Country Report

Page 1

Singapore

Country Report

Global Sourcing

Shaniya Shabrach-Ortiz


Table of Contents

2


Country Overview

4

History and Country Traits

5

Country Stability

7

State of the Apparel and Textile industry

10

Trade Agreements

12

Country Transportation

13

Main Suppliers

14

Shipping Resources

15

Lead Time of Production

17

How to Conduct Business

18

Risks and Benefits

20

References

21 3


Current News Apple Map now has transit directions for Singapore Transit offers a thorough step-by-step guide to get users from point A to point B using public transport options such as buses and MRT. It will even indicate which is the best MRT exit or platform to take. It comes with local signage’s that carefully recreates the MRT branding, so the directions shown have the same icons seen on the MRT or bus. Thus, users will not be confused.

Male Singapore citizens and residents born from January to March 2000 to register for national service Male Singapore citizens and Singapore permanent residents born between January and March 2000 can register themselves for their national service obligations from May 24 to June 13. Any registrant may apply, whether online or personally, to postpone national service to complete his studies in Singapore.

Tibetan temple in Singapore celebrates Vesak Day with 4 story devotional cloth painting SINGAPORE - The unveiling of a four-story-high devotional painted cloth, or thangka, took pride of place at the annual Vesak Day festivities at the Thekchen Choling Tibetan Buddhist temple on Wednesday May 10 morning. This followed a procession of relics and ritual Buddha bathing, as well as a community funfair in Beatty Lane, which was closed to traffic for the event.

Parliament: Sixth university for Singapore to focus on lifelong learning Singapore will have a sixth autonomous university with its own distinctive focus, as Parliament gives the nod on Monday (May 8) to the new Singapore University of Social Sciences (SUSS), previously called SIM University. Its establishment will give greater diversity and choice to Singaporeans, as it champions lifelong learning and offers programs with a strong social emphasis. 4


History & Country Traits Country: Republic of Singapore Capital City: Singapore Location: Southeastern Asia, islands between Indonesia and Malaysia Type of Government: Parliamentary Republic Head of State: President Tony Keng Yam Head of Government: Prime Minister Lee Hsien Population: $5.7 million Gender Breakdown: 50.4% Male 49.6% Female Education Level: 42% have received post-secondary education Minimum Wage: Singapore doesn’t have a minimum wage

Exports: Machinery and Equipment, Pharmaceuticals, refined petroleum products, food and beverages Imports: Machinery and Equipment, Mineral fuels, Chemicals, Consumer Goods, Foods National Holidays: Vesak Day, Hari Raya Puasa Holiday, National Day Main export sources: China 13.8% Main import sources: China 14.2% Median Age: 34.7 Unemployment Rate: 3.3% Inflation Rate: -0.5% Currency: Singapore Dollar Singapore Dollar to USD: 0.71 GDP Growth: 2.8% GDP per Capita: $85,253 Life Expectancy: 83.4 Ethnic Composition: Chinese 77% Malays 14% Hindu Tamil Indians 8% Other Nationalities 1% Major Religions: Buddhist 34.2% Muslim 14.9% Taoist 11.1% Catholic 6.7% Hindu 5.6% Christian 10% Other 0.8% None 16.7% Official Language: Mandarin Time Zone: SGT 5


6


Country Stability Singapore has an open and small economy. It has one of the highest population densities in the world with 5.7 million people. The performance of the Singapore economy is often seen as a barometer for world trade. Its open and trade-oriented economy makes it particularly vulnerable to external shocks. The sluggish global economy contributed to Singapore’s slower GDP growth in the past few years. Current constraints on labor and credit will dampen growth and export levels, although an expansionary budget and looser monetary policy are hoping to raise that. The official medium term forecast is for GDP growth to average 1-3% up to 2020. Since Singapore is such a small country and they do have to import a lot of good the exchange rate could affect their global sourcing in the future making it more expensive to get their products and could impact their investment portfolio. For their future economy, Singapore will maintain their momentum from 7 sectors: finance, hub services, logistics, urban solutions, healthcare, digital economy, and advanced manufacturing. They specifically will be focusing on attracting more investments, enhancing Singapore’s digital and tech

7


Singapore is a highly prosperous island state that serves as a business hub for South East Asia. It is one of the world’s most important ports and one of the region’s most politically stable countries. Singapore practices a modified version of the Westminster Parliamentary system. Each parliament sits for a max of 5 years. The ruling People’s Action Party (PAP) has been dominant since 1959, before Singapore became independent and the PAP currently holds 83 of the 87 elected seats in Singapore’s single chamber Parliament. The workers party is the largest opposition party in parliament.

