Singapore WT/TPR/S/14
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IV. TRADE POLICIES AND PRACTICES BYMEASURE
(1) Overview andRecent Developments
1. Singapore basically pursues free-trade policies ingoods, withthemajor responsibility for
allocating resources anddetermining economic decisions lefttomarket forces. More than98percent
oftariff linesareimported dutyfree. Asaresult oftheUruguay Round, Singapore hasincreased its
tariff bindings from some 0.5percentoftariff linestonearly 70percent.
2. ImportlicensingandcontrolprovisionsaremainlymaintainedtodischargeSingapore'sobligations
under international commitments orforpublic health, environmental, orsecurity considerations.
Standardsandstandard-settingprocessesareinlinewiththosepractisedinternationally.Stringentsanitary
andphytosanitary regulations aremaintained tosafeguard thesanitary status ofthecountry. Government
procurement guidelines donotprovide foranydomestic preference, except those agreed under the
ASEANPreferentialTradingArrangements.Singaporehasnevergrantedimportreliefundersafeguards
orcountervailing measure procedures. From February 1995, anti-dumping duties havebeenimposed
onimports ofcertain steelreinforcement barsfrom Malaysia andTurkey.
3. Export control measures aremainly applied forpublic health, security orenvironmental
considerations, ortofulfilinternational commitments. Under bilateral textile agreements, exports of
textiles andclothing aresubject toquotas. Corporate taxconcessions maybegranted toexports of
manufacturing andservice companies. While certain Singapore-made export products benefit from
theGeneralized Systems ofPreference, some ofitsexports havealsobeensubject totrade actions in
certain overseas markets.
4. Many government agencies orstatutory boards actascatalysts toindustrial development in
priority areas. Assistance islargely aimed atsupporting newprojects leading totechnological
development orhigher value-added activities. Major policy measures include investment incentives
andresearch anddevelopment assistance, while loans andtechnical assistance areavailable tosupport
small andmedium-sized enterprises inpurchasing machines andpremises. Onratifying theUruguay
Round Agreements, Singapore ipsofactobecame apartytotheAgreement ontheTrade-Related Aspects
ofIntellectual Property Rights (TRIPS), andintends toimplement theTRIPS Agreement within the
permitted transition period fordeveloping countries.
(2) Measures Directly Affecting Imports
(i) Registration, documentation
5. Under theRegulation ofImports andExports Act1995, theTrade Development Board (TDB)
may, withtheapproval oftheMinister forTrade andIndustry, make regulations fortheregistration,
regulation andcontrol ofgoods imported into,exported from, transhipped inorintransit through
Singapore.1Allimporters andexporters arerequired toregister withtheTDBforaCentral Registration
Number. Allcompanies orfirms wishing toimport anygoods needanImport Permit, which isused
forthecompilation oftrade statistics. Formost goods, asingle application isrequired foreach
1TheActreplaces theprevious Control ofImports andExports ActandRegistration ofImports andExports
Act.WT/TPR/S/14
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consignment. Most applications aredoneelectronically through TradeNet.2Goods which remain in
theFreeTradeZonefortrans-shipmenttoanothercountryrequireneitherpermitsnorcustomsclearance,
andthuscanleave theportwithin adayofdischarge.3
(ii) Tariffs andsurcharges
(a) Structure
6. Import duties arelevied onveryfewitems (only 1.4percentofalltarifflines), withallother
imports being dutyfree(Table IV.1) Witheffect fromJanuary 1994, import duties on406items were
abolished.4
7. Bona fidetrade samples ofnocommercial value areadmitted dutyfree,provided theyarenot
sold, consumed, puttonormal use,orusedforhireorreward inSingapore.5However, liquor and
tobacco samples arenotconsidered astradesamples. Advertising material relating toalimited number
ofitems, including tobacco andliquor, isdutiable.
8. Duties levied bySingapore maybespecific, advalorem, oramixture ofthetwo. Advalorem
tariffs areimposed onlyon23tarifflinesofmotor vehicles. Some 53tarifflinesofliquor andtobacco
andonelineofdiesel fuelaresubject tospecific ratesofduty. Sixtariff linesofmotor spirits are
under alternative tariffs (Tables IV.2andAIV.2). Singapore doesnotapply anyseasonal tariffs.
(b) Tariff levels
9. Outof5,823 tariff lines classified according totheHarmonized System (HS), 5,740
(98.6 percent)aredutyfreeandtheaverage collected rate(customs andexcise dutyrevenue/import
value ratios) hasremained stable ataround 1.1percentinrecent years (Table IV.1).
10. Dutiable products cover liquor, tobacco, petroleum products andmotor vehicles. Advalorem
tariffs of41percentareimposed onmotor vehicles and12percentonmotorcycles (Table AIV.2).
Collected tariffrates(customs andexcise duties/import values) onliquor, tobacco, petroleum andmotor
vehicles were 41.3percent, 29.8percent, 22.1percentand28.0percent, respectively, in1995
(Table IV.3).
2However, adeclaration isnotneeded iftheitems arecommercial samples, unsolicited gifts, specimens for
analysis ortest,thevalue ofwhich does notexceed S$400, unaccompanied personal orhousehold effects,
commercial documents, human remains andsoforth. Trade Development Board (1995), p.1-1andp.6-1.
3GATT (1992), p.61provides more details.
4Theitemsincludedeggs,sugarconfectionery,chocolateconfectionery,biscuitsandpastry,artificialsweeteners,
garments andclothing accessories, electric accumulator plates, fluorescent tubes, headgear, leather handbags,
imitation jewellery andfurniture.
5SingaporeInternationalChamberofCommer ce(SICC)issuesATACarnetstofacilitatethetemporaryimport
ofexhibition/advertising materials, commercial samples andprofessional equipment without payment ofduty.Singapore WT/TPR/S/14
Page 35
Table IV.1
Imports, import taxandGovernment taxrevenues, 1985-1995
(S$million)
Imports (A)Customs andexcise taxrevenue
(B)Government tax
revenue (C)B/A
(%)B/C
(%)
1985 57,818 985 6,774 1.7 14.5
1986 55,545 847 5,188 1.5 16.3
1987 68,415 940 5,526 1.4 17.0
1988 88,227 1,112 8,263 1.3 13.5
1989 96,864 1,262 9,606 1.3 13.1
1990 109,806 1,305 10,534 1.2 12.4
1991 114,195 1,370 12,017 1.2 11.4
1992 117,530 1,526 13,759 1.3 11.1
1993 137,603 1,668 15,454 1.2 10.8
1994 156,396 1,561 18,605 1.0 8.4
1995 176,313 1,598 19,579a0.9 8.2
a Denotes predicted value.
Source: Government ofSingapore.
11. Asmight beexpected, Singapore 'stariff régime shows verylittletariffescalation. However,
thespecificdutyformanufacturedtobacco(S$115perkg)isapproximatelytwicethatforunmanufactured
tobacco (S$60 perkg.).
Table IV.2
Profile ofdifferent types oftariffs usedbySingapore, 1995
(Number oflinesbyHS9digits)
Tariff Study Category Number oftariff lines
Total withtariff rates thatare
dutyfree advalorem specific mixed
Beverages, spirits andvinegar 44 10 0 34 0
Tobacco 20 1 0 19 0
Mineral fuels andmineral oils 67 60 0 1 6
Vehicles other thanrailway or
trainway rolling-stock86 63 23 0 0
Others 5,606 5,606 0 0 0
Total 5,823 5,740 23 54 6
Source: Customs andExcise Department Singapore 1994, Singapore Trade Classification andCustoms Duties .WT/TPR/S/14
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Table IV.3
Import value ofdutiable items, andcustoms andexcise duties for1995
(S$million)
H.S. Code Products Customs andexcise
duties (A)Import values
(B)A/B
%
22 Liquor 313.2 758.0 41.3
24 Tobacco 347.5 1,166.6 29.8
27 Petroleum 562.7 2,547.3 22.1
87 Motor vehicles 368.8 1,318.0 28.0
Source: Government ofSingapore.
12. Bound tariffs accounted foronly29tarifflines(0.5percentofthetotal) in1992.6Asaresult
ofUruguay Round, Singapore hasincreased itstariff binding to4,036 tariff lines, or69.3percent
ofthetotal. 741tarifflineshavebeenbound atzero, 191linesat5.5percent,598linesat6.5percent
and2,506 linesat10percent. Thesimple average ofbound ratesis7.4percent.
13. Simple averages oftariffs bound under theUruguay Round are9percentforlivestock and
dairy farming, and9.8percentforcrops andother vegetables. Tariffs onbeverages arebound mostly
asspecificdutiesunderUruguayRound.TariffsonfishandfishproductswereboundundertheUruguay
Round atasimple average of9.9percent. Singapore 'sbindings onindustrial products willincrease
fromnearzeroto65percentofalllines, anditsaverage bound rateonindustrial products, onatrade-
weighted basis, willdecline from 12.4percentto5.1percent.7
(d) Tariff preferences
14. ImportsfromASEANcountriesundertheCommonEffectivePreferentialTariff(CEPT)scheme
amounted toS$28,841 million (21.0 percentoftotal imports) in1993 andS$33,932 million
(21.7 percentoftotalimports) in1994, respectively. However, inpractice, customs andexcise duties
imposed onimports from ASEAN arethesame asthose imposed onimports from other sources.
15. Under theCEPT Scheme, Singapore offers duty-free access on5,656 tarifflines. Some 2,183
linesareincluded inthe"fasttrack" inwhich allproducts musthavedutyrateswithin the0-5percent
range bythetenth yearoftheCEPT, i.e.,by2003. Other tariff lines, inthe"normal" track, must
reach thislevelby2008. There arenoproducts inthe"temporary exclusion list"(Table IV.4).
6GATT (1992), p.69.
7GATT (1994), p.70andp.78.Singapore WT/TPR/S/14
Page 37
Table IV.4
Number oftariff linesunder theCommon Effective Preferential Tariff (CEPT)
HS Sector Fasttrack Normal track Temporary
exclusion
list
1-5 Liveanimals 0 239 0
6-14 Vegetable products 0 315 0
15 Fatsandoils 40 17 0
16-24 Prepared foodstuffs 0 205 0
25-27 Mineral products 5 149 0
38-38 Chemicals 531 295 0
39-40 Plastics 220 0 0
41-43 Hides andleathers 63 18 0
44-46 Wood andwood articles 0 96 0
47-49 Pulpandpaper 19 135 0
50-63 Textiles andapparel 975 0 0
64-67 Footwear 0 59 0
68-70 Stone/cement/ceramics 88 53 0
71 Gems 54 0 0
72-83 Basemetals andmetal articles 1 623 0
84-85 Machinery andelectrical Aapliances 165 750 0
86-89 Vehicles 0 124 0
90-92 Optical, precision andmusical instruments 0 227 0
93 Arms 0 17 0
94-96 Miscellaneous manufactured articles 22 127 0
97-98 Antiques andworks ofart 0 24 0
Total 2,183 3,473 0
Source: ASEAN Secretariat, 1995 AFTA Reader, Vol.II,March .
