WORLD TRADE  
ORGANIZATION  WT/TPR/M/202 
10 September 2008  
 (08-4250) 
Trade Policy Review Body 
14 and 16 July 2008  
 
 
 
TRADE POLICY REVIEW 
 
SINGAPORE 
 
Minutes of Meeting  
 
Chairperson:  H.E. Mr. Mario Matus (Chile) 
 
   Page 
 
I.
 INTRODUCTORY REMARKS BY THE CHAIRPERSON 3  
II. OPENING STATEMENT BY THE REPRESENTATIVE OF SINGAPORE 4  
III. STATEMENT BY THE DISCUSSANT 5  
IV. STATEMENTS BY MEMBERS 6  
V. REPLIES BY THE REPRESENTATIVE OF SINGAPORE AND ADDITIONAL 
COMMENTS 15  
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 18  
 
 
Note:   Advance written questions by WTO Me mbers and the replies provided by Singapore are 
reproduced in document WT/TPR/M/202/Ad d.1 and will be available online at 
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/202 
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  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The fifth Trade Policy Review of Singapore was held on 14 and 16 July 2008.  The 
Chairperson (H.E. Mr. Mario Matus) welcomed the delegation of Singapore, led by Mr. Ravi Menon 
(Second Permanent Secretary, Ministry of Trade a nd Industry), H.E. Ms. Karen Tan, as well as the 
discussant H.E. Mr. Shinichi Kitajima (Japan).  As  usual, the discussant would speak in his personal 
capacity and not as a country representative.  In  accordance with established procedures, the 
discussant had provided, in advance, outlines of th e main issues he intended to raise (document 
WT/TPR/D/177). 
2. The Chairperson recalled the purpose of Trade Po licy Reviews and the main elements of the 
meeting's procedures.  The report by Singapore w as contained in document WT/TPR/G/202 and that 
of the WTO Secretariat in WT/TPR/S/202.  As indicated in WT/TPR/6/Rev.1, the Member under 
review should provide written answers, by the be ginning of the review meeting, to questions 
submitted at least two weeks before the meeting.  Questions posed subsequently should be answered, 
to the extent possible, before the start of the second session of the meeting.  Questions left 
unanswered at the end of the second session should be  answered in writing no later than one month 
after the meeting.  The following delegations had submitted questions in writing at least two weeks in 
advance of the meeting and these had been transmitted to the delegation of Singapore:  Brazil, India, 
China, Switzerland, Chile, Canada, the European Co mmunities, the United States, Argentina, Rep. of 
Korea, Australia, Colombia, Japan, and the Separa te Customs Territory Taiwan, Penghu, Kinmen and 
Matsu (Chinese Taipei).  Copies of these questions and of Singapore's answers were available in the 
meeting room.  Written questions by Indonesia;  the Philippines;  Hong Kong, China;  Pakistan;  
New Zealand;  and Costa Rica, submitted after the two-week deadline, had also been transmitted to 
the delegation of Singapore, and copies, along with th e answers, were availabl e in the meeting room.  
All advance questions and responses are reproduced in WT/TPR/M/202/Add.1.  
3. The Chairperson stated that Singapore's economy remained one of the most open in terms of 
international trade and foreign investment.  Tariffs  were virtually zero, total merchandise trade was 
nearly four times GDP, and inflows of foreign direct  investment were substantial. Although its high 
degree of openness risked  leaving Singapore suscep tible to periodic external shocks, the economy's 
flexibility enabled it to adjust ra pidly to these shocks by improving international competitiveness, 
which in turn contributed to economic growth and higher living standards.  Since 2004, annual real 
GDP growth averaged 7.9%, inflation was low,  at 1.3% annually, albeit rising recently, and 
unemployment had fallen from 3.4% (in 2004) to unde r 2% in 2007.  Singapore had not been spared 
the challenges of globalization and its competitiven ess had been tested by the rise of low-cost 
economies in the region.  Competition from low-co st producers together with Singapore's rising 
labour costs had resulted in a continued shift aw ay from labour-intensive to high-value-added, 
capital-intensive activities by d eepening Singapore's technology b ase and strengthening knowledge-
based manufacturing and services.  Singapore had continued to lower the corporate income tax rate 
and provide tax incentives to encourage high growth , high value-added sectors.  However, although 
average incomes had risen as Singapore has benefi ted from globalization, income inequality had 
widened, reflecting to some extent higher wage increases for skilled and well-educated workers.  
Singapore had continued to pursue bilateral FTAs vi gorously since 2004, concluding six, and was in 
the process of negotiating several more.  Singapore believed that FTAs acted as a catalyst for global trade and investment liberalization and, being WT O-plus, could be used as building blocks towards 
greater multilateral liberalization.   WT/TPR/M/202 
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  II. OPENING STATEMENT BY THE RE PRESENTATIVE OF SINGAPORE 
4. The representative of Singapore
 focused on one of the key policy challenges facing the 
Singapore economy over the medium-term:  the question of how Singapore could address the downsides of globalization while seizing its opportunities.   This had a broader re levance in the current 
context – amidst the growing anxiety in many count ries about globalization and liberalization, and the 
opportunity presented by the upcoming WTO Ministerial meeting to turn back the rising threat of 
protectionism and build a firm consensus and commitment in favour of trade liberalization. 
5. Singapore was one of the most open and free economie s in the world, with a ratio of trade to 
GDP of about 350%.  Apart from six lines for alcoho lic beverages, Singapore imposed zero tariffs.  
There were no export subsidies, import quotas, capital controls, or restrictions on foreign investment.  
Singapore had been ranked by Foreign Policy  as the most globalized country in the world in four out 
of the last seven years.  It had topped the Enabli ng Trade Index, a new global index compiled by the 
World Economic Forum to measure openness to inte rnational trade and investment.  As a small 
economy, Singapore had no other choice but to embrace globalization, open up its markets, and foster competition.  It was in Singapore's vital interest to advance the global trade and investment 
liberalization agenda and to ensure a strong rul es-based multilateral trading system.  Singapore had 
been a consistent champion of liberalization on the multilateral, regional, and bilateral fronts. 
6. Regarding the challenges posed by globalization and liberalization, he cited three challenges 
of particular relevance to Singapore:  first, it faced strong competition from low-cost producers;  second, external demand and price s hocks were quickly transmitted in to the domestic economy;  and 
third, the international division of labour meant increasing wage inequality within the workforce.  
Singapore's response had been to deal with these downsides by seeking to enhance competitiveness, 
build new capabilities, and ensure opportunity for all segments of society.   
7. He noted that to enhance competitiveness, the tax system had been restructured away from 
direct to indirect taxation, while maintaining fiscal prudence and sustaina bility.  The economy was 
being restructured towards higher value-added, knowledge or technology intensive activities, which 
were less vulnerable to cost competition.  Singapo re had been building on its existing strengths in 
financial and business services, transportation and logi stics, and tourism, to position the economy as a 
services hub in Asia.  Manufacturing was transiti oning towards newer and higher value-added 
activities like biomedical sciences, chemicals,  and clean energy, as lower-cost manufacturing 
activities shifted to cheaper locations in other parts of Asia.  The Government's role had been centred 
on encouraging investment in R&D, building su pporting infrastructure, and addressing resource 
constraints.  
8. Retraining and continuing education programm es ensured that the wo rkforce was able to 
support new activities, improve their productivity, and command healthy wages.  This included a 
workforce skills qualification system to facilitate  adult learning and provide career progression 
pathways.  Government expenditure had been incr eased to ensure that basic healthcare and public 
housing remained affordable for most Singaporeans, with subsidies targeted at the lowest income 
groups.  A wage supplementation programme had been  put in place to help low-wage workers, and 
fiscal surpluses were re-distributed to Singaporeans with more going to the elderly and needy.   
9. As a small economy, Singapore did not seek to de termine external developments nor insulate 
itself from them.  Its response had been to adapt, adjust, restructure, and transform itself.  Trade 
liberalization had raised living standards, re duced poverty, and provided opportunity for large 
segments of society, in many countries.  He urge d Members to work towards a successful conclusion 
of the Doha Round, which promised benefits for all.  WT/TPR/M/202 
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  III. STATEMENT BY THE DISCUSSANT 
10. The discussant  noted that Singapore's economy, in term s of international trade and foreign 
investment, had remained one of the most open, and thus competitive, in the world, as illustrated in 
the Global Enabling Trade Report 2008  of the World Economic Forum.  The openness, 
competitiveness and flexibility of Singapore's econom y were accompanied by sound leadership in 
regional matters, such as the Declaration on th e ASEAN Economic Community Blueprint at the 
13th ASEAN Summit.  Nevertheless, Singapore was facing new challenges:  the outlook for 2008 was 
for slower growth and higher inflation, reflecting in  large part developments in the U.S. economy and 
global food and energy prices. 
11. Competitiveness was challenged by the rise of lowe r-cost economies in the region.  He asked 
Singapore to explain the measures taken to lower business costs as well as to increase 
competitiveness, in particular, measures to promot e innovation, aiming at moving Singapore into 
high-value-added manufacturing and services.  Gross expenditure on R&D was planned to increase to 
3% by 2010.  On the nominal effective exchange rate, the authorities considered that the stronger 
exchange rate would reign-in cost pressures at  the industry level, as derived demand for factor 
resources in the economy eased, thereby moderating inflationary pressures in the economy.  He asked 
the Singapore delegation to explain this view .  Openness through globalization had benefited 
Singaporeans, except for some older and less educated workers, who remained vulnerable to structural 
unemployment.  He asked Singapore about how it intended to sustain an appropriate social safety net in view of widening income gaps.   
12. The trade to GDP ratio was 348%, the highest in  the world in 2007, indicating the importance 
of trade for Singapore.  Concerning the link between FTAs and the multilateral trading system, he 
appreciated Singapore's view that FTAs were "build ing blocks" for the multilateral trading system and 
