Singapore

Introduction

Total Population: 5,469,700

Natural Increase: 1.3%
Density: 7,736 Inhabitants/km
Urban Population: 100.0%
Population of main cities: Singapore is a city state (5,469,700).
Ethnic Origins: Chinese 76.2%, Malays 15%, Indians 7.4%, Others 1.4%.
Official Language: English, Mandarin Chinese, Malay, Tamil.
Other Languages Spoken: Hakka, Cantonese, Teochew, Other Chinese dialects.
Business Language(s): English isthe most common language usedand is the
language which unites thedifferent ethnic groups and business together.
Religion: Buddhism, Islam, Taoism, Hinduism, Christianity and other religious
communities, including Jews, Sikhs, Jains, etc.

Introduction
Area: 717 km
Type of State: Singapore is a republic state based on
parliamentary democracy.
Type of Economy: High-income economy.
Southeast Asia's hi-tech and wealthy city-state. Based
on banking and financial services; shipyards and oil
refining; leading world port in tons of goods transported.
HDI*: 0.902/1
HDI (World Rank): 9/187

Introduction
Computers: 74.3 per 100 Inhabitants
Telephone Lines: 37.8 per 100 Inhabitants
Internet Users: 74.2 per 100 Inhabitants
Access to Electricity: 100% of the Population

Political Outline

Type of State
Singapore is a republic state based on parliamentary democracy.
Executive Power
President is the chief of the state. The role of the president is
largely ceremonial. Following legislative elections, leader of
majority party or leader of majority coalition is usually appointed
Prime Minister by the President as head of the government.
Prime Minister enjoys the all the executive powers which include
implementation of the law in the country and running the day-today affairs.

Political outline
Legislative Power
The legislature is unicameral in Singapore. The Parliament consists of 84
seats: 9 members of parliament (MPs) are directly elected from singlemember constituencies, and 75 are elected in teams of between four and
six to represent the 15 Group Representation Constituencies (GRCs). In
addition, there are up to nine nominated members.
Parliament is supreme to all other government. The government is
dependent on the support of the parliament, often expressed through a
vote of confidence.
Main Political Parties
Although Singapore is a multi-party nation, the centre-right People's Action
Party (PAP) has dominated its legislature since 1959 and continues to hold
an overwhelming majority of the single-chamber parliament.

Economic Outline

Economic Outline
The economy of Singapore is characterised by extreme
financialisation and a high degree of openness, and thus
its dependence on international trade.
After its revival in 2013, driven by the manufacturing
industry and supported by trade recovery in Asia, the
GDP growth rate slowed down in 2014 (3%) under the
effect of a reduction in exports due to the drop in oil
prices and the slowdown of the construction sector.
Economic growth continued to slow down in 2015, with
the GDP growth rate forecasted at around 2%-2.5%.

Economic outline
Singapores export-dependent economy has been hurt by
slowing growth in China, while uneven recoveries in the USA
and Europe have dampened demand for Asian goods.
Nevertheless, Singapore's economy is sound:
the current accounts are on a high surplus and the country has
significant foreign exchange reserves with zero external debt.
The country also benefits from a large margin to increase
spending on social services and to provide financial help to
local businesses.
The Government's priority is to ensure quality growth and build
a more inclusive society

Outline
In order to maintain its competitive position despite rising wages, the
Government is seeking to promote activities with higher added value
(such as biotechnology, research and development and
pharmaceutical products) in the manufacturing and services sectors.
The 2015-2016 budget aims to reinforce the future of Singapore
through steady training and the reinforcement of social security. This
budget also seeks to invest in innovation and internationalisation of
SMEs, to reinforce Singapores status as a world-class transport and
logistics hub and to offer more insurance to the retired population.
The country faces challenges, such as its dependence on exports, its
lack of a skilled workforce and its ageing population.

Economic Outline
The level of per capita wealth in Singapore is amongst the
highest in the region.
After a long period of full employment, unemployment has
appeared, especially due to structural economic changes
(outsourcing of low-skilled work). This situation worsened
during the global economic crisis.
Singapore must also deal with rising levels of income
inequality and social discontent caused by overpopulation
and a high level of competition for employment and
housing. These issues are perceived to be caused by
immigration.

Economic Outline

Main Sectors of Industry

Singapore plays the role of a regional commercial hub. The port of
Singapore is one of the most important ports in the world, and it ranks
second as a traffic centre for container transshipment after Hong
Kong. The services sector contributes almost three-fourths of the GDP
and employs over three-fourths of the active population. It is
dominated by trade, business services, transportation,
communications and financial services.
Singapore's economy is highly industrialised. The industrial sector
represents one-fourth of the GDP and employs almost 22% of the
population. Electronics and petrochemicals dominate the industry.
The primary sector is almost non-existent (except for the cultivation of
orchids, vegetables and fish for aquariums). Singapore does not have
any mineral resources.

FDI in figures
Singapore has based its economic development on a proactive
strategy to attract FDI using its trade openness. According to the
World Bank, Singapore is the easiest country for doing business:
favourable lending to foreign investors, a simple regulatory system,
tax incentives, a high-quality industrial real estate park, political
stability and the absence of corruption make Singapore an attractive
destination for investment.
According to the UNCTAD 2015 World Investment Report, Singapore is
the 5th largest recipient of FDI in the world and the 3rd largest among
the East and South-East Asian countries. In 2014, FDI flows into
Singapore increased by 27% from 2013, reaching USD 81 billion.
The main investors are the United States, the Netherlands, the United
Kingdom and Japan.

FDI

FDI Inflows By Countries and Industry

FDI

Why investment to SP?

Strong Points
Singapore is the easiest country in which to do
business, according to the World Bank Doing Business
2016 report.
Singapore has excellent telecommunications, as well as
strong financial and transport infrastructure. In addition,
its strategic location at the crossroads of maritime
routes and its proximity to big markets are strategic
advantages.
The country offers tax concessions and easy loan
conditions as part of its investment incentives.

Why to investment to SP?

Weak Points
The lack of transparency in administrative incentives
and the non-internationalization of the Singaporean
dollar are investment hindrances.
Despite being a free port, tariff protection for industrial
firms is not provided.
The dominant role of semi-public companies could
hinder investments in some sectors.

Country Comparison For the Protection of Investors