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 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.
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