accelerated the momentum towards trade liberaliz ation.  Furthermore, some FTAs such as the 
US-Singapore Free Trade Agreement contained the provision to enact an economy-wide competition law as well as to improve transparency of the mana gement of government investment funds.  He 
commended Singapore for introducing an overa rching Competition Act and establishing the 
Competition Commission of Singapore, thus improvi ng systemic transparency.  He wondered how 
Singapore evaluated the impact of the implementati on of the Competition Act and the functioning of 
the Commission.  He welcomed Singapore's leadersh ip in the area of aid for trade, including the 
provision of technical assistance through the Singapore Cooperation Programme.  
13. Singapore had bound some 70% of its tariff lines, which was unchanged from its previous 
Review.  The gap between applied and bound MFN rates and the absence of bindings for about 30% 
of tariff lines should be addressed in order to achie ve more predictability for traders.  The Singapore 
authorities apparently kept the re latively low bindings for negotiati ng purposes in the context of the 
DDA and other negotiations.  Regarding how Sing apore assured the transparency of Temasek and 
government-linked companies (GLCs), the Secretar iat Report stated that, Temasek was sometimes 
seen as "the investment arm of the Singapore Gove rnment and acquisitions" and could meet local 
resistance;  he asked the Singapore delegation for its view of this description. 
14. The economy was largely open for trade in goods  and had become more open for utilities and 
services.  Singapore had undertaken major liberaliza tion in recent years in the financial services, 
energy, and telecommunications sectors.  The Economic Review Committee in 2003, however, reported that many of Singapore's service industries were not yet wo rld class, citing as a main reason 
the belief that Singapore had not been sufficiently proactive and aggressive in developing the services 
sector.  He asked how Singapore would rewrite the report in 2008 and whether Singapore intended to 
reflect its recent positive liberalization of domestic regulations in its next services offer.  Although 
restrictions were being lifted, some services sect ors, dominated by GLCs, were not FDI-friendly and 
he asked when Singapore intended to eliminate these restrictions. WT/TPR/M/202 
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  IV. STATEMENTS BY MEMBERS 
15. The representative of Brazil
 said that, Singapore's trade with Brazil had increased by some 
160% since 2004, to about US$2.6 billion in 2007.  Bila teral trade had increased by a factor of five 
since 2000, and was on the rise.  Singapore was the fourth largest trade partner and destination of Brazilian exports to Asia.  Bila teral trade comprised a wide range of products, varying from 
agricultural to high-technology goods. 
16. Brazil acknowledged Singapore's openness to trad e and investment flows;  the country 
continued to evolve into a base  for multinational companies to coordinate regional procurement, 
production, marketing and distribution operations.  Brazilian companies like Embraer, Petrobras and 
Vale had opened offices there.  He believe that ther e was potential for further expansion of trade.  In 
September 2007, MERCOSUR and Singapore had si gned a Memorandum of Understanding on Trade 
and Investment Cooperation as well as  an action plan, which was current ly being implemented.  Other 
promising avenues for bilateral cooperation were  oil and gas, biofuels, and biotechnology.  A 
framework agreement on cooperation in scien ce and technology as well as a memorandum of 
understanding between the Brazilian and Singapor ean intellectual property agencies were being 
negotiated.  All these initiatives fitted within Singapor e's strategy of diversification of trade relations 
as a means of coping with fluctuations or uncertainties in external supply and demand. 
17. The representative of China
 said that Singapore should be commended for its trade policy 
regime, which was an excellent example of a free, open, and stable trading regime established on the basis of its own specific national conditions.  The G overnment of Singapore had taken an active role 
to create a favourable environment for business and to  facilitate economic development.  Almost all 
of its tariffs were at zero and non-tariff border m easures were almost absent except those for safety, 
health and environmental purposes.  The high de gree of openness made Singapore one of the most 
competitive economies in the world.  Singapore was China's leading trading partner in value terms 
within ASEAN, and China's 8
th and 7th largest partner in the world in terms of two-way trade and 
inward-investment, respectively.  Bilateral trade vol ume had continued to grow rapidly, at 15.4% in 
2007, to reach over US$47 billion, while Singapore's i nvestment in China was US$3.2 billion.  At end 
April 2008, total investment from Singa pore to China reached US$35.1 billion. 
18. Singapore was an active WTO Member, particular ly in the current Doha Round negotiations.  
Singapore participated in all areas of the negotiatio ns and made constructive suggestions on how to 
move negotiations forward.  As a strong supporter of free trade, Singapore had committed substantial 
resources to help strengthen the human resource a nd institutional capacity of developing countries in 
harnessing trade as an engine of growth and deve lopment.  Around 80% of the Singapore Cooperation 
Programme (SCP) had a direct or indirect cont ribution to the WTO Aid-for-Trade Initiative.  
Singapore believed that regional cooperation as well as regional and bilateral FTAs, where consistent 
with WTO rules, produced significant trade liberalization, and formed building blocks of the multilateral trading system.  As host to the APEC Secretariat, Singapore was also a catalyst for 
regionalism in Asia and the Pacific. 
19. The representative of Switzerland
 said that Singapore remained one of the most open, 
competitive and successful economies in the world, and based on various world performance charts, 
Singapore was very often placed in the leading pos itions.  In addition to its participation to the 
multilateral trading system, Singapore also made substa ntial efforts in recent years to open up further 
its markets in the framework of a number of free-tr ade agreements.  In this context, Switzerland and 
other EFTA states were satisfied with the degr ee of implementation of the 2003 EFTA-Singapore 
Free Trade Agreement.  Bilateral economic relati ons continued to progress as evidenced by a 17% 
increase of Swiss exports in 2007.  Singapore was Switzerland's most important trading partner in 
South-East Asia and its fifth largest trading partne r overall in Asia.  Singapore was also an attractive 
destination for Swiss investors and Switzerland was the fifth largest foreign direct investor in  WT/TPR/M/202 
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  Singapore.  Banking and finance accounted for the major part of these investments and Swiss banks 
were a significant employer in Singapore. 
20. Switzerland attached great impor tance to adequate and effec tive protection of intellectual 
property rights.  The name of Switzerland, as well as the Swiss flag, had a very high reputation in 
international trade and Switzerland was therefor e seriously concerned when certain foreign 
companies, with no connection to Switzerland, were  misusing these symbols.  Recently, including in 
Singapore, Switzerland had noted an increasing number of cases where the name of Switzerland or the Swiss flag had been abused, notably in the health/wellness and financial sectors.  Switzerland 
would welcome any initiative by the Government of  Singapore to help combat this regrettable 
phenomenon. 
21. Singapore had bound only 69.6% of its tariffs and the bindings were substantially higher than 
the MFN applied rates.  He hoped that in the context of the Doha Round Singapore would accept to 
substantially increase the degree of binding.  Accord ing to the Secretariat Report, annual GDP growth 
had averaged 7.9% since 2004, and GDP per capita had increased from US$26,198 to US$35,163 in 2007, a level comparable with leading OECD countries.   Given the high level of per capita income, he 
asked whether Singapore was ready to discuss with  other WTO Members the somewhat artificial 
distinctions between LDCs, developing countries,  emerging markets, and developed countries.   
22. The representative of Chile
 noted the initiatives undertaken in research and development, and 
innovation, on which spending amounted to 2.4% of GDP with two thirds from the private sector.  The Secretariat Report had mentioned some incentiv es in this regard, and he asked whether other 
additional measures were used to achieve this level of investment.  Despite privatization, regulatory 
reforms, improvements in institutional transparency, and the entry into force of a competition law, the 
possible distorting role of the State was still im portant even though GLCs now operated more like 
private companies.  Bilateral trade was limite d, amounting to around US$227 million in 2007.  
23. The Trans-Pacific Strategic Economic Partners hip Agreement between Chile, New Zealand, 
Singapore, and Brunei Darussalam, which entered in to force in 2006, had boosted trade by an 
estimated 200%.  Singapore was characterized by  the absence of import tariffs, minimal NTBs, an 
active policy for bilateral and re gional agreements, and a strong commitment to the multilateral 
trading system.  Singapore was an active Member of the WTO and its participation in the current negotiations was ambitious in a number of areas, including NAMA.    
24. The representative of Canada
 said that Canada valued its  bilateral relationship with 
Singapore;  two-way merchandise trade reached an all time high of over US$2.25 billion in 2007, and 
Singapore remained the top south-east Asian destin ation for Canadian FDI, and the region's top 
source of FDI into Canada.  Canada congrat ulated Singapore for its strong overall economic 
performance;  real GDP had grown by 8% from 2004 to 2007 led by the manufacturing and financial 
services sectors, and manufactur ing investment commitments had doubled.  Singapore had also 
continued to liberalize its economy and improve its competitiveness, and should be commended for 
creating and maintaining a highly competitive busin ess environment in which the unemployment rate 
had decreased to the lowest level in a decade.  Singapore continued to nurtu re and increase its IT, 
biotechnology, and genetic engineering industries, increasing its capacity to compete and operate on 
the global market.  However, inflation rates might affect Singapore's highly competitive and free market.  Though many of the increases were linked to global market prices for food and oil, an 
immense amount of capital construction and business development had also contributed to the price 
pressures.  Canada encouraged Singapore to take  steps toward slowing economic growth to a 
sustainable level. 
25. Singapore had become one of the R&D and sci ence and technology (S&T) leaders in the 
region.  It was also building on its existing role  as a services hub by strengthening financial and WT/TPR/M/202 
Page 8  
 
