EMBARGO: NOT FOR PUBLICATION
BEFORE 1300 HOURS GMT 4JUNE 1996
PRESS/TPRB/33
30May1996
SINGAPORE INVESTS INITSPEOPLE AND ECONOMY
TOCONTINUE STRONG GROWTH
Singapore 'srapid economic development overthepastfouryears islargely duetoitsopen
traderegime,prudenteconomicmanagementandgeographicpositioninthecentreofadynamicregional
market. Withitspolitical stability, well-developed infrastructure, highsavings ratesandample foreign
investment, Singapore isoneoftheworld 'sstrongest economies, saysanewWTO report.
TheWTO Secretariat 'sreport onSingapore 'stradepolicies andpractices notes thateconomic
growth hasaccelerated since 1992, withGDP increasing bymore than10percentayearin1993
and1994. Inorder tomaintain anannual growth rateof7to8percent-seenbySingapore tobethe
long-term realpotential ofitseconomy -thegovernment ispromoting education andtraining, and
encouraging research anddevelopment toupgrade technology. Inthefaceofrising production and
labour costs, therehasbeenashifttoward higher value-added activities. Labour-intensive production,
states thereport, hasmeanwhile gradually moved overseas tocountries withlower wage structures.
TheWTO report aswellasoneprepared bythegovernment ofSingapore willbethesubject
ofdiscussion attheWTO on3and4June.
IntheUruguay Round, Singapore increased itstariff bindings from lessthanonepercent
tonearly 70percentofalltarifflines. Itsaverage bound rateonindustrial products, onatrade-weighted
basis, willdecline from12.4to5.1percent.Currently, more than98percentofalltariff lineshave
duty-free treatment; duties existonlyonliquor, tobacco, petroleum products andmotor vehicles.
Singapore doesnotimpose anyduties onexports. Nearly 90percentofallfoodconsumed inSingapore
isimported.Withtheexceptionofrice,therearenoquantitativeimport,exportordomesticsalescontrols
onagriculturalproducts.Singaporemaintainsasystemofstrictsanitaryandphytosanitaryrequirements.
Thereport notes thatservices trade nowaccounts formore than60percentofSingapore 's
GDP. Finance, transport, telecommunications andtourism services haveexpanded rapidly. Withone
ofthebestportfacilities intheworld, Singapore isalsodeveloping rapidly asanaviation andmaritime
hub.Continual improvements arebeing made toharbour facilities andcustoms clearance provisions.
There arenorestrictions onforeign equity participation intheshipping sector; nordoesSingapore
apply anyrestrictive trade policy instruments tomaritime services noranysubsidies tothedomestic
shipping industry. Nopreferential treatment isgranted toeither domestic orforeign carriers. Airtraffic
regulations, including farestructures, arerelatively liberal andsubject tobilateral agreements.
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Foreign shareholding inSingapore Telecommunications islimited to40percent; for
telecommunicationservices,inwhichcompetitionhasbeenintroduced,theTelecommunicationsAuthority
ofSingapore (TAS) alsolimits foreign equity participation to49percent.
Financial services accounted for12percentofGDP in1993. Thereport notes thatthere is
amarked dichotomy between thetreatment ofdomestic banking andinsurance, where nonewentrants
arepermitted, andtheliberal treatment accorded tooffshore operations. Foreigners mayownupto
49percentofmoney-changing andremittance businesses; however, there isnolimit onforeign
ownership ofmoney-broking companies. Foreign firms mayhaveinternational membership inthe
Stock Exchange ofSingapore with100percentforeign equity.
Singapore isamember ofASEAN, whose members agreed in1992 toestablish theASEAN
FreeTrade Area (AFTA) by2008. In1995, thetarget datewasaccelerated to2003. TheCommon
Effective Preferential Tariff, thecoremechanism forimplementing AFTA, hasbeeninplace forthree
years. According tothereport, products covered byAFTA nowinclude unprocessed agricultural
products. ASEAN economic cooperation hasalsobeenextended toinclude services andintellectual
property rights. Singapore isamember oftheAsia-Pacific Economic Cooperation Forum (APEC).
