BUYUSA.GOV -- U.S. Commercial Service

Singapore Local time: 03:53 PM

LEADING SECTORS FOR U.S. EXPORTS IN SINGAPORE

The best prospects sectors for Singapore include electronic components, aircraft and parts, electronics industry production/testing equipment, laboratory and scientific instruments, pollution control equipment, electric power systems, construction equipment and building products, pumps and valves, medical devices, telecommunication equipment and computer hardware and software, university education services and franchising.  CLICK on the links below for market information on some of the sectors.

AIRCRAFT AND PARTS (AIR)

Overview
Singapore leads the rest of Asia in aircraft maintenance, engine repair, component repair and overhaul capabilities.  It is well placed to maintain its leadership position to capture a larger slice of the $40.8 billion global commercial maintenance repair and overhaul (MRO) market, which is expected to grow at 3.6% a year to $58 billion over the next 10 years.

Singapore's MRO sector had an output of $4.5 billion and employed some 18,000 workers in 2006.  Independent and airline MRO operators accounted for about 36% of revenue, while original equipment manufactures (OEMs) took up 34%.  In terms of activities, engine overhaul is the single biggest segment, accounting for 48% of the total revenue and component repair accounted for 26%.

By 2018, Singapore's aerospace output is expected to double to $9.0 billion, according to projections by the Singapore Economic Development Board.  This growth will be fuelled, among other factors, by the expansion of low-cost carriers that typically outsource to cut costs, and the arrival of new aircraft such as the Boeing 787 and Airbus 380 needing new maintenance and support equipment and expertise that airlines may not want to invest in.

OIL & GAS (OGS)

Overview
Singapore has become one of the most important shipping centers in Asia and is one of the top three global oil trading and global refining hubs.  Singapore has a total crude oil refining capacity more than 1.35 million barrels per day (bbl/d).  Its three main refineries are ExxonMobil's 625,000-bbl/d refinery at Pulau Ayer Chawan, Royal Dutch/Shell's 465,000-bbl/d refinery on Pulau Bukom and the Singapore Refining Company's (SRC) 275,000-bbl/d refinery on Pulau Merlimau.  Recently, Singapore embarked on a diversification strategy for gas imports by building a liquefied natural gas (LNG) import terminal.

LABORATORY & SCIENTIFIC INSTRUMENTS (LAB)

Overview
Total imports of laboratory and scientific equipment increased by 15% in 2006. Based on available trade figures for 2007 and market expectations for 2008, imports are expected to increase by at least a further 5%.  Industry sources attribute this pick-up to the recovery and sustained pick-up of activity in the electronics, chemicals, petrochemicals and the biomedical sciences.  Imports from the United States continues to dominate in the area of laboratory and scientific equipment and accounts for 43% of total market share.  Regional economies are experiencing sustained growth and with the weaker U.S. dollar and an already strong preference for American manufactured products and equipment, particularly in the field of laboratory and instrumentation, U.S. imports of laboratory and scientific equipment are expected to increase.

TELECOMMUNICATION EQUIPMENT (TEL)

Overview
Singapore is one of the most wired countries in the world.  In December 2007, mobile phone penetration hit 122.5% and household broadband penetration rate reached 79.2%.  There are more than 6,200 public Wi-Fi hotspots island wide, which means there are more than 22 wireless LAN hotspots for every square mile of the country.  Singapore has a well developed network of fiber optics cables that span the country.  'Cyber cafes' are popular, and Internet connections are available in most hotels.  3.5G networks based on the High-Speed Downlink Packet Access (HSDPA) standard as well as Worldwide Interoperability for Microwave Acces (WiMAX) networks are being progressively deployed in the country.  With total submarine cable capacity of 28 Tbps3 and direct interntional Internet connectivity of 25 Gbps3, Singapore is well positioned as a hub for international capacity as well as a transcable hub where regional submarine cable systems and international cable systems interconnect.

POLLUTION CONTROL EQUIPMENT (POL)

Overview
The environmental industry has been designated by Singapore as a strategic growth area to help the country diversify its economy.  Government development spending on environment and water resources has grown substantially over the past few years.

Water has been identified as an engine of growth for the economy and about $228 million will be pumped into promoting water R&D in Singapore over the next five years.  In line with this, the Environment and Wter Industry Development Council (EWI) was set up to help drive Singapore's goal to be a global hub for water technologies.

