Download Singapore - Alberta, Canada

Singapore: City of the Lion
General Overview
Officially known as the Republic of Singapore, Singapore is an island country centrally located in
Southeast Asia just south of the Malay Peninsula. Singapore is a multicultural city-state located at the
crossroad of global trade routes. Singapore is a leading financial hub, a regional trading centre and has
the world’s second busiest port. For nine consecutive years, Singapore has been named the “world’s
easiest place to do business” and it has ranked second as the city with the best investment potential
worldwide for 14 consecutive years.
Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and
corruption-free environment, stable prices and a per capita income that is the third highest in the world. In
addition to its globalized and diversified economy, Singapore places highly in international rankings with
regard to education, transportation and healthcare. The country is Asia’s most “network ready” country,
has the highest skilled labour in Asia and labour regulations are the most business conducive in the
region.
Singapore is a major global trading hub that is home to some of the world's largest commodity trading
companies. The network of buyers and sellers in Singapore creates an effective marketplace for Alberta
companies who are looking to sell their products into Southeast Asia. Singapore with its strong financial
industry represents an attractive market for Alberta companies looking for investment capital.
Economic Overview
As of 2014, Singapore’s gross domestic product (GDP) stands at USD $307 billion while its per
capita GDP is USD $55,568 (almost equal to Alberta’s). According to HSBC’s Global
Connections report:
Singapore’s open and trade-oriented economy depends heavily
on exports, particularly in consumer electronics, information
technology products and pharmaceuticals. At the same time,
Singapore is a leading provider of services in international
banking, trade finance, maritime finance, insurance, treasury
operations and asset and wealth management within the region.
With pro-business policies, a stable government and strong institutions, Singapore offers political
stability that is vital to foreign investment. Government agencies, in particular, have a pro-business
approach that encourages close cooperation with the private sector in promoting economic growth.
As a crossroads of international trade, Singapore acts as a gateway between Asia and the world. The
country has excellent shipping and air links, infrastructure and banking facilities that Alberta companies
can take advantage of when expanding in Asia. In addition, Singapore has extensive trade links with
other countries having signed 21 regional and bilateral free trade agreements with 32 trading partners
and 39 investment guarantee agreements. Singapore is one of the top international financial centres
and its financial system is well-regulated and offers a broad range of services. Singapore has a
reputation for its tough stance against corruption and has a strong legal and judicial system. According
to the World Economic Forum Global Competitiveness Report, Singapore is the top rated country in
Asia for intellectual property rights protection and the second highest rated in the world.
The procedures for setting up and running a company in Singapore are straightforward with minimal
regulations, compliance costs and efficient reporting requirements. At the same time, Singapore is
recognized for its highly skilled workforce. With unions working closely with the government and private
sectors, labour disputes in Singapore are rare. Singapore offers a competitive tax regime for both
companies and individuals with low tax rates and numerous tax incentives.
According to Export Development Canada, companies contemplating setting up offices in Singapore
need to exercise caution, as the costs of operating in Singapore are high. Real estate at prime
locations comes at a high premium and leasing rates for office space is considered one of the highest
in Asia. It is also highly dependent on foreign labour, with semi-skilled and unskilled labor in acute
shortage. Wage levels at the skilled and white-collared segment are under tremendous upward
pressure.
Market Opportunities
Singapore’s strategic location at the entrance to the Strait of Malacca is the shortest sea route for oil
shipments from the Persian Gulf suppliers to Asian markets, specifically to one of the world’s fastest
growing economies: China. Alberta has had significant sales of petroleum and gas equipment through
Singapore.
In 2012, Alberta agri-food exports to Singapore totaled CAD $21 million, an increase of 56.5 per cent
over the previous year. Alberta tallow exports continue to increase at a considerable rate. Small and
medium sized business will find that, despite its high costs, Singapore reputation of being the world
easiest place to do business is well earned.
