WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/TPR/G/130 
17 May 2004  
 
(04-2081) 
Trade Policy Review Body Original:  English 
   
 
  
 
TRADE POLICY REVIEW 
 
SINGAPORE 
 
Report by the Government 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by the Government of Singapore is attached. 
 
 
Note: This report is subject to restricted circul ation and press embargo until the end of the meeting 
 of the Trade Policy Review Body on Singapore. Singapore WT/TPR/G/130 
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CONTENTS 
    P a g e  
 (1) E CONOMIC PERFORMANCE  5 
   Biomedical Sector shows its Promise 5    Growth in Merchandise and Services Trade 6 
   Strong Inward and Outward FDI 7 
 (2) T
RADE AND ECONOMIC POLICY  7 
   Promoting a Competitive Economy 8 
   With Global Links and Reach 10 
   A More Entrepreneurial Economy 12    Diversification for Sustainable Growth 13 
 (3) C
ONCLUSION  14 
 
 Singapore WT/TPR/G/130 
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(1) ECONOMIC PERFORMANCE  
1. In the period under review, Singapore continued to liberalise its economy and improve its 
competitiveness.  Prudent macroeconomic policies provided monetary and fiscal stability for business 
expansion and formation.  These policies have resulted  in one of the most reliable, predictable, and 
transparent places for businesses.  Singapore is th e world’s second most competitive economy (with a 
population below 20 million)1, and the world’s second freest economy.2  The economy expanded by 
an average of 3.2% p.a. from 1992-2002, and grew 1.1% in 2003 despite di fficult conditions in the 
first half of the year occasioned by the US-Iraq war and the SARS outbreak.  For 2004, the Government expects the economy to grow by 3.5-5.5%. 
Table 1 
Key Economic Indicators 
Indicator 1999 2000 2001 2002 2003 
Gross Domestic Product:      
At Current Market Prices (S$ million) 139,615.9 159,662. 1 154,078.0 158.06 4.1 159,135.0 
Annual Change (per cent) 1.8 14.4 -3.5 2.6 0.7 
      
At 1995 Market Prices (S$ million) 147,83 4.4 162,162.3 159,073. 0 162,493.2 164,265.9 
Annual Change (per cent) 6.9 9.7 -1.9 2.2 1.1 
      
Per Capita GNI in S$ 36,097 39,599 37,634 37,834 37,555 
Gross Fixed Capital Formation:      
At Current Market Prices (S$ milli on) 47,091.9 47, 538.2 45,586.0 40, 705.0 39,573.4 
Average US$/S$ 1.6949 1.7239 1.7917 1.7906 1.7422 
Inflation Rate (CPI Change, pe r cent) 0.0 1.3 1.0 -0.4 0.5 
Unemployment Rate (per cent) 3.5 3.1 3.3 4.4 4.7 
Productivity (Annual Change, per cent) 7.3 5.4 -5.2 3.6 2.3 
Source:  Singapore Department of Statistics, Manpower Research & Statisti cs Department, Ministry of Manpower, 
 Monetary Authority of Singapore. 
Biomedical Sector shows its Promise 
2. Singapore’s manufacturing sector turned in a growth of 3.4% p.a. in 1999-2002 as strong 
increases in the transport engineering and, in par ticular, the biomedical manufacturing clusters more 
than offset sluggish growth in the electronics cluster arising from the global electronics slump in 
2001.  In 2003, the sector expanded by 2.8%, desp ite the global economic uncertainties in the earlier 
half of the year.  The main growth contributors  were the electronics, chemical and biomedical 
manufacturing clusters.  The biomedical manufactur ing segment, which has expanded to account for 
almost a fifth of Singapore’s manufacturing output, le d all other segments with a firm 8.1% growth.   
3. The services sector recorded a healthy average increase of 3.9% in 1999-2002, led by the 
transport & communications and wholesale & retail tr ade sectors.  Growth in 2003, at 1.0%, was 
lower.  This was primarily because the travel-rela ted sectors were affected by the US-Iraq war and 
SARS. 
                                                      