While obligations toimplement theWTO 'sagreement ontrade-related aspects ofintellectual
property rights come intoforce inJanuary 2000, Singapore already provides bothcivilandcriminal
avenues fortheenforcement ofintellectual property rights. Civil remedies maybesought incourt at
thediscretion oftheintellectual property rightowners.
Singapore tabled aninitial offer inDecember 1995 tojointheGovernment Procurement
Agreement andhasstarted bilateral negotiations withother signatories.
Thereport concludes thattrading partners havebenefited from Singapore 'sopen andnon-
discriminatory trade régime andthattheincreased tariff bindings agreed intheUruguay Round are
anadded guarantee ofaccess toSingapore 'smarket. Withaveryhighreliance oninternational trade,
Singapore 'seconomic performance remains crucially dependent onanopenandpredictable international
environment. Accordingly, Singapore 'seconomy stands tobenefit fromthestrengthened trade rules
andimport liberalization measures established under WTO provisions.
Notes toEditors:
TheWTO Secretariat 'sreport, together withareport prepared bySingapore, willbediscussed
bytheWTO Trade Policy Review Body (TPRB) on3and4June1996. TheWTO 'sTPRB conducts
acollective evaluation ofthefullrange oftradepolicies andpractices ofeachWTO member atregular
periodic intervals andmonitors significant trends anddevelopments which mayhaveanimpact onthe
global trading system.
Tworeports, together withareport oftheTPRB 'sdiscussion andoftheChairman 'ssumming
up,willbepublished induecourse asthecomplete Trade Policy Review ofSingapore andwillbe
available fromtheWTO Secretariat, Centre William Rappard, 154ruedeLausanne, 1211Geneva 21.
Thereports cover development ofallaspects ofSingapore 'stradepolicies, including domestic
lawsandregulations, theinstitutional framework, trade policies bymeasure andbysector. Since the
WTO cameintoforce, the"new areas" ofservices tradeandtrade-related aspects ofintellectual property
rights arealsocovered. Attached arethesummary observations fromtheSecretariat andgovernment
reports. Fullreports willbeavailable forjournalists from theWTO Secretariat onrequest.
MOREPRESS/TPRB/33
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Since December 1989, thefollowing reports havebeencompleted: Argentina (1992), Australia
(1989 &1994), Austria (1992), Bangladesh (1992), Bolivia (1993), Brazil (1992), Cameroon (1995),
Canada (1990, 1992&1994), Chile (1991), Colombia (1990), Costa Rica(1995), Côted'Ivoire (1995),
Czech Republic (1996), Dominican Republic (1996), Egypt (1992), theEuropean Communities (1991,
1993 &1995), Finland (1992), Ghana (1992), Hong Kong (1990 &1994), Hungary (1991), Iceland
(1994), India (1993), Indonesia (1991 and1994), Israel (1994), Japan (1990, 1992 and1995), Kenya
(1993), Korea, Rep. of(1992), Macau (1994), Malaysia (1993), Mauritius (1995), Mexico (1993),
Morocco (1989 &1996), NewZealand (1990), Nigeria (1991), Norway (1991), Pakistan (1995), Peru
(1994), thePhilippines (1993), Poland (1993), Romania (1992), Senegal (1994), Singapore (1992),
Slovak Republic (1995), South Africa (1993), SriLanka (1995), Sweden (1990 &1994), Switzerland
(1991 &1996), Thailand (1991 &1995), Tunisia (1994), Turkey (1994), theUnited States (1989,
1992 &1994), Uganda (1995), Uruguay (1992), Venezuela (1996) andZimbabwe (1994).
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TRADE POLICY REVIEW BODY
SINGAPORE
Report bytheSecretariat -Summary Observations
Singapore inWorld Trade
Singapore 'scontinuing rapid economic development overthepastfouryears owes much to
itsopentrade régime, prudent, clearly directed economic management anditsposition inthecentre
ofadynamic regional market. Political stability andawell-developed infrastructure combine with
veryhighratesofsavings andinvestment andattractive investment incentives tomake theeconomy
oneofthestrongest intheworld.
