General Overview of Singapore

Total Land Area: 699.4 sq km Comprises one main island (617.1 sq km)

and

some 63 offshore islands. Among the offshore islands, the larger ones

are Pulau Tekong (2365.5 hectares), Pulau Ubin (1023.9 hectares) and

Sentosa (460 hectares).

Location: Between latitudes 1º 09´N and 1º 29´N and longitudes 103º

36´E and 104º 25´E.

Singapore is a major refining center for Southeast Asia, with refining

capacity of nearly double its rate of petroleum products consumption.

Singapore’s strategic location at the entrance to the Strait of Malacca,

through which roughly one-third of global sea commerce passes each

year, has helped it become one of the most important shipping centers

in Asia.

The Port of Singapore, one of the worlds busiest in terms of shipping

tonnage, is a key component of Singapore’s prosperity and economic

health. Singapore is also a leader in new biotechnologies, petroleum

refining, and the manufacture of computer components.

The Economy of Singapore is a highly developed and successful capitalist

mixed economy. While government intervention is kept at a minimum,

government entities such as the sovereign wealth fund Temasek control

corporations responsible for 60% of GDP. It has an open business

environment, relatively corruption-free and transparent, stable prices and

one of the highest per capita gross domestic products (GDP) in the world.

Exports, particularly in electronics and chemicals, and services provide the

main source of revenue for the economy, which allows it to purchase natural

resources and raw goods which it does not have. Singapore could thus be

said to rely on an extended concept of entrepot trade, by purchasing raw

goods and refining them for re-export, such as in the wafer fabrication

industry and oil refining. Singapore also has a strategic port which makes it

more competitive than many of its neighbors to carry out such entrepot

activities. The Port of Singapore is one of the busiest in the world, surpassing

Hong Kong and Shanghai. In addition, Singapore's port infrastructure and

skilled workforce, which is due to the success of the country's education

policy in producing skilled workers, is also fundamental in this aspect as they

provide easier access to markets for both importing and exporting, and also

provide the skill(s) needed to refine imports into exports.

The government promotes high levels of savings and investment through a

mandatory retirement savings scheme known as the Central Provident Fund,

and large portions of its budget are expended in education and technology,

with the former having a current rate as of 21% in 2005, compared to

spending in the United States of 4%.

Business Organization Structures

A person who wishes to do business in Singapore may choose to

operate the business through any one of the following business

organization structures:-

Sole Proprietorship: A sole proprietorship is an individual carrying on

business on his own behalf. In order to carry out business as a sole

proprietor, one needs to register the business under the Business

Registration Act.

Partnership: A partnership is defined under the Partnership Act as a

relationship that subsists between persons carrying on business in

common with a view of profit.

Company: A company incorporated under the Companies Act is a

separate legal entity from its owners. Several consequences flow from

this separate legal personality.

Branch of Foreign Company: Instead of incorporating a local

company to conduct business, some foreign companies may choose to

register a Singapore branch under the Companies Act.

Representative Office: Foreign companies in the manufacturing,

trading, trade logistics and trade-related services sectors may

establish a representative office in Singapore to undertake promotional

and liaison activities on behalf of its head office or overseas branches.

Limited Partnership: A Limited Partnership is not a separate legal

entity. A Limited Partnership has 2 types of partner’s viz. general

partners and limited partners.

Limited Liability Partnership: A Limited Liability Partnership is a

separate legal entity. It has characteristics of a partnership and a

company.

Approvals, Licenses and Permits: Apart from registration with the

Registry of Companies and Businesses, certain businesses are subject

to further regulatory control by other government agencies in

Singapore.

Special approvals or licenses may have to be obtained before the

relevant business activity can commence. Some of the businesses

which require special approval or license include finance companies,

insurance companies, travel agents and private schools.

Infrastructure

Strategically located at the crossroads of Asia, Singapore aims to

serve as a compelling business hub for interested investors from

all over the world. The strategic geographical position is further

complimented by a world ‐ class infrastructure system that has

been implemented to meet global business and industry needs.

Singapore has top rated infrastructure in air, sea,

telecommunications and industrial lands creating a conducive

environment for businesses to thrive in.

