pharmaceutical and biotechnology companies to share scientific facilities and services, facilitating cross-disciplinary research and public-private collaboration. Singapore is also positioning itself as an international centre for research and development in new fields, including clean energy. In early 2007, the National Research Foundation and the Research, Innovation and Enterprise Council identified the clean energy industry as a strategic key growth industry for the country and the government has budgeted S$170 million (€81.6 million) to develop this sector, setting up the Clean Energy Programme Office last year. Overall, around US$350 million (€238 million) is being invested in research and development in clean energy in Singapore, just one example of the country’s innovative approach to R&D.
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SINGAPORE
Research & Development
A*STAR
Dynamic Agency Promoting Research and Development Singapore’s Agency for Science, Technology and Research (A*STAR) plays a vital role in promoting the country’s science and technology sectors. A*STAR comprises the Biomedical Research Council (BMRC), the Science and Engineering Research Council (SERC), A*STAR Graduate Academy (A*GA), and the commercialisation arm Exploit Technologies. Tricia Huang, Deputy Director of the Governance, Planning and Strategy Group, BMRC, explains, “BMRC’s research institutes and centres carry out both basic and Translational & Clinical Research (TCR). Over the years, we have built up capabilities in areas such as molecular and cell biology, bioinformatics, bioengi-
neering & nanotechnology, and genomics, and are now focusing on TCR with newer programmes and consortia in bioimaging, cohort studies, drug discovery, immunology, neuroscience and stem cells. Our scientists also work closely with the universities and hospitals on TCR, such as through the S$25 million TCR Flagship Programmes supported by the National Medical Research Council (NMRC) under the Ministry of Health. Three TCR Flagship programmes in cancer, neurosciences and eye diseases that are important health problems in Singapore and the rest of Asia have begun, and grant calls for two more programmes in infectious diseases, and cardiovascular/metabolic diseases are in the pipeline.” BMRC has established the Singapore Institute of Clinical Sciences, headed by Judith Swain of the University of California, San Diego, and has been involved in many bioengineering and biotechnology initiatives, including developing the technology to diagnose SARS. BMRC partners with various international organisations, including New York’s Ludwig Institute for Cancer Research. Vincent Soh, Deputy Director of the Chemical and Materials Sciences cluster, SERC says that SERC is involved in scientific research in many areas. “We have identified major trends that will become important not only to Singapore but the rest of the world. Our scientists are seeking new technological solutions,” he adds. SERC has just moved into
Singapore’s ambitious Fusionopolis development which will allow the organisation to expand its activities in research and the provision of services for companies. A*STAR has numerous collaborations with hospitals, universities, and local and multinational companies based in Singapore, and has developed a number of international partnerships. A*STAR enhances Singapore’s attractions for investors by providing exceptional research support.
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SINGAPORE
Tourism
New Integrated Resorts to Help Keep Visitor Numbers High Singapore’s tourism industry is going strong, and 2008 is expected to be another record year thanks to rising inflows of visitors and big-scale events like the Singapore Formula One Grand Prix in September.
the most reliable in the world, along with a cutting-edge international airport, Singapore stands out as a desirable destination in a year when many travellers fear to fly abroad.
According to the Singapore Tourism Board, Singapore posted around S$6.5 billion (€3.1 billion) in tourism receipts from January to June this year, or 42% of the S$15.5 billion (€7.4 billion) targeted for the year. Singapore welcomed a record 5.1 million visitors in the first half of the year, a 2.9% rise over 2007, or 47% of the 2008 target of 10.8 million visitors. Visitor days rose 13.5% as well.
New developments are set to keep visitors coming. Singapore’s first integrated resort, Marina Bay Sands, is set to open in 2009 and will further enhance the country’s tourism appeal. Las Vegas Sands won the coveted opportunity to create the new resort.
Singapore hotels recorded a record S$1.1 billion (€528 million) in room revenues between January and June, an increase of 22.2% over the same period in 2007. Occupancy rates were also high, reaching 83%.
Attracting both business and leisure travellers Both leisure and business travellers are flocking to Singapore, which does its best to satisfy both markets with a wide range of attractions, exceptional business and conference facilities, and some of the world’s most luxurious hotels and resorts. As a destination known for safety with a national airline that has established a reputation as one of
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Marina Bay Sands: Singapore’s first integrated resort
Marina Bay Sands will be a premier destination for the fast growing meetings, incentives, conventions and exhibitions market thanks to
its 110,000 sq m of exhibition and meeting space. Both business and leisure travellers will be attracted by the resort’s upscale amenities and unique waterfront location on Marina Bay. The resort will offer a wide range of cultural, sports, shopping, and family oriented attractions which will include a Science and Art Museum with a rooftop amphitheatre. For lovers of fine dining and nightlife, Marina Bay Sands will feature a range of celebrity chef restaurants as well as two floating pavilions which will house a microbrewery, a daytime bistro and a nightclub. The resort will also have two theatres hosting 2,000 people. Exceptional offerings like these mean a bright future for Singapore’s tourism industry.
Useful addresses
Singapore International Chamber of Commerce 6 Raffles Quay 10-01 Singapore 048580 Tel.: +65 6500 0988 Fax: +65 6224 2785
Singapore Economic Development Board (EDB) 250 North Bridge Road #24-00 Raffles City Tower Singapore 179101 Tel.: +65 6336 2288 Web site: www.sedb.com.sg
Monetary Authority of Singapore 10 Shenton Way MAS Building Singapore 079117 Tel.: +65 6225 5577 Fax: +65 6229 9229 Web site: www.mas.gov.sg
Singapore Exhibition and Convention Bureau (SECB) Singapore Tourism Board Tourism Court 1 Orchard Spring Lane Singapore 247729 Tel.: +65 6736 6622 Web site: www.meet-in-singapore.com.sg
Ministry of Information, Communications & the Arts 140 Hill Street #02-02, MICA Building Singapore 179369 Tel.: +65 6270 7988 Fax: +65 6837 9480 Web site: mica@mica.gov.sg
Singapore International Chamber of Commerce 6 Raffles Quay #10-01 John Hancock Tower Singapore 048580 Tel.: +65 6224 1255 Fax: +65 6224 2785 Web site: www.sicc.com.sg
Singapore Tourism Board Tourism Court 1 Orchard Spring Lane Singapore 247729 Tel.: +65 6736 6622 Fax: +65 6736 9423
Singapore Tourism Board Tourism Court 1 Orchard Spring laneSingapore 247729 Tel.: +65 6736 6622 Web site: www.stb.gov.sg
Ministry of Trade and Industry (MTI) 100 High Street #09-01 The Treasury Singapore 179434 Tel.: +65 6225 9911 Web site: www.mti.gov.sg
European Chamber of Commerce 350 Orchard Road, #13-09 Shaw House Singapore 238868 Tel.: +65 6836 6681 Fax: +65 6235 1877 Web site: www.eurocham.org.sg
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