Singapore’s information and communications technology (ICT) sector offers opportunities in mobile
technologies, broadband and next generation applications, digital media, communications security, and
e-commerce solutions and services. Other areas of interest for Alberta companies in Singapore
include: electrical equipment, transport equipment, environmental goods and services, chemicals and
mineral fuels and petroleum and gas equipment. Opportunities exist for Alberta to export equipment
and components for manufacturing and assembling products to Singapore.
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Demographics, Language and Culture Overview
Singapore is a multiracial and multicultural country with a total population of 5.5 million comprised of
3.4 million residents and 2.1 million non-residents and a growth rate of 1.3%. While Singapore is
diverse, ethnic Asians predominate: 75 per cent of the population is Chinese, with significant minorities
of Malays, Indians, and Eurasians. There are four official languages—English, Malay, Mandarin, and
Tamil—and the country promotes multiculturalism through a range of official policies. English is the
preferred language for business and in public administration. Mahayana Buddhism is most widely
adhered to religion in Singapore with significant numbers following Islam, Christianity, Hinduism,
Sikhism.
Free Trade Agreements
Since 1999, Singapore has pursued a dual track of negotiating multilateral trade agreements as well as
bilateral free trade agreements (FTAs). Singapore's key interest lies in establishing FTAs that are
World Trade Organization (WTO) consistent, with WTO-plus commitments with its key trading partners
while advancing global free trade through multilateral trade agreements. Since the signing of
Singapore’s first FTA under the ASEAN Free Trade Area in 1993, Singapore's network of FTAs has
grown to include 21 bilateral and regional FTAs in force with 32 trading partners.
Singapore has bilateral FTAs with Australia, China, Costa Rica, the Gulf Cooperation Council (Bahrain,
Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates), India, Japan, Jordan, Korea, New
Zealand, Panama, Peru, the United States and the European Free Trade Association (Switzerland,
Iceland, Liechtenstein and Norway).
Singapore is part of the current Trans-Pacific Partnership (TPP) free trade negotiations that includes
Canada. Canada and Singapore had launched bilateral FTA negotiations in 2001 but negotiations have
been on hold since 2009. Canada’s participation in the Trans-Pacific Partnership negotiations provides
the opportunity to pursue its trade and investment interests with Singapore.
Canada/Alberta Bilateral Relations with Singapore
Bilateral relations between Canada and Singapore are broad and characterized by cooperation in a
variety of areas. According to Statistics Canada, Singapore is the second largest recipient of Canadian
Direct Investment Abroad (CDIA) in Southeast Asia. The total investment was CAD $2.2 billion in 2013.
In the reverse direction, Singaporean investment in Canada was officially recorded at CAD $683 million
in the same year, making the country by far the largest investor from Southeast Asia in Canada.
In order to strengthen Alberta's position in priority international markets and to better support Alberta
companies, the Alberta Singapore Office was opened in January 2014. The office promotes Alberta
business interests, attracts investment to Alberta and educates local stakeholders on Alberta’s key
sectors and international priorities. It serves as a regional hub to access Singapore and other prior ity
markets in Southeast Asia.
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Alberta and Singapore enjoy strong links through research and education agreements, a strong level of
trade and investment in the energy and agriculture sectors. From 2009 to 2013, Alberta’s exports to
Singapore averaged CAD $167 million per year. These exports consisted mainly of plastic, machinery,
cobalt, energy and agri-food exports such as tallow and pork. These trade ties are enhanced by the
hundreds of Singaporean who have chosen to study, work and reside in Alberta and the many
Albertans who reside in Singapore.
For Alberta companies looking for potential investment capital, a regional hub to sell to the Southeast
Asia region or for a highly developed consumer market, Singapore represents the best combination of
all three.
For further information please contact:
Alberta Singapore Office
The High Commission of Canada
One George Street, #11-01
Singapore 049145
Phone: 011-65-6854-5838
Email: [email protected]
July 2015
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