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A
GLOBAL/COUNTRY STUDY AND REPORT
ON
“SINGAPORE & ITS VARIOUS SECTORS”
Submitted to
Gujarat Technological University
Submitted by
SHRI M.H KADAKIA INSTITUTE OF MANAGEMENT AND
COMPUTER STUDIES
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF BUSINESS ADMINISTRATION
BATCH: 2011-2013
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INSTITUTE‟S DECLARATION
The Kadakia Institute of Management and Computer studies (KIMCOS) declare that the Global
Country Study Report (GSCR) on Singapore is our own students efforts and studies and the
results are based on our own work and our indebtedness to other work publications, references, if
any, have been duly acknowledged.
Date: 15/06/2013 Dr. Nimesh Joshi
Place: Ankleshwar I/c Director
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PREFACE
There is a rapid increase in the economic activity across the national boundaries due to
globalization. The world has become smaller due to the revolution in Information &
Communication Technology which has helped for better connectivity across the globe. This has
increased the opportunities of the business or investments across the borders. Studying
international business gives us an understanding of how business activities are influenced by the
political, economic, and cultural diversity of today's multinational business environment.
Global Country Report, brain child of Gujarat Technological University as a part of MBA
curriculum plays a vital role in acquiring the knowledge of global country / business and at the
same time opens the door of opportunities to enter in global market or ignite some business idea
in our own country. By studying GCR, our budding managers will be able to understand the
scope of doing business or managing investment successfully across national boundaries.
Students will be able to understand the ebbs and flows of investment both within and between
countries and continents.
As a part study, our institute has taken Singapore as a country to be studied where both students
and faculty members has collected information through secondary sources. Information includes
economic environment, demographic environment, political environment, industries/sectors and
the scope of doing business in Singaporeas well as in India.
This report has helped the student to understand global issues, understand the value of diverse
cultures; helped to study various sectors operating in Singapore. We have studied various sectors
of Singapore like IT, Pharmaceuticals, Logistic, Banking, Chemical, Tourism, Healthcare, and
Aviation in which we have learnt how business operates in these sectors, its scope, compared
these sectors with India, specially the state of Gujarat. By studying this report, students will be
able to find the ways to resolve and cope up the issues and challenges within these selected
sectors.
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ACKNOWLEDGMENT
Right from the genesis of the idea to work or the subject to its completion stage has incurred both
intellectual and moral depths. Therefore we would like to express my sincere gratitude those who
helped me in bringing out this project report.
We express our profound gratitude towards Gujarat Technological University (GTU) for
providing us an opportunity to take a study globally and identify the opportunities globally which
gives us global exposure and necessary knowledge and guidance in preparing this report.
We are deeply thankful to for their cooperation of all the students and faculty who has helped us
directly and indirectly for completion of global report study.
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EXECUTIVE SUMMARY
GTU in the form of Global Country Report has given a wonderful opportunity to MBA student
for getting exposure to learn about international business. We have studied SINGAPORE –
country as a part of Global Country Report. The study gave opportunities to both
students and faculty members to peep into the stranger world i.e. foreign country. We have
learnt various aspect of Singapore‟s Economic, political, demographic, cultural environment.
As a part of study, we have taken various sectors / industry, studied in depth about those
sectors like how it operates, major issues and challenges of these sectors, scope of
expansion of business in Singapore as well as in India.
We have compared Singapore‟s different business with that of India and also tried to find various
ways to solve these issues. We have tried to understand the scope of operating this business in
Gujarat boundaries too.
After studying major sectors like IT, Pharmaceuticals, Logistic, Banking, Chemical, Tourism,
Healthcare, and Aviation the major sector wise conclusions are as under:-
IT Sector: As Singapore is the third largest in IT sector in the world Singapore has latest
technology in IT which can contribute in its progress To start the new business in IT sector
Singapore is the best place to do it. Gujarat also contributes high in IT sector in India‟s growth.
Gujarat also has latest technologies which can be used by other countries for their development.
Good infrastructure & supportive political environment also helps to grow business. The culture
of Singapore is also good for starting new businesses like IT, Electronics etc. Small and medium
Enterprises are playing key role in Singapore IT sector. About 76 % of the businesses of
Singapore are using the IT facilities For youngsters getting job in IT sector Singapore is the best
place.
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Pharmaceutical industry: It is certainly one that is looked upon very favorably by the
government. To this end, a number of incentives have been provided to encourage the
multinational players to set up shop in Singapore. The steps taken have been working, but the
industry is still a young one and more will definitely be done. The Pharmaceutical industry in
Singapore is a growing one and one which has a considerable amount of government backing.
This global country study report of Singapore shows the positive factors to initiate the business
in Pharmaceutical sector. This positive factor includes infrastructure, availability of highly
skilled manpower, business supportive legal framework, trade alliance (FTA) one of the
important thing is that the Pharmaceutical sector helps in the growth of the GDP of the Singapore
to the large extent that is it has state of the art facility. And the government also supports the
activity to a largely.
Aviation Industry: The airline industry is undergoing profound changes. Shrinking profits,
rising fuel costs, government regulations and increasing competition will make survival difficult.
One can expect a total shakeout of some key players. The rise of the budget airlines has made
life very difficult for some players.
The present very profound regulatory constraints call for some changes to a traditional growth
strategy which some players may be able to pursue. This is because a traditional growth strategy
is difficult to achieve in the airline industry. Instead, airlines with a future outlook will be
expected to concentrate on key issues like formation of strategic alliances, network
maximization, creating more hubs or entry points and so on.
Chemical Sector: here by we have learned various aspects of International Trade, like Impact of
Economic Variables on International Business, Strategic Alliance for Chemical advancement,
and Legal Framework for Business etc.
This Global Country study report of Singapore shows the positive factors to initiate the Business
in chemical Sector. This Positive Factor Includes infrastructure, availability of highly Skilled
Manpower, Business supportive Legal Framework, Trade alliance (FTA) One of the important
thing is that the chemical sector helps in the growth of the GDP of the Singapore to the large
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extent that is it has state of the art facility. And the government also supports the activity to a
large extent.
Logistic Sector: Singapore is non-corrupt Country, So that is most important as logistic sector
and also various policies are there for starting trading and Tax Structure important for
incorporate business, Logistic Service is very fast growing sector in Singapore as well as in
India. Logistic Trade between India and Singapore, last decade India and Singapore Bilateral
trade, License agreement and Import Export is growing on. Association, Import Export,
Licensing procedure and Tax Structure, Cargo booking, Container booking and Transportation
services are major contribution in GDP of Singapore and important role for this Country.
Healthcare Sector: Singapore government encourages foreign firms to start their business here
and this is to maintain the direct investment flow. International Enterprise (IE Singapore) - Helps
foreign firms and investors. Economic Development Board – Lays down policies for business
and extends support for business and workforce development to strengthen their economy.
Standard, Productivity and Innovation Board – Helps with financing of SMEs, management and
by giving access to sale. The country‟s Centre for Transfusion Medicine, internationally
renowned for its high standards of blood safety practices and management of blood transfusion
services, is recognized as a WHO Collaborating Center.
Tourism sector: There politics environment and it has equal rules and regulations, which we
have to implement in our system, it also has advancement in technology which contributing in
development for various industries. Singapore has very reflective tax structure, guidelines and
policy. In addition, it has a good relationship with India. Our study shows the positive factors to
initiatives the Singapore tourism industries. These factors like infrastructure, availability of
highly skilled work force, business supportive legal framework.STB try to identify the
requirements of visitors and provide it. There are many opportunities accessible in Tourism
industries in India as well as Singapore so we can make future in it.
Banking Sector: The great learning from the country report and at what level the factors and
other factors affect for the growth of the economic and also what thing and how effective
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management and planning require learnt from it. Singapore is such innovative and high-tech
country which making such great contribution in development of the country.
According to one report Total system loans growth of 10.4% YTD is largely in line with our
expectations. We maintain our preference for UOB over DBS and OCBC. We have presented a
more detailed outlook of the Singapore Banking Sector outlook in our report dated 21 Jan 2013.
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Table of Content
Chapter
No
Particulars Page
No
PART 1 INTRODUCTION TO SINGAPORE
1. INTRODUCTION OF Singapore 12
1.1 About Singapore 12
1.2 History of Singapore 12
2. DEMOGRAPHIC PROFILE OF THE COUNTRY 13
3 ECONOMIC OVERVIEW OF Singapore 16
4 OVERVIEW OF INDUSTRIES TRADE & COMMERCE OF
Singapore
18
5 OVERVIEW OF BUSINESS & TRADE AT INTERNATIONAL
LEVEL
19
6 Singapor’S TRADE & INVESTMENT WITH INDIA 20
7 PESTLE ANALYSIS 22
7.1 Political Analysis 23
7.2 Economical Analysis 24
7.3 Social Analysis 28
7.4 Technological Analysis 30
7.5 Environmental Analysis 32
7.6 Legal Analysis 35
PART 2 INDUSTRY / COMPANY SPECIFIC TO SINGAPORE
1 IT INDUSTRY 38
2 PHARMACEUTICAL INDUSTRY 44
3 AVIATION INDUSTRY 67
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4 CHEMICAL INDUSTRY 74
5 BANKING INDUSTRY 100
6 TOURISM INDUSTRY 114
7 HEALTHCARE INDUSTRY 125
8 LOGISTICS INDUSTRY 136
9 CONCLUSION 149
BIBLIOGRAPHY
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PART-I
ECONOMIC OVERVIEW
OF SINGAPORE COUNTRY
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1. Introduction of Singapore
1.1 About Singapore
Singapore officially the Republic of Singapore, is a southeast Asiancity-state off the southern tip
of the Malay Peninsula, 137 kilometres (85 mi) north of the equator. An island country made up
of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from
Indonesia's Riau Islands by the Singapore Strait to its south. The country is highly urbanised
with very little primary rainforest remaining, although more land is being created for
development through land reclamation.
There are ongoing land reclamation projects, which have increased Singapore's land area from
581.5 km2 (224.5 sq mi) in the 1960s to 704 km
2 (272 sq mi) today; it may grow by another
100 km2 (40 sq mi) by 2030.
[2] Some projects involve merging smaller islands through land
reclamation to form larger, more functional islands, as with Jurong Island.[3]
5% of Singapore's
land is set aside as nature reserves. Urbanisation has eliminated most primary rainforest, Bukit
Timah Nature Reserve being the only significant remaining forest.
Source: http://en.wikipedia.org/wiki/Singapore
1.2 History of Singapore
The island rose in importance during the 14th century under the rule of Srivijayan prince
Parameswara and became a port until it was destroyed by Acehnese raiders in 1613. The modern
history of Singapore began in 1819 when Englishman Sir Stamford Raffles established a British
port on the island. Under British colonial rule, it grew in importance as a centre for both the
India-China trade and the entrepôt trade in Southeast Asia, rapidly becoming a major port city.
During World War II, Singapore was conquered and occupied by the Japanese Empire from
1942 to 1945. When the war ended, Singapore reverted to British control, with increasing levels
of self-government being granted, culminating in Singapore's merger with the Federation of
Malaya to form Malaysia in 1963. However, social unrest and disputes between Singapore's
ruling People's Action Party and Malaysia's Alliance Party resulted in Singapore's separation
from Malaysia. Singapore became an independent republic on 9 August 1965.[6]
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Source: ^"World Economic Outlook Database, September 2006". International Monetary Fund.
Archived from the original on 7 May 2009.
2. Demographic Profile of Singapore
Demography is the statistical study of human populations and sub-populations. It encompasses
the study of the size, structure, and distribution of these populations, and spatial and/or temporal
changes in them in response to birth, migration, aging and death.
Singapore population has reached 5,353,494 (July 2012 est.)
Singapore stands 114th
place in world as far as population is concerned.
Population growth is 1.993%
Birth rate is 7.72 births/1000 population
Death rate is 3.41/1000 population
Age Structure
0-14 years: 13.8%(male 3,38,419 and female 3,14,704)
15-64 years: 77%( male 17,74,444 and female 18,74,985)
65 years and over:9.2%(male 1,96,101 and female 2,42,084)
Median Age
Total: 40.1 Years
Male: 39.6 Years
Female:40.6 Years
Urbanization
Urban Population: 100% of total population
Rate of urbanization: 0.9% annual rate of change
Sex Ratio
At Birth: 1.07 male/female
Under 15 Years:1.05 male/Female
15-64 Years:0.96 Male/Female
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65 Years and over:0.82 male/female
Total population: 0.96 male/female
Infant Mortality Rate
Total:2.65 deaths/1000 live births
Male:2.76 deaths/1000 live births
Female: 2.53 deaths/1000 live births
Life Expectancy at Births
Total population:83.75 Years
Male:81.47 Years
Female:86.2 Years
Total Fertility rate
0.78 children born/women
Ethnic Groups
Chinese 76.8%
Malay 13.9%
Indian7.9%
Others 1.4%
Religions:
Buddhist 42.5%
Muslim 14.9%
Taoist 8.5%
Hindu 4%
Catholic 4.8%
Other Christian 9.8%
Other 0.7%
None 14.8%
Languages
Mandarin (official) 35%,
English (official) 23%,
Malay (official) 14.1%,
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Hokkien 11.4%,
Cantonese 5.7%,
Teochew 4.9%,
Tamil (official) 3.2%,
other Chinese dialects 1.8%,
other 0.9%
Literacy
Definition: age 15 and over can read and write
Total population: 92.5%
Male: 96.6%
Female: 88.6%
Source: http://www.singstat.gov.sg/stats/keyind.html
3. ECONOMIC OVERVIEW OF SINGAPORE
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Following information shows the economic condition of the Singapore & its international
position in securities on the basis of this we can derive some use full information about the
economy.
STATISTICS
$314.2 billion
GDP Growth:4.9%
GDP per capita PPP: $59,900
Singapore GDP
Singapore GDP Per capita
Source:http://www.tradingeconomics.com/singapore/gdp
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Singapore Gross National Product
(Source: http://www.tradingeconomics.com/singapore/gross-national-product)
GDP –Composition by setor
Agriculture:0%
Industry:26.6%
Services:73.4%
Labor Force
3.237 million( Excludes non-residents)
Unemployment Rate(Youth ages 15-24)
Total: 12.9%
Male:9.9%
Female:16.6%
Inflation Rate(consumer prices)
4.70%
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Sourcce:http://www.tradingeconomics.com/singapore/inflation-cpi
Investment(Gross Fixed)
23.4% of GDP
Budget
Revenues :$40.53 billion
Expenditures:$37.18 billion
Surplus: $3.35 billion
Taxes and other revenues
14.8% of GDP
Public Debt: 118.2%
Country 2004 2005 2006 2007 2008 2009 2010 2011
Singapore 102.5 102.9 100.6 96.3 99.2 110 102.4 118.2
Source: CIA World Factbook
Public debt is increase in 2011 in compare of 2010
Source:http://www.singstat.gov.sg/stats/keyind.html
OVERVIEW OF INDUSTRIES TRADE & COMMERCE OF
SINGAPORE
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Major industries of Singapore
Tourism
Biomedical Sciece
Logistics
Banking and Finance
Chemicals
Constuction
Emerging Indusries
Health Care
Education
Info Communication and Media
4. OVERVIEW OF BUSINESS & TRADE AT
INTERNATIONAL LEVEL
Top traded commodities (exports)
Rank Commodity Value in US$('000) Date of
information
1 Mineral fuels, oils, distillation products, etc. $2,183,079,941 2012
2 Electrical, electronic equipment $1,833,534,414 2012
3 Machinery, nuclear reactors, boilers, etc. $1,763,371,813 2012
4 Vehicles other than railway, tramway $1,076,830,856 2012
5 Plastics and articles thereof $470,226,676 2012
6 Optical, photo, technical, medical, etc. apparatus $465,101,524 2012
7 Pharmaceutical products $443,596,577 2012
8 Iron and steel $379,113,147 2012
9 Organic chemicals $377,462,088 2012
10 Pearls, precious stones, metals, coins, etc. $348,155,369 2012
5. SINGAPORE’S TRADE & INVESTMENT WITH INDIA
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Bilateral Trade
Values in US$ Million
S.No. \Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
1. EXPORT 6,053.84 7,379.20 8,444.93 7,592.17 10,302.71
2. %Grow21.89 14.44 -10.1 35.7
3. IMPORT 5,484.32 8,122.63 7,654.86 6, 454.577,139.31
4. %Growth 48.11 -5.76 -15.6810.61
5. TOTAL TRADE 11,538.15 15,501.83 16,099.79 14,046.74 17,442.02
6. %Growth 34.35 3.86-12.75 24.17
7. India's Total
Trade312,149.29 414,786.19 488,991.67 467,124.31 620,905.02
Source: Ministry of Commerce, Government of India, October, 2011
Principle commodities of Indian Export to Singapore (2010-2011)
MINRAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION
• SHIPS, BOATS AND FLOATING STRUCTURES.
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• MISCELLANEOUS GOODS.
• NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMIPRECIOUS
STONES, PRE.METALS, CLAD WITH PRE.METAL AND ARTCLS THEREOF;
IMIT.JEWLRY;COIN.
• NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANICAL
APPLIANCESORGANIC
CHEMICALS
• ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THEREOF; SOUND
RECORDERS
AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND
REPRODUCERS
• OPTICAL, PHOTOGRAPHIC CINEMATOGRAPHIC MEASURING, CHECKING
PRECISION,MEDICAL OR SURGICAL INST. AND APPARATUS PARTS AND
ACCESSORIES THEREOF;
• AIRCRAFT, SPACECRAFT, AND PARTS THEREOF.COPPER
Source: Ministry of Commerce, Government of India, October, 2011
6. PESTLE Analysis
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PEST Analysis is a simple but important and widely-used tool that helps you understand the big
picture of the Political, Economic, Socio-Cultural and Technological environment you are
operating in. PEST is used by business leaders worldwide to build their vision of the future
7.1 Political Analysis
THE GOVERNMENT
The government of singapor is parliamentary republic .
The Singapore Parliament has a single house, which is elected by general election every
five years. The Parliament and the President of Singapore are known as the Legislature.
Parliament first sat on 8 December 1965, with the first general election on 13 April 1968.
The Twelfth Parliament has 99 Members of Parliament (MP), consisting of 87 elected MPs,
three non-constituency MPs and nine nominated MPs who represent various professional
and business sectors
The first presidential election was held on 28 August 1993. The first elected President was
HE Mr OngTeng Cheong. The current and third elected President, HE Dr Tony Tan Keng
Yam, was sworn in on 1 September 2011 to serve a six year term following a presidential
election on 27 August.
The Cabinet is responsible for all government policies and the day-to-day administration of
the affairs of state. It comprises the Prime Minister, two Deputy Prime Ministers (the
current Deputy Prime Ministers are concurrently the Co-ordinating Minister for National
Security and Minister for Home Affairs, and the Minister for Finance respectively), three
Ministers in the Prime Minister's Office and the Ministers for: Culture, Community and
Youth; Education; the Environment and Water Resources; Defense; Foreign Affairs and
Law; Health; Communications and Information; National Development; Trade and
Industry; Social and Family Development; Manpower; and Transport.
MAJOR POLITICAL PARTIES IN SINGAPORE
National Solidarity Party
Reform Party People's Action Party
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The political power is extremely centralized in the government and it is a bureaucratic
country. Although the elections are being held often, the offices are mostly assigned instead
of elected. The government put efforts in communicating the decisions and policies to the
public instead of gathering their opinion
The People Action Party dominated the Singaporean politics since the independence from
leaving the Federal of Malaysia in 1965.
Singapore is classed as a Hybrid• country by the Economist intelligent unit because
Singaporean politics is a mixture of bureaucracy and democracy
The Prime Minister received a rise in salaries of 60% which equals to $400,000 US Dollars
higher than the United States President. The response from government defined this is the
tool of preventing the corruption and governing efficiency to ensure Singaporean image as
a world-class government.
The economy is growing rapidly and increase of opportunities of: trade, citizen education
level is increased and the society is more complex and the policies so governing of PAP
(People Action Party) is being questioned. The prediction of Singapore Politic will be the
openness of politics should increase to the public. Because of the illiberal democratic
affects the country image and the goodwill of the people and because of the mature
economic and slow down of growth which is an impact on the trust worth of the
government.
Sources:-
Singapore Democratic
Alliance
Singapore Democratic Party Singapore Democratic Party
Workers' Party Singapore Justice Party Singapore National Malay
Singapore People's Party Angkatan Islam | Pan
Malayan Islamic Party
Democratic Progressive Party
BarisanSosialis Malayan Chinese Association Singapore Chinese Party
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http://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/country-
profile/asia-oceania/singapore/
www.sg/who/2/Profile.aspx
7.2 ECONOMIC ANALYSIS
Singapore is an important hub for the South-East Asian region. It has traditionally had a
dynamic economy, with strong service and manufacturing sectors, and one of the highest
per capita gross domestic products (GDP) in the world
Its airport, port and road systems are among the best in the world. Singapore's economy has
always depended on international trade. Its major industries include electronics, financial
services, oil drilling equipment, petroleum refining, pharmaceutical manufacturing,
processed food and beverages, rubber products and ship repair
The bilateral relationship with Singapore is one of Australia's closest and most
comprehensive in Southeast Asia. This is based on long-standing Commonwealth, defence,
education, political, trade and tourism links, as well as on the two countries' similar
strategic outlook. Singapore and Australia cooperate on many issues integral to trade and
security.
The Australian and Singaporean Governments have worked closely together to enhance the
strong relationship between the two countries. The respective Prime Ministers made a Joint
Declaration, 'A New Partnership', in January 1996 encompassing cooperation in cultural,
economic, political and security matters. It also established a biennial Singapore-Australia
Joint Ministerial Committee (SAJMC)
Singapor has ranked as the third wealthiest nation in the world.
Ranked the 8th most expensive country.
It is ranked as the world's second most open economy.
GDP - per capita (PPP) Rank:- 6th.
Currency: Singapore Dollar
Fiscal Year: 1st April – 31
st March
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Trade Organizations: SAFTA.AANZFTA.APEC.WTO and other
STATISTICS
GDP :- $314.2 billion (2011)
GDP Growth: 4.9% (2011)
GDP per Capita PPP: $59,900 (2011)
GDP - composition by sector (2010)
The ASEAN-Australian-New Zealand Free Trade Agreement (AANZFTA) came into force on 1
January 2010 reducing or eliminating tariffs across a region that is home to 600 million people.
Sector, Agriculture, 0.00%,
0% Sector, Industry,
26.60%, 27%
Sector, Service, 73.40%, 73%
Sector Agriculture Industry Service
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Austrade has identified potential opportunities for Australian suppliers of goods and services in a
number of sectors. Austrade's Singapore country page supplies general information on doing
business and on specific export opportunities. The Austrade website has a database that can be
searched by industry
Inflation (CPI) 5.2% (2011)
Population below Poverty
Line
0.0% (2010)
Labor Force 3.237 million
Labor Force by Occupation Agriculture: 0.1% ,Industry: 19.6% ,Services: 80.3%
Unemployment 2% (2011)
Main Industries Electronics, Chemicals, Financial Services, Oil Drilling
Equipment, Petroleum Refining, Rubber Processing And
Rubber Products, Processed Food And Beverages, Ship
Repair, Offshore Platform Construction, Life Sciences,
Entrepot Trade
Ease of Doing Business Rank 1st
External
Exports $409.2 billion (2011 )
Export Commodity machinery and equipment (including electronics and
telecommunications), pharmaceuticals and other chemicals,
refined petroleum products
Main Export Partners Malaysia 12.2%, Hong Kong 11%, China 10.4%, Indonesia
10.4%, US 5.4%, Japan 4.5% (2009 )
Imports $310.4 billion (2010)
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Import Commodity machinery and equipment, mineral fuels, chemicals, foodstuffs,
consumer goods
Main Import Partners Malaysia 10.7%, US 10.7%, China 10.4%, Japan 7.2%, South
Korea 5.9%, Taiwan 5.9% (2009 est.)
FDI Stock (HOME) $456.1 billion (31 December 2010 )
FDI Stock (ABROAD) $288.4 billion (31 December 2010 )
External Debt $23.59 billion (31 December 2011)
Public Finance
Public debt 118.2% of GDP (2011 )
Budget deficit 0.3% of GDP (2011)
Income $218.6 billion CAD (Federal, 2009-10)
Expenses $274.2 billion CAD (Federal, 2009-10)
Credit Ratings by
„Standards & Poor's‟
AAA
Foreign reserves $237.7 billion (31 December 2011 )
Singapore‟s economy is on a healthy growth path. The country was recently ranked as the third
wealthiest nation in the world and the government anticipates sustained investment inflows into
the country in 2012 with fixed asset investments expected to reach S$13-S$15 billion
Sources:-
www.eduforum.co.in/content/singaporecountry.html
http://www.indexmundi.com/singapore/economy_profile.html
https://www.cia.gov/library/publications/the-world.../geos/sn.html
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7.3 Social Analysis of Singapore
The country comprises the main island - linked by a causeway and a bridge to the southern
tip of Malaysia - and around 50 smaller islands.
