WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/TPR/G/267 
5 June 2012 
 
 (12-2930) 
Trade Policy Review Body Original:  English  
  
 
   
 
TRADE POLICY REVIEW 
 
Report by 
 
SINGAPORE 
 
   
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Singapore is attached. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Singapore. Singapore WT/TPR/G/267 
 Page 3 
 
 
  CONTENTS 
 
    Page 
I.  INTRODUCTION 5 
II.  RESPONDING TO THE GLOBAL FINANCIAL CRISIS 5  
III.  PURSUING SOUND MACROECONOMIC POLICIES 6  
IV.  MAINTAINING AN OPEN TRADE POLICY 6  
  (1)   SUPPORT FOR THE MULTILATERAL TRADING SYSTEM  6  
  (2)   REGIONAL AND BILATERAL TRADE COOPERATION  7  
  (3)   IMPROVING SINGAPORE 'S TRADE AND BUSINESS ENVIRONMENT  8  
V.  TACKLING CHALLENGES AHEAD 10  
VI.  CONCLUSION  11 Singapore WT/TPR/G/267 
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  I. INTRODUCTION 
1. This is the sixth Trade Policy Review of Si ngapore by the World Trade Organization (WTO). 
Singapore's period under review (2008-2011) was marked by an unprecedented global economic 
crisis.  Amidst an increasingly challenging post-c risis landscape, Singapore is committed to keeping 
our markets open and promoting fair and active co mpetition.  To ensure that growth is both 
sustainable and inclusive, Singapore will unde rtake long-term economic reforms to increase 
productivity and innovation and strengthen our social infrastructure. 
2. Maintaining strong global trade flows is critical to the continued growth and prosperity for all 
economies, both developed and developing.  Singapore recognizes the primacy of the WTO in 
promoting trade liberalization and as a bulwark agai nst protectionism through a fair, transparent and 
rules-based multilateral trading system.  Our regiona l and bilateral trade strategies are designed to 
complement these multilateral efforts.  
II. RESPONDING TO THE GLOBAL FINANCIAL CRISIS 
3. Singapore, as a small and open economy, was not spared the effects of the global economic 
crisis.  The Singapore economy contracted by 1.0% in 2009, following weak growth of 1.7% in 2008.  
In particular, activities in externally-oriented sectors such as manufacturing and wholesale trade 
declined sharply in late 2008 and early 2009 as gl obal demand weakened and trade flows slumped.  
The financial services sector also contracted, as sentiment-sensitive ac tivities such as foreign 
exchange trading and fund management eased.  Amid st increased uncertainties and heightened risk 
aversion, investment commitments in Singapore's manufacturing and services sectors fell for the first 
time in four years, from S$18.0 billion in 2008 to S$11.8 billion in 2009.  
4. Our decisive fiscal action and prudent macroe conomic policies led the Singapore economy to 
an exceptionally strong rebound.  The Singapore Government responded with a S$20.5 billion 
Resilience Package in 2009.  The Government drew on Past Reserves1 for the first time to fund two 
exceptional measures: the Jobs Credit Scheme provi ded companies with cash grants to incentivise 
them to retain their workers; and the Special Ri sk-Sharing Initiative helped viable companies gain 
access to credit.  Direct assistance was provide d to households through Goods and Services Tax 
(GST) credits and personal income tax rebates.  
5. The Resilience Package helped to maintain  business confidence and reduce job losses in 
Singapore during this critical time.  By the first quarter of 2010, the Singapore economy had recovered lost output from the crisis.  An upturn in the global electronics cycle and a surge in 
pharmaceutical output supported an annual growth of 14.8% in 2010.  Growth continued at a more 
moderate pace of 4.9% in 2011, supported by m odest gains in the manufacturing, finance and 
insurance and tourism-related sectors.  Over  2010 and 2011, investment commitments in the 
manufacturing and services sectors grew by an average of 8.1% per annum to S$13.7 billion in 2011.  
6. Labour market conditions improved in tande m with the economic recovery. Resident 
unemployment reached 5.0% in the third quarter of  2009, but fell back to 3.0% by end 2009.  An 
average of around 119,000 jobs was created per year in 2010 and 2011, up from the 38,000 jobs created in 2009.  As a result of the robust empl oyment growth, overall unemployment rate fell to a 
14-year low of 2.0% in 2011. 
                                                      
