With a small indigenous manufacturing industry, Singapore depends heavily on imports, and the market is dominated by foreign firms. U.S. and Foreign Commercial Service U.S. telecom equipment exports to Singapore grew steadily between the years 1989 and 1995. Exports increased dramatically in 1995, peaking in 1997. The sharp decrease in equipment exports beginning in 1997 came as a direct result of the regional financial and economic crises. Singapore's economy began to emerge from recession in early 1999, due in large part to the booming economic conditions in the United States and the general electronics upswing in developed countries.
Exports remain at much lower levels than in earlier years.
There now exists a U.S. trade deficit with Singapore in telecom equipment. However, U.S. exports to Singapore are now on the rise and are expected to continue as Singapore's economy continues to strengthen. Singapore is also a launching pad for products entering Asian countries. So long as the United States maintains its competitive edge in info-communications products, it will continue to be a major source of Singapore's current and future equipment needs.