WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 18 
 
 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
(1) INTRODUCTION  
1. Since the previous Review of Singapore, the Government has continued to pursue an 
outward-looking economic policy that encourages tw o-way flows of trade and investment, using a 
multi-level trade policy:  multilatera l, regional, and bilateral.  Wh ile remaining a strong supporter of 
the multilateral trading system, Singapore also consid ers that access opening in regional and bilateral 
fora may accelerate the momentum for trade libera lization and, in turn, strengthen the multilateral 
trading system.  Singapore has participated actively in the multilateral trading system and provides MFN treatment to all Members of the WTO.  It is  also an active party in the three regional trade 
groupings of ASEAN, ASEM, and APEC, and has con tinued to negotiate bilateral FTAs;  since 2004 
it has concluded five and is in the process of negotiating a further six.
1   
2. A notable institutional change made to Singapore's policy-making structure during the review 
period was the establishment in 2005 of the Comp etition Commission of Singapore.  Institutional 
transparency has been improved in at least two wa ys:  since 2004, the consolidated group financial 
statements of Temasek Holdings, which owns and manages the Government's direct investments both 
locally and overseas, are published annually in the Temasek Review , which is accessible on the 
company's website (the financial accounts of the Government of Singapore Investment Corporation 
(GIC), however, are not published);  and improvement s in e-government mean that increasingly draft 
legislation or guidelines are issued for public consul tation, usually through the website of ministries 
and statutory boards.  
3. Reflecting the important contribution of foreign direct investment to the development of the 
economy, there are few restrictions on inward foreig n investment, and the restrictions that exist are 
mainly in broadcasting, the domestic news medi a, retail banking, legal and other professional 
services, property ownership, as well as in some sectors in which government-linked companies 
(GLCs) have a significant presence.  Aside from these areas, foreign investors operate with a 
minimum of restrictions and are subject to the same rules as local firms.  Singapore's interest in 
becoming a major regional trading centre for multinational businesses and the main business hub in 
Asia promotes efficient and transparent hand ling of foreign investment applications.   
(2) GENERAL CONSTITUTIONAL AND LEGAL FRAMEWORK  
4. Under the Constitution, as ame nded in 1965, Singapore is a republic with a parliamentary 
system of government.  Singapore's unicameral Parliament is headed by the President, who is elected 
for a fixed term of six years and may only be remo ved by Parliament on prescribed grounds, such as 
treason, misconduct or corruption involving abuse of th e powers of his office.  Political authority rests 
with the Prime Minister and the Cabinet, whose members must also be Members of Parliament.  The Prime Minister, the leader of the political part y having the majority of seats in Parliament, is 
appointed by the President, as are all the me mbers of the Cabinet upon advice from the Prime 
Minister. 
                                                     
 
1 Since 2004, FTAs with India;  Jordan;  Korea;  Panama;  and Br unei, Chile, and New Zealand in the 
Trans-Pacific Strategic Economic Partnership (SEP) Agreemen t have entered into force;  the negotiations for the 
Singapore-Peru FTA have been concluded and are expected to be signed in 2008.  Singapore is currently in 
negotiations with Canada;  China;  Mexico;  the Gulf Cooperation Council;  Pakistan;  and Ukraine.  Under the 
ASEAN umbrella, negotiations are under way with Australia and New Zealand, India, and Japan.  Additionally, the ASEAN-Korea FTA is expected to be signed in 2008. Singapore WT/TPR/S/202/Rev.1 
 Page 19 
 
 
5. The parliamentary term lasts a maximum of five  years.  In addition to the elected members2, 
up to three Non-Constituency Members of Parlia ment (NCMPs) from the opposition political parties 
and up to nine Nominated Members of Parliament (NMPs) can be appointed by the President.  The 
current Parliament was elected in 2006 and has 84 elected Members, 1 NCMP and 9 Nominated MPs, 
who represent various professional and business secto rs;  there are three opposition members in the 
current parliament.  
6. The Cabinet is in charge of government polic ies and the day-to-day administration of the 
affairs of State.3  Singapore's national budget is proposed a nnually by the Cabinet for enactment into 
law by Parliament (known as a Supply law).  The Government's national e xpenditure and revenue 
estimates  are presented annually to Parliament for scrutin y and debate.  Members of Parliament can 
propose changes and these proposals are voted upon.  Once passed by Parliament, the figures in the 
Estimates of Expenditure  automatically form the Supply Bill, wh ich is then passed.  The Bill has to 
receive the President's assent in order to become law.  The President has the discretionary power to 
veto the Supply Bill if he is of the view that it is likely to draw on the reserves of the Government 
accumulated in its previous term of office.4 
7. Judicial power is vested in the Supreme Cour t and in the subordinate courts.  The Supreme 
Court consists of the High Court and the Court of  Appeal.  The High Court has unlimited original 
jurisdiction in criminal and civil cases.  In its appe llate jurisdiction it hears criminal and civil appeals 
from the district courts and magistrates' courts.  The Court of Appeal hears appeals against the 
decisions of the High Court in both criminal and civ il matters and is the final appellate court in the 
Singapore legal system.  The subordinate courts cons ist of district courts and magistrates' courts.5  In 
addition, there are specialized courts, such as the Coroner's Court, Family Court, Juvenile Court, 
Mentions Court, and sentencing c ourts.  WTO provisions may not be  invoked before a national court 
of law but can be enforced through enabling legisl ation or, if applicable, as part of common law. 
(3) DEVELOPMENT AND ADMINISTRATION OF TRADE POLICY  
(i) Agencies involved in trade policy implementation  
8. The main responsibility for trade policy form ulation and implementation in Singapore 
continues to be with the Ministry of Trade and Industry (MTI).  The Trade Division deals with Singapore's external ties, organized around directorates focusing on WTO issues and international trade negotiations, Singapore's participation in ASEAN and APEC, a nd bilateral relations. 
9. Apart from the establishment of the Competition Commission of Singapore (CCS) in 2005, 
there do not appear to have been any significan t changes to the trade and trade-related policy 
framework since 2004.  MTI oversees ten statutory boards, which are semi-independent agencies that 
carry out specific plans and policies of the Minist ry.  The focus of International Enterprise (IE) 
                                                     
 
2 The ruling political party, the People's Action Part y (PAP), has been re-elected continuously since 
1959 and has won 11 general elections in succession, the last in May 2006.   
3 Cabinet approval on treaty participation, including  any international agreements must generally be 
obtained before a treaty is signed or  the relevant instrument of ratif ication or accession is deposited. 
4 The President does so relying on the Principles for Determining and Safeguarding the Accumulated 
Reserves of the Government, which is an agreement betw een the President and the Government in the form of a 
public document presented to Parliament. 
5 District courts and magistrates' courts have original  criminal and civil jurisdiction.  District courts try 
offences for which the maximum penalty does not exceed te n years of imprisonment and in civil cases where the 
amount claimed does not exceed S$250,000.  Magistrates' courts try offences for which the maximum term of 
imprisonment does not exceed three years;   their jurisdiction in civil cases is limited to claims not exceeding 
S$60,000. WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 20 
 
