Singapore WT/TPR/S/202/Rev.1 
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IV. TRADE POLICIES BY SECTOR 
(1) INTRODUCTION  
1. Singapore's economy continues to be dominat ed by manufacturing and services, which 
accounted for 24.1% and 65.9% of GDP, respectively,  in 2007;  ownership of  dwellings (at 4.6%), 
construction (3.8%), and utilities (1.6%) made up the remainder.  The Government seeks to maintain 
manufacturing at 20-25% of GDP, and has continue d to encourage a move into high-value-added 
activities, primarily through the creation of supp orting infrastructure and incentives.  The sectoral 
clusters in manufacturing currently targeted are:   electronics, chemicals, biomedical sciences 
(comprising the pharmaceutical, medical tec hnology, biotechnology and healthcare service 
industries), and engineering (including precisi on and transport engineering).  Electronics and 
chemicals form the main manufacturing activities in terms of output, with electronics accounting for a 
large share of total merchandise exports.  Comp etition from low-cost producers in the region and 
Singapore's rising labour costs have resulted in a gradual shift away from labour-intensive to 
high-value-added capital-intensive activities in knowledge-based manufacturing and services sectors.  
Incentives are provided to encourage innovation by firms operating in Singapore.  
2. Significant parts of the Singapore economy continue to be dominated by GLCs, which are 
involved in a wide range of areas including fina ncial services, telecommunications and media, 
transportation and logistics, real estate, engineer ing, energy and resources, high-tech manufacturing, 
consumer and lifestyle industries, and the hospita lity industry (see Table III.5).  Temasek-linked 
companies, according to the Government, operate  fully as for-profit commercial entities on the same 
basis as private companies.  None theless, as discussed in Chapter III(ii)(c), their presence in many 
industries has led to concerns over the years that, due  their size and number, they might be crowding 
out the private sector and retarding the growth of an otherwise critical mass of thriving local 
enterprises.  However, disinvestment of GLCs, e nhancement in standards of corporate governance, 
and intellectual property protecti on, as well as the successful implementation of the new competition 
policy are key factors for expecting further improve ment in the efficiency and competitiveness of the 
economy. 
3. The economy is largely open as far as trade in goods is concerned and has become more open 
for services.  In the electricity sector, stat e-owned companies continue to dominate although 
restructuring and privatization has begun, and th e three leading power generation companies are due 
to be divested by Temasek in 2008/09.  Deregulati on has continued in the gas sector with the approval 
of non-discriminatory terms and conditions for gas transportation throughout the Singapore network;  
the supply of water is centrally mana ged by the Government at price le vels considered to be reflective 
of water as a scarce resource.  A significant degree of liberalization in financial, telecoms, and 
professional services has been achie ved since the previous Review and bound in several bilateral 
free-trade agreements.   
4. In banking, the liberalization measures, which have encouraged greater participation from 
foreign banks, have been strengthened by im proved supervisory and corporate governance 
frameworks in the form of new a nd amended legisla tion regarding, inter alia,  the Banking Act, 
Deposit Insurance Act, Securities and Futures Act, Fi nancial Advisers Act, a nd Trust Companies Act.  
Singapore has also evolved into a major regiona l asset management centre.  As a result of 
liberalization, the number of telecommunication ser vice providers has increased significantly, with 
over 600 telecom licences awarded, albeit mainly to  service-based operators.  The postal sector was 
liberalized in April 2007, ending a 15-year monopoly by SingPost in the basi c mail services market.  
The Government has put in place several long- a nd short-term incentives to encourage growth in 
transport services, with a view to making Singapore Asia's leading maritime and aviation hub.  A WT/TPR/S/202/Rev.1 Trade Policy Review 
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significant development in the tourism sector was the 2005 decision by the Government to abolish its 
long-standing prohibition of gambling and allow casinos  in Singapore, in an attempt to increase 
visitor arrivals and bolster economic growth.  Rele vant legislation was passed in 2006 and will 
provide the legal framework for two large integrated resorts due to open in 2009/10.  Singapore is 
continuing to build up the health services sector, par ticularly to encourage its use by international 
patients and has increased market access for foreign professionals, notably lawyers.   
(2) AGRICULTURE  
5. Agriculture plays a minor part in Singapore's economy, accounting (together with fishing and 
mining) for around 0.1% of GDP in 2007.  Around 2,400 people are employed in agriculture.  
Production, which takes place mainly in six agri-tec hnology parks, consists largely of vegetables and 
fruit, and eggs and livestock for local consumption,  and orchids and ornamental fish for export.  
Singapore imports over 90% of its food needs.  
6. The Agri-Food Veterinary Authority (AVA), a st atutory board, is responsible for managing 
Singapore's agricultural land, mainly in the form of agri-technology parks.  Plots of land in the parks 
are leased to farmers and companies for periods of  20 years.  The AVA provides basic infrastructural 
facilities, such as water, roads, and electricity, as we ll as technical assistance to farmers in an effort to 
raise productivity and improve product quality.  With  pressure for optimal use of agricultural land, 
Singapore emphasizes development of new technologies through R&D for farm application. Some of 
the areas being addressed are in variety selection, nutrition, pest and disease control, agronomy/husbandry, post harvest, and biotechnology.   
7. There have been no significant changes to agri cultural trade policy.  With the exception of 
six tariff lines relating to alcohol products, agricultural imports do not face tariffs.  Rice remains subject to non-automatic import and export licensi ng for food security reasons.  According to the 
authorities, the administration of the stockpile sch eme does not necessarily translate into higher prices 
for consumers as there is intense competition among local importers.  All imports of agricultural 
products, meat and fish must comply with strict sa nitary and health requirements.  In some cases, 
imports of these products are permitted only from es tablishments accredited by the AVA in selected 
countries.  Import licences must be obtained from the AVA prior to import.  With the exception of rice and rubber, which are subject to non-automatic export licensing, Singapore does not restrict exports of agricultural products, except where intern ational agreements and c onventions are involved. 
8. Regarding fishing policies, according to the au thorities, Singapore will continue to issue 
fishing licences for commercial fishing, as long as the private sector finds fishing to be economically 
viable.  The private sector is also encouraged to i nvest in aquaculture farming to produce fish for local 
consumers. 
(3) M
ANUFACTURING  
(i) Overview 
9. Manufacturing has grown rapidly in recent years, compared with the rest of the economy, and 
accounted for 24.1% of GDP in 2007.  The main indus tries, in terms of contribution to value added, 
are electronic products, in particular semic onductors;  chemicals and chemical products;  
pharmaceuticals, which have increased their share of  total value added from over 15% to nearly 22% 
in the review period;  precision engineering;  and transport engineering.  General manufacturing 
industries, notably food processing and printing, have continued to decline (Table IV.1).   Singapore WT/TPR/S/202/Rev.1 
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Table IV.1 
Employment, output and value-added manuf acturing by industry cluster, 2003 and 2007 
(Per cent and S$ billion) 
 Employment Total outputa Value addedb 
 2003 2007c 2003 2007c 2003 2007c 
Electronics 24.9 22.8 40.0 29.5 31.5 29.7 
Semiconductors 8.6 10.1 14.2 15.0 14.4 17.6 
Computer peripherals 3.8 3.8 6.7 4.2 5.1 3.9 
Data storage 6.3 3.8 11.0 3.9 5.1 2.8 
Infocomms & consumer 
electronics 3.4 2.5 6.2 5.3 3.9 3.6 
Other electronic modules 
& components 2.9 2.5 2.0 1.1 3.0 1.7 
Chemicals 6.6 5.7 25.9 33.7 13.9 11.8 
Petroleum 0.9 0.8 13.8 19.7 4.1 4.1 
Petrochemicals 1.3 1.1 8.2 10.9 4.1 3.6 
Specialty chemicals 2.7 2.5 2.8 2.4 4.0 3.0 
Others 1.7 1.2 1.0 0.7 1.7 1.1 
Biomedical manufacturing 2.5 2.9 7.7 10.0 18.3 24.4 
Pharmaceuticals 1.0 1.1 6.4 8.9 15.5 21.8 
Medical technology 1.4 1.8 1.2 1.1 2.9 2.6 
Precision engineering 25. 9 25.0 10.9 9. 8 15.0 13.0 
Machinery & systems 7.9 9.1 3.9 4.2 5.1 5.7 
Precision modules & 
components 18.0 16.0 7.1 5.6 10.0 7.3 
Transport engineering 15.7 22.6 6.6 9.9 9.9 11.9 
Marine & offshore engineering 10.6 16.4 3.3 6.4 4.4 6.2 
Aerospace 3.7 4.8 2.4 2.8 4.4 4.9 
Land 1.4 1.5 0.9 0.7 1.1 0.8 
General manufacturing 
industries 24.4 21.0 8.9 7.2 11.3 9.2 
Printing 5.2 4.4 1.7 1.2 3.4 2.5 
Food, beverages & 
tobacco 5.5 5.3 2.5 2.4 2.7 2.4 
Miscellaneous industries 13.7 11.3 4.7 3.6 5.2 4.3 
Total manufacturing 100.0 
(351,109 
persons) 100.0 
(398,085 
persons) 100.0 
(S$158.7 
billion) 100.0 
(S$246.5 
billion) 100.0 
(S$37.1 
billion) 100.0 
(S$55.0 
billion) 
a Total output:  includes manufacturing output  (total value of all commodities produced  (including by-products) and industrial 
services rendered during the year) and other operating income. 
b Value added:  total output less materials, utilities, fuel, tr ansportation charges, work give n out and other operating costs.  
c Preliminary. 
Note: Figures may not add up due to rounding. 
Source: Economic Development Board. 
10. Electronics, which directly accounted for 29.5% of manufacturing output in 2007, but 
indirectly for considerably more, was for a long time dominated by disk-drive manufacture, with 
foreign firms accounting for a large proportion of output.  Disk-drive manufacture has waned in 
recent years, however, as production has been relocated  offshore to lower cost locations.  There has 
been a long-term decline in Singapore's traditiona l electronics exports, such as consumer electronics, 
due to competition from lower cost countries, notab ly China, whose entry into the WTO has placed 
further pressure on higher cost countries like Singapor e.  Thus, high-value-added sectors, such as 
semiconductors, have increased their share in total electronics output, while production of data storage WT/TPR/S/202/Rev.1 Trade Policy Review 
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and computer peripherals have declined.  With  40 years of semiconductor production, Singapore 
generates around 10% of the world's foundry output .  Worldwide sales of semiconductors are 
increasing as they are now being used in a broader array of products. 
11. The chemicals industry, accounting for 33.7% of  total manufacturing output in 2007, has 
performed well during the review period, with hi gh oil prices boosting the value of output (although 
not the industry's share of value added as the high oil prices are passed through almost completely).  Petroleum and petrochemicals are the most importa nt industries, although production of specialty 
chemicals is also significant.  Singapore is one of the major petroleum refining centres of Asia, with total crude oil refining capacity of nearly 1.3 milli on barrels per day, representing 1.6% of the world 
total.  Rapid development in the biomedical scien ces industry, identified as a key growth engine for 
the economy, doubled its manufacturing output in value from S$12 billion to over S$24 billion between 2003 and 2007 and increased its share of ma nufacturing value added from 18.3% to 24.4% in 
the same period.  Pharmaceutical output has also benefited from substantial foreign investment, in 
particular from the EC.   
12. The diversity of other manufacturing industries is reflected in the shares in manufacturing 
value added of machinery and systems (5.7% in 2007), precision modules and components (7.3%) and 
transport engineering equipment (11.9%), which in cludes work on shipbuilding and overhaul, as well 
as aircraft maintenance;  oil rig manufacture and repa ir has also grown considerably in recent years, 
with Singapore home to the world's two biggest o il rig builders, Keppel and Sembcorp Marine (both 
GLCs).   
(ii) Key sectoral policies 
13. The 2003 Economic Review Committee report reaffi rmed the aim to sustain a manufacturing 
sector that contributes around 20% or more of GDP, and to move into higher-value-added activities in 
order to meet competition from low-cost locations .  The move was to be led by four "industry 
clusters":  electronics, chemicals, biomedical  sciences, and engineering (including transport 
engineering).  Singapore's evolution from a low-cost, labour-intensive to relatively higher cost and capital-intensive production base, has been aided by  a change in the industries and activities being 
targeted by Singapore's industrial policy.  A genera l goal is to deepen Singapore's technology base 
and strengthen knowledge-based manufacturing (a nd services) clusters with high-value-added 
activities.  Thus incentives, including tax incentives,  are provided to encourage innovation by firms 
operating in Singapore.  According to the author ities, Singapore's research community, including 
government and non-government agencies and compan ies, spent around S$54 billion or 2.3% of GDP 
in 2006 on research.   
14. For the electronics industry, in which Singa pore has already built up a strong base, the 
Committee recommended efforts to develop, inter alia,  new capabilities in semi conductor equipment, 
chemicals and materials, industrial design as well as  R&D in new technologies.  By the start of the 
review period, there had been a shrinkage of the i ndustry in terms of the number of establishments, as 
many labour-intensive operations relocated out of  Singapore, remaining firms upgraded and reduced 
employment, and new firms were more capital intensive.  The electronics cluster continues to attract the largest investment commitments in manufactur ing as the EDB actively promotes investments in 
firms to manufacture high value-added products, carry out R&D, create and manage intellectual 
property, and manage regional operations.  
15. The newest industry cluster is biomedical sc iences (BMS), comprising the pharmaceutical, 
medical technology, biotechnology, and healthcare service sectors.  The EDB and A*STAR (Agency for Science, Technology & Research) aim to tran sform Singapore into a biomedical hub, and as a 
location for biomedical companies manufacturing, R&D, clinical development and HQ activities.  The Singapore WT/TPR/S/202/Rev.1 
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main challenge is to turn Singapore into a centr e of biomedical innovation, moving upstream from 
drug manufacturing towards drug discovery and clin ical trials in collaboration with Singapore's 
healthcare services.  Three agencies work in close coordination to develop the BMS cluster:  the 
Biomedical Research Council (BMRC) of A*ST AR, which funds and supports public research 
initiatives;  the EDB's Biomedical Sciences Group (BMSG), which promotes private sector 
manufacturing and R&D activities, a nd EDB's Bio*One Capital, which co-invests in biomedical R&D 
or manufacturing projects in Singapore.  This approach involves various initiatives such as 
establishing the research infrastructure, supportin g the industry, providing financial capital support 
and strengthening manpower capabilities.   
(4) ENERGY AND WATER  
16. The Government launched the National Ener gy Policy Report (NEPR) in November 2007, 
outlining a national energy policy framework that balances the three policy objectives of economic 
competitiveness, energy security, and environmental sustainability.1  It also sets the target of 
increasing value-added in the energy industry from S$20 billion to S$34 billion in 2015, and to triple 
employment from 5,700 to 15,300.  The promotion of competitive markets remains paramount to  help keep energy affordable and ensure economic competitiveness.
2  Singapore has liberalized its 
electricity and gas markets, and is looking into enabling full contestability in  the electricity retail 
market.   
17. The electricity and piped gas industries were  traditionally vertically integrated and 
government-owned, managed by the Public Utilities Board (PUB) monopoly.  In 1995, the various 
undertakings were unbundled and corpor atized as Singapore Power (SP), the gas and electric utility. 
With the founding of SP (a GLC), the sector w as reorganized with the aim of separating the 
generation, transmission, and distri bution segments of the power sector.3  In 2001, the Government 
restructured the PUB into a comprehensive water au thority under the Ministry of the Environment and 
established a new statutory board, the Energy Market Authority (EMA), under the Ministry of Trade and Industry. The EMA is responsible for re gulating the electricity and gas industries. 
18. Both the electricity and gas sectors, which are not covered by Si ngapore's overarching 
competition law, are subject to competition provi sions under the Electricity and Gas Acts.  Under 
Part VII of the Electricity Act and Part IX of the Gas Act, agreements, decisions or concerted practices by legal persons, which have  as their object or effect the prevention, restriction or distortion 
of competition in the respective market in Singapore are prohibited.  These practices include:  price 
fixing;  limiting or controlling electricity genera tion/gas production, technical developments or 
investment in the respective industries;  the sharing of markets or sources of supply of electricity/gas;  
and the direct or indirect acquisition of shares in  or the assets of an electricity licensee or a gas 
licensee.  The EMA may, however, with the approval of the Minister of Trade and Industry, grant exemptions from these provisions, although there ar e no such exemptions currently.  Penalties for 
infringement of provisions under Part VII of the Elect ricity Act include:  modification or termination 
of the infringing agreement;  disposal of all or any of the relevant shares or assets within a specified 
period;  modification or ceasing of the infringin g conduct;  and a financial penalty not exceeding 
S$1million or 10% of the annual turnover of th e person's business in Singapore and a performance 
                                                     