Economic growth hasaccelerated since 1992, withrealGDP increasing byover10percent
ayearduring 1993 and1994 andunemployment atlessthan3percent.Substantial budget surpluses
andahighprivate savings rateunitetogiveaconsiderable excess ofsavings overdomestic investment;
thisiscounterbalanced bygrowing overseas investments. Taxpolicy seeks tolower income taxrates
andminimize disincentives while attracting foreign investment through taxconcessions. Prudent
monetary policy andtheappreciating Singapore dollar havekeptinflation low,despite rising unitlabour
costs. Ledbyexternal demand, Singapore 'sratiooftrade ingoods andservices toGDP hasgrown
stronglyoverthelastdecade,andnowexceeds500percent.Export-orientedmanufacturingandservices
havebeenthetwoengines ofgrowth.
Themain constraints onSingapore 'sexpansion continue tobeitssizeandlimited resources.
Strong economic growth hasledtorising costs ofproduction suchasrentals andlabour costs. The
authorities, whoregard arateof7to8percentasSingapore 'slong-term realpotential, areacting
toovercome these bottlenecks invarious ways, including promotion ofeducation andtraining,
employment ofmore part-timers andolder persons, encouragement ofresearch anddevelopment to
upgrade technology, andreclamation andother infrastructural work.
Singapore 'scurrent account hasbeeninsurplus since1988; thetradedeficit hasbeenfinanced
byasurplus onservices account, mainly fromtravel andshipping receipts, financial transactions and
netinvestment income. International reserves haveincreased steadily. Inrecent years, theshare of
mineral fuels intotaltrade hasdecreased, while those ofelectronic products andcomponents have
grown. Theshare ofintra-industry trade inthetotalincreased from 56percentin1985 to72per
centin1994, reflecting thegrowth oftheelectronics andelectrical engineering industries. ASEAN
isSingapore 'slargest export market, accounting for28percentofitstotalexports in1995; two-way
cross-border trade withMalaysia hasgrown significantly.
Legal andInstitutional Framework
Singapore hasaparliamentary system ofGovernment, withexecutive authority exercised by
theCabinet, chaired bythePrime Minister. Policy formulation isundertaken bytheMinistries, with
advice andmany aspects ofpolicy execution channelled through statutory boards linked tomain
ministries. TheSenior Minister advises Ministers onanyofthesubjects under theircharge.
TheMinistry ofTrade andIndustry (MTI) ismainly incharge oftheformulation oftradepolicy;
theSingapore Trade Development Board (TDB) isresponsible fortheimplementation oftradepolicies
andprogrammes fortradedevelopment, while theEconomic Development Board implements policies
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oninvestment incentives. TheDepartment ofCustoms andExcise, under theMinistry ofFinance,
administers thecollection ofduties oninternational trade andexcise duties. Service-related policies
aredivided among anumber ofMinistries andstatutory boards, although theMTIandtheTDB are
theco-ordinating agencies fornegotiations under theGATS. Awell-established structure exists for
regular consultation oneconomic andtrade policies between theGovernment andtheprivate sector;
apanel ofleading international businessmen, theInternational Advisory Council (IAC) wasformed
in1995 toadvise theGovernment oneconomic strategy.
Trade Policy Features andTrends
Multilateral trade policies
Singapore isafounding member oftheWTO, andplayed aleading rôleintheUruguay Round
negotiations. Although mostgoods enterdutyfree,previously almost noindustrial tariffs werebound;
asaresult oftheUruguay Round, Singapore hasincreased itstariff bindings from 0.5tonearly 70
percentoftarifflines. Thesimple average ofbound ratesacross allsectors is7.4percent. Singapore 's
bindings onindustrial products willincrease fromnearzeroto65percentofalllines, anditsaverage
bound rateonindustrial products, onatrade-weighted basis, willdecline from 12.4to5.1percent.
Singapore intends toimplement theTRIPS andCustoms Valuation Agreements within the
permitted transition period fordeveloping countries. Thus, forSingapore, obligations under these
Agreements willcome intoforce inJanuary 2000. Singapore provides bothcivilandcriminal avenues
fortheenforcement ofintellectual property rights. Civil remedies maybesought incourt atthe
discretion oftheintellectual property rightowners. Thepolice assist intellectual property rightowners
toexecute search warrants incopyright andtrade-mark cases torecover incriminating evidence.
