Singapore as an International Financial Centre Ker Sin Tze by gzn12524


									         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                         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                143,691.7
     Singapore’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                                    12.4
         Malaysia                                 8.7
         Bermuda                                  7.6
         Hong 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
     Asian dollar market
     Foreign exchange market
     Bond market
     Equity and derivatives market
     Fund and asset management

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                         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.

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