A

COUNTRY STUDY AND REPORT AND COMBINED SUMMARY OF

SEMESTER IV WORK

ON

Different Industries and Sectors of

Submitted to

Gujarat Technological University

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ASMINISTRATION

Submitted by

______

Marwadi Education Foundation’s Group of Institutions

MBA PROGRAMME

Affiliated to Gujarat Technological University

May, 2012

SUMMARY OF WORK DONE IN SEM-4 IN SINGAPORE

MEANING

Aviation is the design, development, production, operation, and use of aircraft, especially heavier-than-air aircraft. Aviation is derived from avis, the Latin word for bird.

HISTORY

There are early legends of human flight such as the story of Icarus, and Jamshid in Persian myth, and later, somewhat more credible claims of short-distance human flights appear, such as the flying automaton of Archytas of Tarentum (428–347 BC), the winged flights of Abbas IbnFirnas (810–887), Eilmer of Malmesbury (11th century), and the -air Passarola of BartolomeuLourenço de Gusmão (1685– 1724).

The modern age of aviation began with the first untethered human lighter-than-air flight on November 21, 1783, in a hot air balloon designed by the Montgolfier brothers.

In 1799 Sir George Cayley set forth the concept of the modern airplane as a fixed- wing flying with separate systems for lift, propulsion, and control. Early dirigible developments included machine-powered propulsion (Henri Giffard, 1852), rigid frames (David Schwarz, 1896), and improved speed and maneuverability (Alberto Santos-Dumont, 1901).

Great progress was made in the field of aviation during the 1920s and 1930s, such as Charles Lindbergh's solo transatlantic flight in 1927, and Charles Kingsford Smith's transpacific flight the following year. One of the most successful designs of this period was the Douglas DC-3, which became the first airliner that was profitable carrying passengers exclusively, starting the modern era of passenger airline . By the 1950s, the development of civil jets grew, beginning with the , though the first widely-used passenger jet was the , because it was much more economical than other planes at the time.

Since the 1960s, composite airframes and quieter, more efficient engines have become available, and Concorde provided supersonic passenger service for more than two decades, but the most important lasting innovations have taken place in instrumentation and control. The arrival of solid-state electronics, the Global Positioning System, satellite communications, and increasingly small and powerful computers and LED displays, have dramatically changed the cockpits of airliners and, increasingly, of smaller aircraft as well.

On June 21, 2004, SpaceShipOne became the first privately funded aircraft to make a spaceflight, opening the possibility of an aviation market capable of leaving the Earth's atmosphere.

BRANCHES OF AVIATION

Aviation

Civil Military Aviation Aviation

General Aviation

Civil

Transport

Civil Aviation is one of two major categories of flying, representing all non-military aviation, both private and commercial. Most of the countries in the world are members of the International Civil Aviation Organization (ICAO) and work together to establish common standards and recommended practices for civil aviation through that agency.

Civil aviation includes two major categories:

 Scheduled Air Transport, including all passenger and cargo flights operating on regularly scheduled routes; and  General Aviation (GA), including all other civil flights, private or commercial

General Aviation includes all non-scheduled civil flying, both private and commercial. General aviation may include business flights, air charter, private aviation, flight training, ballooning, parachuting, gliding, hang gliding, aerial photography, foot-launched powered hang gliders, air ambulance, crop dusting, charter flights, traffic reporting, police air patrols and forest fire fighting.

Each country regulates aviation differently, but general aviation usually falls under different regulations depending on whether it is private or commercial and on the type of equipment involved.

Many small aircraft manufacturers serve the general aviation market, with a focus on private aviation and flight training.

Military Aviation is the use of aircraft and other flying for the purposes of conducting or enabling warfare, including national airlift (cargo) capacity to provide logistical supply to forces stationed in a theater or along a front.

Air power includes the national means of conducting such warfare including the intersection of transport and war craft. The wide variety of military aircraft includes bombers, fighters, fighter bombers, transports, trainers, and reconnaissance aircraft. These varied types of aircraft allow for the completion of a wide variety of objectives.