1 Past Reserves refers to reserves accumula ted during previous terms of Government. WT/TPR/G/267 Trade Policy Review 
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  III. PURSUING SOUND MACROECONOMIC POLICIES 
7. Singapore's trade policy is underpinned by s ound fiscal and monetary regimes aimed at 
maintaining a conducive environment for long-term investment in the country.  
8. Singapore's fiscal policy is geared towards promoting long-term economic growth, by 
facilitating the smooth functioning of markets, and do es not supplant the private sector as an engine of 
growth.  Our consistently prudent fiscal policy has helped to bolster investor confidence in Singapore 
amid difficult economic conditions.  The Government has not had to borrow to finance expenditure or 
fund past deficits.  Since 1995, Singapore has main tained the highest possible sovereign credit rating 
of "AAA", which remains a source of competitiv eness for companies b ased in Singapore. 
9. Our monetary policy keeps inflation low and ma intains price stability over the medium term.  
Singapore has adopted the policy of a modest and gradual appreciation of the Singapore Dollar since 
April 2010 while at the same time making sure that  the Singapore Dollar's currency value is aligned 
with underlying fundamentals.  This policy will mode rate domestic inflationary pressures amid the 
escalation in global oil, food, and other commodity pr ices.  In addition, it will provide the necessary 
macro constraint and hence reduce the pressure on domestic costs.  Our monetary policy is 
accompanied by macro-prudential measures targeted at specific asset markets. Singapore moved to 
check rising home prices over the review period through a greater supply of private and public housing and the introduction of new measures to modera te investment demand for private residential 
property.  This is in order to promote a sustai nable housing market where prices move in line with 
economic fundamentals. 
IV. MAINTAINING AN OPEN TRADE POLICY 
10. Notwithstanding the crisis, Singapore's trade polic y direction remains consistent – to keep 
markets open.  While fiscal stimulus measures drove our rebound from the crisis, these are not a long-term panacea.  Sustaining long-term growth requir es Singapore to stay plugged into global markets, 
and our companies and industries to remain globally competitive. 
11. Trade is critical to the Singapore economy.  Ex ternal demand supports an estimated 60% of 
our gross domestic product (GDP) in value-added terms and 50% of employment.  Between 2009 and 
2010, Singapore's total goods and services trade rose by 19% to reach S$1,173 billion– more than 
three times the size of our 2010 GDP of S$310 billion.  As a major international trading hub, the unhindered flow of goods and services in and out of Singapore is important not only to the smooth 
functioning of the Singapore economy, but also to  a much wider regional and global network of 
businesses and economies beyond our borders.  
12. Singapore's trade policy goals are threefold.  First, we aim to expand the international 
economic space for Singapore-based companies.  S econd, we seek a predictable and fair trading 
environment for Singapore-based companies by supporting a rules-based multilateral trading system. Third, we strive to minimize impediments to the flow of imports by continuously improving 
Singapore's trade and business environment.  Singa pore achieves these goals by engaging our trade 
partners at the multilateral, regiona l and bilateral levels, while working domestically to improve the 
flow of goods, services and investments into Singapore. 
(1) S
UPPORT FOR THE MULTILATERAL TRADING SYSTEM  
13. Singapore's foremost trade priority remains the multilateral trade system.  The WTO's role is 
critical, both as a guardian against protectionism, and as a catalyst to promote growth and Singapore WT/TPR/G/267 
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  development.  We have benefitted from the stability of the multilateral trading regime provided by the 
WTO, which has brought greater predictability and se curity to the trade relations among nations.  We 
remain a firm believer in the WTO as the best platfo rm to ensure continued growth for all economies, 
and see a strong, rules-based global trading system  as paramount to Singapore's continued economic 
health.  In an uncertain global economic environmen t, it is all the more critical that we uphold the 
WTO's role in monitoring, notifications and dispute settlement.  
14. Singapore is a constructive Member at the WTO.  We have played an ac tive role in promoting 
trade liberalisation and are fully committed to th e Doha Development Age nda negotiations. As a 
Member of the WTO's Agreement on Government Procurement (GPA), Singapore agreed in 2011 to 
improved disciplines under the GPA as part of a landmark deal to update the 1994 agreement. To 
support the WTO's regular work, Singapore has chaired committees and negotiating groups in Geneva, and tabled papers and proposals to a dvance discussions on issues such as environmental 
goods and non-tariff barriers.  We will continue to participate actively in all negotiating and non-
negotiating work within the various regular WTO bodies and committees, including in the Non 
Agricultural Market Access (NAMA), Trad e Facilitation and Services negotiations.  
15. Singapore helps developing countries participat e in the global trading system through our 
trade-related technical assistan ce programmes.  Between 2007 and 2010,  the National University of 
