Introduction to Singapore

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A business Advisor on International Trade, working for InvestNi has prepared this blog on Singapore to analyse the global environment that SMEs operate. Throughout the blog the challenges and opportunities of global growth, advantages of trading blocs and trade agreements will be identified.

Singapore, established in 1298-1299 but did not receive its name until during the 14^th century when a prince originally from Palembang originated a city where he caught an animal, which at the time was unidentified so he called it Singapura. The city therefore became an exchange post for ships, turning Singapore into a fishing town which started the vast harbour actions happening in the Port of Singapore today which is currently classified as the world’s maritime capital. (diggitmagazine, 2019) The population of Singapore as estimated for 2019 is 5,804,337 people, this is 0.08% of the total population of the world. The land area is 700 Km2 (270 sq. miles) and their currency is Singapore dollar. One hundred per cent of the Singapore population is Urban, and due to it being a diverse country the four main languages spoken are Malay, Mandarin, Tamil and English. (worldometers, 2019)
 

Singapore’s economy is identified as the second freest in 2019 and is above world averages with rises in scores for trade freedom and government reliability overtaking uncertain falls in labor freedom and property rights. Singapore is a greatly established free market economy and this is a result of their uncorrupted business environment, clear legal agenda and financial policies. The Singapore government encourages economic growth and development through a business strategy that aims at financial incentives, growths in investments from the public and encourages advancing skills to appeal to investors from other countries as well as concentrating on economic diversification. Unemployment rates in Singapore is among the lowest in the developed world. (heritage, 2019)

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Singapore is a multi-ethnic culture that allows Malay, Chinese and Indian traditions to occur together under the surface of a western cosmopolitan metropolis. Since Singapore’s independence in 1965, they have tried to indorse a national identity in its ground of immigrants. This is why they have four main languages but when it revolves around business or politics, the language spoken is English. (commisceo-global, 2019) Singapore holds a trade-dependent economy which is branded by an available investment system that their government are focused on upholding a free market and are handling the economic development of the country. Singapore is one of the United States biggest companion and they have a Free Trade Agreement. Last year the economy of Singapore increased by 3.2% and the United States is one of Singapore’s largest source of imports. (export.gov, 2019)

Some of the best products for Singaporean online consumers consist of clothing, beauty products, electronic devices and many more. When contributing products like those listed above, it makes it easier to start your existence in the Singapore online market. Selling and trading in Singapore is of value to international ecommerce sellers. (webinterpret, 2019)

globalisation makes it easier for businesses to outsource and offshore. There are a lot of outsourcing businesses in Singapore, especially IT companies such as Swift Integrator PTE LTD. This business has the reputation for their inventory are recognised for having rare, hard to find parts.  In 2006 the business moved into bigger markets and expanded into customisable IT network services and was very successful. (clutch, 2019)

An example of a business that offshores in Singapore is Eltoma Corporate Services. This business stands out amongst other service providers wanting to operate in Singapore is that they do everything on their own such as employing their own staff, and gaining the proper licences and documentations. The reason for offshoring in Singapore is the international trading, financial corporations and investment companies. (eltoma-global, 2019)