The Government of Canada has prepared this report based on primary and secondary sources of information. Readers should take note that the Government of Canada does not guarantee the accuracy of any of the information contained in this report, nor does it necessarily endorse the organizations listed herein. Readers should independently verify the accuracy and reliability of the information. This report is intended as a concise overview of the market for those interested in its potential and is not intended to provide in-depth analysis which may be required by the individual exporter. Although every effort has been made to ensure that the information is correct, Agriculture and Agri-Food Canada assumes no responsibility for its accuracy, reliability, or for any decisions arising from the information contained herein.
Please address any comments or suggestions you have on this report to: Ben Berry – ben.berry@agr.gc.ca
Table of Contents
Executive Summary
Overview
Canada-Singapore Relations
Agricultural Trade
Economy
Consumer Markets
Opportunities
Competitors
Access Issues
Business Travel Tips
Agriculture Sector & Policies
Contact Information
Key Resources
Being one of the most highly developed nations in the world, Singapore is a thriving island city-state that boasts high per capita GDP, exceptional infrastructure, a stable political environment, and an advanced economy. The island is well-known for its hyper-efficiency and exceptionally clean environment, with even chewing gum being banned over fears of littering.
Singapore plays a significant role in Southeast Asia, acting as a major gateway to other countries in the area, and is the financial and technological center of the region. However, with limited space for large domestic production, Singapore is highly trade-dependent and possesses one of the busiest ports in the world, second only to Hong Kong.
The country's significant consumer market has developed a strong affinity for Western foods, especially wholesome, organic and convenience food products. This trend ultimately presents significant opportunities for Canadian agri-food exporters looking to enter the Southeast Asian marketplace.
Singapore is a natural location for foreign business and investment, due to its advanced infrastructure, excellent intellectual property right protection, and stable corporate governance. As a result, Singapore is an important investment partner for Canada, and over the past decade, Canada has invested more than $36.1 billion in the country. A number of collaborations have also taken place between these two nations, mainly in the areas of research and development, as well as science and technology.
Singapore is an active member of the Association of Southeast Asian Nations (ASEAN), a strong advocate for regional growth and development, and a member of the Asia Pacific Economic Cooperation (APEC). Canada is a dialogue partner of ASEAN and has long been involved in developing co-operation in the region. Canada-ASEAN political and trade ties are quite strong, and as one of APEC's founding members, Canada is very active within the organization and has a history of promoting trade liberalization and facilitation initiatives. Through APEC support, Canada is committed to the continuation of improving customs procedures, requirements, efficiency and effectiveness. Canada-Singapore relations are further strengthened with membership in the Commonwealth and the World Trade Organization (WTO).
Due to its extensive reliance on foreign trade, Singapore actively seeks favourable free trade agreements with other nations and continually looks to form strong bilateral relations. On October 21, 2001, negotiations of a bilateral free trade agreement between Canada and Singapore were launched. The 8th round of negotiations took place from August 13-15, 2007; although negotiations are still ongoing, Canada is expected to benefit from services and investments through this accord.
For more information on the status of the Canada-Singapore Free Trade Agreement negotiations please visit: www.international.gc.ca.
| Singapore Total Trade | $682.6 billion |
|---|---|
| Exports | $362.4 billion |
| Imports | $320.2 billion |
| Trade balance | $42.3 billion |
| Canada-Singapore Trade | $1.9 billion |
| Exports | $834.9 million |
| Imports | $1.1 billion |
| Trade balance | ($302.3 million) |
| Canada-Singapore Ag Trade | $92.8 million |
| Exports | $60.5 million |
| Imports | $32.3 million |
| Trade balance | $28.2 million |
Although total agricultural trade between Canada and Singapore has fluctuated over the past several years, it increased by 12.5% in 2010, from $82.5 million in 2009 to over $92.8 million in 2010. Canada currently accounts for 0.75% of Singapore's total agri-food imports and is Singapore's 20th largest import source. From an export value of $34.3 million in 2005, Canada's agri-food exports have increased more than 75% to reach 2010's value of $60.5 million.
Although Singapore is a large exporter, agriculture and agri-food comprises only a small portion of its total exports due to the country's small size and minimal agricultural industry. Sizeable business and R&D opportunities are present in Singapore's agri-food industry.
| Animal feed preparations, nes | $12.0 million |
| Soya beans, nes | $10.1 million |
| Poultry feeds, complete | $7.8 million |
| Swine cuts, frozen nes | $7.5 million |
| Food preparations, nes | $3.7 million |
| Oysters | $1.4 million |
| Lobsters | $620,711 |
| Lobsters in brine | $421,248 |
| Geoduck clams | $310,642 |
| Sardines | $266,800 |
Canada's agri-food imports from Singapore have also fluctuated over the past few years from $33.4 million in 2008 to $31.1 million in 2009, and $32.3 million in 2010. These changes were largely due to increases in edible vegetables and certain roots and shrubs between 2009 and 2010, and reductions in dairy produce imports between 2008 and 2009. Cocoa and cocoa preparations have remained Canada's top import commodity from Singapore over the past three years and typically accounts for about 62.9% of total agri-food imports.