Most of the Singaporean dislikes blue collar works like construction and other works in
hard environment..
Population of Singapore is 5,353,494 (July 2011 it is ranked the second most densely
populated country in the world)
The age structure is a bell shape which concentrated in the age 15-64 years of 76.3% and
followed by 0-14 years of 15.2% and the least is over 65 years of 8.5%. It explains a
healthy growth of work force and increase of population.
Citizens of Singapore enjoy freedom of the choice of religion and multi-language skills are
considered to be a pride of Singaporean
There are different ethnic groups so Citizens of Singapore speak: Mandarin, Cantonese,
Malay and over 90% of population speak English. The literacy rate is 92.5% of the
population in Singapore
The average retire age is 55 years old which is lower than the international average of years
65
Singapore also has a strong social system which offers social benefits to its citizens, who
also are obliged to contribute minimum of 10% of salaries and wages into Central Provident
Fund for public pension and retirement fund
Singapore is a hi-tech, wealthy city-state in south-east Asia, also known for the
conservatism of its leaders and its strict social controls
Once a colonial outpost of Britain, Singapore has become one of the world's most
prosperous places - with glittering skyscrapers and a thriving port.
Most of its people live in public-housing tower blocks. They enjoy one of the world's
highest standards of living, but also a system of punishments for acts deemed to be anti-
social
Handshaking is the usual form of greeting, regardless of race.
Social courtesies are often fairly formal.
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When invited to a private home or entering a temple or mosque, remove your shoes.
For private visits, a gift is appreciated and, if on business, a company souvenir is
appropriate.
Dress is informal.
Most first-class restaurants and some hotel dining rooms expect men to wear a jacket and
tie in the evenings; a smart appearance is expected for business meetings.
Evening dress for local men and women is unusual.
Each of the diverse racial groups in Singapore has retained its own cultural and religious
identity while developing as an integral part of the Singapore community.
Over 50 per cent of the population is under 20 years of age. Laws relating to jaywalking,
littering and chewing gum are strictly enforced in urban areas.
There are wide income and wealth differences, but the country is more differentiated by
ethnicity than by class. All the ethnic groups have experienced upward occupational
mobility. There is an intense focus on education. Good marks are a sure path to good
positions with good wages. In this respect, Singapore is a meritocracy.
Singaporeans jokingly refer to their desire for the "five C's": car, condominium, credit card,
club membership, and career. These are important symbols of wealth and status regardless
of ethnicity.
There is no national costume, but the orchid is used as a national symbol, and textiles with
orchid patterns may be employed as a national symbol on formal occasions.
Polygamy is allowed among Muslim Malays, but otherwise monogamy is the rule.
Interethnic marriages are not common. Divorce is becoming more common. The
average age at first marriage has increased, and it is customary for young people to live
with their parents until they marry.
Children are brought along in most situations except business and very formal events. Small
children are showered with affection. Generally, children are expected to be quiet and
obedient and may be physically punished for misbehaving. There is very little free space
where children can play and few areas designed especially for children.
Kin groups play a significant role in all ethnic groups, and people often move within wide
networks of relatives. Privately, kin groups are important, but politically and economically,
they play a marginal role.
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Older people ideally are treated with respect, but wealth and status may supersede age
distinctions. A social superior or an authority is treated with much formality. There are
great differences between formal and informal events, situations, and places. In social
interaction, a certain physical distance is kept, especially between men and women. Food
rules of the ethnic groups are always respected.
A funeral is a major ritual for all ethnic group. The idea of an afterlife is generally shared.
Source: -
http://www.everyculture.com/Sa-Th/Singapore.html#ixzz2I1NNYuaH
http://www.singaporeguide.com
7.4 TECHNOLOGICAL ANALYSIS OF SINGAPORE
The main exports of Singapore are electronic and technological products so indicates that
Singapore is enjoying a world-class reputation for inventing, adopting and developing new
technologies
Singapore applied online procedures since early 1980
The regulation of digital signature ensures the trustworthy of Singapore being the IT hub in
Asia.
Singapore is ranked 31st of Internet host and the exports are heavily in information
technological products and consumer electronic goods
90% of government services available online
Singapore has also captured over 20% of the Asia-Pacific MRO market and has established a
leading position as a convenient one-stop location for all aircraft maintenance needs.
Singapore has become one of the most important shipping centers in Asia and is one of the
world‟s top three oil trading and refining hubs. A total crude oil refining capacity of more
than 1.35 million barrels per day (bbl/d) now is expected to increase to 1.8bbl/d when a new
refinery comes on stream in 3-5 years time
This sector will see continual growth as the Singapore government has pledged S$12.88
billion to support R&D in Singapore from 2011 to 2015 under the Research, Innovation and
Enterprise 2015 plan, with the primary aim of achieving total gross expenditure on R&D of
3.5% of GDP by 2015.
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Nationwide Broadband Network (NGNBN) that will provide access speed of 1 gigabits per
second (Gbps) or more. As of end-2010, 60% of homes and offices have access to the new,
ultra high-speed, all-fiber Next Generation Nationwide Broadband Network (NGBN).
By mid-2012, 95% of the country will have access to the NGNBNSingapore is well connected
by multiple satellite and submarine cable systems with more than 67 terabits per second of
potential capacity supporting international and regional telecoms connectivity.
It has more than 830 Gbps of international internet bandwidth connectivity to economies such
as the US, China, Japan, India, as well as some countries in Europe and ASEAN.
Singapore was ranked second in the World Economic Forum‟s Global IT Report, and eighth
in the Economist Intelligence Unit (EIU) e-Readiness Ranking. It was ranked ninth in the EIU
Benchmarking IT industry Competitiveness in 2009. Many top IT companies have made
Singapore a key node in their global network, a strong testament of the country‟s strategic
position to be a global info-communications hub.
Latest available data showed that in 2009, 95% of Singaporean households with school-going
children had access to a home computer while 83% of resident Singaporean households had
access to a computer at home. Eighty-one percent of households had home Internet access and
most of those households are connected to the Internet via broadband. Computer usage
amongst all enterprises increased slightly to reach 78% in 2009.
Singapore is home to more than 400 franchise concepts. Foreign franchises are well received
and the United States is by far the largest supplier of foreign franchises in the country. There
are American franchises in practically every industry. McDonald's, Burger King, KFC,
Subway, Starbucks, Ben and Jerrys, Gymboree, New Horizons, Mister Minit, Avis, Toys R
Us, On-line Trading Academy, Comfort Keepers, Contours Express, and many others have
operations in Singapore.
Sales turnover of franchises in Singapore amounted to US$5.7 billion in 2008 (latest available
data), according to the Franchising and Licensing Association of Singapore. Foreign
franchises are estimated to account for 70% of franchise sales in the country.
The Singapore government has pledged S$12.88 billion to support R&D in Singapore from
2011 to 2015 under the Research, Innovation and Enterprise 2015 plan, with the primary aim
of achieving total gross expenditure on R&D of 3.5% of GDP by 2015.
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These parks occupy a total land area of 1,465 ha and nearly 700 ha have been allocated to over 200 farms for the
production of livestock, eggs, milk, aquarium and food fish, vegetables, fruits, orchids, ornamental and aquatic
plants, as well as for the breeding of birds and dogs.
The modern farms in the Agrotechnology Parks develop, adapt and showcase advanced technologies and
techniques for intensive farming systems, and for export of high value and quality products and services to other
tropical countries in the region
Proving its position as one of the most „wired‟ societies in the world, Singapore emerged
second in The Nielsen Company‟s latest survey of 52 countries to shed light on global
citizens‟ entertainment technology ownership and consumption habits
In Singapore, for instance, many own one or more mobile phones. Mobile line subscription
has been on a consistent upward trend for the last ten years, with the latest statistics reaching
129.7 percent penetration level - which explains how Singapore emerged in our survey as the
country with the highest rate of mobile phone ownership in the world!”
Source:-http://www.ida.gov.sg/Publications/20061205092557.aspx
http://export.gov/singapore/doingbusinessinsingapore/leadingindustrysectors/index.asp
7.5 ENVIRONMENTAL ANALYSIS OF SINGAPORE
Singaporean Government wanted to deliver and sustain a clean and healthy environment
and water resources for all Singaporeans (Ministry of environment and water resources).
A desalination plant worth 119 million U.S dollars has been running since September
20005. The plant is capable to produce 114 million liters of potable water per day with the
price of 46 US dollars a liter which wiped off the threats of price increase of Malaysia.
Singapore has a most efficient solid waste management, as an island-state, Singapore is
lack of land so the percentage of landfill the waste is eliminated to only 4% of the non-
incinerable waste and another 45% is cinerated.
plant which uses the wastage to supply the 2%-3% electricity needs of the country in 2006.
This plant resolved the problem with the land and energy which also implements the image
of Singapore with green city and high-tech hub of Asia.
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Under the Singapore Green Plan 2012 (SGP 2012), the country‟s environmental policy,
Singapore has put in place a holistic blueprint to grow the Cleantech industry. The SGP
2012 also incorporates plans for reduction of waste volumes through waste minimization
and recycling; reduction of the amount of land for sewage treatment; strict emission
standards; and tougher vehicular emission controls
The Singapore Environmental Achievement Awards (SEAA) was launched by Mr Yeo
Cheow Tong, the former Minister for the Environment, in 1997. The award recognises
Singapore-based organisations who have shown commitment to environmental and social
responsibilities.
As the only local award that addresses overall environmental initiatives and awareness
within an organisation, the SEAA is the premier award for the environment in Singapore.
The criterion for the SEAA focuses on assessing the leadership displayed by the company,
the real environmental improvement made as well as the ability of an organization to
establish procedures, train staff and innovate in order to achieve breakthroughs in
environmental performances.
Companies that are recognized by the Awards join an elite rank of businesses around the
world that have affirmed their commitment to environmental excellence and protection of
the natural environment.
The land utilization program is supervised by the Ministry of National Development
(MND). The firstmaster plan was formulated in the 1950s. The program, reviewed at
regular intervals thereafter, precisely zones the national land into nature reserve, green
zone, residential area, industrial area, and others according to the purpose of utilization. The
above-mentioned very effective environmental control, Singapore, with
economicdevelopment as an important national policy, is also taking flexible environmental
measures that relax
Environmental control within certain frameworks, in order to prevent environmental control
from stagnating industrial activity.
At the same time, as described in the Singapore Green Plan 2012, the development and
introduction of latest environmental technologies, including the green technology, is listed
as one of the priority goals.
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Since the latter half of the 1990s, the Singaporean government has been requesting private
enterprises toestablish environmental management systems such as those certified by ISO
14001
In Singapore, the Pollution Prevention Agency was formed in 1969, and the Ministry of the
Environment
(ENV) was established in 1972 for the purpose of providing a clean living environment and
high-quality public health.the Pollution Control Department (PCD), under the
Environmental
Protection Division, is influential in implementing industrial environmental measures. With
about 130personnel, PCD is basically the successor to the internal organization with the
same name formed in ENV in 1986.
Environmental control over industrial pollution is basically executed by applying the
Environmental Pollution
Control Act (EPCA), the Environmental Public Health Act (EPHA),the Sewerage and
Drainage Act and theSewerage and Drainage (Trade Effluent) Regulations under the Act
are the most important legislation for
industrial pollution control
Sources: -
http://www.seaa.sg/
http://www.focussingapore.com/information-singapore/singapore-
environment.html
7.6 Legal Analysis of Singapore
Singapore become independent in 1965, it has been part of Federation of Malaysia and
British colony
Singapore kept the British legal System, imported the common law and Westminster model
of parliament government,
Executive, Legislation and Judiciary. A highlight of Singaporean Legal System is the strong
anti- corruption law
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In Singapore, the penalty for any person convicted in a corruption can be either receives a
fine up to $100,000 or up to five year of imprisonment or both
The penalty of imprisonment will increase to 7 years. Because of the law is well operating
The Singapore legal system is a rich tapestry of laws, institutions, values, history and
culture. Like the Singapore-made quilt, each strand of the legal system is woven together to
form a jurisprudential kaleidoscope bounded by a unique national identity.
Sir Thomas Stamford Raffles of the British East India Company in 1819 to its
independence in 1965, Singapore‟s legal development had been intricately linked with its
British colonial master. Often, English legal traditions, practices, case law and legislation
were adopted without much consideration as to whether they suited the local circumstances.
Singapore has inherited the English common law tradition and thus enjoys the attendant
benefits of stability, certainty and internationalisation inherent in the British system
(particularly in the commercial sphere).
In essence, the common law system of Singapore is characterised by the doctrine of judicial
precedent (or stare decisis). According to this doctrine, the body of law is created
incrementally by judges via the application of legal principles to the facts of particular
cases. In this regard, the judges are only required to apply the ratio decidendi (or the
operative reason for the decision) of the higher court within the same hierarchy. Thus, in
Singapore, the ratio decidendi found in the decisions of the Singapore Court of Appeal are
strictly binding on the Singapore High Court, the District Court and the Magistrate‟s Court.
The court decisions from England and other Commonwealth jurisdictions are, on the other
hand, not strictly binding on Singapore
The common law system in Singapore bears material differences from some Asian
countries which have imbibed the civil law tradition (the People‟s Republic of China,
Vietnam and Thailand) or those with a mixture of civil and common law traditions (the
Philippines).Historically, in England, Equity (or the body of principles of fairness or
justice) has been employed by the courts to ameliorate the defects or weaknesses inherent in
a rigid common law system. In England, in the past, Chancery courts administered Equity
in a manner separate from the common law courts. However, such a historical demarcation
is not important in Singapore today.
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The Singapore Law Reports constitute the major publication of Singapore court decisions
since 1992.The Constitution (1999 Rev Ed) is the supreme law of the land. It is mandated
that any legislation contrary to the Constitution shall be void.
In 1991, the Singapore International Arbitration Centre (SIAC) was established. This was
followed by the establishment of the Singapore Mediation Centre (SMC) in 1997. In 1994,
mediation of civil disputes was first introduced in the Subordinate Courts through the Court
Mediation Centre. Since then, mediation is routinely conducted in the Small Claims
Tribunals, the Family Court, the Juvenile Courts, and the Ministry of Community, Youth
and Sports‟ Maintenance of Parents Tribunal
Sources: -http://www.singaporelaw.sg/content/LegalSyst.html
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PART – II
INDUSTRY / COMPANY SPECIFIC
TO
SINGAPORE
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1.IT INDUSTRY
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1.1 INTRODUCTION TOINFORMATIONTECHNOLOGY
INDUSTRY:
1.1.1 INTRODUCTION:
Singapore‟s definition of the IT sector is primarily based on the needs to develop
the national economy and the focus of developing the high technology ICT
industry. However, our current definition is generally compatible with North
American Industry Classification System1 (NAICS) and the OECD2. This makes
it easier to undertake international comparison and benchmarking.
However, there are some differences and these are due to the special
characteristics of Singapore‟s economic structure and the historical development
of the domestic IT sector. For example, unlike the OECD, we exclude most
manufacturing activities. Manufacturing, especially the high technology
manufacturing of electronics and PC components, constitutes an extremely large
proportion (24.3% of 2003 GDP) of economic activities in Singapore. The
Economic Development Board (EDB) of Singapore is the prime agency charged
with developing this sector. IDA‟s focus, however, is primarily on the services
portion of the ICT sector and complementing EDB‟s effort. Another example
would be the inclusion of new developments in ICT like online digital media and
gaming, presently a high area of potential and growth. IDA has also included
certain businesses with high ICT content or sales activities. This is a reflection
of the historical development of Singapore as a regional centre and logistics hub
and, more recently, an IT hub.
1.1.2 IT SERVICE ACTIVITIES
Motion Picture and Video Activities Other community, social and personal service
activities including repair of vehicle.
Radio and Television Activities
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Sound Recording Activities
Proposed new activity
Broadcasting Transport
storage and communications
The Green IT Chapter (GRIT) aims to raise awareness of environmentally-conscious best
practices within the industry. It seeks the support of member organizations and stakeholders in
spearheading green IT efforts. Its own green initiatives and programmers serve as a platform for
member organizations to nurture innovative business opportunities in this field.
1.2 TREETY BETWEEN INDIA AND SINGAPORE:
ARTICLE 10.1: GENERAL
The Parties recognize the economic growth and opportunity provided by electronic
commerce and the importance of avoiding barriers to its use and development and the
applicability of WTO rules to electronic commerce.
ARTICLE 10.2: DEFINITIONS
For purposes of this Chapter: carrier medium means any physical object, as listed under the
WTO Information Technology Agreement (ITA-1) Attachment A, capable of storing a digital
product by any method and from which a digital product can be perceived, reproduced or
communicated, directly or indirectly; digital products means computer programs, text, video,
images, sound recordings and other products that are digitally encoded, regardless of whether
they are fixed on a carrier medium or transmitted electronically10-2; electronic means
employing computer processing; electronic transmission or transmitted electronically means
the transfer of digital products using any electromagnetic or photonic means; and person
means either a natural person or a juridical person as defined.
ARTICLE 10.3: ELECTRONIC SUPPLY OF SERVICES
The Parties affirm that the supply of a service using electronic means falls within the scope
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of the obligations contained in the relevant provisions of subject to any reservations or
exceptions applicable to such obligations.
ARTICLE 10.4: DIGITAL PRODUCTS
1. A Party shall not apply customs duties or other duties, fees or charges on or in connection
with the importation or exportation of digital products by electronic transmission.
2. Each Party shall determine the customs value of imported carrier media bearing digital
products according to the cost or value of the carrier medium alone, without regard to the
cost or value of the digital products stored on the carrier medium.
3. (A) Each Party shall accord to the digital products of the other Party treatment no less
favorable than it accords to its own like digital products in respect of all measures10-6
affecting the contracting for, commissioning, creation, publication, production, storage,
distribution, marketing, sale, purchase, delivery or use of such digital products.
(b) A Party shall accord treatment no less favorable to digital products whose author,
performer, producer, developer or distributor is a person of the other Party than it accords to
like digital products whose author, performer, producer, developer or distributor is a person
of the first Party.
A Party shall not accord treatment less favorable to some digital products on the basis of
factors not found in paragraph 3, which have the effect of affording protection to its own
digital products and/or which act as a disguised restriction to trade in digital products of the
other Party.
ARTICLE 10.5: EXCEPTIONS
This Chapter is subject to the General and Security exceptions contained in any other
relevant exceptions or reservations set forth in other Chapters of this Agreement.
1 The provisions of this Chapter shall not apply to Government Procurement.
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2 This Chapter does not apply to measures affecting broadcasting, as defined by each Party
under its domestic law, which may include webcasting, cable casting and video-on-demand.
ARTICLE 10.6: TRANSPARENCY
Each Party shall publish or otherwise make available to the public its laws, regulations and
measures of general application which pertain to electronic commerce.[2]
1.3 GOVERNMENT INITIATIVE TAKEN IN TERMS OF IT SECTOR
After the economic reforms of 1991-92, major fiscal incentives provided by the Government
of India and the State Governments, like, liberalization of external trade, elimination of
duties on imports of information technology products, relaxation of controls on both inward
and outward investments and foreign exchange, setting up of Export Oriented Units (EOU),
Software Technology Parks (STP), and Special Economic Zones (SEZ), has enabled India to
flourish and acquire a dominant position in world‟s IT scenario.
In order to alleviate and to promote Indian IT industry, the Government of India had set up a
National Task Force on IT and Software Development to examine the feasibility of
strengthening the industry. Venture capital has been the main source of finance for software
industry around the world. In line with the international practices, norms for the operations of
venture capital funds have also been liberalized to boost the industry. [3]
1.4 FINDINGS OF IT INDUSTRY
1. Singapore is the third largest in IT sector in the world
2. Singapore has latest technology in IT which can contribute in its progress
3. To start the new business in IT sector Singapore is the best place to do it.
4. Gujarat also contributes high in IT sector in India‟s growth.
5. Gujarat also has latest technologies which can be used by other countries for their
development.
6. Good infrastructure & supportive political environment also helps to grow business.
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7. The culture of Singapore is also good for starting new businesses like IT, Electronics
etc.
8. Small and medium Enterprises are playing key role in Singapore IT sector.
9. About 76 % of the businesses of Singapore are using the IT facilities
10. For youngsters getting job in IT sector Singapore is the best place.
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2.PHARMACEUTICAL
INDUSTRY
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2.1 INTRODUCTION
The Pharmaceutical industry in Singapore is rapidly growing industry with a considerable
amount of government support. It is the strongest component of the biomedical sciences sector in
this country, the others being the medical device, and biotechnology industries and the healthcare
services. These four industries are clustered together as they have synergies and address common
issues of human healthcare. With the rapid establishment of new discoveries and robust growth,
the biomedical sciences sector is targeted to be the fourth pillar of manufacturing in Singapore.
The nation aims to develop the biomedical sciences to achieve the same level of success as for
the other three industry pillars - electronics, chemicals and engineering. Furthermore, it is hoped
that, by 2010, Singapore has host 15 world-class biomedical science companies and become the
region's hub (including drug discovery and development, clinical research, and health care
delivery).{4]
According to the Singapore economic development board (EDB) report, in the year2001, the
Pharmaceutical industry‟s output of $5 billion accounted for 76% of total biomedical sciences
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manufacturing output, and the industry enjoyed a growth in employment of 7.6%. The
governmental agencies such as the EDB biomedical sciences group and biomedical research
council (BMRC)/a*star are working in close partnership with other agencies to adopt an
integrated approach with synergistic initiatives in R&D, education and industry development. [4]
2.2 ROLE OF PHARMACEUTICAL IN THE ECONOMY OF SINGAPORE
Singapore has a highly developed and successful market economy. It has an open, pro-business
environment, relatively corruption-free and transparent, stable prices, low tax rates (14.2% of
GDP) compared to other developed economies, and one of the highest per-capita gross domestic
products (GDP) in the world. Its innovative yet steadfast form of economics that combines
economic planning of Singapore economic development board with free-market has given it the
nickname the Singapore model. Singapore's sovereign wealth fund temasek holdings is a large
investor in the economy, holding majority stakes in several of the nation's largest companies,
such as Singapore airlines, SingTel, ST engineering and mediacorp.
2.3 STRUCTURE, FUNCTIONS AND BUSINESS ACTIVITIES OF
PHARMA INDUSTRY
The growing Pharmaceutical industry was originally dominated by smaller companies, but this
trend has changed. Today, Pharmaceutical firms are typically extremely large to more easily
enable big expenditures for research and development. Most Pharmaceutical companies'
revenues come from patented blockbuster drugs, whose cost to bring to market is very high -- as
a result, Pharmaceutical firms use their patents to charge high prices.
a) Structure of the Pharma industry
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Source: 5th in reference
2.4 PRESENT POSITION AND TREND OF BUSINESS (IMPORT /
EXPORT) WITH INDIA / GUJARAT
Table name: Indian import exports
Table no: 3
Country 2012-2013 (apr- sep) %share (2012-2013 (apr- sep)
USA 19704.05 13.87
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UAE 18601.71 13.09
Singapore 6652.77 4.68
China 6417.32 4.52
Hong Kong 6137.9 4.32
Saudi Arab 4636.29 3.26
Netherlands 4458.24 3.14
U k 4112.26 2.89
Germany 3491.77 2.46
Brazil 3042.64 2.14
Source:http://www.guardian.co.uk/news/datablog/2013/feb/22/cameron-india-trade-exports-
imports-partners#[6]
2.5 POLICIES AND NORMS OF SINGAPORE FOR IMPORT OR EXPORT TO THE
PHARMA COUNTRY INCLUDING LICENSING, PERMISSION, TAXATION ETC
The Pharmaceutical industry in Singapore is a growing one and one which has a considerable
amount of government backing. It is part of the Pharmaceutical, biotechnology and healthcare
cluster in Singapore. These three industries have been grouped together as they have synergies
and address common issues of human healthcare. Of the three, Pharmaceuticals are viewed as the
strongest sector.