Singapore isnegotiating accession tothePlurilateral Agreement onGovernment Procurement.
Inpractice, Singapore largely pursues freetrade ingoods. Since thelastreview, witheffect
from January 1994, import duties on406items were abolished. Currently, more than98percent
oftariff linesinSingapore haveduty-free treatment; onlyliquor, tobacco, petroleum products and
motor vehicles aredutiable. Theshareofcustoms andexcise duties ingovernment taxrevenue decreased
to8.4percentin1994.
ImportlicensingandcontrolprovisionsaremaintainedmainlytodischargeSingapore'sobligations
under international commitments orforpublic health, environmental, andsecurity considerations.
Imports ofproducts subject toimport licensing in1994 amounted to6percentofthetotal.
Standardsandstandard-settingprocessesareinlinewiththosepractisedinternationally.Stringent
sanitary andphytosanitary regulations aremaintained tosafeguard Singapore 'ssanitary status.
Government procurement guidelines donotprovide fordomestic preferences, except thoseagreed under
theASEANPreferentialTradingArrangements.Singaporedoesnotmaintainanylocal-contentschemes.
Singapore doesnotimpose anyduties onexports. Export control measures aremainly enforced
forpublic health, security andenvironmental considerations ortofulfil international commitments.
Singapore alsocurrently maintains fourbilateral export restraints covering textiles andclothing.
Duty drawbacks arenotused. Corporate taxconcessions maybegranted toexports by
manufacturing andservice companies. Though theMonetary Authority ofSingapore provides assistance
through arediscounting scheme toexporters forshort-term financing, thisisnotamajor component
ofexport financing. Noexport credit guarantees orinsurance schemes aremaintained; nordoes
Singaporeimposeexportperformancerequirements.Topromoteexports,theTDBprovidesinformation
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onmarket intelligence andbusiness opportunities toSingapore exporters. Singapore benefits from
GSPtreatment mainly intheEU,Japan andCanada; in1995, Singapore exported goods worth about
US$4.5 billion under preferences provided through theGSP, more thandouble thelevel of1990.
Singapore isamember oftheGSTP. Some ofSingapore 'sexports havealsobeensubject totrade
remedy actions incertain overseas markets.
Regional trade policies
Singapore isamember ofASEAN, whose members agreed in1992 toestablish theASEAN
FreeTrade Area (AFTA) by2008 (subsequently, in1995, accelerated to2003) andintroduced the
Common Effective Preferential Tariff (CEPT) in1993asthecoremechanism forimplementing AFTA.
Origin criteria toqualify fortariff preferences under theCEPT Scheme require aminimum of40per
centASEANcontent.ThecoverageofAFTAhasalsobeenexpandedtoincludeunprocessedagricultural
products andASEAN economic cooperation hasbeenextended tothefields ofservices andintellectual
property.
Singapore isalsoamember oftheAPEC Forum. Under the1994Bogor Declaration, APEC
istoachieve fullandopentrade andinvestment intheregion by2020. TheAPEC Osaka summit
meeting in1995resulted intheannouncement ofspecific "down-payments" ofinitial actions toliberalize
andfacilitate foreign trade andinvestment.
Trade andinvestment policies
Singapore 'srapid economic growth hasbeenassisted bymassive foreign direct investment
inflows; in1993, foreign-owned companies accounted forabout 85percentofdirect exports ofthe
manufacturing sector. Taxandnon-tax incentives aregranted toforeign andlocalfirms alike. Singapore
lawgenerally makes nodistinction between domestic investment andforeign investment; however,
limitations onforeign ownership existintelecommunications, financial services andthenational airline.
Sectoral policies
Agriculture
Agriculture isofverylimited significance totheSingapore economy, representing only
0.2percentofGDP. Approximately 90percentoffoodconsumed inSingapore isimported. In1995,
food, beverages andtobacco accounted for4percentoftotalimports. Tariffs areimposed ontobacco
products andliquor only. Withtheexception ofrice,therearenoquantitative import, export ordomestic
salescontrols onagricultural products; however, Singapore maintains asystem ofstrict sanitary and
phytosanitary requirements implemented through import licensing.
