WORLD  TRADE  
ORGANIZATION  RESTRICTED 
WT/TPR/S/267 
5 June 2012 
 
 (12-2922) 
Trade Policy Review Body  
  
 
   
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
SINGAPORE 
 
 
  
This report, prepared for the sixth Trad e Policy Review of Singapore, has been 
drawn up by the WTO Secretariat on its own responsibility.  The Secretariat has, 
as required by the Agreement establishing the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Singapore on its trade policies and practices.  Any technical questions arising from this report may be addressed to 
Mr. Ricardo Barba (tel:  022 739 5088), Mr. Thomas Friedheim (tel: 
022 739 5083), and Ms. Katie Wate rs (tel:  022 739 5067). 
 Document WT/TPR/G/267 contains the policy statement submitted by  Singapore. 
 
 
 
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/S/267 
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  CONTENTS 
 
    Page 
SUMMARY   vii 
I.  ECONOMIC ENVIRONMENT 1  
 (1)   MAJOR FEATURES OF THE ECONOMY  1  
 (2)   RECENT ECONOMIC PERFORMANCE  1  
 (3)   TRADE PERFORMANCE AND INVESTMENT  4  
 (i)   Trade in goods and services 4  
 (ii)   Foreign direct investment 7  
 (4)   OUTLOOK  9 
II.  TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 11  
 (1)   DEVELOPMENT AND ADMINISTRATION OF TRADE POLICY  11  
 (2)   TRADE AGREEMENTS AND ARRANGEMENTS  12  
 (i)   World Trade Organization 12  
 (ii)   Regional and bilateral arrangements 12  
 (3)   FOREIGN INVESTMENT REGIME  17  
 (4)   FRAMEWORK FOR BUSINESS  19  
III.  TRADE POLICIES AND PRACTICES BY MEASURE 22  
 (1)   MEASURES DIRECTLY AFFECTING IMPORTS  22  
 (i)   Customs procedures and trade facilitation 22  
 (ii)   Customs valuation and rules of origin 24  
 (iii)   Tariffs 25  
 (iv)   Other charges affecting imports 27  
 (v)   Import prohibitions, restrictions, and licensing 28  
 (vi)   Contingency measures 29  
 (vii)  Government procurement 30  
 (viii)  State trading 34  
 (ix)   Standards, technical regulations, and conformity assessment 34  
 (x)   Sanitary and phytosanitary measures (SPS) 36  
 (2)   MEASURES DIRECTLY AFFECTING EXPORTS  39  
 (i)   Procedures 39  
 (ii)   Export taxes and other charges 40  
 (iii)   Export prohibitions, restrictions and licensing 40  
 (iv)   Export finance and insurance 40  
 (v)   Export assistance 41  
 (vi)   Free-trade zones 41  
 (3)   MEASURES AFFECTING PRODUCTION AND TRADE  42  
 (i)   Incentives 42  
 (ii)   Competition policy and price controls 44  
 (iii)   Role of state-owned enterprises and privatization 47  
 (iv)   Intellectual property rights 50  WT/TPR/S/267 Trade Policy Review 
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IV.  TRADE POLICIES BY SECTOR 55  
 (1)   MANUFACTURING  55  
 (2)   SERVICES  56  
 (i)   Overview 56  
 (ii)   Financial services 57  
 (iii)   Telecommunications and postal services 66  
 (iv)   Transport 70  
 (v)   Professional services 76 
 REFERENCES    81 
APPENDIX TABLES  83 
 Singapore WT/TPR/S/267 
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  CHARTS 
 
    P a g e  
I. ECONOMIC ENVIRONMENT   
I.1 Product composition of merchandise trade, 2007 and 2011 5 
I.2 Direction of merchandise trade, 2007 and 2011 6  
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
 II.1 Tax revenue collected in FY2011 20 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE III.1 Temasek portfolio, 2011 49 
 
