Singapore: Reinventing the future

Aired May 2006

Located in the heart of Southeast Asia, the island city-state of Singapore has an area of about 265 square miles – that’s approximately three and a half times the size of Washington DC.

In Singapore’s case, great things come in small packages. It has a strong and resilient economy. Despite the inherent limitations of a small domestic economy and lack of natural resources, Singapore has established itself as one of the world’s top trading nations.

Consistently voted one of the world’s best business locations, Singapore’s strategic position and political stability have made it an attractive oasis for many foreign corporations targeting Asian markets.

The island-nation has repeatedly won accolades for being the number 1 Asian city to work in, and it offers the most comfortable environment and the highest quality of life for expatriates in Asia.

The stability and dynamism of Singapore is manifested in its many racial and religious groups who live harmoniously together. While the country is always keen to attract foreign talent who are able to contribute to the nation’s development and growth, there is also a highly skilled domestic labour force. Home to a concentration of international enterprises, the nation boasts the presence of more than 7,000 multi-national corporations from around the world.

There is also an ever-expanding network of free trade and investment guarantee agreements that give Singapore-based businesses preferential and safe access to international markets. The city-state already boasts the most extensive free-trade agreement network in Asia, including one with the United States.

The country’s safe, pro-business environment is supported by a well-respected government with transparent and consistent policies. A cosmopolitan society offering a unique blend of Western sophistication and Eastern growth potential, Singapore is an ideal platform for the meeting of global talents, ideas and businesses.

FINANCE

Singapore has long been a key regional financial centre, with more than 1,000 local and foreign financial institutions offering a wide range of financial products and services. The country’s development as an international financial centre began in the late 1960s. There are many factors that have since led to its success as a financial centre. Today, financial services account for nearly 12% of the city-state’s GDP. In 2004, according to the World Economic Forum, Singapore was ranked among the top 10 most sophisticated financial markets in the world. Recently in 2005, the country was named the Financial Centre of the Future by The Banker magazine.

INFRASTRUCTURE & LOGISTICS

Singapore’s strategic location and extensive connectivity is a top attraction.
In 2005, the city-state surpassed Hong Kong as the world’s busiest container port.
With efficient 24-7 operations, and reliable physical and IT infrastructure, Singapore today is a compelling global logistics hub and supply chain management nerve centre. Today, the logistics industry has already shifted from just providing transportation and warehousing, to offering total integrated logistics solutions. The country has its sights set on becoming the leading integrated logistics hub in Asia by the year 2010.

VALUE-ADDED MANUFACTURING

Manufacturing makes up a quarter of Singapore’s economy, and its share of the country’s GDP has been increasingly steadily. With excellent ratings in various areas of manufacturing internationally, Singapore is an exceedingly competitive manufacturing base in terms of total cost-capability. From a labour-intensive economy 40 years ago, the country’s manufacturing culture has since evolved to a research and knowledge-based one.
The nation-state’s vibrant enterprise ecosystem provides all the resources for companies to conduct their complete manufacturing value chain of activities in one compact location. As the principal driver of Singapore’s manufacturing sector, the electronics industry is the largest contributor of value-add per annum. In 2004, this industry had a manufacturing output of $3.1 billion US dollars, and value added $367 million US dollars.
Another field which Singapore is keen to develop is biotechnology.
Many international players have already chosen to base high value-added manufacturing operations in Singapore because of its strong intellectual property rights protection. The industry aims to build on the sophistication and growth potential of the current manufacturing base, and to double the manufacturing output and value-add by 2018, while maintaining its one-quarter share of GDP.

OFFSHORE & MARINE

The increasing global demand for energy provides tremendous growth opportunities for Singapore’s offshore and marine engineering sector, which contributed about $1.3 billion US dollars in added-value in 2004.
The country’s marine and offshore engineering industry is known worldwide for its strengths in offshore exploration and production platforms. Since 1996, local shipyards have captured more than 60% of the world market for the building of new jack-up rigs. About $1.8 million US dollars has been set aside to support product and technology development in the offshore and marine industry. Through extensive maritime research and development projects, Singapore aims to build a repository of expertise, experience and knowledge that will equip the local offshore and marine industry to meet growing challenges in the global arena.

EDUCATION

Singapore is the premier education hub in Asia, with a diverse and distinctive mix of educational services in a safe, cosmopolitan and comfortable environment. Driven by excellence, the country’s education system offers a broad-based curriculum and global perspective to equip students with the relevant qualifications and training that serve as a springboard to a brighter future. In 2004, the nation hosted more than 66,000 international students, who were drawn to the offer of an extensive range of high-quality educational programmes. In the same year, the education sector contributed about $72 million US dollars in added value per annum, a 50% increase over the previous year. Today, the country continues to maintain its status as one of the world’s leading and most trusted education hubs with numerous initiatives.

TOURISM

Singapore is a young, fast-growing, and cosmopolitan country that is a nice blend of the modern and the traditional. Already on the dynamic path to becoming a global powerhouse, Singapore’s unique blend of international perspectives, and harmonious multi-cultural vision further strengthen its appeal in the region. The future of this thriving country offers a world of fascinating possibilities.