16. Singapore isaparticipant intheforum forAsia-Pacific Economic Cooperation (APEC). There
arecurrently nopreferential tariff arrangements within theAPEC. Furthermore, Singapore doesnot
provide anytariff preferences tothose countries withwhich ithasconcluded bilateral agreements
(Chapter II).Singapore isasignatory totheGlobal System ofTrade Preferences (GSTP) among
Developing Countries. Under theGSTP, thetariffconcessions granted bySingapore consist ofceiling
binding of5percentonimports ofhandtools, though theyareinpractice imported intoSingapore
duty-free onanm.f.n. basis. Thiscommitment applies toallcountries which areparties totheGSTP
Agreement.
(e) Tariff concessions
17. Under theCustoms Duties (Exemption) Order 1990, aschedule oftariff exemptions hasbeen
established containing alistoforganizations orpersons which maybenefit from duty-free imports if
specified conditions arefulfilled. Alldutiable materials, partsorcomponents forincorporation inexport
items aregranted dutyexemption. Theshares ofimports ofindustrial andagricultural goods under
suchtariffconcessions intotalimports werelessthan1percentandlessthan2percent,respectively
(Table IV.5).WT/TPR/S/14
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Table IV.5
Imports under tariff concessions, 1990-94
(S$million)
Imports ofindustrial
goods under tariff
concessions (A)%share ofAintotal
imports ofindustrial
goodsImport ofagricultural
goods under tariff
concessions (B)%share ofBintotal
imports ofagricultural
goods
1990 350.0 0.34 73.6 1.06
1991 520.3 0.49 86.9 1.16
1992 603.0 0.55 94.9 1.22
1993 658.2 0.51 126.4 1.51
1994 828.7 0.56 143.3 1.69
Source: Government ofSingapore.
(iii) Tariff quotas
18. Singapore doesnotimpose tariff quotas onanyproducts.
(iv) Other levies andcharges
19. Import duties areapplied uniformly toimports fromallcountries. There arenorequirements
tomake priorimport deposits inSingapore. Excise duties andtheGoods andServices Taxof3percent
areapplied toimports atthesame levelasdomestic products. There isalsoacensorship feeonfilms
forgeneralexhibition.8Singaporehassubstantialdomestictaxesandfeesonmotorvehicles(ChapterV).
Inaddition totheduties, these charges include acertificate ofentitlement, registration feeandaroad
tax.
(v) Preshipment inspection
20. Singapore doesnothaveanyregulations relating topreshipment inspection.
(vi) Customs valuation
21. Customs valuation inSingapore isbased ontheBrussels Definition ofValue (BDV). Dutiable
value istaken tobethenormal price orimport price ofgoods attheportorplace ofimportation.
Specific duties imposed onseveral tariff linesarebased onweight, volume ornumber. When there
isprovision forspecific andadvalorem rates, dutypayable isthehigher ofthetwo.9Thevalue for
dutyisgenerally thec.i.f.value. Advalorem tariffs arebased onthec.i.f.value pluscostofhandling
(1percentofthec.i.f.).10When goods havebeenundervalued inthecustoms declaration, theCustoms
andExcise Department mayimpose uplift adjustments tothedeclared values. Appeals against customs
decisions maybeaddressed totheDirector General ofCustoms andExcise. Another avenue isto
appeal totheMinistry ofFinance. Thelastavenue istoseekredress from theCourts.
8Dun&Bradstreet (1994/95), p.1274.
9Forfurther details, seeGATT (1992), pp.74-75.
10Dun&Bradstreet (1994/95), p.1274.Singapore WT/TPR/S/14
Page 39
22. Under theSingle Undertaking oftheUruguay Round, Singapore iscommitted toimplementing
theWTO Agreement ontheImplementation ofArticle VIIofGATT 1994 (theCustoms Valuation
Agreement). Thisisexpected tohavelittleimpact onSingapore 'scustoms valuation procedures, and
there areplans toimplement theWTO Customs Valuation Agreement within thenextfiveyears.11
(vii) Import prohibitions
23. TheRegulation ofImports andExports Act1995 empowers theTDB, withtheapproval of
theMinister forTrade andIndustry, toprohibit, absolutely orconditionally, theimport orexport of
anygoods intoSingapore. Thelistofgoods whose import isprohibited isgiven inTable IV.6
Table IV.6
Goods whose import isprohibited
Products Purpose
Chewing gum Public safety
Rhinoceros horn, worked, unworked orprepared, waste andpowder Preventing extinction
Cigarette lighters intheshape ofapistol orrevolver Public safety
Fire-crackers Public safety
Medicines containing amidopyrine ornoramidopyrine Public health
Toycoins andtoycurrency notes National security
Volcanic rockaggregates notexceeding 40mm. Public safety
Allgoods originating from orconsigned toIraq UNSCresolutions
Chronic acid Environment
Fluorine Environment
Titanium tetrachloride Environment
Vinyl bromide Environment
Hazardous PCBsubstitutes Environment
Asbestos brake andclutch linings Environment
Used motor vehicles which aremore thanthree years old Environment
Hydrobromofluorocarbons (HBFCs) and2402 Protecting ozone layer
Halon 1301 Protecting ozone layer
CFCs asarefrigerant inair-conditioners ofnewcars Protecting ozone layer
Halon 2402 Protecting ozone layer
Chlorofluorocarbons (CFCs) innewair-conditioning andrefrigeration equipment except for
automotive air-conditioners anddomestic refrigeratorsProtecting ozone layer
Halon 1211 andfireextinguishers using halon 1211 Protecting ozone layer
CFCs asarefrigerant inair-conditioners ofnewcars Protecting ozone layer
Ivory forcommercial consignments, andtigerproducts Preventing extinction
Source: Government ofSingapore.
11According toArticle 20oftheAgreement onImplementation ofArticle VIIoftheGATT 1994, developing
country members notparty totheTokyo Round Customs Valuation Agreement maydelay application ofthe
provisions ofthenewAgreement foraperiod notexceeding fiveyears from thedateofentry intoforce ofthe
WTO Agreement.WT/TPR/S/14
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24. Under theAct,Singapore applies import prohibition orders andimport licensing measures
forreasons ofpublic safety, public health, environmental considerations, national security andto
dischargeitsobligationsunderinternationalagreementsandUnitedNationsSecurityCouncilresolutions.
Theimport ofivory (commercial consignments) andtigerproducts isprohibited under theprovisions
oftheConvention onInternational Trade inEndangered Species ofFauna andFlora (CITES). In
accordance withUnited Nations Security Council resolutions, Singapore applies animport prohibition
toallgoods originating inorconsigned toIraq.
25. Under bilateral orregional agreements, therearenoexemptions fromthegeneral prohibitions
andrestrictions. Singapore hasnever imposed seasonal andconditional import prohibitions.
(viii) Import licensing
26. Singapore doesnotapply quantitative restrictions aspartofitslicensing process. Itspolicy
istokeepimport licensing toaminimum. Singapore 'simports ofproducts subject toimport licensing
in1994 amounted toS$10,103 million or6percentoftotalimports. According totheauthorities,
there isnodomestic production oftheproducts subject toimport licensing.
27. Theaverage processing timeforimport licence applications islessthantwodays. Ingeneral
thevalidity ofimport licences iseither established onaperconsignment basis oruptotwoyears.
Thelicensing feevaries fromS$1,000 permonth toS$1,500 for24months. There isnopenalty for
thenon-utilization ofalicence. Licensing authority fortherelevant products restswiththerespective
ministries oragencies. Appeals mayalsobeaddressed tothese ministries oragencies.
28. Tomeetemergency requirements, Singapore maintains astockpile scheme forrice. Aspecial
import licensing system isapplied toriceimported fromallcountries. Other products covered bynon-
automatic andautomatic licensing arelisted inTables AIV.3 andAIV.4.
(ix) Import quotas
29. Singapore doesnotapply quantitative restrictions onimports generally. However, asnoted
below, import quotas andbansareimposed oncontrolled ozone-depleting substances (ODS). The
Singapore Government hasnotconcluded anyagreement withforeign governments tolimitthevalue
orquantity ofgoods exported toSingapore. Itisalsounaware ofanysuchagreements between
companies operating inSingapore andoverseas companies.
(x) Import surveillance
30. Singapore doesnotapply anyimport surveillance onanyproducts, other thanunder certain
import licensing, asdescribed above.
(xi) State trading
31. Singapore doesnothaveanyState-trading enterprises, asdefined bytheworking definition
intheUnderstanding ontheInterpretation ofArticle XVII oftheGATT.12Theonlygovernment-
registered trading company setupspecifically topromote theexport ofSingapore-manufactured products
12NgandYang (1994), p.177.Singapore WT/TPR/S/14
Page 41
isIntraco Ltd.,aconglomerate whose activities include trading, investment inresource-based activities
andmanufacturing.
(xii) Import cartels
32. There isnomonopoly oranti-trust legislation inSingapore. Competition infinancial services
ismonitored bytheMonetary Authority ofSingapore (MAS), telecommunication services bythe
Telecommunication Authority ofSingapore andelectricity andpiped gasservices areregulated by
thePublic Utilities Board (PUB).
(xiii) Countertrade
33. According totheauthorities, theSingapore Government doesnotengage incountertrade and
maintains noinformation ontheextent ofcountertrade orsimilar arrangements inwhich theprivate
sector maybeinvolved. However, ataxincentive scheme ismaintained todevelop private countertrade;
firms thatseektoenjoy thefive-year taxholiday incentive forsuchactivities havetomeetconditions
setbytheTDB. Toenjoy thetaxholiday, firms mustestablish aseparate company toengage solely
incountertrade, haveestablished international trading linksandemploy anagreed number oftrained
personnel.13
(xiv) Standards andother technical requirements
34. Singapore 'sstandards andstandard-setting processes areinlinewith those practised
internationally.14Accordingtotheauthorities,therehavebeennoinstanceswhereinternationalstandards
havebeenfound tobeinappropriate. Mandatory standards include technical regulations which are
maintained forsafety, health andenvironmental protection purposes. Standards donotdiscriminate
against orbetween imported products.
35. Singapore recognizes testing procedures performed intheexporting country iftheorganization
performing thetestinthatcountry hasinternationally approved/accredited testing procedures.
