Singapore WT/TPR/S/67
Page 39
III. TRADE POLICIES AND PRACTICES BY MEASURE
(1) INTRODUCTION
1. Since its last Review in 1996, Singapore has continued to pursue liberal trade and investment
policies, and showed no inclination to take protectionist measures during the Asian economic crisis.
The authorities recognize that liberal trade and investment policies have served Singapore well in the
past, enabling it to achieve the highest level of GDP per capita in the world.  Moreover, its opennessto trade and investment, and strong economic fundamentals have made an important contribution to
Singapore's rapid recovery from the effects of the crisis.
2. Singapore's liberal trade policy is reflected, inter alia , in the virtual absence of tariff
protection and scarce use of non-tariff border measures .  Approximately 70% of Singapore's tariff was
bound as a result of the Uruguay Round and WTO Information Technology Agreements.  While theaverage bound tariff is currently 9.7%, applied tariffs are zero for all except four tariff lines, which
relate to alcoholic products.  Import prohibitions and licensing measures are used mainly for public
safety and health reasons and to comply with international conventions; second-hand cars more than
three years old are banned, ostensibly on environmental grounds; and import licensing for rice is
maintained for food security reasons.  Very little use has been made of contingency measures such asanti-dumping and countervailing duties.  Singapore also tries to ensure that, to the largest extent
possible, standards and sanitary and phytosanitary measures follow those established by international
organizations.
3. In the context of its WTO commitments, Singapore has implemented fully its obligations
under the Agreements on Customs Valuation (Article VII of GATT 1994) and Trade-Related Aspects
of Intellectual Property Rights (TRIPS) well before the expiry of the deadline granted to developing
countries.  In addition, Singapore acceded to the WTO Agreement on Government Procurement in1997.
4. Singapore has had an active industrial strategy over the years, whereby the Government's
policy has been to direct the economy in a particular direction.  This policy has been implemented by
various statutory boards, notably the Economic Development Board (EDB), created in the early
1960s.  The statutory boards provide, inter alia, a range of tax incentives for investment in particular
activities or sectors.  Tax incentives are currently provided to encourage investment in high
value-added manufacturing and services, in keep ing with government policy to encourage the
development of these activities.
5. Another potential instrument of this industrial strategy has been the Government's
considerable influence on the economy through its holding company, Temasek, a matter that hasbecome the subject of domestic debate in recent years.  Formed in the 1970s, Temasek took over the
ownership and management of government-linked corporations, which are active in a wide range of
sectors.  Although the full extent of government involvement in the economy through Temasek
remains rather unclear, Temasek has responded to the domestic debate by suggesting improved
corporate governance and disclosure requirements among its companies.
6. While Singapore does not have a competition law, its liberal trade and investment policies
ensure a competitive environment in the goods sector.  In services, where key sectors, including
telecommunications and energy, have been gradually liberalized, the Government has created
regulatory frameworks intended to foster competition (Chapter IV).WT/TPR/S/67 Trade Policy Review
Page 40
(2) MEASURES DIRECTLY AFFECTING IMPORTS
(i) Customs procedures
(a) Registration and documentation
7. Registration and documentation procedures remain essentially unchanged since the previous
Review.  Under the Regulation of Imports and E xports Act, 1995, the Singapore Trade Development
Board (TDB) may, with the approval of the Mini ster for Trade and Industry, formulate regulations
regarding registration, regulation and control of goods imported into, exported from, or transshipped
through Singapore.  All importers are required to register with and obtain a Central Registration
Number (CRN) from the TDB and to provide a customs declaration either to the TDB or to Customs
or jointly to both.  Most declarations are submitted and processed through an electronic system,
"TradeNet".1  Only companies registered in Singapore may apply to declare permits through
TradeNet.  For items subject to import (or export) restrictions, importers must obtain either an
endorsement or a licence from the appropriate Government Ministry or statutory board before the
product is imported (or exported).
8. Import permits are required for all imports except:  up to ten litres of alcohol and up to two
kilogrammes of tobacco in possession of passengers arriving in Singapore;  petroleum carried in asupply tank or in a spare container of a capacity no greater than ten litres;  dutiable goods imported by
post unless so required by Customs
2;  dutiable goods discharged from a vessel directly into a
free-trade zone removed by an authority administering a free-trade zone.3
9. Documentation required includes the appropriate customs and/or TDB permits as well as
invoices, packing lists, bills of lading, and any other supporting documentation.  For imports of food
products, importers are required to be registered with or licenced by the Primary Production
Department (PPD) in the Ministry of National Development, and to be registered under the BusinessRegistration Act or incorporated under the Companies Act.
4  Documentation required when applying
for an import permit, in such cases, includes bills of lading and invoices, in addition to health
certificates for meat products and certain fish products, and a phytosanitary certificate for fresh fruit
and vegetables imported from South America.  All imported consignments may be subject to testing
and inspection by the PPD.  In the case of meat imports and high-risk seafood, including frozenoysters, cockle meat, cooked prawn/shrimp and crab meat, all consignments are regularly subject to
testing and inspection before sale is permitted in Singapore.
10. In general, certificates of origin are not required for imports other than food and plants.
However, the TDB or any other relevant controlling agency, may require importers to submit
certificates of origin as proof of origin.  Certificates of origin may also be requested by authorizedchambers of commerce if they are required to issue certificates for goods that are subsequently
re-exported from Singapore.
                                                     
1 A declaration is not required for commercial sa mples, unsolicited gifts, specimens for testing or
analysis, the value of which does not exceed S$400;  unaccompanied personal or household effects;  commercialdocuments;  human remains;  etc.
2 Articles entering Singapore through the postal system are subject to customs clearance at the
Singapore Post Centre.  A clearance fee of S$2 is levi ed on parcels subject to customs duty cleared at the
Post Centre.
3 Customs and Excise Department (undated).
4 In addition, all consignments of meat must be shipped directly from the producing country.Singapore WT/TPR/S/67
Page 41
11. All valuation decisions taken by Customs regarding imports may be appealed by the importer
under Chapter 70, Section 22B of the Customs Act (section (ii) below).  Since 1995, no appeals have
been registered against customs decisions.
(b) Preshipment inspection
12. Singapore has notified the WTO Secretariat that it has no laws or regulations relating to
preshipment inspection.5  The authorities are aware of one company, SGS Singapore Private Limited,
a member of the Société Générale de Surveillance, which provides preshipment inspection services
(for exports).
(ii) Customs valuation, clearance, and inspection
(a) Customs valuation procedures
13. Under the provisions of the WTO Agreement on Implementation of Article VII of the GATT
1994 (Customs Valuation), by which developing c ountry Members may delay application of customs
valuation, Singapore invoked delayed application of this Agreement6;  notice of Singapore's decision
to implement Article VII of the GATT 1994 was given to the Committee on Customs Valuation in
October 1997.7  The Customs Amendment Bill was pa ssed by Parliament on 17 October 1997.
14. Under the Customs (Valuation) (Import Duty) Re gulations, 1997, transaction value is used as
the basis for assessing customs duty payable on imported goods.  The assessment of value is based on
the c.i.f. price of the goods at the date of importation, which is the f.o.b. (free-on-board) price plus the
costs of insurance and freight.
15. In addition to customs duty, all goods and most services are subject to a goods and service tax
(GST) (section (v)(b)).  For imported goods subject to customs duty, the taxable value of the GST is
based on the c.i.f. value of the good plus the customs duty.  For non-dutiable goods the value of the
GST is based on the c.i.f. value.
16. Under the Customs Act (Part XIII), all imports may be subject to inspection at the border by
the Customs Authority.  Seizures of goods that  do not comply with import requirements must be
notified in writing to the owner of the goods, explaining the grounds for seizure.  Customs officers
also have the power to make arrests, without warrants, of persons found to be in violation of customs
requirements.
17. All customs decisions concerning the valuation of imported goods may be appealed in writing
to the Director General of the Customs and Excise Authority within 14 days after any determination
of the value of the imported good.8  Decisions made by the Director General of Customs may be
further appealed to the High Court within 28 days of being given notice in writing of the Director
General's decision.  Prosecutions concerning offences committed under the Customs Act are normallydealt with by the district or magistrate's courts.
                                                     
5 WTO document G/PSI/N/1/Add.2, 26 July 1995.
6 WTO document G/VAL/2/Rev.3, 15 April 1996.  Singapore's reservations relate to Article 20.2
(delayed application of the computed value method);  Annex III, paragraph 2 (minimum values), paragraph 3
(reversal of sequential order of Articles 5 and 6) and paragraph 4 (application of Article 5.2 whether theimporter so requests) (WTO document G/VAL/13, 18 December 1997).
7 WTO document G/VAL/N/1/SGP/1, 13 October 1997.
8 Customs Act, Chapter 70 (1997 edition), Section 22B.WT/TPR/S/67 Trade Policy Review
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(iii) Rules of origin
(a) Non-preferential rules of origin
18. Singapore notified the WTO Secretariat that it has no non-preferential rules of origin.9
(b) Preferential rules of origin
19. Singapore has preferential rules of origin under the ASEAN preferential trading arrangement
where ASEAN content must be at least 40% of the free-on-board (f.o.b.) price of the finishedproduct.
10  In addition, textiles and textile products qualify for CEPT preferences under the
Substantial Transformation Criterion, if substantial transformation has taken place in an ASEAN
country.  Preferential entry is also granted under the GSTP to other participants of the Scheme
(Table III.1).11  In practice, however, since Singapore's tariff is zero for most imports, preferential
rates are not applied to imports from any source.
Table III.1
Singapore's preferential rules of origin
Agreement Rules
ASEAN Imported products must be wholly produced in an ASEAN country or have an ASEAN content on at
least a cumulative basis of 40% of the f.o.b. price of the finished product.  Textiles and textileproducts qualify for preferential treatment under CEPT if substantial transformation has taken place
in an ASEAN country.
GSTP Products must be wholly produced in a participating country or have a participating country produced
content of at least 50% of the f.o.b. price of the finished product.  Partial cumulation of at least 60%
is allowed.
Source: WTO notifications;  and Trade Development Board, Certificate of Origin , (Annexes IV and V) [Online].
Available at:  www.tdb.gov.sg/ieinfo/copro/.
(iv) Tariffs
(a) Structure
20. Singapore adopted the Harmonized Commodity Description and Codi ng System (HS) on
1 January 1989 and the HS96 nomenclature on 1 January 1996.12  The current applied
most-favoured-nation (MFN) tariff consists of 5,843 lines at the HS-9 digit level.13  The majority of
tariff lines are duty free (99.9%), with only four lines attracting tariffs.  All four lines, which relate to
alcoholic products, have specific rates of duty (Table III.2).  The rates range from S$0.80 per litre for
beer to S$8.00 per litre of alcohol for Samsoo;  ad valorem  equivalents for these specific rates are not
available.  According to the authorities, specific rates are preferred over ad valorem  tariffs because of
the relative simplicity in administering them and because they ensure a constant revenue.14  T h e
authorities also state that these duties are imposed for strategic considerations such as the health and
                                                     
9 WTO document G/RO/N/3, 27 July 1995.
10 The free-on-board price excludes the cost of additional charges such as insurance and freight.
11 Trade Development Board.
12 Singapore has not, however, acceded to the HS Convention.
13 There are 17 lines in Chapter 98 of the Singapore tariff, which has been omitted from the analysis
contained in this report.  Chapter 98 is country specific an d is not systematically included in all national tariffs.
For this reason, in general, Chapter 98 is not included in the tariff analysis conducted in Trade Policy Reviews.
14 Specific tariffs may, however, conceal very high ad valorem  equivalents.  Specific duties also tend to
tax all imports within a particular tariff line at the sa me rate, thereby taxing cheaper products more heavily and
encouraging domestic firms to produce less expensive equivalent goods.Singapore WT/TPR/S/67
Page 43
well-being of the community.  However, it is unclear why tariffs as well as excise duties are preferred
for some kinds of alcohol, whereas excise taxes only are charged on others.  The authorities state that
this difference is partly due to historical reasons, although the gap between taxes levied on imported
beer, stout and samsoo and their local counterparts has been narrowed over the years.
Table III.2
Applied MFN tariffs, 1999
HS Code (9-digit) Description Duty rate
2203 00 100 Stout and porter S$1.70 per litre
2203 00 200 Other beer, including ale S$0.80 per litre
2208 90 310 Samsoo (medicated) S$8.00 per litre of alcohol
2208 90 390 Samsoo (other) S$8.00 per litre of alcohol
Source: Government of Singapore.
21. Singapore removed tariffs on high-speed diesel on 25 November 1998.  Moreover, in the
aftermath of the Asian financial crisis, Singapore did not increase its applied tariff rates.
22. Customs revenue (based on customs duties plus excise taxes) has remained relatively stable
since the previous Review, at around S$1.6 bill ion (about 1% of GDP).  Revenue based only on
customs tariffs, according to the authorities, is around 1.3% of this total.
23. Singapore has no variable levies or tariff quotas.
(b) Preferences
24. Under the AFTA Common Effective Preferential Tariff (CEPT), which officially came into
effect on 1 January 1993, Singapore offered prefer ences to ASEAN member countries on 5,739 tariff
lines.  In practice, however, since Singapore had already met the 0-5% target for all products included
under the CEPT scheme by 1993, MFN tariff rates are applied to ASEAN members as well as all
other trading partners.  Preferences are also offered under the Generalized System of Preferences,
under the GSTP, and under the Commonwealth System of Preferences, although in practice MFNrates are levied.
(c) Tariff concessions
25. Tariff exemptions on dutiable goods are available to a number of end-users, including the
President, diplomatic missions and international organizations, members of the armed forces,
travellers, and crew members (Table AIII.1).  In addition, local industries importing dutiable rawmaterials for industrial use may apply for duty ex emptions from the Custom s and Excise Department.
Currently, exemptions are granted for imports of Samsoo used by three food industries.
(d) Bindings
26. As a result of the Uruguay Round and WTO Information Technology Agreements, Singapore
has bound 70.5% of its tariff (compared to 73% on average for developing countries), with a coverageof around 75.6% of the value of imports in 1998.
15  Of a total 5,843 lines at the HS 9-digit level, 4,120
lines are bound;  4,065 lines (69.6% of the tariff) have ad valorem  rates, while 55 lines or 0.9% of the
tariff carries specific duties.  In addition, of the bound lines, 100 lines, or 1.7% of the tariff, are
                                                     
15 As mentioned previously, 17 tariff lines corresponding to Chapter 98 have been omitted from this
analysis.WT/TPR/S/67 Trade Policy Review
Page 44
partially bound.16  The subsequent analysis of Singapore's bound rates was carried out on 4,065 tariff
lines or those lines with ad valorem  tariff rates (including partially bound tariff rates) only.  Although
for certain products, including agriculture, up to 100% of the tariff was bound, bindings are low in
some other product categories, in particular works of art, arms and ammunition, mineral products,
articles of stone, transport equipment, precious stones, and footwear (Chart III.1).
0102030405060708090100
Chart III.1
Share of bound tariff lines by HS section, 1999                                                             
Per cent
The bound rate analysis includes Singapore's commitments under the Information Technology Agreement 
(ITA).  Chapter 98 is excluded from the analysis.
WTO Secretariat based on information provided by the authorities of Singapore.Note:
Source : Fully bound
Partially bound
01 Live animals and prod.        
02 Vegetable products03 Fats and oils      04 Prepared food, etc.
05 Mineral products
06 Chemical and prod.07 Plastic and rubber
08 Hides and skins09 Wood and articles10 Pulp, paper, etc.
11 Textiles and articles
12 Footwear, headgear13 Articles of stones
14 Precious stones, etc.15 Base metals and prod.16 Machinery
17 Transport equipment
18 Precision instruments19 Arms and ammunition
20 Miscellaneous manuf.21 Works of art, etc.
27. The analysis also includes products bound by Singapore under the WTO Agreement on
Information Technology Products (ITA).  All bindings under the ITA are at zero rates of duty,
representing around 44% of the value of all imports in 1998.  Although the ITA was to be
implemented in four stages between 1997 and 2000, products covered by the Agreement already enterSingapore duty free.
28. In 1999, the overall average bound tariff rate was 9.7%, 16.8% for agriculture (17.7% for the
Uruguay Round definition of agriculture) and 7.9% for industrial products.  Four tariff lines at the HS
                                                     
