FIN 480

Assignment on country analysis of Singapore

Introduction:
The Republic of Singapore is named "Lion City" Malay name. The city-state is made up of a few
islands on the tip of peninsula Malaysia. The main island of Singapore, with GPS coordinates 1°
17' 24.9720'' N and 103° 51' 7.0524'' E, is 49 kilometers (30.45 miles) east to west, 25 kilometers
(15.53 miles) north to south, has a coastline of 197 kilometers (122.41 miles) and a land area of
719.2 square kilometers (277.68 square miles). It has the second greatest population
concentration in the world. The country has nearly 5.7 million citizens, 61% (3.4 million) of
whom are Singaporean citizens. More than 1.6 million are foreigners who are working, studying
or living in Singapore. There are four authorized languages of Singapore: English, Malay,
Chinese and Tamil, with English being the lingua franca. Multiracialism is cherished in the
composition, and remains to shape national policies in education, housing, and politics.

History:

The modern Singapore was founded in 1819 by Sir Stamford Raffles as an exchange post of the
British Empire. After 1867, the colonies in East Asia were restructured then Singapore came
under the direct control of Britain as part of the Straits Settlements. For the duration of the
Second World War, Singapore was occupied by Japan in 1942, but reverted to British control as
an isolated crown colony after Japan's surrender in 1945. Singapore enlarged self-governance in
1959, and in 1963 converted part of the new federation of Malaysia, alongside Malaya, North
Borneo, and Sarawak. Singapore befitted independent as the Republic of Singapore on 9 August
1965.
Geography:
Singapore contains of 63 islands. The main island is Pulau Ujong. Singapore has a tropical
rainforest climate.
Religion: Buddhism is the mostly followed religion in Singapore. But Islam, Christian and
Hinduism religion people live in Singapore.
Languages:
Singapore has four official languages: English, Malay, Mandarin, and Tamil. The main language
is English and it is used in business, government, law and education.

Economy:
Singapore has extremely established market economy. The Singaporean economy is considered
as open, innovative, dynamic and business-friendly. Singapore is attracting a huge amount of
foreign investment with its location, experienced workforce, lower tax rates, advanced
substructure and zero-tolerance against corruption. Singapore is the world's most competitive
economy according to the World Economic Forum's ranking of 141 countries. Singapore is the
2nd highest GDP per capita. There are 7,000+ multinational organizations from the United
States, Japan, and Europe in Singapore. Approximately 44% of the Singaporean workforce is
prepared up of non-Singaporeans. Although market freedom, Singapore's government operations
have a substantial stake in the economy, contributing 22% of the GDP.

Link : https://en.wikipedia.org/wiki/Singapore#Republic_of_Singapore
https://www.nationsonline.org/oneworld/singapore.htm

Economic condition :
Singapore is a highly developed country with a free market economy. It has been ranked as the
third least corrupted country and its been flourishing in pro business. It has comparatively low
tax rates and has ranked third as the highest per capita GDP around the world. In foreign direct
investment sector Singapore plays a very crucial part. Along with that Singapore has also
benefitted much from the inward flow of FDI as global investors and different institutions are
highly interested in Singapore economy due to its political environment which has been stable as
per sources of recent years.
A detailed description of the insight of economic condition of Singapore is given below:
Export
Most of the revenues of Singapore is mostly derived from its foreign trade market. Some of the
biggest export products of the country which also covers almost 43% of the total shares includes
machinery and Equipment. Besides that, they also export products like petroleum (19 percent);
chemical products (13 percent); miscellaneous manufactured articles (8 percent) and oil bunkers
(7 percent). The main exporting partner country of Singapore are China consisting 15% of total
exports, Hong Kong (12 percent), Malaysia (11 percent), Indonesia (8 percent), United States (6
percent) and Japan (5 percent). The total export rate Singapore is GDP 176.38%
Import
Singapore imports various products from different countries . Machinery and equipment which
covers almost 43% of the total import shares is the biggest import product of Singapore. Besides
that Singapore imports products like crude oil which consists 32 percent of the total share,
miscellaneous manufactures consists 7 percent and chemical products consists 7 percent. The
main import partners are: China (11 percent), Malaysia (11 percent), the United States (9
percent), South Korea (8 percent), Japan (6 percent) and Indonesia (5 percent).
Singapore top 5 Export and Import partners

Market Trade (US$ Mil) Partner share(%)

China 50,396  12.24

Hong Kong, China 48,666  11.82

Malaysia 44,891  10.90

Indonesia 32,949  8.00

United States 31,863  7.74

Exporter Trade (US$ Mil) Partner share(%)

