Overview

The Republic of Singapore occupies approximately 250 square miles of land on the southern tip of the Malay Peninsula, and is comprised of one major island and around 50 islets. It has been an independent state since 1965 and is separated from Malaysia to the north by the Johore Strait and from the Islands of Indonesia to the south by the Singapore Strait. The country has four official languages; Mandarin, English, Malay and Tamil and several other Chinese dialects are also widely spoken. According to figures published by the Singapore Department of Statistics for 2005, the country has a population of just over 4.35 million people; nearly a fifth of which is made up of foreign nationals resident in Singapore for a year or more. Singapore City is the country's capital, although the distinction between Singapore and Singapore City has practically vanished as urbanisation has spread over nearly the entire island and today Singapore is largely regarded as a city-state. The IMD World Competitiveness Scoreboard 2005 ranked Singapore as the 3rd most competitive country in the world, based on factors such as economic performance, government efficiency, business efficiency and infrastructure. In the previous year Singapore was ranked in second place.

Economy

Figures for 2004 from the Department of Statistics show the country's GDP to be in the region of 107,739.9 million USD and inflation to be 1.7 per cent. Per capita GDP is one of the highest in the world, at nearly 25,409 USD.

Singapore's economy is primarily based on trade, shipbuilding and repairing, oil refining, electronics, information technology, banking and finance. Due to its location on the major sea route between India and China and superb natural harbour, trade has been especially crucial to Singapore's economic success and re-export trade accounts for almost half of all trade. However, Singapore's export orientated economy has caused problems in recent years, and in 2001 the economy shrank by just over 2 per as a result of the global recession. In response to this, and also as a result of stiffer competition from lower cost countries for exports and investment, the government is endeavouring to build on Singapore's trading strength and promote a technology and innovation driven knowledge based economy.

As part of these plans Singapore actively recruits multinational companies to set up knowledge intensive manufacturing and service operations or headquarters to manage their regional or global activities. Sectors that were previously restricted to foreign investment such as telecommunications and power have now been opened up, although the government retains discretionary licensing authority in these sectors. Restrictions on foreign investment still exist in broadcasting, domestic news media, retail banking, defence and water distribution and property ownership. The recruitment of foreign companies has led the manufacturing sector of Singapore's economy to be dominated by foreign multinational corporations and foreign banks, financial institutions, legal and accounting firms also figure largely in the financial and business services sectors. Large corporations entirely or partly owned by the government are found in all the major sectors of the economy.

Infrastructure

The port at Singapore is one of the busiest in the world, with several terminals capable of accommodating all types of vessels from container ships to bulk carriers, cargo freighters, coasters and lighters. It also has a terminal dedicated to passenger liners as well as regional and domestic ferries. The port is a principle centre for shipping activities in Southeast Asia and is well placed to take advantage of the ASEAN Free Trade Area (AFTA), which came into effect on January 1st 2003 some five years ahead of schedule. Some 400 shipping lines link Singapore to more than 700 ports in 130 countries worldwide, and in 2001 the port handled some 313,487,000 tonnes of cargo.

There are several airports located throughout Singapore, the main three being Changi, Paya Lebar and Tengah. Changi Airport, just 20 minutes drive from the centre of Singapore city, is a major hub in the Asia Pacific region and is a consistent winner of numerous international awards including being voted 'Best Airport Worldwide' and 'Best Airport Asia Pacific' by the International Air Travel Association in 1997, 1998 and 2000. There are over 3,000 scheduled flights a week at Changi to 140 destinations in nearly 50 countries and in 2001 more than 28 million passengers and 1.5 million tonnes of freight passed through the airport. A third terminal is currently under construction and is due for completion in 2008. The terminal will increase the airport's capacity by 20 million, to 64 million passengers a year.

Singapore's public transport system is both efficient and reliable. The Mass Rapid Transit (MRT) system, which consists of two main lines, connects the main population and business centres and is fed by the Light Rail Transit (LRT) system. In addition, buses and taxis service the entire island and are reasonably priced. The government is also investing heavily in transport infrastructure, which due to the limited land available and also to environmental constraints, is largely centred on developing rail transit.

Workforce

According to the Singapore Department of Statistics the country's labour force was just over 2.3 million in 2004, while the unemployment rate was estimated to be in the region of 3.4 per cent. The general level of education is good with a literacy rate of over 93 per cent and 55 per cent of the population having at least secondary qualifications. The government is committed to ensuring the workforce is sufficiently skilled to cope with a growth in the demand for IT manpower, which is expected to increase by 10 to 12 per cent per annum. Strategies being employed to do this include attracting and retaining international ICT talent, enhancing the environment to nurture a 'Net-savvy' workforce and establishing Singapore as the electronic learning hub for the region. According to the government, the school curriculum will soon be 30 percent computer-based.

Standard of Living

Singapore is one of the most advanced and cosmopolitan cities in South East Asia, with a standard of living comparable to North America and Western Europe. The city is ranked joint 34th in the world, along with Tokyo, in the quality of life report published by Mercer Human Resource Consulting in 2005. The report was based on the evaluation of 39 criteria such as political, social, economic and environmental factors as well as personal safety, health, education, transport and several other public services. The city scored a total of 101points, compared to 106.5 points for the joint first placed cities of Geneva and Zurich. In Mercer's Cost of Living survey for 2005, Singapore moved up 12 places from the previous year to 34th most expensive city with a score of 88, which was a joint placing with Frankfurt. Tokyo is the most expensive city with a score of 134.7.

Singapore is noted for its healthcare sector. Each year, more than 200,000 people from around the world come to Singapore for quality medical care. Patients receive quality healthcare and advanced treatments delivered by the region`s leading medical professionals in an environment that is safe, efficient and clean. The nation offers a vast pool of expertise and the availability of state-of-the-art diagnostic and treatment facilities.

Home to a growing number of leading biomedical companies including Eli Lilly and Novartis, Singapore is actively advancing the application of biomedical research in healthcare. With world-class research capabilities in genomics, molecular biology, bioengineering/nanotechnology and the setting up of the Biopolis for biomedical research activities, Singapore is extending its capabilities from basic research to clinical trials and healthcare delivery.

All of these enable Singapore`s healthcare professionals to provide the latest innovative treatments and therapies, enhancing the city`s reputation as one of the leading hubs for healthcare in Asia.

Singapore also promotes an environment that sets and enforces standards to safeguard public health and ensure efficiency. Administered by highly trained and experienced professionals, this healthcare system allows patients faster access to safe new treatments and healthcare products. The Health Sciences Authority (HSA) establishes regulatory standards pertaining to drug evaluation, pharmaceutical administration, medical devices, forensic science and medicine, and transfusion medicine.

Business Costs

In a report published in 2005 by one of the world's leading real estate advisory companies, CB Richard Ellis, the total office occupancy cost in Singapore city was $33.71 per square foot per annum, compared with a cost of $131.1 in central Tokyo, $75.85 in Hong Kong, $34.45 in Beijing and $40.45 in Sydney. The report included factors such as maintenance costs and property taxes in addition to rent.

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