  business services, transportation, and tourism.  Singapore had become a location of choice for 
companies across the region looking for a convenient and impartial place for the resolution of any 
commercial disputes.  It was recognized as a major player in the development of the Asia-Pacific 
economy, as a regional trading partner, and the wo rld's largest container port.  Singapore had an 
important role as a gateway to business in th e region, specifically in India and China. 
26. The representative of th e European Communities
 said that Singapore's economy was one of 
the most open and competitive market-based economi es in the world.  Over recent years it had 
continued to grow at an outstanding rate, underpi nned by sound macroeconom ic policies.  Singapore 
ranked 25th on the Human Development Index and 2nd in the Index of Economic Freedom.  The EC 
encouraged Singapore to continue its efforts in fu rther dismantling the few remaining restrictions to 
foreign direct investment present in broadcasting, the domestic news media, retail banking, and legal 
and other professional services, as well as conti nuing reform in property ownership.  
27. The EC and Singapore enjoyed a stable trade relationship.  The EC ranked as Singapore's 
second major export partner and fourth impor t partner;  Singapore was the EC's 15th major trade 
partner.  Bilateral trade was balanced overall, with  EC imports from, and e xports to, Singapore worth 
about €20 billion.  The EC was not only Singapore' s second largest trading pa rtner, after Malaysia, 
but also by far the largest source of foreign invest ment, accounting for more than a third of all inward 
FDI.  Around 3,500 European companies were established in Singapore. 
28. The EC was negotiating a comprehensive Free Tr ade Agreement with its ASEAN partners.  
While negotiating such an ambitious agenda on a region-to-region basis was not necessarily the easiest or fastest approach, the EC would do its  best to avoid a "lowest common denominator" 
outcome.  It was counting on Singapore to remain am bitious in the FTA process.  Also, a Partnership 
and Co-operation Agreement was almost complete.  The EC's Industrialised Countries Instrument 
(ICI), which promoted cooperation with 17 indus trialized and other high-income countries, now 
included Singapore.  The ICI facilitated cooperati on in three main areas:  public diplomacy and 
outreach;  economic partnership and business coopera tion and people-to-people links.  For instance, 
the EC was funding, in cooperation with the National University of Singapore, the establishment of an 
EU Centre aimed at encouraging greater awareness and knowledge of the EU. 
29. On Singapore's implementation of SPS measures, th e OIE Terrestrial Animal Health Code set 
out a common framework for international trade in animals and animal products.  However, 
Singapore appeared not to fully follow the OIE' s international guidelines and recommendations, in 
particular, as regards the determination of BSE-risk status of exporting countries.  The EC stressed the 
importance of consistent applica tion of the updated OIE recommendations and in this regard, asked 
Singapore to clarify the reasons for not respec ting and adopting the international science-based 
recommendations as regards BSE status.  The EC in vited the Singaporean Agri-Food and Veterinary 
Authority to fully comply with the OIE guidelines.   
30. Singapore had bound only some 70% of its tariff  lines;  a percentage that had remained 
unchanged since its previous Review.  The absence of  bindings for the remaining tariff lines created 
some unpredictability in its trade regime.  The EC  encouraged Singapore to further consolidate its 
tariff regime for the benefit of all economic agents  and business operators.  She noted the enactment 
of an economy-wide competition law in Singapor e;  the EC believed that a comprehensive 
competition framework was essential for creating a predictable and business-friendly regulatory 
environment.  It was interested in Singapore's assessment of the impact on the economy of the new 
competition framework, and its experience with the establishment and functioning of the Competition 
Commission.   
31. The representative of the United States
 applauded Singapore's demonstrated commitment to 
opening markets for trade, development, and econom ic opportunity.  Singapore remained one of the  WT/TPR/M/202 
 Page 9 
 