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In the mid-1990s, the Singapore government designated a 50 hectare site at tuas, the industrial
hub of the country, as a Pharmaceutical and biotechnology zone, known as the Pharma zone. The
particular focus of the zone is to tap the good growth potential of new Pharmaceutical and
biotechnology manufacturing companies. It has, to date, proved successful with an established
cluster of leading foreign companies such as smith line, glaxo and Merck now dominating the
industry here. They have multi-million dollar manufacturing facilities in Jurong Island and tuas.
The Singapore government's approach has been to adopt a proactive policy in the
Pharmaceuticals industry. In this regard, it plans to integrate Pharmaceuticals with drug
discovery, healthcare and clinical testing. The importance of Pharmaceuticals in Singapore is
reflected in the growth of the industry. It was a driving force behind the boom in life sciences in
1999 and is expected to continue to do well. It grew by 28% in the first four months of 2000.
Together with medical-device output, it has a 60% increase in output and these two sub-sectors
will reach the s$12 billion mark within two years if they continue to grow at the current rate.[7]
2.6 Governing authority and regulatory structure
The competent authority governing Pharmaceuticals is the national Pharmaceutical
administration ('NPA') set up under the ministry of health. The NPA is charged with, inter alia,
planning and developing national drug policies, Pharmaceutical programmers and services,
administering and enforcing legislations governing the control of western and Chinese medicinal
products, controlling cosmetic products, inspecting Pharmaceutical factories, wholesale and
retail premises, issuing advertisement permits for medicinal products, planning for emergency
Pharmaceutical supplies, and establishing international relationships on Pharmaceutical
matters. Under the NPA, there are a number of divisions or units which have been assigned
specific administrative tasks.Firstly, the NPA'S drug administration division is responsible for
registering and licensing western medicines, and the control of the import of medicinal products
into Singapore. The drug administration division also processes applications for new product
licenses, amending and renewing existing product licenses; approving the import of unregistered
medicinal products and issuing permits (on a per consignment basis) for the import of medicinal
products to be re-exported (within 6 months upon approval). More particularly, the medicines act
(cap 176) provides that the responsible authority is the director of medical services. The act
further adds that the responsible authority is the director of primary production where the
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functions to be performed relate exclusively to veterinary medicinal products and animals.Next,
the NPA set up a Chinese proprietary medicine unit to administer regulatory control on Chinese
proprietary medicines ('CPM'). This is to warrant that CPM sold in Singaporeis safe, of good
quality and labeled appropriately. It is to facilitate prompt withdrawal of CPM from the market
when necessary. In brief, the relevant legislation defines what CPM is, specifies safety limits for
toxic heavy metal and microbial content in CPM, and requires CPM dealers to be licensed.
While CPM dealers need not register individual products, they are obliged to provide
information on the CPM which they intend to import or manufacture, and they are only allowed
to deal in approved products. [7]
Thirdly, the good manufacturing practices ('GMP') and licensing unit ('GMPU') was formed
within the NPA to inspect and license Pharmaceutical manufacturers and cosmetic products, as
well as importers/wholesale dealers in accordance with current international GMP and good
distribution practices ('GDP') standards respectively. All wholesale dealers and importers of
medicinal products, including CPM, are required to comply with GDP. Gmpu's functions include
the licensing of Pharmacies, dealers of medicinal products, including CPM, the regulating of
psychotropic substances and narcotic drugs in accordance with international drug conventions,
and the granting of the certificate of a Pharmaceutical product under the world health
organization ('who') certification scheme on the quality of Pharmaceutical products moving in
international commerce.The primary activity of CCU is the registration of those cosmetic
products which are subject to licensing requirements, i.e. category i cosmetic products, namely
eye products and lip products. The types of licenses for category 1 products are product licenses,
import licenses and manufacturer's licenses. The licenses are valid for three years. With effect
from 1 January 2000, dealers of oral and dental hygiene products have also been required to
obtain licenses to import and sell. All other cosmetic products are classified as category ii.
Finally, an adverse drug reaction monitoring unit ('ADRMU') was set up at the NPA to collate
adverse drug reaction reports on a nation-wide basis for analysis and investigation, and to
collaborate with other national centers, with an ultimate view to help decrease drug-induced
reactions locally and internationally. In this regard, an adverse reaction to a drug is defined as
any noxious or unintended reaction to a drug that is administered in standard doses by the proper
route for the purpose of prophylaxis, diagnosis or treatment. The MOH has also appointed an
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expert panel on adverse drug reaction which comprises experts in the fields of medicine,
Pharmacy, Pharmacology and forensic sciences to act as an advisory panel to the adrmu. The
adrmu works in collaboration with the panel to recommend procedures and guidelines to the
ministry for the prevention of adverse drug reactions.As new knowledge about a drug's safety
profile is discovered, the NPA assesses the risk and decides on the most appropriate way to
manage new risk or new perspectives on a previously known risk. [7]
2.7 Governing legislation
A myriad of legislation governs Pharmaceuticals in Singapore. The medicines act and the
regulations promulgated thereunder provide for the control of all aspects of dealings in medicinal
and its related products, as well as CPMS. It provides for the licensing of all medicinal products
to be sold, manufacturers, wholesalers and importers, so as to help the authorities to ensure the
safety, efficacy and quality of medicinal products. It also deals with issues relating to
advertisements of medicinal products and CPMS.
As a corollary to the medicines act, the misuse of drugs regulations provides for the possession,
supply, import, manufacture and record keeping of controlled drugs to regulate the legitimate use
of controlled drugs by professionals. The sale of drugs act (cap 282) ensures that consumers are
supplied with the quantity and quality of drugs demanded by them, explicitly or implicitly.
The poisons act (cap 234) and the poisons rules regulate the importation, possession,
manufacture, compounding, storage and sale of potent medicinal substances and toxic chemical
substances, so as to prevent accidents arising from their use or misuse. This legislation only
comes into play if the Pharmaceutical product is also a poison.
On the international front, Singapore has acceded to the Pharmaceutical inspection co-operation
scheme ('PICS'). This is an international accreditation and liaison unit, membership of which
enhances the status of Singapore as a regional Pharmaceutical and life sciences hub. The PICS
also facilitate the process of mutual recognition on gmp inspection by PICS countries and enable
global acceptance of the quality of Pharmaceutical products manufactured and exported from
Singapore. Singapore is also a party to the 1971 United Nations convention on psychotropic
substances, and to the 1961 United Nations single convention on narcotic drugs. [7]
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2.8 The licensing requirements
2.8.1. Pharmaceutical products
The import and wholesale of Pharmaceutical products is governed by part ii of the medicines act.
There are four types of licenses prescribed:the product license,the import license,the wholesale
dealer's license, andthe manufacturer's license.Apart from the four types of licenses, the drug
administration department also issues a certificate for exporters of medicinal products. Many
importing countries require proof of registration of medicinal products in the country of origin
before sales are permitted. The certificate for an exporter of medicinal products is issued by the
licensing authority to holders of product licenses whose locally manufactured products conform
to required standards of quality so as to assist the local manufacturers in export markets.In
addition, a license may be required under the poisons act where the medicinal product is deemed
a poison within the poisons list. A license issued under the poisons act is to be numbered
consecutively in the year in respect of which they are issued and a register thereof maintained.
2.8.2 Product license
An import license is required where a Pharmaceutical product is to be imported into Singapore.
The import license must be obtained in addition to the product license referred to above. This is
because import licenses only authorize the import of Pharmaceutical products into Singapore. An
import license may, however, be obtained by a person who is not a holder of a product license, to
enable him to import any medicinal product for sale or supply where the licensing authority is
satisfied that the product is in all respects the same as the product in respect of which a product
license has been granted and which has been entered. An import license for authorized agents is
granted when the holder of a product license has authorized the applicant in writing to import the
product. This would be used in situations when the holder of the product license either cannot
(e.g. has no valid poisons license) or chooses not to import the product himself. [7]
This import license is not particular to any one product. Thus, the license may cover a number of
different products so long as that agent has been properly authorized to import those products.An
authorized agent applying for an import license must produce a copy of the authorization form
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from the product license holder when making his application. In addition, the relevant product
license number should appear on the labels and packages accompanying the products.[7]
2.8.3 Clinical drug trials
All clinical trials of medicinal products conducted in Singapore require a clinical trial certificate
('CTC') from the NPA. The medical clinical research committee ('MCRC') was set up by the
ministry to advice on the licensing of clinical drug trials. The mcrc deliberates and reviews new
applications for clinical trial certificates, amendments to clinical trial protocols and informed
consent documents, serious adverse event reports and requests for ctc extension. As a matter of
interest, the npa recently reviewed and updated the medicines (clinical trials) regulations and
implemented the Singapore guideline for GCP ('sggcp'). The sggcp, which was adapted from the
international conference on harmonization ('ich') guideline for gcp, sets ethical and scientific
standards for the conduct of clinical trials. It also serves as an assurance that results obtained
from clinical trials are credible.In addition, an ethical code of practice was drawn up to guide
doctors and drug companies on how they should deal with each other. For instance, doctors are
discouraged from accepting money from a Pharmaceutical company to conduct research or
clinical trials if it also means being required to buy the company's products. This code does not,
however, have the force of law.
2.8.4 Environmental issues
There is a growing concern about environmental issues in Singapore. In relation to the
Pharmaceutical industry, there are a number of issues that could potentially arise. It will suffice
here to state that the concern is greater where a manufacturing facility is established for the
manufacture and the production of Pharmaceutical products. Where the manufacturing facility of
the Pharmaceutical products is likely to release waste, including the release of toxic industrial
waste or trade effluents, then the manufacturer is required to obtain certain licensees. [7]
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2.8.5 Economic and tax incentives
There are several tax and economic incentives offered to the Pharmaceutical industry so as to
encourage the growth of this industry within Singapore. These are only listed here, given that it
is beyond the scope of an article of this length to discuss this here reasonably. In getting involved
in the Pharmaceutical industry, it is essential that a detailed study of the various tax incentives
must be undertaken before a venture is entered into.
2.8.6 Import procedure
From a business perspective, apart from licensing issues where Pharmaceutical products are to be
imported into Singapore, an import permit has to obtain from the controller of imports and
exports before the products can be imported into Singapore. The regulatory body in this area is
primarily the trade development board.
However, before an import permit can even be obtained, a business entity seeking to import and
sell (on a wholesale basis) Pharmaceutical products must first be duly registered under the
applicable Singapore laws to do business as a Singapore incorporated company, a Singapore
branch of a foreign company or a firm/sole proprietorship. The relevant acts of parliament are the
companies act and the business registration act. [7]
2.9 Policies and norms of India for import or export to the Pharma country
including licensing / permission, taxation etc
According to Ames gross and sunilpatel, pacific bridge, inc. The purpose of the report is to
provide an overview of the major aspects of the market, law and policy related to
Pharmaceuticals in India, as well as law and policy on patents, trademarks, investment and
company law. It is not meant to provide legal or commercial advice on which any business or
investment commitments may be based.
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the data and other statistics presented in this report have been collected from published sources
generally felt to be reliable (newspapers, published research, company data, business magazines)
but are not intended to be a substitute for detailed market studies and sales analyses. They are
only given to provide “order of magnitude” data.
2.9.1 Pharmaceutical and other related regulation
The major source for Pharmaceutical regulation is the drugs and cosmetics act 1940 (dca), and
the drugs and cosmetics rules (dcr) made there under. This legislation applies to the whole of
India and all products, whether imported or made in India. The legislation is enforced by the
central government (department of chemicals and fertilizers, ministry of chemicals and
petrochemicals) in NewDelhi, which is responsible for overall supervision. The office of the
drug controller of India (DCI) has prime responsibility. However, at the field level, enforcement
is done by the individual state governments through their food and drug administrations. Matters
of product approval and standards, clinical trials, introduction of new drugs, and import licenses
for new drugs are handled by the dci. However, the approvals for setting up manufacturing
facilities, and obtaining licenses to sell and stock drugs are provided by the state governments.
Price controls are in effect on certain drugs, by virtue of the drug prices control order 1995
(DPCO) (as amended from time to time), under the essential commodities act. (ECA). Other
relevant, but general legislation is administered by government ministries in charge of civil
supplies, law, industry, etc. [8]
2.9.2 Product approval
1. Definition of “drug”
According to DCA provides the definition of a “drug.” It is a definition which includes:
“All medicines for internal or external use of human beings or animals, and all substances
intended to be used for or in the diagnosis, treatment, mitigation or prevention of any disease or
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disorder in human beings or animals, including preparations applied on the human body for the
purpose of repelling insects like mosquitoes.
2.9.3 Approval procedures for new drug
There is no requirement for any registration of a drug in India. However, there is need for
approval from the dci to import, market, or manufacture a “new drug.” All new drugs (drugs not
previously used in India or in use for less than four years) proposed to be introduced must be
approved for import or manufacture in India by the dci. The application for permission to import
or manufacture must be accompanied by the appropriate dossier as follows.
1. Data requirements
The full set of data to be submitted consists of:
A. introduction: description of drug and therapeutic class
B. clinical and Pharmaceutical information
C. Animal Pharmacology
D. Animal toxicology
E. human/ clinical Pharmacology (phase i)
F. exploratory clinical trials (phase ii)
G. Confirmatory clinical trials (phase iii)
H. Special studies
I. Regulatory status in other countries
J. marketing information[8]
2.9.4Product standards
No drug can be imported, manufactured, stocked, sold or distributed unless it meets the quality
and other standards laid down in the dca. For instance, for patent or proprietary medicines
(medicines not listed in the Indian or other Pharmacopoeia), the product should comply with the
ingredients displayed in the prescribed manner on the label or container and such other standards
as may be prescribed. The dcr contains these standards.
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There are general standards for all patent or proprietary medicines, tablets, capsules, liquid orals,
injections and ointments. In patent medicines that contain vitamins, the content of active
ingredients shall not be less than 90% of the labeled contents (however more than 100% of the
labeled contents is allowed). In other cases excluding antibiotics and enzymes, the lower limit is
90%, but the active ingredient cannot exceed 110% of the labeled contents. In case of drugs
included in the Indian Pharmacopoeia (ip), the drug must comply with the standards of identity,
purity and strength specified in the current edition of the ip (or if not specified in the current ip,
then in the previous ip), as well as such other standards as may be prescribed. Similar standards
apply to drugs not in the ip, but included in the official Pharmacopoeia of another country.
Standards are also prescribed for other types of drugs such as sera, antigens and other biological
products.
2.9.5 Manufacturing
1. License to manufacture drugs
All manufacturing of drugs in india requires a license. Manufacturing is defined by the dca as
including any process or part of a process for making, altering, ornamenting, finishing, packing,
labeling, breaking up or otherwise treating or adopting any drug with a view to its sale or
distribution. It does not include dispensing or packing at the retail sale level. A license is
required for each such location at which drugs are to be manufactured, and also for each drug to
be manufactured. The license has to be renewed periodically. It is also possible to obtain a
license to manufacture a product in the factory premises owned by another party, a practice
called “loan licensing. [8]
The good manufacturing practices and requirements of premises, plant and machinery are
provided in the DCR. The items covered are: locations and surroundings, buildings, water
supply, disposal of waste, requirements for sterile products manufacturing areas (areas, access,
and surfaces), working space and storage areas, health clothing and sanitation of workers,
medical services, and equipment standards. The dcr also specifies rules for maintenance of raw
materials and records, master formula records, and batch manufacturing records. Manufacturing
operations and controls are also specified, including general controls, precautions against
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contamination and mix-up, reprocessing and recovery, product containers and closures, labels
and other printed materials. Distribution records and records of complaints and adverse reactions
are also necessary. Requirements for the quality control system are also provided, including the
functions of the quality control departmentwith respect to plant and machinery, the dcr provides
for recommended equipment for all product forms including syrups, elixirs, pills, compressed
tablets, and capsules as well as repacking installations.
The DCA also specifies other conditions for the grant or renewal of a license: competent
technical staff including a Pharmacy/Pharmaceutical chemistry/science/chemical
engineer/chemical technologist/equivalent foreign qualification with experience in drug
manufacture, requirements of the testing laboratory and qualifications of the head of the testing
unit. The applicant must also show (in case of patent or proprietary medicines), that the
medicines contain the constituent ingredients in the therapeutic/ prophylactic quantities as
determined in relation to the claims or conditions for which the medicines are to be used, that the
medicines are safe for use in the context of the vehicles, excipients, additives and Pharmaceutical
aids used in the formulation, are stable in the conditions of storage recommended, and contain
such ingredients and in such quantities for which there is therapeutic justification.[8]
2.10 Industrial licensing
Besides the drug manufacturing license as above, for certain drugs there is need for a
manufacturing license from the central government, in accordance with the drug policy and the
industrial policy. The legal basis for this is the industries (development & regulation) act, 1956
(idr). However, the list of such drugs has been reduced substantially and the only drugs now
requiring a license are: those involving use of recombinant dna technology, those involving use
of nucleic acids as the active principles and formulations based on use of specific cells/ tissue -
targeted formulations. The applicant in these cases has to apply for an industrial license. If the
application is in order, the applicant is granted a letter of intent (loi) which is an in principle
approval, subject to setting up the factory within a specified period. Once the factory is
established to the satisfaction of the authorities, the loi is converted into an industrial licence (il).
The il will specify various conditions, including the annual capacity up to which the unit can
manufacture the licensed item. All other manufacturing units have only to file an industrial
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entrepreneur‟s memorandum (item) with details of the proposed items to be manufactured, the
capacity, the location, the source of technology, the raw material requirement, the process
description and other details. However even items not requiring a license should not be
manufactured within 25 kilometers of a city of more than 1 million residents, unless the item is
manufactured in a designated industrial area, or is a non- polluting industry such as software,
printing or electronics.
2.9.6 Imports of Capital Goods and Raw Materials
Most capital goods, raw materials and spare parts are generally permissible (under what is called
open general license - ogle) upon payment of the appropriate import duty. Certain specific items
may require a license, however. The licensing authority is the director general of foreign trade,
under the ministry of commerce. In case the item to be imported is a drug and requires an import
license, permission of the dci must be taken.[8]
2.9.7 Import Licensing
India does not permit the free import of all goods. While India is a signatory to the world trade
organization (WTO), it has been given time to remove its quantitative restrictions on imports
(QRS) in a phased manner, with QRS to be totally lifted by 2002 or earlier. At present most non-
consumer goods items are permitted to be imported freely, while some consumer goods are
permitted to be imported freely, and others are prohibited for import. Most items are classified
under the international harmonized system (IHS or BTN) and categorized for import
accordingly. Imports and exports are regulated by the foreign trade (development and regulation)
act, 1992.
A. Pharmaceutical imports
Most Pharmaceuticals are freely importable under the foreign trade law. Certain drugs may not,
however, be imported except under a license given by the drug controller of India. Such products
cannot be imported after the date shown on the label as being that on which the potency would
reduce or toxicity would increase beyond the standard permitted. The foreign manufacturer
would have to appoint an Indian agent to apply for the import license. The agent would be
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responsible for fulfilling all the terms of the license. An agent has to be an entity (individual,
partnership or company) registered in India. A license is valid for a year, up to December 31st of
the year following the year in which the license was granted, and has to renew thereafter. The
importer must have a license to stock and sell drugs. In case there is any repacking or labeling to
be done, then the importer must also have a drug manufacturing license. A single license may be
applied to all drugs imported from one manufacturer, provided that the drugs are manufactured at
one factory or more than one factory functioning conjointly as a single unit. If the drugs are
made in two separate factories, a separate license is required for drugs manufactured by each
such factory.The license holder has several responsibilities including: maintaining detailed
records of sales, permitting inspectors to enter his premises to take samples, to furnish samples to
the DCI for examination when required, not selling any item of a batch until the sample is
cleared (if so directed by the DCI), withdrawing or recalling sold items if the batch from which
the sample is drawn does not meet the prescribed standards.[8]
2.9.8 Tariffs
1. Duty on imports
The import duty structure depends on the classification for import tariff and excise duty
(classification is more or less similar to the ihs/btn). Import duties are prescribed by the customs
tariff act. Specified life saving products can be imported at zero duty. For most other
Pharmaceuticals, the duty structure would be roughly as below:
A. C.i.f. value of the imported item (say): rs.10.00
B. Basic duty: 30% of c.i.f value rs.3.00
C. Countervailing duty 16% of c.i.f. Value plus basic duty plus surcharge rs.2.08
(equal to the rate of excise duty if the item was made in India)
d. Special additional duty 4% of the total of all the above rs.0.60
E. Total landed cost rs.15.68
F. Effective duty rate 56.8%
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Note 1: c.i.f. Value is based on supplier‟s invoice, which if in foreign currency is converted to
Indian currency at a standard rate.
Note 2: duties are paid by Indian importer in rupees. Supplier can be paid in foreign currency:
us$ etc.
2. Duty on local manufacture
The primary tariff structure would be as below
A. Ex-factory sale price of the item (say) rs.10.00
B. Excise duty: 16% of the above value rs.1.60
C. Total ex-factory price rs.11.60
D. Effective duty rate 16%
2.9.9Pricingregulation
Drug prices in India are among the lowest in the world (and imports are therefore negligible).
This is because of several reasons. The first is that only product patents and not process patents
(for Pharmaceuticals) are so far recognized under Indian law.[18]
therefore Indian manufacturers
can make bulk drugs and formulations by “reverse engineering” of the overseas patented
medicines, reducing R&D expenses and also avoiding royalty payments.[8]
Further, Indian labor costs are low compared to overseas levels. India also has a large pool of
technical and managerial personnel and does not need management skills from overseas. Most of
the plant and equipment required is made locally.
Most importantly a measure of statutory price control for bulk drugs and formulations operates in
India. Certain drugs (known as scheduled drugs, as they are listed in the first schedule to the
DPCO), 76 in number and accounting for 50% of Indian retail sales), are under price control, and
the prices for the bulk drugs and formulations thereof (whether imported or locally
manufactured) are restricted by certain formulae prescribed by government under the drug price
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control order, 1995 (DPCO). Non-scheduled drugs can be priced freely, subject to some
restrictions. The price control regime is administered by the national Pharmaceutical pricing
authority (NPPA). The government can exempt certain products from price control if they are
new drugs discovered in India or bulk drugs produced from the basic stage by a new process
discovered in India or drugs manufactured by small-scale industries (capital investment below a
certain level) and sold under their own brand names. Price control does not apply to formulations
under the Indian system of medicine or homeopathic medicines or items to which the DCA does
not apply.
The government of India announced in February 2002, the Pharmaceutical policy 2002, in which
it is proposed to make changes in the method of detaining price controlled drugs and also in the
pricing formula. However, these changes have not yet been implemented through legal
notifications.[18]
2.10 PRESENT TRADE BARRIERS FOR IMPORT / EXPORT OF
SELECTED GOODS
2.10.1 Trade Barriers for Pharmaceutical Industry:
A. Technical barriers to trade (TBT'S)
Singapore has very few trade barriers. There are restrictions in a few sectors, including legal
services, banking services, some telecommunications services, professional engineering
services and trade in tobacco products. However, the government is slowly allowing more
freedom for market forces in the economy, as can be seen in its plan to privatize the
telecommunications and public utilities industries. It has also announced that it will relax its
regulations on professional engineering services. In the area of intellectual property rights, the
Singapore government does have laws to protect against piracy and copyright infringement,
but it relies on the private sector to take the lead against transgressors. In general, Singapore
maintains one of the most liberal trading regimes in the world.
B. Singapore import prohibitions
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General prohibited items the following items are not allowed to be brought into Singapore:
1. Liquors and cigarettes marked with the words "Singapore duty not paid" on the labels,
cartons or packets
2. Cigarettes with the prefix "e" printed on the packets
3. Electronic cigarettes
4. Chewing gum (oral dental and medicated gum accepted)
5. Chewing tobacco and imitation tobacco products
6. Cigarette lighters of pistol or revolver shape
7. Controlled or psychotropic substances
8. Endangered species of wildlife and their by-products
9. Firecrackers
10. Obscene articles, publications, video tapes/discs and software
11. Reproduction of copyrighted publications, video tapes, video compact discs, laser discs,
records or cassettes
12. Seditious and treasonable materials[9]
2.11. Potential for import / export in India / Gujarat market business
opportunities in future
Pharma 2020: marketing the future
By 2020 the current role of the Pharmaceutical industry‟s sales and marketing workforce will be
replaced by a new model as the industry shifts from a mass-market to a target-market approach
to increase revenue.The third in the Pharma 2020 series outlines a confluence of dynamics that
lead to a new marketing and sales system with a smaller, more agile and smarter sales force. The
Pharma industry is no longer being rewarded for incremental innovation, me-too products and
selling the most pills. Companies will need to demonstrate that their brand adds value to patients
and they will have to offer a package of products and health services that the market not only
wants and needs but is willing to pay a premium for. The paper highlights some very strong facts
related to the need for Pharma to change its marketing and sales functions in order to sustain
future growth and performance. This report outlines in some detail what those changes in the
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business environment will be and provides Pharma companies with indicators of organizational
and operational structure that could influence their success and readiness to compete.