 
Singapore (formerly the Singapore Trade Development Board) is to promote overseas growth of 
Singapore-based companies and international trade,  partly by using Singapore's FTAs to capture 
business opportunities in develope d and emerging economies.  The functions of the Economic 
Development Board (EDB) remain unchanged:  it is  responsible for attracting inward investments, 
including from new source counties like China and I ndia;  planning and impl ementation of industrial 
development;  and developing  services promotion strategies.  SPRING Singapore (Standards, 
Productivity and Innovation Board) , responsible for improving enterprise competitiveness and the 
formulation and implementation of standards, as well as improving the conformance framework, 
continues to work with compani es to build core capabilities such as design and branding as well as to 
enhance market access.  The CCS aims to promot e competitive markets and create a level playing 
field for businesses.  
10. According to the authorities, R&D efforts are being intensified to build Singapore into a 
knowledge hub.  Through the five-year Science & Technology Plan 2010 Singapore is emphasizing 
cross-disciplinary research platforms to foster collaboration and innovation and develop new growth 
sectors like interactive digital media, clean en ergy, water, and environment technologies.  
11. With regard to developing Singapore into a top tourism and MICE (meeting, incentive, 
convention, and exhibition) destination, the Si ngapore Tourism Board (STB ) is launching various 
tourism projects and the Sentosa Development Cor poration continues to develop Sentosa into a 
premier island resort.  Regarding the policy-maki ng structure for agriculture and SPS, the Agri-Food 
and Veterinary Authority (AVA) was established in  2000 to ensure a dependable supply of safe food, 
to safeguard the health of animals and plants and to facilitate agri-trade, building on the work 
previously performed by the Primary Productio n Department in the Ministry of National 
Development (Table II.1).  
Table II.1 
Ministerial responsibility for trade-related issues, 2007 
Ministry/statutory agency Competence 
Ministry of National Development  
Agri-Food and Veterinary Authority Agriculture and fishing, sanita ry and phytosanitary standards 
Urban Redevelopment Authority Land use and planning, planning and control development projects 
Ministry of Trade and Industry Trade policy;  anti-dumping, count ervailing, and safeguard measures 
International Enterprise Singapore Trade promotion 
Economic Development Board Investment promotion 
Standards, Productivity and Innovation Board (SPRING 
Singapore) Standards and conformance, enterprise development 
Singapore Tourism Board Tourism 
Sentosa Development Corporation Leisure & resort  masterplanning, development and management 
Hotel Licensing Board Hotel licensing 
Agency for Science, Technology and Res earch (A*STAR) Science and technology 
Competition Commission of Singapore (CCS) Competition law 
Energy Market Authority Energy 
JTC Corporation  Infrastructure 
Ministry of Finance  
Singapore Customs  Customs tariff;  valuation;  rules of origin;  tr ade facilitation;  trade 
enforcement 
Prime Minister's Office   
Monetary Authority of Singapore Insurance;  banking;  securities and futures industry 
Ministry of Law  
Intellectual Property Office of Si ngapore Intellectual property rights 
Table II.1 (cont'd) Singapore WT/TPR/S/202/Rev.1 
 Page 21 
 
 
Ministry/statutory agency Competence 
Ministry of Information, Communications and the Arts  
Media Development Authority of Singapore  Media (broadcasting, film, publishing) 
Info-Comm Development Authority of Singapore Telecomm unications, electronic commerce, information technology, 
postal sector  
Ministry of Transport  
Land Transport Authority Land transport 
Maritime and Port Authority of Singapore Shipping and ports 
Civil Aviation Authority of Singapore Air transport 
Source:  Government of Singapore.  
(ii) Transparency 
12. The Government of Singapore indirectly owns interests in various enterprises, both locally 
and abroad, many of which are held by its inv estment holding company, Temasek.  Temasek-linked 
companies (TLCs) are managed by their respec tive management, under the guidance of their 
respective Boards of Directors.  While listed TLCs are subject to the rules of disclosure imposed by 
the Singapore Exchange, Temasek itself is not liste d and, as an exempt private company, is not 
required to publish or disclose its financial acco unts.  Since 2004, however, there has been a 
significant move towards transparency:  Temasek bega n to publish basic financial data when it sought 
to obtain an international credit rating to raise funds ;  the data has been confined to consolidated 
accounts that omit flows between subsidiary investment s, and historical financial data prior to 2001 
(Table II.2). 
Table II.2 
Profile of Temasek and GIC, 2007 
 Temasek Holdings Government  of Singapore Investment 
Corporation (GIC) 
Launch year 1974 1981.  The company comprises three operating 
subsidiaries:  GIC Asset Management, investing in equities, fixed income, money market instruments 
and other investments in the public markets;  GIC 
Real Estate, investing in real estate-related assets;  and GIC Special Investment s, investing in venture 
capital and private equity funds, as well as direct 
investments in private companies 
Fund value (US$) 108 billion (March 2007)a 100-330 billion (2007)b 
Standard Charted Bank analysis 215 billion 
Fund value as % of GDP 85% 169% 
Growth rate The value of Temasek's portfolio grew 35% over 
the year ending 31 March 2007.  Total shareholder 
return for the year was 27%c GIC's annual return has averaged 9.5% in 
U.S. dollar terms to March 2006, since its launch in 
1981.  In real terms, the annual rate of return 
averaged 5.3% 
Financing Fiscal reserves and reinvested profits Fina nced by reserves from high savings rate 
Objective Active shareholder and investor.  Aims to create 
and maximize sustainable value for owner To preserve and enhance the international 
purchasing power of Singapore's reserves, 
achieving a real rate of return above the G3 inflation rate by a specified amount over a specified 
long-term horizon.  For medium-term performance 
monitoring, to outperform an appropriate composite of recognized market indices, through 
optimal allocation among a nd within asset classes 
Ownership An "exempt private company" with Ministry of 
Finance as shareholder Private company wholly owned by the Government 
Table II.2 (cont'd)  WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 22 
 
