SINGAPORE AN OVERVIEW

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BRIEFING FOR East Midlands Healthcare
Seminar AMANDA BROOKS Deputy High Commissioner
and Director of Trade and Investment 11 February
2009
SINGAPOREAN OVERVIEW British High
Commissioner Mr Alan Hunt CMG
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Singapore -

• 4.8m people
• 1.0m foreigners (talent and manual workers),
  22,000 British residents.
• 3.6m Singapore Residents
• 77 Chinese
• 14 Malay
• 8 Indian
• 10.1m visitors in 2008

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Malaysia -

• 27.5 million - mostly in Peninsular Malaysia
• - 66 Malay
• 25 Chinese
• 8 Indian
• 12000 Malaysian studying in UK every year

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Source IMF
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Singapore - a strong economy

• Government commitment to creating first world
  country in a third world region
• Excellent infrastructure
• Strong encouragement to investment by foreign
  MNCs
• High educational standards
• High savings through Central Provident Fund
• By 2007, Singapore the worlds 15th largest
  trading nation. Trade gt 3.5 x GDP

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Singapore ECONOMIC TRENDS

• 1965-2006 Annual Average Growth rate of 8
• Came through Asian crisis well
• Economy grew 10 in 2000...
• but shrunk 2 in 2001
• Returned to growth in 2002 (4.2)
• 2007 7.7
• 2008 1.5 forecast
• 2009 -5.0 to -2 forecast
• But longer term forecasts better!

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Malaysia ECONOMIC TRENDS

• 2007 6.3 growth rate
• 2008 5 (projected)
• 2009 1.3 to 3.5 forecast

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Stimulus Packages Singapore Malaysia

• RM7 billion (1.2 billion) announced in Nov 08
• 0.9 of GDP 2nd package expected mid 2009
• Key initiatives
• Reduction in employee provident fund contribution
  from 11 to 8 to boost spending
• Introduction of open tendering for government
  projects
• Abolition of import duty for cement etc
• More funding for schools
• Easing rules for foreigners to buy commercial
  land

• S20.5 billion (9.8 billion) Resilience
• Package announced on 22 Jan 09
• At over 8 of GDP, focus is on jobs and cash-flow
  
• Key initiatives
• Jobs Credit Scheme cash grant of 12 of wages to
  keep locals on payroll
• Cut in corporate income tax from 18 to 17
• Co-sharing (80) of risks to encourage bank
  lending
• Co-sharing (75) of risks of trade financing
• Public sector projects worth S18-20 billion in
  2009

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British interests in Singapore

• By far our largest trading partner in South East
  Asia
• Our 5th largest market outside of Europe
• In 2007, UK exports 5.8 billion
• 3.3 billion UK exports of services (second only
  to Japan in Asia Pacific)
• UK largest foreign direct investor
• 700 companies, investing 23 billion
• Many British firms use Singapore as their
  regional HQ
• Strong and active British Chamber of Commerce

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UK-Singapore Investment Relationship
Source Singapore's Department of Statistics
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DOING BUSINESS HERE - THE OPPORTUNITIES

• A very open domestic market
• Business Friendly Tax Regime
• - Corporate tax rate 18
• - Capital gains Nil
• And a gateway into the region
• 40 of Singapores imports are re-exported
• Regional hub for services

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DOING BUSINESS HERE - THE CHALLENGES

• Doing business here is relatively straightforward
• Highly competitive, price sensitive market
• Building relationships is very important