Industry
Themanufacturing sector performed robustly during the1990s, increasing itsshare ofGDP
tosome 25percent,withtradegrowing slightly faster thanproduction. Inthefaceofincreased labour
costs, lower value-added activities havebeengiving waytohigher value-added ones, while labour-
intensive operations havegradually moved overseas tolower labour costcountries. Overall industrial
performance wasboosted bystrong growth inelectronics, withincreasing intra-industry trade.
Major manufactured exports areelectronics, petroleum products andparts foroffice and
telecommunications equipment. Most manufactures areimported dutyfree; onlymotor vehicles and
motorcyclesaredutiable.Themainimportsareelectroniccomponents,crudepetroleum,dataprocessing
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machines andtelecommunication equipment. Imports ofcrude petroleum accounted for6percent
ofthetotal andpetroleum products represented 8percentofmerchandise exports. Trade in
petrochemicals, seenasakeysector inSingapore 'sfuture manufacturing development, increased
continuously intheearly 1990s, representing approximately 6percentofmerchandise trade in1994.
During the1990s, textile imports haveoutpaced textile exports, andtheearlier surplus inclothing trade
became adeficit in1994.
Theauthorities haveselected 14industrial clusters, comprising more thantwothirds ofGDP,
forinvestment instrategic projects. Many government agencies orstatutory boards act,through their
owninvestments insome activities, ascatalysts toindustrial development intheclusters. TheSkills
DevelopmentFundprovidesfinancialincentivestoemployersforthedevelopmentofskillsandexpertise.
TheTaskForce onInstitutional Reform forProductivity andQuality Improvements wassetupin1995
topromote greater productivity andquality.
Assistance, largely given through taxincentives, islargely aimed atsupporting newprojects
leading totechnological development orhigher value-added activities. Companies withpioneer status
maybeexempted from corporate taxforaperiod offivetotenyears. Asapost-pioneer incentive,
areduced corporate taxrateof15percentmaybegranted forafurther 10years. Loans andtechnical
assistance areextended tosmall andmedium-sized localenterprises topurchase machinery andpremises.
Price controls apply towater andbasic telecommunications.
Services
Services contribute more than60percenttoSingapore 'sGDP. Their overall growth has
beenunderpinned byrapid expansion offinance, transport andtelecommunications. These sectors
havealsoledproductivity growth; value-added peremployee inthefinancial sector wasthree times
theaverage in1994, while thatintransport andtelecommunications was1.6times theaverage.
Singapore isamajor tourist destination; thebalance oftravel hasrecorded continuous surpluses
overthepastdecade, though theshare ofthissurplus inGDP decreased during theearly 1990s. The
contribution oftransport andcommunications toGDPbetween 1990and1994wasapproximately 12-13
percentonaverage. Singapore hasoneofthebestportfacilities intheworld, andisdeveloping rapidly
asanaviation andmaritime hub; continual improvements arebeing made toharbour facilities and
customs clearance provisions. There arenorestrictions onforeign equity participation intheshipping
sector; nordoesSingapore apply anyrestrictive trade policy instruments tomaritime services nor
anysubsidies tothedomestic shipping industry. Nopreferential treatment isgranted toeither domestic
orforeign carriers andtherearenoobligations ondomestic operators toemploy specified carriers for
specified transport. Airtraffic regulations, including farestructures, arealsorelatively liberal, subject
tobilateral agreements. Toalleviate domestic landtraffic congestion, theGovernment regulates private
vehicle numbers through ownership measures suchastheVehicle Quota System.
Provision oftelecommunication services isinmost cases subject tolicensing bythe
Telecommunications Authority ofSingapore. Alltelecommunication services regarded asvitalin
promotingindustry,infrastructureandbusinessesaresubjecttoregulatorypricecontrol.Underitspublic
telecommunication operator 'slicence, Singapore Telecommunications, privatized inOctober 1993,
hastheexclusive right toprovide certain basic telecommunication services forawhile. Foreign
shareholding inSingapore Telecommunications islimited to40percent;fortelecommunication services
inwhich competition hasbeenintroduced, theTASalsolimits foreign equity participation to49per
cent.