 
  most open economies in the world and its consiste nt efforts to open markets through multilateral, 
regional, and bilateral initiatives had enhanced its own competitiveness and that of its trading 
partners.  As an open economy, Singapore, according to  the Government's report, had not been spared 
the challenges of globalization.  But, rather th an retreating from the strong competition from low-cost 
competitors, Singapore had embraced it by maintaining macroeconomic stability;  seeking higher 
value activities and upgrading workers'  skills;  capitalizing on opportunities in new growth industries;  
positioning the economy as a services hub;  and investi ng in research and develo pment.  In 2005, the 
Competition Commission of Singapore was established,  thereby improving institutional transparency.  
According to the Singapore Government, these refo rms had "sharpened Singapore's competitive edge 
and positioned it well to face the challenges posed by  globalisation and seize its opportunities".  The 
principal message for Members was that to succeed in  the face of globalization, they had to discover 
how to make globalization work for their economies a nd citizens, rather than to pretend they could 
insulate themselves. 
32. Singapore's deep integration into the global economy had helped it become a prosperous 
nation, with per capita GDP exceeding US$35,0 00 in 2007.  In the same year, Singapore's 
merchandise trade was four times its GDP, and inflow s of FDI was equivalent to one-sixth of GDP.  
By focusing on private-sector-driven R&D and innovation, Singapore's de velopment strategy 
continued to shift from emphasis on using technology to creating technology.   
33. The 2004 United States-Singapore Free Trade Agr eement was the first comprehensive U.S. 
FTA with an Asian nation.  Singapore-U.S. two-wa y trade in goods totalled US$46 billion in 2007.  In 
2006, the United States was Singapore's second larg est export market taking roughly 11.5% of 
Singapore's exports.  In the same year, the Unite d States was also Singapore's second largest supplier 
with roughly 13% of its total imports coming from the United States.  Two-way trade in services was 
US$10.5 billion in 2006.  U.S. FDI to Singapore w as US$60 billion, an increase of almost 11% from 
levels in 2005.  The United States and Singapore continued to work together to promote trade and 
intra-regional integration in south-east Asia thr ough both APEC and ASEAN.  Singapore, as host of 
APEC 2009, had indicated that it sought to maintain the momentum on Regional Economic 
Integration in APEC.  
34. The United States welcomed Singapore's trade policy objective to promote a free, open, and 
stable multilateral trading system.  It agreed w ith Singapore that the WTO's rules-based multilateral 
trading regime had brought greater predictability an d security to the conduct of trade among nations.  
The United States shared the view that the global trading system benefited from all WTO-consistent 
efforts to pursue the maximum possible extent of  liberalization on the multilateral, regional, and 
bilateral fronts.  Earlier in the negotiations, Mi nister Yeo had urged Members to keep the Doha 
negotiations on track because they were the best way to  reap the benefits of trade liberalization and to 
show greater respect for one another's positions and find creative ways to accommodate different 
interests.  This message was well worth recalling as the WTO approached the upcoming meetings of 
ministers.   
35. The representative of India  said that Singapore was a model of openness and a lesson on what 
an open market economy should be.  With a few excep tions, tariffs were zero, total merchandise trade 
was nearly four times GDP, and inflows of FDI we re substantial.  Singapo re had one of the most 
efficient container ports, and an airport that was a major aviation hub in the Asia-Pacific region with handling capacity of nearly 70 million passengers per year.  The flexibility of Singapore's economy 
had enabled it to adjust rapidly to economic shoc ks by constantly improvi ng productivity, and thus, 
international competitiveness.  Singapore had evol ved into a base for multinational companies to 
engage in high-end manufacturing an d product development, and to c oordinate regional procurement, 
production, marketing, and distribution operations. WT/TPR/M/202 
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  36. India and Singapore enjoyed a strong partne rship anchored in extensive political and 
economic cooperation.  Economic, commercial, and inv estment relations had grown robustly in recent 
years.  Bilateral trade was about US$11.50 billion in 2006-07.  Singapore ranked first in terms of 
India's bilateral trade with the ASEAN region.  Indian companies had been increasingly using 
Singapore's strategic location and excellent infrast ructure to expand their commercial activities.  
Singapore ranked fourth as a destination for India' s exports.  The balance of trade had traditionally 
been in favour of Singapore but from 2004-05 had tilted in favour of India. 
37. Singapore also ranked fourth in terms of foreig n direct investment inflows into India with 
total investment of US$2.7 billion.  The tota l stock of Indian FDI in Singapore was around 
US$1.12 billion.  There were around 3,000 Indian comp anies registered in Singapore with substantial 
business operations. 
38. The Comprehensive Economic Cooperation Agreement (CECA) between India and 
Singapore, signed in 2005, was an important milestone  in enhancing bilateral relations especially in 
trade and investment.  It was India's first FTA out side its immediate neighbourhood.  As a result of 
the CECA, tariffs on 75% of Singapore's exports we re eliminated or substantially reduced;  both 
countries committed to liberalize various service sectors ;  mutual recognition agreements to eliminate 
duplicate testing and certification of products in specific sectors were provided for.  A Protocol for Amendment of the CECA was signed in 2007 with a dditional tariff concessions to Singapore on 539 
tariff lines.  Bilateral trade in goods had gone up  by 30% in the post-CECA phase, and the buoyant 
trend was expected to continue. 
39. The representative of Argentina
 said that bilateral trade was still modest.  Argentina 
appreciated the importance Singapore placed on bilateral and regional trade agreements as catalysts of 
greater trade liberalization.  This, together with  Singapore's leading role both in ASEAN and in 
APEC, made it an important player in reinforc ing trade ties between th e respective nations and 
regions.   
40. The representative of Korea  said that, as strong supporters of the multilateral trading system, 
Korea and Singapore had long maintained a mutually  prosperous economic re lationship.  Singapore 
was Korea's eighth largest trade partner in 2007, wi th total bilateral trade reaching US$19 billion, a 
substantial increase since 2005.  They were also cl ose partners in terms of  bilateral investment:  
Singapore was the fourth largest investor in Korea in 2007.  The bilateral FTA, which entered into 
force in March 2006, would  further strengthen the economic partnership. 
41. He congratulated Singapore for its strong econom ic growth since 2004, due in part to its 
openness to international trade and investment as  part of its successful economic development 
strategy.  Singapore's c ontinuing effort to address challenges of globalization through structural 
reforms was also key to its economic growth.  D espite being the most liberalized economy, Singapore 
had taken further steps in trade liberalization a nd made other trade-relate d improvements.  Korea 
noted the progress made in trade facilitation and a ppreciated the enhanced competitive climate in 
services and investment, and the elimination of anti-competitive practices by introducing new 
legislation.  Korea hoped that Singapore would continue  to play an active role in realizing a successful 
conclusion of the Doha Round by the end of 2008. 
42. The representative of Australia  said that Singapore was Australia's largest trading partner in 
ASEAN, and fifth-largest overall.  In 2007, Aust ralia's two-way goods and services trade with 
Singapore totalled $A 22.4 billion.  Services exports to  Singapore continued to grow, particularly in 
transportation and in other business services.  Prospe cts for increased trade flows were supported by 
the Singapore-Australia Free Trade Agreement (SAFTA).  Singapore was also one of Australia's major investment partners.  Australia noted Singapore 's liberal trade regime, with zero tariffs applied 
on all Australian goods imports.  Australia welcomed Singapore's liberalization efforts in recent years  WT/TPR/M/202 
 Page 11 
 