Singapore 'snational standardization system isco-ordinated bytheSingapore Institute ofStandards
andIndustrial Research (SISIR). Itactsasthesecretariat fortheSingapore Standards Council, which
isresponsiblefortheestablishmentofSingaporeStandards.15SISIRoperatesseveralschemestomaintain
thequality ofproducts, construction, information technology, tocontrol ozone-depleting substances,
andtoevaluate testing laboratories (BoxIV.1). Various actsandregulations govern thesetting and
testing standards.16
13Dun&Bradstreet (1994/95), p.1274.
14Examples ofinternational bodies whose technical standards andregulations havebeenadopted inSingapore
include: theBritish Pharmacopoeia, theUnited States Pharmacopoeia, theEuropean Pharmacopoeia, theWorld
Health Organization, theCodex Alimentarius Commission andtheISO/IEC.
15GATT (1992), pp.80-82.
16Therelevant legislation andregulations are:theRadiation Protection Act1991; theRadiation Protection
Regulations 1974; theRadiation Protection (Transport ofRadioactive Materials) Regulations 1974; theRadiation
Protection (Non-ionising Radiation) Regulations 1991; theSingapore Consumer Protection (Safety Requirements)
Regulations 1991, 1992 and1995; theTASTelecommunication (Dealers) Regulation 1994; theSaleofFood
Act;theEnvironmental Public Health Act;the(EPH) Food Hygiene Regulations; thePublic Utilities (WaterWT/TPR/S/14
Page 42Trade Policy Review
BoxIV.1:SISIR Schemes
Manufacturers whose products arecertified under theSISIR Quality Mark Certification Scheme are
awarded licences fortheuseoftheSingapore Quality Mark. TheMark indicates consistency inquality,
reliability inperformance and,insome cases, acceptable safety levels. Theaward oflicences fortheuse
ofSISIR Mark isbased upon theproduct meeting aSingapore Standard, aninternational standard, a
reputable overseas national standard andthequality management system conforming totheSISIR Quality
Management System Requirements.
CIDB-SISIR ISO9000 Certification isadministered bytheConstruction Industry Development Board
(CIDB) jointly withtheSISIR fortheconstruction industry inSingapore. TheScheme isopen topublic
sector agencies dealing withconstruction, consulting andproject management firms, building andcivil
engineering firms performing construction and maintenance work, and construction product
manufacturing.
TheSISIR-NCB ISO9000 ITCertification Scheme wasestablished inOctober 1992, withtheobjective
ofleading theinformation technology industry towards greater international competitiveness through
quality andtechnology. Thisisacollective effort between theSISIR andtheNational Computer Board
tocertify anorganization 'squality system totherequirements oftherelevant parts ofSSISO9000.
TheSISIR ODS-Free Process Verification Scheme ("the ODS Scheme") isoneinwhich thequality
systems ofcompanies areassessed andverified tomeet therequirements ofthescheme. Itconfers
recognition tocompanies thathave phased outClass 1ozone depleting substances intheir direct
manufacturing processes. The ODS Scheme facilitates exporters inmeeting theODS-labelling
requirements oftheUnited States Clean Air Act and provides competitive advantage for
environment-friendly companies.
TheSingapore Laboratory Accreditation Scheme (SINGLAS) isanational scheme toevaluate the
capabilities oftesting laboratories andtoaccredit competent ones. Thescheme offers accreditation to
laboratories inchemical andbiological testing, civil engineering andmerchant testing, calibration and
measurement, non-destructive andelectrical testing.
Source: SISIR(1994b),
36. TomeetSingapore 'sobligations under theWTO Agreement onTechnical Barriers toTrade
(WTO TBT), SISIR extended thepublic comment period foralltechnical standards fromonetotwo
months witheffect from 1March 1995. SISIR willalsopublish thestatus ofitsstandardization
programme atintervals ofsixmonths asrequired under theCode ofGoods Practice forthePreparation,
Adoption andApplication ofStandards oftheWTO TBTAgreement.
(a) Standards, testing andcertification
37. Singapore 'snational standardization policies areaimed atpromoting thesafety andquality
ofproducts andservices. Singapore isamember oftheInternational Organization forStandards (ISO)
andtheInternational Electrotechnical Commission (IEC). Itmaintains ageneral policy ofadopting
international standards asnational standards, referred toasSingapore Standards. InOctober 1995,
therewereatotalof698SingaporeStandards,mainlyinelectro-technology,buildingandcommunication
industries, ofwhich 123areendorsements ofISO/IEC standards.
Supply)Regulations;thePublicUtilities(Electricity)Regulations;andthePublicUtilities(GasSupply)Regulations.Singapore WT/TPR/S/14
Page 43
38. Thesetting upoftheCalibration andMeasurement Centre (CMC) in1992 hasenabled the
SISIR tocontinue improving itsservice inthecalibration ofmeasurement standards andinstruments,
aswellasmeasurement ofelectrical, thermal, mechanical anddimensional parameters.17
39. Toprotect andimprove thequality ofairinSingapore, emission standards formotor vehicles
were revised inthefollowing manner: alldiesel vehicles arerequired tocomply withtheUN/ECE
R24.03 emission standard; allnewpetrol-driven vehicles arerequired tocomply withtheexhaust
emission standard asspecified ineither theEuropean Directive 91/441/EEC orArticle 31oftheJapanese
Safety Regulation forroadvehicles; allmotor cycles andscooters arerequired tocomply withUnited
States Codes ofFederal Regulations (40CFR) 86.410-80 emission standard.
Industrial standards
40. Industrial standards applied intheengineering andconstruction fields areingeneral based
oninternational standards. Most industrial andcommercial enterprises arecovered byanti-pollution
legislation. Front seatbelts arealsorequired forcars, taxis, station wagons withsixpassengers or
lessandmotor vehicles having adouble cabin.
41. Under theConsumer Protection (Safety Requirements) Regulations 1991, thefollowing
electronic, electrical andgasconsumer products havebeendesignated ascontrolled items: components
ofLPGsystems; gascookers; electric cooking ranges; electric irons; hairdryers; microwave ovens;
televisions;videocassetterecorders;electricfans;electrickettles;immersionwaterheaters;refrigerators;
ricecookers; room air-conditioners; vacuum cleaners; washing machines; andhi-fiequipment. These
items arerequired toberegistered withtheSISIR. TheSafety Mark mustbedisplayed ontheproduct
oritspackaging.
Health andsafety requirements
42. Imported anddomestically produced foodproducts forsaleinSingapore mustberegistered
withtheFood Control Department oftheMinistry oftheEnvironment upon arrival inSingapore.18
Importers ofhazardous chemical substances needalicence from thePollution Control Department
oftheMinistry oftheEnvironment.19Imports ofmedicinal poisons mustbeapproved bytheMinistry
ofHealth, which alsoinspects pharmaceutical imports. Theadmittance ofdrugs forsaleinSingapore
isgoverned bytheMedicines Actwhereby drugs needtobeapproved andregistered withtheMinistry
ofHealth. Cosmetics willbecontrolled under theMedicines Act,Chapter 176,bymid-1996.
Cosmetics critical tothesafety ofthepublic willbeputunder registration; wholesalers andimporters
willbelicensed.
43. Singaporeisasignatorytotwointernationaltreatiesonozonedepletion,theViennaConvention
fortheProtection oftheOzone Layer andtheMontreal Protocol onSubstances thatDeplete theOzone
Layer. Under thesetreaties, Singapore introduced programmes tophase outtheuseofozone-depleting
substances. Thequantity ofsuchproducts imported intoSingapore in1995 was2,275 tonnes. With
effect from 1January 1996, theimport ofcontrolled CFCs intoSingapore hasbeenbanned. The
programme alsoincluded abanontheimport andmanufacture ofnon-pharmaceutical aerosol products
17SISIR (1994a), p.15.
18TheSaleofFood Actandother regulations cover food andfood appliances.
19Imports ofhazardous chemicals aregoverned bythePoisons ActandtheHazardous Substances Act.WT/TPR/S/14
Page 44Trade Policy Review
containing controlled CFCs andpolystyrene sheets andproducts made withthecontrolled CFCs. The
import ofCFCs, Halon 2402, Halon 1211andHalon 1301havealsobeenbanned tomeetthephase-out
schedule under thetreaties.
44. Importers ofnatural mineral water andspring water arerequired tosubmit documentary
evidence toprove theclaimed source ofthewater. Theyarealsorequired tosubmit totheFood Control
Department oftheMinistry ofEnvironment ahealth certificate issued bytheplace oforigin forevery
incoming consignment. Importers ofbrandy andwhisky arerequired tosubmit documentary evidence
furnished bytheplace oforigin confirming thattheproducts havebeenagedinwood foraperiod of
atleastthree years. Thestipulated alcohol content ofbrandy andwhisky hasbeenreduced from
40percentto37percent, witheffect from 1May1992.
45. On1February 1992, theRadiation Protection Actwasamended torequire thelicensing of
theimport andexport ofnon-ionising radiation irradiating apparatus (Table AIV.3). TheDirector
ofRadiation Protection, appointed bytheMinister forHealth, grants alicence subject tocertain
conditions.20
Security
46. Fornational security reasons, under theTelecommunication (Dealers) Regulations 1994, an
importer oftelecommunication equipment must seektheprior approval oftheTelecommunications
Authority ofSingapore (Table AIV.3). Fortheprotection ofpublic morals allimporters ofvideo tapes
andvideo discs require animport licence from theBoard ofFilmCensors (Table AIV.4).
Sanitary andphytosanitary regulations
47. Singapore recognizes thesanitary/phytosanitary standards ofother countries, provided the
standards testing donebythecompetent authorities areperformed inaccordance withinternationally
accepted protocols. Suchprotocols include those established byorganizations suchastheAssociation
ofAnalytical Chemists (AOAC), theInternational Commission onMicrobiological Specifications of
Food (ICMSF), theUnited States Food andDrug Administration (FDA), theCodex Alimentarius and
American Public Health Association (APHA). Pesticide residue levels permissible onfresh fruitand
vegetables arebased onMaximum Residue Levels consistent withtheinternational standards setby
theCodex Alimentarius Commission.
48. Sanitary regulations onliveanimals andanimal products areestablished bytheAnimals and
Birds Act. Under thisAct,theMinister ofNational Development mayprohibit theimport andtran-
shipment ofanyproducts ofanimals andbirds thatarelikely toconvey orspread anydisease. The
importation ofanimals andproducts areregulated through theAnimals andBirds (Importation) Order
of1966. TheDirector ofthePrimary Production Department determines andadministers quarantine
regulations onimports ofagricultural commodities bytheAnimals andBirds (Quarantine) Rules.21
49. Phytosanitary regulations ontheimports ofplants wereestablished bytheAgricultural Pests
Act.Under thisAct,theMinister ofNational Development maymake rulestoprevent theintroduction
ofpests intoSingapore. Allplants must befreeofthepests listed intheAgricultural Pests (Plant
20These arestipulated intheRadiation Protection Act,1992 andtheRadiation Protection ActNotifications,
1991.