8

Singapore and the US have a comprehensive relationship since 1966. Singapore's support for regional cooperation harmonizes with U.S. policy in the region and therefore forms solid basis for amicable relations between the two countries. Former President Barack Obama made the decision to host a state dinner for Singapore Prime Minister Lee Hsien Loong in August of 2016 to mark the 50th anniversary of diplomatic relations between the two countries. This highlighted the administration’s recognition of the importance of this relationship. As for other countries, Singapore has had issues with Malaysia due to clashes between leaders, but there has been reconciliation between the two recently with hopes of more economic integration.


P

S

- Political risk is extremely low - Lack of political openness and human rights - Invite foreign investments - Not a lot of import duties - Political Stability

- High literacy rate - Well educated - Recruit foreign talents to work in both public and private sectors - Future difficulties with immigration - Decreasing birth rate and aging population

E

T

- Strategic geographic location - Aimed at attracting foreign investments - Low employment rate - High per capita income - Labor shortages

- Strong and well prepared IT infrastructure - Transporting goods is more effective and cheaper than other countries in that region - Electronic commerce - Quality workforce and competitiveness - World class reputation for inventing adopting and developing new technology 9


State of the Apparel and Textile Industry Singapore is known for manufacturing machines, chemicals, and pharmaceuticals. As for the apparel and textile industry, they were the second largest textile and apparel business and sourcing hub in the Asia Pacific market. However, in the past couple of years, they have seen a decrease in the domestic exports, due to many manufacturers moved their production outside of Singapore and into lower cost countries like China, Indonesia, Malaysia, and Sri Lanka.

Singapore is known for manufacturing machines, chemicals, and pharmaceuticals. As for the apparel and textile industry, they were the second largest textile and apparel business and sourcing hub in the Asia Pacific market. However, in the past couple of years, they have seen a decrease in the domestic exports, due to many manufacturers moved their production outside of Singapore and into lower cost countries like China, Indonesia, Malaysia, and Sri Lanka.

10


The textile market in the Asia Pacific Region is said to be the fastest growing textile market at CAGR of 5.63% from 2015-2020. This is a challenging to enter the market for Singapore because of how dominate China is. Singapore ranks 13th as the largest overall export market for the US. Since the Singapore Free Trade Agreement, US exports to Singapore have grown by 50% and they are the 17th largest trading partner. The key apparel and textile exports to the US are non-woven, medical textiles, and protective apparel. Exports of non-woven have increased by 15.5% in 7 years. This increase is due to Singapore’s rising middle class, high standard of living, and strong manufacturing sector. Labor Costs in Singapore increased to 118.80 Index Points in the fourth quarter of 2016 from 110.90 Index Points in the third quarter of 2016. Labor Costs in Singapore averaged 98.58 Index Points from 1980 until 2016, reaching an all-time high of 136.30 Index Points in the first quarter of 2013 and a record low of 57.37 Index Points in the second quarter of 1980.

11


The US-Singapore Free Trade Agreement (USSFTA) was effective on January 1st 2004. The goal was to boost bilateral trade. It eliminated almost all import duties between the two countries and provided for complete duty phase out by January 1st 2013. This was beneficial for both countries as it helped increase US exports, improve U.S. competitiveness, secure a presence in Southeast Asia, promoting labor rights and the environment, increased government procurement opportunities, and export opportunities for certain US manufacturing sectors. Over 10 years later, the trade volumes have grown by 53% reaching US $50 billion dollars.

Trade Agreements 12

The Association of Southeast Asian Nations (ASEAN) is a regional grouping that promotes economic, political, and security cooperation among its ten members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. They have a market with a GDP of more than 2 trillion and a population of 620 million people. The United States signed the ASEAN Treat of Amity and Cooperation (TAC) in 2009 and was the first non ASEAN country to name an ambassador and establish a permanent mission to there. In 2012, they launched the US-ASEAN Expanded Economic Engagement (E3) initiative. This allows them to expand trade and investment between the countries and create new business opportunities and jobs. The 11 countries are working together to identify ways to increase efficiency and competitiveness of trade flows/supply chains. US goods and services with ASEAN countries totaled $241.7 billion.