 
1 National Energy Policy Report Press Release, 12 November 2007.  Viewed at:  http://app.mti.gov.sg/ 
default.asp?id=148&articleID=11441. 
2 Ministry for Trade and Industry, Energy for Growth:  National Energy Policy Report 2007, p. 33.  
Viewed at:  http://app.mti.gov.sg /data/pages/2546/doc/NEPR.pdf. 
3 As a result, in April 2001 two generation compan ies, Senoko Power and PowerSeraya, were split off 
from SP and sold to Temasek. WT/TPR/S/202/Rev.1 Trade Policy Review 
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bond, guarantee or other form of security.  A number of significant legislative amendments have been 
made during the review period with regard to  electricity, gas, and water (Table IV.2). 
Table IV.2 
Legislative amendments concerning el ectricity, gas, and water since 2004 
Sector Amendment law or 
regulations Date in force Key amendments/regulatory developments 
Electricity Electricity (Amendment) Act 
2006 1 May 2006 Enhance the regulatory provisions applicable to the electricity 
industry, with a focus on provisions relating to the transmission 
licensee and its agent 
This includes providing for the cont rol of the acquisition of equity 
interests/the business of an elect ricity transmission licensee, its 
agent, a designated entity that owns an electricity transmission 
network and a designated business trus t established in respect of an 
electricity transmission network 
Gas Gas (Amendment) Act 2007 First phase 
operational on 
11 June 2007 
Second Phase 
operational on 
14 February 2008 Enhance the existing regulatory provisions applicable to the gas 
industry, including: 
(i) extends the regulatory oversight of the Energy Market Authority 
of Singapore (the Authority) to cover the shipping of gas, the 
management and operation of onshore receiving facilities and 
liquefied natural gas terminals,  and the importation of natural 
gas and liquefied natural gas (LNG);  
(ii) enhances the powers of the Authority with regard to the 
provision of rights of access to a relevant facility; 
(iii) provides for arrangements for a llocation of gas in offshore gas 
pipelines; 
   (iv) provides for a gas networ k code by which designated gas 
transporters and relevant gas shippers must abide; 
(v) provides for the control of the acquisition of equity interests/the 
business of a gas transporter, a gas transport agent, a designated 
entity that owns a gas pipe line network and a designated 
business trust established in respect of a gas pipeline network 
Water Sewerage and Drainage 
(Composition of Offences) 
Regulations 1 June 2006 The Sewerage and Drainage  (Composition of Offences) Regulations 
was repealed and re-enacted to make four more offences under the 
Sewerage and Drainage Act compoundable 
 Public Utilities (Reservoirs 
and Catchment Areas) 
Regulations 2006  1 July 2006 The Public Utilities (Central Water Catchment Area and Catchment 
Area Parks) Regulations was repealed on 1 July 2006 and the Public 
Utilities (Reservoirs and Catchm ent Areas) Regulations 2006 was 
enacted to allow the Board to ma nage water-based activities in 
reservoirs 
 Public Utilities (Water 
Supply) (Amendment) 
Regulations 2005 1 March 2005 The Public Utilities (Water Supply) Regulations was amended to 
delete three gazetted fees:  meter re ading fee, fee for testing of water 
meter, and fee for retention of fire service meter 
Source:  Singapore authorities. 
(i) Electricity 
19. GLCs have dominated Singapore's electricity sector, although the restructuring and 
privatization process has begun.  Electricity ge neration is dominated by three companies, 
PowerSeraya Ltd., SenokoPower Ltd., and Tuas Po wer Ltd.  Temasek Holdings announced in 
June 2007 that the three companies, which account for about 80% of Singapore's generating capacity, 
will be divested either by end 2008 or early 200 9.  Temasek divested Tuas Power in 2008 to a 
Chinese power company.  It appears there will be no restrictions on foreign ownership of the plants. 
20. Retail-market opening is being implemented in  stages, depending on the amount of energy 
customers use.  The first phase of liberalization of the electricity market began in June 2003, when 
industrial customers were given the choice of pur chasing electricity from different suppliers.  By 
mid 2004, the 10,000 largest customers, representing a bout 75% of total demand, were able to buy Singapore WT/TPR/S/202/Rev.1 
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their electricity from the wholesale pool or from a range  of retailers where they are able to negotiate 
the contract terms.4  The remaining 25% consist largely of household consumers.  Currently, EMA is 
studying the feasibility of the electricity vending sy stem (EVS) to retail electricity to small consumers 
more efficiently (i.e. allow consumers to choose among different electricity supply packages offered 
by retailers;  the testing phase is expected to be completed by the second half of 2009).  SP will 
continue to operate a monopoly over the distribution and transmission system through SP PowerAsset, the local transmission and distributio n company formed in 2003.  Another subsidiary, 
SP Services, administers billing, meter reading and customer databases.  The liberalization aims to promote the efficient supply of competitively priced electricity and to open the retail market to full 
competition enabling consumers to buy electri city from the supplier of their choice. 
21. As regulator, EMA issues licences and develops measures to protect consumer interests (such 
as pricing, performance standards, reliability, an d safety of supply).  It implements the main 
legislation, the Electricity Act, 2001 and its 2006 amendment.  The National Electricity Market of Singapore (NEM), formed on 1 January 2003, and operated by the Energy Market Company (EMC) was established under the Electricity Act.  An independent Market Surveillance and Compliance 
Panel monitors the functioning of the market and repo rts at least once a year to the EMC Board on the 
state of competition in the market.  The NEM also has an independent dispute resolution counsellor.  
(ii) Gas 
22. Environmental concerns, as well as the desire to diversify Singapore' s energy sources away 
from oil, has led the Government to promote the use of natural gas.  As gas-fired power plants are 
amongst the most efficient and competitive power generation technology, market players have 
indicated, through their investme nts, that gas will remain a ma instay for Singapore's power 
generation.  Singapore imports all of  its natural gas, which is used  mainly for power generation and 
petrochemical production.  A government target to in crease the share of natural gas used in generating 
electricity to 60% by 2012 was reached in 2003, an d it is estimated that about 80% of the country's 
electricity demand currently comes from natural gas.   Singapore does not use nuclear power (and coal 
has not been used for power generation since the 1970s).   With no proven natural gas reserves, 
Singapore has sought to diversify sources of gas imports and reduce the risks related to supply 
disruptions via pipeline from Indonesia and Malaysia.
5  In September 2007, the Government 
announced Singapore's plans to build an LNG terminal to allow the import of LNG. PowerGas, a subsidiary of Singapore Power, was designated to build, own and operate the LNG terminal, which is 
targeted for completion in 2012.  Concurrently, Singapore LNG will be imported by a single entity, 
the "LNG aggregator", in order to achieve economies of scale.
6 
23. In line with the Government's long-term plan s to liberalize the gas sector, a state-owned 
company, PowerGas, previously part of the PUB, beca me a subsidiary of SP.  The Gas Act, passed in 
2001, and amended in 2007 to incorporate the policies set out in the Code, set the legal basis for the 
separation of the "contestable" sectors of import and retail from the gas transportation monopoly.  
Thus, in January 2002, PowerGas' "contestable" bus iness in gas import, production, and retailing was 
transferred to Gas Supply Pte Ltd and City Gas Pt e Ltd, formed as wholly owned subsidiaries of 
Temasek Holdings.  PowerGas remain s the only licensed gas transporte r and gas system operator in 
Singapore.  Further gas industry liberalization meas ures have included the approval of the principles 
                                                      
4 Other suppliers due to enter the market are:  Keppel Merlimau (a GLC), which planned to begin 
delivering electricity in late 2007;  and Island Power, which plans to do so in 2009. 
5 Natural gas supply disruptions in 2003 and 2004 led to power important outages. 
6 The EMA has called for a Request for Proposal (RFP) to select and appoint an LNG aggregator to 
procure LNG for Singapore by around the second quarter of 2008.  There is no restriction on foreign companies playing the role of the aggregator. WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 80 
 
 
of the Gas Network Code (agreed in October 2005) , which details the term s and conditions for gas 
transportation throughout the network on an equitable and non-discriminatory basis. 
(iii) Water 
24. Singapore's water supply previously came main ly from local freshwater sources, such as 
reservoirs and catchment areas, and from Johor in Ma laysia.  Singapore has since diversified its water 
sources to also include desalination and reclaimed water (NEWater, i.e. high grade water reclaimed from treated used water), which is supplied mainly for direct non-potable use.  Water is managed and 
supplied by PUB, the national water agency, wh ich was previously the monopoly provider of 
electricity, gas, and water.
7  Its mission is to ensure an efficient, adequate, and sustainable supply of 
water for Singapore.  To ensure affordability,  PUB seeks cost competitiveness in its operations 
through innovation and new technologies.  PUB is also seeking private sector participation in the 
water industry to keep the s upply of water cost-competitive.8  The Government has encouraged 
private sector participation by providing incen tives for water- and used-water research and 
development projects.   
25. Given the growing demand for water, and limited  sources of supply, the Government's goal is 
to increase efficiency of water consumption and enco urage water conservation.  Water conservation is 
encouraged, inter alia , through public education, recycling, mandatory installation of water saving 
devices, and legislation.  The authorities maintain th at the Government's policy is to price water to 
recover costs, as well as to reflect the scarcity of this precious resource and the incremental cost of additional water supplies.
9  The last revision of potable water prices took effect in 1997 over four 
annual increments.  For NEWater, wh ich is supplied for direct non-potable use, the pricing policy is to 
recover full costs.  The increase of NEWater capac ity has included two public-private-partnership 
contracts with the private sector and has yielded significant operational efficiencies and economies of scale.  With economies of scale, productivity gain s, and more competitive membrane technologies, 
PUB has been able to bring down the cost of NE Water production over the past few years.  Efforts 
have also been made to reduce water loss thro ugh leakage control, accurate metering, proper 
accounting of water usage, and stricter legislation.   
(5) S
ERVICES  
(i) Overview 
26. The services sector accounted for 65.9% of GDP in  2007 (Table I.2);  it also accounted for an 
estimated 67.7% of total employment.  Labour produc tivity in services is thus comparable to that for 
the overall economy.   Labour productivity in services grew by  0.2% in 2007, higher than for the 
                                                      