21GATT (1992), pp.87-88.Singapore WT/TPR/S/14
Page 45
Importation) Rules of1989tobeimported intoSingapore.22Imports ofcertain plants require alicence
under theControl ofPlants Act(Tables AIV.3 andAIV.4).
50. Withtheenforcement oftheControl ofPlants (Imports ofFresh FruitandVegetables) Rules
1994, allimporters offreshfruitandvegetables forlocalsaleorsupply mustapply foranimport licence
which isrenewable every year(Table AIV.3). Fresh produce should notcontain pesticide residues
exceeding thelevels prescribed under theRules. Allconsignments offresh fruitandvegetables shall
besubjected toinspection andsampling bythePrimary Production Department.
(b) Marking, labelling andpackaging
51. Marking,labellingandpackagingregulationsapplyinginSingaporearesetoutinmanyspecific
laws. TheWeights andMeasures Office oftheMinistry ofTrade andIndustry isresponsible for
administering packaging regulations under theWeights andMeasures Order 1986. Thisregulation
specifies certain commodities which mustbepacked. Marking, labelling andpackaging requirements
forpharmaceutical products aresetoutinthePoisons ActanditsRules andtheMedicines Regulations
administered bythePharmaceutical Department oftheMinistry ofHealth.
52. Certain labelling requirements areimposed onfoodimports: freshorchilled dressed poultry
musthavealabelcontaining thename oftheservice abattoir, dateofslaughter andthecountry oforigin;
products withnutritional claim should haveanutritional information panel onitslabel; date-marking
isrequired forpre-packed foodproducts which haveashortshelf-life, suchasmilk, cream, tofu,edible
cooking oilandfoodwhich isstored atchilled temperature. Toprotect public health, newlabelling
requirements forpaintcontaining leadhavebeenintroduced: Type 1labelforpaints containing more
than1percentredleadoxide ormore than5percentofanyother leadcompound andType 2label
forpaints containing 0.06to5percentofanyother leadcompound.
53. TheSingapore Green Labelling Scheme waslaunched inMay1992 asavoluntary scheme.
Theobjectiveoftheschemeistohelpconsumerstoidentifyproductsthatarefriendlytotheenvironment.
These products willbeidentified bytheGreen Label which isthescheme 'scertification logo. Itis
notclear which agency administers thescheme orwhatcriteria areapplied.
54. TheSISIRUNRegistrationSchemecertifiespackaginginaccordancewiththerecommendations
setoutbytheUNCommittee ofExperts ontheTransport ofDangerous Goods. TheUNMark indicates
thatthepackaging corresponds toasuccessfully tested design-type.23
(xv) Government procurement
55. Though Singapore currently isnotamember ofthe1994 Agreement onGovernment
Procurement, ithasobserver status intheWTO Committee onGovernment Procurement andis
negotiating accession totheAgreement. Singapore remains amember ofthe1979 Agreement on
Government Procurement.
56. Theagencies responsible forregistration ofcontractors/suppliers whowishtoparticipate in
public tenders aretheExpenditure Policies Unit(EPU) oftheBudget Division, Ministry ofFinance,
22GATT (1992), p.89.
23SISIR (199a), p.19.WT/TPR/S/14
Page 46Trade Policy Review
theConstruction Industry Development Board, andthePharmaceutical Department oftheMinistry
ofHealth. Firms wishing toactasasupplier totheSingapore Government must register withthe
relevant agency. Foreign firms must havearegistered office inSingapore inorder toqualify for
registration ortheymust appoint alocalagent whomust register withtherelevant agency.24
57. Theprerequisites generally applicable forregistration asgovernment supplier ofgoods and
services are:thesupplier hastoberegistered withtheRegistrar ofCompanies andBusinesses; and
thesupplier must haveapositive netcapital (defined aspaid-up capital plusaccumulated reserves)
atleast5percentoftheregistered financial category applied for.
58. OngovernmentprocurementSingaporepursuesapolicyofopen,fairandcompetitivetendering.
Tenders areinvited byusing open, selective orsingle tendering procedures. Open procedures areused
foralltenders exceeding S$30,000 forallkinds ofpurchases. Selective tendering isnormally conducted
fortenders under thesethresholds. Itisalsousedinexceptional cases where theproject isconfidential
orsensitive.25Tenders areawarded tothelowest bidmeeting tender specifications infull.TheMinistry
ofFinance (Budget Division) investigates complaints/appeals fromsuppliers andinitiates anyremedial
action ifthisisdeemed necessary.
59. Within theframework oftheASEAN Preferential Trading Arrangements, ASEAN countries
accord eachother apreferential margin of2.5percent, which should notexceed US$40,000 worth
ofpreferences pertender. Singapore doesnotgivespecific preferences todomestic suppliers in
government procurement.
60. Between 1990 and1994, theshare ofcontracts above thethreshold forthecovered entities
wasabout twothirds oftotalgovernment procurement (Table IV.7). In1994, thenumber ofgovernment
procurement tenders awarded through openinvitation andopenpre-qualification was74percentof
allgovernment procurement tenders. Inthesame year, more thanhalfofthepurchases byvalue were
articles ofstone, plaster, cement, asbestos, andmica. Oftotalprocurement above thethreshold level,
76percentoriginated inSingapore. Other principal sources included Malaysia, Japan, andChina
(Table IV.8).
24Dun&Bradstreet (1994/95), p.1275.
25GATT(1992),p.93.ConcerningtheGovernmentofSingapore'sapplicationforaccessiontotheAgreemen t
onGovernment Procurement, Singapore offered thefollowing threshold levels: incaseofcentral government
entities, SDR 130,000 forgoods andservices andSDR 8,500,000 forconstruction; regarding allother entities,
SDR450,000 forgoods andservices, andSDR15,000,000 forconstruction. WTO document GPA/IC/SPEC/2,
9January 1996.Singapore WT/TPR/S/14
Page 47
Table IV.7
Value ofgovernment procurement contracts inSingapore, 1990-1994
(Thousands ofSDR)
Above thethreshold
valueaBelow thethreshold
valueTotal Above thethreshold
value aspercentage
oftotal (%)
1990 10,637 12,740 23,377 45.5
1991 33,669 8,567 42,237 79.7
1992 14,823 9,071 23,894 62.0
1993 28,839 15,836 44,675 64.6
1994 17,362 6,493 23,854 72.8
a Threshold value oftheTokyo Round Agreement onGovernment Procurement.
Note: Figures correspond toestimated values ofthecontracts awarded bytheCentral Procurement Office andthePublic Works
Department.
Source: Government ofSingapore.
Table IV.8
Government procurement contractsainSingapore bycountry oforigin, 1994
(Thousands ofSDR)
Product
categoryTotal
num-
berUSA JPN SGP AUS CHN GBR MYS KOR Others Total
Oiland
lubricants 6 517.2 517.2
Tyres and
tubes 9 14.1 238.2 0.0 2.3 91.1 345.8
Paper 1 468.4 468.4
Photocopiers 2 739.8 739.8
Artificial
resins and
plastic
materials, etc. 2 859.3 859.3
Articles of
stone,
plaster,
cement,
asbestos,
mica and
similar
materials, etc. 6 9,184.4 9,184.4
Electric
appliances 31 2.6 112.3 176.0 20.1 326.3 329.7 15.7 65.9 527.4 1,575.9
Furniture 13 186.0 1,123.3 1,309.3
Tyres 1 236.6 236.6
Printing 3 623.4 623.4
Firefighting
equipment 2 184.7 184.7
Computer
equipment 1144.6 144.6
Miscellaneous
equipment 4 1,192.2 1,192.2
Total 81 333.2 866.2 13,217.8 20.1 564.4 329.7 1,343.4 68.2 618.5 17,361.0
a Exceeding threshold value oftheTokyo Round Agreement.
Note: Figures correspond toestimated values ofthecontracts awarded bytheCentral Procurement Office andthePublic Works
Department which areabove thethreshold value.
Source: Government ofSingapore.WT/TPR/S/14
Page 48Trade Policy Review
(xvi) Local-content requirements
61. Singapore doesnotmaintain anylocal-content schemes andthere isnopolicy toencourage
theuseofdomestic inputs.26
(xvii) Rules oforigin
62. Toqualify fortariff preferences, acertificate oforigin isrequired bytheSingapore Customs
andExciseDepartment.ASEANhasimplementedtheCEPTSchemewherethequalifyingorigincriteria
isaminimum of40percentASEAN content.
63. Singapore isamember oftheTechnical Committee oftheWorld Customs Organization (WCO)
charged withharmonizing rulesoforigin fornon-preferential trade within aspecific time-frame. No
changes willberequired toSingapore 'srules oforigin arising from theUruguay Round Agreement
onRules ofOrigin.
(xviii) Trade remedies
64. Singapore does nothave domestic laws andregulations onsafeguard measures.27The
Government ofSingapore iscurrently finalizing itslegislation onAnti-Dumping andonSubsidies and
Countervailing measures inaccordance withtheWTO Agreements.
65. Noimport relief hasbeengranted intheformofsafeguards orcountervailing measures. Anti-
dumping duties havebeenimposed ontheimports ofcertain steelreinforcement barsfrom Malaysia
andTurkey. On29July1995, theMinister forFinance imposed final anti-dumping duties of
S$54 pertonne onimports ofsteelreinforcement barsfromMalaysia. ForTurkey, afinalorder was
made on2December 1995, withduties ranging fromS$16-S$59 pertonne, depending ontheproducing
mill. Anyexcess interim duties collected under either order were ordered toberefunded.
(ixx) Balance-of-payments measures
66. Singapore hasnever hadrecourse totheprovisions ofArticle XVIII:B oftheGATT because
ofbalance-of-payments difficulties.
(xx) Free-trade zones
67. Singapore operates seven free-trade zones where traders maystoredutiable goods andrepack
orre-export merchandise withminimum customs involvement. ThePortofSingapore Authority (PSA)
administers sixfree-trade zones forseaborne cargo, while theCivil Aviation Authority ofSingapore
(CAAS)administersthefree-tradezoneatChangiAirportforairbornecargo.Goodsdonotpassthrough
Singapore customs unless theyaremoved from thefree-trade zoneintothenational territory.
68. Theprincipal incentives foruseofthefree-trade zones are: 72-hour freestorage for
import/export ofconventional cargo andimport ofcontainerized cargo; seven-day freestorage for
export ofcontainerized cargo; 28-day freestorage fortrans-shipment/re-export cargo; freedom from
26GATT (1992), p.97.
