SINGAPORE:

Introduction to Singapore and

the EDB

2

The Lead Agency that Plans and Executes

Economic and Industrial Development Strategies for Singapore

OUR GOAL Shaping Singapore’s Economic Future

OUR VISION A Global Leader

A Great City

A Home in Asia

For Business, Innovation and Talent

OUR MISSION We create for Singapore, sustainable economic growth with vibrant

business and good job opportunities

Attract Foreign

Investments

Grow Industry

Verticals

Enhance Biz

Environment

Singapore Economic Development Board

3

Singapore: Springboard to Asia

China

Australia

India

Japan

Myanmar

Malaysia

Thailand

Indonesia

Philippines

Vietnam

★Singapore

China: 1.3 bil pop

GDP(2006): US$2,680bil

SE Asia: 422 mil pop

GDP(2006): US$900bil

India: 1.1 bil pop

GDP(2006): US$890bil

Australasia: 25 mil pop

GDP(2006): US$850bil

• 1st in the World for Ease of Doing Business

Doing Business 2009-2010 Report, World Bank

• Best City in Asia to live in

Quality of Living Survey, Mercer, 2009

• Most Competitive Country in Asia and No. 5

Worldwide

Global Competitiveness Report, World

Economic Forum, 2008-2009

• Best Skilled Labour in Asia Pacific

EIU Business Environment Ranking 2008-2010

• World Leader in Foreign Trade & Investment

Doing Business 2010 Report, World Bank

• Best City Infrastructure in the World

Quality of Living Survey, Mercer, 2009

• 1st in the World for having the Best

Protection of Intellectual Property

Doing Business 2010 Report, World Bank

4

Vibrant global city: 4.99 million people with 1.25 million foreigners

Multicultural environment: English-speaking, 4 official languages

Quality of life: Safe and Green, Good schools, Entertainment options, Quality Healthcare

Technology enabled society: 131% mobile phone usage, 79% homes with computers, 70% adult Internet users

2011 GDP growth (est): 4.8% Source: Ministry of Trade and Industry Jan 2012

Exchange Rate: 1 USD = 1.36 SGD

22%

Manufacturing

14%

Business

Services

12% Financial

Services 16%

Transport &

Storage

Wholesale &

Retail Trade

9%

Construction 5%

Others

19%

2010 GDP:

S$303 billion (US$223 billion)

Information &

Communications 4%

Snapshot of the Singapore Economy

5

Major Industry Sectors

Electronics

Biomedical

Sciences Precision

Engineering

Transport

Engineering

Chemicals

Logistics

Education

Services

Healthcare

Services

Consumer

Businesses

Infocomms

& Media

Professional

Services

Digital

Media

Clean

Energy

Environ-

mental

Technologies

Bio-

technology

Energy

6

Global Business Hub

7,000 MNCs of which 60% have HQ functions

Source: IMD World

Competitiveness Yearbook 2010

Strong IPR Protection

Rank Country

1 Switzerland

2 Austria

3 Finland

4 Germany

5 Singapore

Ease of Doing Business

Rank Country

1 Singapore

2 New Zealand

3 Hong Kong, China

4 United States

5 United Kingdom

Source: Ease of Doing Business 2010,

World Bank

Best Seaport – Asia: Port of Singapore

Best Airport –Asia: Singapore Changi

Airport

Best Airport in the World: Singapore’s

Changi Airport,

Best Business Class and Best Economy

Class: Singapore Airlines

7

Launch Point for Asian Enterprises to

Internationalize

15,500 North America, Europe, Japan

3,200 China

4,400 India

>1,000 South Korea

7,900 ASEAN (excl. S’pore)

6,400 Australia, NZ & Rest of World

Of which

> 18,300 are from Asia

37,400

International

Companies

Source: Accounting and Corporate Regulatory Authority (ACRA), 2Q2010

8

Asia Pacific Control

Tower • Established in Singapore to

manage global distribution and

intellectual property, develop

content and produce animation.

•Asian Regional HQ

Multiple Businesses in Singapore Key Hub in Southeast

Asia and Oceania

• Overseeing Asian operations outside

Korea, including Oceania and South

East Asia

• To provide key management

supporting services such as human

resources, supply chain

management and brand marketing

• Houses over 400 staff in Singapore

at Samsung Hub to enhance brand

recognition and strengthen

marketing and business partnerships

• Product innovation team to design

products for Asian consumers

• CJ GLS Asia: Regional Headquarters

in Singapore to cover the entire

spectrum of logistics and supply chain

management services.

• CJ Entertainment: Announced jointly

with 2 other companies and MDA to

invest in a US$50 million fund for films

to be produced from Singapore.

• First Bibigo outlet in ASEAN

Asia Pacific Headquarters

• Korea’s Number 1 Chicken

Restaurant established operations in

Singapore as Asia Pacific

Headquarters.

