Singapore - Latest News/Current Events, Economic Overview & Trade Relations
Quick Facts about Singapore
| Official Name | Republic of Singapore |
| Capital | Singapore |
| Location | Southeastern Asia, islands between Malaysia and Indonesia |
| Area | total: 692.7 sq km land: 682.7 sq km water: 10 sq km |
| Climate | tropical; hot, humid, rainy; two distinct monsoon seasons - Northeastern monsoon (December to March) and Southwestern monsoon (June to September); inter-monsoon - frequent afternoon and early evening thunderstorms |
| Terrain | lowland; gently undulating central plateau contains water catchment area and nature preserve |
Editor PicksBrowse Asia News Archive
Singapore dollar climbs to 2-day high against U.S. and Hong Kong counterparts
During early deals on Wednesday, the Singapore dollar climbed to a 2-day high against its U.S. and Hong Kong counterparts as a rebound in Asian stocks increased demand for emerging market assets. On the other hand, the Singapore currency edged down against the euro and the pound. The Singapore dollar declined to a 2-day low versus the European currency. The Singapore dollar that closed Tuesday's New York deals at 1.4968 against the US currency rose to a 2-day high of 1.4936 at 11:10 pm Eastern Time. On the upside, the Singapore currency may likely find target near the 1.485 level. The pair is currently quoted at 1.4940.
During early deals on Wednesday, the Singapore dollar climbed to a 2-day high against its U.S. and Hong Kong counterparts as a rebound in Asian stocks increased demand for emerging market assets. On the other hand, the Singapore currency edged down against the euro and the pound. The Singapore dollar declined to a 2-day low versus the European currency. The Singapore dollar that closed Tuesday's New York deals at 1.4968 against the US currency rose to a 2-day high of 1.4936 at 11:10 pm Eastern Time. On the upside, the Singapore currency may likely find target near the 1.485 level. The pair is currently quoted at 1.4940.read source article
Singapore Tourist Arrivals Dip 15%
Visitor arrivals to Singapore declined 15 percent in February compared to a year ago as the global economic downturn cut consumer spending and holiday plans.
Visitor arrivals to Singapore declined 15 percent in February compared to a year ago as the global economic downturn cut consumer spending and holiday plans. Only 689,000 tourists arrived in February, compared to 813,000 last year. This is the biggest decline since June 2008 when tourism arrivals started declining. Visitor arrivals in 13 of the top 15 markets - except Vietnam and the Philippines - registered negative growth over January. The five top markets were Indonesia (103,000 arrivals), China (80,000), Australia (51,000), UK (47,000) and Malaysia (46,000), which accounted for about 48 percent of total visitor arrivals in February.Singapore Economy Might Be Near Bottom
Finance Minister Tharman Shanmugaratnam said the Singapore economy could reach a bottom within the next six months.
Finance Minister Tharman Shanmugaratnam said the Singapore economy could reach a bottom within the next six months. But he added that growth is likely to remain weak until at least the end of 2009 and possibly 2010. He also expressed his confidence that Singapore will emerge stronger after the crisis than before.read source article
Singapore Inflation Eases In February
Inflation in Singapore continued to ease in February, dropping by 0.5 percent over January.
Inflation in Singapore continued to ease in February, dropping by 0.5 percent over January. This is the fourth consecutive monthly decline and is more than what economists expected as falling food and oil prices push costs downwards. Food prices fell 0.5 percent while housing costs dropped 0.5 percent. On a year-on-year basis, consumer prices remained 1.9 percent higher last month than a year ago. Food prices were also still 4.3 percent higher and housing prices 6.6 percent higher than a year ago.Singapore Government To Buffer Impact Of Global Economic Crisis
Singapore Prime Minister Lee Hsien Loong recently said in a BBC interview that the government will help buffer the impact of the global economic downturn on Singaporeans and businesses, but the country will not start to recover until the global economy starts to heal.
Singapore Prime Minister Lee Hsien Loong recently said in a BBC interview that the government will help buffer the impact of the global economic downturn on Singaporeans and businesses, but the country will not start to recover until the global economy starts to heal. The unprecedented dip into the reserves and the S$20.5 billion Resilience Package is meant to absorb some of the shocks of the global economic slump. But since Singapore has the world's highest trade to gross domestic product ratio, with imports and exports totaling about 3.5 times its GDP, the country's economy is especially sensitive to changes in the global economy.read source article
Banks More Bearish On Singapore
Major investment banks have slashed growth forecasts for Singapore as the weakening global economy hits the country's export industry.