 
 Temasek Holdings Government  of Singapore Investment 
Corporation (GIC) 
Investment policy and 
asset allocation Operates under commercial principles to maximize 
long-term returns.  Tema sek's geographical asset 
mix in March 2007 was:  Singapore (38%);  rest of 
Asia (excluding Japan) 40%;  OECD economies 
(excluding South Korea):  20%;  others 2% Invests in over 40 markets, with a long-term focus 
through systematic diversification across equities, 
fixed income, foreign exchange, commodities, 
money markets, alternative investments, real estate 
and private equity 
Outlook/trends Since 2002, Temasek has focused on Asia (except 
Singapore and Japan).  Over the 12 months to 
March 2007, exposure to Singapore declined from 
44% to 38% and exposure to the rest of Asia (excluding Japan) rose fr om 34% to 40%.  61% of 
the portfolio is in the fi nancial services, telecoms 
and media sectors Increased holdings in emerging markets are likely 
Transparency High. Audited annual financial reports, as well as 
periodic updates, are provided to the Ministry of 
Finance.  While not required to release financials 
publicly, group financial highlights have been 
published since 2004 in the annual Temasek Review Medium. Information about structure and 
investments, but no deta iled financial reports on 
website 
Recent investments Temasek confirmed on 23 July 2007 that it is 
investing almost US$2 billion in Barclays plc.  
Temasek will invest a further US$3 billion equity 
stake in Barclays conditional upon completion of the merger with ABN AMRO.  Temasek also holds 
17.22% equity stake in Standard Chartered Bank.d  
Other overseas investments during the year to 
March 2007 included new holdings in ABC 
Learning Centres (Australia, Temasek holds 12%), 
Intercell AG (Austria, 8.1%), Country Garden and Yingli Green energy (both China), INX Media 
(India, less than 25%), Mitsui Life (Japan, 4.6%), 
PIK Group and VTB Bank (both Russia). Temasek in May 2007 increased its stake in STATS 
ChipPAC to 83%.  In late September 2007 press 
reports noted that Temasek and Singapore Airlines together acquired 24% of China Eastern Airlines 
Corporation  July 2007:  Part of consortium in US$895 million 
acquisition of Myer Melbourne site for 
redevelopment 
July 2007:  Acquisition of a 50% equity share in WestQuay Shopping Centre, UK, for US$600 million 
June 2007:  Purchase of Chapterhouse Holdings 
Ltd., whose primary asset is the Merrill Lynch Financial Centre, for US$960 million 
May 2007:  Formation of joint venture with 
Sumitomo Corporation to invest US$1.3 billion over two years in Japanese retail properties 
April 2007:  Acquisition of 50% of Westfield 
Parramatta (Australian real estate company) for US$584 million 
a Temasek Holdings online information.  Vi ewed at:  http://www.temasekholdings.com.sg/. 
b "Well over 100 billion" (GIC online information.  Viewed at:  http://www.gic.com.sg/aboutus.h tm.2007) to 330 billion (Morgan 
Stanley, 2007). 
c Temasek Holdings online information.  Vi ewed at:  http://www.temasekholdings.com.sg/. 
d London Stock Exchange, 13 September 2007. 
Source:  Standard Chartered Bank, "State Capitalism:  The rise of sovereign wealth funds", 15 October 2007.  
13. As a fund manager, GIC manages funds on behalf  of the Government of Singapore.  Like 
Temasek, GIC is an exempt private company and is  not required to publish its company accounts; 
however, on its website, GIC discloses information relating to its investment process, long-term 
performance, and strategies of the various invest ment groups.  According to the authorities, the 
relationship between the Government of Singapore and GIC is one of fund ow ner and fund manager, 
respectively.  GIC's funds are consolidated in th e Government's accounts, independently audited by 
the Auditor-General's Office and presented to the Pr esident of Singapore (GIC is not required to 
report to Parliament, but must submit audited acc ounts to the President).  The IMF has recommended 
that more transparency would strengthen further pub lic confidence, but the Government is reportedly 
of the view that increased transparency would make the Singapore currency vulnerable to foreign 
speculators by publicizing details of Singapore's reserves.6  However, the on-going expansion of GIC 
and Temasek abroad and Singapore's ambition to b ecome a regional financial centre could encourage 
                                                      
6 IMF recommendation and government view reported in the Financial Times,  "Singapore's wealth 
fund flattered by imitation", 4 September 2007. Singapore WT/TPR/S/202/Rev.1 
 Page 23 
 
 
the Government to relax its rules on disclosure.  Also, the FTA with the Un ited States subjects GLCs 
with substantial revenues or assets to enhanced reporting requirements.   
14. According to the authorities, Singapore (togeth er with the United States and Abu Dhabi) 
supports the processes under way in the IMF and th e OECD to develop voluntary best practices for 
sovereign wealth funds (SWFs) and inward invest ment regimes for government-controlled investment 
in recipient countries.  Key principles advocated by Singapore are that SWF investment decisions 
should be solely on commercial grounds,  rather than to advance, direc tly or indirectly, the geopolitical 
goals of the controlling government;  and that great er information disclosure by SWFs, in areas such 
as purpose, investment objectives, institutional arrange ments, and financial information – particularly 
asset allocation, benchmarks, and rates of return ove r appropriate historical periods – can help reduce 
uncertainty in financial markets and build trust in recipient countries. 
15. The MTI consults regularly w ith the business community, prim arily through meetings with 
the various chambers of commerce and trade as sociations in Singapore, such as the Singapore 
Business Federation (SBF).  The SBF, establishe d in 2002 under the Singapore Business Federation 
Act7, represents the largest number of companies in Singapore and is one of the bodies that liaises 
with the Government on the interests of the business community in Singapore.  Consultations are also 
held with the tripartite National Wages Counc il, the National Trades Union Congress, and the 
Consumers Association of Singapore on a regular basis.  National committees may be formed from 
time to time to examine specifi c issues (such as the Economic Review Committee in 2001-03).  The 
Committees usually include representatives from ministri es, statutory boards, and the private sector.  
Draft legislation or guidelines may be issued for public consultation, usuall y through the website of 
ministries and statutory boards.8 
16. The Auditor General audits a nd reports annually on the accounts of Government, Parliament, 
and the national courts.  The Auditor-General's aud it and report are designed to ensure that there is 
proper accounting of public moneys and the effectiv e and efficient use of public funds and other 
resources.  The audited financial statements and the Auditor-General's report are presented to the 
President, who is in turn mandated to present it to Parliament.9  Scrutiny of the report within 
Parliament is carried out by a Public Accounts Committee.  In the view of the authorities, the 
Auditor-General as an independent authority has a key role in ensuring transparency and public 
accountability.  However, the authorities do not publish an account of the tax revenues forgone as a result of individual tax and non-tax incentives;  nor do they publish studies, if there are any, on the 
cost-effectiveness of such incentives in achieving their stated objectives.
10   
                                                      
7 The Act requires, inter alia,  compulsory membership of all compan ies registered in Singapore with a 
paid-up capital of S$0.5 million and above;  the subscription fee ranges from S$300 to S$800 depending on the 
company's paid up capital.  Smaller companies may also join if they wish. 
8 Ministries and statutory boards are uploading on their websites for public consultation new draft 
legislation "of significant public interest".  Examples include corporate and financial laws.  In April 2003, the 
Government established the Government Online Consultation Portal (www.feedback.gov.sg), to encourage 
public agencies to conduct e-consultations and solicit feedback on national policies and issues;  this process was 
used with high frequency.  In October 2006, REACH (Reaching Everyone for Active Citizenry @ Home) was set up as part of the restructuring plans for the Feedback Unit to move beyond gathering public feedback, and to 
become the lead agency for engaging and connecting with citizens.  The ex isting feedback portal features were 
integrated with the new REACH website (www.reach.gov.sg):  more feedback tools have been created to allow more platforms for public agencies to engage the public and for the public to give their feedback. 
9 Auditor-General's Report viewed at:  http://www.ago.gov.sg/articles.html. 
10 In response, the authorities contend that it is not meaningful to evaluate a tax incentive based on the 
tax loss that may arise because the tax loss is notional as the company may not come to Singapore in the WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 24 
 
