Singapore's Trade Buddies

Export & Import Partners Profit From World's Busiest Port

Feb 25, 2007 Daniel Workman

The smallest nation in Southeast Asian is one of the most business-friendly and efficiently run countries in world trade.

Almost half the size of Los Angeles, tiny Singapore has a population of some 4.5 million.

Singapore's prime location compensates for its small size and lack of natural resources. Singapore's bustling port is surrounded by China and Japan to the north, Australia to the southeast and India to the west.

Singapore's seaport is the largest and busiest in the world. The Port of Singapore processes foreign shipments in a matter of hours, and boasts the fastest customs clearance process on the planet.

Top Countries For Singapore Exports (2006)

The following list shows the top eight customers for Singapore's exports, which totalled an estimated US$283.6 billion in 2006.

1. Malaysia ... US$42 billion (14.7% of total Singapore exports)
2. United States $33 billion ... (11.5%)
3. Indonesia ... $30 billion (10.7%)
4. Hong Kong ... $29 billion (10.4%)
5. China ... $27 billion (9.5%)
6. Japan ... $17 billion (6%)
7. Thailand ... $13 billion (4.5%)
8. Australia ... $12 billion (4.1%)

The above trade partners consumed over 70% of Singapore's total exports.

Singapore's economy depends heavily on exports, particularly consumer electronics and information technology products. In fact, Singapore is the world's leading producer of computer disk drives. Although electronic products account for 60% of Singapore's exports, chemicals are also a strong source of revenue.

Top Countries From Which Singapore Imports (2006)

Singapore imports natural resources and raw materials, and then refines those components for re-export as finished products. For example, Singapore processes source materials from imports into finished electronic components and refined oil exports.

1. Malaysia ... $35 billion (14.4% of total Singapore imports)
2. United States ... $31 billion (12.4%)
3. China ... $27 billion (10.8%)
4. Japan ... $25 billion (10.1%)
5. Indonesia ...$14 billion (5.5%)
6. Saudi Arabia ... $12 billion (4.7%)
7. South Korea ... $11 billion (4.5%)

Singapore's top seven import partners generated over 62% of total Singaporean imports.

Some analysts label Singapore as international trade's foremost entrepot or warehouse; that is, a strategic port where merchandise is imported and then exported without the payment of import duties.

Singapore Champions Free Trade

Singapore actively pursues free trade agreements. Seven free trade contracts are already in effect. Singapore continues to negotiate another 14 treaties with nations including Canada, Panama, Kuwait, India and Korea.

Singapore has signed several international dispute settlement and arbitration conventions. Foreign investors are welcome, and enjoy transparent legal and regulatory systems and an effective bureaucracy. Singapore is considered virtually corruption-free.

Sources

This analysis is based on latest statistics from the US Census Bureau - Foreign Trade Statistics and CIA World Factbook as of the date of article publication.

The copyright of the article Singapore's Trade Buddies in International Trade is owned by Daniel Workman. Permission to republish Singapore's Trade Buddies in print or online must be granted by the author in writing.