7 Following the decision to deregulate the electricity and gas sectors, the PUB Act 2001 reconstituted 
the PUB as the national water authority to manage wa ter supply and the sewerage and drainage functions 
(previously under the Ministry of the Environment) in an integrated manner.  PUB has the monopoly for the 
supply of piped water for human consumption. 
8 In recent  years, PUB has awarded a 20-year design-build-own-operate (DBOO) desalination plant of 
30mgd capacity to Hyflux;  a 20-year DBOO NEWater plant of 32 mgd capacity to Keppel Seghers;  and a 25-
year DBOO NEWater plant of 50 mgd capacity to Sembcorp Utilities. 
9 According to figures supplied by the authorities, in terms of water charges in 2007 for domestic 
consumption (20m3/month) and non-domestic consumption (100 m3/month), Singapore is situated roughly in the 
middle of a sample of 25 large cities in the world.  Singapore's domestic water charge is S$1.63/m3, compared 
with S$0.08 in Delhi and S$4.53 in Frankfurt, th e least and most expensive cities respectively.  For 
non-domestic consumption,  Singapore charges S$1.62/m3, compared with Sh anghai at S$0.29 and Frankfurt at 
S$4.24 per m3, which are at either end of the spectrum.  For both types of consumption, in Beijing, 
Kuala Lumpur, and Hong Kong water charges are lower.   Singapore WT/TPR/S/202/Rev.1 
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overall economy (-0.9%).  The main sectors in terms of share of GDP are:  wholesale and retail trade 
(16.2%), business services (12.5%), and financial services (12.4%).  Other services (including public 
administration and defence, education, health and social work) account for 9.8%, followed by transport and storage at 9.4%.  The fastest growi ng sectors have been wholesale and retail trade (with 
a 11.8% growth rate between 2003 and 2007), fi nancial services (9.6%), hotels and restaurants 
(6.7%), transport and storage (6.3%), and information and communications (5.8%). 
(ii) Commitments under the GATS and bilateral agreements 
27. Under the GATS, Singapore made commitments in:  business services;  communication 
services;  construction services;  financial services;  tourism and travel related services;  recreational, 
cultural and sporting services;  and transport services.  Since the previous Review of Singapore, in 
2004, there have been no changes to its comm itments or its MFN exemptions.  In the DDA 
negotiations, Singapore submitted a revised services offer in 2005
10, which includes an additional 
23 sub-sectors in:  business services;  distribution services;  education services;  environmental services;  health related and social services;  tourism and maritime transport services.  Singapore has also offered to remove one of its MFN exemptions re lating to financial services.  Singapore has stated 
that for a successful conclusion of the DDA, th ere needs to be a balanced outcome across all 
three market access pillars – agri culture, NAMA, and services, where there should be a "value-added 
outcome" that builds on the status quo and provides effective market access for all service suppliers.
11 
28. During the review period, Singapore has also continued to be active in negotiating and 
implementing PTAs that include services with vari ous trading partners.  Singapore has followed a 
positive-list approach with India, EFTA, New Zeal and, Jordan, and Japan, and a generally more 
ambitious negative-list approach in its preferential agreements with the United States, Korea, Panama, 
Australia, and the multi-party Trans-Pacific SEP (New  Zealand, Chile, Brunei, and Singapore).  There 
is, overall, much diversity in the commitments unde rtaken by Singapore in its various preferential 
agreements.  Examples of  commitments going  beyond the GATS schedule/offer include:  
- New Zealand (ANZSCEP):  based on a positive list and to be reviewed with the goal 
of free trade in services by 2010.  Pref erential treatment extended to non-parties 
engaged in "substantive business operations" in  either of the parties.  Singapore's 
commitments beyond GATS include professional, telecommunications financial, business, and transport services. 
- Japan (JSEPA):  based on a positive list;  pr eferential treatment also extended to non-
parties engaged in "substantive business ope rations" in either of the parties.  
Singapore's commitments beyond GATS incl ude professional, telecommunication, 
financial, business, and transport services. 
- EFTA (ESFTA):  based on a positive list a nd to be reviewed with the goal of 
eliminating substantially all remaining rest rictions in services covered at the end of 
ten years.  Singapore's commitments beyond GATS include professional, 
telecommunication, financial, business, and transport services. 
- Australia (SAFTA):  based on a negative list;  exceptions to market access and 
national treatment listed in annexes.  Pref erential treatment extended to non-parties 
engaged in "substantive business operations" in  either of the parties.  Singapore's 
                                                     
 
10 WTO document TN/S/O/SGP/Rev.1, 6 June 2005. 
11 WTO document TN/S/M/26, 13 July 2007, statement by Singapore, para. 32. WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 82 
 
 
commitments beyond GATS include professional, telecommunication, financial, 
business, and transport services. 
- United States (USSFTA):  based on a negative list, with exceptions to market access 
and national treatment listed in annexes.   Singapore's commitments beyond the GATS 
include professional, telecommunications, fi nancial, business, and transport services. 
(iii) Banking and other financial services  
(a) Overview 
29. The Monetary Authority of Singapore (MAS) serves as both the central bank and integrated 
financial supervisor.  In its latter role, MAS s upervises and regulates commercial banks, merchant 
banks, insurance companies, and other financial institutions (such as finance companies and capital 
market intermediaries.  The MAS administers, inter alia,  the Banking Act, the Finance Companies 
Act, the Securities & Futures Act, the Financial A dvisers Act, and the Insurance Act.  There have 
been three rounds of liberalization in banking (in 1999, 2001, and 2004), and foreign entrants have 
been allowed into the insurance market.  Th e MAS adopts a risk-based supervisory approach, 
allowing financial institutions that are better able to manage their risks to have greater business 
latitude, while supervising weaker ones more closely.   
30. Singapore continues to offer incentives to financia l institutions;  the main financial sector tax 
incentive is the Financial Sector Incentives Sche me (FSI), which offers financial institutions 
concessionary tax rates of 10% or 5% on income  from qualifying activities that are important to 
Singapore's financial sector growth.  Financial in stitutions (both foreign and national) may obtain 
these incentives as long as they are able to meet th e qualifying criteria, including that most activities 
are carried out in Singapore.  According to the authorities, MAS monitors the effectiveness of all 
incentives through a series of post-implementation revi ews, which are neither published nor publicly 
available.  
(b) Banking 
31. The Banking Act governs the licensing and operati on of commercial banks in Singapore.  The 
Act and its accompanying regulations prescribe th e minimum capital and liquidity requirements as 
well as prudential limits on credit and investments.  The Banking Act, together with other financial 
legislation, has undergone important amendments and updates during the review period (Table IV.3).  
The Banking Act was amended in 2007 to enhance the MAS's powers for dealing with distressed or 
insolvent banks.  It accords MAS a wider role in the resolution process and a broader range of 
resolution options.  In exercising these powers, MAS must take into consideration the interests of 
depositors and the stability of the financial system in Singapore.  To enhance protection for Singapore 
depositors, MAS also introduced an asset maintenan ce regime to help improve recovery of assets 
from a foreign bank branch in Singapore, should it fa il.  Prior to the amendments, the Banking Act set 
prudential limits on the amount of credit facilities extended by banks to a single  borrower or a group 
of related borrowers.  Such limits prevent the defa ult of any single borrower from seriously impacting 
the financial strength of a bank.  MAS has refined these limits to ensure that they remain relevant and 
are in line with international best practices.  In stead of limits based on credit facilities granted, MAS 
introduced a more comprehensive measure based on exposures, which include a bank's equity 
investment in, as well as other transactions with a counterparty.  
32. In 1999, Singapore embarked on a five-year pr ogramme to liberalize access by foreign banks 
to Singapore's domestic market, strengthen its ba nking system, and enhance Singapore's position as an 
international financial centre.  Since then, Singa pore has removed a 40% ceiling on foreign ownership Singapore WT/TPR/S/202/Rev.1 
 Page 83 
 
 
of domestic banks and 20% aggregate foreign share holding limit on finance companies.  The largest 
domestic bank, DBS Group, is a GLC.  As part of  the liberalization programme, six foreign banks 
were granted Qualifying Full Bank (QFB) privileges or full service licences.  These full-service banks 
have a greater quota of locations from which to  operate, compared with other foreign banks;   can 
relocate existing branches;  and can share a specific number of  ATMs among themselves over and 
above the number of locations permitted to them unde r the quota.  They can also provide electronic 
funds transfer, point-of-sale debit, and Central Provident Fund (Singapore's compulsory pension fund) related services.  Under the FTA with the United States, Singapore lifted its ban on new licences for 
full-service banks in June 2005, and for wholesale ba nks in January 2007.  U.S. Banks with QFB 
licences may operate at an unlimited number of  locations (since January 2006), while locally 
incorporated subsidiaries of U.S. full-service ba nks may apply for access to local ATM networks 
(since 30 June 2006).  In addition, branches of U.S.  full-service banks have begun doing so effectively 
as of January 2008.   
Table IV.3 
Amendments to financial services legislation, since 2004 
Legislation/Regulation Effective date Comments 
Banking Act (amendments) 31 March 2007 The amendments introduced measures to strengthen prudential 
safeguards, facilitate risk-based s upervision and provide banks with 
greater operational flexibility.  Among others, prudential limits on 
the amount of credit facilities that a bank may extend to a single borrower or a group of related borro wers were revised to include a 
bank's equity investment in, as we ll as other transactions with a 
counterparty.  
Deposit Insurance Act 18 October 2005 The objectives of th e scheme are to protect small depositors and to 
dispel any mistaken public perception of a government guarantee on 
deposits.  All full banks and finance companies in Singapore with access to retail deposits are required to be members of the scheme.  
Insurance (Actuaries) Regulations 2004 2004 The amendment helps to specify the persons who may be actuaries 
and clarifies the scope of work required of actuaries. 
Insurance (Corporate Governance) 
Regulations 2005 2005 The amendment enhances corporate governance requirements of 
financial institutions and is app licable to significant direct life 
insurers (with total fund asset size of at least S$5 billion). 
Securities and Futures Act (SFA) 1 July 2005 The prohib ition against licensees granting unsecured credit facilities 
to their directors, officers, employ ees or representatives for trading 
purposes was lifted as there are existing safeguards on loans to directors, officers and employees. 
The grounds under which MAS may re fuse an application for the 
grant or renewal of a licence, or  revoke a licence, was expanded to 
include cases where information or documents furnished by the 
applicant or licensee is false or misleading.  
 15 October 2005 The provisions on offers of investments are amended to abolish the 
concept of "offer to  the public" and to introduce two new "safe 
harbours" which allow private placements and small offers to be made without a prospectus.  Th ese safe harbours provide legal 
certainty for capital raising by small and medium enterprises and 
help them raise funds more effi ciently, without incurring unnecessary 
regulatory costs.  
The prohibition on issue of pre-deal research reports by persons 
connected to the issuer, issue manager or underwriter is lifted in the 
case where the offer is made conc urrently in Singapore and another 
jurisdiction where pre-deal research  reports are permitted. To reduce 
the risk of information in pre-deal  research reports from leaking to 
the retail public, the report is allowed to be issued and circulated to 
only institutional investors. The pe rson issuing the report is also 
required to comply with certain safeguards. 
Table IV.3 (cont'd) WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 84 
 
 
Legislation/Regulation Effective date Comments 
 28 February 2008 The amendment brought commodity futures contracts regulated 
under the Commodities Trading Act (C TA) into the regulatory ambit 
of the SFA.  Prior to the amendm ents, commodity futures trading 
was regulated under the CTA, while financial futures trading was 
regulated under the SFA and the Financial Advisers Act (FAA).  
With the amendment, commodity futu res will be subject to the same 
regulatory framework as other types of futures contracts already regulated under the SFA and FAA. 
Securities and Futures (Offers of 
Investments) (Share s and Debentures) 
Regulations 2005 15 October 2005 The Regulations introduce new disclosure requirements to cater to 
offers of structured notes. These new streamlined disclosure 
requirements, which take into account  the nature of structured notes 
as well as the unique investment characteristics of such products, 
ensure that proper risk and pr oduct disclosures will be made 
available to investors. 
Financial Advisers Act (FAA) 1 July 2005 Prior to the am endment, financial advisers were required to have a 
reasonable basis for their recommendations, taking into account the 
investment objectives, financial situ ation and particular needs of each 
client ("reasonable basis requirement").  The amendment allows 
MAS to exclude generally circulated  advice that is not targeted at 
any specific person (e.g. marketing brochures, advice given at 
seminars and workshops, etc.) from the reasonable basis requirement. 
The FAA provides entities that pose minimal risks to MAS' 
regulatory objectives (e.g. entities that serving only accredited 
investors) exemption from licensing and business conduct 
requirements. Limitations are imposed on the scope of financial 
advisory services such entitie s can undertake. The amendment 
provides explicit powers for MAS to  inspect such exempt entities to 
ensure that they keep to th e limitations imposed on them.  
MAS have the power to issue a Prohibition Order against undesirable 
persons to bar them from providing financial advisory services in 
Singapore.  The amendment expanded the circumstances under 
which MAS may issue a Prohibiti on Order to instances where a 
person has been convicted of an offence in respect of financial 
advisory activities in a foreign country. 
 28 February 2008 The amendment brought commodity futures contracts regulated 
under the CTA into the regulatory ambit of the FAA.  Prior to the 
amendments, commodity futures trading was regulated under the 
CTA, while financial futures trading was regulated under the SFA 
and the FAA.  With the amendm ent, commodity futures will be 
subject to the same regulatory framework as other types of futures contracts already regulated under the SFA and FAA. 
The Securities and Futures (Licensing 
and Conduct of Business) Regulations 1 July 2005 The amendment was to aid industry players in their compliance with 
our laws and regulations. 
The Securities and Futures (Prescribed 
Futures Contracts) Regulations 2005 1 July 2005 The amendment prescribes a dditional classes of commodity futures 
contracts as futures contracts under the SFA. 
The Securities and Futures (Financial 
and Margin Requirements for Holders of 
Capital Markets Services Licences) 
Regulations 1 July 2005 Regulations were amended to require licence holders to submit 
quarterly and annual financial regulat ory returns electronically to the 
MAS through a new financial regulatory returns system that was launched in July 2005.  Separate ly, the Regulations were also 
amended in July 2003 and July 2005 to change the method for 
computing counterparty risk requirements in respect of securities 
financing. 
 28 February 2008 Regulations were amended to facilitate the admission of financial 
futures brokers, in view of the le gislative transfer of regulatory 
oversight of commodity futures tr ading from the CTA to the SFA. 
Table IV.3 (cont'd) Singapore WT/TPR/S/202/Rev.1 
 Page 85 
 