16 Partially bound in this context means that the same tariff line consists of different products, which
may be bound at different tariff rates.Singapore WT/TPR/S/67
Page 45
9-digit level under the Uruguay Round definition of agriculture are unbound.  According to the
authorities, the lines may have been inadvertently omitted during the Uruguay Round negotiations;
Singapore plans to notify the omission to the Co mmittee on Market Access and subsequently to bind
the four tariff lines in accordance with its Uruguay Round commitments.17  The overall bound average
is expected to decline to 6.9% by 2005, once the Uruguay Round cuts are fully implemented
(Table III.3).  Bindings range up to 18.5% for ad valorem  rates and from S$1.18 per litre to
S$133.25 per kg. for specific rates. Bound tariff rates ar e particularly high for vegetable products, fats
and oils, prepared food, hides and skins, textiles, and livestock (Chart III.2).
Table III.3
Bound tariff rates, 1999, 2000 and 2005
(No. of lines and per cent)
No. of lines 1999 2000 2005
Overall average 4,065 9.7 9.0 6.9
Agriculture (HS 01-24) 838 16.8 15.4 9.6
Agriculture (Uruguay Round definition) 779 17.7 16.0 9.5
Industrial products (HS 25-97) 3,227 7.9 7.4 6.2
Note: Analysis based only on lines with ad valorem  tariff rates (55 lines carry specific tariff rates).
Source: WTO Secretariat, based on data provided by the authorities.
29. Given that Singapore's average applied tariff in 1999 was virtually zero the decision to bind
only 70% of the tariff is perhaps open to question.  An overall average bound rate of 9.7% alsorepresents a considerable gap between applied and bound rates even after final bound rates are
implemented in 2005.  The gap, according to the authorities, is maintained for negotiation purposes in
future trade rounds.
30. Singapore notified the WTO Committee on Market Access that it reserved its right to modify
its Schedule during a three-year period beginning 1 January 1997, in accordance with
Article XXVIII.
18
(v) Other charges levied on imports
(a) Excise tax
31. Excise duties are charged on four categories of products, alcohol, tobacco, petroleum products
and motor vehicles (86 tariff lines at the HS-9 digit level) regardless of whether imported or locally
produced.  All except those levied on motor vehicles are specific or mixed rates (Table AIII.2).
Ad valorem  rates on motor vehicles are 7% for taxis, 12% for motor cycles and scooters, and 31% for
all other motor vehicles.  Excise taxes accounted for 7.3% of total taxes collected in fiscal year 1998
(Table III.4).
                                                     
17 Under the Agreement, 100% of tariff lines according to the Uruguay Round definition of agriculture
were to be bound.  The four lines that are unbound in Singapore's Schedule are HS 051000200, 170410000,190190920 and 190190960.
18 WTO document G/MA/52, 29 January 1997.WT/TPR/S/67 Trade Policy Review
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02468101214161820
Chart III.2
Average bound tariff rates by HS section, 1999                                                             
Per cent
The bound rate analysis includes Singapore's commitments under the Information Technology Agreement 
(ITA).   It includes fully and partially bound rates.  Chapter 98 is excluded from the analysis.
WTO Secretariat based on information provided by the authorities of Singapore.Note:
Source : Total average bound rate
(9.7%)
01 Live animals and prod.        
02 Vegetable products03 Fats and oils      04 Prepared food, etc.
05 Mineral products
06 Chemical and prod.07 Plastic and rubber
08 Hides and skins09 Wood and articles10 Pulp, paper, etc.
11 Textiles and articles
12 Footwear, headgear13 Articles of stones
14 Precious stones, etc.15 Base metals and prod.16 Machinery
17 Transport equipment
18 Precision instruments19 Arms and ammunition
20 Miscellaneous manuf.21 Works of art, etc.
(b) Goods and services tax
32. Singapore charges a flat 3% tax on most goods and services irrespective of whether
domestically produced or imported, with the exception of "the grant, assignment or surrender of any
interest in, or right over, any residential properties";  and financial services as listed in the Fourth
Schedule to the GST Act.  Exports of goods, as well as internationally traded services, are exempt
from payment of the GST as are traders with sales of less than S$1 million per year.  The GST is a
value-added tax levied both at the border (in the case of imports) and internally at all stages ofproduction and sale.  Although levied on producers and sellers of goods as well as on providers of
services, the tax tends to be ultimately passed on to consumers, with the producers and sellers of
goods and service providers acting as collection agents.  Whereas, the Customs and Excise
Department is in charge of GST collection at th e border, the Inland Revenue Authority of Singapore
(IRAS) is in charge of GST collection internally.  Goods imported and stored in a Free-Trade Zone, inany warehouse licenced by Customs, or in a bonded warehouse, are also exempt from payment of the
GST unless released into the domestic market.  Under the Major Exporters Scheme (MES), payment
of GST may be deferred by a GST-registered trader at the point of importation;  the GST maySingapore WT/TPR/S/67
Page 47
subsequently be paid when the goods are sold domestically.  The MES is available to exporters who
export 51% or more of their total supplies;  MES status is granted by the Comptroller of GST.19
33. The GST was introduced in April 1994 and the rate has remained at 3%.  In fiscal year 1998,
the GST accounted for around 8.3% of total taxes collected (Table III.4).
Table III.4
Tax revenue, fiscal years 1995-99
(S$ million and per cent)
1995 1996 1997 1998 1999a
Total tax revenue 19,896.1 23,205.3 23,011.1 20,870.8 18,175.6
(per cent of GDP) (15.9) (17.5) (15.8) (14.5) (12.8)
Per cent of total tax revenue
Income tax 44.1 47.2 44.3 49.3 45.4
Corporate tax 29.6 27.4 29.6 27.8 24.2
Personal tax 11.4 11.7 11.7 12.9 12.7
Contributions by statutory boards 3.2 8.1 3.0 8.5 8.5
Asset taxes 8.8 7.9 10.1 7.1 7.7
Property tax 8.5 7.6 9.9 6.9 7.4
Estate duty 0.3 0.3 0.3 0.2 0.2
Motor vehicles tax 10.8 8.6 7.6 7.1 8.0
Additional registration fees 6.1 4.4 3.4 2.9 3.4
Road tax 4.0 3.6 3.6 3.7 4.0
Special tax on heavy-oil engines 0.6 0.5 0.5 0.5 0.5
Customs and excise taxes 8.1 7.2 7.1 7.3 7.4
Petroleum products 2.9 2.6 2.6 2.7 2.5
Tobacco 1.8 1.8 1.7 1.9 2.1
Liquors 1.6 1.4 1.5 1.6 1.8
Motor vehicle import duty 1.8 1.4 1.2 1.1 1.0
GST 8.2 7.5 8.4 8.3 9.1
Betting tax 5.2 5.0 5.6 6.5 7.1
Stamp duty 6.4 8.1 7.3 4.3 5.0
Selective consumption tax 0.3 0.3 0.4 0.6 0.8
Other 8.1 8.2 9.1 9.5 9.6
a Budget book.
Source: Republic of Singapore, Annual Budget , various years.
(vi) Import prohibitions and licensing
34. In 1998, around 19.2% of all tariff lines were subject to some form of import restriction,
either in the form of import prohibitions (0.6% of all tariff lines), or through automatic and
non-automatic licensing (18.6% of all tariff lines) (Table III.5).  Compared to 1995, this represents a
small decline in the percentage of the tariff subject to import prohibitions (0.7%) and to import
licensing (19.9%), although the percentage of tariff lines subject to non-automatic licensing has
increased from 7% to 8.4%.
                                                     
19 Exporters who export 50% or less of their supplies may also be included under the MES, but must
furnish bankers' guarantees in support of their application.WT/TPR/S/67 Trade Policy Review
Page 48
Table III.5
Scope of restrictions affecting imports, 1995 and 1998
1995 1998
Import restriction
No. of tariff lines Lines (% of total) No. of tariff lines Lines (% of total)
Prohibited imports 38 0.7 35 0.6
Import licensing 1,161 19.9 1,088 18.6
Automatic 750 12.8 595 10.2
Non-automatic 411 7.0 493 8.4
Source: Information provided by the Singapore authorities.
35. Imports of certain items are prohibited under the Regulation of Imports and Exports Act
(272A), for reasons of public health and safety, environmental protection, national security, and inaccordance with international agreements and Unit ed Nations Security Council regulations.  Among
the changes in Singapore's policy on import prohibitions are new prohibitions on controlled
telecommunications equipment including scanning receivers and military communications equipment,
and cosmetics containing prohibited substances or additives above the stipulated limit (Table III.6).
20
Singapore also requires that each Singapore registered car leaving Singapore for Malaysia have its
tank three-quarters full of gasoline.
36. Singapore regulates imports of a number of products through automatic and non-automatic
import licensing for health, safety and environmental, and national security reasons, as well as to meet
obligations arising from international agreements (Table III.7).  A non-automatic licensing regime is
also maintained for rice to ensure a consistent and adequate stockpile for domestic consumption(Chapter IV(2)(iii)).
Table III.6
Import prohibitions, 1996 and 1999
Products, 1996 Purpose Status in 1999
Toy coins and toy currency notes National security Removed
Chewing gum Public safety Unchanged
Cigarette and table lighters in the shape of a pistol or
revolverPublic safety Unchanged
Fire-crackers Public safety Unchanged
Medicines containing amidopyrine, noramidopyrine,
amygdalin, danthron, pangamic acid and suprofenPublic health Unchanged
Volcanic rock aggregates not exceeding 40 mm. Public safety Unchanged
All goods originating from or consigned to Iraq UN Security Council resolutions Unchanged except for imports of
petroleum and petroleum products
under the UNSCs "Oil for Food"
programme which are permitted.
PCB and its substitutes Environment Unchanged
Asbestos brake and clutch linings in vehicles registered
after 1 April 1995Environment Unchanged
Used motor vehicles more than three years old To minimize traffic congestion and
pollutionUnchanged
Table III.6 (cont'd)
                                                     
20 APEC Secretariat (1999).Singapore WT/TPR/S/67
Page 49
Products, 1996 Purpose Status in 1999
Certain ozone depleting substances meant for local
distribution/consumption
- Halon 1211 and five extinguishers using halon 1211
- Halon 1301 and fire protection systems using halon        1301
- Halon 2402
- Carbon tetrachloride- 1, 1, 1 – trichloroethane (methyl chloroform)
- CFCs 11, 12, 113, 114, 115 as a refrigerant in new
        air-conditioning and refrigeration equipment except        for automotive air-conditioners in vehicles
        registered before 1 January 1995 and domestic
        refrigerators- Other CFCs
- Hydrobromofluorcarbons (HBFCs)Protecting ozone layer (in
accordance with the MontrealProtocol on Substances that Deplete
the Ozone Layer)Unchanged
Rhinoceros horn, worked, unworked or prepared, waste
and powderPreventing extinction (CITES) Unchanged
Ivory for commercial consignments Preventing extinction (CITES) Unchanged
Tiger products Preventing extinction (CITES) Unchanged
Cosmetics containing prohibited substances/additives
above the stipulated limitsPublic health Added
Controlled telecommunications equipment such as
scanning receivers, military communication equipment
and automatic call divertersNational security Added
Asbestos in the form of crocidolite, amosite and
amphiboles and products containing these forms of
asbestosEnvironment Added
Asbestos in the form of chrysotile except for
manufacturing of gasketsEnvironment Added
Aerosol products except medical aerosols Environment Added
Plants of rubber, cocoa, coconut and oil palm from
Central and South America and West and Central AfricaTo ensure plant health Added
Source: Singapore authorities.
37. Since its last Review, Singapore has added to the list of products requiring non-automatic
import licensing, Chinese proprietary medicines, scheduled chemicals under the Chemical Weapons
Convention, controlled equipment, materials or subs tances useful for the manufacture of controlled
drugs and merchandise, and products containing a photograph, drawing or design resembling, or used
on, Singapore currency notes and coins;  non-automatic import licensing for full colour photocopying
machines was discontinued from 31 December 1998.
38. As of 17 April 1998, a permit is required for imports of mastering equipment for CDs,
CD-ROMs, VCDs, DVDs and DVD-ROMs;  according to the authorities, this requirement is part of a
multi-pronged effort to counter intellectual property rights violations (section (4)(v)(e)).
39. Procedures for obtaining automatic and non-automatic import licences are essentially
unchanged.  In general, all persons and companies are equally eligible to apply for an import licence,applications for which are usually made to a single  government agency.  According to the authorities,
import licences are normally granted if the applicant meets all the stipulated criteria.  Subsequently, if
licences issued are not utilized by the applicant, no penalties are imposed.  Licences that are not
utilized, however, may not be traded.
40. Singapore issues import quotas for chemicals listed under Schedule 1 of the Chemical
Weapons Convention.WT/TPR/S/67 Trade Policy Review
Page 50
Table III.7
Products covered by automatic and non-automatic licensing
Product Controlling authority
Automatic licensing
Fresh fruit and vegetables, plants and plant produce, meat and meat
products, animals/birds/eggs/biologics, medicaments, animal feed,
endangered species, imports, export or transshipments of fish other
than ornamental fish, import, export or transshipments ofornamental fish, milk powder – skimmed (coloured for animal
feed).Primary Production Department, Ministry of National
Development
Amusement machines, coin- or disc-operated, including pin-tables,shooting galleries and cinematography machines.Trade Development Board, Ministry of Trade and Industry
Scrambler or encryption hardware or software capable of
re-arranging the signs, signals, writing, sounds or intelligence for
the purpose of secrecy.Trade Development Board, Ministry of Trade and Industry
Mastering equipment and replication equipment for any of the
following:Trade Development Board, Ministry of Trade and Industry
- CD
- CD-Rom
- VCD
- DVD, and DVD-Rom
Publications, gramophone records, paintings and prints. Films and Publications Department, Ministry of Information
and the Arts
Films, video tapes and video discs. Films and Publications Department, Ministry of Information
and the Arts
Cellulose nitrates, matches, axes, SOS shrill alarms, handcuffs,Christmas crackers, articles of clothing intended as protectionagainst attack, including bullet-proof vests;  steel helmets, toy guns
including pistols and revolvers.Arms and Explosives Branch, Singapore Police Force,
Ministry of Home Affairs
Certain ozone depleting substances (imports for re-exports): Pollution Control Department, Ministry of the Environment
- Halon 1211 and fire extinguishers using Halon 1211 and Trade Development Board, Ministry of Trade and
- Halon 1301 and fire protection systems using Halon 1301 Industry
- Halon 2402
- Carbon tetrachloride
- 1, 1, 1 – trichloroethane (methyl chloroform)
- Chlorofluorocarbons (CFCs) 11, 12, 113, 114, 115 as a
refrigerant in new air-conditioning and refrigerationequipment except for automotive air conditioners in vehicles
registered before 1 January 1995 and domestic refrigerators.
- Other CFCs (e.g. CFCs 13, 111, 112, 211 – 217)
- Hydrobromofluorocarbons (HBFCs)
Non-automatic licensing
Artificial sweetening agents, irradiated foods Food Control Department, Ministry of the Environment
Plants for further propagation including seeds, soil, flowers, fruit
and vegetables from Brazil, Caribbean Islands, Columbia, CostaRica, Guatemala, French Guyana, Honduras, Mexico, Nicaragua,
Panama, Peru, El Salvador, Venezuela, etc.Phytosanitary and Plant Quarantine Section, Primary
Production Department, Ministry of National Development
Endangered species. Phytosanitary and Plant Quarantine Section, Primary
Production Department, Ministry of National Development
Fruit or jackpot machines. Commissioner of Estate Duties, Inland Revenue Authority,
Ministry of Finance
Table III.7 (cont'd)Singapore WT/TPR/S/67
Page 51
Product Controlling authority
Hazardous substances (poisons). Pollution Control Department, Ministry of Environment
Radioactive materials and irradiating apparatus. Radiation Protection Inspectorate, Institute of Science and
Forensic Medicine, Ministry of Health
Medicines, poisons, drugs, Chinese proprietary medicines andCategory 1 cosmetic products.National Pharmaceutical Administration, Ministry of Health
Controlled telecommunication equipment (other than those
specified under the prohibited import list).Telecommunications Authority of Singapore, Ministry of
Communications and Information Technology
Merchandise/product containing a photograph, drawing or designresembling or used in/on Singapore currency notes and coins.Board of Commissioners of Currency, Ministry of Finance
Rice. Trade Development Board, Ministry of Trade and Industry
Poppy seeds (Kaskas). Central Narcotics Bureau, Ministry of Home Affairs
Controlled equipment, materials or substances used for the
manufacturing of controlled drugs.Central Narcotics Bureau, Ministry of Home Affairs
Scheduled chemicals under the Chemical Weapons Convention
(CWC).National Authority (Chemical Weapons Convention)
Arms and explosives. Arms and Explosives Branch, Singapore Police Force,
Ministry of Home Affairs
Source: Singapore authorities.
(vii) Anti-dumping, countervailing and safeguard measures
(a) Procedures
41. The Countervailing and Anti-dumping Duties Act, was passed by Parliament in
October 1996.  Under the provisions of the Act, the Minister for Trade and Industry may impose
countervailing or anti-dumping duties on an import if it is determined that the export price of the good
is less than the normal value, in the case of dumping, or that a countervailable subsidy is being
provided;  and that the import, through the effects of the subsidy or dumping, causes, or threatens to
cause, material injury to Singapore industries producing like goods, or retards the development of
such domestic industry in Singapore.  The total period for completing a preliminary investigationfrom the date of publication of the initiation is, in general, 90 days;  final measures must be imposed
within 120 days of the date of publication of the notice of preliminary measures for countervailing
and 180 days for most anti-dumping cases (Annex III.1).  The tasks of conducting preliminary and
final investigations are carried out by the same agency, in this case, the Ministry of Trade and
Industry.
42. Investigations are to be terminated immediately if it is determined that the margin of dumping
or countervailable subsidy is de minimis  or that the volume of imports, actual or potential, or the
injury, is negligible.
21
43. If any interested party disagrees with the decisions taken by the Minister, they may request a
review of the case by the Anti-Dumping Tribunal.  All such applications for a review must be filed
                                                     