China 49,634  13.40

Malaysia 42,775  11.55

United States 42,103  11.36

Exporter Trade (US$ Mil) Partner share(%)
Other Asia, nes 31,418  8.48

Japan 22,149  5.98

(Singapore Trade | WITS Data, 2021)

Exchange Rate Regime

Exchange rate is the selected rate which is used to negotiate in between countries. Singapore
uses the exchange rate instead of the interest rate as their key monetary policy. The exchange
rates of Singapore with different countries has been given below. 1 Singapore dollar is equal to
64.37 Bangladeshi taka.
SINGAPORE DOLLAR EXCHANGE RATES TABLE (Currency Exchange Table (Singapore
Dollar - SGD) - X-Rates, 2021)

Singapore Dollar 1.00 SGD

US Dollar 0.756649
Euro 0.622308
British Pound 0.553305
Indian Rupee 55.304627
Australian Dollar 0.980352
Canadian Dollar 0.961271
Swiss Franc 0.673593
Malaysian Ringgit 3.043620
Japanese Yen 77.863488
Chinese Yuan Renminbi 4.943189

Singapore - Exchange Rate Data

2015   2016   2017   2018   2019  

Exchange Rate (vs USD) 1.42   1.45   1.34   1.36   1.34 

As we can see as per the chart a slump has been noticed in the Singaporean dollar to an over-
five-year low trading at 1.41 SGD per USD. The figure was 2.7% weaker than on the same day
of the previous month and 12.7% weaker on an annual basis. We can see SGD has decreased up
to 6.2% of its value since the beginning of the year. The crash of the currency followed the
surprise change in China’s foreign exchange policy, as its central bank decided to devalue the
tightly controlled yuan, leading to a sharp fall of the Chinese currency. As a consequence, the
Singapore dollar, which is among a set of currencies that are widely seen as very sensitive to
China’s foreign exchange policy, followed the yuan’s path.

The Monetary Authority of Singapore has decided to maintain its At its latest monetary policy
meeting on 15 April, the Monetary Authority of Singapore (MAS) decided to maintain its
bearing on the “modest and gradual appreciation” of the Singapore dollar nominal effective
exchange rate . Although there was a huge depreciation occurred against U.S. Dollar MAS has
decided to keep it policy intact. MAS added that it, “stands ready to curb excessive volatility in
the trade-weighted Singapore dollar”.
Inflation Rates

The inflation rate in Singapore in 2018 was .44 compared with the previous year and it is seen
that it has seemingly recovered throughout the year of 2015 and 2016. And in 2021 it is expected
that the inflation level to increase to around 0.5 percent. The decline in the in the prices of
telecommunications equipment, medical products and goods for recreation and entertainment has
caused a steady rate of inflation. The pieces has increased for personal care products and prices
have decreased for clothing products. In June the inflation rate of Singapore has dropped more
than the rate of past two years whereas that is also considered as an overall inflation decline in
four months for the first time.

In Singapore the Core inflation is influenced more the government and their policies as the
Singapore central bank's preferred price gauge in setting monetary policy as it excludes changes
in the price of cars and accommodation

Singapore - Inflation (eop) Data

2015   2016   2017   2018   2019  

Inflation Rate (CPI, annual variation in %, -0.6   0.2   0.4   0.5   0.8
eop)

Singapore is a flourishing, highly industrialized economy, which depend on heavily on its role as
a transitional port for transport and storage of goods and merchandise. A chunk amount of its
GDP comes from its service sector which includes financial services, oil-refining, and
manufacturing. Its ranked as one of the highest in terms of GDP in Asia. Also Tourism plays an
important part in Economic sector of Singapore.
Interest Rates
Due to the covid breakout the borrowing rate of Singapore has declined to almost zero during the
beginning of 2020. As with other international interest rates, domestic interest rates have been
plunging since the beginning of the year due to the outset of the Covid-19 crisis which has
impacted a lot in the economy.
To rectify the economic outcome, the Singapore government has, to-date, organized incentive of
$92.9 billion while the Monetary Authority of Singapore (“MAS”) has promised to provide
adequate liquidity in the market. As MAS’s exchange rate policy is to supervise the Singapore
dollar against major trading partners but not to set domestic interest rate, the falling domestic
rates are largely a by-product of central bank’s money market operations.