 
Legislation/Regulation Effective date Comments 
Financial Advisers Regulations 2005 Exempts Financial Advise rs ("FA") and their representatives from 
certain business conduct requirements in the FAA when they provide 
financial advisory services to related corporations, connected 
persons, institutional, accredited and expert investors.  In line with 
the move toward a risk-based a nd disclosure-based regime, the 
regulations require FAs and their re presentatives to disclose to the 
accredited or expert investor any exemptions that apply;  and 
Exempts FAs and their representativ es from certain business conduct 
requirements when providing financia l advisory services to overseas 
investors. 
Financial Advisers (Prescribed 
Investment Products and Exemption) Regulations 2005 1 December 2005 The amendment prescribes structured deposits as an investment 
product under the FAA. 
Business Trusts Act  January 2005 The Act regulates  the governance of business enterprises set up as 
trusts rather than corporations.  The Securities and Futures Act (SFA) 
was also amended to regulate the offe r of units in a BT, similar to the 
regulation of offers of shares. 
Trust Companies Act  February 2006 Under the new Tr ust Companies Act, which is administered by 
MAS, licensing for service providers has become mandatory. 
Insurance (Valuation and Capital) Regulations 2004 and subsequent amendments 2005 and 2007 23 August 2004 These regulations set out the financial requirements that registered 
insurers have to adhere in the ri sk-based capital framework.  They 
also stipulate the manner of how th e different financial components, 
addressed in the financial requirements are computed. 
Insurance (Accounts and Statements) 
Regulations 2004 and subsequent amendments 2005 and 2007 23 August 2004 These regulations stipulate th e format of the statutory returns that 
insurers are required to submit and the frequency of the submissions.   
Insurance (General Provisions) 
(Amendment) Regulations 2004 and 2007 23 August 2004 The regulations set out th e requirements regarding the surrender 
value of life insuran ce policies. They also stipulate certain 
applicability of the Insu rance (Valuation and Capital) Regulations on 
insurance business of insurers who has ceased to be registered but 
still carries policy liabilities.  
Insurance (Finan cial Guarantee 
Insurance) (Amendment) Regulations 
2004 1 January 2005 These regulations set out th e contingency reserves calculation for 
insurers registered as financial gua rantee insurers, as well as their 
fund solvency and capital adequacy requirements. 
Insurance (Lloyd’s Asia Scheme) 
(Amendment) Regulations 2004 1 January 2005 These regulations amend the valuation methodology of the assets and 
liabilities of Lloyd’s service compan ies in Singapore.  They also 
amend the requirements for the statutory submissions. 
Insurance (General Provisions and 
Exemptions for Captive Insurers) 
Regulations 2004 and subsequent amendment in 2006 1 January 2005 The regulations set out the ex emptions given to captive insurers with 
regards to relevant requirements in the Insurance (Accounts and 
Statements) Regulations 2004 and In surance (Valuation and Capital) 
Regulations 2004.  The regulations  also stipulate the requirements 
that the captive insurers  are subjected to, in-lieu of the exemptions. 
Insurance (Corporate Governance) 
Regulations 2005 8 September 2005 These regulations set out the corporate governance requirements of 
large direct life insurers who ar e incorporated in Singapore.  
Insurance (Appeals) Regulations 2005 9 December 2005 These re gulations set out the appeal  channel and process which 
insurers can undertake.  
Insurance (Actuaries) (Amendment) 
Regulations 2005 31 December 2005 The regulations amend th e responsibilities of the actuary approved 
by MAS for the purpose of investigations of the financial conditions 
of the direct life insurers.  
Insurance (General Provisions and 
Exemptions for Marine Mutual Insurers) 
Regulations 2007  1 January 2008 The regulations set out the exemptions given to marine mutual 
insurers with regards to relevant  requirements in the Insurance 
(Accounts and Statements) Regulations 2004 and Insurance (Valuation and Capital) Regulati ons 2004.  The regulations also 
stipulate the requirements that the captive insurers are subjected to, 
in-lieu of the exemptions. 
These regulations replaced the In surance (General Provisions and 
Exemptions for Professional and Indemnity Club) Regulations 2004. 
The latter was repealed on 1 January 2008. 
Source:  Singapore authorities. WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 86 
 
 
33. Commercial banks currently account for over 85%  of total financial sector assets.  In 
March 2007, the commercial banking sy stem consisted of 5 local banks (owned by 3 local banking 
groups) and 103 foreign banks;  24 of the foreign banks are designated by the MAS as full banks 
(including 6 qualifying full banks or QFBs), 36 as wholesale banks, and 43 as offshore banks 
(Table IV.4).  These designations reflect different privileges and restrictions imposed by the MAS as 
licensing conditions (Box IV.2).   
Table IV.4 
Structure and performance ratios  of the banking sector, 2003-07 
 2003 2004 2005 2006 2007 
Structure (as at end-March)      
Banks 117 115 111 108 108 
Locala 5 5 5 5 5 
Foreign 112 110 106 103 103 
Full banks 22 23 24 24 24 
Wholesale banksb 31 37 35 34 36 
Offshore banks 59 50 47 45 43 
Finance companies 5 3 3 3 3 
Merchant banks 53 51 48 48 49 
Representative offices 51 49 45 42 43 
Banks 51 49 45 42 43 
Merchant banks 0 0 0 0 0 
Performance of local banks      
Non-performing loans (NPLs) as % of 
bank and non-bank loans 5.4 4.1 3.0 2.2 1.5 
Non-bank NPLs as % of non-bank loans 6.7 5.0 3.8 2.8 1.8c 
Capital adequacy ratio 17.9 16.2 15.8 15.4 14.6d 
a All local banks are full banks. 
b Previously known as restricted banks. 
c As at September 2007. d As a simple average of quarterly CAR for the 1
st three quarters. 
Source: MAS (2007), Annual Report 2006/07.  Viewed at:  h ttp://www.mas.gov.sg/resource/publications/annual_reports/ 
MAS_AR20062007.pdf. 
34. Full banks are granted the widest range of permissible banking activities, while wholesale and 
offshore can not carry out Singapore dollar domestic  retail operations.  Offshore banks cannot accept 
interest-bearing deposits from resident non-bank cust omers and can extend them credit facilities up to 
S$500 million.   Except in retail banking, Singapore laws  do not distinguish operationally between 
foreign and domestic banks.  Fi nancial institutions may also operate in Singapore as finance 
companies and merchant banks, which need approval from the MAS.12  The former are regulated by, 
and licensed under, the Finance Companies Act.  The Government also intends to upgrade all offshore 
banks to wholesale banking status over time.  The MAS has issued 33 new wholesale bank licences 
since 200113, as part of the liberalization programme.   
35. While the domestic banks dominate the retail and small business markets, they are facing 
increasing competition from the foreign banks that have been given QFB licences.  The MAS considers it essential for systemic stability to have  strong Singaporean banks to retain a significant 
portion of the domestic deposit base and payments system.  However it sees competition from foreign 
banks – under its phased liberalization programme – as the best way to foster the development of 
                                                     
 
12 The approval is equivalent to a licence. 
13 From January 2003 to December 2007, 17  wholesale bank licences were issued. Singapore WT/TPR/S/202/Rev.1 
 Page 87 
 
 
strong and large domestic banks, which can play a stab ilizing role in the event of a serious financial 
crisis.  Besides lifting the formal ceilings on fore ign ownership of local banks, MAS has encouraged 
local banks to explore strategic partnerships w ith sound and well-managed foreign banks that can 
bring specialized skills, new technologies or business strategies, as long as the partnership does not 
result in the foreign partner gaining control of the bank .  The MAS does not encourage foreign 
investors from taking control of local banks;  the ma jority of board members of local banks must be 
Singapore citizens and permanent residents to ensure th at control rest with individuals or groups who 
would act in the "national interest".14  MAS approval is required for an y institution, local or foreign, 
to accumulate substantial numbers of shares in local  banks, at the thresholds  of 5%, 12%, and 20%.  
This is to ensure that substantial shareholders of locally incorporated banks remain fit and proper, and 
act in accordance with the long-term interest of the Singapore economy.  Fore ign penetration of the 
Singapore banking system is relatively high with foreign banks holding an estimated 40% of non-
bank deposits  and nearly half of loans to residents.  Th e Government has stated that it wants local 
banks' share of total resident deposits to remain above 50%.15   
Box IV.2:  Banking system overview 
Commercial banks in Singapore may undertake universal banking, which besides deposit taking, cheque 
services and lending, includes any other business regulated or authorized by MAS, including financial 
advisory services, insurance broking and capital market services.  Commercial banks operate as full banks, 
wholesale banks or offshore banks. 
Full banks may provide the whole range of banking business approved under the Banking Act.  Six of the 
foreign banks operating in Singapore have been awarded Qualifying Full Bank (QFB) privileges and may 
operate a total of 25 locations.  They may also share a specific number of ATMs among themselves (which 
do not count as locations), and relocate their sub-branches.  QFB banks may negotiate with local banks on a 
commercial basis to let their credit-card holders obtain cash advances through the local bank's ATM 
networks. 
Wholesale banks may engage in the same range of banking business as full banks, except they may not 
operate savings accounts denominated in Singapore dolla rs or accept Singapore dollar fixed deposits of less 
than S$250,000.  Currently, all wholesale banks in Singapore operate as branches of foreign banks. 
Offshore banks can engage in the same activities as full and wholesale banks for businesses transacted 
through their Asian Currency Units (ACUs), which the banks use to book all their foreign currency 
transactions conducted in the Asian Dollar Market (ADM).  The scope of business transacted in offshore 
banks' domestic banking units (DBU) has slightly more restrictions on dealings with residents compared 
with wholesale banks.   
Financial institutions may also operate as merchant banks, as approved under the Monetary Authority of 
Singapore Act, and their operations are governed by the Merchant Bank Directives.  The typical activities of merchant banks include corporate finance, underwriting of share and bond issues, mergers and 
acquisitions, portfolio investment management, management consultancy, and other fee-based activities.   
Finance companies focus on providing small-scale financing, including instalment credit for motor vehicles 
and consumer durables, and mortgage loans for housing but may not offer deposit accounts.  They are licensed under and governed by the Finance Companie s Act.  There are three finance companies in 
Singapore. 
Source:   MAS online information.  Viewed at:  http://www.mas.gov.sg/fin_development/Types_and_
 Number_of_Institutions.html.
 
                                                      
14 The term "national interest" does not appear to be defined.  During the discussion of the revision of 
ownership rules for local banks during the 2nd reading of the Banking (Amendment) Bill in 2001, the MAS 
chairman stressed the need "to ensure that control rest s with individuals or groups whose interests are aligned 
with the long-term interests of the Singapore economy and the national interest".  Viewed 
at:  http://www.mas.gov.sg/news_room/statement s/2001/BANKING__AMENDMENT__BILL_2nd_Reading_ 
Speech_by_DPM_Lee__16_May_2001.html. 
15 According to the EIU (2007b) , p. 12. WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 88 
 
 
36. During the review period, there has been ample liquidity in the banking system and banks 
have strengthened their risk management system s.  The aggregate of local banks' total capital 
adequacy ratio (CAR) has remained above the re gulatory minimum requirement of 10%, averaging 
14.6% in 2007.  Loan growth has contributed to th e decline in non-performing loan (NPL) ratios over 
the past few years, and absolute levels of NPLs  have come down against the backdrop of a benign 
environment and improved risk management.  The aggregate NPL ratio has also been declining 
throughout the review period, reaching a five-year low of 1.8% at end-Q3 2007.16 
37. One of the MAS's key functions is the risk -based supervision of financial institutions 
including licensed banks and merc hant banks, finance companies, insurance companies and brokers, 
capital market intermediaries, and financial advi sers.  The risk-based supervision of financial 
institutions is inter-related with the other oversi ght functions that MAS performs to achieve its 
supervisory objectives.  These include authorizing financial institutions to offer financial services, 
setting regulatory rules and standa rds, and taking actions against institutions and individuals for 
regulatory breaches.  MAS also undertakes surveillance of the financial system to identify emerging 
trends and potential vulnerabilities in order to guide and support its regulatory activities.  The aim of 
MAS risk-based supervision is to foster the safe ty and soundness of financia l institutions and promote 
transparency and fair-dealing by institutions in re lation to their customers and counterparties.  These 
two objectives contribute towards MAS over-arching obj ective of a stable financial system.  The 
MAS has published a monograph on this subject to  provide greater clarity on its risk-based 
supervision of financial institutions.17  Using a risk assessment system, the Common Risk Assessment 
Framework and Techniques (CRAFT), supervisors assi gn a risk rating on the overall risk of an 
institution by assessing the inherent risks of its bus iness activities, its ability to manage and control 
these risks, effectiveness of its oversight and gove rnance structure, and adequacy of its financial 
resources to absorb losses and remain solvent.   
38. The legal requirements to establish a bank in Si ngapore remain, in the main, unchanged since 
the last Review.18  Domestic banks, which are all locally incorporated, must meet a minimum paid-up 
capital requirement of S$1.5 billion and satisfy BIS capital adequacy requirements.  For foreign banks 
to apply for a licence to operate in Singapore,  the head office must have minimum capital of 
S$200 million and they must satisfy Bank for In ternational Settlements (BIS) capital adequacy 
requirements.  MAS implemented Basel II for locally incorporated banks on 1 January 2008.19  All the 
approaches to credit, market, and operational risks under Pillar 1 have been ma de available to banks 
in Singapore.  MAS does not require banks to a dopt specific approaches from among those available, 
but expects each bank to adopt the approaches commensurate with its risk profile.   
                                                      
16 Monetary Authority of Singapore (2007b). 
17 Monetary Authority of Singapore (2007d).  An impact and risk model is at the heart of the 
framework.  Each institution will be assessed and assigned  two ratings.  The impact rating reflects the relative 
importance of an institution within the relevant financial services sector, and is based on an assessment of the 
potential impact that it might have on Singapore's financial system, economy, and reputation in the event of a 
significant mishap.  
18 The evaluation of new licences is based on, inter alia , the applicant's track record, international 
standing, its reputation, and financial soundness and that of its parent institution or major shareholders;  the 
home country's supervisory strength and the willingnes s and ability of the home supervisory authority to 
cooperate with MAS;  whether the applicant has a well-developed strategy in banking or financial services, supported by business plans;  and whether the applic ant has risk-management syst ems and processes in place, 
commensurate with the size and complex ity of the business.  The refusal of the MAS to grant a licence may be 
appealed to the Minister. 
19 See BIS online information.  Viewed at:  http://www.bis.org/publ/bcbsca.htm. Singapore WT/TPR/S/202/Rev.1 
 Page 89 
 