21 The margin of dumping is considered to be de minimis  if it is less than 2% of the export price;  the
volume of imports is regarded as negligible if the volume of imports of the good in question from any onecountry accounts for less than 3% of imports of like goods into Singapore, unless goods from countries thatindividually account for less than 3% of imports of like goods collectively account for more than 7% of likegood imports into Singapore (Article 24 of the Countervailing and Anti-dumping Duties Act, 1996).WT/TPR/S/67 Trade Policy Review
Page 52
within 30 days of the findings (or their publication or notification, depending on the circumstances).
The Tribunal consists of a Chairman and two members all of whom are appointed by the Minister for
Law to hold office for up to three years.  The current Chairman of the Tribunal is the Senior District
Judge and its members are professionals from the private sector.  The Tribunal bases its decision on
the evidence presented at the time of the original investigation and may not request further evidence
regarding the case.  There appears to be no time-limit within which the Tribunal must report itsfindings.
(b) Measures
44. Singapore currently has definitive anti-dumping duties on imports of steel reinforcement bars
from Malaysia and Turkey (Table III.8).  The measures were imposed following a review
investigation of anti-dumping action taken previous ly against imports of these products from the two
countries.
Table III.8
Anti-dumping measures, 1996 to 30 June 1999
Provisional measures Final measures
Product Exporting country Date of initiation
Date, dumping margin Date, dumping margin
Steel reinforcement
barsMalaysia 16.12.1994 27.01.1995
(S$111 per tonne)29.07.1995
(S$54 per tonne)
Steel reinforcement
barsTurkey 30.12.1994 10.02.1995
(S$13 to S$96
per tonne12.12.1995
(S$0 to S$59 per tonne)
Steel reinforcement
bars (R)Malaysia 24.01.1997 Nil 23.01.1998
(S$54 per tonne)
Steel reinforcement
bars (R)Turkey 24.01.1997 Nil 23.01.1998
(S$0 to S$37 per tonne)
(R): Review.
Source: Based on notifications made by the Government of Singapore.
45. Singapore notified the Committee on Subsidies and Countervailing Measures that no
countervailing actions had been taken during the period 1 January 1996 to 30 June 1999.22
(c) Safeguards
46. Singapore has also notified the Committee on Safeguards that it does not have any legislation
or regulations on safeguard measures and has no intention of enacting legislation on safeguards in the
foreseeable future.23
47. In addition to the WTO Agreement on Safeguards, Singapore may invoke emergency
safeguard measures under Article 6 of the Common Effective Preferential Tariff (CEPT) underAFTA.
24  ASEAN members may invoke emergency safeguard measures if a particular CEPT import
increases in a manner as to cause, or threaten to cause, serious injury to an industry producing like
products in the importing ASEAN country.  The ASEAN country may, in such a case, suspend CEPT
preferences provisionally for a maximum period of 200 days.  During this time, the member country
must initiate an investigation to determine whether there is clear evidence that increased imports have
                                                     
22 WTO document G/SCM/N/40/Add.1/Rev.2, 20 October 1999.
23 WTO document G/SG/W/138, 11 March 1996.
24 In 1998, it was agreed that the Interpretative Notes of the CEPT Agreement on Article 6 (Emergency
Measures) would be aligned with the WTO Agreement on Safeguards.Singapore WT/TPR/S/67
Page 53
caused, or are threatening to cause, serious injury.  The authorities consider the ASEAN emergency
safeguard mechanism to be in line with Articles 6 and 7 of the WTO Agreement on Safeguards.25
(viii) Government procurement
(a) Introduction
48. Singapore deposited its instrument of accession to join the WTO Agreement on Government
Procurement on 20 September 1997.26  The Government Procurement Act, 1997, was gazetted on
2 January 1998.  There is no centralized procurement agency in Singapore;  procurement is carried out
by individual ministries, departments and statutor y bodies.  Procurement policies are formulated by
the Ministry of Finance, which seeks to ensure that public procurement remains transparent, open, and
fair.  Some centralized purchasing is carried out by the Ministries of Finance (the Expenditure and
Procurement Policies Unit, EPPU), Defence, an d Health, and by the National Computer Board.
49. The annual value of government procurement has been declining since 1995, falling from
almost 6% of GDP in 1995 to around 3% in 1998 (Table AIII.3).
(b) Tendering procedures
50. With the exception of a 2.5% preference margin granted to ASEAN members, for the
procurement of goods and auxiliary services, under the ASEAN Preferential Trading Arrangement,Singapore grants national treatment to all suppliers, with tenders open to domestic and foreign
suppliers alike.  The preferential ASEAN margin of 2.5% may not exceed US$40,000 per tender and
is applied on the basis of the lowest evaluated and acceptable tender.
51. Depending on the overall value of the purchase, one of three procurement procedures are
generally followed:  small value purchases, quotations, or tendering.  For procurement of goods and
services with a value up to S$1,000, procurement may be carried out by direct purchases from known
sources.  For goods or services valued between S$1,000 and S$30,000, quotations are invited fromthree or more domestic and/or foreign suppliers.  The suppliers are approached directly by the
procuring agency.  Responsibility for such purchases lies with two officials, one to invite, receive,
evaluate and recommend a supplier, and the other to approve the choice made by the first official.  For
procurement valued at above S$30,000, formal tenders are called.
52. Three different types of tender may be invited by procurement agencies: open, selective or
limited.  Open tenders are advertised in the local newspapers and published in either the
National  Gazette or the Government Internet Tendering In formation System (GITIS).  Any supplier
may participate in such tenders.  Optionally, particularly for more complex tenders, procurement
agencies may call for a two-stage, selective tender.  For such tenders, an open invitation is first
published in the local newspapers, inviting interested suppliers to submit themselves for pre-tenderqualification.  All qualified suppliers may apply for such pre-tender qualification.  Following an
evaluation of their capabilities to fulfil the tender requirements, a shortlist is drawn up from among
the suppliers who responded to the initial invitation from which suppliers are invited to submit their
tenders.  Limited tenders are used in exceptional circumstances, in accordance with the criteria in
Article XV of the WTO Government Procurement Agreement.  The circumstances and reasons for
                                                     
25 Article 6 also allows for the use of quantitative restrictions or other import limiting measures to deal
with such a situation or stop a serious decline in its monetary reserves.
26 WTO document WT/Let/179, 26 September 1997.  The Government Procurement Agreement
entered into force for Singapore on 20 October 1997.WT/TPR/S/67 Trade Policy Review
Page 54
granting the procurement agency use of limited tenders are endorsed by the Permanent Secretary and
submitted for approval to the Tenders Board.27
53. Apart from making available notices of open and selective tenders, the GITIS also publishes
related details of tender offers received and the subsequent awards.  The GITIS site also contains
information on suppliers who have been evaluated by the relevant Government Registration
Authorities for procurement purposes.  Singapore has also developed the Mindef Internet ProcurementSystem (MIPS), which allows electronic submission of quotations, issuing of purchase orders to
suppliers, and invoicing by suppliers.  The MIPS, currently used by the Ministry of Defence, is being
enhanced and extended to all other Singapore public sector procurement agencies.  Singapore
participated in demonstrations of the Use of In formation Technology in Government Procurement at
the WTO in June 1998.
54. All suppliers are required to be evaluated and registered with the relevant Government
Registration Authorities as a criterion for award of tender.  There are three registration authorities:
the Expenditure and Procurement Policies Unit (EPPU), for general goods and services;  the
Pharmaceutical Department of the Ministry of Health, for medical supplies and healthcare related
goods and services;  and the Construction Industry Development Board, for construction andconstruction services.  The financial and track records of the suppliers are evaluated by these
registration authorities, which issue suppliers with certificates allowing them to participate in future
procurement tenders without undergoing separate evaluation for each tender.  Registration, which
requires payment of processing fees, is valid for three years.
28
55. Complaints related to Government procurement may be directed to the Ministry of Finance,
which investigates all complaints and appeals from suppliers, and initiates any remedial action if
judged necessary.  In addition, a Government Procurement Adjudication Tribunal, set up under theGovernment Procurement Act, will handle complaints of non-compliance with the WTO Agreement
on Government Procurement.
29
(ix) State trading
56. Singapore has notified the Secretariat that it does not have any state trading enterprises within
the meaning of the working definition in paragraph 1 of the Understanding on the Interpretation ofArticle XVII.
30
(x) Import surveillance
57. Singapore does not carry out any import surveillance activities.
                                                     
27 WTO document, GPA/W/10, 5 March 1996.
28 The requirements for registration include:  proof of financial and technical competence;  a record of
previous supplies of the product for which the contractor  wishes to register;  a summary record of trading
transactions undertaken in the past;  the names and addr esses of two reputable clients who can attest to the
quality and reliability of services provided by the contractor;  and registration with the Registry of Companies
and Businesses.  In addition, in some cases, foreign contractors intending to register for a financial categoryabove S$500,000 need to be incorporated under Singapore Law (Endeshaw, 1999).
29 APEC Secretariat (1998).
30 WTO document G/STR/N/3/SGP, 1 December 1997.Singapore WT/TPR/S/67
Page 55
(xi) Standards, sanitary, and phytosanitary measures
(a) Standards, testing, and conformity assessment
58. The Singapore Productivity and Standards Board (PSB) was established on 1 April 1996, the
result of a merger between the National Productivity  Board and the Singapore Institute of Standards
and Industrial Research (SISIR).  The PSB operates  from within the Ministry of Trade and Industry,
and is charged with developing and establis hing standards, and enhancing Singapore's
competitiveness.31  It is also Singapore's WTO enquiry point for standards.32
59. The PSB is headed by a Chairman and a 17-member Board of Directors (including the
Chairman, Deputy Chairman and the Chief Executive of the PSB) representing industry, trade unions,
government, professionals, and academics.  The industry-led Standards Council, appointed by the
PSB Board is responsible for providing strategic di rections for the formulation and implementation of
national standards.  The process of formulating and establishing national standards and codes of
practice is carried out by 11 Council Committees appointed by the Standards Council:  two Products
Standards Committees (PSCs), seven Standards Committees (SCs) and two Practice Committees
(PCs).33  The PSCs are responsible for establishing product standards, the PCs for establishing codes
of practice, and the SCs for establishing product standards and codes of practice.  Each of theCommittees includes representation from government departments, trade and manufacturing
organizations, professional institutions, and consumers.
60. National Standards, which are voluntary, are developed by consensus, involving participation
by industry, academia, government, and other relevant organizations.  A standard may be requested
by any party and will be considered by the Standards Council as long as the need for it is justified.
61. National standards are developed by the PSB's Standards Division through inputs from
industry, government, consumers, and other tertiary institutions.  Following a request for a newstandard, the Standards Council considers the request against the overall national priority;  the
relevant standard is prepared by a Technical Committee set up under each Council Committee, which
submits the draft standard for approval to the Standards Committee.  The draft standard is then
submitted for public comment, some or all of which may be incorporated into the draft standard by
the Council Committee.  Draft standards are available for public comment for 60 days.  The PSBpublishes the status of the standardization programmes at intervals of six months, as required under
the WTO Code, and notices on standards are published in its bimonthly newsletter – the
Standards and Testing News .  Following any changes, the standard is approved by the Council
Committee and appears in the National  Gazette  before it is printed as a Singapore Standard.  The
process of developing and approving a standard takes around 36 months;  the standard is gazettedabout one month later.
62. In establishing standards, Singapore's policy is to adopt internationally accepted standards
such as those developed by the International Organi zation for Standardization (ISO), the International
Electrotechnical Commission (IEC), and Codex Alim entarius.  At the end of March 1999, Singapore
                                                     
31 According to the auth orities, total factor productivity growth between 1990 and 1998 averaged
around 1.2%.
32 WTO document G/SPS/ENQ/1, 15 March 1995.
33 The Committees are:  the Building Materials Pr oduct Standards Committee;   the Electrical and
Electronic Product Standards Committee;  the Chemical  Standards Committee;  the Food Standards Committee;
the Industrial Safety Standards Committee;  the Information Technology Standards Committee;  the MechanicalStandards Committee;  the Medical Technology Stan dards Committee;  the Packaging Standards Committee;
the Construction Industry Practice Committee;  and the Electrical Industry Practice Committee.WT/TPR/S/67 Trade Policy Review
Page 56
had 850 standards, of which over 30% were aligned with international standards (Tables III.9 and
III.10).  This ratio has increased from around 24% in March 1997.  Although the ratio of Singapore
standards that are similar to international standards is relatively low, alignments in certain areas,
notably in electrical and electronic products, environment, information technology, machinery,
medical, and quality control are much higher than 50% (Table III.10).  Alignment with international
standards is relatively low in industries such as construction and industrial safety, in which standardstend to be more country and environment specific and in which the authorities say there is a lack of
corresponding international standards.
Table III.9
Standards in Singapore, 1995-99
1995 1996 1997 1998 1999a
Total number of standards 704 736 755 829 850
Per cent equivalent to ISO standards .. 15.5 15.6 20.9 21.53
Per cent equivalent to IEC standards .. 4.9 7.8 8.6 8.47
Total per cent equivalent to international
standards.. 20.4 23.4 29.5 30.0b
.. Not available.
a As at 31 March 1999.
b The percentage figure for the total number of standards equivalent to international standards is derived from the total number  of
standards classified under ISO/IEC guide 21, 1981, as either equivalent or identical.  This figure is different from the figure s
showing alignment of national standards with international standards in Table III.10.
Source: Data provided by the Singapore authorities.
Table III.10
Alignment of Singapore standards with international standards, 1997-99
31 March 1997 31 March 1998 31 March 1999
Sector/Industry No. of
Singapore
standardsPercentage
aligned with
international
standardsNo. of
Singapore
standardsPercentage
aligned with
international
standardsNo. of
Singapore
standardsPercentage
aligned with
international
standards
Quality 6 100.0 6 100.0 7 100.0
Environment 5 100.0 5 100.0 5 100.0
Information technology 7 42.9 7 42.9 23 56.6
Electrical/electronic industry 164 41.5 170 51.8 178 56.2
Mechanical 76 36.8 96 52.1 128 59.4
Chemicals 172 26.7 172 26.7 175 26.3
Food 67 16.4 68 16.2 69 17.4
Industrial safety 21 9.5 22 9.1 23 8.7
Packaging 33 3.0 34 2.9 45 20.0
Building/construction 132 0.8 141 1.4 142 1.4
Other 53 22.6 53 18.9 53 18.9
Medical .. .. 2 100.0 2 100.0
Total 736 24.9 776 29.1 850 33.4
.. Not available.
Source: Data provided by the Singapore authorities.
63. In 1997 the PSB introduced the Product Listing Sc heme (PLS);  products that are tested and
are found to comply with the relevant standard ar e listed in the Directory of certified PLS productsSingapore WT/TPR/S/67
Page 57
and issued with a PSB Certificate of Compliance.34  The PSB, through its Testing and Evaluation
Division, also provides testing services for mechan ical and fire-fighting equipment;  electrical and
electronic products; and in the fields of chemicals and microbiology.
64. Other activities include upgrading of the national measurement infrastructure and helping
companies to meet local and overseas quality and safety requirements.  In this respect, the PSB
provides training courses on calibration and measurement and has recently developed a jointcertificate programme on calibration with Ngee Ann Polytechnic;  for quality and safety requirements,
the PSB has trained over 200 food-industry personnel and assisted ten companies to establish their
hazard analysis critical control point syst ems to meet local and overseas requirements.
65. The PSB has also sought international accreditation.  It has been accredited by the
Dutch Council for Accreditation (RvA) for its ISO 9000 and QS 9000 schemes and is currently in thefinal stages of receiving accreditation from the RvA for its ISO 14000 scheme.  The PSB is also a
member of the International Certification Network (IQNet), an international organization of 26 major
national certification bodies, and has issued more than 150 IQNet certificates.  Bilateral memoranda
of understanding (MOUs) have also been signed with certification bodies in major markets.
35
66. Singapore has been involved in the APEC voluntary action plan for member States.  In 1997,
the first ever Asia-Pacific Laboratory Accreditation Cooperation (APLAC) multilateral mutual
recognition arrangement was signed;  the Singapore Laboratory Accreditation Scheme (SINGLAS)
was one of the signatories.  The SINGLAS Secretariat, which was managed by the PSB, was handed
over to the Singapore Accreditation Council (SAC) in 1998-99.36  Singapore also participates in the
activities of key standards organizations including the ISO, the IEC and the Codex Alimentarius
Commission of the Food and Agriculture Organization/World Health Organization.37
67. As part of the goal to raise productivity growth, industry is actively encouraged to raise the
quality of goods and services and to bring them up to international standards through various national
quality management system certification schemes.  Through its Quality Assurance Division, the PSB
offers a series of related certification schemes for organizations wishing to improve their business
performance and quality of products.  The certification schemes are open for application by all
industries, including for imports.  In 1998, the PSB launched the ISO 9000 certification scheme,which has since resulted in almost 1,000 certificates being issued.  Other schemes include the PSB
ISO 14000 and 14001, relating to environmental management;  and the QS 9000 quality management
                                                     