 
17. The Corrupt Practices Investigation Bureau (C PIB), under the Prime Minister's Office, is 
responsible for investigating and preventing corruption in the public and private sectors.11  
(iii) Main trade legislation  
18. During the review period, there have been im portant revisions and/or new laws regarding 
trade and trade-related legislation in the areas of customs, consumer protection, competition, 
intellectual property rights, environmental pollution,  public utilities, financial services, broadcasting, 
telecommunications, and postal services (Table AII. 1).  Singapore's investment incentives are mainly 
covered by the Economic Expansion Incentives (Re lief from Income Tax) Act and the Income Tax 
Act.   
(4) TRADE AGREEMENTS AND ARRANGEMENTS  
(i) World Trade Organization 
19. As an original Member of the WTO, Singapore views the WTO as being at the core of its 
trade policy and grants at least most-favoured -nation (MFN) treatment to WTO Members and 
non-members.  Singapore believes that the multila teral framework of the WTO provides market 
access to multiple markets and guarantees a rules-b ased global trading system.  Nevertheless, the 
authorities consider that efforts undertaken bila terally and in regional fora can accelerate the 
momentum towards trade liberalization and strengthen the multilateral trading system.12  In this view, 
regional and bilateral FTAs, where consistent with WTO rules, can produce significant trade 
liberalization and form the building bloc ks of the multilateral trading process.  
20. In its statement to the Doha Ministerial Confer ence in 2005, Singapore warned that failure to 
reach an agreement on a common framework for ne gotiations would have serious consequences for 
the credibility of the WTO and the multilateral trading system, risking a loss of interest and momentum in the Doha Round.
13  In particular, Singapore considered that it was not possible to have 
negotiations within the framework of a single undert aking without restoring trust to the WTO system, 
which was a public good that deserved trust.  Singapo re urged Members to reconcile their differences 
in order to complete the negotiations as soon as possible. 
21. Singapore's priorities in the Doha Round are to  work towards greate r market access in goods 
and services.  At the start of the negotiations on market access for non-agricultural products, Singapore raised several issues that it thought Members should address, including:  the gap between bound and applied rates and the percentage of rates that are bound;  tariff peaks and nuisance tariffs;  
escalation;  and transparency, notably the use of non- ad valorem  tariff rates, which Singapore believes 
reduces the transparency of a country's tariff pr ofile and creates difficulty in determining the 
incidence of tariff protection.
14  Singapore's very few applied tariffs  all involve specific rates;  in its 
bound tariff, only around 1% of all tariff bindings carry specific duties.15  Singapore subsequently 
proposed that Members bind 100% of tariff lines in the NAMA negotiations, and, with other 
                                                                                                                                                                     
first instance without an incentive;  the Ministry of Finance does not therefore have a budget of tax expenditure 
or revenue loss arising from incentives.   
11 For further information see CPIB online in formation.  Viewed at:  www.cpib.gov.sg. 
12 Ministry of Trade and Industry.  Viewed at:  http://app.mti.gov.sg/defau lt.asp?id=553&articleID=& 
surevyID=&rdn=&uid=&email [31 August 2007]. 
13 WTO document WT/MIN(05)/ST/1, 14 December 2005. 
14 WTO document TN/MA/W/8, 10 September 2002. 
15 The bound tariffs that are subject to specific ra tes all relate to alcohol and tobacco products. Singapore WT/TPR/S/202/Rev.1 
 Page 25 
 
 
Members, has sought a harmonizing formula that would tackle tariff peaks and tariff escalation and 
achieve real market access opportunities.16  
22. Singapore is largely a services economy with export interests, particularly in markets in the 
region, and has focused on securing greater market  access in the services negotiations.  It submitted 
its GATS initial offer on 15 July 2003 and a revised  offer on 31 May 2005.  Singapore considers that 
the scope of the revised offer depends in part  on the responses from its trading partners, both 
developed and developing, to its requests.  Singa pore has forwarded both b ilateral and plurilateral 
requests across various services sectors, including:  computer and related services, construction 
services, telecommunications, and cross-border supply.  In the area of rules, Singapore is a "Friend of 
the Anti-Dumping Negotiations" (FANs).  Singapore believes that anti-dumping investigations should 
be conducted in a transparent manner and is inter ested in tightening the Anti-Dumping Agreement to 
help strengthen its provisions.  In the Negotiati ng Group on Rules, Singapore has expressed concern 
about the continued increase in the use of con tingency measures, and has submitted several joint 
proposals on clarifying and improving the rules on anti-dumping.  In addition, given Singapore's 
overall policy objective of achieving greater ma rket access in the Doha Round, another area of 
interest is reaching a good frame work agreement on trade facilitation that would further expedite the 
movement, release, and clearance of goods.   
23. In keeping with the requirements of various  WTO Agreements, Singapore periodically  
notifies to the WTO relevant laws and changes to laws (Table AII.2).  
24. During the period under review, Singapore has not been involved in any disputes at the WTO 
as complainant or defendant.  
(ii) Regional agreements 
(a) ASEAN 
ASEAN Economic Community (AEC) by 2015 
25. As a founding member of the Association of Southeast Asian Nations (ASEAN)17, Singapore 
is working towards achieving an ASEAN Economic Community (AEC) by 2015.  The Declaration of 
the AEC 2015 Blueprint was signed by ASEAN leaders at their summit in November 2007 in 
Singapore.  The end-goal of the AEC 2015 is a singl e market and production base, in which there is a 
free flow of goods, services, investments, and skilled labour, and a freer flow of capital, along with equitable economic development, and reduced po verty and socio-economic disparities.  In the 
Blueprint these goals are categorized into four pilla rs:  a single market and production base;  a highly 
competitive economic region (including the areas of competition policy, taxation and IPRs);  a region 
of equitable economic developmen t (including facilitating SME development);  and a region fully 
integrated into the global economy.  Along with the Bl ueprint, there is a strategic schedule that details 
the implementation timelines.
18  ASEAN's current focus is on the first pillar whose core elements are 
the liberalization of trade in goods, services, and investments in the region.   
                                                      
16 In WTO document JOB(07)/106 of 26 June 2007 "Some elements towards a possible middle ground 
solution in NAMA", Singapore, together with seven other WTO Members, suggested a number of parameters to find a middle ground concerning the Swiss formula.  
17 Membership currently consists of:  Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Myanmar, 
Malaysia, the Philippines, Singapore, Thailand, and Viet Nam. 
18 ASEAN (2007). WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 26 
 