 
(c) Insurance  
39. The insurance sector continues to be regulat ed by the Insurance Act, 2002 (Cap. 142) and 
accompanying regulations.  The MAS is the regulatory authority20:  to carry out insurance business in 
Singapore registration with the MAS is required.  In  registering an insurer to write either life or 
general insurance business, the Authority will specify  the registration as being for direct insurance, 
reinsurance, or captive insurance.21  Insurers registered to write both life and general insurance are 
known as composite insurers.  A direct insurer can undertake both direct and reinsurance business;  
however, a re-insurer is confined to only reinsura nce business.  Insurers in Singapore are subject to 
prudential and market-conduct standards.  The author ities note that there is no difference in standards 
applied to domestic or foreign-owned companies, whet her they are locally incorporated or branches of 
foreign incorporated companies.   
40. A risk-based supervision frame work replaced the audit-based inspection framework in 2002, 
to emphasize prevention.  In November 2003, the Insurance Act was amended to provide the legal 
basis for a risk-based capital framework, and a c onsultation paper on the proposed framework was 
issued.  In August 2004, the MAS implemented a ne w system designed to move the insurance sector 
to a risk-based capital framework.  The formula to calculate capital  requirements takes into account 
both insurance risks undertaken by an insurer and risks arising from the way it invests the premiums 
collected.  Under the new framework, the MAS may fu rther adjust capital requirements to reflect risks 
that cannot necessarily be quantified, such as opera tional risks.  Requirements have been aligned as 
far as possible across financial institu tions to minimize capital arbitrage.22  Insurance companies had 
until 1 January 2005 to comply with the new requirements.  There is no  difference in the requirements 
for domestic or foreign-owned companies except that offshore insurance business or reinsurance 
branches are exempted from the risk-based capital  framework;  this is in recognition of the 
international nature of reinsurance business.  
41. The Financial Industry Disputes Resolution Cent re (FIDReC) is an independent one-stop 
service centre where consumers may seek help to reso lve their disputes with financial institutions.  In 
August 2005, FIDReC took over the duties of the In surance Dispute Resolution Organisation as well 
as the Consumer Mediation Unit of the Association of Banks in Singapore.  The dispute resolution 
process comprises a mediation stage followed by th e adjudication stage, where necessary.  The 
consumer may reject the adjudicator's decision, a nd pursue other resolution options, such as filing a 
lawsuit.  The financial institution (for example an insurance company), however, is bound by the 
adjudicator's decision should the consumer choose to accept it. 
42. Under the Insurance Regulations 2005, no pers on is allowed to obtain effective control 
(defined as owning 20% or more of issued sh ares or voting power) or acquire a substantial 
shareholding (5% or more of issued shares or voting power) of any locally incorporated insurer 
without MAS approval.  The Act also requires insu rers to seek MAS approval for appointments of 
                                                      
20 The Insurance Commissioner's Department of the MA S licences insurance companies.  Insurers are 
required to maintain two forms of solvency margins:  a surplus of assets over liabilities applies to both the 
company concerned and its individual funds. 
21 A captive insurer is an insurer set up by a corporation principally to protect in-house risks.  Captive 
insurers write the direct insurance and reinsurance risks of related companies. 
22 Besides refining the treatment of liability risk,  MA S also looked  at capital charges for asset risks to 
help to level the playing field between banks and insurance companies, and minimize opportunities for capital arbitrage.  The new capital requirements should also provide an early indicator of financial weaknesses, and thus 
facilitate progressive intervention by regulators (MAS on line information.  Viewed at:  http://www.mas.gov.sg/ 
news_room/statements/2002/Keynote_Address_by_DPM_Lee_Hsien_Loong_at_the_International_Insurance_ Society_s_38th_Annual_Seminar__15_July_2002.html). WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 90 
 
 
both principal officers of all insurers and the dir ectors of locally incorpor ated insurers (captive 
insurers are exempt). 
43. Despite substantial growth in the past few y ears, the insurance sector accounted for only 
about 6% of total financial sector assets in 2007.  At end 2007, there were 153 insurance companies 
operating in Singapore:  61 were direct insurers, 32 re-insurers, and 60 captive insurers.  Total assets 
of the insurance industry amounted to S$113.1 billion at e nd 2006;  American In ternational Assurance 
(US), Great Eastern Life, NTUC Income and Prud ential Assurance Singapore (UK) together account 
for approximately 80% of life insurance assets.23 
44. As was the case at the time of the previous Re view, the award of a direct insurance licence by 
the MAS takes into account a number of factors including reputation and track record but the 
"commitment to contribute to Singapore's de velopment as a regional insurance hub and an 
international financial centre" is no longer consid ered relevant.  According to the authorities, MAS 
policy on admission to the reinsurance market is un changed.  The minimum capital requirements of 
S$25 million for direct insurers and re-insurers, also noted in the previous Review, have not changed.  
Domestic-owned and foreign-owned insurers have the same requireme nts;  for Singapore branches of 
foreign incorporated insurers, the paid-up capital of the legal entity is used for the assessment on 
whether the requirement is fulfilled.  According to the authorities, branches do not have to set aside a 
separate amount of capital.  Regarding the pers onal tax treatment of contributions to life 
insurance/pension plans, there is no difference in tr eatment for domestic or foreign-owned companies.   
(d) Asset management 
45. Singapore has evolved into a major asset manage ment centre over the past few years, in 
response to the Government's efforts to develop the industry24;  it currently hosts more than 500 asset 
management firms.  Funds managed out of Si ngapore totalled S$891 billion at end 2006, up 24% 
from the year before:  43% were sourced from with in the Asia-Pacific region, 24% from Europe, and 
11% from the United States.  At end 2006, 26 asset -management companies managed more than 
S$5 billion each in discretionary assets.  These acco unted collectively for 44% of total assets under 
management.  The Government and the MA S are encouraging the development of a 
fund-management industry to attract well-recognize d firms to Singapore.  Approved fund managers 
(AFMs) are accorded a concessionary corporate tax rate of 10% on income from fees and commissions derived from any funds managed, investment advisory services provided or loans of securities arranged by AFMs in Singapore.
25 
(iv) Communications 
(a) Telecommunications  
46. Following the introduction of full competition in the telecommunications market in 
April 2000, two years earlier than planned, any foreign or domestic company can provide facilities-based (fixed-line or mobile) or service s-based (local, international and call-back) 
telecommunication services in Singapore.  With the liberalization of the sector, the former monopoly 
telecom service provider, Singapore Telecommuni cations Limited or SingTel (a GLC), faces 
                                                     
 
23 MAS Insurance Statistics, 2006.  Viewed at:  http://www.mas.gov.sg/data_room/insurance_stat/ 
2006/Insurance_Statistics_2006.html. 
24 MAS (2007a). 
25 Specific requirements for obtaining AFM status include that the activities pursued should be 
important to Singapore's financial-sector development objectives.  The AFM scheme merged into the Financial Sector Investment Scheme, which entered into effect in February 2003. Singapore WT/TPR/S/202/Rev.1 
 Page 91 
 
 
competition in all market segments, including fixed-line, mobile, and paging services.  Its main 
mobile competitors are MobileOne (M1) and Star Hub (GLCs).  In March 2005, Singapore's telecom 
regulator, the Infocomm Development Authority (IDA) , finalized its first triennial review of the 
Telecom Competition Code26, which aims to enhance market transparency.  SingTel has implemented 
most provisions of the Code, including making public its prices for interconnection services.   
47. As a result of liberalization, the number of telecommunications service providers has 
increased significantly:  922 telecoms licences have  been awarded by the IDA (February 2008), of 
which 43 facilities-based operators (FBOs) an d 879 service-based operators (SBOs).  The 
liberalization has also led to the entry of many ne w players offering Internet, paging, cellular, trunked 
radio, value-added network, sat ellite uplink/downlink for broadcasting purposes, VSAT, and mobile 
data services.  There are a number of Internet service providers (ISPs), including SingT el (through 
SingNet), Pacific Internet and StarHub Internet .  Currently, only SingTel and Starhub provide 
fixed-line services;  both operators, through their m obile subsidiaries, as well as MobileOne (M1)27, 
compete in the mobile market.  Alongside these th ree mobile network operators, SBO licensee PLDT 
(SG) offers prepaid cards for IDD calls and prem ium services using a mobile virtual network operator 
(MVNO) business model.  SingTel continues to dom inate the fixed-line market with near 100% 
market share28, while the mobile market share is fairly ev enly distributed amongst the three operators.  
In addition to SingTel, Temasek holds nearly half of StarHub's equity indirectly, through ST Telemedia.
29    
48. Almost every home has a fixed telephone line, while mobile phone penetration is currently 
around 122%, up from 51% in 2000, with new demand in recent years being driven by upgrades.  
Singapore has one of the highest rates of Internet access in the world;  out of a total population of 
4.59 million in 2007, Internet subscriptions were above 4.32 million at end 2007, of which 75% are 
broadband subscriptions.  Growth in subscribers to  Internet access, especially broadband services, has 
been driven by the entry of new market particip ants, which have lowered access fees and intensified 
competition between service providers.  In 1998, Singapore put in place the world's first nationwide 
broadband network, SingaporeONE, to set up a wi reless and high-speed network infrastructure, 
enabling services to be accessible to homes, schools, and businesses.  In March 2006, Singapore announced plans to deploy a Next Generati on National Broadband Netw ork (Next Gen NBN), 
capable of offering ultra-high speeds (of 1 Gbps or  more) and providing a ffordable broadband for 
95% of all homes and businesses by 2012. 
49. Under the Telecommunications Act 1999, the IDA, under the Ministry of Information, 
Communications and the Arts (MICA, previously the Ministry of Communications and Information 
Technology), licences all telecommunications service providers.  Two types of licences are granted:  for facilities-based operations (FBO), defined as ope rations that require telecommunications systems 
                                                     
 
26 To help foster competition in a liberalized telecommunication market, the IDA established the Code 
of Practice for Competition in the Provision of Telecommunication Service (Telecom Competition Code), which 
took effect in September 2000. 
27 As of 31 January 2008, Keppel Telecoms Pte Ltd (19.05%) and SPH Multimedia Private 
Limited (13.92%), together with SunShare Investments Ltd (29.69%) jointly own 62.66% of M1;  the rest is 
owned by institutional and public investors. 
28 At end-March 2007, SingTel had 96% market share of the fixed-line market and 1.82 million 
mobile-phone subscribers.  Since 2003 , the IDA has required SingTel to prov ide local leased ci rcuits (LLCs) at 
wholesale prices.  The LLCs connecting its  exchanges and end-user sites have also been available at cost since 
then.  As of March 2007, SingTel is majority-owned by Temasek Holdings (56.1%);  the rest is owned by the 
public. 
29 The main shareholders of StarHub are:  ST Telemedia (owned by Singapore Technologies, in turn 
owned by Temasek) with 49.23%; NTT Communications 10.1%;  and MediaCorp Pte Ltd 7.53%. WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 92 
 
 
to be installed beyond a single set of premises in single occupation, and for services-based operations 
(SBO), defined as operators who lease telecommun ications network elements such as transmission 
capacity, switching services, etc., from FBOs to provid e services to third parties or for resale.  There 
are no limits on the number of licences that may be granted, except for reasons of technical 
constraints, such as spectrum availability.30 
50. To facilitate access by consumers and allow th em to shift from one service provider to 
another, all licensees are obliged to ensure interconnection, inter operability, and access with other 
telecommunications operators.  IDA has determined the cost-based rates for interconnection charges 
for a comprehensive list of interconnection services th at the dominant licensee, SingTel, must offer to 
other licensees.  Under the Telecom Competition Code, recognizing that dominant licensees may not 
have sufficient incentive to enter voluntarily into  interconnection agreements, the dominant licensee is 
obliged to offer competing licensees three options for interconnection: an IDA-approved reference 
interconnection offer (RIO) provided by the dom inant supplier;  any existing interconnection 
agreement between the dominant supplier and any ot her licensee;  and an individualized agreement 
between the dominant and requesting licensee.   
51. In November 2005, IDA approved revisions to  SingTel's Reference Interconnection Offer 
(RIO), which sets out IDA-approved prices, terms and conditions for interconnection, and access to 
SingTel's network.  The RIO provides the telecoms industry with a standard agreement to use when it 
wants to lease or connect to SingTel's network in  order to provide its own services to the Singapore 
market.  IDA's review of the RIO follows the c onclusion of its first Telecoms Competition Code 
triennial review;  Code revisions entered in to effect on 4 March 2005.  This was IDA's 
first comprehensive review of the RIO since it w as made available to the telecoms industry in 
January 2001; the revised RIO took effect in November 2005. 
52. To enhance transparency, IDA undertook to make public the prices of interconnection 
services offered under the RIO;  this helps potentia l market entrants to make business decisions and 
price comparisons.  Comprehensive service level guarantees for ordering, provisioning, and fault 
restoration of interconnection services, which are also included in the RIO, provide telecoms 
operators greater certainty in obtaining interconnection services and access to SingTel's network.  
53. As noted in the previous Review, price controls continue to apply for key services provided 
by the dominant operators including SingTel's fixed-line services, local leased circuits and 
international leased circuits.  The IDA does not  directly set commercial prices but maintains 
benchmarks to ensure that prices remain comp etitive internationally by comparing SingTel's 
published prices for these selected services with th ose offered in major financial centres, newly 
industrialized countries, and neighbour ing countries.  No details of su ch price comparisons were made 
available to the Secretariat. 
Regulatory developments since 2004  
54. Certain sectors, including telecommunications, have been subject to sector-specific legislation 
on competition.  The Telecom Competition Code is subject to review at least once every three years.  
The first of these reviews was completed in March 200531, and resulted in the Code being revised 
                                                      