Transportation

Two public airports Changi & Seletar Changi Airport to JFK 9535 miles 20h 37min via Taipei

Port of Singapore Terminals: Brani Cosco Jurong Pasir Panjing Pasir Panjing Wharves Sembawang Tanjong Pagar

Port of Singapore to Port Savannah 40ft container Days at sea: 24.3 $5,112.40 Distance: 11,680 mi

Singapore is an island so transporting goods by land isn’t an option internationally.

Port of Singapore to Los Angeles 40ft container Days at sea: 34.6 $5,469.50 Distance: 16,611

13


Manufacturing & Shipping

Ecu Line Singapore Pte. Ltd. Luxury, Textiles Address: 06 06 To 06 11 Westech Bldg 237 Pandan Loop Singapore 128424 Tesingapore Phone: +65 6220 1366 http://www.ecuworldwide.com/ Customers: Ecu Worldwide (USA) Inc, ETO Precision of America Inc. Entegris Inc. Dallas

Oocl Logistics Singapore Pte., Ltd. Women’s Apparel, Textiles Address: Ocbc Ctr 42 00 No 65 Chulia Singapore 049513 Singapore 64381808 65367572 Phone: +65 6438 1808 http://www.oocl.com/eng/Pages/default.aspx Customers: Oocl U.S.A Inc, Disney Theme Park Merchandise, Brother International Corporation

Benkel International Pte., Ltd Women’s Apparel, Textiles Address: 2 Bukit Merah central Podium Bldg 05 08 Singapore 159835 Tetel 65 62786625 Phone: +65 6278 6625 http://benkel-international.com/ Customers: Ctl Usa Inc. Ny, CTL Lax Inc., Jones Apparel Group Usa Inc.

14


FPS Global Logistics Pte LTD Block 511 Kampong Bahru Road #02-03 Keppel Distripark Singapore 099447 65) 6240 1900 (65) 6883 2748 http://www.famous.com.sg/Default.aspx admin@famous.com.sg

Megaton Shipping Pte Ltd 2 Leng Kee Road #03-11 Thye Hong Centre Singapore 159086 (65) 6473 7688 (65) 6473 5901 http://www.megaton.com.sg/ mspl@megaton.com.sg

Costar Shipping Corporation Limited 16 Raffles Quay, #36-01 Hong Leong Building Singapore 048581 62261900 62262208 enquiry.sg@costar.com.sg http://www.costar.com.sg/

15


16


Lead time of Production

Due to Singapore’s location it is not subject to many natural disasters. It is protected by the Indonesian, Malaysian, and Philippines island. They block the country from tsunamis. Singapore also doesn’t lie on any seismic faults so they don’t have to deal with earthquakes or volcanoes. Singapore does have occasional flooding, droughts, wildfires and heat-waves that could cause delays on production, but that is the extent.

Being that Singapore is such a diverse country, they don’t celebrate all western holidays. Holidays: New Year’s Day - January 1st Chinese New Year - January 28th & 29th Good Friday – April 14th Labour Day – May 1st Vesak Day – May 10th Hari Raya Puasa – June 25th National Day – August 9th Hari Raya Haji – September 1st Deepavali – October 18th Christmas Day – December 25th

17


How to Conduct Business Language

It is important to remember when conducting business that Singapore is a very diverse country. It is comprised of Chinese, Malay, and Indian communities. The official languages are Chinese, Malay, and Tamil, however the working language is English. They will use local slang and dialect when specking so they speak “Singlish”.

Culture

When traveling with a significant other avoid public displays of affection and show little to no emotion. Joking around with someone should only be done after building a solid relationship. When it comes to business meetings lunch and dinner are the preferred meals for discussions, business breakfasts are rare. It is also common to share multiple dishes at a table. If you have a host you should allow them to order all the dishes, trusting their judgment to serve the group as a whole. As a sign of respect you never share leftovers and always eat with your utensils.

Gifts

Giving gifts is a common way of expressing your gratitude. Typically, small business related gifts will suffice. They are usually wrapped, presented and received with two hands, and won’t be opened until the gift giver leaves. However, you should never give them a set of 4 anything or a clock because it is associated with death.

18


Etiquette

First time introductions in a formal setting require using the person’s title and family name followed by their personal name, if they have a Chinese name. If they have a western name they should be introduced in the western way.

Punctuality

Singaporeans are punctual for these meetings and appointments and they expect the same with others. If you are going to be late it is polite to call ahead of time.

Attire

Men wear long sleeved shirts, trousers and ties. Women wear a blouse with long sleeves, skirt, or trouser suit.