TABLES 
 
I. ECONOMIC ENVIRONMENT  
 
I.1 Selected macroeconomi c indicators, 2007-11 2 
I.2 Balance of payments, 2007-11 7 
I.3 Inflows of FDI by source and sector, 2007-10 8  
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
 II.1 Singapore's participation in RTAs and FTAs. January 2012 13 
II.2 FTAs that entered into force during the review period (2008-12) 15 
II.3 Participation in investment-related agreements, April 2012 18 II.4 Double taxation treaties, April 2012 21 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
III.1 TradeXchange services 23 
III.2 Overview of TradeFIRST scheme, March 2012 24 III.3 Applied and bound MFN tariffs, 2012 25 
III.4 Summary analysis of Singapore's bound rates 26 
III.5 Excise duty rates, 2012 28 III.6 Value of the government procurement market, 2008-11 30 
III.7 Agreements coveri ng government procurement, February 2012 31 
III.8 Government procurement bidding processes, 2012 33 
III.9 Amendments to SPS requirements, 2008-11 36 
III.10 Competition statistics, 2008-10 46 III.11 Intellectual property protection, 2012 51 
III.12 IPRB raids, 2004-11 53 
 IV. TRADE POLICIES BY SECTOR 
 
IV.1 Employment, output, and value-added manufacturing by industry cluster, 2007 and 2011 56 IV.2 Structure of financial services institutions, 2007-11 58 
IV.3 Incentives offered scheme by the Monetary Authority of Singapore, 2012 60 
IV.4 Main performance indicators in banking, 2007-11 63 IV.5 Selected indicators of the insurance industry, 2007-10 65 
IV.6 Selected telecommunicati ons indicators, 2007-11 66 
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IV.7 Main features of the Maritime Sector Incentive, 2011 72 
IV.8 ASEAN air services agr eements signed since 2006 73 
IV.9 Main non-tax incentive schemes in the civil aviation sector 76 
IV.10 Specific commitments on professional services undertaken in the GATS and FTAs, 2012 76 
IV.11 Selected professional se rvices, key features, 2012 79 
 
APPENDIX TABLES 
 
I. ECONOMIC ENVIRONMENT  
 
AI.1 Merchandise exports by product group, 2007-11 85 AI.2 Merchandise imports by product group, 2007-11 87 
AI.3 Merchandise exports by destination, 2007-11 89 
AI.4 Merchandise imports by origin, 2007-11 90  
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
 
AII.1 Ministerial responsibility for trade-related issues, 2012 91 
AII.2 Notifications to the WTO, January 2008 to January 2012 92  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 AIII.1 GST relief schemes, February 2012 95 
AIII.2 Import prohibitions, 2012 96 
AIII.3 Products covered by automatic and non-automatic import licensing, February 2012 97 AIII.4 Products subject to export controls, 2012 99 
AIII.5 Tax incentives, 2012 100 
AIII.6 Grant schemes, 2012 102 AIII.7 Statutory boards, February 2012 103 
 Singapore WT/TPR/S/267 
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  SUMMARY 
 