30 IDA Singapore, "Policies and Regulation".  Vi ewed at:  http://www.ida.gov.sg/Policies%20and% 
20Regulation/20060419203000.aspx. 
31 Telecom Competition Code 2005, as enacted under Section 26(1) of the Telecommunications Act.  
The revised 2005 version outlines the ex ante dominance classification mechanism;  imposes a range of ex ante 
special obligations on a firm classified as dominant;  and regulates abuses of dominant position, collusion and concerted practices, and mergers. Singapore WT/TPR/S/202/Rev.1 
 Page 93 
 
 
through the removal of certain regulations in co mpetitive market segments and the strengthening of 
regulatory provisions in segments with limited comp etition.  IDA also issued advisory guidelines on 
regulatory processes to provide the telecoms indus try with more business certainty.  These are 
guidelines on procedures for dispute resolution, an d assessment of proposed changes in ownership 
and consolidations.  They provide greater clarity to the framework and pro cedures for IDA reviews of 
telecoms sector consolidations, and the processe s for telecoms licensees to approach IDA for 
reconsideration of regulatory decisions.   
55. Revisions in the Code see stronger relian ce on market forces and self-regulation as more 
effective means of sustaining co mpetition in the long term.  For example, IDA will encourage 
non-dominant licensees to resolve disputes through co mmercial negotiations or alternative means of 
dispute resolution.  Where there are service c hoices, IDA will relieve dominant licensees of certain 
interconnection requirements, such as co-location at sat ellite earth stations.  In line with international 
practices, the definition of a "dominant licensee" wa s revised to reflect control over telecom facilities 
that are costly or difficult to replicate, or the ab ility to restrict output or raise prices above competitive 
levels.  Other Code amendmen ts include the mandate for dominant licensees to publicise all 
IDA-approved telecoms prices, discount structures,  and service termination terms on their website, 
and to offer mandated wholesale services at cost-based or retail-minus prices.  
56. In April 2005, SingTel was exempted from domi nant licensee obligations for the provision of 
international capacity services (ICS);  these include ser vices such as international IP transit, leased 
satellite bandwidth, VSAT, DVB-IP, satellite TV upli nk/downlink, and satellite international private 
leased circuit.  SingTel will no longer be required to  file tariffs, and will ha ve more flexibility in 
packaging and bundling different services.  Accord ing to the authorities, these markets are fully 
competitive and SingTel did not have significant market power to impede competition.  In January 2007, SingTel was also exempted from dom inant licensee obligations for the provision of 
services in the residential and commercial retail in ternational telephone services (ITS) markets, in 
recognition that competition had increased in these markets .    
57. Also in July 2005, IDA revised the requirement for the provision of prepaid telecom services.  
Previously, IDA required a service-based operator to submit a S$100,000 banker's guarantee if the 
company intended to collect financial deposits fro m or sell prepaid cards to customers.  The 
requirement was replaced by a minimum paid- up capital requirement of the same amount upon 
licence application.  
58. In September 2004, IDA granted telecoms operato rs providing international telecoms services 
greater access to submarine cable capacity that la nd at SingTel's submarine cable landing stations 
(SCLS).  Operators can access capacity that is owned, or leased on a long-term basis, on any 
submarine cable at the SCLS. 
(b) Audiovisual and media services  
59. In January 2003, the Singapore Broadcasting Au thority (SBA), the Films and Publications 
Department and the Singapore Films Commission were merged to form the Media Development 
Authority (MDA), a statutory body of the Governme nt.  The MDA was created in response to the 
increasing convergence of different media, and the n eed for a consistent approach to regulation and 
development of the media sector.  The MDA is under the jurisdiction of the MITA, and operates 
alongside the IDA.  
60. Singapore's local free-to-air broadcasting, cable, and newspaper sectors are effectively closed 
to foreign firms.  Section 47 of the Broadcasting Ac t restricts foreign equity ownership of companies 
broadcasting to the Singapore domestic market to less than 49% but gives the MDA authority to WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 94 
 
 
waive this requirement.  Approval from the Minister of Information, Communications and the Arts is 
required for foreign ownership of  49% or more of the shares of any major local broadcasting 
company, as well as for individual equity stakes of 5% or more in broadcasting companies.  
MediaCorp TV, the only free-to-air television br oadcaster, is 80% indirectly owned by Temasek 
Holdings and 20% by publicly listed Singapore Press Holdings (SPH).  Under MDA rules, 
MediaCorp TV must outsource at least 285 hour s of local-content production to independent 
television production companies per year.   
61. Following a review of its licensing framew ork in 2007, the MDA developed a two-tier 
commercial licence framework  to facilitate the growth of pay TV services in Singapore:  Nationwide 
Pay TV Licence caters for players targeting the mass  market;  and the Niche Pay TV licence covers 
niche areas, where the total number of subscribers ar e less than 100,000.  Such niche Subscription TV 
Licensees are not subject to any foreign ownership r estrictions.  The pay TV market in Singapore has 
also become more competitive;  there are now at least three broadcasters:  StarHub Cable Vision Ltd 
and SingTel Pte Ltd (GLCs), and M2B World Asia Pte Ltd. 
62. MDA licenses the installation and operation of broadcast-receiving equipment, including 
satellite dishes (TVRO).  The use of satellite dishes is limited to organizations, such as financial 
institutions, educational institutions, media compan ies and other organizations that demonstrate a 
business need for time-sensitive and other informat ion, which can only be obtained via TVROs.  
Singapore has not authorized direct-to-home satellite television services (Singaporeans have access to 
satellite television programmes through a nationwide cab le roll-out plan).  Alternatives to cable and 
satellite programming include the recent introduc tions of IPTV and WebTV services.  Satellite 
broadcasters operating from Singapore can operate their own uplink facilities with a licence from 
IDA, or engage the services of an uplink service provider.    
(c) Postal services 
63. Singapore's postal sector was liberalized on 1 Ap ril 2007.  The basic mail services market, 
which includes collection and delivery of letters and postcards, within, into and out of Singapore, was 
opened after a 15-year monopoly by Singapore Post Lt d (SingPost).  New players are allowed in both 
domestic and international mail servi ces.  By February 2008, two new suppliers had been licensed to 
offer basic mail services in Singapore.  Liberalization in other segments, such as express letter 
services, was in 1995.  The main change to the basi c mail services regime is that two types of licences 
are now available:  for postal services operators (PSOs) designated as Public Postal Licensees with universal service obligations, such as providing is land-wide letter collection and delivery services, 
maintaining a minimum number of post boxes and po st offices for easy consumer access, and offering 
service quality according to standards set by IDA
32;  and for other PSOs regardless of their service 
scope.  
(v) Transport 
(a) Overview 
64. Transport is regulated by the Ministry of Transport and its statutory bodies:  the Land 
Transport Authority (LTA), the Civil Aviation Authority of Singapore (CAAS) , the Maritime and Port 
Authority of Singapore. 
                                                      
32 However, IDA continues to designate SingPost as  a PPL and will help other PSOs access SingPost's 
delivery network at regulated prices, terms, and conditions .  SingPost will continue to be the only operator to 
issue national stamps.  Also, for greater  operational efficiency, SingPost will continue to manage the centralized 
postal code management system, while providing access to the postal codes database to all interested PSOs. Singapore WT/TPR/S/202/Rev.1 
 Page 95 
 
 
(b) Land transport 
65. The Land Transport Authority (LTA) was set up in September 1995 to manage Singapore's 
land transport system.  A Land Transport Review was announced by the Minister for Transport in 
October 2006 to take stock of the progress achieved in the previous decade.  Following the review, the 
LTA identified the main principles to guide Singapor e's land transport policies and developments for 
the next 10-15 years to ensure a land transport sy stem that met the changing needs of the public.  
First, public transport should be the travel mode of  choice to ensure the best use of Singapore's limited 
land and maintain the sustainability of the urban e nvironment.  Second, given the land constraints in 
building more roads, Singapore will continue to manage its road usage through a combination of 
ownership and usage measures to maintain a smooth traffic flow.  Third, the land transport system 
must meet the diverse needs of the community - in cluding the elderly, less mobile, wheelchair users, 
and the lower income groups – and contribute to a quality lifestyle.  
66. The LTA has also continued to expand the road network and rely more on  road pricing to 
manage traffic.  The two principal demand manage ment tools for road traffic management are the 
Vehicle Quota System (VQS) and Electronic Road Pricing (ERP).  The VQS was implemented in 
May 1990 to control the growth of the vehicle po pulation at a sustainable rate.  Under the VQS, 
Certificates of Entitlement (COEs) must be obtaine d, through a process of competitive bidding, before 
a vehicle can be registered.  Open Bidding of COEs  was introduced in April 2002 and an online COE 
Open Bidding System was developed to provide a greater degree of transparency.  It provides bidders with better access to information during the biddin g process so that they can make more informed 
decisions.  The purpose of ERP is to regulate vehicl e usage for a congestion-free road network.  The 
pay-per-pass ERP system, launched in 1998, has the fl exibility to charge different rates for different 
types of vehicle, different loca tions, and different time periods.
33   
67. Efforts have continued to shift the costs of motoring  from ownership to usage charges.  Thus, 
charges on the purchase of vehicles, including excise duties, the additional registration fee, and road 
taxes, have been progressively reduced34, while the ERP scheme has reduced congestion.  Singapore 
maintains an open market to cars from any country  as long as they meet the prevailing technical 
requirements and exhaust gas and noise emissions sta ndards for registration.  The importation of cars 
that are three years and older is banned.  Cars of three years and over in Singapore must undergo 
mandatory testing.  As noted in the previous Re view, it is unclear why the ban is applied only to 
imported cars as the mandatory testing required of three-year-old cars operating in Singapore could 
presumably also be applied to imported three-year-old cars. 
68. Singapore has an efficient and reliable public transport system.  The Rapid Transit System 
(RTS), buses and taxis35 provide services covering the entire island at reasonable fares.  Currently, the 
                                                      
33 Since its implementation, traffic speeds are mainta ined at an optimal speed  range of 45-65 kph for 
expressways and 20-30 kph for arterial roads and roads in  the Restricted Zone, accor ding to the Ministry of 
Transport website at http://www.mot.g ov.sg/landtransport/privatetransport.htm.  The LTA has been testing a 
system based on the global positioning  system, which may eventually re place the current ERP system.  The 
proposed system overcomes the inflexibility of having physical gantries. 
34 For example, the 2003/04 Budget cut vehicle taxes by 3-5% and the 2004/05 Budget reduced the 
additional registration fee (ARF) from 139% to 110% of its open market value (OMV).  Subsequent budgets 
contained no new initiatives, but the cost of a medium-sized  car is now only about ha lf of what it was a decade 
ago. 
35 The taxi industry was fully liberalized in June 2003, when controls on the number of taxi companies 
and the fleet size quota for each company were lifted.  Operators can now respond freely to market conditions, 
thereby resulting in a better match between supply and demand.  Under the Taxi Operator Licence (TOL) 
framework, licensees must comply with a set of quality of  service standards.  Three broad areas of companies' 
performance are monitored:  availability of taxis via radiophone booking;  safety;  and customer satisfaction.  WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 96 
 
 
two public transport bus operators (SBS Transit and TIBS) plan the bus routes within their areas of 
operation based on commercial considerations, subjec t to minimum service obligations  (requiring the 
operator to provide a scheduled bus service to within 400 m of any resident).  The bus routes, operating hours and the bus fares are all subject to approval by the Public Transport Council (PTC).  
The reasons for granting the two bus operators duopoly  status for bus services are that the Singapore 
market is too small to support a larger number of  operators, and that each operator can enjoy better 
economies of scale, with consequential benefits for the commuters.   Buses are an integral part of 
Singapore's public transport system, currently serving two thirds of all commuter trips.  To help 
railways and buses to work in closer partnership, by  2009 the LTA will take on central planning of the 
bus network, so that one agency is responsible fo r all land transport planning to optimise performance.  
The PTC will continue to have oversight  of the bus network and service quality.
36 
69. To meet the transport needs of a growing po pulation and overcome the constraint of limited 
road space for vehicles, the Mini stry places emphasis on expanding the rail network to form the 
backbone of public transport.  At the same time, the Ministry strives to make public transport an 
attractive option for commuters by continually seek ing improvements in public transport services.  
According to the authorities, by 2030, 1 in 5 Singa poreans will be aged 65 a nd above, and Singapore's 
transport system will need to evolve to meet the needs of a more diverse resident population.37    
(c) Maritime transport 
70. The Port of Singapore, run by the port operators PSA International (formerly the Port of 
Singapore Authority) and Jurong Port, is the world's bu siest in terms of total vessel tonnage handled;  
1.46 billion gross tons were handled in 2007.  Singa pore also handled 483.6 million tons of cargo in 
2007.  Singapore retained its position as the top por t in terms of containerized traffic, with 
27.9 million twenty-foot equivalent units (TEUs) hand led in 2007, and is also the world's busiest hub 
for transshipment traffic.  Additionally, Singapor e is the world's largest bunkering hub, with 
31.6 million tons sold in 2007.  The authorities did no t have up to date information on the comparison 
of port charges but noted that, based on a 2002 Ho ng Kong Marine Departme nt study, Singapore's 
port dues were the lowest after Hong Kong and Dubai.   Singapore's maritime transport sector 
contributes around 7-8% of GDP;  there are more  than 4,400 shipping and maritime-related 
companies in Singapore and the industry employs some 100,000 people. 
71. The main legislation is the Merchant Shipping Act, and the Carriage of Goods by Sea Act.  
The Maritime and Port  Authority of Singapore (MPA) under the Ministry of Transport implements 
maritime policy, such as managing port waters a nd ensuring navigational safety, licensing maritime 
and port services and facilities.  Container and car go operations are managed, under licence, by PSA 
Corporation Ltd (a GLC) and Jurong Port Pte Lt d.  The MPA represents Singapore in international 
fora like the IMO and takes the lead in representi ng Singapore at internationa l meetings relating to 
                                                                                                                                                                     
Financial penalties are imposed if the taxi companies fail to meet the standards in two consecutive months.  
Ministry of Transport online information.  View ed at:  http://www.mot.gov.sg/landtransport/public 
transport.htm. 
 36 According to the authorities, by 2015, the target  is for 80% of public transport commuters to 
complete their journeys from the point they set off, to arrival within an hour, up from 71% in 2007, and by 2020, 
journeys on public transport should not take more than 1.5 times that by car, a reduction from the current 1.7 times.
 