34 As of April 1999, 59 products were on the PLS list.  They include fire-fighting equipment, sanitary
fittings, and building materials.
35 For example, Singapore has MOUs with the Japan Audit and Certification Organization (JACO) on
ISO 14000 environmental management certification, allowing parallel ISO 14000 certification from JACO at noextra cost for companies already certified by PSB in  Singapore;  the Electrical  and Mechanical Services
Department of Hong Kong, which recognized PSB as a certification body for testing of electrical and electronic
product safety and electromagnetic compatibility;  and the Japan Electrical Safety and Environment TechnologyLaboratories (JET) on "T-Mark" and product testing concerning electrical and electronic safety, allowing
manufacturers exporting to Japan to be accepted by JET without further testing.
36 The SAC was established in October 1996 as a result of a memorandum of understanding between
the Ministry for Trade and Industry and the Singapore Confederation of Industries.
37 The PSB is a member of 214 ISO/IEC standards committees and working groups, and has been a
member of the International Bureau of Weights and Measures (BIPM).  It was among 36 signatories of a draftdocument to establish mutual recognition of national measurement standards and calibration certificates issuedby national metrology institutes.  Singapore has also been active in developing standards for services andhosting seminars on the subject.WT/TPR/S/67 Trade Policy Review
Page 58
systems certification scheme, launched in June 1997, which relates to mandatory schemes introduced
by the three largest U.S. automobile manufacturers.38
(b) Technical regulations
68. Mandatory technical regulations apply to a number of sectors including machinery,
telecommunications, medical devices, electrical and electronic products, and food;  the regulations
apply equally to imported and domestically produced goods.  The PSB administers the mandatorySingapore Consumer Protection (Safety Require ments) Registration Scheme, under the Consumer
Protection (Safety Requirements) Regulations, (Cap 53).  A total of 31 items are covered by the
scheme, most of them electrical and electronic appliances, compared with 17 at the time of the
previous Review.
39  The Consumer Protection (Safety Requirements) Regulations (Cap 53), gazetted
in 1991, currently has around 7,300 models of controlled goods registered, all required to carry theSingapore Safety Mark.  According to the authorit ies, the scheme has been successful:  the total
number of reported accidents involving electrical, electronic, and gas appliances has declined from 42
in 1993 to around 10 since 1995.
40
69. Mandatory technical regulations are also administered by the Department of Industrial Safety
(DIS), the Telecommunications Authority of Sing apore (TAS), the Ministries of Health and
Environment, and the Public Utilities Board (Table III.11).
Table III.11
Technical regulations in Singapore
Regulation/Legislation Implementing agency Description of the regulations
Consumer Protection
(Safety Requirements)
Regulations, (Cap 53)Singapore Productivity and
Standards BoardCurrently 31 categories of consumer products (27 categories of
electrical and electronic products and 4 categories of gas products).
Medicines Act, (Cap 176) Ministry of Health The Medicines Act defines criteria for safety, quality and efficacy.
Product registration and inspection of the manufacturer must be in
conformance with Good Manufacturing Practice (GMP) Standards.
Public Utilities (Electricity)
Regulations, 1997Public Utilities Board 14 electrical accessories and equipment that must be tested to conform
to required standards.
Sewerage and Drainage Act,1999Public Utilities Board;
Sewerage DepartmentSanitary wares, pipes and fittings, and frames and covers must be tested
before being installed.
Type approval of Line
Terminal EquipmentTelecommunications
Authority of SingaporeType Approval Schemes – (i) Equipment Submission Procedure;  (ii)
Manufacturer's Declaration of Conformity (MDC) Procedure;  and (iii)
Equipment under the General Approval (GAP) Scheme.
Type Approval of Radio-communication EquipmentTelecommunications
Authority of SingaporeType Approval Schemes – (i) Equipment Submission Procedure and
(ii) Manufacturer's Declaration of Conformity (MDC) Procedure.
Environment Pollution
Control (VehicularEmissions) Regulations,
1999Ministry of Environment Emission standards conform with EEC Emission Directives 93/59 EEC
(for new diesel-driven passenger cars and for new light commercialvehicles equal to or below 3.5 tonnes) and 91/542 EEC (for new
heavy-duty vehicles above 3.5 tonnes).
Source: Singapore authorities.
                                                     
38 Singapore Productivity and Standards Board (1998).
39 The list consists of adaptors, air coolers, coffee makers and similar appliances, components of the
LPG gas system, cooking ranges, decorative lighting fixtures,  gas canisters, gas cookers, hair dryers, highfidelity sets, home computer systems, immersion water heat ers, electric irons, electric kettles, laser disc sets,
microwave ovens, mixers and similar appliances, mobile split air conditioners, portable gas cooking appliances,
refrigerators, rice cookers, room air  conditioners, table/st anding lamps, table/standing fans, televisions, toasters,
grills and similar appliances, vacuum cleaners, vide o cassette recorders, wall/ceiling fans, and washing
machines (Consumer Protection (Safety Requirements) Regulations, 1991, with amendments in 1992, 1995 and1999).
40 Singapore Productivity and Standards Board (1998).Singapore WT/TPR/S/67
Page 59
(c) Sanitary and phytosanitary measures
70. Singapore maintains stringent standards on agricultural and food safety while recognizing
foreign national standards and testing carried out by competent foreign authorities in accordance with
internationally accepted protocols.
71. Imports of live animals and animal products are regulated under the Animals and Birds Act to
prevent the introduction and spread of disease in Singapore.  Under the Act and its Regulations, alicence or permit is required from the Director of the Primary Production Department (PPD), within
the Ministry of National Development, for imports and transshipment of animals, birds, and related
products.  The Primary Production Department also administers quarantine programmes under the
Animals and Birds (Quarantine) Rules to prevent the introduction and spread of disease.  Singapore
accredits abattoirs and other establishments in a number of countries to export specific meat and meatproducts to Singapore, which, once they are imported, are subject to laboratory testing.
41
72. The import and sale of all food products is regulated under the Sale of Food Act and its
Regulations.  Imports of meat and fish products, currently regulated under the Animals and Birds Act
for meat and the Fisheries Act for fish, are to be regulated under the Wholesome Meat and Fish Act,
which came into force later on 10 December 1999.  Under the new Act, licences and permits will berequired from the PPD for all imports, exports, and transshipments of animal and fish products.  The
licence will be renewable annually.  Permits will be issued for each consignment and may restrict or
prohibit imports from, or exports to, any country, territory, place, farm, slaughterhouse or processing
establishment.  The restriction, which will be imposed for public health reasons, will remain in place
as long as the threat to public health is perceived to remain.
73. Phytosanitary regulations on imported and domestically produced plants and agricultural
products are maintained under the Control of Plants Ac t.  All imports of plants must be declared to be
free of pests listed in the Control of Plants Act (Plant Importation Rules);  the list may be amended by
the Minister of National Development from time to time.  The Control of Plants Act also restricts
imports of certain types of plants unless accompanied by a licence issued by the Primary Production
Department.
42  In addition, to prevent the introduction and spread of disease in Singapore,
phytosanitary certificates from the country of origin are required for imports of plants intended for
further cultivation, including seeds intended for sowing, mushroom spawn, and fresh ornamental
foliage and branches.  All imports of fresh fruit and vegetables must be tagged to indicate their source
and may be subject to inspection at the border by the Primary Production Department to ensure that
pesticide levels are safe.43
74. Phytosanitary and sanitary regulations for transshipment of fruit and vegetables were recently
included under the Control of Plants (Imports and Transshipment of Fresh Fruit and Vegetables)
Rules, 1999.  As for imports, annual licences are issued for the transshipment of fruit and vegetables.
Each consignment, must also be accompanied by an import permit issued by the PPD.  Under the new
regulations, the Director of the PPD may restrict or prohibit transshipment of fruit and vegetables if
                                                     
41 Accredited establishments have been approved in Argentina, Australia, Belgium, Botswana, Brazil,
Canada, China, Chinese Taipei, Denmark, Finland, France, Germany, Ireland, Israel, Japan, Malaysia,the Netherlands, New Zealand, South Africa, Sweden, Switzerland, Thailand, the United Kingdom,the United States, and Uruguay.
42 Plants requiring import certificates under the Thir d Schedule include, banana, cassava, citrus, cocoa,
coconut, coffee, cotton, maize, oil palm, pineapple, ri ce, rubber, sugarcane, and tea;  plants, fresh fruit,
vegetables, flowers and seeds from the American tropics;  potted plants;  soil and organic manures;  and insectsand micro-organisms.
43 Ministry of National Development, Primary Production Department (undated).WT/TPR/S/67 Trade Policy Review
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considered necessary to protect public health and to control the spread of disease. Singapore has
developed some broad guidelines on imports of agricultural products derived from genetically
modified organisms.  The specifics of the guidelines, such as labelling, are still being studied.
(d) Labelling and packaging requirements
75. Labelling and packaging requirements, which apply equally to domestically produced and
imported products, are specified in various laws including the Sale of Food Act for food products andthe Poisons Act and its Rules and the Medicines Regulations for pharmaceutical and medical
products.
76. Labelling of all food products is required under the Sale of Food Act, which was first enacted
in 1973, and is administered by the Ministry of the Environment.  The general requirements are that
labels should be displayed in English and should contain:  the common name or description of the
food;  statement of ingredients;  the net content;  as well as the name and address of the manufacturer,
packer or local vendor for locally produced food or the name and address of local importer, distributor
or agent and the country of origin for imported products.  In addition, 19 groups of food products,
basically perishable food products and food products with shorter shelf-life, are to be date-marked.
Foodstuffs with nutritional claims should bear a nutrition information panel on the label.  Productscontaining tartrazine should be clearly labelled and caution notes should be on labels of products
containing aspartame and royal jelly.  For fresh and chilled dressed poultry, the label should include
details of the service abattoir and the date of slaughter for locally slaughtered poultry and the country
of origin for imported dressed poultry.  There are also special labelling requirements for certain
products such as mineral water.  For imported meat and fish, the requirements are:  product
description, country of origin, brand name (if any), the establishment name and number, slaughter,
packaging and processing dates, net weight and batch number or, in the case of canned meat, the cancode.  Meat derived from locally slaughtered animals is examined and marked by inspectors from the
PPD (for pork, beef, and mutton).
77. In 1992, the Singapore Green Label Scheme was launched by the Ministry of the
Environment.  It is currently administered by the Singapore Environment Council.  There are
presently 29 product categories in the scheme.  The qualifying criteria for each product category aredrawn up by Specialist Technical Workgroups and approved by the Advisory Committee and
Approving Board of the Scheme.  Testing requirements vary for the different product categories but
are generally based on methods described in established international standards where these are
applicable.  The scheme is voluntary and is available for a number of products except for food,
beverages, and pharmaceutical products.  Medical and pharmaceutical labelling and packagingrequirements are administered by the National Pharmaceutical Administration in the Ministry of
Health.  Since the previous Review, labelling requirements were put in place for cosmetics and
Chinese proprietary medicines, in 1997 and 1999, respectively.
(xii) Other measures
(a) Countertrade
78. Countertrade by the private sector is encouraged by the authorities.  Indeed, the Singapore
Trade Development Board (TDB) provides a five year tax holiday for firms engaged in countertrade
under the Countertrade Pioneer Scheme.  Firms may qualify for the tax holiday if they meet certain
conditions set by the Trade Development Board;  according to the authorities, in general, firms must
establish a separate company to engage solely in countertrade, have established international tradingSingapore WT/TPR/S/67
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links, and employ an agreed number of trained personnel.  Currently there appears to be one company
engaged in countertrade under this scheme.44
(b) Free-trade zones
79. There are nine free-trade zones in Singapore, which provide duty-free storage facilities for
dutiable goods, and where traders may repackage and re-export goods with minimum customs
requirements.45  However, as several of these zones are inter-connected, there are effectively five
free-trade zones, at Singapore-Changi Airport;  Keppel;  Jurong;  Pasir Panjang;  and Sembawang
(Table III.12).  Three of these free-trade zone s (Keppel, Sembawang and Pasir Panjang) are
administered by the PSA Corporation Limited while the Jurong and the Changi free-trade zones (for
airborne cargo) are administered by the Jurong Town Corporation and the Civil Aviation Authority of
Singapore (CAAS), respectively.
Table III.12
Free-trade zones in Singapore, 1999
Zone Activity
Port of Singapore Containerized cargo
Port of Singapore (Keppel Distripark) Less than full container (LCL) cargo
Port of Singapore (Keppel Distripark Linkbridge) Less than full container (LCL) cargo
Port of Singapore (Sembawang Terminal) Conventional cargo
Port of Singapore (Pasir Panjang Wharves) Conventional cargo
Port of Singapore (Brani Terminal) Containerized cargo
Port of Singapore (Pasir Panjang Terminal) Containerized cargo
Port of Singapore (Jurong Port) Conventional cargo, dry bulk cargo
Changi Airport Cargo Terminal Complex Air cargo
Source: Information provided by the Singapore authorities.
80. Most goods entering the zones are allowed to do so without any customs formalities.  The
exceptions are:  the movement of goods from a free-trade zone into a customs territory or to another
free-trade zone;  transshipment of dutiable goods through the same free-trade zone, except for dutiable
goods transshipped by air under a through airway bill, or by sea under a through bill of lading incontainerized packaging;  movement of certain goods, such as dutiable goods, goods from a bonded
warehouse, and goods that had been temporarily imported, from the customs territory into a free-trade
zone.  Permission to assemble products in the free-trade zones may be granted depending on the
nature of assembly/manufacture to be carried out.
46
81. A number of incentives are provided to encourage the use of the free-trade zones.  These
include free storage for up to 72 hours for imports and exports of conventional cargo and imports of
containerized cargo;  free storage for up to seven days for exports of containerized cargo;  free storagefor up to 28 days for transshipment or re-export of all cargo;  extended storage of goods until market
                                                     