1 IMD (2003), IMD World Competitiveness Yearbook 2003,  14 May, p. 5. 
2 The Heritage Foundation/The Wall Street Journal (2004), 2004 Index of Economic Freedom.  WT/TPR/G/130 Trade Policy Review 
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Table 2 
Annual percentage change in sectors of the Singapore economy;  at 1995 market prices 
Sector 1999 2000 2001 2002 2003 
TOTAL 6.9 9.7 -1.9 2.2 1.1 
Goods Producing Industries 6.6 11.1 -9.1 3.4 0.2 
Manufacturing 13.0 15.1 -11.6 7.8 2.8 
Construction -9.0 -0.7 -2.6 -10.8 -10.7 
Utilities 3.4 7.2 1.8 3.8 1.8 
Other Goods Industries -1.8 -4.9 -5.9 -5.8 -0.4 
Services Producing Industries 6.3 8.0 2.4 1.4 1.0 
Wholesale & Retail Trade 6.5 14.8 -3.3 2.7 6.7 
Hotels & Restaurants 5.4 8.5 -0.2 -2.9 -12.2 
Transport & Communications 7.6 7.7 3.9 4.9 -2.0 
Financial Services 5.7 3.6 2.3 -6.3 3.7 
Business Services 5.5 5.7 2.4 1.2 -1.8 
Other Services Industries 6.3 8.5 8.5 4.6 2.1 
Owner-Occupied Dwellings 7.8 6.3 4.5 2.1 2.6 
Source:  Singapore Department of Statistics. 
Growth in Merchandise and Services Trade 
4. Following a healthy expansion of 4.2% p.a. in 1999-2002, Singapore’s external trade 
improved further to hit an increase of 9.6% in 2003.   Buoyant growth was achieved in the second half 
of the year in tandem with the improvements in the external environment, particularly the US and Japanese economies, and the significant pickup in global electronics demand.   
5. Despite the sharp downturn in gl obal electronics demand in 2001, exports rose at the pace of 
4.8% p.a. in 1999-2002.  Growth strengthened fu rther in 2003 to a substantial 12.1%.  Non-oil 
domestic exports (NODX) to all of  the top 10 markets, except Malaysia and the US, went up in 2003.  
Notably, NODX to China, Hong Kong, the EU, Korea and Australia saw double-digit growth rates in 
2003. Similarly, imports climbed significantly by  7.0% in 2003, double the average pace in 1999-
2002. 
Table 3 
Singapore’s trade performance, 1999-2003 
TRADE Singapore’s trade performance 
(at current prices, S$ billion) Annual percentage change 
in trade (%) 
 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 
TOTAL TRADE 382.4 470.0 425.7 432.2 473.9 8.1 22.9 -9.4 1.5 9.6 
Imports 188.1 232.2 207.7 208.3 222.8 10.8 23.4 -10.5 0.3 7.0 
Exports 194.3 237.8 218.0 223.9 251.1 5.7 22.4 -8.3 2.7 12.1 
Domestic Exports 116.3 135.9 118.4 119.4 138.9 9.8 16.9 -12.9 0.8 16.3 
Non-oil 101.2 113.1 96.7 98.6 113.5 9.5 11.8 -14.5 1.9 15.1 
Oil 15.1 22.9 21.7 20.9 25.4 12.4 51.0 -5.0 -3.9 21.7 
Re-Exports 78.0 101.9 99.6 104.5 112.2 0.2 30.7 -2.3 4.9 7.4 
Source:  IE Singapore 
6. Trade in services grew an average of 7.7% annually  from 1999 to 2003.  In the past two years, 
growth in the exports of financial services had been the most vibrant.  Underpinned by the increase in Singapore WT/TPR/G/130 
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corporate credit demand in the regional economies , loans to non-bank customers in the offshore 
banking segment picked up strongly.  Fee-base d activities in the offshore banking segment 
strengthened significantly along with the robus t regional economic recovery.  In addition, 
international fund management activities were boosted by large Asian equities mandates from 
institutional investors on the back of growing investor confidence in Asia. 
Table 4 
Singapore’s trade in services, 1999-2003 
Indicator Singapore’s trade in services 
(at current prices, S$ billion) Annual percentage change 
in trade in services (%) 
 1999 2000 2001 2002 2003
 1999 2000 2001 2002 2003
 