The importance of sustainable development and climate change in Asia has also raised awareness of the need to protect the region's environmental factors into development processes in recognition of the merits of sustainable development.  Measures that have some impact on greenhouse gas production have included the effort to encourage recycling of waste, targeted to reach 60% by 2012 (compared to 40% in 2000); investment in better insulated and elss energy-hungry buildings in the public sector; the voluntary labeling scheme indicating the energy consumption levels of air conditioning and refrigerator units to help public make better-informed decisions; and encouragement of more eco-friendly vehicle use through a "green vehicle rebate".

At present, Singapore appears to be more interested in solar panel technology as a potential future export-geared business than a supplementary energy provider, and its wind and water power potential are negligible.

MEDICAL DEVICES (MED)

Overview
Singapore's healthcare services are comparable to those of other industrialized economies.  The government spends approximately 3.8% of GDP annually on healthcare.

In 2006, U.S. exports of medical equipment and supplies to Singapore registered a healthy increase of approximately 30% from 2005, with total imports from the United States at US$327 million.  This was due to the economic recovery in Singapore and the region.  There was also a corresponding increase in total imports though imports from the United States rose more significantly, with the United States capturing a 24% market share.  Based on available trade figures for 2007 and market expectations for 2008, U.S. export of medical equipment to Singapore is expected to again register an increase.  Overall, the regional economies have been steadily improving and thriving, and this is expected to translate into more transshipments through Singapore as the island-state is viewed as a major trade hub and launching pad into the region.

The Singapore Parliament passed the Health Products Act in February 2007 and medical devices was the first health product group to be regulated under the Act.  Singapore's Health Sciences Authority (HSA), through its Centre for Medical Devices Regulation (CMDR), will oversee the system of statutory control aimed to safeguard the quality, safety and efficacy of medical devices - from high-risk stents for heart surgery to low-risk ones like mechanical wheelchairs - will need to be licensed.  The control measures will keep pace with global trends and standards and the agency will take into consideration the regulatory decisions of benchmark agencies like those of the U.S. Food & Drug Administration, the U.K. Medicines Control Agency, Therapeutic Goods Administration of Australia and the European Agency for the Evaluation of Medicinal Products.

COMPUTER HARDWARD AND SOFTWARE (CPT / CSF)

Overview
Singapore is a mature and sophisticated market for IT products and services.  According to the 2006 survey carried out by the Infocomm Development Authority (IDA) of singapore, 77% of Singaporean households owned at least one home computer and almost 9 in 10 households with school-going children had access to a home computer.  Seventy-one percent of households had home Internet access and in these homes, almost all (97%) used computers as the mode of access while 9%  used Internet-enabled cell phones.  Usage of computers was 100% in businesses with more than 250 employeess but the usage level declined to 62% for companies with fewer than 10 employees.  Usage of Infocomm network technologies was similarly higher for larger companies.  Details on infocomm usage in households and by individuals as well as businesses can be found at http://www.ida.gov.sg/Publications/20061205092557.aspx.

ELECTRONICS COMPONENTS (ELC)

Overview
Singapore's manufacturing sector has emerged as a regional economic powerhouse contributing at least 25% to the Gross Domestic Product (GDP).  A large component of this sector - electronics - has attracted major foreign investments as well as value-added output and employment.  Singapore-based electronics manufacturers have earned 10% global market share for semiconductor wafer foundry output and 25% global market share for printers.  The world's top three wafer foundry companies, top three sub-contract assembly-and-test companies, and top four fabless integrated circuit (IC) design companies all have facilities in Singapore.

EDUCATION / TRAINING SERVICES (EDS)

Overview
With the second highest per capita income in Asia of US$30,000 and a relatively high standard of English, Singapore offers an attractive market for U.S. universities and colleges seeking to recruit international students.  In addition, Singaporeans regard the United States as the leader in technology and management education so they value opportunities to pursue undergraduate and graduate degree programs at U.S. educational institutions.  The below table shows the number of student visas issued over the past six years based on press reports.

Singapore emphasizes, supports and values higher education and human resource development.  Many government agencies and private sector companies also offer full scholarships for top students to pursue their undergraduate and graduate studies in foreign universities, including in the United States.