Singapore (NUS) collaborated with the WTO in hos ting four rounds of the Regional Trade Policy 
Course to help empower senior government official s from the Asia-Pacific region to contribute to 
trade policy formulation.  The NUS Law Faculty was awarded the WTO Chair under the WTO Chairs 
Programme in 2011 to support the WTO in promoti ng capacity building, research and outreach.  Since 
2009, the Temasek Foundation Centre for Trade and Negotiations has organised annual workshops in 
Singapore as part of WTO's outreach programme for parliamentarians, government officials and civil society members from Asia-Pacific Economies.  Si ngapore also works with other WTO Members in 
our Aid-for-Trade Programmes, and provides joint training programmes in collaboration with WIPO, 
World Bank, IMF, ADB and UNCTAD.  
(2) R
EGIONAL AND BILATERAL TRADE COOPERATION  
16. Our regional and bilateral trade strategies comple ment our efforts at the multilateral level.  
Our bilateral agreements are designed as building bl ocks towards broader regional integration, which 
will in turn strengthen the global c onsensus for free and open trade.  
17. At the Asia-Pacific Economic Cooperation (A PEC), Singapore is a strong advocate for 
regional economic integration initiatives.  Sin ce 2008, APEC has capitalized on its strengths in 
capacity building and public-private sector engageme nt to facilitate trade and investment, through 
initiatives that have sought to improve supply chain connectivity and the ease of doing business in the 
region.  APEC continues to seek opportunities to support the WTO, such as through APEC's trade 
monitoring mechanism, which was instituted in  collaboration with the WTO during Singapore's 
APEC chairmanship in 2009.  Singapore is curre ntly engaged in Trans-Pacific Partnership (TPP) 
negotiations with APEC members Australia, Brunei,  Chile, Malaysia, New Zealand, Peru, the United 
States and Viet Nam.  These countries collectively represent about 26% of global GDP and 17% of world trade.  We envision the TPP to be a pathwa y towards a Free Trade Area of the Asia Pacific 
(FTAAP).  
18. Within the Association of Southeast Asian Nations (ASEAN), Singapore is an active 
participant in regional integration initiatives that contribute to a free, fair  and rules-based trading 
system.  Singapore works with other ASEAN memb ers to implement regional commitments under the WT/TPR/G/267 Trade Policy Review 
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  ASEAN Economic Community (AEC) Blueprint.  The AEC aims to achieve a single market and 
production base, with free flow of goods, services and investments by 2015.  There has been 
considerable progress in ASEAN in implementing the AEC Blueprint.  As part of these commitments, 
Singapore has eliminated tariffs on all products si nce 2010.  For services and investment, Singapore 
completed its 8th package of liberalization measures unde r the ASEAN Framework Agreement on 
Services (AFAS) and signed the ASEAN Comprehens ive Investment Agreement (ACIA) in 2011 and 
2009 respectively. 
19. Singapore firmly supports ASEAN initiatives to  deepen economic relations with regional 
partners.  A key highlight in the period under review was  the conclusion and signing of the ASEAN-
Australia-New Zealand FTA in 2009.  Since conclu ding individual FTAs with its dialogue partners, 
ASEAN has embarked on the project of building a wider regional trade agreement under the ASEAN 
Framework on Regional Comprehensive Economic Pa rtnership, which could become another track 
towards a FTAAP.  Singapore is a strong supporter of  this process and has taken on the chairmanship 
of the Working Group on Trade in Goods.  
20. Singapore has a network of 18 regional and bila teral free trade agreements (FTAs) with 24 
trading partners.  We are currently negotiati ng a bilateral FTA with the European Union. 
21. We are expanding our network of investment  guarantee agreements (IGAs).  Our IGAs 
enhance our attractiveness as an investment destina tion and ensure greater protection for our investors 
and their investments overseas.  Over the review period, five new IGAs, with Democratic People's Republic of Korea, Libya, Mexico, Oman, and Turk ey entered into force.  Singapore also signed 
IGAs with Kuwait, Russia, and UAE during this period.  
(3) I
MPROVING SINGAPORE 'S TRADE AND BUSINESS ENVIRONMENT  
22. Singapore remains one of the world's freest economies.  Singapore maintains virtually no 
import tariffs, no export subsidies,  no exchange restrictions, and no price ceilings.  The World 
Economic Forum's Global Enabling Trade Report 2012  ranked Singapore first for having the most 
open economy for international trade and investment .  Singapore has also topped the World Bank's 
Doing Business  rankings for the past six years.  Singapore regularly reviews its regulations and 
actively seeks private sector feedback to facilita te business and create an environment that is 
conducive to economic enterprise.  
23. A dynamic and pro-competition environment keeps Singapore businesses competitive in a 
global market.  During the period under review, we  followed up with enforcement action to ensure 
that our competition and intellectual property framewo rks translate into real benefits for businesses 
and investors.  To support a conducive environmen t for business activities, the Singapore Government 
regularly engages businesses and other stakeholders through various consultation platforms, and takes 
into consideration a wide range of views as we review and improve our le gislative and regulatory 
policies. 
A liberal and facilitative trade regime 
 
