SINGAPORE COUNTRY REPORT
1.300 N, 103.80000 E
TABLE OF CONTENTS COUNTRY TRAITS
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COUNTRY STABILITY
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LEAD TIME ON PRODUCTION
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CONDUCTING BUSINESS
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STATE OF THE APPAREL AND TEXTILE INDUSTRY
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SUPPLIERS WITHIN THE COUNTRY
08
TRADE AGREEMENTS
09
TRANSPORTATION
10
RISKS AND BENEFITS
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COUNTRY TRAITS SINGAPORE was founded as a British Trading Colony in 1819. It joined the Malaysian Federation in 1963 but was ousted two years later and became independent. Singapore subsequently became one of the world’s most prosperous countries with strong international trading links (its port is one of the world’s busiest in terms of tonnage handled) and with per capita GDP equal to that of the leading nations of Western Europe.
Singapore Flag
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Country Full Name: Republic of Singapore Capital City: Singapore Government Type: Parliment Democracy Head of State: President Tony Tan Keng Yam Head of Government: Prime Minister Lee Hsien Loong Population: 5.51 million Currency: Singapore Dollar (s$) GDP: $445.2 billion GDP Growth: 2.9% GDP per capita: $82,800 Life Expectancy: 84.38 total population Ethnic Composition: Chinese - 74.2% Malay - 13.3 % Indian - 9.2% Other - 3.3% Major Religions: Buddhist - 33.9% Muslim - 14.3% Toaist - 11.3% Catholic - 7.1% Hindu - 5.2% Other Christian-11% Other - 0.7% None - 16.4% Official Language: Mandarin Exports: Machinery and Equipment (Including Electronics and Telecommunications), Pharmaceuticals and Other Chemicals, Refined Petroleum Products, Food andBeverages Imports: Machinery and Equipment, Mineral fuels, Chemicals, Food, Consumer Goods Time Zone: SGT (Singapore Time) Location: Southeastern Asia, islands between Malaysia and Indonesia S$ to USD: 1 S$ = $0.72 USD
COUNTRY STABILITY POLITICAL
Singapore’s relationship with Malaysia in the past has been a bit tumultuous due to personality clashes between past leaders of both countries, but in recently their relationship has improved immensely with greater economic integration, which is expected to continue in the future. During the 2011 elections the PAP (People’s Action Party) won for the eleventh consecutive year however its voters share fell to 60.1% which means that the opposition party is beginning to gain members, which means there could be a significant change for Singapore’s political landscape during the next elections.
ECONOMIC
Singapore’s current economy has very strong fundamentals, however, the city-state’s economic openness has allowed it to be affected by external macroeconomic shock, which means that economic events in the United States and in Europe and can determine how Singapore recovers. Household debt is beginning to become a concern for the central bank, which since 2009 have tried to implement measures to curb the mortgage-fuelled rise in house prices. Even with these problems Singapore’s economy is expected to grow at 2.80% in 2015.
SOCIAL
Singapore has a great social system including a strong educational system and healthcare facilities. Immigration has become a source of stress for native Singaporeans and the government is encouraging families to have more children. Income inequality like in many other countries has become a great social issue in Singapore. Within the next two decades, the economic and social costs of an aging society will be a major issue for Singapore.
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LEAD TIME ON PRODUCTION
Singapore luckily isn’t prone to too many natural disasters; it does receive a lot of rain through out the whole year so it is very possible that there might be delays due to floods. Tsunamis may occur but are highly unlikely to the fact that Singapore isn’t near any fault line.