Major investment banks have slashed growth forecasts for Singapore as the weakening global economy hits the country's export industry. Goldman Sachs expects Singapore's economy to contract by 8 percent this year, worse than its previous forecast of 4 percent. Credit Suisse expects a 6.5 percent contraction, down from its earlier forecast of 5 percent. HSBC now sees a 7 percent fall after earlier predicting a 5 percent decline. These bank forecasts come after Minister Mentor Lee Kuan Yew raised the possibility that the country's economy could shrink by as much as 10 percent this year if exports continue to drop at the same speed as they did earlier this year.Browse Asia News Archive
Trade Agreements
ASEAN - China Free Trade Area
The ASEAN - China Free Trade Agreement will apply in an area involving 1.7 billion consumers, making it the world's largest trading area. The agreement currently establishes a zero-tariff market. The agreement now contains trade in goods, services and dispute settlement. Investment is still under negotiation.
ASEAN - Korea Free Trade Area
Under the ASEAN- Korea Free Trade Agreement, Korean businesses will gain access to the ASEAN market, which contains nearly 500 million people. The agreement contains trade in goods and tariffs will be either eliminated or reduced on Korean products. http://www.aseansec.org/18063.htm
ASEAN Free Trade Area
Initiated in 1992, ASEAN Free Trade Area (AFTA) main mechanism used to reduce tariffs in ASEAN. It originally contained six members (Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand) the other four members (Vietnam -1995, Laos -1997, Myanmar-1997 and Cambodia-1999) joined after the original agreement was signed. In order to join ASEAN, they had to agree to AFTA. The overall objective of AFTA is to encourage more foreign investment to ASEAN and establish ASEAN as a world competitor by eliminating both tariff and non-tariff barriers within ASEAN. Over the next 15 years, ASEAN agreed to reduce tariffs 0-5%. http://www.aseansec.org/19346.htm
European Free Trade Assoc.-Singapore Free Trade Agreement
In force since 2003, the Free Trade Agreement between the EFTA States and Singapore encompasses trade in goods, services and investments. EFTA’s agreement with Singapore is the most substantive agreement regarding services that EFTA has entered. The agreement allows for both foreign and domestic investments. A joint committee oversees the Agreement. http://secretariat.efta.int/Web/ExternalRelations/PartnerCountries/Singapore
Global System of Trade Preferences among Developing Countries
Algeria
Argentina
Benin
Bolivia
Brazil
Cameroon
Chile
Colombia
Cuba
Ecuador
Egypt
Ghana
Guinea
Guyana
Iran
Iraq
Libya
Mexico
Morocco
Mozambique
Nicaragua
Nigeria
Peru
Sudan
Tanzania, United Republic Of
Trinidad And Tobago
Tunisia
Venezuela
ZimbabweThe Global System of Trade Preferences arose out of the United Nations Group of 77. The Group first appeared interested in 1976 to develop a global system of trade for developing countries. Over years of negotiations, the agreement was signed by the participating members of the Group of 77. The members are currently looking to expand their economic ties to other developing countries in Asia, Latin America and Africa. http://www.unctadxi.org/templates/Page____6207.aspx
India – Singapore Closer Economic Partnership
India’s first Closer Economic Partnership Agreement was signed with Singapore in 2005 after thirteen rounds of negotiations. The agreement is also the first comprehensive bilateral agreement that Singapore has entered with a south Asia economy. A key feature of the Agreement is the avoidance of double taxation agreement. This prevents double taxation of an income earned by a resident of one member country in another member country. http://app.fta.gov.sg/data//fta/file/India-Singapore%20Comprehensive%20Economic%20Cooperation%20Agreement.pdf
Japan - Singapore Economic Agreement for a New-Age Partnership
The JSEPA strives for better market access as well as national treatment conditions. The Japan Singapore agreement is the model agreement for Japan as it was its first EPA. Not only does it cover tariff reduction, JESPA synchronizes customs procedures and addresses the movement of people. http://www.fta.gov.sg/fta/pdf/FTA_JSEPA_Agreement.pdf
Korea – Singapore Free Trade Agreement
The “ “ will allow all Korean exports to enter tariff-free to Singapore. The Korean market will also be opened to various Singapore services. Singapore will support Korea’s expansion into ASEAN while Korea will provide a bridge for Singapore to enter Northeast Asia. i. http://docsonline.wto.org/DDFDocuments/t/WT/REG/210-1.doc
New Zealand – Singapore Closer Economic Partnership
One of the most comprehensive trade agreements entered into by New Zealand, The New Zealand – Singapore Closer Economic Partnership address goods, services, investment and barriers. Through the agreement, New Zealand has set up its first technology center in Singapore encouraging international business. Economic cooperation and the overall market access has improved significant with the agreement. Under the agreement, both countries will: eliminate tariffs (allowing numerous Singapore exports to gain preferential market access), liberalize service sectors, commit to a set of rules and framework, establish a Mutual Recognition agreement and establish a government procurement market. http://www.fta.gov.sg/fta/pdf/anzscep.pdf
Singapore – Australia Free Trade Agreement