Negotiations

When negotiating it is nice to send a list of people who will be attending and their title. Singaporeans like to bargain and the negotiation process can be very slow. They can take up to a fifteen second pause before answering questions. However, once a business deal is closed an exchange of gifts occurs.

Business Cards

Business cards should be treated with respect and care and exchange upon meetings. They should be given and received with both hands. Once you receive it you should lay it in front of you on the table in accordance with the placement of the people you are meeting with. Do not write on the business card as it can be seen as disrespectful.

19


Risks and Benefits When it comes to manufacturing apparel in Singapore, one of the risks to consider is their surrounding countries. While Singapore itself is not at risk for natural disasters. While Indonesia and Malaysia are prone to them, which could cause potential delays. One must also keep in mind that Singapore is more of a distribution country, rather than a manufacturing country. One of their only growing markets in manufacturing is for technical textiles. If the product trying to get produced doesn’t fall under that category, there are very limited options.

Singapore does have a lot of room for growth and opportunity in the apparel industry. While they are a small island, they are in a prime location. They have a lot of resources due to their ties with neighboring countries. They also have a diverse population where English is the work language, which will be very beneficial when trying to communicate with people. Singapore is aimed at attracting foreign investments and there is a lot of progress being made to improve ethics in the industry. Government funded programs are being set up in order to improve upon our sustainability.

In conclusion, Singapore still has areas in which they need to improve upon in order to be at the top in the apparel industry. Due to the cheap labor costs other countries, they have become a more sought after option than Singapore. However, if you are looking for a country to manufacturer technical textiles, Singapore would be a great choice. Companies should look to Singapore for their distribution rather than manufacturing.

20


References Atradius. "Atradius." APAC Country Report Singapore January 2017 | Atradius. N.p., 31 Jan. 2017. Web. 14 May 2017. Davie, Sandra. "Parliament: Sixth University for Singapore to Focus on Lifelong Learning."The Straits Times. N.p., 08 May 2017. Web. 11 May 2017. Focus Economics. "Singapore Economy - GDP, Inflation, CPI and Interest Rate."FocusEconomics | Economic Forecasts from the World's Leading Economists. N.p., 25 Apr. 2017. Web. 14 May 2017. Global Finance. "Singapore GDP and Economic Data." Global Finance Magazine. N.p., Jan. 2017. Web. 14 May 2017. Heritage Foundation. "Singapore." Singapore Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. N.p., 2017. Web. 7 May 2017. Leow, Annabeth. "Tibetan Temple in Singapore Celebrates Vesak Day." The Straits Times. N.p., 10 May 2017. Web. 11 May 2017. Ministry of Foreign Affairs, Um. "Business Culture in Singapore." Business Culture in Singapore. N.p., 2016. Web. 14 May 2017. Min, Chew Hui. "Male Singapore Citizens and Residents Born from January to March 2000 to Register for National Service." The Straits Times. N.p., 10 May 2017. Web. 1 Mitchell, Laura. "MAPPED: Countries Where Natural Disasters Are Most and Least Likely to Strike in 2017." Dailystar.co.uk. Daily Star, 19 Jan. 2017. Web. 11 May 2017. Nationsonline.org, Klaus Kästle -. "___ Singapore." Singapore - Country Profile - Nations Online Project. N.p., Dec. 2016. Web. 10 May 2017. Panjiva. "Oocl Logistics Singapore Pte., Ltd., Ocbc Ctr 42 00 No 65 Chulia Singapore 049513 Singapore 64381808 65367572 | Supplier Report — Panjiva." , Ocbc Ctr 42 00 No 65 Chulia Singapore 049513 Singapore 64381808 65367572 | Supplier Report — Panjiva. N.p., 2016. Web. 14 May 2017. Picardo, CFA Elvis. "Understand the Indirect Effects of Exchange Rates." Investopedia. N.p., 31 May 2015. Web. 06 May 2017. Solutions, EIU Digital. "Singapore." Singapore Economy, Politics and GDP Growth Summary - The Economist Intelligence Unit. N.p., 7 Nov. 2016. Web. 5 May 2017. Tan, Trevor. "Apple Maps Now Has Transit Directions for Singapore." The Straits Times. N.p., 10 May 2017. Web. 11 May 2017. Trading Economics. "Singapore Labour Costs 1980-2017 | Data | Chart | Calendar | Forecast." Singapore Labour Costs | 1980-2017 | Data | Chart | Calendar | Forecast. N.p., 2017. Web. 04 May 2017.

21



Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.