| Cocoa butter, fat and oil | $15.1 million |
| Cocoa paste, wholly or partly defatted | $4.5 million |
| Doughs, frozen | $2.1 million |
| Leguminous vegetable seed | $882,768 |
| Doughs | $758,573 |
| Ornamental fish, live | $1.6 million |
| Freshwater fish, nes, frozen | $1 million |
| Fish meat, nes, frozen | $337,426 |
| Fishsticks | $150,269 |
| Molluscs, nes, and other aquatic invertebrates, cooked, frozen | $86,225 |
Complete Statistical Summary Available at the Agri-Food Trade Service's Canadian Trade Data by Country: www.ats-sea.agr.gc.ca/stats/da-do-eng.htm.
Considered to be the most export-dependent economy in Asia, Singapore has developed a very successful free market economy, with trade valued at roughly two times its GDP. The country enjoys a number of economic strengths including strong service and manufacturing sectors, excellent infrastructure, and an open and corruption-free environment. Singapore's continual establishment of free trade agreements are expected to create new opportunities for the country, as such accords improve market access and encourage foreign investment. The country's growing exports, increased inbound tourism and higher consumer spending, also contribute to further economic growth.
In order to maintain its market competitiveness and hold its position as a primary gateway to Southeast Asia, the Singaporean government continues to exercise an export-oriented economic policy through membership in multilateral trading alliances, such as the WTO, and various regional trade associations.
Singapore's economy is mainly driven by manufacturing and services, which make up 27.2% and 72.8% of Singapore's GDP respectively. The state plans to restructure the economy to increase its competitiveness to support such ongoing economic development.
With an end goal of developing new services and consumer industries, Singapore is also shifting away from a sole investment-focus in order to be more innovation-driven. In doing so, Singapore plans to become a "knowledge centre", to promote new and existing manufacturing and service sectors, foster entrepreneurship, increase "human capital", and maintain attractive tax incentives to encourage foreign investment.
The Singaporean government takes an export-oriented approach to economic policy and promotes two-way trade and investment. Legal and regulatory systems are transparent, no equity is required to establish a business in Singapore, and there are little, or no, foreign ownership or control restrictions. Foreign firms are present in nearly all economic sectors of Singapore, with the industrial sector largely dominated by foreign multinationals.
| GDP | US$222.7 billion |
| GDP growth | 14.5% (2010) 5.2% (2011e) 4.4% (2012e) |
| GDP/capita | US$42,653 |
| GDP/capita (PPP) | US$57,238 |
Current economic trends:
Forecasted economic trends:
With a highly skilled and educated workforce, Singapore's population is expected to significantly grow over the next few years. Singaporean consumers are leading busier lifestyles, have rising disposable incomes, and are willing to spend more on high quality and premium foods. Food is considered to be an important part of Singaporean culture and way of life, with friends often greeting each other by first asking whether the other has already eaten.
Consumer expenditure totalled US$82.8 billion in 2010, and is expected to rise approximately 67.4% to reach $138.6 billion in 2020. Spending on food, alcoholic and non-alcoholic beverages accounted for 7% of overall consumer spending. Due to strong economic growth, the already successful Singaporean foodservice and retail sectors have been further strengthened. Average disposable household income is projected to further rise by 13.8% in 2011.
With increasingly busier lifestyles, Singaporean consumers are opting to purchase ready meals and processed food items, which offer both convenience and affordability. Consumers are looking to select products that offer a number of health benefits, whether it is low-fat, low-calories, or low-sugar. As a result, many manufacturers are innovating and developing a variety of new products, which adopt the growing health and wellness trend. Convenience foods are now more affordable, and come in a variety of healthy food options.
Labelled as the culinary capital of the Southeast Asian region (SEA), Singaporeans consider eating to be a national pastime, and typically consume five meals a day. This presents major opportunities for Canadian agri-food exporters.
For further information on the opportunities in SEA, please visit the Agri-Food Trade Service website: www.ats-sea.agr.gc.ca/info/info-ase-eng.htm.
As an APEC and ASEAN member, Singapore relies heavily on its many association partners as import sources, making the territory a more challenging market for Canadian products and companies to penetrate. Singapore's principal agri-food import sources, Malaysia (19.7% of imports), France (9.9%), Indonesia (8.5%), Australia (8.0%), China (6.8%), and the U.S. (6.4%) represent Canada's top competition in the Singaporean export market.
Furthermore, Singapore's reliance on international business has resulted in 19 free trade agreements (FTAs) being established between the country and numerous trading partners, including Japan, India, China, Australia and the United States. Four more FTAs are being negotiated with Mexico, Ukraine, Canada, and Pakistan.