27WTO document G/SG/N/1/SGP/1, 12May 1995.Singapore WT/TPR/S/14
Page 49
customs duties andcustoms control documentation while thegoods remain inthezones; extended
storage ofgoods untilmarket conditions arefavourable forre-export orlocaluse;allowance forgoods
tobesampled; andpermission forsaleswithin thezones.
(xxi) Other measures
69. Singapore doesnotimpose minimum import prices noranyvariable import levies.
70. Theimporter ofasensitive item28,orhigh-technology products thataresubject toexport control
byexportingcountriesmayapplytotheTDBforanImportCertificateandDeliveryVerification(ICDV).
Theimporter must make certain thattheproduct isbrought intoSingapore andnotdiverted toany
other place.29
(3) Measures Directly Affecting Exports
71. Exporters require aCentral Registration (CR)number fromtheTDB.30Under theRegulation
ofImports andExports Act1995, anexport permit isrequired toexport allgoods from Singapore.
Except forcertain controlled items (seelater), exporters mayexport theirgoods firstandobtain the
export permit within three daysafterexport. Thepermit isapproved subject tothecondition thatthe
product declared isnotanICDV product (section (2)(xxi), above).31
(i) Export taxes, charges andlevies
72. TheSingapore Government doesnotimpose duties, taxes orsurcharges onexported goods.
TheRubber Association ofSingapore (RAS) previously imposed ataxonrubber exported from
Singapore, butthiswasdiscontinued withtheprivatization oftheRASin1992.
(ii) Export prohibitions
73. TheRegulation ofImports andExports provide fortheprohibition ofexport ofcertain goods
tocertain countries. Exports ofallproducts toIraq,andcertain products toAngola, Rwanda andLibya
areprohibited. Export bansandother export restrictions areapplied forpublic health, public security
orenvironmental considerations. They arealsoapplied inconnection withSingapore 'scompliance
withinternational obligations, suchasthose under theMontreal Protocol onSubstances thatDeplete
theOzone Layer andUnited Nations Security Council resolutions. Since January 1990, Singapore
hasstopped allimport andexport ofivory andparts ofderivatives oftigers andrhinoceros horns,
listed bytheCITES asbeing indanger ofextinction.
28"Sensitive items" arethose products deemed bytheexporting country aspossessing thepotential foruse
asweapons ofmass destruction.
29Control ofImports andExports (Import Certificate andDelivery Verification Procedure) Order of1989.
30GATT (1992), p.100.
31Trade Development Board, p.4-1.WT/TPR/S/14
Page 50Trade Policy Review
(iii) Export licensing
74. TheControl ofExports (Licensing) Order (1990 ed.)governs items subject toexport licensing;
these aremainly related tostrategic, public health, public security orenvironmental considerations.
Goods suchasarms, ammunition andimplements ofwar,andatomic energy materials andequipment
cannot beexported unless alicence hasbeenobtained fromtheArms andExplosives Branch, Singapore
Police Force. Products requiring endorsement forexports include articles ofclothing, helmets, steel,
toygunsandhandcuffs.
75. Exportcontrolsoncertainagriculturalcommoditiesconcernco-operationwithimportingcountries
fortheinternational control ofdiseases andtheprotection ofendangered species ofwildlife. Inthe
caseofwildlife andwildlife products covered bytheCITES anexport approval isrequired bythe
Primary Production Department. Certain environmental controls areimposed onSingapore 's
consumptionandexportsofcontrolledsubstancesinaccordancewiththeMontrealProtocolonSubstances
thatDeplete theOzone Layer. Exports eligible fortariff preferences under theASEAN CEPT must
haveacertificate oforigin issued bytheTDB toobtain preferences intheimporting country.32
(iv) Export restraints
76. Singapore currently maintains fourbilateral export restraint agreements under theUruguay
Round Agreement onTextiles andClothing (ATC) withCanada, theEuropean Union, Norway and
theUnited States.33TheTDB isthenational authority incharge ofallocating textile export quotas;
these aremainly (80percent) allocated onthebasis ofhistoric shares, while 20percentofexport
quotas areputtotender: ineither case,suchquotas maynotbesold. Unused quotas mustbereturned
totheTDB forre-allocation. Textile quotas aretobephased outoveraperiod oftenyears arising
from theimplementation oftheUruguay Round results.
(v) Export cartels
77. TheGovernment ofSingapore hasnopolicy toencourage theformation ofexport cartels.
TheGovernment isunaware oftheexistence ofanysuchcartels inSingapore.
(vi) Voluntary restraints
78. Singapore doesnotimpose voluntary export restraints, other thanthose mentioned above.
(vii) Export subsidies
79. Singapore 'sexport subsidies include TDB'sInternational Trade Incentives andDouble Tax
Deduction, aswellasEDB'sProduction forExport Incentive. Withtheexception ofthesethreesubsidy
programmes, Singapore doesnotgrant maintain anysubsidy within themeaning ofArticle 1.1ofthe
WTO Agreement onSubsidies andCountervailing Measures andwhich isspecific within themeaning
ofArticle 2oftheAgreement.34
32GATT(1992), pp.102-103.
33More information isgiven inGATT (1992), p.103 andChapter V(3)(iv). Theagreements were originally
concluded under theArrangement Regarding International Trade inTextiles (MultiFibre Arrangement).
34WTO document G/SCM/N72/SGP, 13December 1995.Singapore WT/TPR/S/14
Page 51
(viii) Duty drawback
80. Although Singapore hasdutydrawback provisions intheCustoms Act,thesearenotnowused.
(ix) Corporate taxconcessions
81. Anymanufacturing enterprise, withexport sales ofnotlessthanS$100,000 or20percent
ofthevalue ofitstotalannual sales, maybegranted exemption from thepayment ofcorporate tax
inrespect of90percentoftheincremental qualifying profits above theexport base. Thetax-relief
period isanadditional three years forcompanies receiving "pioneer" status35,andfiveyears fornon-
pioneercompanies.Fifteenyears(inclusiveofthepioneer-statustax-reliefperiodforcompaniesreceiving
thatincentive) maybegranted forprojects withafixed capital expenditure ofnotlessthanS$1billion
orforprojects withafixed capital expenditure ofbetween S$150 million andS$1billion, provided
that(i)50percentofthecompany'spaid-upcapitalisheldbypersonspermanentlyresidentinSingapore,
and(ii)theexport enterprise willpromote orenhance theeconomic andtechnological development
ofSingapore.36
82. Selected service companies providing qualifying services andwhich areneither resident nor
haveapermanent establishment inSingapore areentitled toafive-year taxholiday on90percentof
theincreased export service income overthatinafixed baseyear. Thetypes ofservices which qualify
aretechnical services, fabrication ofmachinery andequipment, professional services, dataprocessing,
programmingandothercomputerservices,educationalandtrainingservices,consultancyormanagement
andother approved services.37
83. TheDouble TaxDeduction ofExport Promotion Expenses under theIncome TaxActallows
manufacturing aswellasservices companies toapply fordouble deduction fromtheirtaxable income
ofexpenses incurred forthepromotion ofexports. Approved expenses include participation intrade
fairs, exhibitions andmissions, advertising expenses intradepublications anddirectories, maintaining
overseastradeoffices,productcertificationandpackagingforexportandfeasibilitystudies.Thisscheme
isadministered bytheTDB.38
84. TheTDBadministers other concessionary taxmeasures. TheApproved International Trader
(AIT) Scheme isintended topromote Singapore asaglobal trading centre. Acompany withAITstatus
istaxed ataconcessionary rateof10percentonincome derived frominternational trading activities
inapproved commodities. TheApproved OilTrader (AOT) Scheme isaimed atpromoting Singapore
asaninternational oiltrading centre. Companies granted thestatus ofAOTs aretaxed ataconcessionary
taxrateof10percentonincome derived frominternational trading activities inapproved oilproducts.39
35Formore details on"pioneer" status, seealsosection (4)(iv)(a).
36Dun&Bradstreet (1994/95), p.1276.
37Marks (1994), pp.66-67; andSICC, p.32.
38GATT (1992), p.105andSICC, p.36.
39SICC, p.38.WT/TPR/S/14
Page 52Trade Policy Review
(x) Export finance
85. TheMonetaryAuthorityofSingapore(MAS)providesassistancethrougharediscountingscheme
forre-export andexport billsofexchange. Thisscheme seeks toprovide exporters withbetter access
toshort-term financing. TheMAS rediscount ratecurrently stands at3.5percentperannum. Banks
areallowed tocharge acommission ofnotmore than1.5percentperannum above thediscount rate.
According totheauthorities, itisnotamajor component ofexport financing inSingapore, accounting
foraninsignificant proportion oftotalcommercial billsfinanced.
(xi) Export insurance andguarantees
86. TheGovernment ofSingapore hasnoexport credit guarantee orinsurance schemes. Allexport
credit guarantees andinsurance areprovided bycommercial banks andother financial institutions.
However,ECICSCreditInsuranceLtd.,whichisasubsidiaryofECICSHoldingsLtd.ajointenterprise
between theGovernment andtheprivate sector, insures manufacturers andtraders against non-payment
ofcredits relating todomestic sales, exports, entrepôt trade andcorresponding services. Therisks
insured include commercial andnon-commercial risks. Theinsurance scheme doesnotcover anyloss
arising from theinsured party'sownnegligence orhisfailure tocomply withthestated conditions.
Italsodoesnotcover foreign exchange losses arising fromacollecting bank'soragent'sfailure, nor
doesitcover risksthatarenormally commercially insurable, suchasmarine andfirerisks.40
(xii) Export promotion, marketing assistance
87. TheTDB, asthenational tradepromotion agency, provides information onmarket intelligence
andbusiness opportunities toSingapore exporters ofgoods andservices. Italsoorganizes the
participation ofSingapore companies ininternational tradefairsandbusiness missions toexpand their
business operations overseas. About 70to80fairsandmissions areorganized inayear. TheTDB
funds itsexport promotion activities largely fromincome generated fromdocumentation feescollected
fortheadministration ofSingapore 'strade, andrevenues from thesalebytender oftextile andCFC
quotas.
(xiii) Export performance requirements
88. Singapore doesnothaveanyregulations imposing export performance requirements.41The
Government doeshaveexport requirements forforeign investors.
(xiv) Export processing zones
89. There arenoexport processing zones inSingapore, although, asnoted insection (2)(xx) above,
some packaging operations arecarried outinthefree-trade zones.