Financial Market overview: Domestic and International

Number of financial institutions in Singapore( 2019)

https://www.statista.com/statistics/624025/number-of-financial-institutions-in-singapore-by-
type/?
fbclid=IwAR0efwU9RynVa842XP_9ZgV9WbtndJWK5aubmba3WkwXuqMeTtv0b8pJNB0

Financial Institution (Domestic)

In Singapore money market funds are usually used to invest in short term fixed income
instrument. This takes 3 to 6 month to mature which may also include government bonds,
commercial bills, corporate bonds and deposits with financial institutions.

Singapore Financial Market

Singapore is one of only 14 economies in the world with a Standard & Poor's sovereign credit
rating of AAA.The Singapore Exchange (SGX) is Asia’s most internationalized exchange with
more than 40% of companies listed originating outside of Singapore. SGX also offers the
world’s largest offshore market for Asian equity futures market, which is centered on Asia’s
three largest economies: China, India, and Japan.According to the Bank for International
Settlements, Singapore is the world's fourth-largest foreign currency trading centre. The
Singapore dollar, out of 182 currencies in the world, is the 12th most exchanged currency. Look
closely at the S$1,000 bill. All of the lyrics of the national anthem are written on the back of
each one in micro text.
Singapore is the world's fourth-strongest financial market. The World Economic Forum lauded
the country for its high level of financial stability, bank performance and access to capital on a
commercial basis. The Singapore-dollar bond market is one of Asia's most multinational bond
markets, with foreign issuers accounting for more than a fifth of its private bonds.
With 15.5 percent of all households having at least $1 million in assets under management,
Singapore has the highest concentration of millionaire households.
https://www.bis.org/publ/rpfxf10t.htm
Banking industry, What kind of bank and How many banks:
Singapore’s Banking Industry Trends:
 Liberalization of banking sector
 Growth of private banking industry
 Investment banking hub
 Strengthening of local banking groups
 SME Banking Services
 Industry Snapshots

Types of Banks:
Many banks in Singapore serve various types of clients. –corporations or government agencies,
individuals. These banks provide commercial banking (catering to businesses and corporations),
retail banking (catering to individual members of the public) and private banking (catering to
HNWIs) services. Banks can be classified into 2 main categories.
 6 Local Banks
 117 Foreign Banks

DBS (Development Bank of Singapore), founded in 1968, OCBC (Oversea Chinese Banking
Corporation), established in 1912, and UOB (United Overseas Bank), established in 1935, are
major local banks.
Major foreign banks is HSBC – In Singapore, The Hong Kong and Shanghai Banking
Corporation Limited first opened its doors in December 1877, Standard Chartered – Standard
Chartered’ s Singapore operations began in 1859 and today boasts of a largest branch network
(20) among international banks in the Republic, ABN-AMRO Singapore – ABN AMRO is now
owned by RBS, Santander and the Dutch government, Maybank – May bank's presence in
Singapore began in 1960 as a full-licensed commercial bank, BNP Paribas – BNP Paribas has
been at the forefront of banking in Singapore since 1968 and was awarded a QFB status in 1999,
and Citibank – Citibank was the first American bank to set up a branch in Singapore in 1902.
https://www.guidemesingapore.com/business-guides/managing-business/banking-funding-and-
finances/banking-industry-and-major-banks-in-singapore?

Derivatives:
Latest records SGX FX Futures March 2020 volume at record high, with a notional value of
US$171.5 billion, and highlights are that the volume of SGX commodity derivatives increases to
3.1 million contracts in March 2020.
Derivatives Providers In Singapore SGX
The leading supplier of derivatives contracts in the country is Singapore Exchange Derivatives, a
subsidiary of the Singapore Exchange. The business offers trading options for interest rate
futures, as well as hedging services for loan and deposits and interest rate swaps.
Singapore launches new OTC derivatives regulations: Singapore-based banks have had to
disclose interest rate, credit and FX derivatives transactions to approved repositories since 2013
Exchange reporting rules are expected to increase for Singapore-based banks. MAS would
require financial institutions to disclose all forwards, swaps and options related to commodities
and commodity indices, as well as cash flow contracts calculated by commodities, in the case of
commodity derivatives contracts. Although equity derivative contracts need to be registered, they
may not include debentures, bonds, business trust units or collective investment schemes.
https://citywireasia.com/pagenotfound?aspxerrorpath=/news/singapore-to-launch-new-
regulations-for-otc-derivatives/

The two foreign banks in Singapore are linked to the derivatives sector (Development Bank of
Singapore). A wide range of derivatives is offered by DBS Bank. Trade execution and clearing
facilities for derivatives as well as clearing and online future trading are provided by the MAS
regulated financial institution. Some of the derivatives it offers include FX derivatives,
commodity derivatives, and interest rate swaps derivatives. Another one is (United Overseas
Bank) UOB bank offers a wide array of interest rate structured products that allow investors to
hedge against interest rate risk. The interest rate swap for turning fixed rate assets and liabilities
into floating rates is one of the items on offer and vice versa.