1. Singapore remains one of the most market-ori ented and open economies in the world and is 
also considered the easiest country in which to do business.  Singapore is facing a number of new 
challenges, as well as opportunities, due to the globa l financial crisis and its competitiveness is being 
tested by low-cost economies particularly in Asia .  In response, Singapore has launched a productivity 
drive to boost GDP growth and facilitate its  transformation into a high-tech economy.  
2. Largely as a result of the global financial cr isis, in the second quarter of 2009 Singapore 
experienced its biggest output decline in 20 years.   However, a countercyclical fiscal stimulus 
(S$20.5 billion in 2009), monetary easing, str ong economic fundamentals, and labour market 
flexibility allowed a swift recovery.   
3. The economy grew at an annual average rate  of 6% in 2007-11.  Singapore experienced a 
surge in transport and wholesale trade activities, refl ecting its role as a regiona l trading and logistics 
hub.  To address the increase in income inequa lity and population ageing, the Government is 
strengthening its social safety nets (e.g. housing and healthcare).  Singapore is also moderating the 
influx of foreign workers. 
4. Singapore has felt the impact of the global recession primarily through the trade channel.  
From peak to trough, non-oil domestic exports fell by  close to 30%.  Their revival has been boosted 
particularly by consumer demand in China and co rporate IT investment in the United States.  
Singapore has the highest trade to GDP ratio in the world (around 400% on average during 2008-11) 
reflecting its position as a major transhipment hu b and the high import intensity of Singapore's 
exports.  The share of imported components in Singapore's total merchandise exports has increased 
over the last decades and is estimated at over 50%.  
5. Historically, Singapore has experienced significant net capital outflows, the counterpart of 
persistent current account surpluses (20.5% of GDP on average during 2007-11).  Official flows have 
constituted the bulk of net outflows, reflecting mo stly foreign asset accumulation by Singapore's 
sovereign wealth funds (Temasek  and the Government of Singapore Investment Corporation).  
6. Singapore is a major recipient of FDI, with  annual inflows averaging almost US$25 billion 
since 2007.  Restrictions on foreign direct invest ments are maintained in a few sectors, including 
broadcasting/news media, lega l services, and retail banking. 
7. Singapore actively encourages investment thr ough an array of tax and non-tax incentives. 
These are intended to encourage local companies to expand and internationalize production;  invest in 
R&D, and training;  and access procurement oppor tunities, amongst others.  Incentives are also 
provided to encourage companies to establish their global or regional headquarters in Singapore, to 
promote technology and knowledge transfer, as well  as to enhance Singapore's appeal as a services 
hub.  
8. State ownership in key sectors of the ec onomy (e.g. electricity, telecommunications, 
transport, and ports) remains substantial, incl uding through enterprises in which Temasek holds 
shares.  
9. The Government has set the goal of sustaining productivity growth throughout the economy 
of 2-3% per year during 2010-20 (1% was achieved in  2000-09).  This objective involves a substantial 
increase of Singapore's gross expenditures on R&D to r each 3.5% of GDP by 2015.  In order to boost 
productivity, 16 key sectors have been identified (cons truction; electronics; precision engineering;  WT/TPR/S/267 Trade Policy Review 
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  transport engineering;  general manufacturing;  retail;  food services; hotels; healthcare;  information, 
communication, media and design;  logistics and storage;  and administration and support services;  
accountancy;  financial services;  process construc tion and maintenance;  and social services). 
10. Singapore remains a staunch supporter of the multilate ral trading system.  It participates in the 
Information Technology Agreement and the Plurilat eral Agreement on Government Procurement.  
Singapore is also a signatory to the GATS protoc ols on telecommunications (Fourth Protocol) and 
financial services (Fifth Protocol).  It is not a signa tory to the Plurilateral Agreement on Trade in Civil 
Aircraft, but has observer status in the Committee.  During the period under review, Singapore has not 
been involved in any disputes at the WTO. 
11. Singapore continues to pursue trade liberaliza tion through bilateral and regional agreements.  
Since 2008, six new FTAs have entered into force, of which four are regional agreements negotiated 
within the framework of ASEAN and two are bilate ral agreements.  It has also signed bilateral 
agreements, or negotiations are under way, with an  additional 12 countries.  Altogether Singapore's 
has a network of 18 regional and b ilateral agreements covering 24 trad ing partners, mostly within the 
Asia-Pacific region.  Singapore is also participa ting in the Trans-Pacific Partnership negotiations. 
12. Together with its ASEAN partners, Singapore is continuing to work towards achieving an 
ASEAN Community by 2015.  Steps taken to reach this objective include the ASEAN Trade in Goods 
Agreement (ATIGA) in 2010, and the ASEAN Compre hensive Investment Agreement (ACIA), which 
should enter into force in 2012.  
13. Singapore has a very open trading regime, levying tariffs on only six tariff lines (stout and 
porter, beer and ale, and medicated and non-medicated samsu) subject to specifi c rates.  These tariffs 
have been eliminated for imports from FTA part ners.  However, around 30% of Singapore's tariff 
lines are unbound; with bound rates ranging from 0-10%.   
14. Singapore maintains a single window system for customs processing through which traders 
may submit import documentation and permits online.  The single window connects to all governmental agencies from which authorizations are required:  approval time is about 10 minutes in 99% of cases.  Singapore Customs has introduced ne w, or expanded existing, initiatives to further 