37 Initiatives include wheelchair-acce ssible buses and barrier-free fac ilities at MRT stations.  To 
enhance the security of Singapore's public transport sy stem, measures will include closed-circuit TVs in train 
stations, perimeter fencing, and longer storage period of video images recorded in MRT stations.  Also, 
according to the authorities, an island-wide programme co sting S$60 million has been launched to ensure that 
pedestrian walkways, access to RTS stations, bus and taxi  shelters, and all public roads will be barrier-free by 
2010. Singapore WT/TPR/S/202/Rev.1 
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WTO matters.  Singapore is a party to all the majo r international conventions  on maritime safety and 
pollution prevention.  The MPA also promotes Singa pore as a leading international maritime centre, 
using a range of initiatives and programmes to de velop the maritime cluster including shipping 
companies, shipbroking, shipping finance, ma rine insurance and maritime legal services.  
72. Singapore's ports are managed under licence by the PSA Corporation Ltd (terminals at Brani, 
Keppel, Pasir Panjang, Sembawang and Tanjong Pa gar, for container and conventional cargo), and 
Jurong Port Pte Ltd, which operates cargo terminal  facilities to handle conventional cargo, bulk cargo, 
and containers.  Singapore is also the third largest oil refining centre in the world and the oil terminals 
are operated by the petroleum companies that run the refineries.   
73. A decade ago, Singapore liberalized certain por t services, such as tug services, which resulted 
in more competitive rates and better service levels.  In addition, most of the other port activities like 
bunkering and ship chandlering are liberalized.  Pilo tage services have not been liberalized, largely 
due to navigational safety considerations.  PSA has also entered into agreements with shipping lines 
such as Cosco to operate their own dedicated terminal s.  The PSA Corporation, which is owned by the 
Government's holding company, Temasek, was intended to be privatized in 2001;  however, this plan 
was postponed indefinitely.  According to the authorities, the timing for PSA's  privatization is to be 
determined. 
74. The Singapore Registry of Ships (SRS) is the second largest in Asia after Hong Kong and the 
6th largest in the world with some 39.6 million gross tons (GT) on its register of more than 
3,500 vessels.  The SRS is recognized as a quality flag due to its sound safety and environmental 
records and offers advantages such as financial in centives and recognition of foreign Certificates of 
Competency (CoCs).  Singapore's registry of ships registers ships of citizens and permanent residents 
of Singapore and of companies incorporated in Si ngapore.  Foreign-owned companies with paid-up 
capital of S$50,000 can register their ships with th e registry.  There are no nationality requirements 
for the crew on board a Singapore-registered vessel.   
75. Singapore has a preferential corporate tax regime for shipping companies.  The Approved 
International Shipping Enterprise Scheme (AIS), the Singapore Registry Scheme (SRS), Approved 
Shipping Logistics Enterprise Scheme (ASL), and the Maritime Finance Incentive Scheme (MFI) 
have been introduced to provide shipping and rela ted companies in Singapore with an environment 
conducive to their shipping and related operations  (Table IV.5).  Singapore is developing a 
comprehensive range of maritime ancillary services to provide shipping companies in Singapore or 
calling at Singapore with one-stop service for all po rt, shipping, and maritime activities as well as 
value-added services in ship management, ship financ ing, marine insurance, ship broking, maritime 
legal services, and maritime and offshore engineering.  
Table IV.5 
Main features of various shipping incentive schemes 
Name of 
scheme Major incentives 
SRS Qualifying income derived by tax residents or non-tax residents from the operating or chartering of a Singapore 
registered ship, or operating of a foreign registered ship outside the port limits of Singapore is tax exempt. 
AIS Qualifying income derived by an approved company fr om the operations or chartering of Singapore and foreign 
flagged vessels outside the port limits of  Singapore is tax exempt for a period of 10 years, which may be extended for 
further periods of 10 years up to a total of 30 years.  
ASL Qualifying income derived from the provision of freight and logistics services by an approved company is subject to a 
concessionary tax rate of not less than 10% for a period of five years (to be extended to ten years based on 2007 
Budget Proposal). 
Table IV.5 (cont'd) WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 98 
 
 
Name of 
scheme Major incentives 
MFI Qualifying income derived by an approved ship investme nt vehicle (such as shipping leasing company, shipping fund 
or shipping trust) is exempt from tax for a period of ten years. 
Qualifying income derived in connection w ith and incidental to management of a portfolio of vessels in an approved 
ship investment enterprise by an approve d ship investment manager is subject to  a concessionary tax rate of not less 
than 10% for a period of ten years. 
Source : Singapore authorities. 
(d) Air transport 
76. Set up under the Civil Aviation Authority of Singapore Act (in 1984), The Civil Aviation 
Authority of Singapore (CAAS) implements and advises on air transport policy and represents 
Singapore in matters relating to civil aviation. 38 
77. The national airline, Singapore Airlines (SIA), is a publicly listed company, majority owned 
by the Government through Temasek Holdings (54. 41% at end-December 2007).  In addition, SIA's 
wholly owned subsidiary SilkAir provides regional tr avel services.  The share of passengers travelling 
through Changi Airport with the two airlines increa sed from 53% (50% for SIA and 3% for Silk Air) 
in 2002 to 55% (50% for SIA and 5% for SilkAir) in  2007.  SIA has also sought alliances to extend its 
international reach;  it acquitted a 49% share in Vi rgin Atlantic, in March 2000.  SIA subsequently 
joined Star Alliance a month later.  It has also in vested in Australasian ai rlines, but subsequently 
divested its stakes in them.  Th e airline suffered a setback when the Australian Government in 
February 2006 decided not to give it ac cess to the lucrative Australia-US routes.39  In addition, SIA 
owns companies involved in providing airport groundhandling services (SATS), cargo services (SIA Cargo), engineering services (SIA Engineering Company), and travel (Tradewinds).   
78. Singapore has air services agreements with ove r 90 countries and open skies agreements with, 
inter alia,  Brunei Darussalam, Chile, New Zealand, Samoa, Tonga, the United Arab Emirates, and the 
United States.  An open skies agreement was conc luded with the United Kingdom in October 2007 
permitting unrestricted services between Singapore and the UK by airlines from both countries.  Singapore airlines are also allowed to operate domes tic UK services.  In addition, Singapore airlines 
can base their aircraft in the UK and use the UK as a hub for services to any destination, including the 
United States.
40 
79. Singapore aims to be Asia's aviation hub chie fly by encouraging airlines to commence and 
maintain operations in Singapore.  This policy incl udes the development of several key clusters, such 
as airport-related activities and services, aircraft leasing and financing, aircraft maintenance and 
manufacturing, as well as other aviation-related activiti es.  The Government helps airlines to reduce 
operating costs and facilitate their growth thro ugh various financial incentive schemes, like the 
S$210 million Air Hub Development Fund (AHDF) a nd the S$40 million Growth Incentive Scheme 
(GIS).  These include rebates in landing fees a nd rental rebates, as well as financial support for 
marketing activities.  To strengthen the growth of Singapore's aviation sector, Changi Airport 
launched an enhanced, three-year, S$300 milli on incentive package, the Air Hub Development 
Fund 2, which replaced AHDF and GIS in January 2006.  
                                                      
 38 The Air Navigation Act (Chapter 6) and its subsidiary legislation provide for the control and 
regulation of civil aviation in Singapore.  
39 In February 2006, Australia blocked SIA from flying on the lucrative Sydney-Los Angeles route, 
despite several years of lobbying by Singapore for access to that ro ute, dominated by Qantas and 
United Airlines.  See the Financial Times , "Singapore Airlines denied access to Sydney-LA route".  Viewed at: 
http:/www.ft.com/cms/5783f670-a2d5-11da-ba72-0000779e2340,dwp_uuid=87ef6. 
40 Ministry of Transport, Press Release 3 Octobe r 2007.  Viewed at:  http://app.mot.gov.sg/data. Singapore WT/TPR/S/202/Rev.1 
 Page 99 
 
 
80. Changi Airport is served by more than 80 airlines flying to over 180 cities in 59 countries 
with more than 4,300 weekly scheduled flights.  P assenger traffic at Changi Airport reached a record 
of 36.7 million in 2007.  Changi Airport handled 1. 9 million tons of cargo in 2007.  According to the 
authorities, the allocation of airport slots at Changi Airport is overseen by the Changi Slots 
Committee, chaired by CAAS (SIA has been appointed  as slots coordinator).  Slots are allocated in 
accordance with IATA Scheduling Guidelines and airlin es may appeal directly to CAAS if they have 
concerns over their slot allocation .  
81. The Government accepts that budget airlines will have a major role in regional air travel and 
acknowledges the need for Changi Airport to acco mmodate these new airlines;  a new terminal 
dedicated to budget airlines opened in March 2006.41  SIA has formed its own low cost airline, Tiger 
Airways, with Indigo Partners (a U.S.-based pr ivate-equity firm) and Irelandia Investments (the 
investment firm of the owner of Ryanair.  Tiger Airways started operations in September 2004, and is 
phasing in its operations, which include flights to  popular destinations in Thailand.  Other 
Singapore-based budget airlines include Jetstar Asia and Valuair;  the two airlines merged in August 2005 under Orangestar Investment Holdi ngs;  however, they continue to operate as 
two separate brands. Temasek Holdings has significa nt stakes in both Tiger Airways and Orangestar 
Investment Holdings.   
82. The Changi Airfreight Centre is a free-trade zone providing 24-hour services for cargo agents 
and shippers.  Access through TradeNet enables a direct, quick link to regulatory bodies such as IE 
Singapore and Customs.  As a result, permit applicat ions are processed within ten minutes on average.  
There has been a steady increase in air car go movement through Changi Airport, from 
1.64 million tonnes  in 2002 to 1.89 million tonnes in 2007.  In  addition, the Airport Logistics Park of 
Singapore, which officially opened in March 2003 , and is operated by JT C Corporation and the 
CAAS (with the support of the EDB, Immigr ation and Checkpoints Authority and Singapore 
Customs), aims to establish Singapore as a regional logistics hub.   
83. Ground handling services are provided by Singapore Airport Terminal Services (SATS);   
Changi International Airport Services (CIAS);  a nd Swissport Singapore Pte Ltd (Swissport).  SATS 
is majority owned (87%) by SIA, and CIAS is now owned by Dnata.
42  Swissport, which commenced 
ground operations in March 200 5, is owned by Ferrovial.43 
(vi) Tourism services 
84. The Singapore Tourism Board (STB), under the Ministry of Trade and Industry, is the 
statutory board responsible for promoting tourism.  In January 2005, the Board unveiled its  targets to 
ensure that tourism remains a key economic pilla r by tripling tourism receipts to S$30 billion 
(compared with S$13.8 billion for 2007), increasing vi sitor arrivals to 17 million (from 10.3 million in 
                                                      
41 There are currently 5 local scheduled passenger serv ice airlines, all of them operating out of Changi 
Airport, offering scheduled flights to over 107 cities on 5 continents.  SIA currently operates out of Changi 
Airport as does its subsidiaries SilkAir and SIA Cargo.  Singapore's two budget airlines, Jetstar Asia (founded 
2004) and Valuair (founded 2004 and since merged with Jetstar Asia), currently operate out of Changi Airport 
Terminal 1.  Only one budget air line, Tiger Airways (founded 2003) has chosen to operat e at the Budget 
Terminal.  Other budget airlines have cited various reas ons for not shifting operations to the Budget terminal, 
including accessibility and ease of transfer s to connecting flights.  The newest  Singapore airline,  Jett8 Airlines 
Cargo (founded 2007) oper ates all-cargo services from Changi Airport. 
42 Temasek Holdings divested its stake in CIAS to Dnata in September 2004.  Dnata is a unit of Dubai's 
Emirates Group, and is the sole ground-handling service provider at Dubai International Airport. 
43 Swissport has operations in 180 airports in 42 countries.  It was acquired by Ferrovial, a 
Spanish-based infrastructure and services group, in August 2005, which further boosted the financial backing 
for Swissport. WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 100 
 
