Singapore is one of the most developed economies in the world. At the base of this economy are the trading activities Singapore has with numerous countries. Singapore is considered to have the most open and pro-business economy in the world. Singapore is also known as a territory with very low tax rates. Singapore is a very attractive destination for foreign businessmen due to its investment climate and political stability, but it also represents an important foreign direct investment source for other countries.
Singapore is the 14th biggest exporter worldwide, but also the 15th biggest importer in the world. According to the World Trade Organization, Singapore has the highest trade to GDP (Gross Domestic Product) ratio of 407.9% among all countries in the world.
As mentioned above, Singapore is one of the largest exporters in the world and its main trading partners are China, Malaysia, Indonesia, Hong Kong and Australia. As percentage, 14% of Singapore’s exports go to China, Malaysia and Indonesia import 12% each from companies in Singapore, as for Hong Kong and Australia, represent 7,5%, respectively 6% of the territory’s total exports. Other countries Singapore exports to are the United States, India, Japan and in Europe Singapore exports its products mostly in Germany, Belgium, the United Kingdom and the Netherlands. When it comes to exported goods, on the top of Singapore’s list is refined petroleum that represents approximately 30% of all exported goods. Singapore also exports computers and computer spare parts, packaged medicines and gold.
It is a well-known fact that most Singapore imports are destined for re-export. On top of Singapore’s import list is petroleum that represents 35% of its total imports, followed by computer and computer spare parts that represent 10%. Singapore imports petroleum gas in smaller amounts. Singapore companies also import broadcasting equipment and office machinery. Most part of imported products by Singapore come from China and Malaysia and represent about 20% of the city’s total imports. Other trade partners are South Korea, Japan and India in the Middle-East, but Singapore also imports from the United States, the UAE and Germany. In smaller percentages Singapore imports from other European countries such as Switzerland, France and the United Kingdom.