Types of military aviation

 Fighter aircraft's primary function is to destroy other aircraft. (e.g. Sopwith Camel, A6M Zero, F-15, MiG-29, Su-27, and F-22).  Ground attack aircraft are used against tactical earth-bound targets. (e.g. Junkers Stuka, A-10, Il-2, J-22 Orao, AH-64 and Su-25).  Bombers are generally used against more strategic targets, such as factories and oil fields. (e.g. Zeppelin, Tu-95, Mirage IV, and B-52).  Transport aircraft are used to transport hardware and personnel. (e.g. C-17 Globemaster III, C-130 Hercules and Mil Mi-26).  Surveillance and reconnaissance aircraft obtain information about enemy forces. (e.g. Rumpler Taube, Mosquito, U-2, OH-58 and MiG-25R).  Unmanned aerial vehicles (UAVs) are used primarily as reconnaissance fixed- wing aircraft, though many also carry payloads. Cargo aircraft are in development. (e.g. RQ-7B Shadow, MQ-8 Fire Scout, and MQ-1C Gray Eagle).  Missiles deliver warheads, normally explosives, but also things like leaflets.

AVIATION IN SINGAPORE

Aviation in Singapore is a key component of the Singaporean economy in its quest to be a transport hub of the Asian region. Besides currently the sixth busiest airport and the fourth busiest air cargo hub in Asia, the Singaporean aviation industry is also a significant aerospace maintenance, repair and overhaul centre.

Pre War

In 1937, the Wearne Brothers launched the first commercial air service between Singapore and Malaya. It was called Wearne Air Services. On 28 June 1937, a de Havilland Dragon Rapide aircraft, the Governor Raffles, took off from Singapore to and .

Post War

Malayan Airways Limited (MAL)was established on 1 May 1947, by the Ocean Steamship Company of , the Straits Steamship Company of Singapore and Imperial Airways. The airline's first flight was a chartered flight from the British Straits Settlement of Singapore to Kuala Lumpur on 2 April 1947 using an twin-engined airplane. Federation (1963)

When Malaya, Singapore, Sabah and Sarawak formed the Federation of in 1963, the airline's name was changed, from "Malayan Airways" to "Malaysian Airways". MAL also took over Borneo Airways. In 1966, following Singapore's separation from the federation, the airline's name was changed again, to Malaysia- (MSA).

Split (1972)

MSA ceased operations in 1972, when political disagreements between Singapore and Malaysia resulted in the formation of two entities: Singapore Airlines and Malaysian Airlines System.

A study conducted in 2001 showed the aviation industry contributing about 5.5%, or S$7.9 billion, to Singapore’s . It provided one in 20 jobs in the country, or one in 17 jobs if the indirect impact of the sector on the rest of the economy is taken into account. A different set of measures by the Economic Development Board showed the industry having an output of S$3.8 billion in 2003, contributing 1.2% to the GDP and employing over 11,000 people. In 2004, the industry grew 16% to hit a record high of S$4.5 billion.

AVIATION IN

The Indian Aviation Industry is among the world’s fastest growing industries. It has undergone huge transformation following the liberalization of the aviation industry in India. Once owned by the Government, the aviation sector of India is now privately owned with full service airways and affordable carriers. Almost 75% of the domestic aviation sector consists of the private airlines.

Indian aviation industry ranks 4th in the world after USA, , and in terms of domestic passenger volume, as per statistics released by Ministry of Civil Aviation.

Industry experts have predicted that not less than 50 million passengers will be served by the India aviation industry by 2015. Widening opportunities in India will create room for over 69 foreign airlines entering the Indian aviation sector from about 49 countries.

History/Evolution

The Aviation industry in India began with the birth of Tata Airlines, through the business relationship between Mr. NevillVintcent, a Royal Air Force pilot and Mr. JRD Tata, the first Indian to get an A-license. Tata Airlines became in August 1946. In 1953, the Air Corporation Act nationalized all existing airline assets and established the Indian Airline Corporation and Air India International for domestic and international air services respectively.