facilitate trade.  In addition, since 2011, importers have been able to apply for binding advance rulings 
on customs valuation.   
15. Import prohibitions are in place mainly for hea lth, safety, and environmental reasons, or to 
comply with Singapore's international (non-WTO)  obligations.  Imports remain prohibited for 
chewing gum unless for therapeutic purposes, and for u sed motor vehicles more than three years old.  
Singapore requires licences for a variety of imports, through either automatic or non-automatic procedures.  Imports of rice are managed through a strategic reserve for food-security purposes, under 
which licenced importers are require d to stockpile rice equivalent to two months of imports.  No 
specific trade concerns have been raised in the SPS or TBT Committees regarding any of Singapore's 
measures.   
16. Singapore did not take any con tingency measures over the review period:  it does not have 
safeguards legislation, it has never imposed a c ountervailing measure, and its last anti-dumping 
measures were terminated in 2003.  
17. Singapore has five free trade zones (FTZs).  There are minimal documentary requirements for 
goods entering FTZs and various schemes to provide for GST relief.  International Enterprise (IE) Singapore WT/TPR/S/267 
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  Singapore is responsible for trade promotion and provides financial support through a variety of 
programmes to assist companies to expand or deve lop new overseas operations.  Export finance is 
only available through private sector institutions.  However, the Government is involved in 
underwriting private-sector loans for overseas expansion activities and trade financing as well as trade 
credit insurance.   
18. Singapore's competition regime is largely unchanged since 2008, although enforcement 
provisions have been strengthened and enforcement activity has increased.  However, a number of 
areas are still exempt from competition rules. 
19. In the area of intellectual property rights, Singapore has amended its Patents Act 2008 to 
implement certain measures under the "Paragraph 6 System" of the Doha Declaration on the TRIPS 
Agreement and Public Health to enable  it to use the system as an importer. 
20. Government procurement procedures remain ed unchanged over the review period.  
Singapore's applied regime is very  open:  all non-classified procur ements over S$3,000 by its 89 
procuring entities (which include central government entities as well as statutory boards) are published on the Government's web portal (GeBIZ ).  GeBIZ is accessible to all suppliers, and no 
preferences or set-asides are accorded to domestic suppliers.  In the 2011 negotiations to revise the 
WTO Government Procurement Agreement (GPA),  Singapore added executive search services to its 
GPA commitments.  Singapore has procurement commitments in several of its bilateral FTAs; coverage of statutory boards (which comprise th e bulk of government procurement) tends to be 
partial, and thresholds vary.  The total valu e of non-classified procurement by the Singapore 
Government was S$27.3 billion in 2011.   
21. The manufacturing sector accounted for 21% of GDP  in 2011 (24% in 2007).  Singapore's 
industrial policy aims at maintaining a strong manu facturing base in the range of 20-25% of GDP, 
while achieving a further shift away from labour-i ntensive activities towards high-value-added, 
capital-intensive industries.  To encourage economic restructuring, the Government has fine-tuned its 
labour and land use policies and is taking steps to promote productivity growth.  
22. Services constitute the most important sector in terms of contribution to GDP (over two 
thirds) and total employment (about 70%).  Overall,  there is much diversity in Singapore's services 
commitments in its various FTAs.  In most cases,  commitments go beyond its GATS schedule/offer. 
23. Financial institutions (foreign and local) ma y obtain various incentives as long as they are 
able to meet the qualifying criteria.  Measur es are being taken to increase capital adequacy 
requirements for banks and further enhance the resilience of the banking sector.  Singapore is 
strengthening its position as a major regional asset -management centre, attracting well recognized 
firms.  
24. Increased market liberalization and compe tition, including through the recently amended 
Telecommunications Act and Telecom Competition Code , has resulted in a significant increase in the 
number of telecommunication service providers.  Over  1,000 telecom licences have been awarded, 
mainly to service-based operators.  To facilitate ma rket entry and competition, the Postal Competition 
Code and the Postal Services Operati ons Code were introduced in 2008. 
25. Singapore remains a major international maritime centre and international air hub. Faced with 
intensifying competition in the region, the G overnment has taken steps to strengthen the 
competitiveness of Singapore as a one-stop-shop for all port, shipping, and maritime activities.  WT/TPR/S/267 Trade Policy Review 
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  Measures include streamlining the preferential corpor ate tax regime for the maritime transport sector, 
and investments in port infrastructure.  In the air transport sector, Singapore has made progress in 
further opening up air services, mainly bilate rally and within the framework of ASEAN. 
26. A significant development over the review pe riod was the partial opening-up of Singapore's 
domestic legal services regime and increased flexibiliti es for foreign and local law firms to offer legal 
services jointly.  Licensed foreign law practices a nd joint-ventures between Singaporean and foreign 
law practices may now offer domestic corporat e and commercial law services either through 
Singapore lawyers or through foreign lawyers who ha ve obtained a Foreign Practitioner Certificate. 
Other areas of domestic law remain the exclusive preserve of Singaporean law practices and Singapore lawyers.