2.11.2 Business Availability In Future
In the future, while the global Pharmaceutical market has been trundling along with around a 2 to
4 percent annual growth, china and Indonesia are leading Asian growth with approximately 15
percent annual growth, explains rhenubhuller frost & Sullivan‟s vice president of healthcare for
Asia pacific. As the Pharma world continues to crane its neck towards the east, Asia is seen as a
cornerstone for boosting sales. According to the economist intelligence unit, regional Pharma
sales have more than doubled from USD 97 billion in 2001 to over 214 billion in 2010 and are
expected to reach 386 billion by the year 2016.
Southeast Asia is one of the fastest growing regions in the world for us and our expectation is
that it will continue growing in the coming years," says Augusto muench, regional director, south
East Asia and managing director of Singapore for boehringeringelheim (bi). Last year, 16
percent of the company's total growth was attributed to the association of Southeast Asian
nations (ASEAN).
Although patrickbergstedt, president of MSD, Asia pacific believes that "the growth of the
emerging markets has to counterbalance the pressure in the us and in Europe," Asia is no longer
the low-hanging fruit. Opportunities are riddled with challenges. Besides a tougher healthcare
environment that makes it costly to develop original compounds, bergstedt says that Asia‟s cost
of entry is much higher due to generic competition. "Also problematic are the hurdles for doing
clinical studies, getting drugs approved, and dramatically escalating reimbursements pressures.
Governments want to properly expand healthcare access worldwide, therefore require proper
funding for it. On the other hand, research based Pharmaceutical companies, such as ours, with
innovative molecules want to continue their research, which also requires funding." in the middle
of both, explains muench, "There are physicians that need to be able to provide those innovative
products to patients that are in need. Fabio landazabal, senior vice president and area director,
Asia pacific for GSK agrees: the Pharmaceutical model is at a stage where it might benefit from
strategic collaborations with diverse industries such as it and banking.
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The industry is shifting towards the two-brains-are-better-than-one route. Collaborations and
partnerships are seen, if not as a cure-all, then undoubtedly as mandatory to cope with the
complexities. In this perspective, we have to forge partnerships to see how we can help play a
role. The price of medicine is just one component; we have to look at the cost of healthcare,
which includes the price of medicines, infrastructure, supply logistics, training of healthcare
personnel, etc., says Bierstadt, who is hoping to bring MSD up to third place in Asia pacific,
from its current rank of fifth.[10]
2.11.3 FINDINGS OF PHARMACEUTICAL INDUSTRY
Singapore has following positive points for Pharma business initiative.
1. The Pharmaceutical industry in Singapore is rapidly growing industry with a considerable
amount of GOVERNMENT support
2. Singapore has host 15 world-class biomedical science companies and become the region's
hub including drug discovery and development, clinical research, and health care
delivery.
3. Singapore has a an open, pro-business environment, relatively corruption-free and
transparent, stable prices, low tax rates (14.2% of GDP) compared to other developed
economies, and one of the highest per-capita gross domestic products (GDP) in the
world.
4. Pharmaceutical has government initiatives for the increase the growth in market
worldwide.
5. Singapore Pharmaceutical industry is providing the education, training and clinical
sciences institute for the increase lifestyle of Singapore population.
6. Singapore has different norms for Pharma industry like governing authority and
regulatory structure, governing legislation, the licensing requirements, clinical drug trials,
environmental issues economic and tax incentives, import procedure etc.
7. Singapore has many trade barrier like clearance process, certificate of origin, technical
barriers to trade (TBT'S), Singapore import prohibitions, FedEx international priority
(FXIP) prohibitions, general import restrictions etc.
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8. Gujarat is also moving towards a growing hub for Pharma sector which will help in the
growth of the state in future by deal with Singapore.
9. Singapore‟s Pharmaceutical companies have been merged with many companies and also
acquired many other Pharma companies.
10. In Singapore many disease will rise now a days as per the expert so good potential market
and opportunity to Pharma industry in Singapore.
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3. AVIATION INDUSTRY
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3.1.1 INTRODUCTION
AviationinSingapore is a key component of the Singaporean economy in its quest to be a
transport hub of the Asian region. Besides currently the sixth busiest airport and the fourth
busiest air cargo hub in Asia, the Singaporean aviation industry is also a significant aerospace
maintenance, repair and overhaul centre. The aviation industry is a significant contributor to the
Singapore economy. In 2009, it contributed S$14.2 billion (5.4%) in direct and in-direct value-
add to the Singaporean GDP. [11]
Singapore is well known today as an air hub. With more than 350 awards, Changi International
Airport is recognized as one of the world‟s best airports. Singapore is also the leading center in
Asia for aerospace maintenance, repair and over haul (MRO), manufacturing and research and
development (R& D).Since 1990; Singapore‟s aerospace industry has grown at an average rate of
12% to become the most comprehensive MRO hub in Asia. In 2009, the aerospace industry
achieved a record output of S$7 billion and employed close to 18,000 workers. There are more
than 100 international companies carrying out MRO in Singapore. Aerospace-related R&D in
Singapore has also grown significantly over the last two years and is set to grow further still.
Major aerospace companies have already established R&D centers here to leverage the
capabilities of local research institutions and universities. Its excellent connectivity has made
Singapore the ideal location for Boeing, Airbus, Embraer and GE to establish their regional
distribution centers (RDCs). Singapore is also home to the bi-annual Singapore Air show, one of
the world‟s top three international air shows. [12]
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3.2. MAJOR AIRLINES AND AIRPORTS IN SINGAPORE
This is a list of airlines which have a current Air Operator Certificate issued by the Civil
Aviation Authority of Singapore.
Table of Airline
AIRLINE IATA ICAO CALLSIGN COMMENCED
OPERATIONS
Singapore Airlines SQ SIA SINGAPORE 1947
SilkAir MI SLK SILKAIR 1976
Singapore Airlines Cargo SQ SQC SINGCARGO 2001
Tiger Airways TR TGW GO CAT 2003
Jetstar Asia Airways 3K JSA JETSTAR ASIA 2004
Valuair VF VLU VALUAIR 2004
Jett8 Airlines JX JEC TAIPAN 2007
Scoot TZ SCO SCOOTER 2012
Source: Compile by the researcher[13]
3.2.1 STRUCTURE OF SINGAPORE AVIATION INDUSTRY
Singapore Airlines has diversified into related industries and Comparative position of Singapore
aviation with India
The Singapore-India market is poised for a modest increase in capacity, driven by further
expansion from the Singapore Airlines (SIA) Group made possible by the recent signing of an
expanded bilateral between the two countries. [14]
The updated air services agreement only increases the previous capacity allotment for Singapore-
based carriers by 10%. But SIA will take whatever it can get as Singapore-India is an important
and generally under-served market. Incremental increases are typical with the India-Singapore
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bilateral, which has been updated several times in recent years, although Singapore would prefer
a much bigger and broader agreement. [14]
SIA along with full-service subsidiary Silk Air and low-cost carrier affiliate Tiger Airways
already account for over 70% of capacity between India and Singapore. Indian carriers do
not require a revised bilateral as they were using less than 40% of the prior allotment. Indian
carriers over the last year have seen their share of the market decrease and may see their share
drop further by the end of 2013 as the SIA Group again boosts capacity to India. [14]
3.3 VISITORS FROM SINGAPORE TO INDIA
The total number of foreign visitors is 26, 10,638 come to India out of which 49,080 are from
Singapore.
Particular No. of visitors % of total visitors
Visitors of Singapore to India 49080 1.88%
Source: Compile by the researcher[15]
Based on Gender
Particular No. of visitors Percent
Male 29880 60.88%
Female 19200 39.12%
Source: Compile by the researcher [N 3]
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Sources: prepared by the researcher
3.4. VISITORS OF INDIA TO SINGAPORE [16]
Particular Numbers % of total visitors
Visitors of India to Singapore 170823 9.78%
Source: Compile by the researcher
3.5 INDIAN AVIATION MARKET
The total fleet size of commercial airlines in India are 371. In 1994, the Air Corporation Act of
1953 was repealed with a view to remove monopoly of air corporations on scheduled services,
enable private airlines to operate scheduled service, convert Indian Airlines and Air India to
limited company and enable private participation in the national carriers
However, beginning 1990 private airline companies are allowed to operate air taxi services,
resulting in the establishment of Jet Airways and Air Sahara. These changes in the Indian
29880
19200
0
5000
10000
15000
20000
25000
30000
35000
male female
6. Visitors of India To Singapore
male
female
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aviation policies resulted in the increase of the share of private airline operators in domestic
passenger carriage to 68.5%.
India‟s Ministry of Finance has put a service tax on tickets as well as landing and navigation
charges. Fuel taxes an excise duty of 8.2% and domestic charges that can add up to 30% to the
bill it means fuel is 45% of Indian carriers‟ operating costs. The Indian civil aviation sector is
robust, with passenger traffic growing at a fast pace, at almost double the rate of the country‟s
GDP. Domestic airlines carried 39.6 million passengers during January to April 2011, as against
33.4 million during the corresponding period of the previous year, registering a growth of 18.6%,
according to statistics of the Director General of Civil Aviation.
3.6 TABLE OF AIRPLANES AND THEIR MARKET SHARE
Source: Compile by the researcher [17]
3.7 OPPORTUNITIES IN SINGAPORE AVIATION INDUSTRY:
The long term prospect s of the aerospace industry remains positive in spite of the current
economic climate. Air traffic and aircraft fleet size in Asia is poised for strong growth,
bolstered by rising demand from India.
The global Aerospace industry is also in a phase of exciting developments. There has been a
recent surge in new aircraft types being developed and brought into service.
Air
Airports 2003-04 2004-05 2005-06 2006-07 2007-08
Ahmadabad 7.14 9.17 14.39 20.92 24.62
Vadodra 3.12 3.62 3.60 4.04 5.02
Rajkot 1.27 1.58 1.40 1.61 1.54
Bhuj 0.61 0.65 0.78 0.85 0.92
Bhavnagar 0.53 0.64 0.53 0.65 0.69
74 | P a g e
Aircraft employ new technologies, including the extensive use of composites in airframes,
the development of more efficient engines and the testing of environmentally friendly fuels.
Singapore continues to invest in strengthening its capabilities, manpower resources and
infrastructure to better position its aerospace industry to capture future growth.
The Indians have the opportunities in the areas of design and manufacturing of aircraft
systems and components, regional aerospace training, as well as business aviation. Engineers
across all disciplines are needed to fill positions in the new exciting investments made by
leading aerospace companies in Singapore.
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4. CHEMICAL
INDUSTRY OF
SINGAPORE
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4.1 INTRODUCTION TO CHEMICAL INDUSTRY OF SINGAPORE
Mega growth trends like rapid urbanization, changing demographics and the rise of the Asian
middle-class are shifting the need for products and services to Asia. With greater demand for
transportation fuel, as well as petrochemical and specialty chemical products, the Asia growth
story creates a window of opportunity.
As one of the world‟s leading energy and chemical hubs, Singapore‟s contribution to the industry
is vast, both in terms of output and research, and the Republic is constantly working to stay at the
forefront of the industry‟s advancement. In 2010, the chemicals and chemical products sector
contributed S$38 billion of the manufacturing output, a significant rise from S$28 billion in
2009. [18]
Singapore is strategically positioned as one of the world's leading energy and chemicals
hubs. Global companies are confident to set up their operations in Singapore because it‟s
recognized as a world-class energy and chemicals hub, a trusted location for investors to
implement their projects successfully, and for having excellent linkage to end markets. [19]
To strengthen Singapore‟s appeal as the choice investment destination for global chemicals
companies, the government continues to ensure that the country stays at the forefront of the
industry's advancement. Development initiatives focus on enhancing the nation‟s position as a
competitive location for development of petrochemicals, advanced materials as well as specialty
chemicals. [19]
FAST FACTS:
1. Singapore‟s Jurong Island is among the world‟s top 10 petrochemical hubs
2. The island is home to more than 95 leading global petroleum, petrochemicals and
specialty chemicals companies.
3. Singapore's energy and chemical industry contributed S$57 billion of the manufacturing
output in 2009 (28% of Singapore‟s total manufacturing output).[19]
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4.2 OVERVIEW OF CHEMICAL CLUSTER PERFORMANCE IN 2011
The Singapore chemical cluster comprises the Petroleum, Petrochemicals and Specialties sub-
sectors.The chemical industry‟s output in 2011 rose by 19.6% to S$97.2 billion, up from S$81.3
billion in 2010.The chemical cluster still continued being a key contributor, re-took its position
as the leading cluster within the manufacturing sector, contributing about 34 % to the overall
manufacturing output in 2011[20]
Table No. 13
Table Title: - Chemical Cluster Performance in 2011
Year Chemical Cluster Output ($ $ Bn) % Growth
2007 83.1 11.2
2008 98.1 18.1
2009 58.5 -40.4
2010 81.3 39.0
2011 97.2 19.6
Source: http://cpmaindia.com/pdf/apic_country_report_singapore_2012.pdf
Table No.14
Table Title: Chemical Industry Sectorial Performance
2007 2008 2009 2010 2011
Value
(S$ Bn)
Value
(S$ Bn)
Value
(S$ Bn)
Value
(S$ Bn)
Value
(S$ Bn)
Petroleum
Sector
48.5 60.3 31.8 42.3 54.8
Petrochemical
Sector
26.9 29.1 19.3 30.0 32.3
Specialties
Sector
7.7 8.7 7.3 6.9 8.0
Source:http://cpmaindia.com/pdf/apic_country_report_singapore_2012.pdf
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4.3. KEY PLAYERS OF SINGAPORE CHEMICAL INDUSTRY:
A) MITSUI CHEMICALS
Mitsui Chemicals, headquartered in Tokyo, is one of the largest chemical companies in Japan.
Established in 1997 via a merger between Mitsui Petrochemical and Mitsui Toatsu Chemicals,
Mitsui Chemicals has been expanding its operation and business in the area of functional
chemicals & engineered materials, functional polymeric materials, petrochemicals and basic
chemicals at production sites worldwide.
Mitsui Chemicals and Singapore continue to be a winning combination. Since the Japanese
chemicals giant first arrived on Singapore's shores over 30 years ago, it has invested over S$900
million (US$600 million) to expand its operations in the country.
A) Operations In Singapore
These include world-class phenol and bisphenol plants on Jurong Island, which form the anchor
of the phenolic chemistry chain in Singapore.
In 2010, the company started its 2nd Tafmer plant that doubled the production capacity of its
elastomers manufacturing in Singapore. The S$230 million (US$153 million) investment builds
on the company's existing facility, and harnesses Mitsui Chemicals technologies in polymer
design, metallocene catalysts and production processes to create a world-class production
facility.
Mitsui Chemicals also runs it‟s Asia Pacific Headquarters in the city state that houses several
corporate functions such as sales and marketing, technical support, logistics and business
planning.
“Mitsui Chemicals has enjoyed an extremely rewarding and longstanding partnership with
Singapore. The presence of pro-business government policies, talented and hardworking
workforce, as well world-class infrastructure, have enabled our Group to successfully tap on
Singapore as a base to execute our growth strategies in Asia Pacific”, said Mr. Yasushi Nawa,
Managing Director of Mitsui Chemicals Asia Pacific headquarter in Singapore.
In 2011, Mitsui Chemicals continued to expand its activities here in Singapore with the setting
up of Functional Polymeric Materials Development Centre to provide specialised technical
support to their customers and business.
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Also in the same year, Mitsui Chemicals opened the Mitsui Chemicals Singapore R&D Centre
(MS-R&D). This is Mitsui Chemicals‟ first and only R&D Centre outside of Japan. The Centre
focuses on development of advanced materials, as well as chemical and biotechnological
processes that are more environmentally friendly and efficient. The Agency of Science,
Technology and Research's (A*STAR), along with its research institutes such as Institute of
Chemical & Engineering Sciences (ICES) and Institute of Materials Research and Engineering
(IMRE), are some of the partners that MS-R&D works closely with.
The addition of MS-R&D means that Mitsui Chemicals now has the entire value-chain of
activities in Singapore that spans from regional headquarters, production and research. [21]
i. CLARIANT CHEMICALS
A) Overview
Clariant is a world leader in colours, surface effects and performance chemicals. Headquartered
in Muttenz, Switzerland, Clariant‟s global operations employ approximately 22,100 people
across the group‟s 100 companies.
Formed as a spin-off from the chemical company, Sandoz, that was established in 1886, Clariant
has more than a century‟s knowledge and experience in chemistry, and has expanded its
operations through incorporations and acquisitions in the past decade, such as in 1997 the
Specialty Chemicals business from the former Hoechst and in 2011 acquisition of the highly
innovative German company, Sued-Chemie. Acquisitions like these have helped Clariant expand
its portfolio across the range of chemical specialties, increasing the group‟s innovation
capabilities and its growth potential.
Clariant Singapore‟s principal activities are the manufacturing and trading of masterbatches - an
additive used in the manufacture and colouring of plastics, and specialty chemical products for a
wide array of different segments. Singapore also acts as the regional headquarters for Clariant‟s
operations in Southeast Asia and Pacific regions. [22]
B) Operations In Singapore
Clariant Singapore is the regional service hub for Southeast Asia & Pacific, managing the
operational execution of Clariant‟s business services in the region. This includes „satellite‟
operations in Vietnam, Bangladesh and the Phillippines.
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The company operates two offices in Singapore – one that manages its sales, marketing and
business support functions for non-Masterbatches business units, and the other its Masterbatches
business units.
Key to Clariant‟sMasterbatches operations in Singapore is Colorworks Asia Pacific. Colorworks
is a highly specialised service centre that provides the resources needed to deal with colour and
effects early in the development process of plastic products. It also provides a design and
technology service platform for manufacturers across a range of industries. [23]
C) Growth Beyond Colours
In 2011, Clariant relocated its Textile Chemicals headquarters to Singapore. With more than 43
per cent of the company‟s global textile chemical sales coming from Asia, this move signifies
Clariant‟s aim to expand its presence and consolidate its resources in the region. The new
headquarters also hosts the global textile application team, and boasts a state-of-the-art
laboratory facilitating new innovations in high-value markets.
With a greater demand for specialty chemical products, driven by the rapidly increasing demand
for lifestyle products, the Asia growth story creates a window of opportunity for multinational
companies looking to expand into the region.
As one of the world's leading energy and chemical hubs, Singapore is constantly working to stay
at the forefront of the industry's advancement with a focus to develop competitive feedstock for
petrochemicals, advanced materials and specialty chemicals.
The growth of Singapore‟s chemical industry can be seen from 2011 figures, where the industry
contributed an expected value-added per annum of S$0.7 billion (US$ 0.54 billion), and
employed 650 skilled workers.
For companies looking at managing operations in Asia and globally, Singapore‟s infrastructure,
global connectivity, manpower capabilities and talent can help them undertake manufacturing,
R&D, supply chain management and headquarters activities successfully.
“The relocation of the Textile Chemicals Business Unit‟s global headquarters to Singapore has
better positioned Clariant to respond to global market conditions. Singapore offers the ideal
location to serve the world‟s largest textile markets, such as Bangladesh, China, India, and
Southeast Asia,” explained Thomas Winkler, Head of Clariant‟s Textile Chemicals Business
Unit. “With our presence here, we are well-positioned to continue our growth in the region and
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the world,” he added. measures the direct contribution to Singapore's GDP when the projects are
fully implemented. It excludes multiplier effects. [23]
ii. EVONIK
Evonik, one of the world's leading specialty chemicals companies, announced the establishment
of a 500-million-euro methionine production complex, the company's largest chemical
investment to date. The facility will have an annual capacity of 150,000 metric tons and will
start-up in the second half of 2014. [24]
iii. SINGAPORE OXYGEN AIR LIQUIDE
Singapore Oxygen Air Liquide, the world's largest industrial gas player, completed a S$500
million expansion on Jurong Island. The expansion included the largest hydrogen product plant
in Southeast Asia, an air separation unit that increases the company's production capacity by 50
per cent, as well as an extension of its hydrogen pipeline network. [24]
iv. LANXESS
Lanxess, the world's largest synthetic rubber producer, announced the establishment of a
neodymium-polybutadiene rubber plant on Jurong Island. This will be the world's largest facility
for neodymium-polybutadiene rubber. At 200 million Euros, this is the company's second largest
investment in its history. The plant will be operational by early 2015.
4.4 Functional authority of Singapore
v. Singapore Chemical Industry Council
The Singapore Chemical Industry Council Limited (SCIC) is the official industry association
representing the Singapore chemical industry in the private sector. It plays a proactive role in
representing the interests of the local chemical industry and continues to promote it as a major
economic pillar of Singapore.
SCIC was officially formed under the umbrella of the former Singapore Manufacturers
Association (SMA) on 8th May 1979 by a group of 17 manufacturers. SCIC is affiliated to the
ASEAN Chemical Industries Council (ASEAN-CIC). It was incorporated as an independent
entity on 28 June 2007.
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4.5. Mission Statement
The Singapore Chemical Industry Council is committed to achieving the following objectives:
1. Promotion of the growth of the chemical cluster in Singapore in such ways as shall from
time to time be thought fit and in particular in partnership with the government.
2. The promotion of safety and protection of the environment in the operations, processes
and facilities of the chemical industry.
3. The enhancement of plant and facility operations of the members with a view to protect
the health and safety of employees, the public and the environment through dissemination
of knowledge and sharing of good practices.
4. To actively work with the government agencies and others in promulgating responsible
laws, regulations, practices and codes of conduct to safeguard the health of the
community, workplace and environment.
5. To assist members of SCIC to operate within acceptable laws, regulations and practices.
6. The partner in progress with the Government of Singapore in its effort to enhance growth
for the Chemical industry for investors, safety in the workplace for the workers and an
environmentally friendly Singapore for all the residents.
To represent Singapore chemical industry domestically, regionally and internationally.
4.5 STRATEGIC THRUSTS
4.5.1 Economic and Governmental
To co-ordinate the efforts by the Chemical Industry for the benefit of Singapore as well as for
intra-ASEAN regional economies.
To provide effective procedural measure for the establishment of an institutional identity to
promote the interest of the members in dealing with (1) government; (2) other private sectors,
institutions and industries; and (3) the public in general, within Singapore, intra-ASEAN and
outside the ASEAN region.
To affiliate itself to the ASEAN-CIC and serve as the recognized representative from the private
sector in Singapore to implement and deal with problems of ASEAN co-ordination in the
Chemical industry.
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To undertake, co-ordinate or encourage the conduct of research and studies for the purpose of
identifying opportunities and projects on products for complementation in the Chemical Industry.
[25]
4.5.2 Commercial
To develop and initiate the preparation and implementation of plans, programmes and projects
that will promote and advance local and intra-ASEAN trade of Chemical products.
To formulate and develop recommendations towards rationalization of government rules and
regulations on shipping, banking, documentation, investment incentives, tariffs and non-tariff
benefits, entrepot arrangements and other measures for identified projects and products for
complementation.
To establish a system for the prompt compilation and dissemination of statistical and other data
in support of the promotion and co-ordination of the Chemical industry in Singapore and other
ASEAN-CIC members.
To initiate, encourage and co-ordinate efforts that will assist the members of the Chemical
industry in examining the present and future trends in Singapore and intra-ASEAN region. [15]
4.6.Environmental, Health and Safety
To develop a credible relationship with the Ministry of the Environment and the Singapore Civil
Defences Force through the half-yearly dialogue session.
To be partners-in-progress with the Ministry of the Environment and the Singapore Civil
Defence Force in safely developing the growth of the Chemical industry and ensuring a
pollution-free environment. [25]
4.6.1 Institute of Chemical and Engineering Services
The chemical industry has been a major part of the Singapore economy for many years, based on
a strong foundation as a major oil refining centre with a long history, and strategically placed at
the heart of the Asia - Pacific region. In recent years the Chemical industry has also seen major
growth, so that chemistry and chemical engineering science now make a very significant
contribution to Singapore's economy.