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Financial services accounted for12percentofGDP in1993. TheMonetary Authority of
Singapore (MA) isresponsible fortheformulation offinancial services policies andregulation ofthe
sector. There isamarked dichotomy between thetreatment ofdomestic banking andinsurance, where
nonewentrants arepermitted, andtheliberal treatment accorded tooffshore operations. Theprior
approval oftheMAisrequired foracquisition ofshareholdings of5percentormore inbanks
incorporated inSingapore; asingle orrelated group offoreign shareholders mayonlyholdupto5
percentofalocalbank'sshares, while aggregate foreign ownership ofdomestic banks islimited to
40percentandinlocally owned finance companies to20percent. Foreigners mayownupto49
percentofmoney-changing andremittance businesses; however, thereisnolimitonforeign ownership
ofmoney-broking companies. Foreign firms mayhaveinternational membership intheStock Exchange
ofSingapore with100percentforeign equity.
ThePublic Accountants 'Board ofSingapore recognizes themajor professional qualifications
foraccountants andactuaries. Foreign seafarers holding valid andappropriate certificates issued by
theircountries arepermitted toserve onSingapore-registered vessels. Some professional service
providers suchasengineering, landsurveyors andarchitects mayapply forregistration intheappropriate
boards inSingapore.
Emergency measures
Noimport relief hasbeengranted intheformofsafeguards orcountervailing measures. Anti-
dumping duties wereimposed ontheimports ofcertain steelreinforcing barsfromMalaysia andTurkey
in1995.
Trade Policies andForeign Trading Partners
Singapore isalready atalevel comparable tomany developed economies interms ofGDP
percapita, andgrowth ofGDP isamong thehighest intheworld. Inthe1990s, Singapore aimsto
furtherdevelopthepopulation'seducationandskilllevel,rangeandsophisticationofeconomicactivities,
andimprove thelevelofproductivity andstandard ofliving. Toachieve thisgoal, theGovernment
plans toinvest heavily ineducation, training andre-training andaimstoraisetheproportion ofthe
young agegroup withpost-secondary training to85percentbytheyear2000. Singapore iscurrently
studying theissue ofaccession totheOECD.
Foreign trading partners havebenefited fromSingapore 'sopenandnon-discriminatory trade
régime. Theincreased tariff bindings agreed intheUruguay Round areanadded guarantee ofaccess
toSingapore'smarket.Withveryhighrelianceoninternationaltrade,Singapore'seconomicperformance
remains crucially dependent onanopen andpredictable international environment. Accordingly,
Singapore 'seconomy stands tobenefit from thestrengthened trade rules andimport liberalization
measures established under WTO provisions.
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TRADE POLICY REVIEW
SINGAPORE
Report bytheGovernment -Summary Extracts
Thisreport bytheGovernment ofSingapore focuses ondevelopments since thefirstreview
in1992 ofSingapore 'strade policies withrespect totheirobjectives, formulation andcoordination.
Inlinewiththeexpanded coverage oftheWorld Trade Organization (WTO), thisreport alsocovers
thenewareas ofservices andintellectual property.
Theprimary objective ofSingapore 'strade policies remains unchanged, i.e.tomaintain an
opentrading régime sothattradegrowth contributes tosustainable non-inflationary economic growth
inthelongterm. Fortheperiod 1992-1995, theSingapore economy registered double-digit growth
of10.4and10.2percentintheyears 1993 and1994 before moderating toamore sustainable rate
of8.9percentin1995.
Theeconomy benefited fromstrong regional growth andafavourable global electronics cycle,
withgrowth being ledbythemanufacturing, andtransport andcommunications sectors. Theother
keysectors alsorecorded good growth in1995. theeconomy isprojected togrow at7-8percentin
1996.