Average lead-time depends on which supplier you are working with but on average it is two to fourth months. Due to the diversity in culture in Singapore, there are a few holidays that have to be considered, some holidays are shared with western culture and some are not:
JANUARY 1 - New Year’s Day FEBRUARY 19-20 - Chinese New Year APRIL 3 - Good Friday MAY 1 - Labour Day JUNE 1 - Vesak Day JULY 17 - Hari Raya Pausa AUGUST 7 - SG50 Public Holiday AUGUST 9 - National Day SEPTEMBER 11 - Polling Day SEPTEMBER 24 - Hari Raya Haji NOVEMBER 10 - Deepavali DECEMBER 25 - Christmas Day
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CONDUCTING BUSINESS
The World Bank and International Finance Corporation (IFC) rank Singapore number one in the world for ease of doing business. It is a preferred location for conducting business due to their competitive tax rates and a strategic location. When conducting business in Singapore it is important to remember that Singapore is a multiethnic society comprising of Chinese, Malay, Indian and Eurasian communities. The working language in Singapore is English, there is a local vernacular, Singlish, which is essentially English with local slang and dialect. Other aspects that are important to know when conducting business in Singapore are: PUNCTUALITY:
Singaporeans are known for being punctual and expect the same from the people they are working with.
GIFTS:
Gift giving is a common way of expressing thanks. It can be a small gift like a pen with the company logo, and it is to be presented and received with two hands and is to be opened after the presenter leaves.
ETIQUETTE:
When making introductions for the first time and in formal meetings always use the person’s title and family name followed by his or her personal name, if he has a Chinese name. If whom you are conducting business with has a Western name, they should be introduced in the same way as in the west. The Malays do not use a family name, they use their own personal name followed by Bin (son of) or Binti (daughter of) before their father’s personal name. The Indians use their personal name followed by “son of” or “daughter of” and the father’s personal name. Business cards should be exchanged upon meetings being presented and received with two hands and should be treated respectfully.
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THE SHOPPES AT MARINA BAY SANDS
STATE OF THE APPAREL AND TEXTILE INDUSTRY
Singapore is mostly known for manufacturing pharmaceuticals, machinery and chemicals. The fashion industry is relatively small and up-and-coming compared to these other industries, but even at its comparative small size Singapore’s apparel and textile industry is ranked second, after Hong Kong, as a textile and apparel business sourcing hub in the Asia - Pacific region. The industry is currently comprised of about 5,000 establishments, 500 manufacturers, 4,500 wholesalers and retailers and has generated about $1.6 billion in sales in retail alone.
SUPPLIERS WITHIN THE COUNTRY
BIHQ PTE., LTD.: Ladies Knits, Shorts, Polyester Elastane Phone: +84 4 3858 3225 Address: 12, Changi South Lane, Singapore, 486353 Notable Client: Under Armour Inc. ESQUEL GARMENT MFG.: Cotton Knits Phone: +84 65 0375 742 Address: Vietnam Co. Ltd. 9 Vsip St. 5 Vietnam Singapore Ind Park Binh Duong Vn 0650 757629 Notable Client: Hugo Boss BODYNITS INTERNATIONAL PTE., LTD. Athletic Wear Phone: +84 65 0375 742 Fax: +65 6546 5361 Address: 12 Changi South Lane, Bodynits Building, Singapore, 486353 Notable Client: Lululemon
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TRADE AGREEMENTS
ASEAN
Singapore’s first Free Trade Agreement was ASEAN, which was signed in 1993. Singapore’s network FTAs now includes twenty-one bilateral regional FTAs in force with thirty-two trading partners. The FTAs have been essential in strengthening cross-border trade by eliminating or reducing tariff rates, providing preferential access to services sectors, easing investment rules, improving intellectual property regulations, and opening government procurement opportunities. Singapore works with its ASEAN partners, countries such as Indonesia, Malaysia, Philippines, Thailand, and more, to create the ASEAN Economic Community.
TPP
The TPP is the evolution of the Trans-Pacific Strategic Economic Partnership, or P4, which came to effect in 2006. By 2010, Australia, Malaysia, Peru, the United States and Vietnam, formed the TPP, since then other countries like Mexico, Canada and Japan have joined the TPP. The TPP, together with the ASEAN plus FTAs and Regional Comprehensive Economic Partnership (RCEP), will serve as building blocks towards greater regional economic integration and eventual Free Trade Area of the Asia Pacific (FTAAP).
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TRANSPORTATION
Since Singapore is an island, land transportation isn’t an option for international delivery.