Singapore remains a destination of constant trade and investment interest for foreign investors, and holds strong potential for Canadian companies wanting to penetrate the Southeast Asian market. To facilitate successful market entry, Canadian exporters are encouraged to develop market entry strategies that include working with local importers and distributors to develop a presence, gain valuable market advice, and best position products to meet local tastes, laws and pricing.
Singapore's excellent infrastructure makes the country an attractive export destination for many foreign suppliers. The nation boasts a strategic location at the centre of international shipping routes, and acts as a major trans-shipment point to other Southeast Asian markets. The country's roadways also connect to neighbouring markets, Malaysia and Thailand. Home to a world-class port system, one of the world's leading cargo airports, a well-developed highway and transit system, and advanced IT and telecommunication sectors, Singapore remains one of the best connected countries worldwide. In addition, the logistics of exporting to Singapore are further facilitated, because of the more than 3,000 logistics and supply-chain-management (SCM) companies operating in the country.
In addition to the WTO, APEC and ASEAN, Singapore is a member of the United Nations (UN) and Pacific Economic Cooperation Council (PECC), and implements international accords and policies from these bodies. The majority of Singapore's requirements governing imports are co-ordinated with WTO regulations, while others are specific to the region.
Although Singapore remains a free market economy, it does hold several import regulations which Canadian exporters should be aware of before entering the market:
Although Singaporean business customs are similar to those in North America, a good understanding of the differences is important for successful market entry.
As a 697 sq km island city-state with 4.7 million residents, Singapore's land capacity for domestic agricultural production is extremely limited, and the country imports close to 90% of all its food requirements. Furthermore, with arable land only accounting for a mere 1.47% of total agricultural land, and permanent crops comprising this entire amount, the country's agricultural sector is essentially non-existent; agriculture contributes very little to its overall GDP and employs only 0.1% of the population.
In turn, Singapore is obliged to heavily rely on imports to satisfy its agriculture and agri-food need, as. Of the country's limited agricultural output, orchids, vegetables, poultry, eggs, fish, and ornamental fish comprise the majority of production.
The High Commission of Canada to Singapore
Street Address:
One George Street, #11-01
Singapore, 049145
Mailing Address:
P.O. Box 845. Robinson Road
Singapore, 901645
Tel: (011 65) 6854 5900
Fax: (011 65) 6854 5930
E-mail: spore@international.gc.ca
URL: www.tradecommissioner.gc.ca
Hours: Mon-Thurs: 8:00-16:30, Fri: 8:00-13:30
Time Difference: E.S.T.: +13
Mr. Francis Chan
Trade Commissioner
Agricultural Technology and Equipment, Agriculture, Food and Beverages,
Bio-Industries, Consumer Products, Fish and Seafood Products, Market Access
Email: spore-td@international.gc.ca
Ms. Susan Loke
Trade Commissioner
Agricultural Technology and Equipment, Agriculture, Food and Beverages
Email: spore-td@international.gc.ca
Background Note: Singapore. US Department of State, n.d. Web. 10 June 2011. http://www.state.gov/r/pa/ei/bgn/2798.htm.
"Canada - Singapore - Free Trade Agreement Negotiations." Negotiations and Agreements. DFAIT, 28 June 2011. Web. 28 June 2011. http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/singapore-singapour.aspx.
Canadian Agricultural Trade Statistics (CATS). Stats Can/ AAFC, 2011. Web. 3 June 2011. http://www.ats-sea.agr.gc.ca/stats/da-do-eng.htm.
"Consumer Foodservice in Singapore." Euromonitor International. Passport GMID, 31 Aug. 2011. Web. 17 June 2011. http://www.portal.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx.
"Consumer Lifestyles in Singapore." Euromonitor International. Passport GMID, 4 Apr. 2011. Web. 17 June 2011. http://www.portal.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx.
"FDI Statistics." Trade, Investment & Economic Statistics. DFAIT, 2011. Web. 6 June 2011. http://www.international.gc.ca/eet/foreign-statements-en.asp.
Globe Trade Atlas. Global Trade Information Services, Inc., 2011. Web. 16 June 2011. http://www.gtis.com/gta/.
"Grocery Retailers in Singapore." Euromonitor International. Passport GMID, 12 Jan. 2011. Web. 4 July 2011. http://www.portal.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx.
"Internet Retailing in Singapore." Euromonitor International. Passport GMID, 12 Jan. 2011. Web. 30 June 2011. http://www.portal.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx.
Keohane, Joe. "Durian in Tomorrowland." Hemispheres Magazine Aug. 2011. Continental Airlines. Web. 9 Aug. 2011. http://www.hemispheresmagazine.com/2011/08/01/durian-in-tomorrowland/.
"Singapore." The World Factbook. CIA, n.d. Web. 17 June 2011. https://www.cia.gov/library/publications/the-world-factbook/geos/sn.html.
"Singapore's Foreign Trade Agreements." International Enterprise Singapore. Singapore Government, n.d. Web. 21 June 2011. http://www.fta.gov.sg/fta_afta.asp?hl=1.