Total Trade in Services 85.82 98.02 102.99 106.91 105.01 18.6 14.2 5.1 3.8 -1.8 
Exports of Services 44.68 50.70 52.14 53.68 53.49 13.3 13.5 2.8 2.9 -0.3 
Transportation 18.12 20.50 20.53 21.47 20.55 19.4 13.2 0.1 4.6 -4.3 
Travel 8.63 9.01 8.27 7.99 6.97 12.0 4.5 -8.2 -3.4 -12.8 
Insurance 0.61 0.87 1.19 1.32 1.52 15.3 42.6 37.1 11.3 15.1 
Gov't Services 0.15 0.17 0.18 0.18 0.16 -5.2 13.1 7.1 -1.8 -8.8 
Construction 0.28 0.23 0.35 0.36 0.32 -15.1 -17.3 49.4 3.0 -10.8 
Financial 2.02 2.40 2.12 2.33 3.14 0.8 18.8 -11.4 10.0 34.6 
Computer & Information 0.39 0.43 0.56 0.57 0.56 -7.1 10.1 31.0 1.2 -1.8 
Royalties 0.11 0.15 0.31 0.33  0.34 15.7 32. 7 105.7 7.8 2.8 
Social 0.02 0.03 0.04 0.03 0.04 42.0 27.6 44.4 -6.7 2.0 
Other Business Services 14.37 16.92 18.59 19.09 19.90 10.4 17.7 9.9 2.6 4.3 
           
Imports of Services  41.13 47.32 50.85 53.23 51.51 25.0 15.0 7.5 4.7 -3.2 
Transportation 18.79 22.10 22.18 22.87 23.41 17.3 17.6 0.4 3.1 2.4 
Travel 6.56 7.82 9.81 11.30 8.58 29.9 19.3 25.4 15.3 -24.1 
Insurance 1.95 2.56 2.61 2.98 3.19 7.3 31.4 2.1 14.3 6.9 
Gov't. Services 0.20 0.20 0.25 0.26 0.27 1.6 0.7 24.5 3.9 6.2 
Construction 0.31 0.21 0.31 0.28 0.25 -4.1 -31.7 44.5 -10.8 -10.7 
Financial 0.55 0.69 0.64 0.71 0.60 36.0 26.0 -6.6 10.8 -15.2 
Computer & Information 0.31 0.39 0.49 0.39 0.38 18.6 26.8 27.3 -21.3 -1.7 
Royalties 6.53 6.23 6.09 5.65 5.81 108.6 -4.6 -2.2 -7.3 2.8 
Social 0.02 0.04 0.05 0.06 0.06 95.0 67.9 28.5 24.2 2.1 
Other Business Services 5.92 7.08 8.41 8.73 8.96 3.5 19.5 18.9 3.8 2.6 
Source: Singapore Department of Statistics. 
Strong Inward and Outward FDI 
7. Singapore continues to be active in internationa l investments. Singapore is one of the world’s 
top destinations for foreign direct  investments (FDI), with inward FDI stock of S$235 billion in 2002.  
Its stock of outward FDI amounted to S$146 billion in  2002. Singapore is a significant investor in all 
the ASEAN countries and in China, India and Australia.   
(2) TRADE AND ECONOMIC POLICY  
8. Singapore’s economic strategy was comprehens ively reviewed by the Economic Review 
Committee that was set up in 2001, and chaired by the Deputy Prime Minister.  The Committee’s 
work, lasting 14 months, involved more than a thousand people from the private sector, unions, WT/TPR/G/130 Trade Policy Review 
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government, and other stakeholders.  The Committe e’s recommendations have been accepted by the 
Government and are being implemented.   
9. The Government remains committed to the success ful polices that have delivered sustained 
economic growth, low inflation, and a stable cu rrency for more than 40 years.  These include:  
a. Prudent and rational macroeconomic policies; 
b. Openness to foreign investment and a voidance of trade barriers and other price-
distorting measures;  
c. A successful tripartite partnership involving the unions, employers and the 
Government, that maintains harm onious industrial relations; and  
d. Social investment in education,  housing and basic healthcare.   
10. Going forward, the Government’s strategy is to create a competitive economy that is 
globalised, entrepreneurial and diversified.   
Promoting a Competitive Economy 
Costs 
11. The quality and cost of factor inputs is an  important determinant in the economy’s 
