SINGAPORE: Introduction to Singapore and the EDB

SINGAPORE: Introduction to Singapore and the EDB

Singapore Economic Development Board The Lead Agency that Plans and Executes Economic and Industrial Development Strategies for Singapore Attract Foreign Investments Grow Industry Verticals OUR GOAL Shaping Singapore s Economic Future OUR VISION A Global Leader A Great City A Home in Asia For Business, Innovation and Talent Enhance Biz Environment OUR MISSION We create for Singapore, sustainable economic growth with vibrant business and good job opportunities 2

Singapore: Springboard to Asia 1 st 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 India: 1.1 bil pop GDP(2006): US$890bil SE Asia: 422 mil pop GDP(2006): US$900bil China: 1.3 bil pop GDP(2006): US$2,680bil China India Myanmar Thailand Indonesia Australia Japan Vietnam Philippines Malaysia Singapore Australasia: 25 mil pop GDP(2006): US$850bil 1 st in the World for having the Best Protection of Intellectual Property Doing Business 2010 Report, World Bank 3

Snapshot of the Singapore Economy 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 Construction Transport & Storage Others Information & Communications 4% 2010 GDP: S$303 billion (US$223 billion) 5% 9% 19% Wholesale & Retail Trade 16% 22% 14% Manufacturing Business Services 12% Financial Services 2011 GDP growth (est): 4.8% Source: Ministry of Trade and Industry Jan 2012 Exchange Rate: 1 USD = 1.36 SGD 4

Major Industry Sectors Transport Engineering Logistics Professional Services Digital Media Electronics Energy Consumer Businesses Clean Energy Precision Engineering Biomedical Sciences Education Services Environmental Technologies Chemicals Infocomms & Media Healthcare Services Biotechnology 5

Global Business Hub 7,000 MNCs of which 60% have HQ functions 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 Strong IPR Protection Rank Country 1 Switzerland 2 Austria 3 Finland 4 Germany 5 Singapore Source: IMD World Competitiveness Yearbook 2010 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 6

Launch Point for Asian Enterprises to Internationalize 37,400 International Companies Of which > 18,300 are from Asia 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 Source: Accounting and Corporate Regulatory Authority (ACRA), 2Q2010 7

Korean Enterprises in Singapore Multiple Businesses in Singapore 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 Asian Regional HQ 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 Key Hub in Southeast Asia and Oceania 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 Asia Pacific Headquarters Korea s Number 1 Chicken Restaurant established operations in Singapore as Asia Pacific Headquarters. Asia Pacific Control Tower Established in Singapore to manage global distribution and intellectual property, develop content and produce animation. 8

Excellent Physical Connectivity EXCELLENT AIR AND SEA CONNECTIVITY EFFICIENT CUSTOMS SEA: 25 mil TEUs handled in 2009 200 Shipping lines 600 ports AIR: 1.63 mil tons handled in 2009 83 Airlines 190 cities 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 Business Times, 18 Jan 2006 N. America 2 daily sailings 256 weekly flights Middle East 167 weekly flights Europe 4 daily sailings 423 weekly flights NE Asia 13 daily sailings 1117 weekly flights S. Asia 6 daily sailings 419 weekly flights S.E. Asia 64 daily sailings 1885 weekly flights SW Pacific 446 weekly flights 9

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

Comprehensive networks of DTAs 69 DTAs in force Limited treaties - covers income from shipping and/or air transport only Awaiting ratification 11

Most extensive network of FTAs in Asia covering 60% of World GDP 18 FTAs Enforced 2 Soonto-be 18 FTAs Enforced ASEAN Australia ASEAN-Korea ASEAN-Japan Chile-Brunei-NZ GCC Japan India USA Korea Panama ASEAN-China Costa Rica New Zealand Jordan China Peru ASEAN-Australia-NZ ASEAN-India 3 Upcoming FTAs 4 Upcoming FTAs Ukraine EU Trans-Pacific Partnership Taiwan EFTA - Switzerland, Norway, Iceland, Liechtenstein GCC - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE 12

Favourable Tax Regime Corporate Tax Regime Personal Tax Regime 50 40 30 20 10 0 17% Territorial Taxation Tax only on income earned in Singapore Overseas income received in Singapore is not taxable (exclude income received through partnerships) 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 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 Tax and grant incentives to encourage companies to grow their businesses 13

Living in Singapore Best place in the world for Asians to live in Ranking Country 1 Singapore 2 Sydney 3 Kobe 4 Melbourne 4 Yokohama 6 Copenhagen 6 Tokyo 8 Canberra 9 Vancouver Source: ECA Location Ratings, ECA International, 2009 9 Wellington Best city infrastructure in the world Ranking Country 1 SINGAPORE 2 MUNICH 3 COPENHAGEN 4 TSUKUBA 5 YOKOHAMA 6 DUSSELDORF 6 VANCOUVER 8 FRANKFURT 8 HONG KONG Source: Mercer Human Resource Consulting, 2009 8 LONDON Most attractive environment for highly-skilled talent Ranking Country 1 Singapore 2 UAE 3 USA 4 Belgium 5 Hong Kong 6 Germany 7 Netherlands 8 Canada 9 India 10 Australia 14

Singapore: A Safe and Stable Country 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 7 6 5 4 3 2 1 0 Country Risk Index* Vietnam 4.22 7 Thailand 4.67 8 Malaysia 5.17 9 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 15

Singapore: Safe but not Unexciting! Marina Bay Sands, 2010 Singapore Sports Hub, 2014 National Art Gallery, 2014 Resorts World at Sentosa, 2010 River Safari, 2011 F1 Grand Prix, 2012 16

Thank You 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.