 
  in the financial services, energy, and telecommunication sectors, and encouraged Singapore to further 
liberalize other services sectors, including legal services and banking. 
43. Mutual recognition of professional qualifications  and registration procedures would promote 
business mobility and encourage greater competition.   In relation to engineering qualifications, 
Australia welcomed Singapore's decision to become  a full signatory to the Washington Accord in 
2006.  It also welcomed Singapore's recognition of Australian architecture qualifications.  Australia 
looked forward to working with Singapore to ensure that the benefits of these developments were 
realized in practice, through mutual recognition agreements between key pr ofessional organizations 
and streamlining registration procedures for Au stralian professionals working in Singapore. 
44. Australia valued its close working relationshi p with Singapore in a number of regional fora 
and thanked Singapore for its cons tructive role in the current ASEAN-Australia-New Zealand FTA 
negotiations.  APEC had adopted a wide-ranging wo rk programme aimed at strengthening regional 
economic integration in 2007:  Au stralia would be working with Singapore and other APEC members 
to develop this programme, and c ooperating closely with Singapore at  various regional and bilateral 
fora planned for 2008.  Australia encouraged Si ngapore to work with WTO Members to ensure the 
upcoming WTO Ministerial Meeting was productive,  with agreement on modalities for agriculture 
and industrial products.  
45. The representative of Colombia  said that the economy of Singapore was based on 
competitiveness and efficiency, the result of its c onsistent macroeconomic policy, its openness for 
international trade, and a sound policy providing incentives for foreign investment.  Singapore had 
become a major destination for FDI and an exporte r of high-value-added manufactured products and 
services.  This had allowed Singapore to develop an  efficient economy with exports as its motor of 
growth.  With good reason, betw een 1995 and 2008 Singapore had been ranked second in the Index of 
Economic Freedom.  Almost all of Singapore's trade operations were in a spirit of transparency and 
flexibility, and the private sector had grown.  Infl ation was low and foreign investment was welcome 
and treated equally.  There were no tariffs, the le gislative system was efficient and highly protective 
of private property, and corruption was almost inexistent.  The labour  market was extremely flexible 
and dismissal of workers was not costly.  For these reasons Colombia congratulated Singapore for its 
outstanding work improving the economy.  It was important to learn from Singapore's experience in 
areas like production of high-value-added goods and services.  Singapore's remaining challenge was 
to maintain its competitiveness without affecting its macroeconomic stability. 
46. At the previous Review, it had been pointed out  that Singapore's trade policy had allowed it to 
overcome the adverse effects of various economi c occurrences, like the economic slowdown, the 
financial crisis in Asia, and SARS.  While its economy largely depended on foreign markets, 
Colombia hoped that Singapore's economy would con tinue to be immune to events affecting the 
world economy, particularly the increase of food and fuel prices, the problems in the U.S. mortgage 
sector, and the devaluation of the dollar. 
47. The representative of Japan  noted Japan's appreciation for Singapore's open and competitive 
economy as well as its strategic and pragmatic econom ic management.  Singapore had taken measures 
to become a services hub in the Asian region as well as in the world, and other measures to respond to 
the challenges of globalization, notably by inves ting in R&D.  These measures had brought about a 
high growth rate, enabling Singapore to carry out tax reform, including lowering the corporate tax 
rate.  This in turn had attracted FDI to Singapore , helping it to develop as a centre for high-value-
added manufacturing and R&D.  This w as a good example of a virtuous circle.  
48. The Japan-Singapore EPA was Japan's first FTA a nd five years after its entry into force a 
2007 Protocol further increased liberalization of trade in goods and services.  Japan appreciated Singapore policies for attracting foreign direct invest ment, such as building high-quality infrastructure WT/TPR/M/202 
Page 12  
 
  and offering tax incentives.  Japanese companies were generally satisfied with the business 
environment in Singapore.  However, they had some  concerns related to th e Construction Registration 
of Tradesmen Scheme, to be introduced in Janua ry 2009 as part of the Amended Building Control 
Act.  While Japan understood its purpose, there wa s concern over the potential shortage of workers 
eligible to be registered under the scheme.  In additi on, details of the scheme were still to be clarified;  
Japan hoped that appropriate clarification and n ecessary measures would be put in place so that the 
scheme would be implemented smoothly.    
49. The representative of Chinese Taipei
 said it was commendable that Singapore had maintained 
such strong economic growth since its last Review, with GDP having increased on average by 7.9% 
annually.  Singapore was Chinese Taipei's sixth largest  trading partner in the global market.  Over the 
review period, bilateral trade had been increasing steadily, its value exceeding US$15 billion in total 
in 2007.  A number of bilateral cooperation schemes had been put in  place, covering a wide range of 
issues, including investment protection, avoida nce of double taxation, and mutual recognition of 
conformity assessment.  Singapore's remarkable econom ic performance was due mainly to its widely-
recognized open trade and investment regime, supporte d by its top-ranked global competitiveness.  It 
had made itself a model of trade and investment  liberalization among WTO Members.  However, 
Singapore might endeavour to narrow the gap between  its bound and applied rates, and to bind all 
tariff lines.  Singapore might also consider grantin g more foreign banks licences for the full range of 
services, considering that financial services accounted for a significant share of its GDP. 
50. The representative of Brunei Darussalam, on behalf of ASEAN , said that Singapore had 
maintained its status as one of the most open and competitive economies in the world in terms of 
international trade and foreign investments, and de monstrated a deep level of commitment to the 
multilateral system.  ASEAN urged Singapore to con tinue with its open door policy and structural 
reforms so as to remain a pillar of the Asian a nd world economy.  Aided by its open FDI policies, 
Singapore continued to focus on maintaining its app eal as an attractive destination for FDI, through 
measures such as corporate tax reduction, and tax incentives for industries it was trying to nurture. 
51. Services remained a dominant factor in th e Singapore economy, accounting for around 66% 
of GDP in 2007.  Despite competition from service supp liers in the region, Singapore was still a major 
supplier of services, particularly in the area of trading, seaport, and airport services, where export growth rates had risen significantly.  Manufacturi ng had recently seen a rapid growth as evidenced by 
the contribution to GDP in 2007 of 24.1%.  Singa pore continued to strengthen its IPR protection 
framework as part of its broader effort to  encourage innovation and create a knowledge-based 
economy, particularly through improved protection for patents, trade marks, copyrights, registered designs, and new plant varieties.  In 2004 and 20 05, Singapore also overhauled its copyright laws, 
strengthening many aspects.  Singapore was an ac tive member of ASEAN, APEC, and WTO and had 
shown its strong commitment in these organizations .  As a developing member, Singapore remained 
an active participant in the DDA  negotiations and continued to submit proposals and position papers 
in all areas of the negotiations.  
52. The representative of Hong Kong, China
 said that Singapore and Hong Kong, China had good 
trade relations.  Singapore was Hong Kong, China's fifth largest trading partner in 2007 and total 
bilateral trade had increased at an average annual rate of 18% since 2002, amounting to US$31 billion 
in 2007.  Hong Kong, China appreciated that Singapore, one of the most open economies in the world, 
had continued to pursue liberal trade and investme nt policies, and looked forward to continued 
cooperation with Singapore in the WTO, as well as APEC and other regional fora. 
53. With the exception of six tariff lines for alcoho lic beverages, Singapore's applied MEN tariff 
had, like that of Hong Kong, China, long been zero.  This free-trade policy had contributed 
significantly to Singapore's economic development.  Singapore had bound some 70% of its tariff lines 
at an average rate of 6.9%, which provided some r oom for it to enhance the predictability of its trade  WT/TPR/M/202 
 Page 13 
 