44 A total of 11 companies have been granted Pioneer status since the inception of the scheme in 1986;
currently only one company remains under the scheme.
45 These are:  Port of Singapore–Free-Trade Zone ;  Port of Singapore (Sembawang Terminal)–
Free-Trade Zone;  Port of Singapore (Pasir Panjang wharves)–Free-Trade Zone;  the Port of Singapore
(Brani Terminal)–Free-Trade Zone;  Port of Singapore (Keppel Distripark)–Free-Trade Zone;  Port of Singapore
(Keppel Distripark Linkbridge)–Free-Trade Zone;  Port  of Singapore (Pasir Panjang Terminal)–Free-Trade
Zone;  Port of Singapore (Jurong Port)–Free-Trade Zone;  and Changi Airport Cargo Terminal Complex–Free-Trade Zone.
46 Details of these activities are given in the Free-Trade Zones (Manufacture) Regulations.WT/TPR/S/67 Trade Policy Review
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conditions for re-export or local use become favourable;  and freedom from customs duty and customs
documentation while goods remain in the free-trade zones.  In addition, goods stored in the zones may
be exhibited or sold within the zones.  Alcoholic products that are transiting through Singapore may
be stored in any of the zones for any period of time pending transshipment.  In all other cases they
must be removed from the free-trade zone within 14 days of the vessel's arrival in Singapore.
82. No data was available on the percentage of total trade conducted through the free-trade zones.
(3) MEASURES DIRECTLY AFFECTING EXPORTS
(i) Registration and documentation procedures
83. All exporters are required to register with the Trade Development Board (TDB) for a Central
Registration Number.  Under the Regulation of Imports and Exports Act, 1995, an export permit from
the TDB, and Customs, where necessary, is required for all exports.  Permits for items not subject toexport restrictions may be obtained within three days of exporting the product.  The permit is
approved subject to the condition that the product in question is not a strategic high-technology
product requiring import certificate and delivery verification (ICDV).
47  For items subject to export
prohibitions or testing requirements, a licence must be obtained from the relevant controlling
agencies.  As is the case for imports, export formalities have been greatly simplified by theintroduction of an electronic data network (Tradene t), which provides a single window for all import
and export documentation processing.
(ii) Export taxes and other charges
84. Singapore has no export taxes or levies.
(iii) Export prohibitions, restrictions and licensing
85. Under the Regulation of Imports and Exports Act, 1995, Singapore prohibits exports of
certain products to certain countries, including exports of all products to Iraq, except those included inthe "Oil for Food" Programme;  since 1996, Singapore has imposed new export prohibitions on
selected products to Angola, Rwanda, Liberia, Libya, Sierra Leone, and Yugoslavia in accordance
with United Nations Security Council Resolutions.
48
86. Singapore also prohibits exports of some other products for public health, public security or
environmental reasons.  Again, these prohibitions are applied as part of Singapore's obligations underinternational treaties or agreements, such as the Montreal Protocol on Substances that Deplete the
Ozone Layer, and the Chemical Weapons Convention.  Singapore has also stopped all exports of
ivory and derivatives of tiger and rhinoceros horn listed under the CITES Convention.
87. Export licensing is governed by the legislation of the respective controlling authorities.
Export licences are applied for health, safety and environmental protection reasons and in compliancewith international obligations.  The products subject to export licensing include arms and ammunition,
                                                     
47 High-technology products that are subject to expor t controls in certain countries may be exported
once the TDB has issued an import certificate and delivery verification (ICDV).  For exports under the ICDV,
the exporter is obliged to export only to  the declared end-user as approved by the supplying country.  In the case
of imports, the importer must ensure that the product enters Singapore for local use and is not transshipped toanother destination.
48 As of April 1999, the United Nations Security Council has suspended sanctions against Libya until
further notice.Singapore WT/TPR/S/67
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for which a licence must be obtained from the Arms and Explosives Branch of the Singapore Police
Force49;  morphine, heroin and other products listed under the Single Convention on Narcotics Drugs,
1961 and the Convention on Psychotrophic Substances, 1971;  and all animals, birds, plants, and
wildlife covered by the CITES Convention, for which licences may be obtained from the Primary
Production Department of the Ministry of National Development.
(iv) Export restraints
88. Under the WTO Agreement on Textiles and Clothing (ATC), Singapore maintains three
bilateral export restraints, with Canada, the European Union, and the United States.
(v) Export-processing zones
89. There are no export-processing zones in Singapore, although packaging activities for
re-export are carried out in the free-trade zones.  All goods destined for the free-trade zones enter freeof all customs duties and charges but, in the case of dutiable goods, are subject to normal customs
formalities and tariffs if they subsequently enter the local market.
(vi) Export assistance
(a) Drawback and other schemes
90. Duty drawback may be granted to exporters under the Customs Act.  According to the
authorities, however, Singapore has not used this provision since the 1960s.
(b) Tax concessions
91. In general, tax relief and tax concessions are offered under a number of programmes to
companies investing in Singapore (section (4)(iv) below).  Nevertheless, Singapore notified the WTO
that it does not grant or maintain any subsidy w ithin the meaning of Article 1.1 of the Agreement on
Subsidies and Countervailing Measures, which is specific within the meaning of Article 2 of the
Agreement.  Previously notified subsidies, such as the International Trade Incentive and Productionfor Export Incentive programmes, were discontinued, while the Double Tax Deduction scheme was
amended to bring it into conformity with the WTO Agreement on Subsidies and Countervailing
Measures.
50  Under the latter scheme, companies may de duct against their taxable income, twice the
eligible expenses incurred in activities aimed at de veloping their international trade.  These activities
include participating in local and/or overseas exhibitions and missions, market research, masterlicensing/franchising, advertising in publications, and printing of corporate brochures.
92. Some tax concessions are currently granted to companies engaged in international trade.  The
Trade Development Board (TDB) offers a concessional tax rate of 10% (normally 26%) for income
derived from international trading activities in petr oleum products, for up to five years, under the
Approved Oil Trader Incentive, and for non-petr oleum products for five years, under the Approved
Trader Incentive programme (Table III.13).  A tax holiday is also offered to encourage countertrade
(section (2)(xii)(a) above).
                                                     
49 Products such as military clothing, steel helmets, handcuffs, and toy guns need export licences.
50 WTO document G/SCM/N/48/SGP, 1 July 1999.  The key change to the Double Tax Deduction
Scheme was the removal of the export condition to qualify for the scheme.WT/TPR/S/67 Trade Policy Review
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Table III.13
Incentives provided by the Trade Development Board
Scheme Eligibility Incentive
Pioneer Status Scheme for
countertradeCompanies engaging solely in countertrade may
obtain pioneer status.Exemption of income tax on profits arising from
countertrade for five years.
Approved Oil Trader Incentive Established oil traders with good worldwide
networks, strong track record, with a substantialvolume of physical trade carried out on a
principle basis.Concessionary tax rate of 10% on income
derived from international trading activities in
approved oil products for up to five years.
Approved International Trader
IncentiveSimilar to those for Approved Oil Trader
Incentive.Concessionary tax rate of 10% on income
derived from international trading activities inapproved non-oil products for up to five years
(renewable).
Approved International
Shipping Enterprise IncentiveInternational shipping companies establishing
operations in Singapore.Exemption of income tax on profits arising from
international shipping.
Approved Aircraft Incentive International aircraft operating lessors. Concessionary tax rate on income derived from
offshore aircraft leasing operations.
Approved Cyber Trader (ACT)
IncentiveCompanies establishing principal internet
electronic commerce operations in Singapore.Concessionary tax rate of 10% on offshore
income derived from electronic commerce
activities in qualifying products and services for
five years.
Source: The Singapore authorities.
(c) Export finance, insurance, and guarantees
93. Export insurance for companies selling on credit, and for non-payment caused by political
and/or commercial factors, is provided by ECICS Credit Insurance Limited, a subsidiary of the Export
Credit Insurance Corporation of Singapore (ECICS) Holdings Limited (a subsidiary of Temasek
Holdings, a Government holding company).  ECICS Credit Insurance provides comprehensive
policies for exporters engaged in the export and re-export of goods and services on a regular basis and
for cases where credit is not normally granted for over six months;  and specific policies for exports of
capital goods and intermediates or services that are non-repetitive exports and involve credit granted
for longer than a year.  ECICS does not receive an y government funding or reinsurance support for
underwriting commercial and political risks.  ECICS also provides bond and guarantee underwriting
through a subsidiary company the EC ICS – COFACE Guarantee Co. (S) Ltd.51
94. ECICS also provides political risk insurance for Singapore investors investing overseas.  This
is through an Overseas Investment Insurance poli cy, which covers expropriation, war and civil war
risks, and restrictions on remittances of profits and dividends.
(d) Export facilitation and marketing assistance
95. In addition to its tax incentive programmes, the TDB offers assistance to Singapore-based
companies trying to expand trade.  The Board currently has an overseas network of 32 offices that
market products abroad;  trade fairs are organized to publicize Singapore products and companies.  As
a result partly of the Asian financial crisis, the TDB has also stepped up efforts to explore and expandtrade opportunities in non-traditional markets outside the region, including through trade and
investment missions to various countries.
96. Extensive use is made of the electronic media to facilitate customs procedures and provide
information to companies.  These including TradeNet, an electronic data interchange network for
trade documentation;  the Trade Register System, which enables traders to obtain registration and
                                                     
51 Singapore International Chambers of Commerce (1998).Singapore WT/TPR/S/67
Page 65
licensing requirements;  and the Electronic Visa Information System for exports of textiles and
clothing to the United States.
(vii) Measures maintained by importing countries
97. Exports from Singapore receive preferential  treatment under the Generalized System of
Preferences (GSP).  However, the value of its exports under the GSP has been falling over the years
because of declining tariff rates in its export markets.  The value of Singapore's exports under the GSPfell from around 5.4% of GDP in 1995 to 0.4% in 1998 (Table III.14).
Table III.14
Singapore's exports under the Generalized System of Preferences, 1995-99
(S$ million)
1995 1996 1997 1998 1999a
European Union 5,677 1,015 740 298 0
Japan 417 353 312 239 207
Canada 81 42 42 42 38
Other countries 198 157 76 38 25
Total 6,373 1,567 1,170 617 270
(% of GDP) 5.4 1.2 0.8 0.4 0.3
a January to September 1999.
Source: Data provided by the Singapore authorities.
98. Between 1996 and October 1999 exports from Singapore were subject to anti-dumping
measures taken by Australia, the European Union, and the Republic of Korea.  The products involved
were polystyrene resin, fax machines, and electric smoothing irons.  One investigation by South
Africa concerning exports of tyres was terminated in December 1997.  Two investigations are
currently being carried out, by Australia and India (Table III.15).
Table III.15
Anti-dumping measures maintained on exports from Singapore, 1996 to October 1999
Product Country Date of initiation Measure taken
Polystyrene resin Australia 11/12/97 Final (24/12/98)
Polyvinyl chloride homopolymer resin Australia 01/04/99 ..
Fax machines European Union 01/02/97 Final (30/04/98)
Polystyrene resin India 18/03/99 ..
Electric smoothing irons Korea Rep. of 23/10/97 Final (06/08/98)
Tyres South Africa 24/01/97 No final (12/12/97)
.. Not available
Source: WTO notifications.
(4) MEASURES AFFECTING PRODUCTION AND TRADE
(i) Registration and licensing procedures for establishment
99. All businesses, including foreign companies, esta blished in Singapore must be included in the
Registry of Companies and Businesses (RCB), managed by the Registrar of Companies andBusinesses.  Enterprises may be established either under the Companies Act (Chapter 50) or theWT/TPR/S/67 Trade Policy Review
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Business Registration Act (Chapter 32).  Under the Companies Act, enterprises may incorporate as
Singapore companies or register as foreign companies, while under the Business Registration Act,
enterprises may be established as sole proprietorships or partnerships.
100. Under the Companies Act, which forms the basi s for company law in Singapore, any two or
more persons may form an incorporated company by  subscribing to at least one share each, stating
their names in a Memorandum of Association, and complying with registration requirements.  Any
business with over 20 partners is required to register as a company.  Regarding liability, three types of
company may be formed under the Act:  a company lim ited by shares, where liability is limited to the
number of shares taken up by the shareholders;  a company limited by guarantee, where liability is
limited to the amount undertaken by members to contribute to the assets of the company on winding
up;  and an unlimited company.  Foreign companies wishing to register in Singapore under theCompanies Act must have registered offices in Singapore and at least two agents who are natural
persons, both of whom are ordinarily resident in Singapore.
52
(ii) Taxation
(a) Indirect taxes
Goods and services tax101. The goods and services tax (GST) is levied on domestic consumption of most goods and
services (section (2)(v)(a)).
Excise tax
102. Excise taxes are applied to alcohol, tobacco, petroleum products, and motor vehicles
(section 2(v)(a)).
Stamp duty
103. Stamp duty is levied on instruments relating to immovable property, and stocks and shares.
The current stamp duty rates on the transfer of immovable property are 1% for the first S$180,000,
2% for the next S$180,000 and 3% on the remaining value.  Stamp duty on contract notes and on the
transfer of stocks and shares is 0.05% and 2%, respectively.  However, the stamp duty on contract
notes for share transactions was suspended for two years until 30 June 2000, as part of the package of
measures introduced by the Government of Singapore to help businesses cut costs during the Asianfinancial crisis.
(b) Direct taxes
104. Income taxes in Singapore are imposed on income derived in Singapore and foreign income
received in Singapore.
53  Personal income tax, which is charged on a sliding scale, ranges from 2%
(on the first S$7,500 of chargeable income per year) to 28% (on every dollar of chargeable income
                                                     
52 In addition, at least one secretary in the company must be a natural person with the principal or only
place of residence being in Singapore (Singapore International Chambers of Commerce, 1998).
53 Only income earned abroad by a non-resident individual and received in Singapore is not taxed in
Singapore.Singapore WT/TPR/S/67
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exceeding S$400,000 per year).  As of assessment year 1997, non-residents are generally liable to a
flat rate of 26%.54  Capital gains, in general, are not taxable in Singapore.
105. The Corporate Income Tax applies to income derived by all companies incorporated or
registered in Singapore.  The tax, which is charged on adjusted net profits less depreciation
allowances, is 26%, reduced from 27% in assessment year 1996 and from 30% in
assessment year 1993.  As part of the Government's assistance to business in the Asian financialcrisis, a 10% rebate was granted on corporate income tax excluding Singapore dividends and income
subject to final withholding tax for assessment year 1999.  Singapore operates an imputation system
so that when a dividend is paid by a company resident in Singapore, the tax paid by the company is
imputed to the shareholder (whether tax resident or  non-resident).  The shareholder is thus taxed on
the grossed-up dividend and a credit for the tax of 26% paid by the company is then allowed againstthe personal tax assessed on the shareholder.  Imputation credits are accorded to Singapore residents
and non-residents alike.
106. Accelerated depreciation allowances of 33.33% are available for all plant and machinery,
with the exception of certain motor vehicles, in line with the Government of Singapore's traffic
management policy.  In addition, up to 100% depreciation (a one-year write-off) is available forexpenditure on robots, computers, prescribed automation equipment, standby generators, qualifying
pollution control equipment, and qualifying energy conservation equipment.  In addition to
accelerated depreciation, Singapore provides a wide range of other tax incentives aimed at attracting
foreign investment (section (iv)(a) below).
107. Singapore levies income taxes on a worldwide (or residence) basis, so that, in order to be
taxable, income must be accrued in or derived from Singapore, or received in Singapore from abroad;
this is necessary for the achievement of capital export neutrality (CEN).
55  To relieve the burden of
international double taxation on foreign-sourced income received in Singapore, a credit is allowed for
foreign taxes collected on income derived from a country with which Singapore has a double taxation
agreement.56  Singapore has signed double taxation agreements with most of its main trading partners
(Chapter II(5)(iv)).  In the absence of a double taxation agreement, a unilateral tax credit is provided
on foreign tax paid on foreign branch profits, foreign employment income, foreign dividends, andspecified service income from certain countries.
Property tax
108. Property tax is payable biannually and is based on the percentage of gross annual value of the
property.
57  The standard rate is 12% of the annual value, although a concessional rate of 4% is
charged for single owner-occupied residential property only.  Vacant land is taxed at a rate of 12% of5% of the value of the land.  Properties with annual values of up to S$18 and buildings or parts of
buildings used exclusively for religious worship, public education and charitable purposes as well as
for purposes conducive to the social development of Singapore are exempt from payment of property
                                                     
