Published On : 18-Mar-2022
It has been said that all it would take for an entrepreneur to start a new company in Singapore, is three hours. That is how free trade works in Singapore. Under the leadership of the visionary Prime Minister Lee Kuan Yew, Singapore managed to harness the best of the free market by keeping taxes low, having little to no trade barriers, export-oriented production, quick economic adaptation and immigration-friendly policies. Consequently, Singapore has become a leader in the region, an economic role model, of sorts. The nation has bettered the growth rates of all the other Asian Tigers, namely Hong Kong, Taiwan and South Korea.
Human development levels are very high in Singapore. There is no corruption. The city-state is a major international hub of finance. Without the presence of immense natural resources, Singapore adapted the policy of export-oriented manufacturing, and later, by building a robust services sector. This has resulted in its economic miracle being called the ‘greatest success story of the 20th century’.
Singapore is also a founding member of ASEAN and has signed Free Trade Agreements with several neighbours. Through accords and summits, they have developed friendly ties with Malaysia, China and Indonesia.
The nations of India and Singapore share ties that date back to the time of the Chola Empire, whose rulers are said to have named the island. India was among the first countries to identify Singapore as an independent country. Since the 1990s, India and Singapore have worked quite closely on economic reform and promoting bilateral trade. Indian imports from Singapore totalled $12.31 Billion and exports to Singapore were recorded at $8.3 Billion. The primary Indian exports include refined petroleum, special purpose ships and precious stones. Top imports from Singapore were integrated circuits, computers, refined petroleum and coal.
Not just goods, but service exports too make up a major chunk of Singapore’s exports. In 2018, Singapore exported about $165 Billion worth of services. That accounted for over half of total exports. Primary among these were professional, technical and financial services besides sea and air transport. In 2021, Singapore’s total export volume was $456 Billion.
Singapore’s export-oriented production strategies have made it a leading supplier of Integrated Circuits. In 2019, Singapore was the world’s top exporter of Oxygen Amino Compounds, a chemical primarily used in pharmaceutical processes.
Singapore’s top export partners are China, Hong Kong, the United States, Malaysia, Indonesia and Japan.
In 2019, Singapore’s imports totalled $321 Billion. The top import commodities are electrical & electronic equipment, machinery & nuclear reactors, mineral fuels, pearls & precious stones, and optical and photo apparatus. Singapore’s leading import partners are China, Malaysia, the United States, Japan and South Korea.
As merchandise trade saw a jump of 19.7% in Singapore, the total import volume was recorded at $405 Billion. The nation has bounced back from the COVID19 crisis and is well underway on the path to reclaiming the pre-COVID economic status.
Recently, due to a shifting demographic, Singapore has seen growth rates plateau along the lines of the Japanese economy. The situation can be helped by promoting immigration from other Asian countries. Although immigrants are deterred by the sky-rocketing property prices and rentals in Singapore. Newer export production routes must be explored. Recent administrative action has made Singapore a travel-friendly country, particularly with the opening of casinos and resort towns. The government must look back upon its history of quick adaption, inclusivity and cooperation to keep the growth rates steady.
Cybex Exim Solutions will help you begin import-export operations in Singapore. Contact us at [email protected] or call(+911204517800) or WhatsApp(+9971093718) to access the latest Singapore import data
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