competitiveness.  Recognising this, Singapore has fully  liberalised the telecommunications sector, and 
70% of the total energy demand is now contestable.  This has led to more competitive factor prices.  
Since liberalisation in 2000/2001, electricity tariffs have decreased by at least 9.5%, keeping oil prices 
constant.  Telecommunications prices have also falle n, with international call rates falling by 60-80%. 
Competition Policy 
12. With greater experience gained from enfo rcing sector-specific competition regimes, 
Singapore is moving towards the introduction of a gene ric competition law that will cover all sectors.  
Legislation is expected to be passed by 2005. G overnment Linked Companies (GLCs) will also be 
subject to the new competition law.  This is a c ontinuation of Singapore’s longstanding and consistent 
policy that GLCs operate like any private sector comp anies on a commercial basis, with no subsidy or 
preferential treatment from the government. 
Wages 
13. Singapore has also embarked on a policy of wa ge reform, in order to introduce greater 
competitiveness and flexibility to the wage system.  In the existing structure, wages for an older 
employee who has been in his job for a long time could be 1.7 times that of a new employee performing the same job.  Such rigidities exacerba te structural unemployment, and makes industries 
less able to respond to changing market conditions.   
a. The Government is encouraging employers and unions to move towards a system in 
which a larger portion of wages is variable , and linked to individual performance and 
the performance of the company. 
b. In addition, Singapore’s Central Provident Fund (CPF) scheme has also been re-
tuned.  Contribution rates have been reduced from 40% to a range of 30-36%, Singapore WT/TPR/G/130 
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depending on economic conditions .  Contribution rates for workers above the age of 
50 to 55 will be lower, in order to improve their employability.  The salary ceiling beyond which income will not be subject to CPF contribution will also be progressively lowered from S$6,000 per month to S$4,500 per month.  Other changes 
have also been introduced to ensure that the CPF objective of providing for sufficient 
retirement savings for workers is preserved.   
Workforce Restructuring 
14. Singapore’s workforce tops BERI’s worldwide ranking for technical skills3, and there has 
been a marked improvement in the educational pr ofile of recent cohorts.  However, Singapore’s 
workforce still lags behind in worldwide comparison s, as there is a large pool of workers who lack 
formal qualifications, and who have to be retrained and upgraded (see Figure 1).  In addition, in line 
with global trends, the share of manufacturing employment has decreased from 28% of the workforce in 1991, to 19% in 2001.  With the shift towa rds services, new capabilities and knowledge will have 
to be acquired by the workforce to meet industry needs.   
12161717183027
52674951706260
36173431121713
0% 20% 40% 60% 80% 100%TPKM*Hong KongSingaporeSouth KoreaUKJapanUSFigure 1
Educational profile of labour force, 2001
Source :    Report of the Economic Review Committee (2003), Ministry of Trade and Industry.Degree Secondary and post secondary Below secondary
*    The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
 