54 In assessment year 1998, as part of measures taken by the Government to ease pressures resulting
from the Asian financial crisis, resident individuals were granted an across-the-board, one-off 5% tax rebate as ameasure of relief.
55 CEN obtains when the same amount of foreign and domestic taxes are paid on an identical
investment no matter where the investment is undertaken.
56 The credit is limited to the tax payable in Sing apore on that income, had it been earned instead in
Singapore, or the tax paid in the foreign country, whichever is lower.
57 Gross annual value is defined as the gross amount at which the property could reasonably be
expected to be let from year to year  with the landlord paying for repairs, insurance, maintenance or upkeep and
all taxes other than the GST.WT/TPR/S/67 Trade Policy Review
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tax.  Effective February 1998, the property tax exemption for land under development (which was
withdrawn on 2 March 1995 and reinstated from 27 February 1998) will be granted for a period of up
to five years.
(iii) Industrial strategy and the public sector
(a) Statutory boards
109. The Government's industrial strategy, although largely private-sector driven, has nonetheless
entailed various policies and may include incentives.58  The strategy has consisted of providing
general policy direction and developing certain key sectors, mainly through the establishment of
statutory boards and public sector enterprises.
110. Statutory boards were created by the Government of Singapore to implement the desired
economic and social policy.  Their present role is mainly to regulate and/or promote economicactivities in desired high-growth areas, and to prov ide technical and marketing assistance to investors
and exporters in desired economic activities as outlined in the Government's industrial strategy.  As
part of this strategy, they may also administer tax and non-tax incentives.  Two key statutory boards
responsible for industrial development are the Economic Development Board (EDB) and the
Trade Development Board (TDB).  Their roles are, respectively, to spearhead industrialization and todevelop and promote Singapore's international trade.  In addition, a number of statutory boards were
created to regulate key services sectors such as financial services, telecommunications, and transport
(Table III.16).
Table III.16
Major trade-related statutory boards in Singapore
Statutory Board Function/Sector
Trade Development Board (TDB) Trade policy;  trade promotion;  trade facilitation
Economic Development Board (EDB) Investment promotion;  investment policy;  industry development
Jurong Town Council (JTC) Development and management of industrial estates
Monetary Authority of Singapore (MAS) Regulation and supervision of the banking, insurance, securities
and futures industries
Land Transport Authority (LTA) Land transport;  licensing and regulation of motor vehicle traffic
Maritime Port Transport Authority (MPA) Shipping and ports
Civil Aviation Authority of Singapore (CAAS) Air transport
Singapore Tourism Board (STB) Tourism
Telecommunications Authority of Singapore (TAS) Telecommunications
National Computer Board (NCB) Electronic commerce;  information technology
National Science and Technology Board (NSTB) Science and technology;  technopreneurship development
Central Provident Fund (CPF) National savings for old age, health care and home-ownership
Singapore Productivity and Standards Board (PSB) Standards and conformance;  improvements in productivity
Public Utilities Board (PUB) Regulation of electricity and piped gas industries;  water authority
Source: Government of Singapore.
111. The Economic Development Board (EDB), within the Ministry of Trade and Industry, is the
main government agency with responsibility for implementing the Government's industrial and
development policies (Box III.1).  The EDB provides investment promotion services to identify
business opportunities in Singapore and in the Asian region, and incentives to attract investment to
                                                     
58 Singapore International Chambers of Commerce (1998).Singapore WT/TPR/S/67
Page 69
certain activities (section (iv)(a) below).  For example, to respond to the economic recession in 1985,
an Economic Committee was formed, which recommended strengthening of the manufacturing and
services sectors, having identified these sectors as twin engines of growth.  It was envisaged that such
strengthening would be achieved particularly thr ough the promotion of investment in new growth
areas and improvements in the range and quality of supporting industries, especially high-technology
industries.  The growth industries identified incl uded electronics, telecommunications and information
technology, biotechnology, pharmaceuticals and medical products, optics and related areas, business
and professional services, medical services, financial and banking services, and hotel management
services.
Box III.1:  The activities of the Economic Development Board
The activities of the EDB are managed under seven programmes:
Manufacturing:  aims to maintain the contribution of the manufacturing sector to GDP at no less than
25% and employment at more than 20% in the medium to long term.  The programme also focuses on
electronics (systems and components);  chemicals and life sciences;  and engineering (transport, precision
and process).
International Business Hub Programme:   aims to develop Singapore into an international business and
services hub for the Asia-Pacific region.  Elements  of the programme include headquarters services;
logistics;  communication and media;  and education and healthcare.
Promising local enterprises:   aims to help companies develop into Asian multinational companies with
internationally competitive capabilities and a potential for growth both regionally and globally.  Theprogramme offers financial assistance;  resource support;  image building;  technology acquisition;
strategic alliances;  and business partnerships.
Regionalization:   seeks out business opportunities in the region and supports Singapore-based investment
in these opportunities through a "partnership" approach under a number of incentive schemes and other
forms of assistance.
Co-investment programme:   managed by EDB Investments Private Limited (EDBI), a wholly owned
investment arm, aims to strengthen Singapore's partnerships with multinationals and promising localenterprises through risk-sharing equity co-investment in Singapore and internationally.  EDBI currentlymanages over S$2 billion in funds, including the Cluster Development Fund, two venture capital funds, adedicated biotechnology fund, and a regional investment company.
Resource development programme:   in partnership with other agencies, plans and develops Singapore's
economic resources such as labou r, utilities and housing to support industrial growth under three
programmes:  resource management, capability development, and the international manpower programme.
Innovation programme:   aims to identify and promote innovation projects proactively for each industry
cluster.  The EDB administers the Innovation Development Scheme (IDS) jointly with five othergovernment agencies to support innovation by Singapore based companies.
Source:   Singapore International Chambers of Commerce (1998), The Investor's Guide to Singapore, 1999 .
112. The latest efforts to develop skills and enhanc e competitiveness include the launching of the
Industry 21 (I21) programme in June 1998.  The go al of I21 is to transform Singapore into a
knowledge-based economy focusing on knowledge-in tensive activities in the manufacturing andWT/TPR/S/67 Trade Policy Review
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exportable services sectors.59  The sectors and activities identified by the programme are electronics,
chemicals, life sciences, engineering, education, healthcare, logistics, communications and the media,
headquarters, and promising local enterprises.  Over the next ten years the Government expects
knowledge-based industries to contribute arou nd 40% of Singapore's GDP, of which 25% will be
provided by the manufacturing sector and 15% by exportable services.  These sectors are expected to
contribute between 20,000 to 25,000 jobs annually;  two out of every three jobs in manufacturing andthree out of every four jobs in services are expected to be created for skilled workers.
60
113. The Trade Development Board (TDB) was established in 1983 as the national agency for
trade.  The TDB currently assists Singapore-based companies to expand internationally by developing
their exports, imports and investment abroad and by attracting trade and trade-related investment to
Singapore.
114. Another statutory board that plays an important role in industrial development is Jurong Town
Corporation (JTC), which manages Singapore's 35 industrial parks supporting almost 7,000 local and
multinational companies.  JTC is also currently deve loping specialized industrial parks to cater to the
specialized needs of companies.61  JTC plans to spend S$1.78 billion in 1999/2000 (an increase of
around 34% over the previous year) to support Singapore's transition to a "knowledge-based"economy.
62  Other activities include supporting Singapore's regionalization strategy through the
development and management of similar industrial parks in the region, thereby facilitating investment
by Singapore-based companies in other countries in the region.63
(b) State-owned enterprises
115. In addition to the statutory boards, the Government initially established a number of
state-owned enterprises or government linked co rporations (GLCs), many of which were later
partially privatized.64  The state-owned companies were, in the main, formed for strategic reasons to
develop key sectors that were believed to be integral to Singapore's long-term development and where
private investment was felt to be insufficient.  Government equity in the companies, which was
initially held by the Minister for Finance, was subsequently transferred to government holding
companies.65  Temasek Holdings, the Singapore Government's premier investment holding company
was formed in 1974.  It is wholly government owned and manages most Singapore Government directinvestments in Singapore and a significant numbe r overseas (Box III.2).  At the time of its
incorporation, Temasek managed investments in 36 companies, with an estimated value of
S$345 million.  In 1999, there were 23 Temasek companies.  Among the Temasek companies are
some of Singapore's largest companies listed on the Singapore Stock Exchange, including Singapore
                                                     
59 Economic Development Board (1999).
60 Economic Development Board (1998).
61 Examples of such parks include business parks, of which the largest is Changi Business Park;
petrochemical parks such as on Jurong Island;  and wafer fabrication parks (Singapore International Chambersof Commerce, 1998).
62 Business Times , 7 October 1999.
63 JTC has been involved in managing and developing the Xinsu Industrial Development (Sozhou) Co
Ltd. in the China-Singapore Sozhou Industrial Park in China;  Carmelray Industrial Park II in the Philippines;
International Tech Park Bangalore in India;  Thai-Singapore 21 Industrial Estate in Thailand;  and TechparkCikarang in Indonesia (Jurong Town Corporation, undated).
64 The companies were involved in a number of s ectors including manufacturing, banking, trading,
transportation, shipbuilding, and other service sectors.
65 The holding companies fell into three categories:  Tamasek Holdings, Singapore Technology
Holdings (for defence-related industries) and Health Corporation Holdings (for hospitals and medical services).In addition, a number of unprofitable GLCs were closed down (World Bank, 1993).  Singapore TechnologiesHolding is currently a subsidiary of Temasek.Singapore WT/TPR/S/67
Page 71
Telecommunications, Singapore Airlines, and financial sector companies such as Keppel Corporation
and DBS Bank.66  In addition, among its unlisted companies, Temasek has a majority share in a
number of large services providers including full  ownership of the PSA Corporation and Singapore
Power.  Temasek companies are currently present in a wide range of sectors including industry,
transportation, power, telecommunications, media, financial services, property development,
consultancy services, and leisure and recreation.
Box III.2:  Temasek Holdings
Incorporated in 1974, Temasek's original goal was to provide a single roof to house government linked
corporations (GLCs), to keep track of the Governme nt's investments, and to inform the Minister for
Finance and the Cabinet about the performance of the companies.  Individual GLCs therefore operatedaccording to prevailing economic conditions with little interference from the holding company.  One of itskey roles was to appoint the chairman and directors to represent the Government on the board of thesecompanies.  The daily running and management of the companies was left up to their individual boards.
Temasek's role changed in the late 1970s to provide more focus and direction, to foster closer cooperation
between its companies, and to actively seek out investments and alliances with profitable companies.  As
part of the Government's overall strategy to encourage high-technology and value-added investment,Temasek increased investment in ventures considered to be strategic and of a high-risk nature in the 1980s.
During the 1990s, while continuing its efforts to encourage investment by its companies in high-technology
areas, Temasek's focus shifted to building "world class companies".  The recently completed report by theCommittee on Singapore's Competitiveness also recommend ed that Temasek play a more proactive role in
developing its companies into world class companies.  Changes being implemented or planned include:
- closer monitoring of companies' diversification plans to ensure that they capitalize on what they know
best;
- specifying performance benchmarks to ensure they focus on the correct targets;- limiting the terms of the chairman and directors to ensure fresh thinking prevails at the top;  and
- separating the appointments of the chairman and chief executive officers to ensure that their boards
retain an objective view of proposals bro ught before them by senior management.
Temasek actively helps local companies to expand overseas, including through its participation in the
Promising Local Enterprise (PLE) Investment Fund established by the Economic Development Board in1999, and a private equity fund called Century Private Equity Holding(s) Private Limited, formed in 1999.Temasek has also established joint ventures with foreign companies in order to invest in the Asia-Pacific
region.  Recent examples include joint ventures with Daimler Benz of Germany and Norsk Hydro of
Norway.
Source: Business Times, 25 June 1999;  Straits Times,  25 June 1999; and Temasek internet site:
www:temasekholdings.
116. The GLCs are generally profitable, and Temasek divested a number of companies that were
not profitable during the 1980s.  The authorities stress that all GLCs operate under the Companies Act
and hence must compete on a commercial basis with the private and public sector companies.
Moreover, they do not receive any subsidies, either directly from the Government or from Temasek,
                                                     
66 Temasek has a 79.74% share in SingTel, 53.8% in Singapore Airlines, 32.31% in Keppel Corp, and
18.42% in DBS Bank ( Business Times , 25 June 1999).WT/TPR/S/67 Trade Policy Review
Page 72
although Temasek does provide strategic guidance and plays a role in appointing directors to the
boards of the GLCs.  Nevertheless, the GLCs appear to have a dominant position in the Singapore
economy.  A study carried out in the late 1980s showed that GLCs accounted for 12% of sales, 19.5%
of profits, and 23% of the assets of the largest 500 firms in Singapore.67  More recently, it is estimated
that the Temasek group accounts for about one tenth of Singapore's economic output, and its first-tier
listed units for about 25% of Singapore stock exchange's market capitalization.68  Temasek's strategic
stake in its companies was S$47 billion in May 1999.
117. Given the extent of involvement of the GLCs in the Singapore economy, concerns have been
raised about any advantage that may arise because of their connection with the public sector or
backing provided by Temasek Holdings.69  The possibility of cross-subsidization between the GLCs
and their subsidiaries is another issue that may cause concern.70  It may also be that small local
companies, selling mainly on the domestic market may be "crowded out" by the dominance of the
GLCs and other large players including the multinational companies (see also section (vii) below).
(iv) Assistance
(a) Tax incentives
118. Like several other countries in the region, Singapore makes extensive use of tax incentives to
encourage investment in certain activities and sectors.  Tax incentives, which apply equally to foreign
and local companies, have been an important t ool in implementing the Government's development
policy since independence.  Initially set up to encourage labour-intensive industrial development
under the Pioneer Status award, currently tax incentives are used to encourage foreign direct
investment (FDI) in high-technology sectors, and skills development and training activities.  The
Economic Expansion Incentives (Relief from Income Tax) Act, (Cap 86) and the Income Tax Act,
(Cap 134) are the two principal laws under which th e Government of Singapore offers incentives for
investment (Table III.17).  The foremost of these incentives remains the Pioneer Industries
Programme, which grants exemptions from corporate tax for between five and ten years for new
manufacturing and service investments introducing high skills.  Most other programmes grant tax
exemptions or tax concessions for companies investing in high-technology industries or services, or
providing high-skill employment opportunities for Singaporeans.
                                                     
67 Cited in Soon and Tan (1993).
68 Straits Times,  25 June 1999.
69 Questions raised in Parliament, for example, s uggest that GLCs have moved into sectors or areas
outside of their original remit, and access to cheap Post Office Savings Bank  (POSB) funds may be giving them
an added unfair advantage in relation to the private sector (Committee of Supply, Ministry of Finance 1997).The Post Office Savings Bank, a public sector statut ory board, has been privatized and acquired by the
Development Bank of Singapore (part of the Temasek group).  According to the authorities, all POSB loanswere made on a commercial basis.
70 For example, Philip Yeo, outgoing Chairman of the GLC SembCorp Industries and creator of
Singapore Technologies, suggested recently that SingNet (S ingTel's subsidiary providing internet services) had
an unfair advantage over other internet service provid ers because it was being cross-subsidized by SingTel
(Business Times , 27 September 1999).  In a subsequent response, the Telecommunications Authority of
Singapore issued a statement saying that it found no ev idence of such cross-subsidization in an investigation
conducted in 1999 ( Business Times , 1 October, 1999).Singapore WT/TPR/S/67
Page 73
Table III.17
Incentives offered by the Economic Development Board
Scheme Eligibility Incentive
Pioneer StatusaNew manufacturing and service investments
introducing skills substantially more advanced than
the average industry level.Exemption from corporate tax on profits (26%) for five
to ten years.
Development and
Expansion IncentiveaFirms engaging in new projects or expanding
existing projects providing significant economic
benefit for Singapore.Concessional tax rate of 13% for up to ten years
(renewable).
Expansion Incentivea bManufacturing and services providers investing a
minimum of S$10 million in new production
equipment and machinery.Exemption from corporate tax on profits in excess of
the pre-expansion level for up to ten years.
Investment Allowance
IncentiveaProposed investment to be made within a
qualifying period of not more than five years.Exemption on a specified proportion of expenditure (up
to 50%) of new fixed investment in productive
equipment.
Approved Foreign
Loan SchemeaCompany granted a minimum loan of S$200,000
from a foreign lender for purchase of productive
equipment.Complete or partial exemption from withholding tax on
interest payable to the lender.
Approved RoyaltiesaCompany paying royalties to a foreign party. Full or partial exemption from withholding tax on
royalties.
Venture Capital
IncentiveaCompanies with at least 50% local equity and
incorporated in Singapore for tax purposes that
invest in approved new technology projects.May offset losses incurred from the sale of shares with
liquidation of up to 100% of equity invested against
other taxable income.
Overseas Investment
IncentiveaCompanies with at least 50% equity ownership by
Singapore nationals or permanent residents,incorporated in Singapore for tax purposes, with
tax investments overseas.May offset losses incurred from the sale of shares or
liquidation of up to 100% of equity invested overseas
against other taxable income.
Overseas Enterprise
IncentiveaApproved overseas investments and projects;
companies must be at least 50% owned bySingapore citizens or Singapore permanent
residents and incorporated in Singapore for tax
purposes.Exemption of corporation tax on qualifying income for
up to ten years.
OperationalHeadquarters (OHQ)
IncentivescCompanies providing management and other
approved headquarters related services to
subsidiary, associated or related companies in othercountries.Concessional tax rate of 10% on income from providing
qualifying OHQ services to approved network
companies and from qualifying investment activities onthe OHQs own account for up to ten years (renewable).
Business Headquarters
IncentivecEligible manufacturing and services companies
qualifying for an incentive under the Economic
Expansion Incentives Act and providing businessand management direction and key support
services.Varies depending on the incentive granted
Double Deduction for
R&D ExpenditurecEligible manufacturing and services companies
engaged in R&D.Double deduction for qualifying R&D expenses against
income.
Double Deduction forOverseas InvestmentDevelopment
Expenditure
cEligible manufacturing and services companies. Double deduction for qualifying expenditure incurred in
approved feasibility studies and maintenance of
overseas project offices against income.
a Granted under the Economic Expansion Incentives (Relief from Income Tax) Act.
b New cases no longer considered for the Expansion Incentive;  last remaining case to expire in 2004.
c Granted under the Income Tax Act.
Source: Economic Development Board, Government of Singapore.
119. It would appear that the authorities prefer tax incentives to direct financial assistance on the
grounds that firms must be profitable in orde r to derive any benefit from the incentives.71  Although
                                                     