24. We continue to improve our already liberal and facilitative trade regime.  As a global trade 
hub and an open economy, Singapore maintains a trad ing system that is open and business friendly, 
and yet trusted and secure.  Singapore facilitates tr ade through active engagement with businesses, 
robust regulations and effective enforcement.  Singapore WT/TPR/G/267 
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  25. We take a risk-based approach to facilitate leg itimate trade, working cl osely with key partner 
agencies to maintain a robust appr oach towards trade to facilitate  movement of legitimate cargo. 
Singapore designs our customs regulations in line w ith business trends and needs, while maintaining 
the consistency of our regulatory principles.  In  2011, we launched TradeFIR ST (Trade Facilitation & 
Integrated Risk-based System), a one-stop risk ma nagement framework to make trade easy, fair and 
secure.  TradeFIRST enables Singapore Customs to assess a company holistically, based on a single 
set of assessment criteria applied acr oss all trade facilitation schemes.  
Promoting fair and active competition 
 26. Singapore has taken steps to ensure the effectiv e enforcement of our Competition legislation, 
which was enacted in 2004.  Since its establis hment in 2005, the Competition Commission of 
Singapore (CCS) has looked into over 140 competition cases and issued six infringement decisions, with fines amounting to over S$3 million.  The in fringement decisions include bid rigging cases, price 
fixing cases and CCS' first abuse of dominance case.  CCS handled its first appeal case in 2010 (with regard to price fixing for express bus services) and liability was upheld by the Competition Appeal 
Board.  CCS pro-actively conducts market studies  on sectors which are deemed important to the 
Singapore economy.  Eight such studies have been completed so far.  
27. Sectoral regulators have also been activel y reviewing our policy framework to promote 
competition in sectors under their purview.  The In focomm Development Authority (IDA) completed 
the second triennial review of the Telecom Comp etition Code (TCC) in 2010, and introduced new 
provisions that will strengthen competition within  the sector, as well as enhance transparency and 
consumer choice.  To support the liberalization of the electricity industry, the Energy Market 
Authority (EMA) restructured Singapore's gas industry and put in place a new competitive market framework in September 2008
2.  The new framework separates th e gas transport business from the 
competitive business of gas import and retail, and a set of rules called the Gas Network Code now 
governs the activities of gas transportation, to provide open and non-discriminatory access to onshore 
gas pipelines.  
28. Singapore's open and competitive approach has enab led foreign investors to participate in our 
economic development.  Electricity generation in Singapore is fully liberalized with over 90% owned 
and operated by foreign companies.  In 2008 and 2009, Singapore-owned power generation assets 
were sold in three consecutive in ternational bids, which were open to Singapo re and international 
bidders.  China's Huaneng Group won the first bid for Tuas Power, a Japanese-French consortium led 
by Japan's Marubeni Group won the bid for Se noko Power, and YTL Power International from 
Malaysia bought PowerSeraya.  Each of these pow er generation companies is  responsible for about 
30% of Singapore's electricity generation.  
29. In the tourism sector, Singapore's first two integrated resorts, Resorts World Sentosa and 
Marina Bay Sands, began gaming operations in 2010.  These were earlier awarded to Genting 
International PLC and Las Vegas Sands Corporat ion respectively after an open and competitive 
bidding process, which saw 19 submissions fro m Singapore and foreign companies in the 
Request-for-Concept exercise and 7 bids for th e subsequent Request-for-Proposal exercise. 
                                                      