Financial Market (International)

The Financial sector or the Financial market plays a vital role in the success of the international
Market of Singapore. This usually represents the strength of the Singapore as the a global
financial center and for this reason the foreign investors and institution are attracted to
Singapore’s financial market.
Banking and Finance
As a major banking hub, Singapore has played a key regional and global role. According to the
MAS, As of 2013, Singapore's banks held a total of US$2 trillion in assets. There were a total of
126 commercial banks, of which 5 were local banks and 121 were foreign banks. Of these
foreign banks, 29 were full banks, 55 were wholesale banks, and 37 were offshore banks.
Singapore's 3 largest local banks, DBS, UOB, and OCBC, have been ranked among the three
largest local banks in particular.
In addition, there are possible economic spillovers from the banking sector of Singapore. It's
been noted that the banking sector has contributed to the activities of trade, corporate finance,
and Infrastructure construction. Accordingly, the banking sector in Singapore played a crucial
role, not Simply as a development area in its own right, also to make other financial and
economic opportunities easier. However, the banking sector of Singapore has also faced
regulatory hurdles, Both in terms of money-laundering operations and interest rate manipulation
in particular, Strong regulatory responses have been triggered by the MAS.
Asset Management
Singapore has since established asset management as a main growth field in the 1980s.It has
become a leading center for asset management in Asia. In 2015, under reserves .In Singapore,
(AUM) amounted to S$ 2.6 trillion, a 9 percent increase over the year. The 628 registered and
licensed fund managers, some of whom were working within the 270 fund management
companies registered in the financial directory of the MAS, handled those funds.
More significantly, Singapore has grown rapidly to become a major regional and global asset
Management center which has played an important role in the mediation of global private
investments. 80 % of AUMs in Singapore come from outside the country, with 68 % of AUMs
coming from the foreign country. All the AUMs have made investments in the Asia Pacific
region. The 2015 Asset Management Study of the MAS Singapore has been reported to have
been a regional center for institutional investors seeking access to Opportunities in Asia for the
private sector.
Capital Markets
The role of Singapore as a major financial hub was based on its deep, liquid capital markets, In
terms of bonds, total debt issued in 2015 amounted to S$ 174 billion, comprising both SGD and
non-SGD debt issued by a large pool of local and foreign issuers, with the markets for bonds,
equity capital, foreign exchange and (OTC) derivatives especially prominent.

Singapore's place as an international fixed income hub was reflected in this diverse range of debt
issuances and issuers, with non-SGD debt increasingly crucial as multi-currency fixed income
hub in Singapore's role. The equity capital market in Singapore has been recognized to be one of
the most developed in the Asia Pacific region, with nearly 800 SGX listed companies and an
average daily SGX securities turnover of more than S$ 1.09 billion in 2016.8 Like its other
financial sectors, Singapore's equity capital markets are highly internationalized, with global
equity markets highly internationalized. Singapore's equity capital, however the market was
plagued by small amounts of local trade and was adversely affected by In regional and global
markets.
Singapore has also emerged as one of the main exchange venue, in addition to bonds and stocks.
It has become Asia Pacific's largest foreign exchange center or hub, which ranks third behind
London and New York in the world. In 2016, the daily average trading amounted to S$ 705
billion, with Singapore having a share of global foreign trade. The exchange rate rose to 7.9% .
The role of Singapore as a major foreign currency exchange center. Its emerging position as an
offshore Renminbi (RMB) hub, as well as its emerging role, has also been beneficial.
Insurance
While the insurance sector in Singapore began to serve domestic business needs, the
liberalization of the MAS sector in 2000 has since led to the emergence of offshore insurance
and reinsurance operations, thereby facilitating the position of Singapore as a regional insurance
hub. Singapore is at top insurance and reinsurance hub in Asia and total insurance premiums
rising to S$ 3.6 billion in 2015.
In total, 182 licensed insurers traded in Singapore, including 80 direct insurers (of which 80 were
direct insurers) 17 of which are life insurers, 56 are general and 7 are composite) and 31 are
reinsurers. The insurance services that offer are general insurance, life insurance, reinsurance,
captive insurance, and insurance intermediaries.