 
Goods 
26. The ASEAN Free Trade Area Common Effective Preferential Tariff (CEPT) scheme was 
signed in 1992, with a schedule for tariff reductio n/elimination regarding intra-ASEAN trade in 
goods.  Implementation has resulted in average ta riff rates for intra-ASEAN trade progressively 
decreasing over the years to enhance the movement of  goods in the region.  The average tariff for the 
ASEAN-6 (founding members)19, is 1.74% down from 12.76% in 2003.20  Currently, almost 99.8% of 
tariff lines in the Inclusion List of the ASEAN-6 are in the 0-5% tariff band, and over 65% are at 0%.  
Singapore's applied tariff is 0% for all goods traded within ASEAN;  it does not have products in the 
Sensitive or Highly Sensitive lists or in the Genera l Exclusion List.  With the CEPT scheme on track, 
the focus of AFTA has expanded beyond tariff reducti ons to include trade facilitation measures, such 
as efforts to eliminate non-tariff barri ers;  the harmonization of cust oms nomenclature, valuation, and 
procedures;  the development of common product cer tification standards;  and the development of 
national single windows as a step towards an ASEA N single window.  ASEAN is also working at 
developing a comprehensive Trade in Goods Agre ement to encompass the AFTA CEPT scheme and 
other related aspects of AFTA. 
Services 
27. The ASEAN Framework Agreement on Services  (AFAS) was signed in 1995, formalizing 
ASEAN's goal of eliminating restriction to trad e in services and enhancing intra-ASEAN cooperation 
in services.  Five packages of commitments have b een signed, the fifth, in December 2006, covering 
70 subsectors.  The recent ASEAN Economic Mini sters (AEM) meeting in August 2007 endorsed a 
road map to guide the AFAS services liberali zation process towards a 2015 end-date, including a 
modality for the liberalization of mode 3 services by the same date.  For Singapore, ASEAN offers opportunities for strong growth, especially in terms of  services.  With economic integration, business 
will be able to view ASEAN as a single market and production base, in whic h the flow of goods and 
services would be unfettered, enabling ASEAN to develop an efficient and competitive services economy that can stand against global competitors.
21   
Investment 
28. The 1998 Framework Agreement on the ASEAN I nvestment Area (AIA) aims to ensure a 
free flow of investment (in manufacturing, fisheries, forestry, mining, agriculture, and services) by 2020.  Reservations made by members are scheduled to be eliminated in 2015 for ASEAN investors 
and 2020 for non-ASEAN investors.  The ASEAN-6 c ountries agreed to accelerate this process by 
eliminating reservations in manufacturing for ASEAN investors by 2003 and for all investors by 
2010.  The Singapore authorities have noted that th is progressive move is aligned to Singapore's 
position. 
ASEAN's external relations with dialogue partners   
29. To strengthen links with other trading partners , ASEAN is in FTA negotiations with China, 
Japan, Korea, India, Australia and New Zealand, and the EC, and has economic partnerships with 
Canada and the United States through trade and inv estment framework arrange ments.  According to 
the authorities, the trade-in-goods chapters of the ASEAN-China FTA (ACFTA) and the ASEAN-
Korea FTA (AKFTA) entered into force in 2005 and in 2006, respectively.  The services chapter of 
the ACFTA was signed in 2006, and of the AKFTA at the 2007 Summit.  The investment chapters for 
                                                     
 
19 Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore, and Thailand. 
20 Figures in this section were provided by the Singapore authorities. 
21 Ministry of Trade and Industry (2007b). Singapore WT/TPR/S/202/Rev.1 
 Page 27 
 
 
both FTAs are currently under negotiation.  Nego tiations for the ASEAN-Japan Comprehensive 
Economic Partnership Agreement are in their fi nal stages.  Negotiations are under way for the 
ASEAN-India FTA (AIFTA) and the ASEAN-Austra lia-New Zealand FTA ( AANZFTA);  substantial 
conclusion of the AANZFTA is targeted for May 2008.  The AANZFTA is being negotiated as a 
single undertaking (i.e. all chapters are under negotia tion simultaneously with the aim of concluding a 
comprehensive FTA).  This is the first single-unde rtaking FTA ASEAN has embarked on;  one with 
the EC is expected to follow.22   
(b) APEC 
30. Singapore, which is host to the APEC Secretariat, aims to implement free trade and 
investment by 2010 along with the developed country members of APEC.23  Individual Action Plans 
(IAPs) for each member outline their paths to this goal.  The IAPs cover liberalization in tariff and 
non-tariff barriers for goods, services, and investment  as well as provisions relating to intellectual 
property, improved trade facilitation, competiti on, transparency, and updates on the pace of 
liberalization via FTAs/RTAs.  Singapore will ha ve its next IAP review in September 2008. 
31. The Singapore authorities consider it important  that APEC refocus on its core trade and 
investment agenda.  This is partly due to the pr oximity of the 2010 Bogor goal, the growing economic 
prosperity of the Asia-Pacific region, and the increasing web of FTAs/RTAs amongst APEC 
economies.  Acknowledging that the multilateral tradi ng system is still of the highest priority for 
APEC economies, APEC has also tried to exert l eadership for the ongoing DDA negotiations.  This 
was exemplified by the Ministers' statement at the APEC Ministerial Meeting in 2004, which 
welcomed the launch of trade facilitation negotiations  at the WTO.  There has also been strong 
support from APEC for an early conclusion of th e DDA negotiations, including a statement at the 
2007 Economic Leaders meeting.  
32. The 2005 Mid-Term stock-taking report demons trated that APEC was well on its way to 
meeting the goal of 5% reduction in business trans action costs by 2006, as stipulated in the 2001 
Shanghai Accord.  Having concluded that the Shan ghai target had been met, leaders welcomed a 
further reduction of trade transaction costs by 5% in the APEC region by 2010.  This is to be achieved 
through the second phase of the Trade Facilitation Ac tion Plan (TFAP II), which was endorsed at the 
Ministers Responsible for Trade (MRT) meeting in July 2007.   
33. Aligned with the mandate to better respond to  business needs, APEC leaders in 2006 noted 
how the current tangle of FTAs/RTAs amongst APEC  economies might be detrimental to business by 
inflating business costs.  The leaders instructed officials to undertake further studies on ways and 
means to promote regional economic integration, in cluding a free-trade area of the Asia-Pacific as a 
long-term prospect.  At the 2007 APEC Economic Lead er's meeting in Australia , the leaders endorsed  
a report that laid down a path for promoting furt her economic integration in the Asia-Pacific region 
and reiterated the FTAAP as a possible long-term goal. 
                                                      
22 ASEAN Economic Ministers and the EU Trade Commissioner signed a Ministerial statement on 
4 May 2007 in Brunei to launch negotiations for an ASEA N-EU FTA.  The first joint committee, established as 
the FTA's negotiating body, met in July 2007, to exchange information, views, and exp ectations on the elements 
of the FTA, the organization of the negotiating bodies/committees, and the work programme. 
23 Other members of APEC are:  Australia;  Brunei Darussalam;  Canada;  Chile;  China;  Chinese 
Taipei;  Hong Kong, China;  Indonesia;   Japan;  Korea;  Malaysia;  Mexico;  New Zealand;  Papua New Guinea;  
Peru;  the Philippines;  the Russian Federation;  Thailand;  the United States;  and Viet Nam. WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 28 
 