Korean Enterprises in Singapore

9

Excellent Physical Connectivity

EFFICIENT CUSTOMS EXCELLENT AIR AND SEA CONNECTIVITY

Business Times, 18

Jan 2006

Electronic Permit Applications 90% processed within 10 minutes

Physical Cargo Clearance 90% cleared within 8 minutes

100% cleared within 13 minutes

Major Exporter’s Scheme A virtual free trade zone if goods are meant for export

SEA: 25 mil TEUs handled in 2009

200 Shipping lines 600 ports

AIR: 1.63 mil tons handled in 2009

83 Airlines 190 cities

Europe 4 daily sailings

423 weekly flights

NE Asia 13 daily sailings

1117 weekly flights

N. America 2 daily sailings

256 weekly flights

S. Asia 6 daily sailings

419 weekly flights

S.E. Asia 64 daily sailings

1885 weekly flights

SW Pacific 446 weekly flights

Middle East 167 weekly flights

10

Excellent Trade Connectivity

69 DTAs Reduction of

withholding tax

Elimination of

double taxation

36 IGAs Investment

protection and

facilitation

18 FTAs Improved market

access for goods &

services

•Reduction of

withholding tax

• Elimination of

double taxation

• Investment

protection &

facilitation

• Preferential

market access

http://www.iras.gov.sg/irasHome/

page.aspx?id=812

http://app.mti.gov.sg/default.a

sp?id=2785

http://www.fta.gov.sg/sg_ft

a.asp

10

11

Comprehensive networks of DTAs

69 DTAs in force Limited treaties - covers income

from shipping and/or air transport only

Awaiting ratification

11

12

Most extensive network of FTAs in Asia –

covering 60% of World GDP

EFTA - Switzerland, Norway, Iceland, Liechtenstein

GCC - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE

18 FTAs Enforced 18 FTAs Enforced

18 FTAs Enforced 2 Soon-to-be

3 Upcoming FTAs 4 Upcoming FTAs

ASEAN

India

ASEAN-Korea Australia ASEAN-Japan

Japan ASEAN-China

Chile-Brunei-NZ

Panama Korea USA

Ukraine EU Trans-Pacific Partnership

New

Zealand Peru China ASEAN-Australia-NZ ASEAN-India Jordan

GCC

Costa Rica

Taiwan

12

13

Favourable Tax Regime

• Corporate tax rate: 17%

• Capital gains tax: Nil

• Withholding tax on: Dividends Nil Royalties 10% Interest 15%

• Unlimited carry forward of tax losses & capital allowances

• Group relief system

• Tax exemption for foreign dividends, branch profits and

service income

• Tax and grant incentives to encourage companies to grow their businesses

0

10

20

30

40

50

Corporate Tax Regime Personal Tax Regime

• Territorial Taxation Tax only on income earned in

Singapore Overseas income received in

Singapore is not taxable (exclude income received through partnerships)

• No estate duty

• No capital gains tax

• Tax exemption on income derived from

short-term employment in Singapore of not more than 60 days by non-resident individual Excludes company director, public

entertainer or person exercising profession

• Time apportionment of income for Not

Ordinary Resident (NOR) Taxpayer

17%

13

14

Living in Singapore

Source: ECA Location Ratings, ECA

International, 2009

Source: Mercer Human Resource Consulting,

2009

Ranking Country

1 Singapore

2 Sydney

3 Kobe

4 Melbourne

4 Yokohama

6 Copenhagen

6 Tokyo

8 Canberra

9 Vancouver

9 Wellington

Best place in the

world for Asians to

live in

Ranking Country

1 SINGAPORE

2 MUNICH

3 COPENHAGEN

4 TSUKUBA

5 YOKOHAMA

6 DUSSELDORF

6 VANCOUVER

8 FRANKFURT

8 HONG KONG

8 LONDON

Best city

infrastructure in the

world

Ranking Country

1 Singapore

2 UAE

3 USA

4 Belgium

5 Hong Kong

6 Germany

7 Netherlands

8 Canada

9 India

10 Australia

Most attractive

environment for

highly-skilled talent

15

Singapore: A Safe and Stable Country

Country Risk Index takes into consideration political

risk, social instability risk and systemic risk.

Grades range from 0 to 10, with 0 being the best

grade possible and 10 the worst. Source: Political and Economic Risk Consultancy 2008

0

1

2

3

4

5

6

7

Country Risk Index* Singapore is Asia’s safest country Grades for Criminal Threat Against

Persons and Properties

Country Grades Ranking

Singapore 0.86 1

Hong Kong 1.07 2

Japan 1.75 3

South Korea 2.50 4

China 3.00 5

Taiwan 3.50 6

Vietnam 4.22 7

Thailand 4.67 8

Malaysia 5.17 9

15

16

Singapore: Safe but not Unexciting!

Marina Bay Sands, 2010 Singapore Sports Hub, 2014 National Art Gallery, 2014

Resorts World at Sentosa, 2010 F1 Grand Prix, 2012 River Safari, 2011

EDB provides this presentation (including oral statements) gratuitously for

information only and not for any other purpose. EDB does not warrant the

accuracy, completeness nor suitability for purpose of any information in this

presentation. EDB excludes all liability including but not limited to inaccuracies,

incompleteness or lack of suitability for purpose of any information in the

presentation.

Thank You