Market profile
Singapore is dynamic and business oriented, has a strong and sophisticated
economy and is the major regional hub for multinational businesses
operating in Asia. Regarded as a rapidly growing “developed country”,
Singapore is a key cornerstone to regional development and has a key role
to play in driving the ASEAN growth.
More information on doing business in Singapore
Bilateral relations
On 29 June 2015, Australia and Singapore signed a Joint Declaration on
the Comprehensive Strategic Partnership (CSP), on the occasion of the
fiftieth anniversary of diplomatic relations. The CSP opens a new, dynamic
chapter in the two countries' partnership by deepening existing areas of
cooperation and catalysing new ones.
The two governments have embarked on a ten year economic plan, in
particular, enhance collaboration in innovation, science, research and
technology, capitalising on the two countries' respective and complementary
strengths.
Economic climate
Singapore's GDP growth for 2016 was 2.0 per cent ($S410 billion). Unemployment in Singapore remains low at 2.1 per cent. Singapore’s goods
trade surplus dropped slightly from $US49.9 billion from $US46.9 billion in
2016.
Trade relations
- Singapore is Australia's largest trade and investment partner in ASEAN
and our seventh largest 2-way trading partner overall. In 2016-17, Australian
merchandise exports to Singapore were $A5.8 billion and our imports from
Singapore were $A8.2 billion. Services are a key part of our bilateral
trade, with exports to Singapore valued at $A5.36 billion and imports at $A5.17 billion in 2016-17.
- Singapore's investment in Australia is substantial. At A$98.9 billion in
2016, up from A$98.8 in 2015, Singapore was ranked sixth overall as a
source of foreign investment in Australia. Singaporean investment has
traditionally been concentrated in real estate, but has become more
diversified in recent years.
- Australia has a strong education and training relationship with Singapore
and is a popular destination for Singaporean students studying overseas.
There are more than 130,000 Singaporean alumni of Australian institutions.
Australian universities also have a strong presence in Singapore, with more
than 20 offering degrees either at their own campus or through a Singapore
partner.
Free Trade Agreements
- On 29 June 2015, Prime Ministers of Australia and Singapore agreed to the
Third Review of SAFTA as part of a new package of initiatives to advance
the Comprehensive Strategic Partnership (CSP). Under this review, SAFTA
will be upgraded to reflect the increasingly global, competitive and
connected business environment, and will build upon the outcomes of the
Trans-Pacific Partnership (TPP) Agreement, which Singapore and Australia
have also signed.
- On 6 May 2016, Australia and Singapore announced that the Third SAFTA
Review was substantially concluded. The Third SAFTA Review will further
integrate our two economies by locking in access and providing business
certainty in trade and investment into the future.
ASEAN NOW – Insights for Australian Business
A digital report on Australia’s trade and investment relationship with ASEAN.
Key sections:
- Why ASEAN matters to Australia
- What’s driving growth
- Opportunities by ASEAN market
- Practical tips and assistance
- Case studies.