15. Singapore established in September 2003 the Singapore Workforce Development Agency 
(WDA).  The WDA aims to enhance the employability of the local workforce and the competitiveness 
of industries by developing a comprehensive, adu lt continuing education and training framework that 
is closely linked to the changing demands of the economy.  The WDA will also help industries 
develop their capabilities to plan and meet their manpower needs, as well as upgrade human capital 
management practices. 
                                                      
3 Business Environment Risk Intelligence S.A. (2003), Business Risk Service (BRS) 2003-I Labour 
Force Evaluation Measure, April, p. 8. WT/TPR/G/130 Trade Policy Review 
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… with Global Links and Reach 
Building Multilateral, Regi onal and Bilateral Highways 
16. With a small domestic economy, Singapore’ s trade and economic policies are closely 
intertwined.  Singapore believes that the success of global trade system depends on simultaneous 
efforts to pursue the maximum possible extent of  liberalisation in the multilateral, regional and 
bilateral fronts.   
17. Singapore’s principal priority remains the WT O, and the Doha Development Agenda.  To 
facilitate successful resolution of the public h ealth exception under TRIPS for least developing 
countries, Singapore was one of the first WTO develo ping members to declare that it would not avail 
itself to the exception, except in situations of na tional emergency or other circumstances of extreme 
urgency.   
18. Singapore is active in negotiations on non-ag ricultural market access, anti-dumping matters 
and the trade facilitation. Both in the respectiv e negotiating meetings as well as the key informal 
negotiating groupings in these areas, Singapore h as tabled proposals and made constructive 
suggestions on ways to move ne gotiations forward.  Singapore has also been active in the various 
services rules negotiations on domestic regulations, government procurement, emergency safeguard 
measures and subsidies in services and has tabled sp ecific papers to facilitate progress in some of 
these areas.  Singapore is among those that have tabl ed its initial requests and offer.  In addition, 
Singapore has worked with like-minded members to advocate liberalisation in a number of services sectors, including air transport, computer, logistics, maritime transport and telecommunications.   
19. On the regional front, Singapore is a founding memb er of the Association of South East Asian 
Nations (ASEAN), the Asia Pacific Economic Coope ration (APEC), and the Asia Europe Meeting 
(ASEM), all of which have a clear trade and investment dimension to them.   
a. Of the three fora, the ASEAN economic ag reements provide the most comprehensive 
and deepest commitments.  Since 2003, an  ASEAN Free Trade Area in goods has 
existed between the original 6 members of ASEAN.  The original 6 members of 
ASEAN have also committed to remove National Treatment restrictions to 
manufacturing by 2003 and services incidental to manufacturing by 2010 for ASEAN investors, and by 2010 for other investors.   Together with other ASEAN countries, 
Singapore is working towards achieving an ASEAN Economic Community by 2020.  This will include WTO-plus undertakings covering trade in goods, services and 
investment, non-tariff barriers, and standards.  Eleven priority sectors
4 have been 
identified, with sectoral integration agre ements currently under negotiation.   
b. APEC operates on a non-binding basis to achieve "open regionalism", and has 
adopted a target to achieve free trade a nd investment in the region by 2010 for 
developed economies, and 2020 for deve loping economies.  Under the APEC 
framework, Singapore is committed to various "p athfinder" projects to facilitate trade.  
These include electronic certificates of origin5 and electronic certificate for Sanitary 
and Phyto-sanitary (e-SPS) Measures6, and mutual recognition arrangement for 
                                                      
4 Agro-based products, ai r travel, automotive, e-ASEAN (or ICT), electronics, fisheries, health care 
products, rubber-based products, textiles/ap parels, tourism and wood-based products. 
5 With Korea and the Separate Customs Territo ry of Taiwan, Penghu, Kinmen and Matsu. 
6 With Australia, New Zealand, The Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu , USA and Canada. Singapore WT/TPR/G/130 
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conformity assessment of telecommunications equipment7 and electrical and 
electronic equipment8.  Singapore is also party to a Multilateral Agreement on the 
Liberalisation of International Air Tran sportation (MALIAT), an initiative started 
with several other APEC economies.9 
c. In 2002, the 26 ASEM Partners endorsed  the establishment of an ASEM Closer 
Economic Partnership (CEP) Task Force, a concept that was first mooted by Singapore. The Task Force, which comprises of independent experts, has been mandated to make concrete and action- oriented recommendations for closer 
cooperation in the areas of finance, trade a nd investment. In addition, Singapore co-
facilitates the Trade Facilitation Action Plan ( TFAP) priority area of distribution, and 
has sought to identify non-tariff barriers encountered by retail distributors. ASEM also goes beyond the regional and bilatera l level; in the lead up to the Cancun 
Ministerial, Singapore was an active partic ipant in the two ASEM consultations on 
the DDA, which served as platforms for a frank exchange of views on WTO issues amongst ASEM Partners. 
20. Given the overlapping membership of these thr ee important regional groupings, region-to-
region initiatives in economic integration have also  blossomed.  For instance, ASEAN is vigorously 
pursuing trade and investment engagements with it s external dialogue partners, and is currently 
engaged in FTA negotiations with China, India, Jap an, as well as exploring the feasibility of an FTA 
with Korea.  ASEAN has also established coopera tion programmes with Australia and New Zealand
10 
and the EU11 with the objective of facilitating two-way trade and investment flows.  ASEAN is also 
engaged with the US through the Enterprise for ASEAN Initiative, which pr ovides a framework for 
ASEAN countries to engage in bilateral FTAs w ith the US.  Singapore fully supports these 
developments, as it believes that the long-term economic  prospects of Southeast Asia are enhanced by 
it maintaining open links to all the regions in the world. 
21. On the bilateral front, Singapore has conclude d FTAs with New Zealand, Japan, the European 
Free Trade Association, Australia, and the United Stat es.  Discussions continue with Canada, India, 
South Korea, Jordan, Sri Lanka, Bahrain, Mexico  and Panama.  Singapore views bilateral FTAs as a 
critical complement to efforts at the multilateral a nd regional level.  The FTAs with Japan and the US 
have been precursors to their subsequent initiatives  with ASEAN.  In addition, the high-standard 
commitments of the FTA hopefully anticipate th e eventual ambitious results of the DDA.   
Using the Highways 
22. Singapore is also encouraging companies to le verage on the opportunities arising from greater 
trade and investment liberalisation in the multilatera l, regional and bilateral fronts.   An extensive 
outreach programme has been developed in partners hip with the business associations.  These include 
workshops and seminars on the WTO, ASEAN, APEC, ASEM and our FTAs, to create greater 
awareness of the benefits to be reaped fro m these initiatives amongst the business community.  
Consultations have also been held to solicit input s on matters ranging from trade barriers faced by our 
companies to production processes undertaken by the manufacturers, in order to improve the level of 
understanding between government departments a nd the business community, and also to facilitate 
                                                      