FinTech
The advent of high-tech start-ups, in combination with Singapore's advanced financial industry,
has given rise to a burgeoning FinTech (Financial Technology) sector as the economy of
Singapore digitized in the 2000s.The fintech market associated with the Smart Nation initiative
of the Singapore government, which aims to bring digital and advanced ICT technologies to
Policy processes of the city-state as well as exploring future industries that can arise from such
technologies.
Singapore was ranked fourth among the world's top FinTech hubs, according to the consulting
company EY. It was also widely seen as Asia's top FinTech hub, ahead of a close competitor
from Hong Kong.
https://lkyspp.nus.edu.sg/docs/default-source/case-studies/entry-1516-
singapores_transformation_into_a_global_financial_hub.pdf?
sfvrsn=a8c9960b_2&fbclid=IwAR1zHCJZ9I91rdGLfxwg9hDNaKRv-
cq55SZRwMsQ61SmkFztoEQ8-kyhRdw
LIQUIDITY, VOLUME AND LARGEST INVESTORS:

Liquidity
It is very lucrative for various categories of asset management firms and dealers because there
are so many asset groups and financial instruments, including stocks, equities, FX, ETDs and
others, with strong liquidity in the Singapore market.
https://forum.equinix.com/assets/images/files/Trading_in_Singapore.pdf

The above graph shows the number of different trading instruments in the last decade for
treasury dealers over the year. We can see that Forex has always played a significant role in the
economy of Singapore.
The Singapore Exchange (SGX) saw its liquidity on an upward trajectory in 2017, with the
global market downturn in 2018 undermining this momentum. 2019 saw it re-emerge as a
resilient market, with, amid low liquidity as calculated by daily securities turnover, a robust
secondary equity fundraising market being cited as a key reason. https://medium.com/venture-
views/singapores-state-sector-needs-to-synchronize-economic-and-capital-equity-market-
development-b41b80783e67
There are 580 local and international financial institutions in Singapore. The financial sector is
dominated by commercial banks, which account for approximately 86% of the overall assets of
the financial sector and have always been solid. Since these banks follow a cautious stance in
their management activities, non-performing asset risk is highly liquid and well provisioned. The
Singapore money market is regulated by the inter-bank foreign currency market and is extremely
liquid. The interbank market consists of interbank investments in the short term and foreign
currency loans. The Asian Dollar Sector is a critical hub for the global mobilization of interbank
funds owing to surplus funds in the Singapore economy.
Corporate bonds include the Asian Dollar Bond and the Singapore Dollar corporate bond
markets in Singapore, and most Asian Dollar bonds are short-term business papers and fixed rate
notes. The secondary bond market is illiquid, unlike the main bond market, since the bulk of
bonds are retained before maturity. https://www.slideshare.net/ajaypanandikar/financial-markets-
in-singapore
According to survey data, Singapore has maintained its position as the region's largest foreign
exchange center and the third largest globally, behind Britain and the United States. Via major
trade and financial networks, the financial strategy can lead to global and regional macro-
financial shocks, but remains robust even under adverse scenarios. However, bank’s US dollar
liquidity is vulnerable to stress conditions. Cautiously, banks rely more on deposits for financing.
However, the system-wide foreign currency loan-to-deposit ratio remains high at 128%, although
the larger banks have deteriorated. The findings of the FSAP cashflow stress tests confirm the
liquidity instability of the U.S. currency. Reinforcing the foreign exchange liquidity of banks
should be a priority, considering the value of dollar finance and liquidity for Singapore's banks
and the economy. https://www.imf.org/en/Publications/CR/Issues/2019/07/15/Singapore-
Financial-System-Stability-Assessment-47108

Volume
In Asia and also internationally, Singapore has one of the most sophisticated financial service
sectors. In Singapore, the over-the-counter (OTC) derivatives industry is highly established and
is ranked 8th by trading volume globally. With the FX OTC derivatives market ranked 4th
worldwide and the IR derivatives market ranked 5th, it accounts for about 5 percent of the
overall global OTC derivatives trading volume.
https://forum.equinix.com/assets/images/files/Trading_in_Singapore.pdf
The Singapore bond market sustained the record issuance volumes of SGD 95 billion achieved in
2018, with strong growth in 2019 for SGD-denominated bond issuance. Global Multinational
Companies Bond issuance soared by 8% to USD 7.22 trillion in 2019, up from USD 6.68 trillion
in 2018.As of 31 December 2019, the size of Singapore's overall outstanding corporate bonds
rose 10.2 percent to SGD 420 billion. Although accommodative monetary policy was a core
driver of bond market development in the second half of 2019, the COVID-19 pandemic in early
2020 triggered substantial disturbances to the bond markets.
https://www.mas.gov.sg/-/media/MAS/News-and-Publications/Surveys/Debts/Singapore-
Corporate-Debt-Market-Development-2020.pdf