 
2007), and creating an additional 100,000 jobs in the services sector by 2015.  These targets are 
expected to drive future initiatives and increase growth  in the tourism industry over the next ten years, 
supported by a S$2 billion Tourism Development Fund.    
85. Under the Singapore Tourism Board Act (Cap. 305B ), the STB is responsible for licensing 
and regulating tourism operators, en terprises, and travel agencies.  Tourist guides are licensed under 
the Singapore Tourism (Licensing and Control of Tourist Guides) Regulations.  The licences are 
granted for three years and renewal applications must  be made one month before the current licence is 
due to expire.  Travel agents are regulated under the Travel Agents Act (Cap. 334) and Regulations.  
Under the Act, they must apply for renewable licen ces from the Board;  the licence expires at the end 
of the year following that in which it was issued .  Hotels are registered and licensed by the Hotel 
Licensing Board, which is within the Ministry of  Trade and Industry, and operates under the Hotels 
Act.   
86. The most significant development during the review period has been the Government's 
decision to change its longstanding policy not to al low casinos in Singapore.  In April 2005, the 
Government announced that it would allow two inte grated resorts to be developed, which would 
provide amenities such as hotels, convention facilities,  entertainment shows, theme attractions, luxury 
retail, fine dining, and casino gaming.  The Government received concept proposals from 19 international operators.  In 2006, the Las Vega s Sands Corp. won the licence to build Singapore's 
first integrated resort at the Marina Bay site, while Malaysia-based Genting International PLC won 
the second licence for Sentosa Island.
44  The Government made the decision with the aim of attracting 
more tourists, creating more j obs, and enhancing Singapore's repu tation as a premium "must-visit" 
destination for leisure and business visitors.  The authorities are not sure how successful this will be, 
although the experience of other countries with simi lar venues in Asia suggests that it will help to 
attract additional tourists.  The two resorts are each  estimated by the Government to contribute about 
S$2.7 billion, or approximately 0.8%, to the country's GDP, and genera te about 30,000 jobs 
throughout the economy by 2015.  
87. The relevant casino legislation is the Casino Control Act 2006 (Bill No. 3/2006) although the 
specific regulations governing the operations of the casino are currently being drawn up.  The Casino 
Control Act (2006) established a new statutory board, the Casino Regulatory Authority (CRA), which will be supervised by the Ministry of Home Affa irs.  Apart from investigative and enforcement 
powers, CRA is also the approving authority for various aspects of casino operations.  It will oversee 
the casinos' system of internal controls and accounting procedures.
45  Gambling cruise ships also 
operate from Singapore, but gambling is not allo wed until the ships reach international waters. 
88. The importance of overseas visitors was demons trated by the impact on the economy of the 
SARS outbreak in 2003, which caused visitor numbers to  fall by 19% in that year to 6.1 million and 
the economy to contract as retail sales and demand fo r services were undermined.  A full recovery in 
visitor numbers began in the last quarter of 2003,  and the upturn from 2004 onwards has been strong, 
reaching 9.7 million in 2006 and 10.3 million in 2007.  Close to 37% of  tourists consist of regional 
(South-east Asian) visitor arrivals.  Although periodic  attempts have been made to increase the length 
of stay of visitors, there has been limited success in  increasing this much beyond the current average 
of three nights.  This reflects the fact that Singapore's main attraction is its secure and clean 
environment:  it acts as a destination for those wish ing to rest before travelling to other countries in 
the region that offer a greater variety of activities.  Nevertheless, daily expenditure per visitor is quite 
high, at around US$161.  The number of visitors from key long-haul markets – Germany, the 
                                                      
44 Rapid construction is under way on both sites with the Sands projecting an opening date in the 
second half of 2009.  Genting is expecting to open in early 2010. 
45 Yap Win Ming (2007), pp. 440-448. Singapore WT/TPR/S/202/Rev.1 
 Page 101 
 
 
United Kingdom and the United States – has also increased in recent years, again owing to the 
expansion of the world economy since 2003.  The ma rket for visitors from China shows considerable 
potential:  1.1 million Chinese visited Singapore in  2007, making China the second-largest source of 
tourists after Indonesia.  Those two, together with  Australia, India, and Malaysia are Singapore's top 
five visitor-generating markets in 2007, accoun ting for about 51% of total visitor arrivals.46  
89. The main activity for leisure visitors in Singa pore is shopping, particularly in the city's 
numerous shopping malls.  Singapore has promoted itself as a regional cruise base since the establishment of a cruise terminal in 1991:  annua l passenger numbers regularly exceeding 0.9 million 
(throughput).  Singapore will also benefit from the d ecision of Formula One to hold grand prix races 
in Singapore from 2008.  The Singapore Tourism Board will meet 60% of the cost of the races.  
90. In the GATS, Singapore has undertaken specific commitments on:  hotel services;  travel 
agents and tour operators and to urist guide services;  and in restaurant and catering services.  
(vii) Professional services 
(a) Accountancy services 
91. Public accountants are regulated under the Accountants Act Cap. 2 and its various 
regulations.  The registration and regulation of  public accountants in Singapore comes under the 
purview of the Accounting and Corporate Regulator y Authority (ACRA) and the Public Accountants 
Oversight Committee (PAOC), which is statutorily established under the Accountants Act.  The main 
functions of the PAOC are to assist ACRA in re gistering, administering, and regulating public 
accountants, accounting firms, accounting corporatio ns and accounting limited liability partnerships 
(LLPs).  Only persons who are registered w ith ACRA as public accountants, accounting firms, 
accounting corporations, and accounting LLPs can pr actise as public accountants, and provide public 
accountancy services in Singapore.
 47    
92. To practice in Singapore, public accountants must have passed the professional examination; 
structured or unstructured experience48;  acquired at least 40 hours of continuing professional 
education;  completed a course on ethics and professi onal practice;  and demonstrated proficiency in 
local laws.49  Public accountants must also be member s of the Institute of Certified Public 
Accountants of Singapore (ICPAS).   
93. Public accountants may set up three types of  accounting entities:  accounting firms, 
accounting LLPs, and accounting corporations.  For sole  proprietors or a partnership (i.e. accounting 
firms and accounting LLPs), at least two thirds of th e partners have to be, or if the partnership has 
only two partners, one of those partners has to be, public accountant(s).  Fo r accounting corporations, 
                                                      
46 Tourism Fact Sheet Jan–Dec 2007.   Viewed at:  http://app.stb.gov.sg/asp/new/new03a.asp?id=8123. 
47 "Public Accountancy Services" means the audit and reporting on financial statements and the doing 
of such other acts that are required by any written law to be done by a public accountant. 
48 Structured experience includes:  at least two years of structured practical experience in accounting, 
auditing, and taxation after passing the qualifying examin ation;  or not less than four years of structured 
practical experience in a public accounta nt's office in accounting, auditing, and taxation, of which at least 
one year is acquired after passing the qualifying examination.  Unstructured experience in cludes:  not less than 
three years experience in accounting, auditing, and ta xation in a public accountant's office after passing the 
qualifying examination;  or not less th an five years experience in accounting,  auditing, and taxation in a public 
accountant's office, of which at least two years we re after passing the qualifying examinations.    
49 Applicants who do not have at least two years of relevant local experience and have not passed any 
of the professional examinations, must satisfy their pr oficiency in local laws by passing an examination, 
conducted by ICPAS, on Singapore Company Law;  and Singapore Taxation and Tax Management.   WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 102 
 
 
not less than two thirds of the board of directors (including the Chairman) must be Singapore-
registered public accountants;  not less than two thirds  of the voting shares of the corporation must be 
owned by Singapore-registered public accountants;  and only natural persons may own shares in the 
accounting corporation.  
94. The major international accounting firms all ope rate in Singapore.  There are no special 
restrictions or nationality or citizenship require ments on foreign accountants wishing to practise in 
Singapore.  However, an accounting entity must have at least one director or partner that is ordinarily  
resident in Singapore.50    
(b) Legal services 
95. Regulatory policy on legal services is based on th e objective of maintaining a certain level of 
quality of legal services and to ensure that there is no oversupply of lawyers in the domestic legal 
market.51  Thus, while Singapore maintains a liberal polic y regarding the practice of foreign law, the 
domestic market is tightly regulated in order to fulfil these policy objectives.  In July 2007, the 
Government implemented the recommendations of two separate committees (Committee on the 
Supply of Lawyer appointed in 2006 to:  (a) allo w Singapore law firms (SLFs) to employ high-quality 
foreign lawyers who may eventually qualify to prac tise Singapore law in the areas of finance, banking 
and corporate work and other areas as may be ap proved by the Attorney-General if they pass a 
qualifying examination;  and (b) allow foreign lawy ers working in SLFs to own equity shares, subject 
to an aggregate limit of 25% of the total equity shares or profits of the SLF, in order to attract experienced and talented foreign lawyers.
 52 
96. In early 2008, there were 78 foreign law firms from more than 20 jurisdictions based in 
Singapore employing 881 foreign lawyers.  Fore ign law firms may set up offices in Singapore to 
advise clients only on the laws of their home country or international law.  Foreign law firms with a 
track record in financial work are allowed to ente r into joint ventures or establish formal alliances 
with Singapore law firms.  In such cases, certifie d foreign lawyers participating in the joint venture 
may, on completion of prescribed courses on Singapore law, practise Singapore law, with the 
exception of representation before j udicial or regulatory bodies.   
97. The Government will, over the course of 2008, implement recommendations of the 
Committee on its comprehensive review of the legal services sector to enhance the Joint Law Venture 
                                                      
50 The term "ordinarily resident" is not defined, but its established meaning is of a person normally 
residing in Singapore (apart from temporary or occasiona l absences), voluntarily and for settled purposes as part 
of the regular order of their life for the time being.  In considering whether a person is ordinarily resident, all the circumstances of the particular case will be considered. 
51  Singapore currently has around 3,500 practising la wyers, a number that the Government believes to 
be optimal on a per capita basis.  Factors taken into  consideration when calculating this optimum level are 
Singapore's projected economic growth, concentrating on the specific growth sectors that would see a 
corresponding growth in support services including legal services; Singapore's population growth; and 
developments in legal practice.  
52 Also, in December 2007, the Government accepte d a number of recommendations by the Committee 
on the Comprehensive Review of the Legal Services Sector  to liberalize the sector.  These will be implemented 
over 12 months.  They include introducing a new scheme (Qualifying Foreign Law Firm scheme) where up to 
five foreign law firms (FLFs) will be allowed to practise Singapore law in commercial areas through 
Singapore-qualified lawyers employed by them.  Presently FLFs are not permitted to undertake any Singapore law work except within a joint law venture (JLV) sche me.  The QFLFs will be selected through a request for 
proposal (RFP) process.  However, domestic areas of litig ation and general practice, for example, criminal law, 
retail conveyancing, family law, administrative law, and all aspects of criminal a nd commercial litigation, will 
continue to be excluded. Singapore WT/TPR/S/202/Rev.1 
 Page 103 
 
 
(JLV) scheme as follows:  (i) FLFs and Singapore law firms (SLFs) will be allowed to form an 
enhanced JLV (EJLV), where the foreign law firms w ill be able to hire Singapore-qualified lawyers to 
advise on Singapore law;  (ii) FLFs may hire up to one Singapore lawyer for every foreign lawyer, and the Singapore lawyers should have more than th ree years' experience;  (iii) FLFs and SLFs may 
share profits in permitted JLV pr actice areas of cooperation, whic h will include the newly expanded 
scope of work for international arbitration.  The fo reign law firm will be allowed to share up to 49% 
of the profits of the constituent Singapore law firm in the permitted areas.  The EJLV constituents will 
also be allowed to decide whether, and to what exte nt, to share profits;  and (iv) the partners from the 
Singapore law firms will be allowed to concurrently  hold partnership and administrative positions in 
the foreign law firms.  
98. Since June 2004, U.S. and other foreign lawy ers have been allowed to participate in 
international commercial arbitration, including cases involving Singapore law, once a notice of arbitration is issued, without a Singapore lawyer be ing present.  Under the proposed reforms, this will 
be expanded to allow FLFs to participate wherever arbitration is contemplated:  in the vetting and 
drafting of Singapore law agreements  incorporating arbitration clauses, and advising parties on their 
legal rights and liabilities in such agreements bot h before and after the dispute is referred to 
arbitration.  FLFs will practise Singapore law in the expanded areas of arbitration work through 
Singapore-qualified lawyers employed by the firm.  
99. Under SAFTA, conditions on the establishment of joint ventures in Singapore involving 
Australian law firms have been eased, as Australian law firms enjoy the same conditions with respect 
to joint ventures as U.S. law firms.  These conditions  include requirements with respect to the number 
of foreign lawyers of the foreign law firm that must be resident in Singapore and their years of experience.  The easing of these requirements allows  Australian law firms to be more competitive 
compared with the larger U.K. law firms.  Th e number of Australian universities whose law degrees 
are recognized in Singapore has increased from four to ten. 
100. Singapore has made no commitments in the GA TS with regard to legal services.   
(c) Engineering and architecture services 
101. Engineering and architecture firms operating as co rporations, limited liability partnership and 
multi-discipline partnerships are required to be licenced  and can be 100% foreign owned.  In line with 
provisions in the FTA with the United States, and applicable to all foreign firms, Singapore has 
reduced the requirement that the chairman and two thirds of a firm's board of directors must be 
composed of engineers, architects or land surve yors registered with local professional bodies to a 
simple majority.  Practicing engineers (in civil, mechanical, and electrical engineering) and architects must register with the Professional Engineers Board and the Board of Architects, respectively.  Under 
amended legislation, local and foreign applicants applying to register with the Professional Engineers 
Board are required to meet qualifications requirements, pass prescribed examinations and have at least 
four years of practical experience.  Applicants applying to register with the Board of Architects are 
also required to meet qualifications requirements and pass the prescribed examinations.  Applicants 
who are graduates from the recognized universities are re quired to have at least two years of practical 
experience in architectural work in Singapore.   
(d) Health services 
102. The Government aims to strengthen Singapore's position as a world-class medical hub by 
developing its healthcare system into one that is on  par with international standards of excellence.  
Launched in 2003, SingaporeMedici ne is a multi-agency government –industry initiative to promote WT/TPR/S/202/Rev.1 Trade Policy Review 
Page 104 
 
 
Singapore as a world-class destination for advanced patient care.53  Over 410,000 international 
patients visited Singapore for medical treatment in  2006, and Singapore has set itself a target of 
receiving one million health visitors by 2012, with an average growth of 20% each year.  In seeking to 
strengthen its healthcare system, Singapore has increased  the base of doctors and nurses.  At the same 
time, the number of overseas-trained doctors has in creased by expanding the number of registrable 
basic medical degrees recognized by the Singapore Medical Council (SMC) for conditional medical registration in Singapore. Currently, 159 overseas ba sic medical degrees are recognized by the SMC.  
A nursing degree course commenced in 2006;  besides increasing nursing capacity, Singapore has established the Advanced Practice Nursing (APN) track  which encourages top clinical nurses to take 
on clinical leadership positions to guide patient care.  The Nurses and Midwives Act was amended to 
incorporate this initiative.  The registration of doctors is the responsibility of the SMC under the 
Medical Registration Act (MRA).  Under the Act, all doctors who wish to practice medicine in 
Singapore must be registered with the SMC and ho ld a valid practising certificate (PC), which is 
usually valid for two years.  PC renewal is s ubject to the fulfilment of the Continuing Medical 
Education (CME) requirements specified by the MRA and the SMC. 
 
                                                     
 
53 SingaporeMedicine online information:  View ed at:  http://www.singaporemedicine.com/. Singapore WT/TPR/S/202/Rev.1 
 Page 105 
 
 
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