7 With Australia. 
8 With Australia and New Zealand. 
9 Other signatories are:  Brunei, Chile, New Zeala nd, the US, and Peru.  Samoa and Tonga recently 
acceded to the MALIAT. 
10 Under the AFTA-CER Closer Economic Partnership framework. 
11 Under the Trans-Regional EU ASEA N Trade Initiative (TREATI) framework. WT/TPR/G/130 Trade Policy Review 
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effective trade negotiations.  Feedback channels ar e also available through government websites and 
hotlines for Singapore companies to  provide comments on the Government's trade policies.   
23. In April 2002, the former Trade Developm ent Board was re-organised to become 
"International Enterprise Singapore".  The role of th is agency is to help Singapore-based companies 
grow and internationalise successfully.  As part of this refocused mission, IE Singapore has realigned 
its network of overseas centres, added new offices and increased staffing in key markets, and introduced business support offices in nine key citi es to facilitate the entry of Singapore companies 
into these new markets. These measures will rein force the momentum of Singapore’s stock of 
outward investment, which in 2002 stood at $146 billion, up 560% from 1992.   
A More Entrepreneurial Economy 
Rewarding Enterprise 
24. Singapore has also kept direct taxes on companies and individuals as low as possible.  The 
corporate tax rate will be progressively reduced to  20% in the Year of Assessment (YA) 2005.  To 
promote entrepreneurship, and to attract and retain talent, the top marginal personal income tax rate 
was cut from 25% to 22%.  To ensure long-term budget sustainability, the Goods and Services Tax 
was increased from 3% to 4% in 2003, and further increased to 5% beginning 2004. 
Encouraging Enterprise 
25. Notwithstanding Singapore's high ranking in terms of government efficiency12, Singapore will 
continue to promote a pro-business environment by cutting red tape and removing obstacles to 
enterprise. 
a. A Pro-Enterprise Panel was set up in 2000 to  ensure that government regulations and 
rules remain relevant and supportive of a pro-enterprise environment. The Panel 
actively solicit business-related feedback on ru les and regulations.  So far, the Panel 
has reviewed over 1,100 suggestions, an d accepted more than half of them. 
b. The public service has also launched initiatives to cut red tape:  
i. At a strategic level, a Rules Revi ew Process was introduced in 2002, under 
which all government agencies had to review all their rules and regulatory 
frameworks.  In the past year, the Panel reviewed 2912 rules, 23% of the total.  It removed or updated 1094 ru les.  By end FY2005, public agencies 
will have reviewed all their existin g rules, remove outdated ones and 
streamlined the rest, with the plan to review all rules regularly, on a rolling 
five-year cycle.   
ii. At the operational level, a campaign for Public Officers Working to Eliminate 
Red-tape (POWER) was also introdu ced in 2000 to encourage front-line 
public officers to become advocates in creating a pro-enterprise environment, by eliminating cumbersome and obsolete public sector rules. 
iii. These are supported by the Cut Red Tape website, which serves as a one-stop 
portal where the public can voice their comments and feedback, which will 
                                                      