According to its latest market statistics survey, the Singapore Exchange's (SGX) daily average
volume of derivatives (DDAV) reached a record high in February at 1.2 million contracts.
Equities, foreign exchange (FX) and commodities are part of DDVA. The month's overall
amount soared 32% year-on-year to 24 million contracts, similar to a record set in May 2019
during a time of increased trade tensions. Equity index futures were up 26 percent from a year
earlier to 17.8 million, while FX futures were up 52 percent year on year to 2.4 million. The
amount of commodity derivatives grew 64 percent to 2,4 million. The gross turnover of the stock
industry in Singapore grew 44 percent year on year to $27.5 billion in February. The daily
average valuation of shares rose by 30 percent to $1.4 billion year on year. The exchange-traded
funds' (ETF) market turnover value on SGX rose to $356 million, more than three times the $103
million reported a year earlier. Since August 2018, this has been the biggest. The combined trade
volume was $169 million for "safe haven" commodities such as gold and bond ETFs, up six
times year on year. Total equity and debt fundraising in February rose by 75 percent to $75.6
billion from a year earlier. https://www.straitstimes.com/business/companies-
markets/derivatives-trading-hits-record-high-in-february-on-covid-19-concerns-
sgx#:~:text=Commodity%20derivative%20volume%20climbed%2064,%241.4%20billion
%20year%20on%20year.

Largest investors and invested sectors

FDI STOCKS BY COUNTRY AND INDUSTRY

Main Investing Countries 2018, in %

United States 16.6

Cayman Islands 12.3

British Virgin Islands 7.4

The Netherlands 7.0

Japan 6.6

Luxembourg 6.0

United Kingdom 5.5

Bermuda 4.4

Switzerland 3.5

Hong Kong 3.5

Main Invested Sectors 2018, in %

Financial and Insurance Services 53.4

Wholesale & Retail Trade 15.7

Manufacturing 12.8

Professional & Technical, 10.1

Administrative & Support Services
Main Invested Sectors 2018, in %

Real estate 2.6

Information and communications 2.1

Transport and storage 1.9

Source: Statistics Singapore  - Latest available data.

CONCLUSION AND FINDINGS:

The specified objective intended to overcome the COVID-19 pandemic are having a significant
effect on economic development all over the world. The International Monetary Fund (IMF)
expects the world economy to drop rapidly by -3 percent in 2020 as a consequence of the
pandemic. This will be even worse than during the financial crisis of 2008–09. The IMF expects
the economy to decline by 3.5 percent this year in Singapore, a sovereign city state and a
prosperous nation. Singapore's economy, however, is highly integrated and has been regarded as
one of the world's most transparent and pro-business economies. Singapore benefits from an
internal influx of transactions from institutions and private investors in this stable and
competitive financial landscape. The city has 5.6 million inhabitants. It is also expected that
other Asian economies will be impacted by a faster downturn in China, despite Asia still being
the fastest growing region in the world. Singapore has a variety of state-owned enterprises,
including Singapore Airlines, SingTel and MediaCorp, with significant holdings in the biggest
companies. In the electronics, chemicals and services sectors, the Asian nation is a global
financial center and has high export results. It also has a high trade to GDP ratio and, through the
volume of freight passing through it, the Port of Singapore is the second busiest in the world.

The Singapore economy is known for its FDI outflow to other countries, but also for its investors
and organisations. The economy is also benefited from incoming FDIs. Businesses and
developers find the city appealing. Political prosperity and a business-enhancing economy is
beneficial to the financial services sector. There are 200 banks in this country and several major
financial services companies have a regional hub. Company and other services, as are retail and
transportation industries in the region, also contribute significantly to Singapore's annual GDP
rate. No big natural or agricultural resources or output benefit the Singapore economy. But,  it is
a regional centre for petroleum and coal, and a world pioneer in renewable technologies for
water. The deep and liquid capital markets of Singapore are described as attractive to
investments. Its markets in shares, equity, currency and counter-markets (OTC) are large. Equity
capital markets are one of the most well-established and global in the Asia-Pacific region.

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