In order to strengthen this position and to foster future development to grow from dependence
solely on manufacturing to secure a more knowledge dependant, high tech research and
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development based business environment, Agency for Science, Technology and Research
(A*STAR) and Economic Development Board (EDB) looked at how to bolster the local science
and technology base. As a result, the Institute of Chemical and Engineering Sciences (ICES)
came into being, to provide highly trained R&D manpower, to establish a strong science base
and to develop technology and infrastructure to support future growth.
Starting from a small centre in the National University of Singapore (NUS), ICES was
established as an autonomous national research institute under A*STAR on October 1st 2002.
Since that time, we have grown rapidly. We have established world leading laboratories, pilot
facilities, and the necessary infrastructure to carry out a world class research programmed in
chemistry and chemical engineering sciences. We have the capability to cover the range of
activities from exploratory research to process development, optimization and problem solving.
We can go from very small lab scale right to kg and pilot scale in one organization, with all of
the necessary skills directly at hand and integrated into a project oriented environment. [26]
4.7 Comparative Position of Chemical Industry of Singapore
Table No.15
Table Title: Import of India from Singapore
Date Product Imported India
Port
Foreign
Country
Quantity
28-03-
2013
Nycol Jl627s (Antimony
Oxides And Water) (Chemical
For Water treatment Plant)
Madras
Sea
Singapore 1360
18-08-
2004
Rotenone Powder 8-9% (Water
Treatment Chemical)
Bombay
Air
Singapore 10
05-04-
2004
Chemical Pallet-Consumable
(Polyacrylamide Copolymer,
Water D Ispersed In
HyRocarbon Solvent) Leftov
Calcutta
Air
Singapore 2
Source:http://www.infodriveindia.com/india-import-data/water-chemical-import-data.aspx
85 | P a g e
Table No.16
Table Title: Export to India from Singapore
Date Chemical Name Unit Unit Indian
Port
Imported
To India
31-May-
2009
Buzyme 146 [Leather
Finishing Chemicals] Foc
10 Kgs Chennai
Sea
Singapore
13-Apr-
2006
Leather Chemical - Bufin 601
Fa-Filler
150 Kgs Kolkata
Sea
Singapore
13-Apr-
2006
Leather Chemical - Bufin 604
Fk-Cationic Filler
200 Kgs Kolkata
Sea
Singapore
Source: http://www.cybex.in/Sample-Data/Leather-Chemical-Importers-Data.aspx
4.7.1 Singapore Chemicals Products that are being exported and imported
Accelevators, Acetic Acid, Acetonitrile, Acid Corrosion Inhibitors, Acid Dyestuffs, Acid
Phosphoric Ester, Acids, Acrolein, Acrylic Resins, Acs Reagent, Activated Carbon, Activators,
Active Zinc Oxide, Additives, Additives For Coatings, Adhesive For Stone, Adhesives,
Adhesives Chemicals, Adhesives Industry Chemicals, Adipic Acid, Aerogels, Aerosol
Insecticide, Agents, Agricultural Chemicals, Agro Chemicals, Air Conditioner Cleaners, Air
Fresheners, Air Refresher Products, Albumin, Alcohol Alkoxylate, Alcohol Ethoxylate,
Alcohols, Aldehydes, Algicides, Alginates, Aliphatic, Saccharide, Sand Control Chemicals,
Sanitaryware Chemicals, Sanitaryware Industry Chemicals, Sewage Treatment Chemicals,
Silicon, Silicone, Silicone Emulsion, Single Metal Soap, Soap, Soap Base, Soap Fatty Acid,
Soap Makers Chemicals, Soda Ash, Sodium, Sodium Acid Pyrophosphate, Sodium Alginate,
Sodium Benzoate, Sodium Bicarbonate, Sodium Bisulphite, Sodium Erythorbate, Sodium
Feldspar, Sodium Hexametaphosphate, Sodium Hydrosulfide, Sodium Hypochlorite, Sodium
Metabisulphite, Sodium Myristate, Sodium Oleate, Sodium Salt, Sodium Stearate, Sodium
Sulphate, Sodium Sulphite, Sodium Triployphosphates, Solder, Solder Paste, Solid Aluminium
Sulfate[27]
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4.8 Comparative Position of Chemical Industry of India
Chemical industry is among the oldest industries in India, and constitutes an important segment
of the Indian economy. The industry forms the backbone of industrial and agricultural
development of India and provides building blocks for downstream industries, making it a
significant contributor to India‟s national economic growth.
The chemical industry comprises both small and large-scale units. The fiscal concessions granted
to the small scale sector in mid-eighties led to the establishment of a large number of units in the
Small Scale Industries (SSI) sector. A large number of MNCs are also part of the industry. Major
chemical producing states in India are Gujarat and Maharashtra, with moderate base in other
states including Andhra Pradesh, Tamil Nadu, Karnataka and West Bengal.
The chemical industry, which includes basic chemicals and its products, petrochemicals,
fertilizers, paints and varnishes, gases, soaps, perfumes and toiletries, is one of the most
diversified of all industrial sectors covering more than 70,000commercial products.
As defined above, the size of the Indian chemical industry is estimated to have reached around
US$ 60.3 billion. In terms of total value added (at constant 2000 prices), the Indian chemical
industry was the 5thlargest in the world, and 2nd largestin Asia after China1. In terms of
segmentation, basic chemicals was the largest sector with total revenues of US$ 43.3 billion,
equivalent to about two-third of the industry‟s overall value in 2010.
Over the last decade, the Indian chemical industry has evolved from being a basic chemical
producer to becoming an innovative industry. With increasing investments in research and
development (R&D), the industry is registering significant growth in the knowledge arena,
including specialty and fine chemicals. The industry now produces a large number of fine and
specialty chemicals which have very specific uses and are essential for increasing industrial
production. These find wide usage as food additives and pigments, polymer additives, anti-
oxidants in the rubber industry, etc.
With per-capita consumption of chemical products in India being only a fraction of the global
average, the opportunities for the domestic industry are enormous. In dyes, for example, India‟s
per capita consumption is 50 grams, as against a world average of 425 grams. In case of
polymers, the per capita consumption is 5.2 kilograms in India, compared to the world average of
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25 kilograms. Keeping in view the size of the domestic market. And the growth of end user
segments, the potential for growth for the Indian chemical industry is immense. [28]
Chart No.5
Source: www.eximbankindia.com/rb154.pdf
Top Chemical Companies of Gujarat:
1. BASF (ANKLESHWAR, DAHEJ)
2. LENXUSS (ANKLESHWAR)
3. BAYERS (ANKLESHWAR)
4. UNITED PHOSPHOROUS LTD (ANKLESHWAR)
5. ATUL LTD (VALSAD)
6. GUJARAT HEAVY CHEMICALS LTD
4.8.1 Production of Major Chemical Segments
The volume of major chemicals produced in India amounted to 7.5 million metric tonnes (MTs)
in 2009- 10. Though high in absolute terms, the growth during recent times has not been as
emphatic. The production of the Indian chemical industry increased only at an average annual
rate of 1.0% – from 7.1 million MT in 2003-04 to 7.5 million MT in 2009-10. This near flat
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performance was primary a result of stagnant growth in alkalis (which includes soda ash, caustic
soda and liquid chlorine) – the segment which, by far, accounts for the largest share of the output
of the Indian chemical industry in volume terms.
Matters were made worse be negative average annual rates of growth in organic chemicals and
pesticides, both of which recorded average annual declines of (-) 2.0% and (-) 0.3%,
respectively, during the 2003-04 to 2009-10 period, pulling down the overall growth of the
industry. The positive and encouraging fact among the various segments of the Indian chemical
industry has been the performance of specialty chemicals, primarily dyes and dyestuffs. [18]
The average annual growth in production of dyes and dyestuff amounted to a healthy 10.4%,
from 26000 MT in 2003-04 to 42000 MT in 2009-10 and 31.3% on a year-on year basis in 2009-
10. This high growth could partly be attributed to the low base and low absolute volumes of dyes
and dyestuffs, but more significantly, it implies a consistent increase in market demand of such
products. [28]
Chart No. 6
Source: www.eximbankindia.com/rb154.pdf
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4.9 India’s Trade in Chemical Products
A) An Analysis
The share of overall chemicals and related products (including pharmaceuticals) in the country‟s
total exports has been exhibiting a gradual upward trend, indicating that the growth in their
exports during the recent past has outperformed India‟s total exports. Growth in exports of
chemicals and related products for 2009-10 stood at 1.4% as compared to a negative growth of
3.5% in the country‟s overall exports. According to latest available data, exports of chemicals
and related products (including pharmaceuticals) during the period April-December 2010,
recorded a 34.3% growth – in line with the growth in India‟s overall exports during the same
period. [28]
B) India’s Chemical Trade
Source: www.eximbankindia.com/rb154.pdf
90 | P a g e
India’s Export Destination for Organic Chemicals
(India Export Nearly Was 2.2 % to Singapore)
Source: www.eximbankindia.com/rb154.pdf
Major Export Markets of Inorganic Chemicals In 2009
(India Export Nearly Was 4.8 % to Singapore)
Source: www.eximbankindia.com/rb154.pdf
91 | P a g e
C) Foreign Direct Investments In Chemical Industry
Chemicals industry in India is increasingly becoming a globalized industry. Foreign direct
investment (FDI) in the chemical industry and trade between parent firms and their subsidiaries
is increasingly becoming significant for the sector.
FDI has had a positive impact on growth, development, productivity and competitiveness for the
Indian chemical industry. The country has benefited from the transfer and use of technology and
the associated benefits of FDI inflows, which has increased over the last few years due to the
several incentives that have been provided by the Government of India. The policy now allows
for 100%FDI in chemicals under the automatic route. [28]
Chart No.10
Source: www.eximbankindia.com/rb154.pdf
D) FDI Inflows in the Indian Chemical Sector (US$ mn)
The Indian chemical industry was among the top 10 sectors attracting the highest cumulative FDI
inflows (US$ 3.3 billion) during the period April 2000 – February 2012, with a share of 2% in
total FDI inflows (US $ 129.7 billion) into India. The surge in FDI inflows has been especially
significant in recent times – FDI inflows in Indian chemical industry increased by over 3.6 times
between the periods 2006- 07 and 2008-09. However, given the global financial crisis which
started in the latter part of 2008, financial year 2009-10 witnessed a decline in FDI inflow into
the sector. The FDI inflows however, bounced back in 2010-11 to touch US$ 398 million from
US$ 362 million a year ago. [28]
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4.10 Policies and Norms of Singapore Country for Chemical
Industry/Company for Import / Export Including Licensing
Standards in Singapore are developed by the Singapore Productivity and Innovation Board
(SPRING Singapore).SPRING Singapore is a statutory board under the Ministry of Trade and
Industry and is responsible for developing and establishing national standards and enhancing
Singapore's competitiveness. It is also the national authority on metrology, weights and
measures, chemicals and consumer product safety and is responsible for the accreditation of
conformity assessment bodies. SPRING Singapore is headed by a Chairman of a Board of
Directors representing industry, trade unions, government, and professions.
The development of national standards, which are usually voluntary, is coordinated by SPRING
Singapore's Standardization Department under the guidance of an industry-led national
Standards Council. The Council, which includes representation from the private and public
sectors, formulates strategies on Singapore's Standardization Programme. The Council heads ten
standards committees, which are responsible for formulating and establishing national standards
in ten identified areas.
The committees areas are: Electrical And Electronic Standards; Building And Construction
Standards; Information Technology Standards; Services Standards; Chemical Standards;
Medical Technology; General Engineering And Safety Standards; Quality Management
Standards; Environmental Management; And Food Standards. [29]
4.10.1 Accreditation
Besides being the national standards body in Singapore, SPRING also manages the Singapore
Accreditation Council (SAC), the national accreditation body. The SAC's primary function is to
accredit conformity assessment bodies based on international standards.
Accreditation is an endorsement of an organization's competence, credibility, independence and
integrity in carrying out its conformity assessment activities. This endorsement is manifested in
the use of the SAC accreditation marks in the issuing of endorsed test/calibration/inspection
reports or accredited certificates by its accredited organizations. [30]
The Singapore Accreditation Council currently operates accreditation programs in the following
areas:
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1. Calibration and testing laboratories covering chemical, biological, environmental,
medical, medical imaging, electrical, non-destructive testing, gaming and testing related
to civil and mechanical engineering
2. Inspection bodies for areas such as industrial pressure vessels and lifting equipment,
motor vehicle, structural steelwork and cargo
3. Quality management system (ISO 9001) certification bodies
4. Environmental management system (ISO 14001) certification bodies.
5. Product certification bodies
6. Occupational safety and health management system (OSHMS) certification bodies
7. Hazard Analysis and Critical Control Points (HACCP) food safety management system
certification bodies
8. Food safety (ISO 22000) certification bodies
9. Business continuity management certification bodies
10. On October 2010, the SAC was formally recognized by the U.S. Environmental
Protection Agency (EPA) for the ENERGY STAR Program.[20]
In addition, SPRING is also the Good Laboratory Practice (GLP) Compliance Monitoring
Authority in Singapore. In Jan 2010, Singapore became a Mutual Acceptance of Data (MAD)
adherent member of the Organization for Economic Cooperation and Development (OECD).
This means that GLP studies conducted in Singapore for the health and safety assessment of
chemicals will be accepted in more than 30 OECD and non-OECD member countries. [30]
4.10.2 Singapore’s Import and Export Indicators and Statistics at a Glance (2010)
A) Total value of exports: US$351.2 billion
Primary exports - commodities: machinery and equipment (including electronics),
consumer goods, pharmaceuticals and other chemicals, mineral fuels
Primary exports partners: Hong Kong (11.6 percent of total exports), Malaysia (11.5
percent), US (11.2 percent), Indonesia (9.7 percent), China (9.7 percent), Japan (4.6
percent)
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B) Total value of imports: US$310.4 billion
Primary imports - commodities: machinery and equipment, mineral fuels, chemicals,
foodstuffs, consumer goods
Primary imports partners: US (14.7 of total imports), Malaysia (11.6 percent), China
(10.5 percent), Japan (7.6 percent), Indonesia (5.8 percent), South Korea (5.7 percent)[21]
Table Title: Import and Export Indicators and Statistics
March 2000 March 2001 March 2002 March 2003
No.
of
Singa
pore
stand
ards
%a
aligned
to
interna-
tional
standard
s
No. of
Singap
ore
standar
ds
%a
aligne
d to
intern
a-
tional
standa
rds
No. of
Singa
pore
standa
rds
%a
aligned
to
interna
-tional
standar
ds
No. of
Singap
ore
standar
ds
%a
aligned
to
interna-
tional
standard
s
Quality 7 100.0 10 100.0 10 100.0 11 100.0
Environment 5 100.0 5 100.0 5 100.0 2 100.0
Information
Technology
29 100.0 32 100.0 36 100.0 41 100.0
Electrical/
Electronics
Industry
182 82.2 192 86.0 191 87.3 179 86.1
Mechanical 214 95.3 223 95.3 153 91.8 155 92.0
Chemicals 168 54.9 175 54.2 177 54.2 169 59.8
Food 70 48.1 71 48.1 71 48.1 72 48.1
Industrial
Safety
N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
Packaging N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
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March 2000 March 2001 March 2002 March 2003
No.
of
Singa
pore
stand
ards
%a
aligned
to
interna-
tional
standard
s
No. of
Singap
ore
standar
ds
%a
aligne
d to
intern
a-
tional
standa
rds
No. of
Singa
pore
standa
rds
%a
aligned
to
interna
-tional
standar
ds
No. of
Singap
ore
standar
ds
%a
aligned
to
interna-
tional
standard
s
Building/
Construction
163 25.0 165 30.0 166 30.0 169 30.0
Other 15 100.0 4 100.0 4 100.0 4 100.0
Medical 2 100.0 3 100.0 3 100.0 19 100.0
Services .. .. .. .. .. .. 1 0.0
Total 855 76.0 880 77.6 816 74.9 822 75.1
Source: http://www.wto.org/english/tratop_e/tpr_e/s130-3_e.doc
4.10.3 Export Prohibitions, Restrictions, and Licensing
There have been few changes to Singapore's prohibitions on exports since its last Review.
Sanctions imposed under United Nations Security Council Resolutions Export restrictions are
maintained mainly for security, health, and environmental reasons and involve animals and
animal products, fish and fish products, arms and explosives, chemicals, and radioactive
materials.[30]
4.10.4 Import Tariffs
Singapore is generally a free port and an open economy. More than 99% of all imports into
Singapore enter the country duty-free. For social and/or environmental reasons, Singapore levies
high excise taxes on beer, wine and liquor, tobacco products, motor vehicles and petroleum
products.
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Singapore levies a 7% Goods and Services Tax (GST). For dutiable goods, the taxable value for
GST is calculated based on the CIF (Cost, Insurance and Freight) value plus all duties and other
charges. In the case of non-dutiable foods, GST will be based on the CIF value plus any
commission and other incidental charges whether or not shown on the invoice. If the goods are
dutiable, the GST will be collected simultaneously with the duties. Special provisions pertain to
goods stored in licensed warehouses and free trade zones.[30]
4.11 Trade Barriers
Singapore maintains one of the most liberal trading regimes in the world, but U.S. companies
face several trade barriers. Services barriers include sectors such as pay TV, basic
telecommunications, audiovisual and media services, legal services, banking and education.
Singapore also maintains a tiered motorcycle operator licensing system based on engine
displacement, chemicals products etc.[30]
4.11.1 Prohibited and Restricted Imports
Special import licenses are required for certain goods, including strategic items, hazardous
chemicals, , agricultural biotechnology products, food derived from agricultural biotechnology
products, prescription drugs, over-the-counter drugs, vitamins with very high dosages of certain
nutrients, and cosmetics and skin care products. The import of such items such as lighters in the
shape of pistols or revolvers, firecrackers, handcuffs, shell casings, and silencers is prohibited.
Generally, the import of goods that the government determines as posing a threat to health,
security, safety and social decency is controlled. A full list of prohibited products and controlled
goods and their corresponding controlling agencies can be obtained from the Singapore
Customs.[30]
Companies must make an outward declaration to export or re-export goods out of Singapore.
Selected items are subjected to controls on exports of goods from Singapore. Items such as
rubber, timber, granite, satellite dishes and receivers, and chlorofluorocarbons, chemicals are
subjected to export control and licensing. Items under export control must be endorsed or
licensed by the appropriate government agencies before they can be exported.[30]
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4.12 Potential For Import / Export In India / Gujarat Market
Gujarat has become one of the most preferred locations for industrial investment in India. Apart
from having sound infrastructure facilities, skilled manpower, excellent domestic and
international connectivity and availability of raw materials, a key differentiating factor for
Gujarat is its focus on industrial development in the state. It has evolved as an urbanized
economy ensuring easy off-take of industrial output. The figure below lists the map & key
parameters of Gujarat.
Gujarat has achieved an annual growth rate of ~10 % p.a. over the past five years and contributes
~17% to the industrial production of the country. [31]
Source:http://www.ficci.com/spdocument/20215/Gujarat-Specilty-Chemicals Conclave-2013-
Background-Paper-Final.pdf
In 2010-11, Gujarat contributed 24.6 per cent to India's total exports of goods. Exports include
products from sectors such as textiles, petroleum, chemicals, pharmaceuticals, engineering, gems
and jewellery, naphtha, petrol, clinker, cement, oil cakes, bauxite, paraxylene, salt, soda ash,
food grains, cement clinker, ethylene, Pet-cock etc. The total cargo handled by the Kandla Port
PopulationUrban
Population
GDP at
current
Price
No of
Factries
Industrial
Output
Crude
ProductionExports
Series1 5.00% 7.00% 7.20% 10.00% 17.00% 17.70% 26.60%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
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(Only Major port of Gujarat) was 82.5 million tons during 2011-12. Gujarat is also the largest
exporter of cotton (60 %) in the country.[31]
The industrial infrastructure of Gujarat is very supportive for business development. The state's
manufacturing industry is supported by 0.34 million MSMEs. Currently, Gujarat has 83 product
clusters (refer figure below). The Cluster Development Scheme has been launched for furthering
the growth of product clusters. Some of the successful clusters include ceramics cluster at Morbi,
brass-parts cluster at Jamnagar, fish processing cluster at Veraval and power-looms cluster at
Ahmadabad. Gujarat has 184 industrial estates established by the Gujarat Industrial Development
Corporation (GIDC) for specific sectors such as chemicals, electronics, gems, apparels and
granite. The State Government has taken care to set up industrial estates on non-agricultural land
after assessment of industrial viability. Such availability of product cluster ensures opportunity
across the value chain.[31]
The chemical and petrochemical industry in Gujarat is the fastest growing sector in the state's
economy. Gujarat is the 'Petro Capital' of India, and contributes significantly to the country's
petrochemicals production (62 per cent), chemicals production (51 per cent) and pharmaceuticals
production (35 per cent).Gujarat has truly emerged as the hub of chemical manufacturing in
India. Around 6,600 chemical and petrochemicals products are produced in the state.[31]
Gujarat houses production facilities for some of the largest global and Indian chemical and
petrochemicals manufacturers. Gujarat State Fertilizers & Chemicals Ltd. (GSFC), Gujarat
Alkalis & Chemicals Ltd. (GACL) and Gujarat Narmada Valley Fertilizers Company Ltd.
(GNFC) are the largest public sector units located in Gujarat. GSFC is the only producer of
melamine and largest producer of caprolactum in India. GACL is the market leader in caustic
soda whereas GNFC is one of the leading fertilizers company in the country. Apart from these 3
PSUs, a large number of domestic and multinational companies across various chemical
segments have presence in the state. Leading Indian and multinational private organizations
which have a footprint in Gujarat are Reliance, ONGC, Dow Chemicals, Cheminova, Lanxess,
India Oil (IOCL), Indian Petrochemical Corporation Limited (IPCL), Nirma, Essar, BASF,
Bayer, Rallis, Novartis, Cadila, Aarti Group and Deepak Nitrite. Gujarat accounts for ~35% of
India's pharmaceutical output with more than 3200 pharmaceutical companies located in the
state. More than 35% of large & medium units in the state are from chemical industries and
chemicals account for ~16% of employment in the state.[31]
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4.13 Business Opportunities In Future
Singapore is known as the entrepreneurship capital of the world. It is a great place to start new
business ventures since the administration; its people and its ultra-metropolitan culture give a lot
of scope for experimenting with new business ideas. The free market policy adopted by the
economy of Singapore welcomes new business and provides a lot of space for business to grow
and flourish. The multicultural population of the country adapts to new products and services
quickly as well. All these factors make Singapore a hot bed for venture capitalists, despite the
fact that Singapore has limited resources. The dynamic market scenario of the country makes up
for this inadequacy. So, if you want to start a venture internationally, Singapore is the place to
begin. Read on below for some of the most flourishing and profitable business opportunities in
Singapore. [32]
A) Why do business in Singapore
Singapore poses as a lucrative business destination due to many advantages, including
geographical location of the country, well developed infrastructure, availability of both
international and domestic transportation, a natural seaport that has stood as world‟s one of the
largest for several decades and many others which have contributed towards the commercial
importance of Singapore.
The World Bank in its report "Doing Business 2007" rates Singapore as the best country where it
is easy to conduct various businesses and trade.
Singapore also features on the 1st place according to KPMG Competitive Alternatives Study,
2006 for being “World‟s most cost-competitive place for doing business.”Thus Singapore is a
major business hub both in Asia and the world.[32]
B) Basics for starting a business in Singapore
The seven important steps to start business in Singapore are:
1. Finding an office location
2. Local address is needed
3. Standard Subject Identification Code
4. Registration with ACRA online, tax number and company incorporation form
5. Creating and developing a company seal
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6. Work Injury compensation insurance scheme
7. Relevant permits[32]
C) Attractive business opportunities in Singapore
There are both criminal and civil laws governing business in Singapore. Check out the details
that you should know about business laws in Singapore:
1. Necessary permits and licenses
2. Know the business law guide for small and large enterprises
3. Employment Act
4. Hiring of foreign workforce requires one to comply with Employment Pass/S Pass/Work
Permit
5. Read thoroughly the basic conditions of service
6. Rights and obligations of employer
7. Dismissal laws at work[32]
D) Government Initiatives in Business
Singapore government encourages foreign firms to start their business here and this is to
maintain the direct investment flow. The marketing hub has a number of branch offices for major
banks, insurance companies and international enterprises. You can refer to three important
regulatory bodies and boards in Singapore for starting and smooth running of your business:
1. International Enterprise (IE Singapore)- Helps foreign firms and investors
2. Economic Development Board – Lays down policies for business and extends support
for business and workforce development to strengthen their economy
3. Standard, Productivity and Innovation Board – Helps with financing of SMEs,
management and by giving access to sale[32]
.