 <1953 Nine Airlines existed including Indian Airlines & Air India  1953 of all private airlines through Air Corporations Act;  1986 Private players permitted to operate as air taxi operators  1994 Air Corporation act repealed; Private players can operate schedule services  1995 Jet, Sahara, , Damania, East West granted scheduled carrier status  1997 4 out of 6 operators shut down; Jet & Sahara continue  2001 Aviation Turbine Fuel (ATF) prices decontrolled  2003 starts operations as India’s first LCC  2005 Kingfisher, SpiceJet, Indigo, Go Air, Paramount start operations  2007 Industry consolidates; Jet acquired Sahara; Kingfisher acquired Air Deccan  2010 SpiceJet starts international operations 2011 Indigo starts international operations, Kingfisher exits LCC segment  2012 Government allows direct ATF imports, FDI proposal for allowing foreign carriers to pick up to 49% stake under consideration

GLOBAL AVIATION CHALLENGES 21ST CENTURY

Employee shortage There is clearly a shortage of trained and skilled manpower in the aviation sector as a consequence of which there is cut-throat competition for employees which, in turn, is driving wages to unsustainable levels. Moreover, the industry is unable to retain talented employees.

Rising fuel prices

As fuel prices have climbed, the inverse relationship between fuel prices and airline stock prices has been demonstrated. Moreover, the rising fuel prices have led to increase in the air fares.

Poor infrastructure

Infrastructure remains a major obstacle for the Indian airline industry today, which was aggravated further due to the excess capacity created in good times. Maintenance and traffic control (ATC) infrastructure is completely inadequate, if the industry is expected to grow further. While steps are taken on this front in order to upgrade the major airports of , and remain security concerns. Attract private sector investment will go a long way in the development and maintenance of the infrastructure is crumbling because of the built up excess capacity.

Regional connectivity

Although the industry is burdened with excess capacity, regional connectivity continues to be poor, mainly because of lack of infrastructure. Industry experts speculate that the increase in regional networking, concentrating instead in the subways and the reallocation of the current fleet of routes where the demand to help airlines manage their excess capacity.

High input costs

Apart from the above-mentioned factors, the input costs are also high. Some of the reasons for high input costs are:- Withholding on interest repayments on foreign currency loans for aircraft acquisition. Increasing manpower costs due to shortage of technical personnel.

GLOBAL AVIATION STRATEGIES 21ST CENTURY

 Understand reality of change and become “flexible”  Revitalize strategy  LCC, LC/HV, “Virtual” carriers  Customer focus (ask what they want)  Eliminate duplication  Organizational accountability  Staff relations into strength  Updating of airline systems  Build partnerships (alliances, interactive marketing)  Act decisively  Diversify the business (core and non-core)  Airlines “inventing” new ways to reduce future  costs and spending of capital  Increased efficiency  Dependent upon aviation (links local, national  and international economies)  Airlines must take control of business issues and  work in partnership (first time in history)

COST / EXPENSES FOR AIRLINES

The main 3 cost for the airlines are:

 Fuel  Labor  Maintenance

EMPLOYMENT OPPORTUNTIES

 The boom in the aviation sector is likely to generate nearly 2.5 lakh jobs by the year 2014.  The study says that the civil aviation sector is also set to become a Rs 55,000-crore industry by the same time.  The industry is expected to add 130 airliners to its current fleet of 270 airliners, which would, in turn, increase manpower demand

The aviation industry employs about 3000 pilots and there is an immediate shortage of 450 planes that will be added to the activity expanding Indian fleet in the next five years and a shortage of additional 4,500 pilots stares us in the face (Total requirement: 7500 pilots by2010)

Training to be a pilot can be a pretty expensive affair that can push you into a financial air pocket! From April 2001 all DGCA-subsidized rates have been discontinued. However, various states offer separate subsidies of varying amounts up to the PPL stage. Considering the high cost of aviation fuel, you have to pay the steep commercial rate, which is in the region of Rs.2750-3500 per hour. 40 flying scholarships are awarded to SC/ST trainee pilots every year. Under this scheme, apart from free flying training, student pilots receive financialaid.

