Last updated: 24 Jan 2012
Doing business
Current business situation
On 1 January 2010 the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) came into force. Australian businesses are urged to take a close look at the opportunities created by the agreement, as it will deliver real commercial benefit for Australian exporters and investors doing business in Singapore. More information on AANZFTA.
A key objective of Singapore’s Government has been to position the country as a regional hub and pacesetter in economic development and reform. In particular, the government has introduced measures to enhance Singapore's position as a hub for education, financial and transport services. In recent years it has also taken measures to improve the education and training of Singaporeans, with a focus on developing a ‘knowledge economy’.
Business culture
Relationship-building is a very important aspect to doing business and is best achieved outside of the workplace, usually during lunch or dinner. It is important to exchange business cards upon introduction. Business cards are to be received with two hands and closely inspected before placing it into your cardholder.
Please understand the structure of Chinese, Malay and Indian names. Many Singaporeans adopt a European name. It is important to use title plus family name upon introduction. The European (or given) name is to be applied only once you are confident that a relationship has developed.
For men it is common practice to wear short sleeves and open neck shirts. However, Australian visitors on a first call should consider wearing long sleeve shirts and tie. A jacket is considered very formal. For women, a formal blouse and skirt is the usual attire, and stockings are optional.
There are many useful publications on business culture in Singapore such as 'Culture Shock Singapore' and 'Kiss, Bow or Shake Hands: How to do business in 60 countries'. Visitors may want to read these books before their visit.
Setting up in Singapore
Setting up an overseas office can be expensive and usually, but not always, follows an initial market entry, working through agents or distributors. The benefits to Australian business people of setting up offices overseas can be significant.
You need to think about:
- The office location – convenience to customers, security and social attitude towards the integrity of the neighbourhood.
- Costs per metre to rent or lease.
- Utilities, eg. availability of water, power, electricity, telephone, fax and Internet connections.
- General building access, eg. user-friendliness of reception area and disabled access.
- Parking for visitors and tenants.
- Amenities, eg. meeting room, tearoom, toilets.
- The lease agreement exit clause - consult a lawyer who specialises in property agreements.
- Value of using property consultants (recommended).
Austrade offices overseas can assist companies wanting to set up representative offices by:
- Providing advice based on their previous experience in helping Australian companies.
- Recommending experienced legal and taxation experts.
- Finding suitable property consultants.
- Connecting you to other companies who have already gone down this path and who will know of pitfalls and short-cuts.
- Introducing you to major accounting firms which will know the practical steps in setting up offices.
The Singapore Economic Development Board provides more detailed information about setting up an office in Singapore.
Banking and finance
Singapore is a well established and diversified financial sector. In just over four decades, Singapore has established a thriving financial centre of international repute, serving not only its domestic economy, but also the wider Asia-Pacific region and in some instances, the world.
Singapore's financial centre offers a broad range of financial services including banking, insurance, investment banking and treasury services.
A key aspect of Singapore’s financial centre is its deep and liquid capital markets. With one of the more well-established capital markets in Asia-Pacific, the Singapore Exchange (SGX) is the preferred listing location for more than 200 global companies. Today, Singapore has grown to be the largest real estate investment trust market in Asia (excluding Japan) and also provides an extensive offering of investments in business trusts of shipping, aviation and infrastructure assets.
Singapore’s bond market has also grown significantly. With an extensive range of both Singapore government securities and foreign corporate bonds available, Singapore offers fixed income investors a wide range of investment opportunities.
As one of the top five most active foreign exchange trading centres in the world, Singapore is also the second largest over-the-counter derivatives trading centre in Asia, and a leading commodities derivatives trading hub.
With total assets under management of around S$1 trillion, and which continues to see steady growth, Singapore is also recognised as one of the premier asset management location in Asia.
(Source: Monetary Authority of Singapore)
Links and resources
Government, business and trade
Accounting & Corporate Regulatory Authority – www.acra.gov.sg
Association of Banks of Singapore – www.abs.org.sg
Australian Chamber of Commerce, Singapore – www.austcham.org.sg
Australian and New Zealand Association – www.anza.org.sg
EnterpriseOne – www.business.gov.sg
Government E-Business System – www.gebiz.gov.sg
Health Sciences Authority – www.hsa.gov.sg
Immigrations and Checkpoints Authority – www.ica.gov.sg
Inland Revenue Authority of Singapore – www.iras.gov.sg
Intellectual Property Office of Singapore – www.ipos.gov.sg
International Enterprise Singapore – www.iesingapore.com
Land Transport Authority – www.lta.gov.sg
M1 – www.m1.com.sg
Ministry of Health – www.moh.gov.sg
Ministry of Information, Communications and the Arts – www.mica.gov.sg
Ministry of Manpower – www.mom.gov.sg
Ministry of Trade and Industry Singapore – www.mti.gov.sg
Monetary Authority of Singapore – www.mas.gov.sg
Singapore Agri-Food & Veterinary Authority – www.ava.gov.sg
Singapore Customs – www.customs.gov.sg
Singapore Economic Development Board – www.edb.gov.sg
Singapore Government Online – www.sgdi.gov.sg
Singapore Mint – www.singaporemint.com
SingTel – www.singtel.com.sg
SPRING Singapore – www.spring.gov.sg
StarHub – www.starhub.com.sg
News and media
Asiaone – www.asia1.com
Channel NewsAsia – www.channelnewsasia.com
Straits Times Interactive – http://straitstimes.asiaone.com
The Business Times – http://business-times.asiaone.com
Please note: this list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The information provided is a guide only.