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SINGAPORE BANKING
INDUSTRY
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5.1 INTRODUCTION OF BANKING INDUSTRY OF SINGAPORE:
As a well-known international financial hub, there are over 100 banks in Singapore,
including six local banks, 24 foreign banks, 40 wholesale banks and 42 offshore banks. Since
the liberalization of the banking sector by the Singapore government in 2001, local banks
underwent a series of merging and acquisitions in order to compete with the foreign banks.
Today, Singaporeans are familiar with the Big Three, but in the 100 years of history of
Singapore‟s banking, local banks meant lots more than that.
Singapore Banking Sector(S$)
DBS Group Holdings Ltd Accumulate 14.96 16.10 7. 6% 29,474
Overseas Chinese
Banking Corp Reduce 9 .78 8.30 -15. 1% 27,132
United Overseas Bank Accumulate 18.85 20.95 11.1% 23,999
5.1.1Current Position
The Monthly statistics bulletin released by the Monetary Authority of Singapore
revealed the loan and deposit numbers ending December 2012. Singapore‟s total DBU
loans outstanding registered y-y growth of 16.7% to S$490.8 billion in Dec 2012.
Business loans and Consumer loans reported growth of 18.0% y-y and 15.0% y-y
respectively. M-m, loans growth in Dec 2012 was higher. Total loans grew 1.9 %,
compared to 0.5% in Nov 2012. Business loans grew 2.6% m-m, while Consumer loans
grew
1.7% m-m.57.9% of total loans comprise of Business loans, with the remaining
attributed to Consumer loans. We are neutral on the Singapore Banking Sector, and
maintain our preference for UOB over DBS and OCBC.
5.2 ROLE OF BANKING SECTOR IN SINGAPORE ECONOMY
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In Singapore, the Monetary Authority of Singapore acts as a defector central bank. It was
established in 1971 in order to regulate Singapore‟s financial industry to aid in its
development as an international financial centre. Its primary function is to ensure that the
financial markets operate in an efficient and smooth manner, in line with national economic
goals. The MAS is responsible for the following:
Implementing monetary policy.
Supervisor of the banking systems.
Banker to the government.
Banker to the banks.
Controller of International Reserves.
Issuer of currency.
Issuer of banking licenses.
Lender of last resort.
5.3 PROCEDURE TO OPEN A BANK ACCOUNT
The banks in Singapore provide various services on the corporate accounts. These
services include an option of multi-currency accounts, facility of internet banking,
credit cards, trade financing, freedom to transfer funds from one nation to another.
Banks follow a simple procedure to open an account.
Procedure to Open a Corporate Bank Account of a Singapore Company.
The company has to submit the following documents with the bank:
1. Duly filled in corporate account opening forms signed by the authorized
signatories.
2. The resolution passed by company‟s Board of Directors sanctioning the opening
of a bank account and the signatories to the account.
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3. One copy of the Certificate of Incorporation, certified by the company secretary or
one of the directors.
4. A copy of the company‟s business profile issued by the company registrar and
certified by the company secretary or one of the directors.
5. A copy of the company‟s Memorandum of Association and Article of Association
certified by a director of the company or company secretary.
6. A certified copy of the passport and residential address proof of directors, ultimate
owners and signatories of the company.
7. Other documents may be required depending upon different banks.
Some banks may require a majority of the company‟s directors or the account
signatories present in Singapore at the time of opening a bank account and signing
papers.
There may be a requirement in some banks regarding the deposit of a minimum
sum at the time of opening an account.
Procedure to Open a Corporate Bank Account of an Overseas Company.
The procedure and documents required for opening a corporate bank account of
the overseas company are similar to the requirements for a Singapore company.
However, the banks may practice more due diligence while opening an account of
an overseas company.
The banks will require more information regarding the business activities of the
company, source of funds, bank reference letters, the value of transactions, carried
by the company and proof of the beneficial owners of the company.
In addition, a company will have to submit the following documents:
1. Certificate of Incumbency.
2. Certificate of Good Standing of the overseas company.
STRUCTURE, FUNCTION & BUSINESS ACTIVITIES: of Singapore
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COMPARATIVE POSITION OF SINGAPORE BANK WITH INDIAN
BANK:
THERE ARE MAIN THREE PARTS;
First part seeks to highlight the mutual benefits that the two countries stand to gain with
increased cooperation in new areas and the progress that has already been made in this
direction with the signing of the Comprehensive Economic Cooperation Agreement in
2005.
The second section looks into Singapore‟s role in bringing India closer to ASEAN and
acting as India‟s gateway to the region.
The final part explores the possible partners and opportunities that Global India Foundation
can utilize by venturing into Singapore and add to its contribution in the process of
building stronger ties between India and Singapore and the South East Asian region in
general.
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BANK COMPOSITION OF SINGAPORE
Exchange Rates in Singapore Dollars
Currency Unit Bank Buys Bank Sells
INR - Indian
Rupees
100 2.2590 2.3343
USD - US Dollar 1 1.2278 1.2526
GBP - Sterling
Pound
1 1.8772 1.9152
AUD - Aust
Dollar
1 1.2528 1.2910
EUR – Euro 1 1.6028 1.6351
LKR - Sri Lankan 100 0.9596 0.9988
5.4 PRESENT POSITION AND TREND OF BUSINESS WITH INDIA:
Trade Relations between the two countries have now expanded to include a broad range of
cultural, political, economic, educational, human relations development and people-to-people
exchanges.CECA is meant to be an FTA- plus arrangement. This implies that negotiations would
go beyond tariff reduction on merchandise trade into other areas of trade negotiations viz.
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services, investments, standards, and movement of natural persons. Specifically, the JSG has
recommended that the CECA should be an integrated package of agreements comprising of five
major components: FTA on merchandise and services trade: bilateral investment agreement on
promotion protection and co-operation in foreign investment flows among the two countries:
refining existing Double Taxation Avoidance Agreement: an agreement to liberalize Air
Services, including an Open Skies Agreement for Charter Flights: and finally a work program for
economic cooperation in all areas of trade and investment cooperation, including cooperation in
Tourism, setting up of an India–Singapore investment fund, and a setting up of a second India
Centre in Singapore to harness Singapore‟s strengths as a business hub for Indian companies.
The agreement is Singapore's first comprehensive bilateral economic agreement with a
South Asian economy. Since the CECA was signed, trade with India has been increasing
steadily, reaching a record S$19.9 billion in 2006, a 20% increase over 2005. India is
currently Singapore‟s 12th largest trading partner worldwide while Singapore is among
India‟s 7th largest trading partners. More importantly,
India is Singapore‟s fastest growing trading partner among the major economies. Various
parts of the CECA have been implemented or are making steady progress. In the sector of
housing and infrastructure, CESMA International has brought with itself more than 40
years of Singapore's experience in public housing and is developing township in Andhra
Pradesh and other cities in India.
5.5 POTENTIAL IMPORT AND EXPORT WITH INDIA
A big step towards realizing the potential that India and Singapore hold for each was made
with the signing of the Comprehensive Economic Cooperation Agreement in June 2005.
Trade Relations between the two countries have now expanded to include a broad range of
cultural, political, economic, educational, human relations development and people-to-
people exchanges..CECA is meant to be an FTA- plus arrangement. This implies that
negotiations would go beyond tariff reduction on merchandise trade into other areas of
trade negotiations viz. services, investments, standards, and movement of natural persons.
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Specifically, the JSG has recommended that the CECA should be an integrated package of
agreements comprising of five major components: FTA on merchandise and services trade:
bilateral investment agreement on promotion protection and co-operation in foreign
investment flows among the two countries: refining existing Double Taxation
Avoidance Agreement: an agreement to liberalize Air Services, including an Open Skies
Agreement for Charter Flights: and finally a work program for economic cooperation in all
areas of trade and investment cooperation, including cooperation in Tourism, setting up of
an India–Singapore investment fund, and a setting up of a second India Centre in
Singapore to harness Singapore‟s strengths as a business hub for Indian companies.[33]
The agreement is Singapore's first comprehensive bilateral economic agreement with a
South Asian economy. Since the CECA was signed, trade with India has been increasing
steadily, reaching a record S$19.9 billion in 2006, a 20% increaseover 2005. India is
currently Singapore‟s 12th largest trading partner worldwide while Singapore is among
India‟s 7th largest trading partners.1More importantly, India is Singapore‟s fastest growing
trading partner among the major economies. [34]
In the banking sector, three prominent banks of Singapore, the DBS Holdings, the
Overseas Chinese Banking Corporation (OCBC) and the United Overseas Bank are being
given equal treatment with other Indian banks, as is the case of the Indian banks already in
operation in Singapore (the State Bank of India, the Indian Overseas Bank and the Indian
Bank).Suryaprakash, R (2005) Singapore - India Relations: CECA and Beyond. [35]
5.6 POLICIES AND NORMS OF BANKING:
In Singapore, the laws regulating banking are found in the relevant Acts passed by
Parliament (and their related subsidiary legislation), the common law and principles and
rules of equity. The common law and principles and rules of equity are derived from case
law. These legislations not only regulate the banking sector in Singapore, but also ensure
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that the legal framework for banking in Singapore keeps pace with the latest developments
in the financial world. The relevant acts pertaining to the banking industry include:
Banking Act – The Banking Act (Cap 19, 2003 Rev Ed) is the legislation that governs
commercial banks in Singapore.
1. Monetary Authority of Singapore Act (Cap 186, 1999 Rev Ed) – governs all
matters related to and connected to MAS and its operations.
2. Anti Money Laundering Regulations
3. Payment & Settlement Systems Guidelines
4. Securities and Futures Act
5.7 BANKS’ REGULATORS:
Singapore‟s banks are regulated by the Monetary Authority of Singapore (MAS).
The MAS is the central bank of Singapore as well as the financial regulatory authority and
its parent agency is the Singapore prime minister‟s office. Its main role is: Administering
the various statues pertaining to money, banking, insurance, securities and the financial
sector in general, as well as currency issuance. Current regulation in Singapore is
compliant with Basel 2.5, and the MAS has announced that Singapore incorporated
financial institutions will exceed the capital adequacy requirements required by Basel III.
This is due to many Singapore incorporated financial institutions being systematically
important and having considerable retail presence. Public consultation on Basel III ended
in February 2012 and the final draft of rules were published in mid‐2012. Investment
firms‟ regulators Singapore‟s investment firms are regulated by the MAS. Activities
related to the securities market are governed under the Securities and Futures Act.
The act puts in place the rules and regulations concerning markets, market operators,
clearing facilities, intermediaries and representatives. Regulated activities include dealing
in securities; trading in futures contracts; leverage foreign exchange trading; advising on
corporate finance; fund management; securities financing; providing custodial services for
securities; real estate investment trust management and providing credit rating services.
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Singapore has been able to attract large volumes of Foreign Direct Investment (FDI) for a
number of reasons: stable and incorrupt political and business regime, world‐class
infrastructure, highly‐educated workforce and competitive economy. This has helped the
securities market in Singapore become extremely attractive to foreign investors. Insurance
firms‟ regulators Singapore‟s insurance firms are regulated by the MAS. The MAS is very
supportive of the development of the insurance industry and various financial and fiscal
incentives have been made available to insurers considering setting up in Singapore. These
include tax exemption schemes for certain insurers. Singapore also has a reputation for
having an open and fair regulatory and legal system. Hence, Singapore is the largest
domicile for captive insurers in the region with over 150 registered insurers based there.
Solvency II is being monitored and the MAS has expressed that it will adopt some key
elements of it. The rules and regulations in Singapore tend to follow English law, so the
extent to which the MAS adopt Solvency II may depend on how the FSA (or future
English regulators) implement it.
5.8 ROLE OF MONETARY AUTHORITY OF SINGAPORE
In Singapore, the Monetary Authority of Singapore acts as a defector central bank. It was
established in 1971 in order to regulate Singapore‟s financial industry to aid in its
development as an international financial centre. Its primary function is to ensure that the
financial markets operate in an efficient and smooth manner, in line with national
economic goals. The MAS is responsible for the following:
Implementing monetary policy.
Supervisor of the banking systems.
Banker to the government.
Banker to the banks.
Controller of International Reserves.
Issuer of currency.
Issuer of banking licences.
Lender of last resort.[36]
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5.9 CATEGORIES OF BANKING LICENCES
Full Bank
Full Banks conduct a whole range of banking business for retail and corporate clients. The
Full Bank license is open to local and foreign banks but the latter enjoy less flexibility than
their local counterparts in their branch and automated teller machine (ATM) networks.
Qualifying Full Bank (QFB)
Introduced on 20 October 1999, Qualifying Full Bank (QFB) licences are open only to
foreign banks and allow them to have additional branches and/or off-premise ATMs as
well as to share ATMs among themselves. In June 2001, under the second phase of
banking liberation, the QFB privileges were expanded.
QFBs are allowed to:
1. Establish up to 25 service locations, which can be either brick-and-mortar branches
or off-site ATM locations;
2. Share ATMs among themselves;
3. Provide debit services through an Electronic Funds Transfer at Point of Sale
(EFTPOS) network; and
4. Provide Supplementary Retirement Scheme and Central Provident Fund(CPF)
Investment Scheme accounts and, from 1 July 2002, accept CPF fixed deposits.
Wholesale Bank
Wholesale Bank (WB) licences were first awarded in December 2001 and took effect on 1
January 2002. The WB licence replaced the Restricted Bank and the Qualifying Offshore
bank licences to better reflect the wide range of activities that could be conducted. WBs
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engage in the same range of banking business as Full Banks except that they do not carry
out Singapore Dollar retail banking activities.
The QFB and WB banking licences form part of MAS' programme to liberalise
commercial banking in Singapore by promoting a more open and competitive environment
and spurring local banks to develop and upgrade.
Offshore Bank
Offshore Banks were first set up in 1973 and operate mainly in the Asian dollar market,
foreign exchange and wholesale banking with non-residents. With residents, the total loan
amount involved, currently capped at S$500 million, must be approved by MAS.
5.10 PRESENT TRADE BARRIERS FOR BANKING INDUSTRY:
• Banking
• Domestic Banks
• Restrictions on real estate business
• Restrictions on ownership of non-financial firms
• Restrictions on setting interest rates
Foreign Banks
• Restrictions on real estate business
INSURANCE
• Restriction on setting interest rates
• Domestic companies
• Foreign companies
5.11 INDIA POTENTIAL MARKETING BUSINESS OPPORTUNITIES IN THE
FUTURE
Liberalization of the domestic banking market. Local banks strengthened their regional
presence through mergers and acquisitions. Expansion of foreign banks, some of which
made Singapore a regional or even global platform for important banking services, which
in turn led to increased competitiveness. And increased competition spurred the
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development of innovative products and more competitive pricing models. Provision of
sophisticated banking services like corporate and investment banking activities, apart from
traditional lending and deposit-taking functions.
Nice things of it that Strict banking secrecy laws, tax friendly policies and a suite of wealth
management services created a private banking boom. Swiss giants Credit Suisse Group
and UBS AG have expanded private-banking operations in Singapore to cater to new
demand from Asians and Europeans.Recognizing and catering to the needs of Small and
Medium Enterprises who comprise a sizable banking market in Singapore.This guide
provides an overview of the banking industry in Singapore focusing on the key trends, the
major domestic and international players and the services they offer, the role of the
Monetary Authority of Singapore (MAS) and banking regulations that govern the industry
today. Overall in Singapore is good place for doing business.
5.12 FINDING:
Repute, catering to the demands of not only the domestic economy but also the wider Asia
Pacific region and in certain cases the world economy and many other sectors which are
going to develop at fast level.
In banking Singapore has to offer many various products and wide range of financial
services including banking, insurance, investment banking and treasury services.In banking
sectors it has great marvelous growth of banking sectors and also coming up with various
schemes and innovative products and services offer to people, which please to people and
so that it build such loyalty with public.
For any nation require good banking sectors which the Singapore has and it we are looking
how it is operating and managing rules and regulation with transparency level. An
important highlight of Singapore's Financial Centre is it‟s structured and cash rich capital
markets. It is one of the most important capital markets in Asia Pacific.
The Bond market in Singapore has grown significantly. The banking sector is one of the
growth engines for any country and when it operates effectively and efficiently which
greatly help to development of the nation.
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Also the Government playing an important role for economic policy and other rules and
regulation as in Singapore the Govertanment at highest level helping to people for best
thing and also best ethical practice putting there. With a wide range of Singapore
government securities and foreign corporate bonds to choose from,
Singapore offers fixed income investors a wide range of investment opportunities. It also
has the unique distinction of being the second largest over-the -counter derivatives trading
centre in Asia. With total assets of around S$1 trillion and ever increasing, Singapore is
one of the world class premier asset management centres in Asia.
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6. SINGAPORE TOURISM
INDUSTRY
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6.1 INTRODUCTION OF TOURISM INDUSTRY
The Singapore Tourism Board is the country's leading economic development agency in tourism,
one of Singapore's key service sectors[37].
The Singapore Tourist Promotion Board was first established in 1964 with the mandate to
promote Singapore as a tourist destination. The thinking of the government then was that an
organization needed to coordinate the efforts of hotels, airlines, and travel agents in promoting
the overall image of the destination.[37].
They began work with small staff strength of 25. That year Singapore tourism welcomed 91,000
visitors. STB aims to ensure that tourism remains a key economic pillar through long-term
strategic planning in partnership with the public and private sector stakeholders. STB's goal is to
create exciting and innovative experiences for Singapore tourism board visitors, in close
partnership with the trade industry, thus etching forever in visitors' minds an image of Singapore
as a unique and compelling destination. To do so, STB has identified three key areas of focus -
strengthening Singapore's position as a Leading Convention and Exhibition City in Asia,
developing Singapore as a leading Asian leisure destination, and establishing Singapore as the
Services Centre of Asia.[37].
6.2 ROLE OF TOURISM INDUSTRY IN ECONOMY OF SINGAPORE
The development of the tourism industry and its significant effect on the Singapore economy.
Changes in tourism expenditures will change the sales revenues of firms catering to tourist needs
for different goods and services, which will change the sales revenues of various direct supplies
of catering firms. This in turn will change the sales revenues of other firms from whom the direct
supplies purchase inputs. As the recipients of the direct and indirect tourist expenditures spend
their changed incomes, the demand for goods and services will change again.[39]
As a result, the ultimate change in GDP, total value added and employment will be much larger
than the initial change in the tourism industry. At the sectors level, tourism expansion may lead
to expansion in some sectors and contraction in others. Tourism related sectors tend to expand
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because of the direct or indirect stimulation by the tourists‟ demand while other sectors tend to
contract because resources are diverted from these sectors to tourism related sectors.[39]
6.3 STRUCTURE, FUNCTION AND BUSINESS ACTIVITIES OF TOURISM
INDUSTRY
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6.4 POLICIES AND NORMS OF SINGAPORE TORISUM INDUSTRY
The Travel Agents & Tourist Guides Division is responsible for the overall certification and
development of Singapore's travel agents and tourist guides. This is achieved through official
licensing and formal training so as to ensure the delivery of a professional and quality tour-
guided visitor experience. This includes ensuring compliance with the Travel Agents Act and
Regulations and the Tourist Guides Regulations.
The Division comprises the following departments: Travel Agent Industry Development, Travel
Agent Licensing and Regulatory Review, and Tourist Guide Licensing, Development and
Enforcement.[40]
A) TRAVEL AGENT INDUSTRY DEVELOPMENT (TAID):
TAID addresses the development of the travel agents through:
a. Creating avenues for travel agents to improve their competitiveness and sustainability
b. Helping the industry overcome challenges that hamper growth
c. Precipitating opportunities for travel agents to produce and deliver higher-yielding visit
experiences that satisfy the needs of the visitors
d. Facilitating the presence of overseas travel enterprises in Singapore, thus enhancing the
vibrancy of the local industry[40]
B) TOURIST GUIDE LICENSING, DEVELOPMENT AND ENFORCEMENT (TGLDE):
TGLDE seeks to ensure that licensed tourist guides are able to deliver the service and quality of
the guided visit experience expected of a world-class tourism destination. This is achieved
through ensuring: [40]
a. Tourist guide candidates attain the requisite standards set by STB
b. Continuous education of licensed tourist guides
c. Compliance with the Tourist Guides Regulations
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C) TRAVEL AGENT LICENSING AND REGULATORY REVIEWS (TALRR):
TALRR aims to uphold a relevant regulatory environment for the tourism sector, particularly for
travel agents and tourist guides through managing and reviewing STB-owned Acts and
Regulations i.e. the Travel Agents Act & Regulations and the Tourist Guide Regulations.[40]
The other key thrusts include:
a. Overseeing the review of the Travel Agents licensing and renewal regime
b. Executing and enforcing the licensing regime
c. Transforming the travel agent industry by developing and executing relevant programmes
and initiatives to:
o Drive efficiency and productivity through capability and system upgrades;
o Explore business opportunities for sustainability through innovation and value
creation, and
o Facilitate investment to catalyse change in the industry.[40]
COMPARATIVE POSITION OF TOURISM INDUSTRY WITH INDIA
YEAR EXTERNAL TRADE TOURISUM
TOATL
EXPORTS IMPOTRTS
TOTA
L
DOMEST
IC
EXPORT
S
RE-
EXPORT
S
INTER
NATIO
NAL
VISITO
RS
ARRIV
ALS
AVAILABLE
ROOM
NIGHTS
MILLION DOLLARS THOUSAND
2001 425718.4 218026.3 118444.3 99581.9 207692.1 7522.2 10383.1
2006 810483.3 431559.2 227378.0 204181.2 378924.1 9751.0 10509.4
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2007 846607.4 450627.7 234903.1 215724.7 395979.7 10284.5 10511.7
2008 927654.8 476762.2 247618.0 229144.2 450892.6 10116.1 10588.5
2009 747417.4 391118.2 200003.1 191115.0 356299.2 9682.7 10874.8
2010 902062.6 478840.7 248609.8 230230.9 423221.8 11641.7 10999.4
2011 974396.3 514741.2 281349.7 233391.6 459655.1 13171.3 12240.4
Percentage change over previous year
2001 -9.4 -8.3 -12.9 -2.3 -10.5 -2.2 2.9
2006 13.2 12.8 9.6 16.6 13.7 9.0 0.9
2007 4.5 4.4 3.3 5.7 4.5 5.5 0.0
2008 9.6 5.8 5.4 6.2 13.9 -1.6 0.7
2009 -19.4 -18.0 -19.2 -16.6 -21.0 -4.3 2.7
2010 20.7 22.4 24.3 20.5 18.8 20.2 1.1
2011 8.0 7.5 13.2 1.4 8.6 13.1 11.3
6.5 FOREIGN EXCHANGE EARNINGS (FEE) (IN RS. CRORES) FROM TOURISM IN
INDIA BETWEEN JANUARY 2001 AND 2011
Year FEE from Tourism
in India (in INRCrores)
% change over
the previousyear
2000 15626 20.7
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2001 15083 -3.5
2002 15064 -0.1
2003 20729 37.6
2004 27944 34.8
2005 33123 18.5
2006 39025 17.8
2007 44360 13.7
2008 51294 15.6
2009 54960 7.1
2010 64889 18.1
2011 35163 12
6.6 SINGAPOREMARKETING BUSINESS OPPORTUNITIES IN THE
FUTURE:
The Singapore Tourism Board (STB) is developing a new tourism roadmap called Tourism
Compass 2020 and wants to know your vision for Singapore in 2020.
Tourism Compass 2020 will be an enhancement of Tourism 2015, a tourism blueprint launched
in 2005 with a vision to become Asia‟s leading MICE city, leisure destination, and services
centre. It targeted to achieve S$30 billion in tourism receipts and 17 million visitor arrivals to
Singapore by 2015.[41]
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The Tourism Compass 2020 Steering Committee will provide strategic direction for future
tourism development in Singapore.[41]
Five Taskforces have also been set up to map out tourism strategies specifically pertaining to the
areas of Business, Enrichment, Lifestyle, Marketing, and Travel and Hospitality. Each Taskforce
is led jointly by STB and Tourism Consultative Council (TCC) representatives, and is supported
by members of various backgrounds from the private and public sectors who provide valuable
insights and perspectives.
October 2009 to January 2010. The public can vote for the most creative ideas submitted via this
website. The top three contributors as voted by the public each month will go on to enjoy new
and popular Singapore experiences at Resorts World Sent osa and Dempsey Hill. Their ideas
may also be incorporated into the Tourism Compass 2020 roadmap.
