Singapore as an International Financial Centre
Ker Sin Tze
Trade 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$116.770.7 million)
Year
2000
2001
2002
2003
2004
2005
2006 1st Quarter
2nd Quarter
Growth Rate (%)
10
- 2.3
4.0
2.9
8.7
6.4
10.6
7.5
Per Capita GDP (US$)
$23,078
$20,723
$21,209
$22,155
$25,352
$26,833
Growth in Q1 2006 was 10.6% (6.8% after seasonal adjustments). Broad-based economic
expansion due to strong global IT demand, intra-regional trade. Growth in Q2 2006 was 7.5%.
Forecast growth in 2006: 5-7%.
Investment & Trade
a)
Major sources of foreign direct investments are Europe, US and Japan. Singapore’s investment destinations
abroad are China, HK, Malaysia, Caribbean/Latin America, etc
Foreign direct investment stock in Singapore at end 2003
Singapore’s stock investment abroad at end 2003
US$ (Million)
143,691.7
172,859.8
Destinations for Singapore’s direct investment in 2003 were:
British Virgin Islands
China
Malaysia
Bermuda
Hong Kong
14.4 %
12.4
8.7
7.6
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
New Zealand
Japan
European Free Trade Association
Australia
US
India
Korea
Jordan
Trans-Pacific SEP
Panama
Year
2000
2002
2003
2003
2004
2005
2005
2005
2006
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.
Business environments by Economist Intelligence Unit
Network ready country by World Economic Forum
Best labour force by BERI's 2005 Labour Force Ranking
Overall competitiveness by IMD World Competitiveness
Yearbook 2006
Best place for Asian expatriates by ECA International 2006
Rank
6
2
1
3
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.