71 But as firms must be in a taxpaying position in order to derive any immediate benefit from tax
incentives, it is often of little use to startup or rapidly growing firms, whose capital expenditures are high inrelation to income.  Such firms would tend to pay little, if any income taxes, unless the incentives are refundableWT/TPR/S/67 Trade Policy Review
Page 74
Singapore receives significant amounts of foreign investment72, in the absence of fiscal transparency,
it is difficult to judge the effectiveness of such tax measures in attracting "incremental" investment;
that is, investment in addition to that which would have occurred without the incentive.  No
information was available on the cost (in terms of tax revenue forgone) of individual incentives;  nor
were any studies available that evaluate the effectiveness of such incentives.  The authorities state that
measuring the tax revenue forgone against the investment amount attracted, is a static and inaccuratecost-benefit analysis as there are other multiplier/spillover effects such as job creation, skills and
technology transfer that are not accounted for.  However, no longer-term, non-static analyses to
measure the more dynamic costs and benefits appear to be available.  Tax holidays are widely
regarded as a particularly ineffective type of ta x incentive compared to tax credits, for example.
73  In
any event, the authorities consider that Singapore's stable and open business and social environmentwas responsible for most decisions to invest in Singapore:  the incentive was provided simply as an
added "sweetener";  the fact that incentives may not be a major factor in investment decisions
suggests that the costs of tax incentives (in terms of tax revenue forgone) may outweigh their benefits.
120. To the extent that government direction of investment through tax incentives has stimulated
investment in certain activities or sectors at the expense of others, it may well have unduly distortedthe allocation of resources and hence contributed to lower overall productivity.  Investment might
perhaps be encouraged in a more neutral manner by the combination of an across-the-board,
revenue-neutral reduction in the corporate income tax rate from its current level of 26% and fewer
incentives.  As mentioned above (section(4)(ii)(b)), the corporate tax rate has in fact been cut several
times since 1993, when the rate was 33%.  These cuts, according to the authorities, were to improve
competitiveness of Singaporean firms and to reduce the overall tax burden on companies.
74  Despite
the wide range of incentives it embodies, the corporate income tax accounts for almost one quarter oftotal tax receipts, a share which is high by international standards.
75  This suggests that these
incentives may not be as generous as they appear.
(b) Non-tax incentives
Development assistance
121. While the majority of incentives are provided in the form of tax exemptions and concessions,
some assistance is also provided through grants or loans mainly to local enterprises.  In 1998/99
S$24 million was committed under the Local Enterprise Technical Assistance Scheme (LETAS) to
help small and medium sized enterprises to raise productivity through the use of external experts.  As
with tax incentives, the objective of these grants and loans is to encourage companies to improve
productivity and increase value added.  The programmes are mainly meant for small and mediumsized enterprises, with at least 30% local equity participation, fixed asset investment of not more than
S$15 million, and, if in the services sector, employment of not more than 200.
                                                                                                                                                                    
or any unused tax relief can be fully carried forward with interest.  In the case of Singapore, the incentives are
not refundable and unused tax relief cannot be carried forward with interest.
72 According to a recent estimate, Singapore was th e second largest recipient of foreign direct
investment in the region after China in 1998 (UNCTAD, 1999).
73 See Mintz (1990) and Mintz and Tsiopoulos (1992).
74 For example, Hong Kong offers across-the-board corporate tax rates of 16% and 15% for
incorporated and unincorporated businesses, respectively (WTO, 1999).
75 Corporate income taxes as a percentage of total taxes in OECD countries, for example, was 8.2% in
1996.Singapore WT/TPR/S/67
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Table III.18
Non-tax assistance for industrial development
Scheme Eligibility Assistance Agency
Innovation Development
SchemeAll Singapore-registered businesses
and organizations.Grants to cover between 30% and 50%
of various qualifying costs.Economic
Development Board
Enterprise Development
Fund
- Local Enterprise
Finance SchemeSmall and medium sized firms with at
least 30% local share;  fixed
productive assets with net book value
of less than S$15 million;  and if inservice sector, with less than 200
employees.Fixed interest financing in the form of
factory, machinery loans, working
capital, etc. through 28 participating
financial institutions;  total loan per firm
not exceeding S$15 million.Productivity and
Standards Board
- Local Enterprise
Technical Assistance
SchemeSmall and medium sized firms with at
least 30% local share;  fixedproductive assets with net book value
of less than S$15 million;  and if in
service sector, with less than 200
employees.Grants of up to 70% of the cost of
engaging external consultant for
approved short-term assignment.Productivity and
Standards Board
Special Interest Rate Qualifying machinery and equipment
used by small and medium sized
firms in mechanization andautomation with a quality above the
industry norm.Low interest rate loan of 4% per annum
up to a maximum loan of S$10 million.Economic
Development Board
Regionalization Finance
SchemeLocal enterprises with fixed
productive assets of not more thanS$30 million;  if in the services
sector, with less than 200 employees.Fixed interest financing to assist local
enterprises to set up operations overseas.Economic
Development Board
Business DevelopmentSchemeLocal enterprises with at least 30%
active local equity and fixedproductive assets not greater than
S$15 million; enterprises in the
services sector should not have more
than 100 employees.Grants to cover the costs of studies or
overseas visits to explore newtechnologies, markets, establish business
contacts, etc.Economic
Development Board
Total BusinessProgrammeLocal enterprises. Assistance in seeking external expertise
in drawing up a "Total Business Plan".Economic
Development Board
Source: Singapore International Chambers of Commerce (1998), The Investors Guide to Singapore, 1999 .
Assistance for research and development
122. Singapore places strong emphasis on investment in science and technology and believes that
its future comparative advantage lies in knowledge-based, high-technology industries and services.
Investment in research and development by the private sector is therefore strongly encouraged and
supported by government training programmes and grants for basic and applied research.  The
majority of the funding comes from the private sector, aided by substantial assistance from theGovernment in terms of tax concessions for companies investing in technology upgrading or training
programmes.
123. The two key government agencies promoting re search and development support in Singapore
are the National Science and Technology Board (NSTB), and the EDB.
76  Through the NSTB and the
private sector, Singapore's inve stment in R&D is around 1.8% of GDP (over S$2.5 billion in 1998, of
                                                     
76 The NSTB functions as Singapore's master planner for R&D, capability development, and
exploitation matters.  It is also the lead government agency in championing the Technopreneurship 21 initiative.The EDB promotes industry-related R&D activities and administers the Government's financial assistanceschemes such as the Research Incentive Scheme for Companies (RISC) and the Research DevelopmentAssistance Scheme (RDAS).WT/TPR/S/67 Trade Policy Review
Page 76
which over 62% came from the private sector).  The NSTB provides assistance for basic research and
training, and for development through venture capital funding.  Research is funded through grants,
such as the Research Incentive Scheme for Companies (RISC) and the Research Development
Assistance Scheme (RSDAS), while training assist ance is provided both through grants and through
funding of research programmes and institutions.77  There are currently 13 Research Institutes and
Centres (RICs), which are supported by the NSTB;  the NSTB provided funding of S$348 million in1997 to the RICs.  The RICs also have collaborative projects with industry as part of the effort to
improve national skills.  In addition, in collaboration with the Ministry of Education, strategic
research, bridging the gap between research and development, is funded jointly by the NSTB and
private companies.
78
124. The NSTB also provides training grants, such as the Joint Industry Study Grant (JISG), to
individuals for courses leading to formal degrees, or for training courses in specific industry areas.
Singapore also emphasizes recruitment of highly skilled foreign workers.  Companies wishing to
employ such workers may apply to the NSTB for the Foreign Researchers Recruitment Programme,
which provides assistance for recruitment and relocation costs.
125. Applied research and product development is supported by the NSTB.  For example, in
September 1997, the NSTB helped launch the S$100 million Technology Fund II, which followed on
from the S$50 million Technology Fund I.  Both funds, which were set up to invest in seed and
early-stage technology companies, are managed by TDF Management Private Limited, a venture
capital fund management company established by the NSTB.  Infrastructural support to encourage
high-technology companies to invest in Singapore is provided through Science and Technology Parks.
There are currently two such parks in Singapore:  Science Park 1 is fully owned by Arcasia Land, a
wholly owned subsidiary of Jurong Town Corporat ion, while Science Park 2 is jointly owned by the
NSTB, and Arcasia Land;  both parks are administered by Arcasia Land.  The parks provide office
space for companies engaged in science and technology development and commercialization.  They
also house supporting facilities such as legal services, venture investment, public relations and
management consultancy services, and incubator facilities.  There are currently 230 tenants in
Singapore's science parks.
126. The National Science and Technology Plan 2000, launched in 1996, aims to spend over
S$4 billion over five years to strengthen technological capabilities.  The Plan also intends to increase
the contribution made by industry to R&D and to increase the number of research scientists and
engineers in the country by the end of the five year period.
(v) Trade-related investment measures
127. Singapore notified the Committee on Trade-Rela ted Investment Measures that it does not
maintain any measures that are not in confor mity with the provisions of the Agreement on
Trade-Related Investment Measures (TRIMs), that is, it does not have any local-content or
performance requirements.79  Grants and fixed interest financing schemes are provided for small and
medium sized enterprises with local equity of at least 30% (section (iv)(b)).
                                                     
77 The Research Incentive Scheme offers grants to support the development of in-house R&D
capabilities of Singapore-based companies;  the Research and Development Assistance Scheme offers support
for specific projects that lead to the enhancement of the company's competitiveness and in-house capabilitydevelopment.
78 National Science and Technology Board (1998).
79 WTO document G/TRIMS/N/1/SGP/1, 22 October 1996.Singapore WT/TPR/S/67
Page 77
(vi) Intellectual property rights
(a) Introduction
128. With Singapore's emphasis on new technologies and skills-based training for its labour force,
the development of strong laws protecting and enforcing intellectual property rights has become an
important priority.  The Government believes that a strong IPR regime is a key infrastructural
component required to transform Singapore into an Information Technology MegaHub.80
129. Singapore is a party to the Paris Convention, the Patent Cooperation Treaty, and the Budapest
Treaty on the International Recognition of Microorganisms for the purposes of Patent Procedure;
Singapore became a member of the World Intellectual Property Organization (WIPO) in
December 1990.  Singapore acceded to the Paris Act of the Berne Convention on 21 September 1998.
Singapore is not a member of the Rome Convention or of the Treaty on Intellectual Property inrespect of Integrated Circuits.
130. Under the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights
(TRIPS), Singapore as a developing country member of the WTO, had until 1 January 2000 to
implement the provisions of this Agreement;  however, Singapore amended all its relevant intellectual
property legislation, making its regime fully compliant with the TRIPS Agreement one year ahead ofthe deadline.
81  In addition, Singapore notified the TRIPS Council that since its Patent Act did not
exclude from patentability inventions relating to pharmaceutical and agricultural chemical products,
no measures were necessary in relation to Article 70.8 of the Agreement.82
(b) Copyright and related rights
131. Singapore's main copyright legislation is contained in the Copyright Act 1987, which
provides copyright protection during the author's lifetime plus 50 years;  sound recordings and
audio-visual broadcasts, including cable programmes , are protected for 50 years from first broadcast
or publication;  published editions of works are protected for 25 years from the year in which the
edition was first published (Table III.19).  Singapore, grants protection for broadcasts only if the
headquarters of the broadcasting organization is situated in another WTO Member country as
provided for under the Rome Convention.83
132. In April 1998, amendments to the Copyright Act brought Singapore's copyright legislation
into conformity with its obligations under the TRIPS Agreement.  The amendments included
provisions on rental rights for computer programs and sound recordings, and tighter laws concerning
seizure by the authorities of infringing material.  In addition, a new section (Part XII) was introduced,
which extends protection to performers with regard to live performances.  Singapore grants protection
for performances in Singapore by foreigners resident in or visiting Singapore and to nationals from allWTO Members.
                                                     
80 Ministry of Trade and Industry (1998b).
81 This was to fulfil an undertaking Singapore had given to APEC.
82 WTO document IP/N/1/SGP/1, 16 July 1996.
83 WTO document IP/N/2/SGP/1, 2 March 1998.WT/TPR/S/67 Trade Policy Review
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Table III.19
Summary of intellectual property rights protection in Singapore corresponding to its TRIPS obligations
IPR Main legislation Duration of protectionMinimum duration of
protection under
TRIPSComments
Copyright Copyright Act, (Cap 63) Life of author plus 50
yearsLife of author plus 50
years
- Related rights
(Sound recordings,
cinematographic
films, television
and soundbroadcast and cable
programmes)50 years after first
publication, first
broadcast or first
inclusion in a cable
programme service20 years from year of
broadcast;  50 years
from year of
performance or fixation
(Published editions
of works)25 years from the year
in which the edition
was first published
Patents Patents Act, (Cap 221) 20 years from date of
filing20 years from date of
filing
Industrial designs United Kingdom Design
(Protection) Act,
(Cap 339)25 years 10 years New legislation being
considered
Trade Marks Trade Marks Act, 1998 Indefinite as long as
renewal fees paid every
10 yearsAt least 7 years;
renewable indefinitely
GeographicalIndicationsGeographical
Indications Act 1998Unlimited Unlimited
Layout designs for
integrated circuitsLayout Designs of
Integrated Circuits Act
1999Either 10 years from
commercial exploitation
or 15 years after
creation10 years from first
commercial exploitation
Confidential data/testdataMedicines
(Amendment) Act 1998;
Control of Plants
(Amendment) Act 19985 years No specific period
Source: Government of Singapore.
(c) Trade marks
133. Trademarks may be granted indefinitely as long as the owner makes an initial payment of
S$275 (S$150 to lodge the application and S$125 to publish the application in theGovernment  Gazette ), and renews the trade mark through the payment of S$200 to the Registrar of
Trade Marks every ten years.  The main change since the previous Review has been the enactment of
a new Trade Marks Act, 1998.  The Act contains provisions for the protection of well-known marks
for both goods and services.  In addition, the Act protects three-dimensional marks.
134. In cases where a trade mark application has been made in any of the member countries of the
WTO, parties to the Paris Convention, or approved countries for priority claim
84, the owner of the
trade mark may register the mark in Singapore prior to other applicants;  the registration date of such
priority trade marks is the same as the original date of application in the priority country.  Such
applications receive priority status only if the application is made within six months of the date of the
original application.85
                                                     
84 Thus far no country has been gazetted as an approved country.
85 Intellectual Property Office of Singapore (undated (a)).Singapore WT/TPR/S/67
Page 79
135. Previously, protection for trade marks was provided for under the United Kingdom
Trade Marks Act, 1938.  The main changes in th e new Act, according to the authorities, are
modernization and simplification of filing procedures in line with international trends, and a simpler
examination process.
(d) Patents and other industrial property rights
Patents136. In February 1995, Parliament passed the Patents Act, subsequently amended by the Patents
(Amendment) Act 1995.  The main changes include amendments to sections 55-60 dealing with
compulsory licencing, and sections 61-63 and 65 dealing with the use of patented inventions for
government services and during emergencies.
137. Under the Patents Act, 1995, protection is granted for a period of 20 years from the date of
filing.
86  All products and processes, including new plant varieties, are patentable under the Act.
Patent applications are filed with the Registrar of Patents, along with the prescribed fee, which has to
be paid not later than one month from the date of filing.
138. Compulsory licence applications may be made to the High Court after three years of the
patent being granted, or four years from filing, whichever is the later.  If the Court believes that thereare sufficient grounds to issue a compulsory licence, that is, that a market for the patented invention is
not being supplied or not being supplied on reasonable terms, the Court may grant a licence to the
applicant under terms and conditions deemed fit.
87  The reasonable terms would relate to ensuring that
reasonable remuneration is received by the beneficial owner of the patent.  Licences of this nature
may not be granted unless the applicant has failed to obtain a licence after having taken all reasonable
steps to obtain the licence directly from the patent holder on reasonable commercial terms and
conditions;  and for patents relating to an integrated circuit, except to remedy a situation judgedanti-competitive by a court of law.  According to the authorities, no compulsory licences have been
granted under this provision.
139. Products or processes patented in Singapore may also, at any time, be used by the
Government or any person authorized in writing by the Government, with the consent of the patent
holder.  The Government also has powers to use any patented product or process during an emergencyunder Section 65 of the Act in relation to the security or defence of Singapore;  or to assist in the
exercise of powers and the implementation of civil defence measures in a state of emergency.  In this
case, the use of the patented product or process by the Government must be for public
non-commercial use and non-exclusive.
88
                                                     