 
  regime, and Hong Kong, China looked forward to this being achieved though the successful 
conclusion of the Doha Development Agenda.  It appreciated Singapore's active participation in the 
NAMA Negotiating Group in seeking an ambitious a nd balanced outcome.  Singapore was also an 
active player in the Rules negotiations and shared  the same goal as Hong Kong, China in clarifying 
and improving the WTO disciplines on rules, particularly anti-dumping.  Singapore maintained only a 
few non-tariff border measures, basically aimed at ensuing security as well as protecting public health 
and the environment.  Simplified and computerized  customs procedures could bring about substantial 
benefits to both traders and government agenci es;  Singapore's customs procedures were highly 
computerized and trade-facilitating.  The TradeNet system had been improved to further simplify the 
regulatory processes for imports and exports. 
54. Hong Kong, China commended Singapore's policy of  advocating the adoption of international 
standards for greater market access and enterprise competitiveness.  As of March 2007, more than 
80% of alignable Singapore Standards had been aligned with international standards.  As to services, 
he noted Singapore's initiatives and de termination to continue its stru ctural reforms during the review 
period, particularly by further liberalizati on in the infrastructural sectors of banking and 
telecommunication services.  Singapore participated actively in the services negotiations, as evident 
from its chairmanship of the Working Party on Dome stic Regulations since June 2005.  Singapore had 
introduced full competition into its telecommunications  market in April 2000, two years earlier than 
planned, and all direct and indirect foreign equity limits on telecom services had been lifted.  Singapore attached great importance to transport and logistics, which was one of its fastest growing 
sectors.  Maritime transport services in particular contributed to some 7-8% of GDP.  Hong Kong, 
China welcomed Singapore's initiative to liberalize certain port services and activities, such as tug 
services, bunkering, and ship chandlering.  
55. The representative of Pakistan
 said that while most of the rest of the world was going through 
various crises, Singapore was a bright spot on worl d's map.  It was the most promising regional 
trading house and transshipment hub, home to vari ous multinational corporations;  a source of 
value-added technology;  a strong player in financial and insurance services;  and had great potential 
to generate enough capital for investment abroad.  Fully functional e-governance had cuts the costs of 
doing business in Singapore.  High priority on R&D, to the extent of allocating over 2.5% of its GDP, had resulted in a gradual shift from using technolog y to creating it, thereby deepening the technology 
base and strengthening knowledge-based manufacturing and services clusters. 
56. Bilateral trade remained some what stagnant at around US $600 million, but Singaporean 
re-exports took the total trade figure to nearly US$1.35 billion.  With the take-over of Pakistan's deep 
sea port at Gwadar by the Port of Singapore Aut hority (PSA) in 2007, trade expansion and growing 
investment opportunities in the Gwadar free-trade zone were expected.  A bilateral free-trade deal was 
being negotiated, focusing on trade in goods, ru les of origin, trade in services, investment, 
government procurement, and customs procedures.   While Singapore deserved appreciation for its 
zero tariff regime on most of its tariff lines, some  30.4% of lines were still not bound.  It seemed 
appropriate for Singapore to increase its bindings.   
57. The representative of New Zealand
 noted that since 2004, Singapore had clearly shown strong 
economic performance, in consider able part due to its sound macro economic policies and its openness 
to international trade and foreign investment.  New Zealand commended Singapore for its economic 
policies and reforms.  New Zealand noted Singapore' s evolving industrial policy, especially the trend 
towards GLCs operating on the same basis as private companies, developments in terms of the 
divestments by Temasek, the enhanced corporate governance regulation, and the enactment of an 
economy-wide competition law.  It applauded Singap ore's commitment to promoting a free, open, and 
stable multilateral trading system as displayed, for example, in Singapore's support and constructive 
suggestions for a positive outcome in the negotia tions for non-agricultural market access (NAMA), 
services, and rules.  WT/TPR/M/202 
Page 14  
 
  58. New Zealand acknowledged Singapore's capac ity to negotiate trade agreements 
simultaneously across a broad range of economic partners.  The first major economic agreement 
between New Zealand and Singapore, the 2001 Ag reement on a Closer Economic Partnership 
(ANZSCEP), had led to the signature of the Trans- Pacific Strategic Economic Partnership Agreement 
(TPSEP/P4) in June 2005 between New Zealand, Singapore, Brunei, and Chile.  This was the 
first multi-party trade agreement linking Asia, the Paci fic, and Latin America. The P4 was designed to 
allow participation by others in the region and, like Singapore, New Zealand welcomed the 
United States' involvement in the P4 investment and financial services negotiations.  New Zealand, 
together with Australia, was negotiating a free-trad e agreement with ASEAN, and looked forward to 
its early completion.  New Zealand also commende d Singapore for its role in the APEC context. 
59. The representative of Honduras
 agreed that Singapore's economy was one of the most open 
and competitive in the world in terms of foreign i nvestment and international trade.  Inflation had 
been low;  monetary policy has been tightened, permitting a significant appreciation in currency with 
a view to reducing food and fuel costs.  Unemploy ment had gone down and national savings exceeded 
domestic investment.  At the same time, the growth in labour and cap ital productivity and total factor 
productivity had been maintained at a steady rate, except for 2007 when there had been a slowdown.  
At the same time Singapore continued to pursue structural reform.   
60. Singapore had enacted an economy-wide compe tition law.  Institutional transparency had 
been improved and multinational companies could carry out manufacturing and product development 
in Singapore whilst coordinating purchasing, produc tion, marketing, and distribution at a regional 
level.  In trade terms, Singapor e re-exported 47% of its goods and had made efforts to improve its 
position as a world centre for trade and re-dispa tching through the TradeNet System, a single 
electronic window for customs declarations.  Singa pore supported developing countries through its 
technical assistance programme, the Singapore Cooperation Programme.   
61. The representative of Turkey  said that Singapore was one of the most competitive economies 
in the world, largely due to sound macroeconomic  policies and its openness in terms of trade and 
foreign investment regimes.  Following impressi ve growth of nearly 8% per annum since 2004, 
Singapore expected the economy to grow by 4-6% in 2008.  Only some Singaporeans had benefited 
from economic growth, and Turkey encouraged Si ngapore to continue to address the problem of 
widening income inequalities, which risked undermini ng social cohesion.  The successful conclusion 
of the DDA negotiations, in which Singapore was pa rticipating actively, as well as its network of 
bilateral and regional free-trade ag reements, promised to further increase trade and investment flows 
in the coming years.  Bilateral trade had reached almost US$700 million in 2007, and Turkey looked 
forward to increasing the level of trade and investment flows.   WT/TPR/M/202 
 Page 15 
 