The STB actively seeks out international conferences, exhibitions and events in the various
creative industries to be hosted in SingaporeThe STB and other state agencies actively seek out
opportunities not only to host international events but also opportunities to make Singapore into
the hub of global and regional organizations, including those in the media, design,
telecommunication, pharmaceuticals and financial sectors. The STB and tourism offer a
framework for Singaporeans, and also the Singaporean creative economy, to imagine themselves.
The brand story of Singapore as a creative hub is drawn from “Uniquely Singapore”, the
destination branding of Singapore.
6.7 INDIAN MARKETING BUSINESS OPPORTUNITIES IN TOURISM
INDUSTRY IN THE FUTURE
Indian is a land of vast tourism opportunities as it is comprised of different cultures, traditions,
festivals, and places of interest.The evolution of India's tourism sector, which has thrown open
opportunities for not just the big corporate houses but small and medium enterprises and
entrepreneurs.
Another key trend within the tourism sector in India has been the emergence of medical tourism.
Asia, as whole has approximately 12.7 per cent of the global market and major healthcare
hospitals in India are registering strong growth[42]
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Furthermore, for development and promotion of tourism, the Working Group on Tourism for
12th Five Year Plan, set up by the Planning Commission, has recommended a total outlay of Rs
22,800 crore for the sector during 12th Plan. The target growth rate in domestic tourism is 12 per
cent per annum during the plan.[42]
An important catalyst in the direction of tourism in India. Sporting events such as the
International Cricket IPL 20/20, next to the Commonwealth Games also help the tourism
industry in India will grow to great heights and standards in the near future.
6.7 GUJARAT MARKETING BUSINESS OPPORTUNITIES IN THE
FUTURE
Talking about the phenomenal growth in Gujarat‟s tourism sector, Shri Modi recalled that
despite being a land known for its hospitality, Gujarat was nowhere on India‟s tourism map.
The strong potential of tourism in Gujarat, the example of RannUtsav. “At one time Kutch had
negative growth. And the immense scope of eco-tourism in SaputaraAravalli hills. As well as in
bird tourism,
Also Government is thinking about a policy to attract more shootings and popularize the tourist
locations of Gujarat. There are many opportunities in other spheres like agriculture tourism and
kid‟s tourism, conference tourism, adventure tourism.
In the coming time, GUJTOP intends to develop itself as a platform that will promote tourism
infrastructure across the state. GUJTOP will provide advisory services for private investors who
intend to invest across the state, establish the required marketing and promotion arrangements,
which will help to enhance state‟s tourism at domestic and international level. [43]
The Emerging Tourism Areas Tourism in Gujarat offers a Traveller‟s Paradise. It offers a wide
spectrum of Tourism sectors which sing in the glory of Gujarat‟s rich culture and heritage.
6.8 FINDINGS FOR SINGAPORE TOURISM INDUSTRY
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For preparing this report we gone through various sources for getting best information regarding
the Singapore as well as India Tourism Industries. So, according to different sources of
information we can found as following:
Singapore is a “bustling cosmopolitan city” populated with high-rise buildings and
landscape gardens. Brimming with a harmonious blend of culture, cuisine, arts, and
architecture, Singapore is a dynamic city that is rich in contrast and color.
Singapore has very sound business infrastructure and favorable economic climate.
Singapore is zero corrupted country; it has fully transparent system at all level.
It has many religion and cast people than also they have harmony relation with each
other.
Singaporeans speak more than eight languages, and have high literacy rate (92.5).
Singapore is an “attractive destination for trade and commerce”.
Singapore has many industries which contributing in their economy very well.
Singapore has good trade relationship with India and Asia.
People Action Party dominates Singapore, which described as socialist democracy.
Singapore has well established legal structure, which consider as fair structure.
The predictable future will see tremendous opportunities for the infocomm industry.
Singapore is very famous for its tourism, which attract foreigner for visiting and that help
to contributing in country economy.
Singapore has Singapore tourism board (STB) which has defined norms, values, vision,
mission, and structure for tourism in systematic way.
Tourism industry provides job opportunity to Singaporeans and outside people.
Singapore tourism industry has barriers like challenges of communities, culture, and
religion, rich heritage. Limited land space and challenges is to make the most of available
resource, high-level life style.
India also has very attractive tourism industry, which include TajMahal, Mathura,
Goa,Darjdeerelege, pichola, Omkareshawar, Jaipur, Mahabaleshawar, and Kovalam.
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Other spheres like agriculture tourism and kid‟s tourism, conference tourism, adventure
tourism. In India Tourism is the largest service industry with a contribution of 6.23% to
the country's GDP and 8.78% of the total employment of the nation.
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7. SINGAPORE HEALTH CARE
INDUSTRY
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7.1 INTRODUCTION:
Singapore, an island country with population of 5.2 million, is well-known for its efficient and
widely covered healthcare system. After Singapore‟s independence in 1965, started with a mass-
inoculation program against severe tropical epidemic diseases. In order to provide convenience
to the out-patient attendances, the government extended the network of hospitalization, including
general hospitals, satellite out-patient dispensaries and maternal and child health clinics.
Healthcare ranked as the fifth priority for public funds.
Source - http://www.heritage.org/index/country/singapore
Singapore has one of the highest medical standards across Asia. It is known as Asia‟s regional
centre of medical excellence. The well-established healthcare system is composed of thirteen
private hospitals, ten government hospitals and a number of specialist clinics, each one
specializing in catering to the needs of different patients‟ at varying costs.
Patients are also free to choose their healthcare provider, both within the public and the private
healthcare system. The medical facilities of Singapore are considered one of the best in the
world. Medical practitioners are well-trained and qualified. Furthermore, pharmaceuticals are
widely available from a number of pharmacies and outlets that include department stores,
supermarkets, shopping centers, and hotels. Registered pharmacists normally work between 9am
and 6pm and there are some pharmacies that open to 10pm. Also, most hotels have doctors on
call 24 hours.It detailed the infrastructural plan for the next 20 years, the “restructuring” of
public sector hospitals started to merge the business and financial disciplines into health care
services for the purpose of providing higher quality of services and financing efficiently (Lim,
1998).The expenditure of national health care was maintained at the level of 3% of GDP through
the period of 1980s to 1990s. The dollar term steadily increased every year from 1967 to 1995.
In 2002, the government promulgated the Elder Shield plan so as to help the elders and the
severe disabled in particular.
7.2 Top 5 Hospitals in Singapore
1. Mount Elizabeth Hospital
2. Gleneagles Hospital
3. Mount Alvernia Hospital
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4. Singapore General Hospital
Source - http://thisisthenew.wordpress.com/2013/01/03/top-5-hospitals-in-singapore
7.3 HEALTHCARE SYSTEM IN SINGAPORE:
Singapore records relative low cost hospitals compared to other developed countries in Europe
and South East Asia. It has an efficient system as well with WHO rankings giving it a 6th
position in terms of healthcare benefits and infrastructure. The World Health Report data reveals
the lowest rate in infant mortality for around 2 decades now. Adult obesity and HIV affected
deaths are also low. Improved sanitation and immunizations have increased the life expectancy
level in the country as well.
The government has a three-tier healthcare system for the residents of Singapore.
Medifund – For those hospital and healthcare expenses are unaffordable
Medisave – Healthcare scheme that covers around 90 per cent of Singaporean population
Med shield – Health insurance policy funded and promoted by the government
A) HEALTHCARE SYSTEM REGULATORS IN SINGAPORE:
The philosophy of Singapore‟s healthcare system consists of three pillars.
Firstly, the country is aimed to build up a healthy population with preventive health care‟s and
to encourage healthy lifestyles.
Secondly, Singapore also emphasizes personal responsibility towards healthy living through
the“3M” (Medisave, Medishield and Medifund) system.
Lastly, the government has to keep the healthcare costs down by controlling the supply side of
the healthcare services and providing heavy subsidies at public healthcare institutions.
There are three main regulators in the system:
1. Minister of Health (MOH) - MOH oversees the provision and regulation of healthcare
services.
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2. Central Provident Fund (CPF) - CPF is a comprehensive and compulsory social
security savings plan
3. Monetary Authority of Singapore (MAS) - MAS, as Singapore‟s central bank,
regulates the financial aspect of insurance sector.
7.5 ROLE OF THE HEALTHCARE SECTOR IN SINGAPORE ECONOMY
The healthcare providers sector is valued as total expenditure on healthcare in each country. This includes
final consumption spending on healthcare goods and services.
The Singaporean healthcare providers sector generated total revenue of $7.6 billion in 2011,
representing a compound annual growth rate (CAGR) of 12.7% between 2007 and 2011.
The outpatient care segment generated most lucrative in 2011, with total revenue of $2.7 billion,
equivalent to 35% of the sector's overall value.
The performance of the sector is forecast to decelerate, with an anticipated CAGR of 8.1% for the
five-year period 2012 - 2016, which is expected to drive the sector to a value of $11.3 billion by
the end of 2016.
Source - http://www.marketresearch.com/MarketLine-v3883/Healthcare-Providers-Singapore-6854978
7.6 STRUCTURE OF THE HEALTH CARE SYSTEM:
In Singapore, there is a dual system of health care delivery. Patients are free to choose the
providers within the dual health care delivery system for the primary health care services, 80% is
provided by the private practitioners in the some 1,900 private medical clinics, while the
remaining 20% is provided through the 17 government polyclinics. For the more costly hospital
care, it is the reverse situation with 80% of the hospital care being provided by the public sector
(where the 29 hospitals and specialty centers with between 180 to 3110 beds.This public sector
hospital care is organized into two vertically integrated delivery networks, health care providers).
The National Healthcare Group and Singapore Health Services, to enable more integrated and
better quality healthcare services ( through greater co-operation and collaboration among public
sector remaining 20% is provided by the private sector (with 16 private hospitals which are
generally smaller with bed complements between 10 to 500 beds).
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7.7. POLICIES AND NORMS OF SINGAPORE FOR HEALTHCARE
INDUSTRY FOR IMPORT AND EXPORT
a) Import Policies and Norms
• Up to 3l of alcohol allowance which include not more than 1l of spirit and combination
of up 2l of beer and wine (2L of wine and 1L of beer or 2L of beer and 1L of wine if not
brining any spirit). Alcohol coming from Malaysia is fully dutiable.
• Please Note! No free import of tobacco and only cigarettes marked SDPC can be
imported (see the Cigarettes Guidelines in Contact tab)
• Free Import of items (gifts, souvenirs, new item, food stuff) worth up to 300, -
Singapore Dollars allowance for over 18 years old and 100, - Singapore Dollars
allowance for minors.
Restricted
• Weapons and ammunition can be brought in only with permission from Singapore
Police Force.
• Pets and any type of foodstuff permissible only when agreed with Veterinary Authority
of - Singapore or contact the nearest Embassy.
• Telecommunication and Radio Communication Equipment is subject of approval from
The Infocom - Development Authority of Singapore.
• Video and audio recording equipment, and cartridges, films CDs and DVDs need to be
declared and maybe subject to a check. For more information contact Media
Development Authority.
• Medication – thoroughly documented, in original packaging and supplemented with
doctor‟s note or proper prescription. For further details please contact the nearest
Embassy or Consulate or Health Authority.
Source - http://singapore.visahq.com/customs/
7.8. COMPARATIVE POSITION OF SINGAPORE WITH INDIA
Singapore‟s health care facilities are comparable to that of any developed country. The
government has made significant investment in this sector, which is complemented by the private
sector. Eighty per cent of the hospital care services is provided by the public sector and
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remaining 20 per cent by the private sector. On the one hand, Singaporean hospitals can establish
their presence in the huge untapped Indian market and on the other, Indian hospitals can gain
from Singapore‟s technical and management expertise.
Both India and Singapore look upon regional FTAs (Free Trade Arrangements) and bilateral
FTA‟s as a complement to the multilateral trading system by ensuring compatibility of the FTAs
with rules laid down by the WTO.
Another distinguishing feature of India and Singapore‟s free trade accords is that while India has
focused only on liberalizing trade in goods, Singapore‟s trade accords go well beyond just
merchandise trade liberalization. The share of private sector has increased and it now accounts
for around 70 per cent of the total spending in this industry.
India has a comparative advantage in the supply of high-skilled doctors, paramedical staff and
nurses at competitive prices.
Although there is significant shortage of doctors in Singapore, the country has imposed
significant entry barriers.
Source - http://www.medical-tourism-india.com/medical_tourism_articles.htm
7.9 PRESENT POSITION & TREND OF BUSINESS
a) Import & export with India
The Indian market for medical equipment and supplies estimated at US$2.7 billion has been
ranked among the world‟s top in 2011. Out of the total market size of India, more than 85%
equipment is imported from other countries. The Indian companies with strong domestic
presence in this sector include Medived innovations, Opto Circuits, Trivitron Healthcare etc.
Healthcare providers in India plan to spend Rs 5,700 crore (US$ 1.05 billion) on IT products
and services in 2013, a 7 per cent rise over 2012 revenues worth Rs 5,300 crore (US$
981.50 million), according to a report by Gartner. It is expected to grow to 3.9 per cent to
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reach Rs 1,720 crore (US$ 318.52 million) in 2013, with most of this growth coming from
enterprise communication equipment.
Source- http://www.kpmg.com/IN/en/WhatWeDo/Industries/Documents/IM/Indian%20Pharma%20Outlook.pdf
7.10.INDIA’S IMPORTS FROM SINGAPORE
India‟s main imports from Singapore include electronic goods, non-electrical machinery, organic
chemicals, project goods, transport equipment, artificial resins and professional instruments
(non-electronic).
Table: Period-wise growth in export, import and trade between India and Singapore
Period Export Import Trade
a)1993 to 1996 21.4 percent 10.5 percent 13.7 percent
b) 1998 to 2001 3.5 percent 4.7 percent 2.5 percent
c) 2003 to 2010 46.1 percent 34.4 percent 38.7 percent
Singapore's total trade in 2000 amounted to S$373 billion, an increase of 21% from 1999.
Despite its small size, Singapore is currently the fifteenth-largest trading partner of the United
States.
In 2010, Singapore's imports totaled $135 billion, and exports totaled $138 billion.. Singapore's
principal exports are petroleum products, food/beverages, chemicals, textile/garments, electronic
components, telecommunication apparatus, and transport equipment.
Singapore's main imports are aircraft, crude oil and petroleum products, electronic components,
radio and television receivers/parts, motor vehicles, chemicals, food/beverages, iron/steel, and
textile yarns/fabrics.
Source - http://en.wikipedia.org/wiki/Economy_of_Singapore
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7.11.PRESENT TRADE, BARRIER FOR IMPORT AND EXPORT OF
SELECTED GOODS
a) IMPORT TARIFFS
Singapore is generally a free port and an open economy. More than 99% of all imports
into Singapore enter the country duty-free. For social and/or environmental reasons,
Singapore levies high excise taxes on beer, wine and liquor, tobacco products, motor
vehicles and petroleum products.
Singapore levies a 7% Goods and Services Tax (GST). For dutiable goods, the taxable
value for GST is calculated based on the CIF (Cost, Insurance and Freight) value plus all
duties and other charges. In the case of non-dutiable foods, GST will be based on the CIF
value plus any commission and other incidental charges whether or not shown on the
invoice. If the goods are dutiable, the GST will be collected simultaneously with the
duties. Special provisions pertain to goods stored in licensed warehouses and free trade
zones.
Source - http://www.iras.gov.sg&http://www.customs.gov.sg
b) TRADE BARRIERS
Singapore maintains one of the most liberal trading regimes in the world, but U.S.
companies face several trade barriers. Services barriers include sectors such as pay TV,
basic telecommunications, audiovisual and media services, legal services, banking and
education. Singapore also maintains a tiered motorcycle operator licensing system based
on engine displacement, which, along with a road tax based on engine size, places U.S.
exports of large motorcycles at a competitive disadvantage.
The Indian healthcare industry, unlike other industries, stands untouched by recession.
There had been a steady growth in this sector, revenues from the healthcare sector
accounts for 5.2% of the GDP, making it the third largest growing sector in India, and
further the healthcare sector is projected to grow to nearly 1,80,000 crores by year 2012
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and a compounded annual growth rate (CAGR) of 15-17 percent for at least the next 7 10
years.
Source - http://singapore.usembassy.gov/uploads/images/LvTBWW52BFjFKpWqaYvtoQ/ForeignTradeBarriers
7.12.POTENTIAL FOR IMPORT AND EXPORT IN INDIAN MARKET
Indian healthcare industry is showing tremendous growth in recent times with rapidly increasing
population, rise in life expectancy, awareness regarding health & wellness and a shoot up in
lifestyle related ailments such as diabetes, cardiovascular disorders, stress etc.
However, despite significant growth, India‟s healthcare sector falls well below international
benchmark for infrastructure, insurance & manpower. Issue related to accessibility &
affordability of medicines has also increased drastically in recent times.
Given the growing demand for quality healthcare, emergence of reputed private players, and the
huge investment needs in the healthcare sector in recent years, there has been growing interest
among foreign players to enter the Indian healthcare market. Indian healthcare industry provides
tremendous opportunities for international partners.
Also, Indian organizations benefit a lot from international tie-up, as it brings with it an increasing
brand value, credibility, investment in infrastructure & technology and several other benefits.
The funds acquired through foreign investments are diverted towards developing infrastructure,
equipment procurement or expansion projects. Also, FDI can have significant effect on service &
procedure, cost of service, manpower and quality of healthcare delivery.
Impact of foreign investment on Indian hospitals & healthcare facilities
Infrastructure development
Investment in technology
Increased availability of high-end and niche procedures
Improved systems & processes
Integration of information technology in healthcare delivery
Increased employment opportunities
Greater emphasis on medical research and training
Opportunities for knowledge transfer due to tie ups with overseas hospitals and
collaborative ventures
Source - http://www.drprem.com/dr-prem-blog/partnering-with-international-healthcare-organization-an-upc.html
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7.13.BUSINESS OPPORTUNITIES IN INDIA
The Indian healthcare sector is estimated to reach US$ 100 billion by 2015, growing 20 per cent
year-on-year (y-o-y), as per rating agency Fitch. The industry is expected to touch US$ 280
billion by 2020, on the back of increasing demand for specialized and quality healthcare
facilities. India is the most competitive destination with advantages of lower cost and
sophisticated treatments, highlighted the RNCOS report titled 'Indian Healthcare - New Avenues
for Growth'. The report further elaborates that several key trends are backing the growth of
India's healthcare sector. "India is a very important market for many reasons. The government
continues to invest in healthcare. We see that healthcare is expanding across the country. There
is a growth opportunity and we continue to invest very much in India. There is so much
innovation in India," highlighted Mr. Adam H Schechter, Executive Vice President and
President, Global Human Health Division, Merck.
7.14.MEDICAL TOURISM
Medical tourism industry is pegged at US$ 1 billion per annum, growing at around 18 per cent
and is expected to touch US$ 2 billion by 2015.
"Medical tourism is an important segment because it allows most hospitals to charge a premium
of around 20-25 per cent over what it does to local patients," as per Mr Rana Mehta, Executive
Director, Leader - Healthcare Practice, PricewaterhouseCoopers (PwC).
India attracts patients mostly from Africa, CIS countries, Gulf and SAARC nations, Pakistan,
Bangladesh and Myanmar, who come mainly for organ transplant, treatment of orthopedic,
cardiac and oncology problems.
7.15. GOVERNMENT INITIATIVES
The Government of India has decided to increase health expenditure to 2.5 per cent of gross
domestic product (GDP) by the end of the Twelfth Five Year Plan (2012-17), from the existing
1.4 per cent. Dr Manmohan Singh, the Prime Minister of India, also emphasised the need for
increased outlay to health sector during the Twelfth Five Year Plan.
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Some highlights of the Union Budget 2013-14 presented by Mr P Chidambaram, Minister of
Finance, Government of India, for the healthcare are as follows:
Health for all remains one of the priority sectors for the Government
The Ministry of Health & Family Welfare has been allocated Rs 37,330 crore (US$ 6.91
billion). Of this, the new National Health Mission that combines the rural mission and the
proposed urban mission will get `21,239 crore, an increase of 24.3 per cent over the RE
New National Health Mission will receive an allocation worth Rs 21,239 crore (US$ 3.93
billion)
Rs 4,727 crore (US$ 875.37 million) has been allocated for medical education, training
and research
The National Programme for the Health Care of Elderly is being implemented in 100
selected districts of 21 States. Eight regional geriatric centres are being funded for the
development of dedicated geriatric departments. A sum of Rs 150 crore (US$ 27.78
million) has been provided for National Programme for the Health Care of Elderly
Ayurveda, Unani, Siddha and Homoeopathy are being mainstreamed through the
National Health Mission and Rs 1,069 crore (US$ 197.96 million) has been allocated to
the Department of AYUSH
Moreover, Rs 1,650 crore (US$ 305.56 million) was allocated for six AIIMS-like
institutions
Furthermore, 100 per cent FDI is permitted for health and medical services under the automatic
route.
Source - http://www.ibef.org/industry/healthcare-india.aspx
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8. SINGAPORE LOGISTIC INDUSTRY
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8.1 THE GLOBAL LOGISTICS INDUSTRY
Logistics (comprising air, sea and land transport) is a sizeable growth market worldwide. Valued
at around US$320 billion per year, the industry is growing at an annual rate of 3-10%. Over the
years, the industry has evolved in sophistication, with service offerings ranging from individual
transport and storage solutions to customized, integrated supply chain management services. As
the pace of outsourcing gathers momentum, this industry is likely to enjoy continued growth,
especially by supply chain management and other value-added or specialist services.[44]
8.2 SWOT ANALYSIS OF SINGAPORE’S TRANSPORT & LOGISTICS INDUSTRY
Table on SWOT Analysis of Logistic Sector
Strength Weakness
Strong physical infrastructure. Relatively high costs of operation
(especially land rental and wages)
Good connectivity to major trading hubs and
manufacturing bases (by both air and sea).
Small geographic space and domestic market
Major shippers and logistics service providers
have their regional headquarters and offices in
Singapore.
Industry is fragmented and lacks scale, with
very few global players with global aspirations
Stable political, economic and social
conditions
Instances of lack of a logistics cluster /
ecosystem
An educated workforce. Lack of responsiveness to customers‟ needs
A strong legal system and business- friendly
tax structure
Shortage of skilled, experienced and
entrepreneurial logistics professionals
Government is pro-active in opening doors for
businesses through bilateral and multilateral
initiatives e.g. FTAs.
Inadequate technological capabilities to carry
out a wide range of SCM activities.
Weak marketing of Singapore as a logistics /
supply chain hub
Lack of collaboration between different players
of the supply chain
OPPORTUNITIES THREATS
Strong growth potential for
logisticsoutsourcing in Asia (US$80b by
2012).
Relocation of manufacturing and distribution
bases to other regional hubs (e.g. China)
Specialized capabilities, dovetailing withother
sector expansion plans (e.g. bio medics and
Other governments are aggressively improving
their logistics infrastructure and marketing
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chemicals).
themselves as logistics hubs, giving rise to
intense competition
Leverage on Singapore‟s goodconnectivity to
the Asia Pacific region to provide total supply
chain management services to shippers i.e.
expandhinterland, especially to China
(expected to have annual growth rate of 7.4%).
Technological advances such as the increase in
size of ocean liners and jetliners may result in
vessel / aircraft operators bypassing Singapore
if thetrade route becomes too „thin‟
Tap on offshore trade conducted bySingapore-
based trading companies, which is estimated at
US$120b
Establish a reputation as a securelogistics hub
Source:http://www.mti.gov.sg/ResearchRoom/Documents/app.mti.gov.sg/data/pages/507/doc/ERC_
SVS_LOG_MainReport.pdf
8.3 SINGAPORE LEADING LOGISTIC HUB
(a) Global integrated logistics hub: Nerve / brain Centre controlling and managing
activities and assets of global supply chains across an expanded hinterland. SCM
capabilities and technologies are the integrators linking the 3 pillars of maritime, aviation,
and land transport.
(b) Maritime: An international maritime Centre attracting shipping company by providing
all-round services and facilities for ship management and operations.
(c) Aviation: A regional aviation hub with high connectivity and capacity and state-of-
the-art logistics and support facilities.
(d) Land Transport: Superior warehousing and distribution capabilities that are tightly
integrated with customers, aviation and maritime facilities.
