With a large number of important international businesses establishing a foothold in Singapore, it has established itself as a recognized global trade center. The government is working to establish a conducive climate that will help Singapore maintain its position as a global trade hub in the future.
Singapore became a member of the General Agreement on Tariffs and Trade (GATT). This agreement was created to offer an international platform for member governments to promote free trade. In 1989, the world’s first computerized, national, paperless trade facilitation and documentation system, “TradeNet,” was launched. Singapore, together with 81 other nations, signed the World Trade Organization accord in 1994. Singapore has long been renowned for its importance in international trade and as a crucial “port of call” for traders travelling between the eastern and western time zones. Singapore is now designated as an International Maritime Center, with connections to over 600 ports in more than 120 countries. Changi Airport in Singapore is also one of the busiest for aviation cargo.
The Challenges faced
Singapore is a duty-free port, with almost 99 percent of all imports arriving duty-free. It charges high excise taxes on distilled alcohol and wine, tobacco goods, motor vehicles, and petroleum for social and/or environmental concerns. For American firms operating in Singapore, competition with worldwide suppliers is a major problem. In response to concerns such as an ageing workforce, maturing economy, expanding impact of social media, and more competition from other trade agreements and ASEAN partners, the COVID-19 epidemic has posed additional challenges to Singapore. To address the new challenges, Singapore has established the Emerging Stronger Taskforce, which will work closely with the Future Economy Council to identify the risks and threats that must be addressed in each sector of the economy, as well as make recommendations to the Future Economy Council on a post-COVID-19 economy. The goal is to look at how Singapore may remain economically resilient and develop new sources of innovation in the post-COVID era.
Enhance productivity, lower risk, and boost efficiency
As businesses expand internationally, more items are delivered to new locations and are subject to a slew of regulatory restrictions. Many export professionals struggle to maintain export control categorization for items while also creating correct documentation and audit trail capabilities in this fast-paced and complicated environment. Bluebox is a one-stop solution that helps you decrease the risk of non-compliance while boosting efficiency in the export clearance, screening, and document preparation processes.
Singapore is the world's second-easiest location to conduct business, according to the World Bank, and the world's most competitive economy.
The following are some of the reasons why American businesses might consider exporting to Singapore:
- As a major distribution, logistical, and financial hub, it is often regarded as the ASEAN region’s entry point.
- The majority of the population speaks English.
- Lack of corruption and transparency
- Intellectual property rights are well protected.
- Laws and regulations that are beneficial to business