 
  V. REPLIES BY THE REPRESENTATIVE OF SINGAPORE AND ADDITIONAL 
COMMENTS 
62. The representative of Singapore  thanked Members for their insightful comments and 
questions.  His delegation would provi de comprehensive responses to all the questions raised.  In his 
view, the key strategic and policy issues raised during the discussion concerned:  macroeconomic 
policies and their relation to trade and trade policies;   the restructuring of the economy in the face of 
external competition;  how Singapore had provided  meaningful safety nets for those affected 
adversely by trade and investment liberalization and external competition;  how Singapore's trade 
policies and measures were evolving;  and the role  of government-linked companies and Temasek.   
63. Questions had been raised about maintaining price stability through the exchange rate to 
minimize influence from external factors, and th e relationship between tight er monetary policy and 
productivity.  Singapore's monetary policy was to ta rget a modest and gradual appreciation of the 
Singapore dollar on a trade-weighted basis to lower overall business costs by f iltering off some of the 
effects of high foreign prices.  This gradual p ace of appreciation had allowed companies in the 
manufacturing sector to adjust to a higher nominal ex change rate.  The exchange rate's impact on 
export competitiveness had not been as large as might  be assumed, because Singapore's exports had a 
significant import content so much of that effect washed out.  The relationship between the appreciation of the real exchange  rate and productivity improvement  held true for Singapore, although 
there were short-run deviations.  The exchange rate  could not be used as a tool to boost exports for 
any extended period:  firms stay ed competitive by increasing productiv ity, creating new products, and 
actively seeking new markets, which was eventually reflected in productivit y growth.  The larger 
question was the role of macro policies and how th ey supported the process of industrial upgrading 
and particularly improving productivity.  
64. Concerning economic restructuring and the role  of incentives and other measures, although 
some generic tax incentives were useful, they were  not the most important.  What mattered was the 
whole range of market-consistent and incentive-co mpatible non-distortionary measures to support the 
general upgrading of R&D capabilities in the economy.  The Government's role had been to provide 
infrastructure, to attract foreign R&D scientists w ith talent, and to develop local talents through 
extensive scholarships and the like.  It also invol ved facilitating links between R&D carried out in the 
universities and research institutes and within industry, and promoting the application and 
commercialization of some of this R&D. 
65. The question of how to provide meaningful soci al safety nets in the context of the pressures 
of globalization, needed to be addressed in or der to maintain, build, and strengthen the domestic 
consensus in favour of trade investment liberaliza tion and globalization.  In Singapore there were no 
unemployment benefits, and limited welfare provision as traditionally understood in western 
economies.  But Singapore had a policy of promo ting widespread home ownership, which was a 
powerful tool for enhancing financial security among the mass population.  More than 90% of 
Singaporeans owned their own homes;  education was virtually free, and more recently Singapore had 
implemented a wage supplementation programme fo r workers trapped in low paid jobs and whose 
wages were being held down because of the press ures of globalization.  For those earning between 
S$500 and S$1,200 the G overnment provided a wage supplement, which it considered the least 
distortionary option among the possible help measur es.  Singapore had stepped up worker training 
programmes, and was learning (from examples in th e Nordic countries and western Europe) how to 
run these effectively to upgrade the skills of worker s so that they could take on higher-value-added 
jobs.  Singapore had also started to redistribute budget surpluses to the population through direct cash 
transfers, targeted mostly at lower income groups.  
66. Several Members had commented on the gap between applied and bound MFN rates in 
manufacturing, which was principally for negotiati on purposes;  Singapore was fully prepared to WT/TPR/M/202 
Page 16  
 
  narrow this gap as well as bind more tariff lines in  the course of the ongoing negotiations.  A similar 
question was raised with regard to the services lib eralization programme, and why this had not yet 
been reflected in the services offers.  Singapore had submitted a good revised offer in services and 
was prepared to provide more in a second revised  offer as the DDA negotiations picked up pace.  
Members had acknowledged the substantive liberalizati on in telecoms (now fully liberalized) as well 
as in the electricity and gas markets, in which all th e contestable segments had been fully liberalized.  
There were a few areas remaining – the medi a and broadcasting – where Singapore had not 
liberalized, principally for reasons of political and social stability.  Legal services were liberalized to 
some extent, and Singapore's approach was to phase- in liberalization.  Financial services, securities, 
and insurance had been fully liberalized over the l ast eight years, and there had been substantial 
liberalization in banking.  The few remaining restri ctions were in the area of retail deposit-taking 
activities of foreign banks, and this should be un derstood in the context of Singapore's financial 
sector, where many foreign banks operated as branches with no capital and no net foreign funds in the 
country.  Singapore had chosen to liberalize re tail banking more slowly, mainly as a prudential 
safeguard in order to make sure that sm all depositors' interests were protected.  
67. The key question on government-linked compani es was to what extent government ownership 
(often not majority ownership) drove corporate beha viour.  To some extent it did, but experience over 
the last ten years had shown that many GLCs now operated fully on a commercial basis.  There were 
many reasons for this, including that shareholders, ma ny of which were institutional investors, exerted 
market discipline.  Corporate governance also had a role, as many GLCs were listed on the stock 
exchange, subject to listing rules and disclosure requirements, and the market pressures that any 
commercial entity faced on a day-to-day basis;  some also issued bonds and raised capital on 
international markets and the accompanying disclos ure requirements added additional disciplines on 
their behaviour.  The major government-linked comp anies for all intents and purposes were therefore 
operating purely as commercial entities.  Temasek was an investment holding company with the 
single mandate of maximizing risk-adjusted returns;   it did not serve as an investment arm of the 
Singapore Government to promote any strategic inte rest, and did not seek the Government's approval 
in any of its investments, nor did it inform the G overnment in advance of its investment moves.  
Temasek also issued bonds, and had to answer to bondholders and to the rating agencies with regard 
to its investment policies and strategies;  that was how  it had been able to maintain its triple-A rating. 
68. On the question of whether Singapore was ready to be considered a developed country, he 
acknowledged the high per capita GNP, but said that in  other regards Singapore still had a long way to 
go.  Singapore, with no significant indigenous industrial base, was dominated by foreign 
multinationals;  nearly 50% of its GDP came from foreign MNCs.  It was highly dependent on, and 
vulnerable to, external developments and lagged be hind many of the advanced OECD countries in key 
indicators like R&D, innovation, the extent of entrepreneurship, and the like.  Singapore was a city-state and comparing per capita GNP of a city with that of larger countries could be a misleading 
exercise.  Singapore probably lived close to the di ctum that "only the paranoid survive" and was  
deeply conscious of its vulnerabilities.  It had to ma ke itself relevant to the world, not by  insulating 
itself but rather by adapting to the world and making globalization work for its citizens.   
69. Several Members had lauded Singapore for en acting a comprehensive Competition Act and 
establishing the Competition Commission of Singapore to enforce the Act.  The aim of the Competition Commission was to promote competition based on the view that greater competition 
enhanced the functioning of the market, improved efficiency, spurred innovation, and strengthened 
economic competitiveness.  The Competition Commission promoted competition through enforcement and advocacy.  Despite its infancy, the Commission had not shied away from taking 
tough action where necessary.  For example, in January  2008, it issued its first infringement decision 
against six pest control companies for infringing Section 34 of the Act, which prohibited, amongst 
other things, bid-rigging or collusive tendering.  Financial penalties totalling some S$260,000 were 
levied on the six companies.  In its equally im portant advocacy role, the Commission worked actively  WT/TPR/M/202 
 Page 17 
 