(xv) Other measures
90. Certain Singapore-made exports benefit from theGeneralized System ofpreferences (GSP)
schemes established bysome developed countries. Singapore 'sexports under theGSPincreased over
recent years, amounting toUS$4.5 billion in1995; untilrecently mostwenttotheEuropean Union
40GATT (1992), p.106.
41GATT (1992), p.108.Singapore WT/TPR/S/14
Page 53
(Table IV.9). Graduation fromthenewEUGSPScheme, expected totakeplace in1998, would affect
thecompetitiveness ofexports chiefly intheelectrical/electronics, chemical andpharmaceuticals
industries (Chapter II).42
Table IV.9
Exports under theGeneralized System ofPreferences from Singapore, 1990-95
(US$ million)
1990 1991 1992b1993 1994 1995
Total GSPexportsa2,072 2,462 1,759 4,084 4,474 4,496
European Union 1,406 1,889 1,546 3,570 3,822 3,890
Japan 457 333 112 260 304 294
Canada 76 78 39 85 91 57
Other countries 133 162 62 169 257 255
a Statistics onGSPexports arebased oncertificates forcountry oforigin issued bytheTrade Development Board forexporters
intending toexport toGSPdonor countries. Thefigures maybeoverestimated totheextent thatnotalltheapplications succeed
inexporting theirgoods intothese countries.
b The1992 figures ofseaconsignments figures arenotcaptured inthedata.
Source: Government ofSingapore.
91. Allfoodproducts forexport arerequired toconform withthestandards laiddown intheFood
Regulations. Exporters must alsoensure thattheyconform withtheimporting country 'sstandards
andimport requirement.
92. Singapore 'sexports havebeenaffected, insome cases, bytrade actions inother countries.
Between 1991 and1995, 15anti-dumping andtwocountervailing dutyorders were imposed on
Singapore 'sexports. Anti-dumping actions weremainly initiated byAustralia, Canada, theEuropean
Union andtheUnited States. Theproducts affected weremainly anti-friction bearings, colour picture
tubes, industrial belts, photo albums, colour television sets,electronic weighing scales, video cassette
recorders, polystyrene, vegetable oilandclear floatglass. TheUnited States wastheonlycountry
thatimposed countervailing dutyorders onSingapore 'sexports ofanti-friction bearings andrefrigeration
compressors. Singapore isconcerned about theeasewithwhich anti-dumping/countervailing dutycases
wereinitiated andwhattheauthorities seeasarbitrariness andinherent biasinthesystem leading to
inflated margins andinjury determination. Singapore 'sexports havealsobeensubject toother trade
actions ininternational markets (Table IV.10).
93. According totheauthorities, Singapore 'sexports havealsobeenaffected by"unilateral and
arbitrary" interpretation ofrules oforigin, especially bytheEuropean Union andtheUnited States.
Singapore isconcerned about twoproduct-specific rulesoforigin established bytheEuropean Union:
therulesrelating tosemi-conductors which require theprocess of"diffusion" tobeconducted inEurope
inorder toberecognized as"Community origin", andalocal-content requirement, higher thanthe
normal 40percent,inrespect ofsome electrical andelectronic appliances. IntheUnited States market,
Singapore 'sexports offabricated steelstructures andmachinery centres havefaced market-access
problems duetounilateral interpretation ofcertain aspects ofrules oforigin.43
42WTO (1995b), andFinancial Times, 8February 1996.
43GATT (1992), p.109.WT/TPR/S/14
Page 54Trade Policy Review
Table IV.10
Trade actions affecting Singapore 'sexports, 1995
Country Product Type ofrestriction
Australia Clear floatglass Anti-dumping duty
Compact discplayers Anti-dumping duty
Expandable polystyrene Anti-dumping duty
Fatty acidesters Anti-dumping duty
Food products Quarantine restrictions
Canada Microwave ovens Anti-dumping duty
Photo albums Anti-dumping duty
European Union Colour television sets Anti-dumping duty
Compact discplayers Anti-dumping duty
Video cassette recorders Anti-dumping duty
Indonesia Rattan (allrattan plaiting material) Export ban
Plywood Export byappointed company
Japan Silkfabrics Prior import confirmation requirements
Malaysia Electrical jugs Import permits
Milk powder Import permits
Organic fertilizers (animal origin) Import licence
Rattan Export ban
PVC floor covering Anti-dumping duty
Waste paper (except over-issued waste paper) Export licence
Norway Textiles andtextile products Multi-fibre arrangement
Spain Canned food: seafood ricecontaining bivalve molluscs Detention ofshipment under EUDirective
Chinese Taipei Seafood Import ban
United States Textiles andtextile products Rules ofOrigin
Ballbearings Federal acquisition regulation
Anti-dumping duty
Countervailing duty
Refrigerator compressors Countervailing duty
Export charges
Steel tubes andpipes Anti-dumping duty
Machine tools Import monitoring programme
Colour television picture tubes Anti-dumping duty
Industrial belts Anti-dumping duty
Source: Government ofSingapore; andWTO documents G/ADP/N/8 andADP/W/389, 5January 1996.
(4) Measures Affecting Production andTrade
94. Theprincipal lawsgoverning industry assistance inSingapore aretheEconomic Expansion
Incentives ActandtheIncome TaxAct.Assistance provided bytheGovernment ismainly thefollowing:
taxconcessions topromote newindustries, fortheupgrading ofexisting industries andforresearch
anddevelopment; theprovision ofloans tohelpcompanies upgrade theirproduction activities; and
theprovision ofgrants toencourage localcompanies todevelop anddesign newproducts andprocesses
andforthetraining oftechnical skills. Some 14industrial clusters comprising more thantwothirds
ofGDP were chosen forthepurpose ofinvestment instrategic projects. More details aregiven in
BoxIV.2.Singapore WT/TPR/S/14
Page 55
BoxIV.2: Industrial Clusters inSingapore
TheGovernment ofSingapore hasidentified 14clusters inwhich thelinkages among industries areso
strong thatoneindustry would notbeviable intheabsence oftheothers. These clusters account for
more than twothirds ofGDP inSingapore. TheGovernment isprepared toinvest inthecore
capabilities ofthese clusters orprovide special incentives toaccelerate their development. Thecore
capabilities thathave been identified fallintothebroad categories ofnatural advantages, created
competitiveness advantages andindustry structures/attributes. Themain objectives ineachcluster arethe
following:
1. Commodity trading: todevelop Singapore into aleading international trading hubwith
competence inoffshore trading, trans-shipment andre-export trading.
2. Shipping: tostrengthen andbroaden Singapore 'sposition asaleading maritime hub;toestablish
Singapore asoneoftheregional headquarters forshipping andshipmanagement activities; topromote
efficient feeder shipping services byshipping lines.
3. Precision engineering: tobecome apremier designer, manufacturer andmarketeer ofniche high
endprecision components andsystems.
4. Electronics: toexcel inselected specialized technologies; andtoestablish Singapore asa
premier manufacturing centre ofhighvalue-added electronic products/components aswellasanR&D and
product management centre fortheAsia-Pacific region.
5. Information technology: tosupport Singapore asaneffective exploiter ofinformation technology
and; tobeacompetitive exporter ofsoftware products andservices focusing onstrategic sectors and
capitalizing onniche technologies.
6. Petroleum andpetrochemical: todevelop Singapore intoaworld-scale integrated petroleum and
petrochemical hub.
7. Construction: toenhance Singapore 'scompetitiveness inconstruction services; andtoestablish
Singapore asoneofthecentres forconstruction services fortheAsia-Pacific region.
8. Heavy engineering: todevelop Singapore 'sposition asamajor centre forship repair and
oil-rig construction; andtodevelop Singapore intoamajor centre formanufacturing andservicing ofoil
andgas-field equipment.
9. Finance: tobecome amajor international financial andfinancial news centre.
10. Insurance: toestablish Singapore asapremier regional insurance andreinsurance centre with
meaningful capacity; andtoincrease theinsurance coverage ofthepopulation toalevel comparable to
thatofdeveloped nations.
11. General supporting industries: toestablish Singapore asoneoftheregional centres providing a
broad range ofinternationally competitive andhigh quality products andservices; andtoestablish
Singapore asaone-stop services centre.
12. Tourism: toestablish Singapore asapremier visitor destination with universal appeal anda
leading international hubforaviation, convention/exhibition andtravel/tourism-related services.
13. International hub: toestablish Singapore asaninternational business centre; toestablish
Singapore asanoperational headquarters formultinational companies; andtodevelop Singapore asan
international cultural centre.
14. Domestic industries: toupgrade theefficiency rather than pure expansion.
Source: Ministry ofTrade andIndustry, TheStrategic Economic Plan: Towards adeveloped nation,
1991.WT/TPR/S/14
Page 56Trade Policy Review
95. Many government andsemi-government institutions dealwithindustrial development and
investmentissuesinSingapore.MajoragenciesandstatutoryboardsincludetheEconomicDevelopment
Board (EDB), theSISIR, theNational Productivity Board (NPB), theTDB andtheJurong Town
Corporation (JTC). More details aregiven inBoxIV.2.
(i) Investment promotion
96. Oneofthemajor economic objectives oftheGovernment ofSingapore istomake thecountry
asattractive aspossible todomestic andforeign investors. Asnoted inChapter III,Singapore makes
nodistinction between foreign private investment andlocalinvestment. Manufacturing andservices
firms interested ininvesting inSingapore maybenefit from incentives provided bytheEDB.44
97. Investment incentives areusedbothforthepromotion ofnewinvestments inindustries and
services andforencouraging existing companies toupgrade through mechanization andautomation
andthrough theintroduction ofnewproducts andservices.45Investment incentives, mostly intheform
oftaxconcessions, areexplained inSection (iv)below.
(ii) Structural adjustment
98. Because domestic labour supply islimited, theGovernment ofSingapore isactively channelling
therestructuring ofoutput towards higher value-added andknowledge-and-skill-intensive goods and
services, aswellastowards theupgrading ofthemeans ofproduction. TheSkills Development Fund
(SDF) wasestablished in1979 toprovide financial incentives toemployers forthedevelopment of
higher skillsandexpertise tosupport Singapore 'seconomic restructuring policy. TheFundwasfinanced
from levies onallemployers. Thepresent rateisat1percentofaworker 'sgross monthly salary
S$1,000 orless,effective from1April 1995orS$2,whichever isthegreater. (BoxIV.3andBoxIV.4)
99. InMarch 1995, theGovernment ofSingapore setupamulti-agency taskforce oninstitutional
reform forproductivity andquality improvements, theTask Force onInstitutional Reform for
Productivity andQuality Improvements. Thefindings oftheTask Force were announced on
1November 1995. TheTaskForce recommended thatanewagency, theSingapore Productivity and
StandardsBoard,belaunchedin1996,withthemissionofincreasingSingapore'stotalfactorproductivity
growth. Itwillintegrate thefunctions oftheNPBandtheSISIR andtakeovertheSmall andMedium
Enterprise Development Division oftheEDB Itwasduetobeofficially launched inApril 1996.46
44GATT (1992), p.113.