The Singapore – Australia Free Trade Agreement was signed in 2002 after 10 rounds of meetings and negotiations. SAFTA will be the first bilateral free trade agreement the Australia has entered into, as the last one was in 1983 with New Zealand. According to the agreement, all tariffs will be eliminated, Australian exporters will gain more market access and the market will be more open and predictable. Investors from Singapore will have more opportunities to invest in Australia. The customs procedures will be improved and Singapore will have access to the Australian workforce. The FTA will not only benefit the economies of both countries but the service industry as well. http://www.fta.gov.sg/fta/pdf/FTA_SAFTA_Agreement.pdf
Singapore – Jordan Free Trade Agreement
JordanThe Singapore-Jordan Free Trade Agree is a first for both. It is the first FTA Singapore has signed with a Middle Eastern country and Jordan’s first with an Asian country. Along with signing the FTA, both countries created a Bilateral Investment Treaty. Singapore hopes to gain deeper access to the Middle Eastern region through Jordan. The agreement encourages business alliances, exploration and opportunities. Upon implementation, products from Jordan will receive no customs duties and those coming from Singapore will see a gradual reduction of customs duties. http://www.jftp.gov.jo/Singapore.htm
Singapore – Panama Free Trade Agreement
PanamaThe Panama-Singapore Free Trade Agreement was signed in 2006 after 3 rounds of negotiations. It is Singapore’s first FTA with a Latin American country. As Panama is home to the second largest free trade zone, it will provide Singapore an opening into the Americas. A comprehensive agreement, the PSFTA will open up the markets of both countries and enhance investment and collaboration. http://app.fta.gov.sg/data///fta/Panama-Sg%20FTA/Singapore%20Consolidated%20Text%20Feb%2006%20-%20for%20printing.pdf
Trade and Investment Framework Arrangement between the United States of America and the Association of Southeast Asian Nations
United States of AmericaThe Enhanced partnership between ASEAN and the United States will increase cooperation and understanding in the areas of politics, economics and safety. EAI, Enterprise ASEAN Initiative, will strengthen economic cooperation and will allow and increase of trade and investment between both parties. Both sides have also vowed to work together on various projects in the development arena including, fighting infectious disease and disaster relief. http://www.ustr.gov/assets/Trade_Agreements/TIFA/asset_upload_file932_9760.pdf
Trans-Pacific Strategic Economic Partnership Agreement
The Trans-Pacific Strategic Economic Partnership Agreement was concluded in 2005. The Agreement has previously been know as the Pacific Tree FTA; however, upon the entry of Brunei, it changed to its current title. It spans three continents, the first FTA to do so, and it seeks to connect the economies of the involved countries. Most of the tariffs were eliminated upon entry into force as well as immediate market access. http://www.mfat.govt.nz/Trade-and-Economic-Relations/0--Trade-archive/0--Trade-agreements/Trans-Pacific/0-sep-index.php
United States – Singapore Free Trade Agreement
United States of AmericaThe first FTA signed by President Bush, the US-Singapore Free Trade Agreement, expands the United States market access. Upon entry, Singapore will eliminate all tariffs on US goods. The United States’ 15th largest trading partner is Singapore. The agreement contains both WTO-plus and NAFTA-plus commitments thus giving it the reputation as a landmark agreement. It is also the first FTA between the United States and an Asian country. The agreement will support US growth and support its establishment of other agreements with ASEAN countries. http://www.fta.gov.sg/fta/pdf/FTA_USSFTA_Agreement_Final.pdf
Trade Organizations
ASEAN Plus 3
Forum as a coordinator of cooperation between ASEAN and China, Japan and South Korea.
Asia Cooperation Dialogue (ACD)
The Asia Cooperation Dialogue (ACD) is an International Organization to promote Asian cooperation at a continental level, helping to integrate the previously separate regional organizations of political or economical cooperation such as ASEAN, SAARC
Asia-Pacific Economic Cooperation (APEC)
Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries or regions (styled 'member economies') to discuss the regional economy, cooperation, trade and investment. The membership is claimed to account for approximately 41 percent of the world's population, approximately 56 percent of world GDP and about 49 percent of world trade. The activities, including year-round meetings of the members' ministers, are coordinated by the APEC Secretariat.
Association of Southeast Asian Nations (ASEAN)
Association of Southeast Asian Nations, commonly referred to as ASEAN, is a geo-political and economic organization of 10 countries located in Southeast Asia, which was formed on August 8, 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Its aims include the acceleration of economic growth, social progress, cultural development among its members, and the promotion of regional peace.
Council for Security Cooperation in the Asia Pacific (CSCAP)
The Council for Security Cooperation in the Asia Pacific (CSCAP) is a non-governmental (second track) process for dialogue on security issues in Asia Pacific.
East Asia Summit (EAS)
The East Asia Summit (EAS) is a Pan-Asia forum of 16 countries in East Asia, with ASEAN in a leadership position.
Trans-Pacific Strategic Economic Partnership (SEP or P4 Agreement)
he Trans-Pacific Strategic Economic Partnership (SEP), also known as the P4 agreement, is a multilateral free trade agreement between the countries of Brunei, Chile, New Zealand and Singapore which was signed on 3 June 2005 and came into force on 28 May 2006.