 
(c) ASEM 
34. Singapore is part of the Asia  Europe Meetings (ASEM) foru m, an informal process of 
dialogue and cooperation between the European Commission, the ASEAN Secretariat, European 
Union member countries and 16 Asian countries.24  Among the areas of particular interest to 
Singapore is the Trade Facilitation Action Plan (TFA P), which aims at the reduction and removal of 
non-tariff barriers to trade between the two regi ons.  However, the political issues concerning 
Myanmar appear to have slowed down work in th e economic field and no summit has been held since 
July 2003.   
(iii) Bilateral agreements 
35. Since 2004, Singapore has added five new agreem ents to its FTAs:  India (Comprehensive 
Economic Cooperation Agreement signed 29 June 2005, effective 1 August 2005);  Jordan (signed 
29 April 2004, effective 22 August 2005);  Korea (s igned 4 August 2005, effective 2 March 2006);  
Panama (signed 1 March 2006, effective 24 July 20 06);  and a quadrilateral agreement (Trans-Pacific 
SEP) with Chile, New Zealand, and Brunei (signed 18 July 2005, effec tive 28 May 2006) (Table II.3).  
FTA negotiations were concluded with Peru in September 2007 and Singapore is currently in FTA 
negotiations with Canada, China, the Gulf C ooperation Council, Mexico, Pakistan, and Ukraine.25   
Table II.3 
Singapore's bilateral free-trad e agreements, 30 September 2007  
Agreement Date of entry into 
force WTO notification 
date Comments 
Australia (SAFTA) 28 July 2003 1 October 2003 Covers  trade in goods and services;  movement of 
business persons;  government procurement;  IPRs;  
competition policy;  and e-commerce.  First reviewa of 
implementation in July 2004 notes, inter alia,  lifting 
of quota on wholesale banking licences by Singapore   
Jordan (SJFTA) 22 August 2005 7 July 2006 Entails removal of Jordan's tariffs on 100% of 
Singapore goods by 2015 (currently 48% of goods 
enter Jordan duty free);  service suppliers guaranteed 
access to each other's markets;  SJFTA also covers 
e-commerce and business cooperation 
India (CECA) 1 August 2005  3 May 2007 Tari ffs on 75% of Singapore's exports will be 
eliminated or substantially re duced within five years;  
both countries have committed to liberalize various 
service sectors beyond their WTO commitments.  
Mutual recognition agreements will eliminate duplicate testing and certification of products in 
specific sectors, and cooperation chapters will 
encourage and facilitate  bilateral cooperation 
Japan (JSEPA) 30 November 2002 and 
2 September 2007 8 November 2002  Revised New-Age Economic Partnership Agreement 
will improve (as of 1 January 2008) tariff-treatment of 
Singapore goods for 92% of Japan's tariff lines up 
from 77%;  on ROOs, the threshold of value-added 
rules will be reduced from 60% to 40% for most products;  in financial services, Singapore will grant access for one full bank licence for Japanese banks 
that meet relevant admission criteria;  also improved 
commitments in insurance and asset management 
Table II.3 (cont'd) 
                                                      
24 The Asian countries are:  Brunei Darussalam, Cambodia, China, India, Indonesia, Japan, Rep. of 
Korea, Lao PDR, Malaysia, Mongolia, Myanmar, Pakistan, the Philippines, Singapore, Thailand, and Viet Nam. 
25 As of October 2007, Singapore had completed eight rounds of FTA negotiations with Canada, 
two rounds with Pakistan, and one round with Ukraine.  For further details and updated information see FTA online information.  Viewed at:  www.fta.gov.sg. Singapore WT/TPR/S/202/Rev.1 
 Page 29 
 
 
Agreement Date of entry into 
force WTO notification 
date Comments 
Korea (KSFTA) 2 March 2006 21 February 2006 Singapor e enjoys tariff concessions on consumer 
electronics, precision engineering, biomedical 
sciences, and chemical and agricultural products;  75% 
of Singapore's exports to Korea get immediate tariff 
elimination.  All imports from Korea have entered Singapore duty free since agreement entered into force 
New Zealand 
(ANZSCEP) 1 January 2001  4 Septem ber 2001 Both countries, inter alia , will eliminate all tariffs;  
commitment to liberalize many service sectors;  
framework of investment ru les to promote and protect 
bilateral investment;  commitment to establish a single 
government procurement market between the two 
parties for procurement valued at over S$50,000 
Panama (PSFTA) 24 July 2006 4 April 2007 Panama is  Singapore's largest trading partner in Latin 
America.  FTA covers market access for trade in 
goods, cross-border trade in services, financial 
services, telecoms, e-commerce, investment 
protection, competition, government procurement, and dispute settlement 
Perub Scheduled for 2009  87% of Singapore exports will enter Peru duty free 
upon entry into force of FTA;  remaining tariffs to be 
phased out over ten years.  Other provisions cover 
trade facilitation, trade in services, government 
procurement, and coopera tion on competition policy 
Switzerland, 
Liechtenstein, Norway 
and Iceland (ESFTA) 1 January 2003 14 January 2003 Currently Singapore's only FTA with Europe 
Trans-Pacific SEP 
(Brunei, NZ, Chile, 
Singapore) 28 May 2006 18 May 2007 Builds on existing FTA with New Zealand and seeks 
to improve on commitments;  covers trade in goods 
and services, TBT and SPS measures, government 
procurement, customs pro cedures, IPRs, competition, 
temporary entry of persons  
United States 
(USSFTA) 1 January 2004 17 December 2003  Broad coverage, which, inter alia,  commits Singapore 
to enact competition  legislation by 2005 
a The First Review of the Singapore-Australia Agreement, 14 July 2004 – Joint Ministerial Statement.  Viewed at:  
http://www.dfat.gov.au/trade/negotia tions/safta_review1_jms.html. 
b Peru and Singapore concluded FT A negotiations in September 2007.  According to  the Singapore authorities, it is expected to 
enter into force subject to the completion of  each party's respective domestic processes. 
Source: WTO Secretariat, based on information in Ministry of Trade and Industry online information.  Viewed at:  
www.fta.gov.sg. 
36. The agreement between Singapore and the United St ates (one of its largest trading partners) 
entered into force on 1 January 2004, and marked th e first bilateral FTA signed by the United States 
with an Asian state.  It aimed, inter alia,  to open up the U.S. market to Singapore's merchandise 
exports, in return for preferential access by U.S. firms to Singapore's service sector, particularly 
financial services.  In addition to liberalization of  trade in goods and services, the agreement also 
encompasses intellectual property rights and electroni c commerce.  The United States is to eliminate 
tariffs on all products originating from Singapore, a nd Singapore is to remove its existing tariffs on 
goods (alcoholic beverages) from the United States.  The Japan-Singapore FTA is similar in scope to 
the U.S. treaty, with about 94% of Singapore's expor ts to Japan being made duty free.  In return, 
Singapore has bound its zero tariff on imports from Japan26, and provided preferential access to its 
financial services sector.  The FTAs with Australia , New Zealand, the European Free Trade Area 
(EFTA), and others are likely to have a rela tively smaller economic impact, since these economies 
                                                      