 
  with business chambers, educational instituti ons, professional and trade associations, and 
governmental agencies, to enhance awareness of business and the general public about competition 
law and the need to continually ensure that their actions were conducive to competition.  
70. The Swiss delegation had raised a question con cerning the use by Singapore businesses of the 
Swiss name and the Swiss flag.  These issues  were currently under active discussion between 
Switzerland and the Singapore Governme nt, in particular, the IP Office of Singapore.  However, he 
noted that Singapore's IP laws were fully TR IPS compliant.  Singapore had gone beyond TRIPS in 
many instances, by assuming obligations under numerous  IP treaties and FTAs.  On SPS measures, he 
appreciated the EC's question on Singapore's impl ementation of SPS measures, especially with regard 
to complying with OIE guidelines.  Singapore took its international obligations seriously and was in 
compliance with the relevant obligations in this instance.  
71. The discussant  recalled that Members had pointed out several challenges for Singapore, such 
as R&D for improving productivity and transformi ng Singapore into a knowledge-based economy, the 
prospect of higher inflation, competition fro m lower-cost economies in the region, and the 
relationship between improving productivity and moneta ry policy.  In order for Singapore to keep its 
economic development at a sustainable level continu ous improvement of productivity had to be at the 
centre of its economic policy objectives.  On the so cial safety net, he commended Singapore's specific 
measures to rectify the income gap between skille d and non-skilled workers.  Taking the ageing 
population into account, it was likely that the income gap would widen in the medium term.  Members 
clearly appreciated Singapore's trade policy objec tives but queried Singapore's situation concerning 
MFN binding rates and the gap between bound and a pplied rates as well as Singapore's commitments 
in the services sector.  He hoped meaningful progress on these issues could take place in the DDA 
negotiations.  He appreciated the improved institutional transparency brought about by the 
Competition Act and the establishment of the Co mpetition Commission and noted the investment 
policy progress regarding Temasek and GLCs.  He believed that Singapore had remained on the right 
track during the review period and had provided a good example to Members.  
72. The representative of the European Communities  requested clarification on the socio-cultural 
reasons for applying high tariffs on stout, porter, beer, and ale and not on other stronger alcoholic 
beverages.  The EC had submitted (in writing) a new question concerning government divestment 
activities during the previous four years and divestment plans in the medium and long term.   WT/TPR/M/202 
Page 18  
 
  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
73. The fifth Trade Policy Review of Singapore has given us a much clearer understanding of 
Singapore's trade policies and practices together wi th the globalization challenges it faces.  I thank 
Mr. Ravi Menon, Second Permanent Secretary of Mini stry of Trade and Industry, and his delegation 
as well as the discussant, Ambassador Shinichi Kitajima of Japan, and Members of the TPRB for 
contributing to our informativ e and constructive exchange of views during these two days.  
Singapore's response to the large number of questions is much appreciated. 
74. Members noted that Singapore continues to be one of the most open and competitive 
economies in the world.  With trade a multiple of  GDP, Singapore remains committed to promoting a 
free, rules-based multilateral trading system.  Singa pore continues to be a steadfast supporter of an 
ambitious outcome in the Doha Round;  it was co mmended for its active participation in the NAMA 
and other negotiating groups, and for its efforts to  move the negotiations forward.  Members also 
commended Singapore's contribution to the WTO Aid -for-Trade initiative.  Some Members shared 
Singapore's view that WTO-consistent trade liberali zation at regional and bila teral levels can form 
building blocks for the multilateral trading system.   
75. Members congratulated Singapore on its str ong overall economic performance.  Although its 
high degree of openness risks leaving Singapore vulnera ble to periodic external shocks, the economy's 
flexibility had enabled Singapore to adjust rela tively rapidly to these shocks by improving 
productivity, for example by investing in R&D, and thus contributing to ec onomic growth.  Singapore 
was commended for creating and maintaining a hi ghly competitive business environment in which the 
unemployment rate has decreased to its lowest le vel in a decade and inflows of foreign direct 
investment are substantial.  Some Members encour aged Singapore to address the widening of income 
inequalities. 
76. Members noted that the scope of Singapore's tariff bindings remains at around 70% of all 
lines, and that the bound rates are substantially hi gher than the MFN applied rates;  they urged 
Singapore to both increase the coverage of its bindi ngs and to lower bound rates, thus narrowing the 
discrepancy between its bound and applied rat es.  Members noted that Singapore's highly 
computerized and trade-facilitating customs procedur es result in substantial benefits to both traders 
and government agencies.  Singapor e was also commended for its po licy of advocating the adoption 
of international standards to facilitate ma rket access and enterpri se competitiveness.   
77. Members also noted the enactment of an economy-wide competition law and expressed 
interest in Singapore's assessment of the economic im pact of the new law, and of the functioning of 
the Competition Commission.  Members noted th e trend towards government linked corporations 
(GLCs) operating on the same basis as private co mpanies, significant divestments by Temasek, and 
the enhancement of corporate governance regulati on.  Some Members noted Singapore's wide-ranging 
improvements in the protection of intellectual property rights as part of its broader effort to encourage 
innovation and create a knowledge-based economy.  
78. Members also welcomed Singapore's liberalizati on efforts in financial services, energy, and 
telecommunications.  Some Members encouraged Si ngapore to further liberalize services, including 
legal and other professional services, banking, and port services.   WT/TPR/M/202 
 Page 19 
 
 
  79. To conclude, I would again like to thank Singapore' s delegation for its efforts in helping us to 
better understand its trade and trade -related policies and the domestic and international contexts in 
which they evolve.  I would once again also like to  thank the discussant for his insightful comments, 
and Members for contributing to what has been a very enlightening two days of discussions.  As the discussant stated, Singapore has established a benc hmark or a text-book case that other Members will 
have to follow.  We look forward to receiving responses to the remaining questions within the 
next month. 
__________