45SICC (1994), p.31.
46TheStraits Times, 2November 1995.Singapore WT/TPR/S/14
Page 57
BoxIV.3: Institutions with responsibilities forindustrial development andinvestment inSingapore
1. TheEconomic Development Board (EDB)
TheEDB isastatutory board responsible fortheplanning andpromotion ofindustrial development in
manufacturing andservices inSingapore. Besides dealing withenquiries andevaluating applications for
taxandother incentives, theEDB assists investors toobtain landandfactory space, long-term financing,
skilled manpower andother services, andtolocate suppliers, sub-contractors andjoint-venture partners.
During thecurrent phase ofindustrial development inSingapore, theEDB'sfocus ison:thepromotion
ofinvestments inmanufacturing and services, where Singapore hasacomparative advantage;
encouraging companies touseSingapore asa"total business centre" todesign, develop, produce, market,
export andservice their products; encouraging existing foreign andlocal industries toupgrade their skill
andtechnology levels through investment innew technology, automation, training andproduct
development activities; adoption ofstrategic marketing initiatives tomatch theinvestors 'growth plans
withSingapore 'seconomic development goals; stimulating thedevelopment oflocal entrepreneurs and
thegrowth ofsmall business enterprises, inparticular those which areexport-oriented; providing training
innewskills required bythemanufacturing andtechnical services sectors.
2. Singapore Institute ofStandards &Industrial Research (SISIR)
TheSISIR isastatutory board dedicated toleading local industries towards greater international
competitiveness through quality andindustrial technology. Tothisend,itsengineers, applied scientists
andtechnologists offer ahighly integrated package ofmulti-discipline services toassist companies to
improve anddevelop newproducts andprocesses. These services cover contract R&D, design and
development, technological consultancy andtraining, testing, failure analysis, calibration andother
technological services. SISIR 'smain areas ofactivity areitsrôleasSingapore 'snational standards
authority andamulti-disciplinary technology resource centre forSingapore 'sindustries.
3. TheTrade Development Board (TDB)
TheTDB isastatutory board setuptodevelop thecountry 'sinternational trade. Itsmission istoelevate
Singapore 'sposition intheinternational trading arena toahubforallforms ofinternational trading
activities andtopromote Singapore 'sexport ofgoods andservices aswellasdevelop newmarkets by
organizing theparticipation ofSingapore companies atinternational exhibitions andtrade missions. The
TDB provides assistance tobothlocal andforeign companies touseSingapore asabaseofoperations for
alltypes oftrading activities, including entrepôt trade, countertrade aswellasregional warehousing and
distribution.
4. Jurong Town Corporation (JTC)
TheJTCisastatutory board andresponsible forthedevelopment andmanagement ofindustrial estates in
Singapore. Itsfunctions alsoinclude: theallocation ofprepared industrial landsiteswithinfrastructural
facilities onlease terms; theconstruction andleasing ofready-built standard andflatted factory buildings;
theprovision ofportandbulkcargo handling facilities attheJurong Industrial Port; andtheprovision of
engineering andlogistics back-up fortheAsia-Pacific offshore oilindustry attheJurong Marine Base.
Source: SICC (1994)WT/TPR/S/14
Page 58Trade Policy Review
BoxIV.4: Skills Development Fund (SDF)
Toencourage employers toundertake training oftheir staff, particularly "lower-rung" workers, theSDF
hasintroduced various grant schemes designed toaddress thespecific needs ofemployers intraining their
workers. Essentially, funding hinges onanemployer-based training principle, therationale being that
employers areinthebestposition toidentify training needs fornewskills required forupgrading or
restructuring their operations. TheSDF grants serve todefray employers 'costs incurred intraining.
Forfinancial year (FY) 1994, theSDF committed more than S$67 million forover 526,000 training
places.
Apart from providing incentive grants, theSDF played acritical roleinthedevelopment ofthetraining
infrastructure inSingapore. Itundertook anumber ofprojects which haddirect impact increating more
training opportunities forworkers. Anexample istheCore Skills forEffectiveness andChange
(COSEC) where over112,000 workers have been trained tohelpthem adapt tochanges attheworkplace.
Two other schemes, Basic Education forSkills Training (BEST) andWorker Improvement through
Secondary Education (WISE), provide over530,000 places forfoundational skills training onliteracy and
numeracy. Workers canthenmove onforfurther skillupgrading. Partnership projects were initiated,
which resulted inanational programme oninformation technology forover54,000 workers.
Allthese have resulted insignificant increases inemployers 'efforts intraining since theSDF started in
1979. Applications forincentive grants rosefrom 54inFY1979 to47,125 inFY1994. Similarly,
training places increased from 235to526,380 whilst grant commitments correspondingly went upfrom
S$0.9 million toS$67.7 million. Cumulatively, some 32,000 companies have benefitted from theSDF.
Employers 'training investment overpayroll increased from 1.8percentin1988 to3.4percentin1993.
Thegrants given toemployers arenottiedtohowmuch theycontribute. There isnoquidproquobut
employers have toshare partofthecostintraining. Another feature oftheFund isthattraining must be
company-oriented oremployer-driven.
Source: Government ofSingapore.Singapore WT/TPR/S/14
Page 59
(iii) Assistance forresearch anddevelopment
100. Themainobjectives ofSingapore 'sresearch anddevelopment policy aretoimprove thedesign
anddevelopment capacity ofestablished industries andtohelptheintroduction ofnewtechnologies
which areexpected tocontribute toeconomic growth.47In1993, Singapore 'sgross expenditure on
R&D (government andprivate) amounted toS$998 million (1.12 percentofGDP). S$368 million
ofgovernment funds were allocated forR&D in1995, slightly more than0.3percentofGDP.48
101. TheResearchandDevelopmentAssistanceScheme(RDAS),administeredbytheNationalScience
andTechnology Board (NSTB), seeks topromote research anddevelopment thatwillleadtosignificant
technological capacity, commercial viability andenhancement ofacompany 'sresearch anddevelopment
capability. TheRDAS cansupport upto50percentoftotaldirect project costs. Fundable items are
R&Dmanpower,newequipment,consumables,trainingandmiscellaneousR&Dexpenses.Therecipient
company isexpected torepay totheNSTB iftheproject results inacommercially viable product.
In1994, RDAS approved 21projects withgrants amounting toS$18 million.
102. TheResearch Incentive Scheme forCompanies (RISC), alsoadministered bytheNSTB, is
intended tosupport thedevelopment ofresearch anddevelopment capabilities instrategic technology,
andincreasethecompanies'long-termcompetitiveness.In1994,theRISCapprovedeightgrantstotalling
S$45.5 million.
103. TheNSTB willspend S$60 million peryearongrants forthecommercialization ofacademic
research. Theincrease infunding reflects fears thatSingapore 'sresearch anddevelopment baseis
inadequate, andthatsmaller high-technology companies needtobeencouraged.49There isalsoatax
incentive bymeans ofdouble deduction forapproved research anddevelopment expenses; thisis
applicable toallcompanies under theIncome TaxAct.
104. In1992, thePatent Application Fund wassetuptoprovide financial assistance toapplicants
todefray thecostsofpatent applications forintellectual property rights. Since 1992, 26applications
havebeenapproved.
105. Inaddition tothenormal capital allowances explained below, aninvestment allowance ofup
to50percentofthefixed investment inR&D equipment canbeconsidered. Plant andmachinery
usedforR&D canbedepreciated overthree years, andR&D building over25years. Withholding
taxes onpayments toforeigners ofroyalties, technical assistance feesandcontributions toR&D may
beexempted.50
(iv) Production subsidies,and taxconcessions
106. Singapore doesnotprovide production subsidies targeted atspecific sectors orproduct groups.
TheSingapore Government maintains anumber ofincentives including theaward of"pioneer" status
47GATT (1992), p.114.
481995 Budget Statement, 1March 1995, p.II-10.
49Economist Intelligence Unit1995, 3rdQuarter, p.10.
50GATT (1992), pp.115-116.WT/TPR/S/14
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(seebelow) andexpansion incentives toattract bothforeign andlocalinvestment. Nodifferentiation
ismade between foreign andlocalinvestment capital ingranting these incentives.51
(a) Pioneer status
107. Toachieve pioneer status, companies engaged inmanufacturing andcertain services activities
needtointroduce advanced technology, know-how orskills. Suchcompanies maythenbeexempted
from the27percentcorporate taxonprofits arising from pioneer activity foraperiod offiveto
tenyears. Additional years ofpioneer status maybegranted tomanufacturing companies thatinclude
researchanddevelopmentaspartoftheiroperations.Asapost-pioneerincentive,uponexpiryofpioneer
incentives, areduced corporate taxrateof15percentmaybegranted forupto10years.52The
mechanism isadministered bytheEDB.
108. In1991, pioneer firms generated 63percentofmanufacturing value-added, 48percentof
manufacturing employment, andnearly 74percentofmanufacturing exports.53
(b) Expansion incentives
109. Theprofits fromapproved plantexpansion innewproductive equipment canbeexempted from
corporate taxupto10years. Toqualify fortheincentive, thecompany must incur newcapital
expenditure ofatleastS$10 million. Thisincentive isadministered bytheEDB.
(c) Investment allowances
110. Under theInvestment Allowance Programme, acompany canbegranted anallowance ofup
to50percentoftheinvestment inplant andequipment oftheapproved project.
111. Thewithholding taxoninterest payable toforeign lenders forloans (26percentwitheffect
fromassessment year1997) canbecompletely orpartially exempted. TheOverseas Enterprise Incentive
andtheDouble taxdeductions foroverseas investment development expenditure wereintroduced in
1994. These schemes areadministered bytheEDB.
112. TheApproved Aircraft Leasing Scheme (AALS) administered bytheTDB, wasintroduced
in1995 toencourage aircraft operating lessors toestablish anoperations baseinSingapore. Under
theAALS, approved companies enjoy aconcessionary taxrateof10percentonincome derived from
offshore leasing operations. Theconcession isforafive-year period andmaybeextended thereafter.
(v) Competition policy
113. Singapore considers theoperation ofmarket forces asthebestsafeguard against anti-competitive
andrestrictive business practices. Asnoted previously, Singapore doesnothaveanyspecific anti-trust
orcompetition laws, although financial services areregulated byMAS, telecommunication services
areregulated bytheTelecommunication Authority ofSingapore (TAS) andelectricity andpiped gas
services areregulated bythePublic Utilities Board.