12 The Singapore Government ranked as the second most efficient among 29 developed and developing 
countries in 2003.  IMD (2003), IMD World Competitiveness Yearbook 2003,  14 May, p. 417. Singapore WT/TPR/G/130 
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then be channelled to the relevant ministry or agency for the necessary 
follow-up actions to be taken.   
Nurturing Enterprise 
26. Singapore has always recognised the importance of investing in education so as to equip its 
citizens with skills and capabilities relevant to the demands of the economy.  The strong foundation in 
mathematics, science and literacy has enabled th e economy to move progressively to higher value 
activities.  In line with its objective to move fro m an investment-driven economy to an innovation-
driven economy, the education system will be refi ned to promote and nurture a greater spirit of 
innovation, enterprise and tolerance of risk.  There will be greater diversity and customisation of the 
academic curriculum, together with a broader mix of  programmes, types of schools and pathways to 
university education.  New specialised schools w ill allow students with exceptional ability to fully 
realise their potential, whether in mathematics and science, sports or arts.  Universities will give 
greater attention to multi-disci plinary education and research. 
Diversification for Sustainable Growth 
27. Singapore will continue to develop manufacturi ng and services as the twin engines of growth.  
Singapore believes that its strengths in these two secto rs can be sustained, if it takes the necessary 
steps to upgrade its capabilities, and move towards higher value-added activities.   
28. In the manufacturing sector, the chemicals, elect ronics, engineering and biomedical sciences 
sectors are the four key clusters.  Efforts will be  placed in continuing to grow these clusters and 
encouraging companies to move up the value chain.  Going forward, nanotechnology, photonics, and 
industrial information technology offe r promising areas of growth.   
29. In the service sector, Singapore’s current strengt hs are in trading and logistics, financial 
services, info communications technology, as well as tourism.  To ensure global competitiveness in 
these areas, Singapore has embarked on autonomous liberalisation so that strong players will emerge.  Singapore has progressively liberalised the financial sector to promote competition and innovation. The Monetary Authority of Singapore (MAS) lowe red barriers in banking and insurance, while 
deregulating the securities industry. This not only pr ovided international financial institutions greater 
incentive to boost activities in Singapor e, it also spurred local financia l institutions to upgrade their 
capabilities and sharpen their competitiveness.  Singapore has also fu lly liberalised its 
telecommunications sector (see Box 1). 
Box 1:  Singapore’s Autonomous Li beralisation in Telecommunications 
 Full liberalisation of the telecommunications industry in April 2000 (two year s ahead of schedule).  
All direct and indirect foreign equity limits on public telecommunication services were lifted with 
immediate effect 
 A Telecommunications Competition Code was introduced in September 2000 to set clear 
boundaries for competitors while providing sufficient flexibility for deployment of innovative 
services to meet customers’ demands.  Code is reviewed every three years.  
 Under the Code, dominant licensees are required to file a Reference Interconnect Offer (RIO) that 
is approved by the regulator. The prices, terms and conditions for interconnection set out in the 
RIO must be non-discriminatory , transparent and cost based. 
 Lifted the requirement of local incorporation fo r all SBO licensees and certain categories of FBO 
licensees in April 2003. 
 WT/TPR/G/130 Trade Policy Review 
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30. Singapore will pursue policies to further devel op globally competitive sectors in healthcare, 
education and the creative industries.  As sectors like healthcare and education have traditionally 
focused on meeting domestic demand, Singapore rec ognises a need for regulatory frameworks to be 
reviewed so that they do not become impediment s to growth.  At the same time, social objectives, 
such as ensuring affordable healthcare and education, have to be maintained. 
(3) CONCLUSION  
31. During the period under review, Singapore has maintained its position as one of the most 
competitive economies in the world.  This openness has been reinforced by  its successes in pursuing 
trade and investment liberalisation on the multilatera l, regional and bilateral fronts, as well as its 
pursuit of autonomous liberalisation.   
32. Singapore recognises the importance of adaptin g to the increasingly competitive global 
environment and is pursuing policies to create a gl obalised, entrepreneurial a nd diversified economy.  
This is achievable if it perseveres with restruct uring and upgrading, and provides an environment for 
local and foreign talent to flourish and grow.  The improved global economic conditions in 2004 
provide an opportunity to press on with necessary policy adjustments, so that Singapore can be 
transformed into a leading global hub of talent, enterprise, and innovation. 
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