Mariana Marques
Trade Analyst, DBED

One of the most prominent financial hubs in the world lies in the heart of Southeast Asia. Singapore has one of the fastest growing economies in the region, with a market potential of approximately 300 million people and a highly educated population.  According to the World Economic Forum, Singapore was ranked the world's second most competitive economy in 2003.  In the same year, the Economist Intelligence Unit ranked Singapore the best place to do business in the Asia-Pacific region and the 7th globally.

The economic success of this small wonder is due in large part to its pro-business government, which has developed an export-oriented economic policy that encourages two-way flows of trade and investment. In an attempt to transform the country into a "high value-added, knowledge-based economy," the government supports the needs of the local business community by nurturing homegrown technology entrepreneurs. Additionally, the liberalization of its telecommunications, financial and energy industries have rendered Singapore a true investor's haven.

Another factor contributing to Singapore's success is its sterling reputation as a stable business environment.  The Political and Economic Risk Consultancy (PERC) ranked Singapore as the most stable country in Asia, over both Japan and Taiwan.  The Business Environment Risk Intelligence, which focuses on the sociopolitical conditions of a country, ranks Singapore 2nd lowest, after Switzerland, in the Political Risk Index.
 
Singapore was the 12th largest trading partner of the U.S. in 2003. The passing of the U.S. - Singapore Free Trade Agreement (USSFTA) in May 2003 is expected to give the economy an even greater boost by further opening markets and increasing competition and consumer choice. 

Singapore serves as the gateway to the Asia-Pacific region, re-exporting more than 52% of its imports.  Major imports in 2002 were integrated circuits, computers, parts and accessories, crude oil, aircraft, and telecommunications equipment.  Major exports included crude oil, and ship and aircraft bunkers (STAT-USA).  Experts forecast that biotech and high-tech services will constitute the next major wave for the Singapore economy.

Interested in this market?  The State of Maryland has a representative in Singapore ready to provide market research, foreign partner research, counseling, representation, event planning and promotion at your request.  For further information contact DBED Trade Manager, Derek Mohre at (410) 767-4853.

Sources: Stat-USA, State Department, Civil Aviation Authority of Singapore, World Bank.
 

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