Singapore has a well ‐ developed infrastructure that meets all of

the needs of business and industry. It is the hub of the

telecommunications centre of Southeast Asia with state - of - the -

art technology. It is possible to have fax, telex and international

telephone services rapidly connected and, thereafter, have

instantaneous telecommunications with all parts of the world.

Facsimile transmission is widely used and readily available.

Culture, Religion and People.

There is a wide choice of business premises - sophisticated commercial

complexes, fashionable conservation areas, and specially structured

industrial sites. The software sector has expanded with an annual

growth rate of 15%. Singapore is one of the biggest IT labor market in

Asia after Japan.

Unity in diversity is the philosophy of this cosmopolitan city. Lacking

natural resources, Singapore's strength is its hardworking, adaptable

and resilient population. Singapore's population of almost four million

comprises 77% Chinese, 14% Malays, 8% Indians and 1% Eurasians

and people of other descent. There are four official languages in

Singapore: Malay, Mandarin, Tamil and English. Malay is the national

language. With its ethnic mix also comes its diverse set of religions.

Singapore's skyline boasts the distinctive minarets of mosques, spires

of gothic cathedrals, intricate figurines of Hindu temple gods and

distinctive roof architecture of Chinese temples.

The main religions are Islam, Taoism, Buddhism, Christianity,

Hinduism, Sikhism and Judaism. This reflects itself amazingly well,

much to the benefit of gourmand foreign tourists in the Food of

Singapore! Not just this; another manifestation of Singaporean multi-

ethnicity is beautifully evident in the various vibrant Events and

Festivals of Singapore.

For the proprietors and employees of many small and medium Chinese

businesses, continued identification with dialect and sub ethnic

communities provided many benefits and indeed was a precondition

for engaging in many lines of trade. Although the dialect communities

were not primarily occupational groups, the social solidarities created

within the communities were economically useful. Much of the

business activity in the extensive Chinese "traditional" sector of the

economy depended on credit, personal relations, and the reputation of

individuals for trustworthiness. In the final analysis, individuals met

their obligations because failure to do so would result in immediate

loss of reputation and creditworthiness with their fellows in restricted

sub ethnic communities.

Education

English is the first language learned by half the children by the time

they reach preschool age and is the primary medium of instruction in

primary school. The educational system features non-compulsory

kindergarten for three years, followed by six years of primary

education concluding with the Primary School Leaving Examination.

The Economic Development Board (EDB) has been actively recruiting

foreign schools to set up campuses in Singapore under the "Global

Schoolhouse" programme which aims to attract 150000 foreign

students by 2015.
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Major industries are Electronics, financial services, oil drilling

equipment, petroleum refining, rubber processing and rubber products,

processed food and beverages, ship repair, biotechnology and Tourism.

In 1998, industry accounted for 35% of GDP, and manufacturing for

22%. In 2001, estimates were that industry contributing 33% of GDP

and employed about 33% of the labor force. Of the components of the

industrial sector, manufacturing contributes about 25% to GDP and

construction about 6.8%. “The Jurong Town Corporation” was

established under the Jurong Town Corporation Act of 1968 to develop

and manage industrial estates and sites in Singapore. Most of the first

factories set up under the program were of an import-substitute nature

requiring tariff protection, but many such protective tariffs were

subsequently withdrawn. The emphasis was on upgrading facilities to

attract high-technology and skill-intensive industries.

Within manufacturing, electronics have in recent years been dominant,

account for about half manufactured output, with chemicals second.

According to Singapore's Economic Development Board, the

electronics sector accounts for about 48% of investment in

manufacturing; chemicals, about 24%; engine ring, 17%; and the

biomedical sector, about 9%.

In 2002 electronics grew by 15%, and it was mainly the contraction in

this sector by 5.3% in 2003 than led to the overall GDP contraction of

2%. Counter cyclically, construction declined 4.6% in 2003, but grew

11.9%in the first quarter of 2003 primarily due increased public sector

spending on infrastructural projects such as land reclamation and mass

transit railways.

No. of visitors in 2005: 8.9 million. Tourists are mainly from Indonesia,

PR China, Australia, Japan, Malaysia, UK, Thailand, USA, South Korea,

Philippines, Hong Kong SAR, Taiwan, Germany, Vietnam and India. The

Number of gazette hotels were 104. Number of gazette hotel rooms

were 30,445. The Standard average occupancy rate is almost 84% all

round the year.