26 Under JSEPA, Singapore has committed to grant zero-tariff treatment on all imports from Japan 
upon entry into force of the Agreement, whilst Japan ha s increased its zero-tariff commitments from the current 
34% (under WTO) to 77% of total tariff lines. WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 30 
 
 
account for a fairly small share of Singapore's total trade, although there may be scope for growth in 
bilateral trade between Singa pore and its FTA partners. 
Overview of FTA coverage  
37. In addition to improving market access for goods  and services, negotiations have focused on 
investment, intellectual property rights, and other trade-related issues such as competition policy, 
government procurement, trade facilitation, contingency measures, and broader economic 
cooperation.  While Singapore has almost no applied tariffs (apart from tariffs on six tariff lines of 
alcoholic beverages), it has offered to negotiate preferential treatment for partners, ranging from 
binding all its tariff lines at 0%, better access to serv ice industries in Singapore, mutual recognition of 
standards, greater commitment to protect inte llectual property rights, and elimination of 
anti-competitive practices.  
38. Detailed and comprehensive rules of origin w ithin Singapore's bilateral agreements range 
from the general, value-added criteria (the agreemen ts with New Zealand and Australia) to detailed, 
product-specific rules (agreements with Japan, th e United States, and the EFTA states).  Since 
Singapore's tariff, with the exception of six tariff lines , is duty free, the burden of complying with the 
rules of origin is primarily on Singapore-based exporte rs to gain preferential access to the markets of 
their bilateral trade partners (s ee also Chapter III(2)(iv)(b)).  Th ey take into account the rules 
established in other agreements, such as the Au stralia-New Zealand CER Agreement (e.g. in 
Singapore's bilateral agreements with New Zealand and Australia), NAFTA (e.g. in the bilateral FTAs 
with Japan and the United States), and European rule s of origin (the agreement with the EFTA states), 
but also take into consideration specificities with each FTA partner.  
39. Under its bilateral FTAs, Singapore has made co mmitments in addition to those undertaken in 
the WTO, including the GATS and TRIPs, underlining its view that FTAs can be used as building blocks for a stronger multilateral trade liberaliza tion framework if they are WTO-plus (going beyond 
WTO commitments e.g. non-application of safegua rd measures, enhanced investment protection 
disciplines) and WTO-consistent, and open to othe rs prepared to make the same commitments 
(Box II.1).  For example, the revised "new age" partnership agreement between Singapore and Japan 
is thought to go beyond WTO commitments, focusing on services sector liberalization and promotion of FDI;  it also includes facilitation of customs proc edures, smoother transborder flow of capital and 
labour, and collaboration on educatio n and training.  In line with provisions in the FTA with the 
United States, and also applicable to all foreign fi rms, Singapore has reduced the requirement that the 
chairman and two thirds of the firm's board of dir ectors must be composed of engineers, architects or 
land surveyors registered with local professional bodies to a simple majority. 
40. In services, Singapore has followed a positive-lis t approach with EFTA, India, Japan, and 
New Zealand and a negative-list approach with Australia, Korea, Panama, and the United States.
27  
Singapore's commitments on services under its b ilateral FTAs have gone beyond its GATS 
commitments, including in financial services, business and professional services, telecommunications, 
education, and environmental services.   
                                                      
27 See Marchetti and Lim (2006).  The authors point to the distinction between (a) the NAFTA-type 
approach based on a negative-list scheduling modality where everything is liberalized unless otherwise indicated 
through lists of reservations and (b) the GATS, which ad opts a positive-list modality whereby the liberalization 
obligations only apply to the sectors listed, which themselves are subject to limitations and specified conditions.   Singapore WT/TPR/S/202/Rev.1 
 Page 31 
 
 
Box II.1:  Rationale for bilateral and regional RTAs 
Singapore believes that FTAs comple ment the multilateral trading system:  
1.  FTAs allow countries to identify compatible pa rtners with whom to pursue faster and broader 
liberalization. 
2.  FTAs create positive competitive dynamics that spur further liberalization. 
3.  FTAs engender the internal economic reform processes. 
4.  FTAs improve the competitiven ess of businesses and provide greater access to the markets of FTA 
partners. 
Source:  Margaret Liang (2005), "Singapore's Tr ade Policies:  Priorities and Options", ASEAN Economic 
Bulletin , Vol. 22, No. 1, pp. 57-58.  
41. Commitment to promote competition by addressing anti-competitive practices through 
legislation is one of the key provisions in the U.S.-Singapore FTA (which committed Singapore to 
enact general competition policy legislation by 2005 and to ensure that all enterprises, including 
government enterprises, are subject to competition di sciplines) and the Singapore-Australia FTA.  In 
addition, due to the FTAs with Australia, New Z ealand and the United States, there have been 
important changes in the framework of intellectual property rights.  
(iv) Other preferences 
42. Under the Generalized System of Preferences (GSP), exports from Singapore receive 
duty-free or preferential access to the markets of Canada and the Russian Federation.  Singapore also receives preferences from Mauritius and Seyche lles under the Commonwealth Preference (CP) 
scheme.  No information was available on the year ly value of Singapore's exports or imports under 
either the GSP or the CP schemes.   
(5) F
OREIGN INVESTMENT REGIME  
(i) Overview 
43. Foreign investment has traditionally been we lcomed in Singapore and has accounted for a 
significant share of total investment in the ec onomy.  Through foreign investment, Singapore has 
evolved into a base for multinational companies to engage in high-end manufacturing and product 
development, and to coordinate  regional procurement, producti on, marketing, and distribution 
operations.  Reflecting the important  contribution of foreign investment to the development of the 
economy, there are few restrictions on inward foreig n investment, and the restrictions that exist are 
mainly in broadcasting, the domestic news medi a, retail banking, legal and other professional 
services, and  property ownership.28  
44. Foreign direct investment in the manufact uring sector remains unrestricted.  Foreign 
investment limits have been maintained in broad casting and newspaper services:  in broadcasting, FDI 
is allowed up to 49%, unless waived by the Minister for Information, Communication and the Arts.29  
                                                      
28 Foreign persons are restricted from purchasing certain residential properties unless they have prior 
approval by the Minister for Law. Such property includes:  landed property (i.e. detached houses, semi-detached  
houses or terraced houses), landed property in stra ta developments, which ar e not approved condominium 
developments under the Planning Act, and vacant resident ial land.  The main criteria for approval are whether 
the applicants are permanent resi dents of Singapore, and their economic contribution to Singapore. 
29 Individual ownership of shares issued by broadcasting and newspaper companies was raised from 
3% to 5% on 2 September 2002, or higher, with prior approval. WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 32 
 