86 Article 36 of the Patents Act, 1995.
87 Previously, the grounds on which the Registrar could base his decision included that there was no
production of the patented product or application of the patented process in Singapore without any legitimatereason;  that there was no product produced in Singapore und er the patent for sale in Singapore, or if there were,
they were unreasonably priced or did not meet public demand;  that by reason of the refusal of the patent holderto grant a licence, a market for the export of any patented product made in Singapore was not being met, theworking in Singapore of any other patented invention which made a substantial contribution was hindered or
prevented, the establishment or development of commercial activities were prevented;  and that by reason of
conditions imposed by the patent holder on the grant of licences, or the use of the patented product or process orits manufacture, was unfairly prejudiced (Section 55 (2) of the Patents Act).
88 Use by the Government of a patented product or process also requires appropriate renumeration, as
determined by a court of law, to be paid to the patent holder (Section 65A).WT/TPR/S/67 Trade Policy Review
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Geographical indications
140. The protection of geographical indications under the recently passed Geographical Indications
Act, 1998, is extended to all Members of the WTO, parties to the Paris Convention for the Protection
of Industrial Property and to qualifying countries listed in the National Gazette .89  Protection granted
under the Law is automatic.  Prior to this Act, geographical indications could be protected under the
Consumer Protection Act and under common law.  Geog raphical indications may also be registered as
trade marks under the Trade Marks Act, 1998.90
Industrial designs
141. Industrial designs are currently protected under the United Kingdom Design (Protection) Act,
1938.  Protection is granted for a period of 25 years.  Singapore is presently considering new
legislation for industrial designs.
Layout designs of integrated circuits
142. The Layout Designs of Integrated Circuits Act, 1999 provides protection for layout designs
created after 15 February 1999.  Protection under the Act is granted for designs owned by nationals
and residents of Singapore, Members of the WTO and any other qualifying countries as designated by
the Minister of Law.91  There are no registration requirements as such and protection is automatically
granted, if the design is judged to be original, for a period of ten years after exploitation if exploitation
occurs within five years of the design being created, or for 15 years for all other designs.92
Other
143. Protection of confidential and test data is accorded under the Medicines (Amendment) Act
(No. 7 of 1998), and the Control of Plants Ac t (No. 32 of 1998), for up to five years.
(e) Penalties and enforcement
Copyright144. Penalties for infringing copyright include a fine of up to S$10,000 for each article, or
S$100,000, whichever is lower, or a prison term not exceeding five years, or both.  The distribution of
infringing material for trading purposes is subject to a maximum penalty of S$50,000 and/or a
maximum prison term of three years.  The making of or possession of equipment used for making
infringing copies attracts a maximum penalty of S$20,000 and/or up to two years imprisonment.  Thepolice may also arrest persons who, in public, sell infringing material or have or are suspected of
having in their possession infringing materials for the purpose of sale or hire, without the need for an
arrest warrant (Section 138).  The police may not raid suspected sites without warrants.
145. The Copyright (Amendments) Act, 1998 further strengthens enforcement measures allowing
seizure at the border by the Customs and Excise Department if the owner of the copyright materialfiles a written notice with the Director General of Customs objecting to the import of the infringing
material.  The seized material will be held for a period of ten working days; it will be released after
that period unless Customs is informed that the copyright holder has begun court proceedings against
                                                     
89 Thus far no qualifying country has been gazetted.
90 Intellectual Property Office of Singapore (undated (b)).
91 Thus far no qualifying country has been gazetted.
92 Section 7, Layout Designs of Integrated Circuits Act, 1999.Singapore WT/TPR/S/67
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the importer of the infringing material.  Customs officers are given the power to search any incoming
vessels, aircraft, and vehicles in connection with enforcement at the border.
Patents and other industrial property
146. Under the Patents Act, 1994, patent holders have recourse to the High Court in cases where
they believe their patent has been infringed.  Under Part XIII of the Act the patent holder may claim
an injunction restraining the defendant from continuing the alleged infringement activities and fordamages to be determined by the Court.
147. Counterfeiting of registered trade marks is liable to a fine between S$10,000 and S$100,000
and/or imprisonment for up to five years, depending upon the offence committed.
93  T h e
Trade Marks Act also provides powers of seizure to the police and to the Customs and Excise
Department, following written notice from the trade mark holder.  As in the case of copyrightinfringements, the Act gives wide ranging powers to Customs officers to search any incoming vessels,
aircraft, and vehicles for infringing goods.
148. Civil remedies may be sought by holders of intellectual property rights under the
Layout Designs of Integrated Circuits Act, 1999, and the Geographical Indications Act, 1998, through
Singapore's High Court.
149. In response to concerns about illegal copying of copyrighted works, the Singapore
Government has stepped up efforts to enforce intellectual property rights.
150. In April 1998, new legislation was introduced to licence optical disc (OD) manufacturers in
Singapore and control the import of optical media production and master equipment through
amendments to the Control of Manufacture Act (CMA) and the Regulation of Imports and Exports
Regulations.  Under the CMA, OD manufacturers, su ch as producers of compact discs, video compact
discs, CD-Roms, DVDs and DVD-Roms must be  approved by the Economic Development Board
(EDB).  In addition, under amendments to the Regulation of Imports and Exports Regulations
importers will require a permit to bring in mastering and replicating equipment for use in Singapore
unless they are approved OD manufacturers.  A Code of Conduct has also been signed by all licenced
optical disc manufacturers, which commits them to put in place practices that would prevent illegal
activities in their plants.
94
151. Enforcement measures were stepped up with the creation of a dedicated police IPR warrant
unit within the Criminal Investigation Department.  The unit provides a central point in the police that
focuses on IPR violations, thereby speeding up the process of search and seizure.  Enforcement is also
carried out by the Customs and Excise Department, at the border, the Films and Publications
Department, and the Hawkers Depart ment.  According to a press release (PR No:  019/99) issued by
the Government of Singapore in March 1999, the authorities carried out nearly 700 raids and
inspections, seizing over two million infringing ar ticles and arresting nearly 160 persons in the course
of 1998.  Police investigations have also helped to break up five syndicates involved in illegal copying
and sales of protected material.  Simultaneously the Government launched a nationwide programme
in December 1998 to educate the population and raise public awareness about the importance ofintellectual property rights.  The programme is being implemented by the Singapore Trade
Development Board, the agencies in charge of intellectual property in Singapore, and media owners.
                                                     
93 Sections 46-52, Trade Marks Act, 1998.
94 According to an Info-communications Development Authority (IDA) Press Release, however, this
restriction on imports of cryptographic products was lifted on 21 January 2000 (IDA 2000, MediaReleases/2000/19Jan2000 [Online].  Available at:  www.ida.gov.sg/).WT/TPR/S/67 Trade Policy Review
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A poster campaign was also launched with the help of private advertising companies and additional
methods of raising public awareness are currently being explored.
(vii) Competition and regulatory issues
152. Singapore has no legislation on competition policy;  according to its APEC Individual Action
Plan, Singapore depends on its free and open market to ensure a competitive environment in the
domestic economy.95
153. Nevertheless, the growth and recent liberalization of several services sectors has underlined
the need for regulatory mechanis ms to ensure that incumbent, previously monopolistic, service
providers allow competition to flourish.  This is especially important for basic infrastructure and
utility services such as telecommunications, transport, gas, and electricity, which are major business
inputs as well as consumer products.  Efficient provision of these services at competitive prices isessential for the international competitiveness of Singapore enterprises.  Thus, sector specific,
government imposed, regulatory policies were adopted for the services sectors.  In several of these
sectors, statutory boards were established to provide regulation and monitoring services.  Examples
include the Telecommunications Authority of Singapore (TAS) for telecommunications services;  the
Civil Aviation Authority of Singapore (CAAS)  for air transport;  and the Maritime and PortAuthority (MPA) for maritime transport and port services.
154. As regards water and energy, according to the authorities, there is competition in water
supply, except in the case of potable water, and piped gas supply is open to competition.  Competition
is also being gradually introduced into electricity supply.  The path normally taken is the
corporatization of a public utility followed by its partial privatization and the entry of other service
providers in the market.  In this respect, the Public Utilities Board's electricity and piped gas
undertakings were corporatized in October 1995, separating regulation and supply in these markets.The PUB is the regulator for the supply of piped gas for cooling and heating purposes.  The supply of
bottled gas and piped natural gas for power generation is not subject to regulation.  For electricity
supply, further liberalization planned by 2001 will ensure separation of the ownership of the
generating companies from that of the transmission and distribution company (Chapter IV(4)).
Currently, there is only one transmission and distribution company – Power Grid – for electricitysupply.
155. In the goods sector, although Singapore relies on open market policies rather than anti-trust
legislation to ensure competition in the market, there has been a recent debate on the role of
government-linked corporations and their possible adverse impact on competition in the economy.
Their role, particularly in "non-strategic" market s, has been questioned by small local companies,
especially given their connection with (through ownership) and backing from Temasek Holdings, the
government holding company.
156. There appears to be an internal debate in Singapore about the role of Temasek and the GLCs.
Questions have been raised in Parliament, by several members, regarding public accountability and
disclosure standards of government holding and linked companies.
96  The extent to which the
Government, through Temasek, is involved in the Singapore economy is not clear;  Temasek does not
appear to publicly disclose details about its ownership of GLCs.  Concerns have also been expressed
                                                     
95 APEC Secretariat (1998) Attachment 8.
96 It has also been suggested that annual reports, even of several publicly listed companies, do not
provide adequate information to their shareholders or to potential investors ("When firms tell more, thegrapevine will matter less" Business Times , September 28 1999).Singapore WT/TPR/S/67
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about pressure from GLCs on local enterprises and it has been suggested that GLCs should confine
their activities to overseas markets.97
157. The Government's response to suggestions that it divest its share in GLCs has been positive.
There appears to be a willingness to divest in all but "strategic" GLCs;  however, given the
considerable effort and resources expended in developing the GLCs thus far, the Government would
want to transfer ownership to one owner or a gr oup of shareholders with significant ownership in
order to ensure that "the GLCs remain in relatively good hands."98  The Chairman of Temasek, in a
first public interview since the formation of the company, has also declared that Temasek will
separate the functions of chairman and chief executive of its companies and will limit their terms in
office to improve corporate governance in these companies.99
158. Policies to address corporate governance and improve transparency in corporate disclosures
are most advanced in the financial services sector.  The Stock Exchange of Singapore has issued a
"Best Practices Guide", including guidelines on th e minimum amount of information expected to be
published in a company's reports and the frequency of such disclosures.100  Moreover, a report by the
Corporate Finance Committee, issued in October 1998, recommends high disclosure standards that
would allow investors to make informed decisions.   The establishment of a Singapore Institute of
Directors, moreover, is expected to encourage good governance among companies through an
improvement in training and standards for directors and a Code of Best Practices for corporate
governance.101  In addition, improved corporate governance requirements is a key factor in the recent
banking reforms undertaken by the Monetary Authority of Singapore (Chapter IV(4)(iv)).
                                                     
97 Republic of Singapore (1998a).
98 Oral Answers by the Minister of Finance to questions raised in Parliament, 27 February 1998, p. 460.
99 The terms of the non-executive chairmen will be limited to six years (two terms of three years each),
with a further term to be considered  only under exceptional circumstances ( The Straits Times , 25 June 1999.)
100 Stock Exchange of Singapore (1998).
101 Republic of Singapore (1998b).WT/TPR/S/67 Trade Policy Review
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Annex III.1:  Anti-dumping and countervailing procedures in Singapore1
Singapore's anti-dumping and countervailing legislation is contained in the 1996 Countervailing and
Anti-dumping Duties Act, (Cap 65B, 1997 Ed.) and the 1997 Countervailing and Anti-dumping
Duties Regulations, (Cap 65B Regulation).
Preliminary investigation and measures:  The Minister may initiate a countervailing or anti-
dumping investigation on imports under Sections 4 and 19 of the Act, respectively.  Petitions onbehalf of the local industry may be submitted by anyone representing the industry, and should contain
information regarding, inter alia,  the volume and value of domestic production of like goods
accounted for by the petitioner;  details of the producers, volume and value of the imported goods;  as
well as any factual information relevant to the alleged countervailable subsidy or dumping.  In
addition, a non-confidential version of the petition must be submitted to the Minister, enabling theinformation to be publicly disseminated.  Any decision on whether to initiate an investigation must be
made by the Minister within 30 days of receipt of the petition.  In the event that a decision is taken not
to initiate an investigation the Minister must notify the petitioner of the reasons for rejection.
When a decision is taken to initiate an investigation, the Minister must provide a complete,
non-confidential version of the petition to all known exporters, interested foreign governments and,upon request, to all other interested parties.  A notice of initiation of the investigation follows.  During
the investigation period, the Minister may solicit fu rther information through questionnaires, issued to
any relevant parties within a reasonable period of time from the date of publication of the notice of
initiation of the investigation.  At least 30 days must be given for responses to the questionnaire from
the date of its receipt (the questionnaire is deemed to have been received seven days from the date on
which it was sent).  A supplementary questionnaire, a request seeking additional information, or a
request seeking clarification may be issued by the Minister requiring a response within the timespecified in the questionnaire or request, as the case may be.  A preliminary determination on the
investigation must be made and published within  90 days (extendable by a maximum of 90 days in
special circumstances) from the date the notice rega rding initiation of the investigation was issued.
Provisional measures must not exceed four months and six months, for countervailing and
anti-dumping investigations, respectively;  in the case of anti-dumping measures, the Minister maydecide, upon the request of exporters representing a significant percentage of the trade involved, to
extend the period to nine months (Regulation 12(2)(b)(ii)).
Final measures:  For countervailing cases, a final determination must be made within 120 days from
the date the preliminary determination is published .  For anti-dumping measures, final determination
must be made within 180 days from the date the preliminary determination is published;  however, inthe case of preliminary measures imposed under Regulation 12(2)(b)(ii) (see above), final measures
must be taken within 270 days from the date of publication of the preliminary determination.  For
both anti-dumping and countervailing investigations, final measures may last up to five years unless
extended pursuant to a review by the Minister (Sections 12(7) and 26(7) of the Act for countervailing
and anti-dumping measures, respectively).
Reviews:  A review of an anti-dumping or countervailing measure must normally be undertaken no
earlier than one year after the date of publication of the determination or decision in question.  Where
a countervailing duty has been imposed on goods exported by an exporter who was not investigated
                                                     
1 WTO documents G/ADP/N/1/SGP/2, 27 November 1996 (Countervailing and Anti-Dumping Duties
Act, 1996), and G/ADP/N/1/SGP/2/Suppl.1, 13 May 1997 (Countervailing and Anti-Dumping DutiesRegulations).Singapore WT/TPR/S/67
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for reasons other than a refusal to cooperate, an ex pedited review is carried out and completed within
six months of publication of the notice of initiation of the review.  For anti-dumping duties, in the
case of new exporters, a review may be initiated if the exporters or producers can show that they are
not related to any exporters or producers already subject to the anti-dumping duty;  such a review
must be completed within nine months of the date  of publication of initiation of the review, during
which time no anti-dumping duties may be levied on the exporters under investigation.
Five-year reviews:  Notice of the impending termination of any countervailing or anti-dumping
duties at the end of the five-year period must be published at least six months prior to the date of
termination, allowing interested parties to presen t their views on the proposed termination within the
notice period.  Any decision by the Minister to initiate a review to extend the duties must be published
and the review would normally be completed within 180 days (one year at the latest) of publication ofthe notice of the initiation of the review.  Pendin g the outcome of the review, the countervailing or
anti-dumping duties being investigated, would continue to be in force.
Anti -dumping Tribunal:  A Tribunal, whose members are appointed by the Minister for Law, may
review determinations or decisions taken by the Minister for Trade and Industry under the
Countervailing and Anti-Dumping Duties Act.  Any such application for a review by the Tribunalmust be filed within 30 days of the findings in question or their notification or publication, depending
on the circumstances.