51GATT (1992), p.116.
52SICC, p.31.
53IMF.Singapore WT/TPR/S/14
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(vi) Price control
114. ThePrice Control Act1950, administered bytheMinistry ofTrade andIndustry, enables the
Government tocontrol theprices ofessential foodstuffs intheevent ofanemergency. However, the
Acthasnever beeninvoked. ThePublic Utilities Board, having recently corporated itselectricity and
gasundertakings, continues initsrôleasthewater authority andhasassumed therôleofregulatory
authority fortheelectricity andpiped gasservices which areprovided byprivate companies licensed
bytheBoard. TheBoard isrequired, under thePublic Utilities Act,toensure thatitstotalrevenues
aresufficient annually tomeetitsoperating expenses andthecostoftheservices oftheBoard. The
Board therefore setsitstariffs forwater supply toenable ittomeetthefinancial requirements ofthe
Act. Italsoapproves, asrequired bytheAct,tariffs forelectricity andpiped gassetbythepublic
licensees.
(vii) Regional assistance
115. Singapore doesnotoperate anyregional assistance scheme within theisland.54Details ofthe
"Growth Triangle" comprising Singapore, Johor StateofMalaysia andtheRiauIslands ofIndonesia
aregiven inBoxII.1.
(viii) Other measures
116. TheGovernment supports localenterprises byseveral schemes, whose totaloutlay hasreached
about S$5billion every yearsince 1990.55TheLocal Enterprise Finance Scheme (LEFS) provided
S$451 million atpreferential ratestofinance localenterprise projects in1994. These loans helped
local companies toinvest inmodern andsophisticated machinery. TheLocal Enterprise Technical
Assistance Scheme grants loans tolocalcompanies toautomate andcomputerize theiroperations, plan
strategically andobtain ISOcertification (Table IV.11).56Thescheme isopen tomanufacturing or
services companies witha30percentlocalequity, andfixedproductive assets oflessthanS$12million
(formanufacturing companies) orastaffoffewer than100(forservice companies).57Bothschemes
areadministered bytheEDB.
Table IV.11
Sums approved tosupport local enterprises inSingapore, 1987-93
(S$million)
Local enterprise
finance schemeLocal enterprise
technical assistanceInvestment
allowanceDouble tax
deductionOthers Total
1987 289.2 3.0 24.1 9.5 0.9 325.8
1988 254.1 3.8 38.0 13.2 1.9 311.0
1989 271.2 5.5 31.1 14.5 33.4 355.7
1990 321.5 8.2 78.7 11.8 39.9 460.1
1991 355.9 10.3 118.6 12.0 23.7 520.5
1992 338.8 26.4 66.1 16.6 11.4 459.3
1993 385.2 7.6 115.5 13.5 4.9 526.7
Source: Economic Development Board (1994) Year Book, P.75
54GATT (1992), p.119.
55Economic Development Board (1994), p.50.
56Ministry ofTrade andIndustry, (1994), p.54.
57GATT (1992), p.122.WT/TPR/S/14
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(ix) Enforcement ofintellectual property rights
117. Onratifying theUruguay Round Agreements, Singapore ipsofacto became aparty tothe
Agreement onTrade-Related Aspects ofIntellectual Property Rights (TRIPS). TheAgreement came
intoforce on1January 1995, butdeveloping countries haveatransitional period before being bound
toapply itsprovisions. ForSingapore, obligations under theAgreement willcome intoforce asof
1January 2000. According totheauthorities, Singapore willbring itsintellectual property régime
intofullcompliance withtheTRIPS Agreement within thetimeperiod allowed fordeveloping countries.
Aninter-Ministerial Committee wasestablished toreview Singapore 'sintellectual property rights
legislation andtorecommend thechanges required tomeettheobligations oftheTRIPS Agreement.
118. Singapore hasbeenamember oftheWorld Intellectual Property Organisation (WIPO) since
December 1990. Singapore isalsoaparty totheParis Convention, thePatent Cooperation Treaty
andtheBudapest Treaty ontheInternational Recognition ofMicroorganisms forthepurposes ofpatent
Procedure. Singapore 'saccession totheBerne Convention, theRome Convention andtheTreaty on
Intellectual Property inRespect ofIntegrated Circuits isunder review aspartofitswork onthe
implementation oftheTRIPS Agreement.
119. Thenumber oftrade mark applications hasshown anincreasing tendency: 5,573 in1980,
8,791 in1990, and11,349 in1994. Thenumber ofpatents applications hasalsoincreased: 634in
1980, 1,208 in1990 and1,818 in1994.
120. Singapore provides bothcivilandcriminal avenues fortheenforcement ofintellectual property
rights. Civil remedies intheCourts areatthediscretion oftheintellectual property right owners.
Thepolice assist intellectual property rightowners toexecute search warrants incopyright andtrade
markcasestorecover incriminating evidence. Theoffences ofimporting, making, selling andexposing
forsaleorhireofinfringing articles under theCopyright Actorthecounterfeiting oftrademarks under
theTrade Marks Actcarry apenalty ofuptofiveyears and/or afineofuptoS$100,000.
121. On15February 1995, theSingapore Police formed acentralized unitunder theCommercial
Crime Division tofacilitate theexecution ofsearch warrants. Theremedies apply bothtolocaland
foreign rightholders. According totheauthorities, theGovernment doesnotcompile dataonthetrend
ofintellectual property piracy ratesinSingapore.
122. AttheASEAN Summit inDecember 1995, theASEAN countries signed anASEAN Agreement
onIntellectual Property Cooperation. Under theAgreement theASEAN countries agreed toco-operate
invarious areas ofintellectual property, e.g.exploring thepossibility ofthesetting upofanASEAN
Patent andTrade Mark system, training, enforcement, automation, andnetworking.
(a) Copyrights andrelated rights
123. Copyright andrelated rights inSingapore aregoverned bytheCopyright Act1987, which
repealed theUnited Kingdom Imperial Copyright Actof1911, theCopyright Act(Cap. 63),the
Copyright (Gramophone &Government Broadcasting) Act(Cap. 64)andSection 38oftheSingapore
Broadcasting Corporation Act(Cap. 297)nowrepealed andreplaced bytheSingapore Broadcasting
Authority Act.
124. Aworkenjoys copyright protection during itsauthor 'slifetime plus50years afterhis/her death.
Sound recordings, cinema films, television andsound broadcasts andcable programmes havecopyright
protection for50years afterfirstpublication, firstbroadcast orfirstinclusion inthecable programmeSingapore WT/TPR/S/14
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service, asappropriate. Inthecaseofpublished works, theperiod ofprotection isshorter: i.e.25years
from theyearinwhich theedition wasfirstpublished.
(b) Trademarks
125. Thelawsproviding fortheregistration andprotection oftrademarks inSingapore arederived
from theUnited Kingdom 'sTrade Marks Act1938 andare:theTrade Marks Act;theTrade Marks
Rules 1991; andtheTrade Marks (Amendment) Rules 1992. Aregistered trademark confers astatutory
rightinthatmark totheregistered proprietor. Registration ofatrademark takes effect evenifthe
mark hasnotbeenused. Theregistration ofatrademark isforanindefinite period solongasthe
renewal feesofS$200 arepaidevery tenth yeartotheRegistrar ofTrade Marks.
126. Anyperson claiming tobetheproprietor ofamark mayapply foritsregistration. Anyone
whohasapplied foraregistration intheUnited Kingdom, orother country withwhich Singapore has
reciprocal trademark relations, mayapply forthemark inSingapore within sixmonths oftheforeign
registration andreceive thereon thesame filing dateastheearlier foreign registration.58Countries
whohavesigned theTRIPS Agreement andmembers oftheParis Convention arealsoentitled tothe
sixmonth priority claim.
(c) Patents
127. Thelawgoverning patent protection inSingapore isthePatents Act,which came intoeffect
on23February 1995. Themain principles setoutinthePatents Act1994 areparticularly close to
those ofthePatents Act1977 oftheUnited Kingdom. Under thePatents Act1994, patent protection
lastsfor20years from thedateoffiling theapplication.
128. Aprovision inSingapore 'sPatent (Compulsory Licensing) Actof1968, Section 13(1) permits
theGovernment tobuypatented products fromanysource (including unauthorized producers) foruse
inGovernmentmedicalfacilitieswithoutlegalinfringementofthepatent.Althoughmanyothercountries
havesimilar provisions foruseintheevent ofanational emergency orcatastrophe, theGovernment
ofSingapore hasusedSection 13(1) invirtually allofitspharmaceutical tenders tokeepexpenditures
down.59
129. APatents (Amendment) Billwasintroduced inParliament on27September 1995. TheBill
incorporates theamendments tomake thePatents Act1994 consistent withtheTRIPS Agreement.
Thebillstipulates thatatanytimeaftertheexpiration ofthree years from thedateofthegrant ofa
patent orfouryears fromthedateoffiling ofthepatent application, whichever isthelater, anyperson
mayapply tothecourt forthegrant ofalicence under thepatent upon thegrounds thatamarket for
thepatented invention isnotbeing supplied (oronreasonable terms) inSingapore.60ThePatents
(Amendment) Act1995came intoforceon1January 1996. Italsoprovides fortheabolition ofdifferent
categories ofitems thatdonotconstitute inventions forthepurpose ofpatentability inlinewiththe
TRIPs Agreement.
58Dun&Bradstreet (1994/95), p.1278.
59Dun&Bradstreet (1994/95), p.1278.
60This isbeing enacted tomake thePatents Actconform toArticle 31ofTRIPS.WT/TPR/S/14
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(d) Geographical indications andtopographies ofintegrated circuits
130. Laws inrelation togeographical indications andlayout designs ofintegrated circuits willbe
considered aspartofthework ontheimplementation oftheTRIPS Agreement. Atpresent, Singapore
hasnolawsproviding fortheprotection ofgeographical indications norlayout designs ofintegrated
circuits. However, inimplementing theTRIPS Agreement, itwillprovide forsuch legislation.
According totheauthorities, protection ofgeographical indications islikely tobesubsumed under the
Trade Marks Act.Newlegislation isbeing planned fortheprotection ofthelayout designs ofintegrated
circuits.
(e) Industrial designs
131. TheUnited Kingdom Designs (Protection) Act(Cap. 339)provides forprotection inSingapore
ofdesigns registered intheUnited Kingdom. Registration ofindustrial designs intheUnited Kingdom
gives theregistered proprietor thesame privileges andrights inSingapore asthough thecertificate
ofregistration intheUnited Kingdom hadbeenissued withanextension toSingapore. Design protection
under theUnited Kingdom Designs (Protection) Act(Cap.. 389)isforaninitial period offiveyears
subject torenewals toamaximum of25years.