2 About 80% of Singapore's electricity is generated from natural gas. WT/TPR/G/267 Trade Policy Review 
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  Maintaining a robust IPR regime 
 
30. Singapore has continued to maintain a robust in tellectual property rights (IPR) regime, which 
gives companies the confidence to invest in and crea te intellectual property in Singapore.  Since 2008, 
Singapore's IPR regime has been consistently ranked amongst the best in the world and top in Asia by 
the World Economic Forum and the IMD.  Patent and trademark filings by Singapore-based entities, 
one of the indicators for innovation, have increased by 30% and 7% respectively since 2008.  Singapore has also signed the Anti-Counterfeiting Tr ade Agreement (ACTA), which promotes greater 
international co-operation in IPR enforcement and adopts higher standards for such protection.   
V. TACKLING CHALLENGES AHEAD 
31. Singapore will have to respond to a challenging external environment in 2012 .  Compared to 
2011's growth of 4.9%, the Singapore economy is expect ed to grow at a more measured pace of 1.0-
3.0% in 2012.  
32. We will raise productivity to achieve sustaina ble and inclusive economic growth.  In an 
increasingly challenging global market, improving productivity is the only sustainable way for 
Singapore to stay competitive.  Over the next decad e, we will raise our productivity at the economy, 
sector, firm and worker levels.  The Government  has set up a S$2 billion National Productivity Fund 
to promote the adoption of technology by industry and support our workforce in upgrading their skills. 
33. Gains in labour productivity will support Si ngapore's economic growth, even as our local 
workforce grows more slowly.  We are developing  a continuing education and training (CET) system 
that is dynamic and relevant to industry demands.  This will enable our workforce to perform high-
value jobs, increase their productivity, and keep  them employed in an uncertain economic 
environment.  Retraining our workforce to increase  their adaptability in a quick-moving global market 
will ensure that the gains from trad e can be translated into opportunities for all segments of society. 
We have made significant improvements to our C ET system.  We partner leading companies in 
various industries to raise the quality and relevan ce of CET training and expand CET content. Our 
national credentialing system comprises 30 sectoral frameworks, with more than 14,000 accredited courses, and has trained more than 700,000 workers since it was launched in 2005.  The Government 
is building two new national CET campuses, which w ill have the capacity to train up to 50,000 
individuals annually when ready in 2013.  
34. To boost research, innovation and enterprise, the Singapore government will invest 
S$16.1 billion over 2011-2015 as part of its Resear ch, Innovation and Enterprise (RIE) 2015 plan.  
This is a 20% increase over the previous five y ears, and will support Singapore's long-term vision to 
be a knowledge-based economy.  R&D will continue  to sustain the competitiveness of established 
sectors such as electronics, seed new growth sector s such as biomedical sciences, contribute to 
enterprise competitiveness, as well as create high quality jobs.  Past investments in R&D have already 
paid off – sales revenue from products of R&D c onducted in Singapore increased from S$6.4 billion 
in 1996 to S$10.9 billion in 2010.  
35. To enhance land productivity, Sing apore is addressing industry players' future land needs with 
several pioneering projects.  New projects that ha ve taken shape over the review period include the 
Jurong Rock Caverns, which look to subterranean depths to optimise land use;  Tukang Innovation 
Park, which promotes innovation activities;  and CleanTech Park, an eco-business park which serves 
as a living lab for the development of green technologies and sustainable urban solutions. Singapore WT/TPR/G/267 
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  VI. CONCLUSION 
36. As Singapore enters its 17th year of Membership in the WTO, we remain firm in our 
commitment to maintaining an open and compe titive economy as the key to sustaining longer-term 
growth.  Singapore recognizes the importance of ad apting to the competitive global environment and 
will continue to pursue policies to create a gl obalized, entrepreneurial and diversified economy. 
Singapore staunchly supports an open, fair and rul es-based trading system to achieve sustainable and 
inclusive growth at home and abroad.  We will c ontinue to participate actively in the work of 
the WTO, while pursuing regional trade agreements  as catalysts for multilateral liberalization. 
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