FRANCHISING (FRA)

Overview
Singapore's consumers enjoy one of the highest standards of living in the world, with a per capita Gross Domestic Product of US$30,000.  Despite a population of only 4.68 million (including permanent residents and foreign workers), Singapore is home to over 400 franchises from around the world.  The United States dominates franchise concepts in Singapore and is expected to continue to be the market leader.  There are American franchises in practically every industry.  McDonald's, Starbucks, Ben and Jerrys, Carls' Jr., Mister Minit, Avis, Hertz, Holiday Inn, Toys R US, and many others have operations in Singapore.  Other U.S. franchises include On-line Trading Academy, Comfort Keepers, and Contours Express.  The Government of Singapore actively promotes the growing number of indigenous franchise concepts in the country.  It wants to develop Singapore into an international franchise hub to showcase international franchises and to use Singapore as a launching pad for local and foreign franchisors expanding into the region.  The Franchising and Licensing Association of Signapore estimates that sales turnover of Singapore-based franchises accounts for 18% of the total domestic retail sales and amounted to S$5.48 billion (US$3.58) in 2006.

Please feel free to contact us directly if you have questions:

Your Industry Specialists

Ms. CHIA Swee Hoon, Senior Commercial Specialist

Industries:
INFORMATION TECHNOLOGY/BUSINESS SERVICES(telecommunications equipment & services; computers, peripherals & software (home, office); information services; media services; film and media technology & services; advertising & public relations services; franchising; management consulting; legal services; leasing services; employment services; investment services; financial & insurance services; audio equipment, films & video; photographic equipment & supplies),
CONSUMER ELECTRONICS,
STANDARD ISSUES,
ENTERTAINMENT VENUES - Casinos/Theme Parks

NG Haw Cheng, Commercial Specialist

Industries:
BUILDING/CONSTRUCTION(construction equipment and supplies; building products & equipment; architectural/construction/engineering services; sanitation equipment & products; cleaning products and services; commercial laundry equipment; cleaners - commercial/industrial; wipes for commercial use; industrial cleaning services; hand/power tools - construction; real estate; interior decoration);
ENVIRONMENT PROTECTION (environmental protection technology - recycling, waste management, pollution control; environmental control services);
SEA/AIR/LAND TRANSPORTATION, (public transport vehicles, rail; ports & shipbuilding; marine technology; automobiles, trucks, vans; automobiles, automotive parts & services; boats and accessories; airport ground support vehicles; air traffic control equipment; aircraft and parts, avionics; safety & security equipment; defense technology & equipment; transportation services; air-conditioning - cold rooms; commercial fishing equipment; commercial vessels & equipment; aircraft maintenance)
WAREHOUSING

CHAN Yiu Kei, Commercial Specialist

Industries:
MANUFACTURING & TECHNOLOGY (materials handling; machine/manufacturing tools and metalworking equipment; paper & printing and graphic arts machinery; plastics & plastics production machinery; chemicals & chemical production machinery; textile machinery; general industrial equipment & supplies; materials technology - advanced materials, composite fibers, ceramics; industrial automation/robotics; industrial process controls; electronic production and test equipment & supplies; electronic components - active/passive, electro-mechanical, sensors; bearings - ball & roller; plant maintenance equipment; hand/power tools - mechanic; hand/power tools - metalworking; fasteners - industrial; heaters - commercial/industrial; heating equipment - industrial; leather processing equipment; rolling mill machinery; rubber products - industrial),
EDUCATION/TRAINING(educational & training services),
POWER/UTILITIES utilities; energy - electricity, wind, solar, gas, etc; power generation & distribution; power transmission; pumps, valves, compressors; mechanical power transmission product; smelting equipment; hardware - milled non-ferrous, ferrous),
TRAVEL & TOURISM

Ms. Luanne THESEIRA, Commercial Specialist

Industries:
HEALTH/MEDICAL/SCIENTIFIC(dental equipment; medical equipment, supplies, furniture; healthcare services; drugs and pharmaceuticals; vitamins/minerals supplements, health foods; biotechnology; veterinary equipment & supplies; general science & technology; bio-medical equipment maintenance; laboratory and scientific instruments);
CONSUMER GOODS & SERVICES(apparel; jewelry; leather, fur and footwear; home textiles, fabrics, yarns, textiles & textile products; household consumer goods; giftware, stationery; office and school equipment & supplies; do-it-yourself products/tools; retailing; cosmetics & toiletries; spa equipment/beauty salon equipment & accessories; eyewear; sporting goods, golf, fitness; equestrian goods and outdoor equipment; toys and games; musical instruments; books and periodicals; artwork; pet supplies gardening tools and supplies);
FOOD PROCESSING, PACKING & SERVICES(processed food; food processing & packaging machinery and equipment; hotel & restaurant equipment; beverage technology; food vending machines, agriculture and forestry machinery; agriculture services; furniture; hotel & restaurant management).