Singapore, The Utopia of Trade

Ranked second by the World Bank as the easiest place in the world to start, run and conduct business (2019), Singapore is the true trade epicentre of Asia. With frequent in- and outbound flights to 400 cities across 100 countries and has already clocked 742,000 air freight movements this year, Changi Airport provides extensive air connectivity for the state’s dynamic supply chain. We take a deep dive into the country’s potential and the trade potential open to those based in the UK. 

Attractive Propositions

The fact Singapore’s maritime industry accounts for 170,000 jobs and 7% of Singapore’s GDP is demonstrative of its leading infrastructure and consequently standing as the busiest container transhipment hub in the world. The combination of such a well-connected freight transportation system with forward-looking economic policies, political stability and a skilled workforce makes for an incredibly attractive proposition that more and more UK businesses are keen to get involved in. 

Over 5,000 UK businesses currently operate in Singapore and, in light of Brexit, can now benefit from the UK-Singapore Free Trade Agreement (UKSFTA) that came into effect on January 1^st 2021. The Agreement allows companies to continue benefitting from the EU-Singapore FTA – trade which is facilitated by tariff elimination on goods, and non-tariff barriers are reduced for major sectors like automotive, electronics, and medical goods and devices. 

A Changing Landscape

Despite a global pandemic, exports from Singapore grew by 4.3% in 2020, evidence that its persistent, strategic focus on high-end manufacturing is paying off. Electronic products and computer parts saw a 13.7% increase in exportation, evidencing the huge surge in demand for digitalisation because of Covid-19. 2021 is expected to see Singapore’s export market grow by a further 1-2% as the changing global landscape drives further demand for electronics, like 5G infrastructure, and biomedical goods. the production and provision of Covid-19 vaccinations.  

Singapore’s imports for 2020 totalled a staggering 453.5 billion Singapore dollars, and it remains the destination for half of the UK’s total exports to ASEAN (£4.6 billion’s worth in 2020). Strong, buoyant building and infrastructure demand from civil engineering projects, like the expansion of the Mass Rapid Transit network to 540km by 2030, orchestrate need from the UK for machinery, engineering and transport equipment. For context, London’s Tube system stands at 408km! The UK is also one of the main exporters to Singapore for chemical and medical products; leading pharmaceutical companies to have multiple manufacturing sites on the island. The state’s demographic has shifted to an ageing population - ¼ will be over 65 by 2030. This is reflected in their healthcare budget rising significantly by 13.2% in 2021, there is increasing opportunity and scope for health and medical related products and the incorporation of AI and robotics.

Global Hub of Business

Ecommerce providers can easily run, manage and track movement operations of ample products through shipments to one central location before distribution elsewhere - Singapore’s place on the map enables it to act as a springboard to other Asian markets (like China, Hong Kong and Malaysia), lending to its reputation as the global hub of business. Aramex is at the heart - we’re experts in Singapore customs, allowing for seamless transportations of specialist goods, such as medical equipment and mechanical products, to desired destinations. Our distribution centres are spread across multiple locations in Asia; as such, our specialist transport operations are fast, informed and reliable in busy international markets. 

We’re always building on our existing knowledge to provide long-term solutions for our client's needs in such exciting landscapes. Contact us today to speak with one of our experts and find out more about how we can help your business establish itself and thrive within the Singapore trade market. If you would like to find out more about the potential of the Singapore market through partnering with Amazon, then make sure to attend our webinar on the 5^th August, 10 am London time.