Singapore as an International Financial Centre
Ker Sin TzeTrade Representative
Singapore Trade Office in Taipei
At the 14th Annual Conference on Pacific Basin Finance, Economics, and Accounting at Grand Hotel, Taipei on 14 July 2006
Singapore’s GDP Growth
GDP in 2005 was S$194,359.8 million (US$116.770.7 million)
Year Growth Rate (%) Per Capita GDP (US$)
2000 10 $23,078
2001 - 2.3 $20,723
2002 4.0 $21,209
2003 2.9 $22,155
2004 8.7 $25,352
2005 6.4 $26,833
2006 1st Quarter 10.6
2nd Quarter 7.5
Growth in Q1 2006 was 10.6% (6.8% after seasonal adjustments). Broad-based economic expansion due to strong global IT demand, intra-regional trade. Growth in Q2 2006 was 7.5%. Forecast growth in 2006: 5-7%.
Investment & Trade
a) Major sources of foreign direct investments are Europe, US and Japan. Singapore’s investment destinations abroad are China, HK, Malaysia, Caribbean/Latin America, etc
US$ (Million)Foreign direct investment stock in Singapore at end 2003 143,691.7Singapore’s stock investment abroad at end 2003 172,859.8
Destinations for Singapore’s direct investment in 2003 were:
British Virgin Islands 14.4 %China 12.4Malaysia 8.7Bermuda 7.6Hong Kong 7.5
b) Total trade in 2005 was US$430,070.2 million (at exchange rate US$1=$1.6642). About 70% was with Asian countries, 13% was with America including Brazil and Canada, another 13% was with Europe and the remaining 4% was with Australia, NZ and Africa.
c) Singapore has been promoting investment and trade with China for the last 25 years. With the rise of India and the new opportunities in the Middle East, Singapore is also promoting investment and trade in India and the Middle East.
FTA & CEP
To-date, Singapore has signed FTAs or CEPs with the following countries:
Country Year
New Zealand 2000
Japan 2002
European Free Trade Association 2003
Australia 2003
US 2004
India 2005
Korea 2005
Jordan 2005
Trans-Pacific SEP 2006
Panama 2006
International Financial Centre
In 2005, financial services accounted for 11.6% of Singapore’s GDP
a) Basic Favourable Factors
Sound economic and financial fundamentals
Conducive regulatory and business environment
Strategic geographical location
Skilled labour force
Excellent telecommunications and infrastructure
High living standards
b) Activities
Banking
Asian dollar market
Foreign exchange market
Bond market
Equity and derivatives market
Fund and asset management
Insurance
c) Additional Activities in Future
Regional leader in wealth management
Regional and global processing centre
Asia Pacific risk management centre
Present and Future
Singapore has won praises in international assessments of its good business environment and competitiveness.
Rank
Business environments by Economist Intelligence Unit 6
Network ready country by World Economic Forum 2
Best labour force by BERI's 2005 Labour Force Ranking 1
Overall competitiveness by IMD World Competitiveness
Yearbook 2006 3
Best place for Asian expatriates by ECA International 2006 1
The favourable factors listed above will help to bring about excellent economic performance in future. With sustained growth and Singapore's diversification of investment links to China, India and the Middle East, Singapore will continue serving as the focus point for the flow of financial resources between them, and Singapore as a major financial centre will grow further in the years to come.