Business and Market Overview on Singapore

ECONOMY. Singapore is the most advancedhas efficiently managed seaports and airport
economy among the Southeast Asian countrieswhich are used as regional hubs by many sea and
with a GDP per capita of US$25,207 in 2004air carriers.INTERNATIONAL TRADE. Singapore
which is comparable to many advancedhas one of the busiest ports in the world and a
economies in the European Union. Singapore lacksregional hub for entrepot trade. Singapore's major
natural resources but is a regional hub fortrading partners are Malaysia, US, Hong Kong,
international trade, shipping and air transport. ManyChina, Japan, Taiwan, Thailand and South Korea.
US, European and Japanese multinationalMany of the goods imported from and exported
companies have established Singapore as ato Malaysia and Indonesia are re-exports from
regional office for their businessother countries. Major exports from the
operations.Singapore's GDP grew at an average ofSingapore include electrical and electronic products,
2.7% annually from 2000 to 2004 to reachmachineries and equipments, processed foods,
US$106.9 billion by 2004 while inflation remainingconsumer goods, chemicals and mineral fuels.
below 2.0%. Though Singapore's economy is theMajor imports include machineries and equipments,
most advanced among the Southeast Asianmineral fuels, chemicals and foods.CONSUMER
countries, unemployment increased from 1.8%USAGE OF TECHNOLOGY. More than 90% of all
during the Asian economic crisis of 1997 to 5.3%homes have mobile phones putting the country on
in 2004. To diversify and expand the country'spar with Sweden, Norway, Austria and Norway.
economy, the government is developingNearly all homes have at least a fixed-line
Singapore into a regional hub for finance and hightelephone, television and refrigerator. The
technology.The service sector accounted forpenetration of computers is also high with 70% of
66.2% of Singapore's GDP in 2004 while theall homes having a computer and there are nearly
manufacturing sector accounted for 33.7%.2.5 million internet users for a population of 4.3
Agriculture plays a minimal role in Singapore'smillion. Furthermore, there are more than 2.5
economy and accounted only 0.1% of themillion credit cards in the county and online
country's GDP. Major industries in Singapore includepayments are well established. However, only
electronics, chemicals, financial services, petroleum35% of all homes own a car due to the
refining, food processing, ship repair, offshoreextremely high cost to own a car in
platform construction, biotechnology and entrepotSingapore.RETAIL MARKET. Singapore has one of
trade.DEMOGRAPHY. Singapore's population of 4.2the highest standards of living in Asia after Japan
million in 2004 is predominantly Chinese accountingand Singaporeans are keen shoppers. Estimated
for 77% of the population. Other ethnicretail sales in Singapore in 2004 were US$11 billion.
communities include Malays (14%) and IndiansUnlike other countries in Southeast Asia, retail
(8%). Major religions practiced include Buddhism,chains dominate over the industry by sales value.
Taoism, Hinduism, Christianity and Islam. TheThese include shopping malls, hypermarkets,
Chinese are generally agnostic, Buddhist, Tao orsupermarkets, department stores, convenience
follow the Christian faith while Malays are mostlystores and speciality stores. Singapore has many
Muslims and Indians generally Hindus, Christian orestablished international retailers and brands
Muslims. Main languages used are English (widelyattracting tourists from Southeast and Northeast
spoken and used in business and by theAsia. Many shopping malls have also sprouted in
government), Chinese (mainly Mandarin andthe suburban areas existing side-by-side with the
Hokkien), Malay and Tamil."mom and pop" establishments.FOOD CULTURE.
Singapore is a city-state and therefore nearly allSingapore's multi-ethnic communities has had
its population live in an urban community. Mostinfluenced on Singapore's food culture.
Singaporeans live in high-rise apartments or flatsFurthermore, Singaporeans are accustomed and
accounting for nearly 90% of the householdsoften frequent various western and Japanese
while the remaining 10% live on landedfood service establishments including fast food
property.Singaporean consumers have the highoutlets. Eating out is popular among Singaporeans
level of disposable income compared toand the current trend is to eat out rather than at
consumers in other Southeast Asian countries.home. Thus, Singaporeans spent 9% of their
High-income households account for nearly 27%income on foods for cooking at home and 12%
of the total households while middle-incomefor eating out.Khal Mastan is a Senior Consultant
households account for 32%. Low-incomewith Pegasus Business and Market Advisory (
households i.e. those earning than US$1,900 perbased in Malaysia. He involves himself in business
month account for 41% of the totaland marketing research and provides consulting
households.INFRASTRUCTURE. Domestic andservices on markets in Southeast Asia namely
international telecommunication services areMalaysia, Thailand, Singapore, Indonesia, Philippines
excellent and one of the best in the region.and Brunei. He has more than 20 years
Internet broadband services are efficient andexperience in the region and work experience in
widely available. Singapore's road system isvarious industries. He holds a bachelors degree in
efficiently managed and the city-state is wellBiochemistry and an MBA. He can be contacted at
served by a public transport system. Singaporeor +6 (03) 7726 5373 in Malaysia.