AIRPORTS Public: Changi Seletar
Changi Airport to JFK
PORT OF SINGAPORE Terminals: Brani (BT) Cosco - PSA (CPT) Keppel (KT) Pasir Panjang (PPT 1 - 4) Pasir Panjang Wharwaves Sembawang Tanjong Pagar (TPT)
9537 miles 20h 35m via Taipei (Quickest) *there currently aren’t any nonstop flights to Singapore
Port of Singapore to Port Seattle 40ft 21 days (Average) $5,067.98 Distance: 8,128 mi Company: Pacific North Express Service Route: Singapore - Laem Chabang - Da Chan Bay - Hong Kong - Yantian - Vancouver - Tacoma - Seattle Port of Singapore to Port Savannah 40ft 31 days, 16 hours (Average) $5,067.50 Distance: 12,250 mi Company: South Asia Service (SAS) Route: Singapore - Colombo - Suez Canal - Damietta - Cagliari - Halifax - New York - Savannah
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MARINA BAY
RISKS AND BENEFITS
When it comes to manufacturing apparel in Singapore, the majority of the manufacturers work with knitted products, so if the product that you are trying to get made isn’t knitted you have very limited options about where you can get things made. Although Singapore as an island itself doesn’t get affected by natural disasters as much, some of its surrounding countries do which might create delays.
There is still a lot of opportunity for the apparel industry in Singapore. There are measures that are being taken to improve the ethics in the industry such as innovative companies and government funded organizations that believe in the importance of sustainability. Even though Singapore is a small island there are a lot of resources due to their ties with neighboring countries that provide them with a lot of resources.
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APPENDIX “ASEAN Free Trade Area (AFTA Council).” Association of Southeast Nations. Associa tion of Southeast Nations, n.d. Web. 22 Oct. 2015. <http://www.asean.org/communities/ase an-economic-community/category/asean-free-trade-area-afta-council>. “Business Culture in Singapore.” Denmark in Singapore. The Ministry of Foreign Affairs of Denmark, n.d. Web. 20 Oct. 2015. <http://singapore.um.dk/en/the-trade-council/menu-4/>. “Economic Landscape.” Singapore Country Profile (2015): 35-45. Business Source Premier. Web. 24 Oct. 2015. “Environmental Landscape.” Singapore Country Profile (2015): 58-60. Business Source Premier. Web. 23 Oct. 2015. “Social Landscape.” Singapore Country Profile (2015): 46-51. Business Source Premier. Web. 24 Oct. 2015. “FTAs.” Ministry of Foreign Affairs Singapore. Ministry of Foreign Affairs Singapore, n.d. Web. 23 Oct.2015. <http://www.mfa.gov.sg/content/mfa/international_organisation_initiatives/ftas. html>. “Key Facts And Geographic Location.” Singapore Country Profile (2015): 11-12. Business Source Pre mier. Web. 24 Oct. 2015. “Pestle Analysis.” Singapore Country Profile (2015): 13-28. Business Source Premier. Web. 26 Oct. 2015. “Singapore - The World Factbook.” Central Intelligence Agency. Central Intelligence Agency, n.d. Web. 20 Oct. 2015. <https://www.cia.gov/library/publications/the-world-factbook/geos/sn.ht ml>. “Top 10 Challenges of Doing Business in Singapore.” TMF Group. N.p., n.d. Web. 19 Oct. 2015. <http://www.tmf-group.com/en/media-centre/resources/top-challenges/apac/singapore>. “Transit Time, Distance Calculator & Port to Port Distances.” Sea Rates. Sea Rates,n.d. Web. 24 Oct. 2015. <https://www.searates.com/reference/portdistance/?A=ChIJdZOLiiMR2jERxPWrUs 9peIg&F=ChIJOwg_06VPwokRYv534QaPC8g&B=12117&E=16959&>. Warren, Hayley. “Global Outlook: Ethical Fashion in Singapore.” The Ethical Fashion Source Intelligence. N.p., 13 Mar. 2013. Web. 20 Oct. 2015. <http://source. ethicalfashionfo rum.com/digital/global-outlook-ethical-fashion-in-singa>.