 
There are restrictions on foreign law firms and fo reign lawyers practising Singapore law in Singapore 
but there are no restrictions in any arbitration work and in matters governed by foreign law.  Foreign investment in some of Singapore's government -linked companies (GLCs), depending on the sectors 
they operate in, is also subject to restrictions.  For example, the aggregate foreign shareholding limit 
in PSA Corporation, which manages Singapore's ports , is 49%.  Foreign ownership restrictions may 
also apply to Singapore designated airlines dependi ng on the requirements of Singapore's bilateral and 
multilateral air services agreements.
30  
45. Singapore maintains no restrictions on portfolio investment or on outward FDI. 
(ii) Incentives 
46. Investors, who wish to carry out business under business-related legislation, are required to 
register with the Accounting and Corporate Regulatory Authority (ACRA).31  Other investors, such as 
those who only purchase securities and stocks, are not required to register.   
47. According to the authorities, tax incentives are given to help create, together with non-tax 
factors, an enabling environment for the development of the economy.  Generally, the Ministry of Finance takes into account the following factors in  assessing whether to introduce a new tax incentive 
or to renew a specific incentive:  whether the s ubstantive activity can help Singapore upgrade its 
capabilities (e.g. in skills and technology) and genera te higher value-added.  For existing incentives, 
the MoF considers the economic spin-offs that ha ve resulted from hosting the activity (e.g. higher-
skill jobs, more investment or technology transfer).  Spin-offs can be both direct and indirect.  For 
instance, the presence of an activity in Singapore ma y lead to capability-building that make Singapore 
attractive to other related upstream or downstream activities.  The MoF does not attempt to attribute 
how much of the spin-offs arise from tax incentives alone as companies look at the total package in 
determining the scale of their operations in Sing apore, if they decide to locate there.  
48. As was the case at the time of the previous  Review, incentives for investment are given 
mainly under the Income Tax Act (Cap 134), a nd the Economic Expansion Incentives (Relief from 
Income Tax) Act (Cap 86), which relates to in centives for establishing pioneer industries and for 
economic expansion generally.  The incentives generally  comprise concessional corporate tax rates of 
between 5% and 15% (the normal rate is 20% to be reduced to 18% from the 2008 assessment  
onwards) or corporate income tax exemptions, de pending on the scheme.  In addition, incentives are 
provided for investors in several services, including financial services, tourism, media services, and 
telecommunications.  Non-tax incentives include grants for certain activities, in particular relating to 
high-value-added sectors, training, and R&D (see also Chapter III(4)(iv)).   
(iii) International agreements 
(a) Investment agreements 
49. During the period under review, Singapore has si gned investment guarantee agreements with 
Bangladesh (24 June 2004), Indonesia (16 Februa ry 2005), Saudi Arabia (10 April 2006), Slovak 
Republic (13 October 2006), and Ukraine (18 Sept ember 2006).  In its investment protection 
                                                     
 
30 In addition, individual investors (local and foreign) through the following companies are subject to 
equity ownership limits:  Singapore Technologies Engi neering (15%);  PSA Corporation (5%);  Singapore 
Airlines (5%);  and Singapore Power, SP Power Grid, SP Services and Power Gas (10%). 
31 ACRA came into existence on 1 April 2004 through  the enactment of the Accounting and Corporate 
Regulatory Act as a result of the merger  between the then Registry of Companies and Businesses and the Public 
Accountants Board.  For further information se e the ACRA online inform ation.  Viewed at: 
http://www.acra.gov.sg. Singapore WT/TPR/S/202/Rev.1 
 Page 33 
 
 
agreements and preferential trade agreements, Singa pore has also undertaken to accord to investments 
fair and equitable treatment. As a WTO member and party to the WTO Agreement on Trade-Related 
Investment Measures (TRIMs), Singapore has agreed  not to apply investment measures related to 
trade in goods that restrict or distort trade.  
(b) Taxation agreements 
50. Singapore has signed agreements to avoid double taxation with Bahrain (18 February 2004);  
Belgium (6 November 2006, not in force);  Brunei (19 August 2005);  China (11 July 2007);  Estonia 
(18 September 2006, not in force);  Fiji (20 De cember 2005);  Germany (28 June 2004);  Israel 
(19 May 2005);  Kazakhstan (19 September 2 006);  Malaysia (5 October 2004);  Malta 
(21 March 2006, not in force);  Morocco (9 January  2007, not in force);  Qatar (28 November 2006);  
Slovak Republic (9 May 2005);  and Ukraine (26 January 2007, not in force).   
51. The authorities have noted that among these tax treaties, there are mutual "tax sparing" 
provisions with Brunei, Fiji, Israel, Malaysia, Malta, Morocco, and Qatar.  Under the DTA with 
China, Singapore gives unilateral "tax sparing" re lief to income derived from China.  The "tax 
sparing" provisions in the tax treaty with Germany e xpired on 31 December 2005.  The tax treaty with 
Kazakhstan contains MFN provisions.   
(6) AID FOR TRADE  
52. Mindful of the crucial role that unilateral trad e liberalization, together with the multilateral 
trading system, has played in fostering its rapid economic development, Singapore wishes to share its 
experience in this regard with other developing countries and offer them technical assistance.  
Accordingly, Singapore supports the objectives of the Aid-for-Trade Initiative (AFT) through, 
inter alia , the Singapore Cooperation Programme (SCP), its technical assistance programme to 
developing countries.  Singapore has shared its development experiences with other countries since 
the inception of the SCP in 1992.32  As a strong supporter of free trade, Singapore has committed 
substantial resources to help strengthen the huma n resource and institutional capacity of developing 
countries in harnessing trade as an engine of gr owth and development.  Around 80% of the SCP 
programmes have a direct or indirect contributi on to AFT.  Through the SCP, Singapore has been 
organizing technical assistance programmes on trade policies and regulations to equip developing 
countries with the requisite knowle dge on trade opportunities and skills to access them.  They cover 
areas such as:  trade policy and planning, e.g. ma rket access and trade facilitation, trade liberalization 
and negotiation, dispute settlement , and anti-dumping;  economic infrastructure, e.g. sea and airport 
management, logistics and distribution, customs ma nagement, and ICT;  macroeconomic reforms;  
liberalization of banking;  trade financing;  ente rprise development and competitiveness;  and other 
areas in which Singapore has experience, such as  intellectual property,  good governance, and 
anti-corruption practices.  Singapore has had a long part nership with the WTO in this area, in the form 
of the Singapore-WTO Third Country Training Programme for government officials.33 
                                                      
32 The Technical Cooperation Directorate in the Ministry of Foreign Affairs administers programmes 
under the SCP.  To date, more than 54,000 participants from 168 countries have been trained in a wide range of 
fields.  In FY2007, for example, Singapore conducted over 400 programmes and study visits for developing countries.  These programmes were u ndertaken bilaterally with recipient countries, or in collaboration with 
development partners, including the WTO and other international partners (such as the IMF, WIPO, 
Commonwealth Secretariat, JI CA and the EU).  For further details see SCP online information.  Viewed at:  
www.scp.gov.sg.    
33 Singapore and the WTO have jointly conducted 14 courses for nearly 300 government officials since 
1998.  Singapore is also currently hosting the annual Regional Trade Policy Course with the WTO at the National University of Singapore Faculty of Law for a three-year period (2007 to 2009).