Singapore 'strade alsoenjoyed robust growth; itwasranked asthe12thlargest exporter and
importer in1994bytheWTO, from the18thand15thpositions heldrespectively in1990. TheUS,
theEU,Japan, Malaysia andHong Kong remained Singapore 'stoptrading partners. Theshare of
Singapore 'sglobal exports andimports withthese countries were66and70percentrespectively over
theperiod of1992-1995. Singapore alsoaccounted for53percentofintra-ASEAN trade in1994.
Inaddition, Singapore continued toenjoy increasing tradewiththeEastAsian markets ofChina, South
Korea andTaiwan.
InlinewithSingapore 'sfirmcommitment totrade liberalization withthemultilateral trading
system, itparticipated actively intheUruguay Round (UR) ofmultilateral trade negotiations which
wereconcluded during theperiod under review. Among Singapore 'smostsignificant commitments
wasitssubstantial increase inthescope ofbindings from 0.5percentpre-UR to70percentofall
itstariff lines. Inservices, Singapore committed tomaintain itspresent levelofopenness inawide
range ofsectors including business services, communication services, construction andengineering
related services, financial services, environmental services, tourism andtravel-related services, and
transport services.
Singapore believes thattheWTO Agreement willhaveapositive impact onitstrade. Itis
estimated thatthefullimplementation oftariff commitments bymember countries would result in
accumulated potential tariff savings ofatleastUS$333 million forSingapore 'sexports toitsmajor
markets. Singapore alsoanticipates benefits stemming from enhanced market access, improved
transparency andamore efficient andexpeditious dispute settlement mechanism inthepost-UR era.
There havebeensome keydevelopments intradepolicy measures sincethefirstreview. Import
duties on406items wereabolished inJanuary 1994. Asaresult almost all(about 98percentofall)
imports enterSingapore duty-free. Another significant development isSingapore 'simminent accession
tothe1994 Agreement onGovernment Procurement. Already anobserver intheCommittee on
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Government Procurement, Singapore hasstarted bilateral negotiations withsignatories following its
tabling ofinitial offers inDecember 1995.
Theservices sector accounted for74percentofSingapore 'sGDP in1995. Themajor
sub-sectorswerefinancialandbusinessservices,commerce,transportandcommunications.Singapore's
aimistobeavalue-adding node fortrade, logistics, financial services, headquarters services,
communications andinformation. Infrastructure andmanpower resources continue tobedeveloped
intheseareas.SingaporehasalsomadecommitmentsundertheGeneralAgreementonTradeinServices
(GATS),viewingitasanimportantachievementoftheUR,andattachinggreatimportancetoitseffective
implementation. ItisSingapore 'shopethattheoutstanding sectoral negotiations willbesuccessfully
concluded.
Singapore 'sexisting legislation governing thevarious aspects ofintellectual property rights
arebeing reviewed inlightoftheAgreement onTrade-Related Aspects ofIntellectual Property Rights
(TRIPs). Singapore hasestablished anInter-Ministry Committee (IMC) toreview thelegislation and
torecommend changes required tomeettheobligations under theTRIPs Agreement. Oneofthefirst
tasks oftheIMCwastheamendment ofSingapore 'sPatent Actwhich came intoeffect on1January
1996.
Thechallenge forSingapore liesincontinuing tosecure access foritsproducts andservices
totheglobal market. Tothisend,Singapore aimstomaintain itscompetitive edgebyadhering to
freemarket principles, opencompetition andrational economic policies, aswellasinvesting inhuman
resources, infrastructure, technology andinnovation. Singapore 'sability tosellitsproducts andservices
depends onabarrier-free world trading environment. Inthatrespect, Singapore isfirmly committed
tothemultilateral trading system astheprincipal andmosteffective platform fortradeandinvestment
liberalization. Singapore alsosupports regional initiatives thatcomplement andhelpcatalyse theprocess
oftrade liberalization atthemultilateral level. Itisonthebasisofthisprinciple thatSingapore plays
anactive rôleinregional groupings suchasASEAN andAPEC. Singapore alsolooks forward toa
successful inaugural WTO Ministerial Conference (MC) inDecember thisyearthatwould serve as
amodel forsubsequent MCs andprovide newimpetus toglobal trade liberalization.
END