Singapore's Economy Most Open to Trade

The Global Enabling Trade Report 2010, released byflows worth close to a trillion dollars. With
the World Economic Forum on May 19, 2010 rankstremendous growth in trade volumes Singapore has
Singapore as #1 in its Global Enabling Trade Index,upgraded its trading systems and processes to
signifying Singapore's openness to trade.facilitate trade flows in and out of the country. For
Singapore retained its #1 position as the economyinstance, traders need to apply for special import
that is most open to trade in the world, followed byexport permits and authorizations only for certain
Hong Kong, Denmark, Sweden and Switzerland. Thecontrolled goods. Most permits can be applied for
Global Enabling Trade Index covers 125 economiesonline using a single application via a a computerized
worldwide and measures their institutions, policies andpermit processing system. Moreover, Singapore's
services that facilitate the free flow of goods overCustoms is known for its efficiency and non-corrupt
borders. It breaks the enablers into four issue areas:practices unlike many other developing countries
market access, border administration, transport andwhere traders have to pay what is known as
communications infrastructure, and business"informal facilitation" to clear their consignments.
environment.Singapore has also introduced certain trade financing
Singapore aced the parameters on foreign marketand insurance schemes to help traders cover their
and domestic access; efficiency of import/exportfinancial risks. Traders can also benefit from
procedures; availability and quality of transportSingapore's 18 Free Trade Agreements with 24
services; efficiency of customs administration; andtrading partners. Certain global trading companies can
regulatory environment.avail of concessionary rates of tax under the
As the world emerges from the economic crisis, theSingapore's Global Trader Program.
need to open up trade and break away tradeAccording to Robert Lawrence, co-editor of the
barriers has gained importance in order to fosterGlobal Enabling Trade Report,
economic growth. Singapore is at the forefront of"When individual countries enable trade, they provide
enabling cross border trade flows. By incorporating abenefits not only to themselves but also to other
trading company in Singapore, traders can leveragenations with which they trade. Improved market
upon Singapore's strengths such as minimal importaccess, more efficient customs, and better
export procedures, excellent infrastructure, taxinfrastructure and business environments offer
incentives, an extensive free trade agreementenhanced opportunities for both importers and
network, and sophisticated logistics.exporters.
Each year the Singapore Customs processes trade