The vision rides on 3 key enablers:
(a) Political, economic and regulatory stability/predictability;
(b) Excellent physical, IT, and financial infrastructure; and
(c) Critical mass of logistics professionals with strong customer orientation.[44]‟
8.4 PHYSICAL & VIRTUAL HUB
Encapsulated in the vision statement is the need to leverage on Singapore‟s strong physical hub
capabilities and integrate these with knowledge-intensive SCM skills and technologies to build a
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strong physical cum virtual hub. The presence of leading logistics companies together with
related / supporting activities forming a tightly interlinked network / cluster, are essential in
making Singapore a robust and integrated logistics hub.[44]
8.4.1 Physical Hub
Singapore has always been a flourishing entrecote center and a strong contender in the
global logistics scene. Our air and sea ports are highly efficient, reliable, and possess extensive
linkages to all parts of the world.This infrastructural excellence enables us to move goods of a
wide variety at a high speed to all corners of the globe. Singapore‟s track record in
physicalgoods handling is indisputable. The ports and supporting industry make asignificant
contribution to Singapore‟s GDP and employment. It is thereforevital to maintain our leading
hub port position.[44]
Singapore is a promising geographical location. A population of 3 billion (people) is
settled within a time radius of 7 hours flight, the infrastructure is rated as one of the worlds‟
best and even the worlds‟ biggest container port is based in this country. This makes Singapore
to the most important ASEAN partner of Germany. This country is also a favorite destination for
multinational corporations (MNCs) to establish regional distribution centers. Singapore's
strategic location, world class infrastructure and excellent connectivity have made this place a
compelling global logistics hub and supply chain management (SCM) nerve center. [44]
With the rise of competition from neighboring ports, we must continue to build on our
strengths and drive out unnecessary impediments that reduce Singapore‟s attractiveness as a hub
port and compromise expeditious cargo flow. To this end, the WGL proposes that the
government:
(a) Review and manage costs, especially when these are not matched by productivity
increases. The WGL proposes a review of, inter alia,trade declaration charges, extension
of seaport dues concessions toall vessels, and review of land premiums and tenure for
logistics operations.
(b) Review policies that unnecessarily hinder the operations of logistics businesses. The
government should, for instance, extend the Free Trade Zone concept from designated
locations to in-companypremises. Greater flexibility to employ foreign workers should
begiven to logistics service providers. For example, with logisticscompanies undertaking
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more upstream manufacturing activities (e.g.light assembly), it is increasingly anomalous
to subject it to a lowerforeign worker quota than manufacturing.[44]
8.4.2 Virtual Hub
The emerging competition from countries in the region has demonstrated that, with
advances in technology, physical excellence may be achieved within a compressed period of
time. In other words, physical excellence has been relegated to a necessary but insufficient
condition for countries to become a logistics hub. Hence, for the next lap of development,
Singapore will have to find additional sources of growth. We see this coming from specialized
value-added SCM and supporting services catering to theneeds of a broader hinterland beyond
Singapore. The transport and logistics business is rapidly evolving such that the highest value is
no longer found in moving the cargo, but in controlling and optimizing the flow of the cargo via
information management [44]
The industry also needs to explore opportunities beyond Singapore; to create a hinterland.
As a start, Singapore transport and logistics companiescan tap on opportunities in countries
within a 7-hour flight radius. This wouldcover the 2 largest emerging markets, China and India,
as well as developing and developed markets such as Vietnam, Thailand, Australia and Japan.
While each market requires a different strategy, ultimately, if successful, Singapore-based
transport and logistics companies will be able to extend their reach to diversified markets,
thereby leveraging on the individual strengths and potentials of these countries.[44]
With a broader hinterland offering more opportunities and a bigger market, we propose
that Singapore positions itself as a virtual logistics hub possessing the knowledge and skills to
manage and control the information, process and payment flows across supply chains which cut
across the region, or even the world. Hence, beyond actual handling of goods, Singapore can be
the brain controlling the logistics limbs (planning & control functions) extending beyond
Singapore.[44]
8.5 ECONOMIC STRUCTURE OF THE INDUSTRY
• Logistics contribution to GDP in 2007: 9.4% (transport & storage)
• Total trade volume increased from S$ 810bn in 2006 to S$ 847bn in 2007, which is a
4.5% growth within one year
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• Network of free trade agreements with major economies of the world (AFTA, EFTA,
USA, China, Japan, South-Korea, Australia, New Zealand, Panama, India, Jordan etc.)
• Singapore has a presence of some 3000 logistics and supply chain management
companies operating, like DHL, FedEx, UPS, TNT etc.
• The world‟s busiest port with largest container transshipment hub and top bunkering;
excellent network of 250 shipping lines with connections to 600 ports in 123 countries
• Singapore Changi Airport ranked as one of the best airports in the world and one of
Asia‟s largest cargo airports: 83 scheduled airlines with more than 4000 flights per week
• Asia‟s leading logistics education and research institute is based in Singapore
Singapore's dynamic logistics industry and solid infrastructure are attributable to the
various locations dedicated to the augmentation of connectivity and efficiency, such as
the Airport Logistics Park of Singapore (ALPS) in the airport free-trade zone, the Banyan
LogisPark, and Changi International LogisPark.[45]
8.5.1 Outlook and trends
PSA Singapore Terminal is the flagship terminal of PSA International, one of the leading
global port groups, with investments in 28 port projects in 16 countries across Asia,
Europe and the Americas. In 2007, the Singapore Terminals handled 27.1 million TEUs
of containers while the group's global throughput was 58.9 million TEUs. PSA Singapore
Terminals is the world's busiest transshipment hub, handling about one fifth of the
world's total container transshipment throughput, and 6% of global container throughput.
It is also one of the world's largest refrigerated container (reefer) ports with over 5,000
reefer points, handling more than a million reefers in 2007. It was voted the "Best
Container Terminal Operator (Asia) for the 18th time at the 2007 Asian Freight & Supply
Chain Awards, and "Container Terminal Operator of the Year" at the Lloyd's List Asia
Awards, for the 7th time.Ensuring Navigational Safety and Maritime Security with about
400 vessels calling in Singapore daily and 800 vessels in our port waters at any one time,
it is especially crucial that navigational safety is never compromised. Singapore
continuously invests heavily in sophisticated systems to monitor every vessel movement
in its waters, including the Port Operations Control Centres (POCCs) and Vessel Traffic
Information System or VTIS.[45]
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The Singapore Institute of Manufacturing Technology (SIMTech) is collaborating with
small- and medium-sized enterprises to research and develop solutions that can help them
implement smart, robust, and efficient techniques in their logistics operations. The
SIMTech Logistics initiative group focuses on solving demand-responsive problems
prevalent in integrated manufacturing and logistics systems. The researchers have
successfully developed several solutions using technologies that collate real-time
information from dissimilar sources and merge it with intelligent predictive algorithms.[46]
The software development for time-critical manufacturing and transportation applications.
In this project, a team at SIMTech has created a metaheuristics-based dynamic demand-
responsive integrated manufacturing and transportation planning-and-execution system
that integrates with advanced geographic information systems/global positioning systems.
The system features include real-time manufacturing and transportation process-
responsive change, constraints and conditional changes, real-time transportation planning,
real-time vehicle-routing guidance and expediting, and best vehicle routing with real-time
updating. Metaheuristics are general combinatorial optimization techniques, designed with
the aim of being flexible enough to handle as many different combinatorial problems as
possible. In theory, while metaheuristics can handle any combinatorial optimization
problem, effort has to be made to adapt the general ingredients of these methods to the
particular solution. In this project, SIMTech studies core techniques of metaheuristics such
as Simulated Annealing, Tabu Search, Evolutionary Algorithms, Ant Colony
Optimization, and Artificial Immune Systems. These technologies are applied in the
manufacturing and transportation sectors.[46]
Key benefits from such a system include (1) reduced total manufacturing and
transportation time and cost, (2) real-time dynamic demand-responsiveness to changes
from customers, manufacturing processes, and transportation activities, (3) enhanced
customer service levels, and (4) increased return of assets.[46]
8.5.2 Special Focus on Logistic and supply chain
Logistics is concerned with the movement of goods both at the strategic and operational
levels and is an important economic growth area in Singapore. It was reported by the
International Enterprise that recent logistics activities in Singapore has contributed to about 8
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per cent of Singapore’s GDP, and provides jobs for more than 70,000 people. Furthermore,
the Economic Development Board sets a vision for Singapore to be a Premier Integrated
Transport &Logistics Hub with leading edge capabilities in terminal facilities and logistics
management competency over the next decade. [47]
Image 1 Air Cargo Terminal Operation
Source:. http://www.eng.nus.edu.sg/EResnews/0306/sf/sf_1.html
Currently, Singapore has an extensive air and sea network. The Port of Singapore has been
ranked the second busiest container port in the world while Changi Airport is internationally
acclaimed as one of the leading airports. Over 5,000 world-class multinational companies
(MNCs) have established operations in Singapore and a number of them have outsourced their
regional logistics operations to both the home-grown and foreign logistics specialists. One of the
biggest challenges in the logistics industry is attaining a fully integrated logistics system, which
is seamless across the supply chain elements and optimized with regard to cost, cycle time and
reliability. Logistics activities in Singapore have contributed to about 8 per cent of Singapore‟s
GDP, and provides jobs for more than 70,000 people. The Systems Engineering Group of the
Department of Industrial &System Engineering (ISE) has been active in logistics research.
Faculty members of this research group work closely with logistic industries in order to
understand and assist them to improve their operations. Moreover, they also actively participate
in the activities and programs of The Logistic Institute -Asia Pacific (TLI-AP), a collaborative
partnership between the National University of Singapore and the Georgia Institute of
Technology. Recently, a research grant of $2.9 million has been awarded to ISE/TLI-AP by the
Agency for Science, Technology and Research (A*STAR) to carry out research into the Air
Cargo Logistics and Supply Chain. Besides the air cargo research, the research group ‟s interests
also include sea cargo logistics, manufacturing logistics and supply chain systems. The final
objective is to develop methodologies and decision tools which incorporate complex interactions
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between different logistics function so as to improve the effectiveness and efficiency of the
whole systems.[47]
8.5.3 Logistics sector will play a greater role for an economically integrated ASEAN
To facilitate collaboration between the ASEAN business community and the ASEAN
governments, the Singapore Business Federation (SBF) organised its annual seminar on ASEAN
Economic Community (AEC) 2015 today with focus on the logistics sector. The SBF seminar
featured discussion on the challenges in the logistics sector faced by businesses in Singapore and
the region as ASEAN gears up towards the AEC 2015.[48]
Key industry experts in the logistics sector provided participants with insights on the
supply chain integration, cross-border & multi-modal transport, behind-the-border market
barriers, trades and customs facilitation. Some 50 participants representing businesses mainly
from the logistics industry were apprised on ASEAN competitiveness as well as the advantages
and challenges to be derived from ASEAN logistics integration as ASEAN moves towards the
ASEAN Economic Community by 2015.[48]
Chairman, ASEAN Business Advisory Council Singapore, as well as SBF Council
Member and ASEAN Business Group Chairman, Dr Robert Yap, noted that "the business
community of ASEAN hails the move to implement the ASEAN Connectivity Master plan as
very timely as ASEAN approaches the target date of 2015 for the achievement of the AEC. Too
often, the ASEAN plans and signed agreements have not been implemented according to the
respective timelines. Consequently, business plans are difficult to follow through and are subject
to various changes along the way ... it is therefore heartening to know that the ASEAN
Governments recognize that our region can no longer continue with business as usual. “Dr. Yap
is also the Chairman and CEO of YCH Group.[48]
Other speakers at the seminar were Mr. Dave Tan, Executive Director, Regional Office,
and Conference of Asia Pacific Express Carriers (CAPEC), who briefed the businessmen on
ASEAN Connectivity- Impact of ASEAN Economic Community on logistics of doing business
in ASEAN. Mr. KohJuayMeng, Managing Director, HITS Pte Ltd and President, Supply Chain
Council, South East Asia, presented on the challenges for Singapore enterprises in liberalisation
of ASEAN logistics sector. Presenting on the Ease of doing business in ASEAN - trade and
customs facilitation issues was Mr Lee Tiow Yong, Assistant Director-General (Policy &
Planning), Singapore Customs, while Asst. Prof Wong MarnHeong, Lee Kuan Yew School of
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Public Policy, National University of Singapore, covered ASEAN competitiveness - perspectives
from Singapore & ASEAN business.[48]
SBF's members in ASEAN-BAC serve to provide the connectivity between Singapore
business and the ASEAN Governments on issues pertaining to the goals of regional economic
integration.[48]
Mr. Kenneth Wong, Logistics Manager of Amos International (S) Pte Ltd, an SBF
company member, said "We look forward to the successful implementation of the ASEAN
Logistics roadmap. In a globalised economy like ours, our customers expect reliable services at
competitive prices. We do a lot of import and export of our customers' cargo and spares within
ASEAN. We place high emphasis in providing superior services and exceeding our customers'
expectations. Therefore, it is important as a business entity that we do not lose competitiveness
in terms of cost, time and reliability due to inefficiencies in cross-border documentary
procedures or institutional rules and regulations. If the roadmap can iron out these issues, we will
definitely see an improvement in our bottom-line and most importantly raise our competitiveness
and value-add to our clients. At the macro level, it will certainly benefit all related companies
throughout the supply chain in the ASEAN region."[48]
Mr Stanley Lim, General Manager, Seagull Marine Services Pte Ltd, said, "As Singapore
is a leader in logistics amongst ASEAN countries, the Logistics Roadmap will greatly facilitate
Singapore in assisting the development of fellow ASEAN countries."[48]
During the recent ASEAN Summit held in Hanoi on Oct 2010, the ASEAN Leaders
approved the ASEAN Connectivity Master plan which signifies ASEAN's plans to deepen
economic cooperation into practical effect. Envisaged to link up the 600 million people of
ASEAN through a network of physical infrastructure and trade agreements by 2015, the Master
plan will also include links in the fields of culture and education to reach the ASEAN market.[48]
ASEAN Connectivity entails physical connectivity (hard infrastructure, e.g.,
transportation, logistics facilities); people-to-people connectivity (tourism, education, culture);
institutional connectivity (soft infrastructure, e.g, trade and investment facilitation, ASEAN
Single Window (ASW), services liberalization, capacity-building programmes). The overall aim
is to improve the flow of goods, services, investments, labour, and capital across ASEAN
borders.[48]
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Enhanced ASEAN connectivity serves to achieve competitive growth; facilitate
economies of agglomeration and integrated production networks; enhance intra-regional trade;
attract more investments; promote deeper ties among ASEAN citizens; foster stronger sense of
shared cultural and historical links.[48]
ASEAN Master Plan on Connectivity involves sectoral bodies in the areas of ICT,
Transport, Tourism, Energy, etc. There are initiatives for sub-regional and national infrastructure
networks and other connectivity-related strategies. Enhanced East Asia Connectivity linked to
key global markets involves cooperation, coordination and partnership with Dialogue Partners
and external parties in expanding connectivity beyond ASEAN; such linkages would be deal
with global norms, trends and regulations affecting connectivity.[48]
The ASEAN logistics roadmap comprises key areas such as market access including
behind-the-borders barriers; trade and customs facilitation; cross-border and multimodal
transport; public-private partnership.[48]
Singapore's value of intra-ASEAN trade reached US$140,694 million in 2009, with its
ASEAN trade to total trade registering 27.3 per cent.[48]
Total ASEAN trade reached US$1.7 trillion in 2008, with intra-ASEAN trade amounting
to US$458 billion. Total ASEAN trade grew by around 6%, with intra-ASEAN trade
maintaining a constant share of around 25 % until 2008 when it reaches 26.8% due to the much
slower growth of extra-ASEAN trade.[48]
8.5.4 About ASEAN Economic Community (AEC)
ASEAN Economic Community (AEC) Blueprint was signed in November 2007 to transform
ASEAN into a single market and production base by 2015. The aim is to achieve free movement
of goods, services, investment, skilled labour and freer flow of capital within a pro-business
environment. The ASEAN Charter was ratified by all ASEAN countries by December 2008,
marking a milestone in giving ASEAN the legal basis to implement its various agreements.[24]
Under AEC, Strategic Plan of Customs Development is to: integrate customs
structuresmodernize customs techniques, guided by simple and harmonized customs procedures
and formalities through the implementation of regional models of processing of cargoes and
shipments (ASEAN Cargo Processing Model and ASEAN Customs Declaration Document in
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2007) as committed; establish ASEAN Customs Transit System to facilitate movement of goods
and means of transport; establish ASEAN Customs systems deal with special customs regimes
such as Temporary Admission, Outward Processing and Inward Processing with the view to
facilitate integration of production and supply chains;modernize tariff classification, customs
valuation and origin determination and establish ASEAN e-Customs;adopt international
standards and practices to secure a uniform system of tariff classification, a synchronized system
of value assessment for customs purposes and a harmonized system of origin determination
(origin conferring), and information exchange, where possible;[48]
-- Smoothen customs clearance;
-- strengthen human resources development;
-- implement ASEAN e-Customs;
-- promote mutual assistance for better customs efficiency and effectiveness.
8.5.5 ASEAN Customs Vision 2020
Over recent years, ASEAN customs co-operation has been gradually intensifying and the
integration of customs systems within the region is a key element in the ASEAN Customs Vision
2020. The 2005 - 2010 ASEAN Strategic Plan for Customs Development (SPCD) sets out the
concrete issues to be addressed. [48]
One of the core components of the SPCD is the implementation of an ASEAN Customs
Transit System (ACTS) that will put into place the most efficient environment possible for the
movement of goods and means of transport across national borders.[48]
8.5.6 Comparative Position of logistic sector with India
Singapore is the 14th
largest exporter and the 15th
largest importer in the
world. Historically, international trade has strongly influenced the economy. According to the
WTO, Singapore has the highest trade to GDP ratio in the world at 407.9 percent. Due to its
geostrategic location and developed port facilities, a large volume of Singapore's merchandise
exports involve entrepôt trade – with 47 percent of exports consisting of re-exports.[49]
As a strong advocate of free trade, Singapore has relatively few trade barriers. Trade
partners with Most Favoured Nation (MFN) have zero tariff rates applied to their products apart
from six lines for alcoholic beverages. There are however some import restrictions based mainly
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on environmental, health, and public security concerns. The import of rice also requires import
licensing in order to ensure food security and price stability.[49]
Due to its relatively small domestic market, Singapore’s trade policy is often aligned
with that of external agencies. In the international arena, Singapore‟s principal priority lies
with the WTO and the Doha Development Agenda. Singapore is also a member of numerous
regional free trade agreements (FTAs) including the ASEAN Free Trade Area (AFTA), the
ASEAN-Australia-New Zealand FTA (AANZFTA), the ASEAN-China FTA (ACFTA), the
ASEAN-India FTA (AIFTA), the ASEAN-Japan Comprehension Economic Partner (AJCEP),
and the ASEAN-Korea FTA (AKFTA). Other multilateral agreements include the Singapore-
Europe Free Trade Association FTA (ESFTA – Switzerland, Liechtenstein, Norway and
Iceland), the Gulf Cooperation Council-Singapore FTA (GSFTA – Bahrain, Kuwait, Oman,
Qatar, Saudi Arabia, and the United Arab Emirates), and the Trans-Pacific Strategic Economic
Partnership (TPFTA – Brunei, Chile and New Zealand). Finally, Singapore also maintains
bilateral free trade agreements with Australia (Singapore-Australia FTA), China (China-
Singapore FTA), Jordan (Singapore-Jordan FTA), India (India-Singapore Comprehensive
Economic Cooperation Agreement), Japan (Japan-Singapore Economic Partnership Agreement),
Korea (Korea-Singapore FTA), New Zealand (Agreement between New Zealand and Singapore
on a Closer Economic Partnership), Panama (Panama-Singapore FTA), Peru (Peru-Singapore
FTA) and the US (US-Singapore FTA).[49]
Singapore‟s Import and Export Indicators and Statistics at a Glance (2010)
Total value of exports: US$351.2 billion
Primary exports - commodities: machinery and equipment (including electronics),
consumer goods, pharmaceuticals and other chemicals, mineral fuels
Primary exports partners: Hong Kong (11.6 percent of total exports), Malaysia (11.5
percent), US (11.2 percent), Indonesia (9.7 percent), China (9.7 percent), Japan (4.6 percent).
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CONCLUSION
IT Sector: As Singapore is the third largest in IT sector in the world Singapore has latest
technology in IT which can contribute in its progress To start the new business in IT sector
Singapore is the best place to do it. Gujarat also contributes high in IT sector in India‟s growth.
Gujarat also has latest technologies which can be used by other countries for their development.
Good infrastructure & supportive political environment also helps to grow business. The culture
of Singapore is also good for starting new businesses like IT, Electronics etc. Small and medium
Enterprises are playing key role in Singapore IT sector. About 76 % of the businesses of
Singapore are using the IT facilities For youngsters getting job in IT sector Singapore is the best
place.
Pharmaceutical industry: It is certainly one that is looked upon very favorably by the
government. To this end, a number of incentives have been provided to encourage the
multinational players to set up shop in Singapore. The steps taken have been working, but the
industry is still a young one and more will definitely be done. The Pharmaceutical industry in
Singapore is a growing one and one which has a considerable amount of government backing.
This global country study report of Singapore shows the positive factors to initiate the business
in Pharmaceutical sector. This positive factor includes infrastructure, availability of highly
skilled manpower, business supportive legal framework, trade alliance (FTA) one of the
important thing is that the Pharmaceutical sector helps in the growth of the GDP of the Singapore
to the large extent that is it has state of the art facility. And the government also supports the
activity to a largely.
Aviation Industry: The airline industry is undergoing profound changes. Shrinking profits,
rising fuel costs, government regulations and increasing competition will make survival difficult.
One can expect a total shakeout of some key players. The rise of the budget airlines has made
life very difficult for some players.
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The present very profound regulatory constraints call for some changes to a traditional growth
strategy which some players may be able to pursue. This is because a traditional growth strategy
is difficult to achieve in the airline industry. Instead, airlines with a future outlook will be
expected to concentrate on key issues like formation of strategic alliances, network
maximization, creating more hubs or entry points and so on.
Chemical Sector: here by we have learned various aspects of International Trade, like Impact of
Economic Variables on International Business, Strategic Alliance for Chemical advancement,
and Legal Framework for Business etc.
This Global Country study report of Singapore shows the positive factors to initiate the Business
in chemical Sector. This Positive Factor Includes infrastructure, availability of highly Skilled
Manpower, Business supportive Legal Framework, Trade alliance (FTA) One of the important
thing is that the chemical sector helps in the growth of the GDP of the Singapore to the large
extent that is it has state of the art facility. And the government also supports the activity to a
large extent.
Logistic Sector: Singapore is non-corrupt Country, So that is most important as logistic sector
and also various policies are there for starting trading and Tax Structure important for
incorporate business, Logistic Service is very fast growing sector in Singapore as well as in
India. Logistic Trade between India and Singapore, last decade India and Singapore Bilateral
trade, License agreement and Import Export is growing on. Association, Import Export,
Licensing procedure and Tax Structure, Cargo booking, Container booking and Transportation
services are major contribution in GDP of Singapore and important role for this Country.
Healthcare Sector: Singapore government encourages foreign firms to start their business here
and this is to maintain the direct investment flow. International Enterprise (IE Singapore) - Helps
foreign firms and investors. Economic Development Board – Lays down policies for business
and extends support for business and workforce development to strengthen their economy.
Standard, Productivity and Innovation Board – Helps with financing of SMEs, management and
by giving access to sale. The country‟s Centre for Transfusion Medicine, internationally
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renowned for its high standards of blood safety practices and management of blood transfusion
services, is recognized as a WHO Collaborating Center.
Tourism sector: There politics environment and it has equal rules and regulations, which we
have to implement in our system, it also has advancement in technology which contributing in
development for various industries. Singapore has very reflective tax structure, guidelines and
policy. In addition, it has a good relationship with India. Our study shows the positive factors to
initiatives the Singapore tourism industries. These factors like infrastructure, availability of
highly skilled work force, business supportive legal framework.STB try to identify the
requirements of visitors and provide it. There are many opportunities accessible in Tourism
industries in India as well as Singapore so we can make future in it.
Banking Sector: The great learning from the country report and at what level the factors and
other factors affect for the growth of the economic and also what thing and how effective
management and planning require learnt from it. Singapore is such innovative and high-tech
country which making such great contribution in development of the country.
According to one report Total system loans growth of 10.4% YTD is largely in line with our
expectations. We maintain our preference for UOB over DBS and OCBC. We have presented a
more detailed outlook of the Singapore Banking Sector outlook in our report dated 21 Jan 2013.
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