Business and Market Overview on Singapore

ECONOMY. Singapore is the most advanced economy among the Southeast Asian countries with a GDP per capita of US$25,207 in 2004 which is comparable to many advanced economies in the European Union. Singapore lacks natural resources but is a regional hub for international trade, shipping and air transport. Many US, European and Japanese multinational companies have established Singapore as a regional office for their business operations.

Singapore's GDP grew at an average of 2.7% annually from 2000 to 2004 to reach US$106.9 billion by 2004 while inflation remaining below 2.0%. Though Singapore's economy is the most advanced among the Southeast Asian countries, unemployment increased from 1.8% during the Asian economic crisis of 1997 to 5.3% in 2004. To diversify and expand the country's economy, the government is developing Singapore into a regional hub for finance and high technology.

The service sector accounted for 66.2% of Singapore's GDP in 2004 while the manufacturing sector accounted for 33.7%. Agriculture plays a minimal role in Singapore's economy and accounted only 0.1% of the country's GDP. Major industries in Singapore include electronics, chemicals, financial services, petroleum refining, food processing, ship repair, offshore platform construction, biotechnology and entrepot trade.

DEMOGRAPHY. Singapore