While a private school may charge as much as Rs.15-20 lakh, the cost of obtaining a CPL in a government-sponsored school works out to Rs.10 lakh plus boarding and lodging, which add up to another Rs.1,500/-p.m.

Salaries for commercial pilots are very attractive, ranging anywhere from Rs.40, 000/- to whopping Rs.4 lakh p.m., depending on the airline. Besides the obvious thrill of going places and seeing the world in five-star comfort, there are several attractive perks that go with the job.

QUALIFICATION NEEDED

Helicopter Pilots

Aptitude There are certain attributes to be a Pilot. First of all, one should not be afraid of heights and should have a passion to fly those machines.

A Pilot has to be quick thinker as he is the one who is responsible for the lives of many. One should have patience, commitment, responsibility and self-confidence. A lot of hard work, stamina, adaptability to follow difficult time schedules, good team spirit etc., are also required in an aspirant. Most importantly, one must have emotional stability in crisis situations.

Eligibility To get a CPL, one should have passed 10+2 examination with Physics and Mathematics and must be between the age of 18-30 years. The minimum height should be 5 feet and eyesight 6/6.

Air Hostess / Flight Steward The trouble free, comfortable and safe journey of a passenger is of prime importance to the aviation sector. In this regard, it is an Air Hostess / Flight Steward whose role becomes really crucial as they are the first one to welcome passengers aboard an aircraft.

By the count, the various airlines in the country have almost 10,207 Cabin Crew members in 2007-08 and the number is expected to grow to almost 20,284 by 2011- 12.

Aptitude: To be an Air Hostess or a Flight Steward, one should have common sense, sense of responsibility, initiative quality, friendly outgoing personality, politeness, physical stamina and the capacity to work for long hours on the feet.

Eligibility The educational qualification for an Air Hostess / Flight Steward training programme is 10+2 or a graduate degree with a diploma / degree in Hotel Management or Tourism Management.

Flight Purser After three to five years, depending upon your performance, Flight Steward/Air Hostess is eligible to become a Flight Purser. Your responsibilities increase as you take over the charge of the Cabin Crew on board. Salaries generally get double up.

Ground Job: You can join here directly or after having served on the flight for long, you can opt for ground jobs in sections like staff-training and human resource management in the corporate office. Remuneration The Cabin Crew can get up to Rs.40, 000 per month for domestic flights whereas upto Rs.1, 50,000 for international flights on wide-bodied aircrafts. The ground staff can also earn Rs.20, 000 - Rs.30, 000 per month.

TRENDS IN AVIATION

Trend 1 – GREEN FLIGHT

A Swiss pilot completed the longest manned solar-powered flight ever. André Borschberg flew the aircraft, called the Solar Impulse HB-SIA, for 26 hours—an entire day and night. The flight was an important milestone for green aviation, since it demonstrated that a lithium battery can hold enough charge for the plane to remain in-air at night, when no solar energy is available.

The HB-SIA is able to store solar energy for nighttime flight (source: Solar Impulse).

Trend 2 – DRONE FLIGHT

Watch out—that plane flying overhead soon might have no one in its cockpit. Unmanned aircraft aren't a particularly new idea. The first was built in 1916, and remote-controlled planes were becoming widely used by World War I. Today, unmanned aircrafts are commonly used for war operations in many countries. But as drone planes grow more capable of performing complex tasks and carrying passengers, unmanned commercial flight seems to be on the horizon. In June, the Federal Aviation Administration announced its two- year plan to bring unmanned flight to the American skies, possibly in a commercial form. Commercial drone crafts could mean cheaper—and possibly safer—flights.

The search-and-rescue drone plane can find lost hikers more accurately than human- controlled helicopters (source: Brigham Young University)

Trend 3 – FUTURISTIC FLIGHT One of the trendiest topics in aviation is futuristic design and innovation. While green energy and drone technology are often incorporated into futuristic plans, more outlandish design quirks are also exciting engineers. A prime example is Airbus' 2030 Concept Plane, which features elements that airplanes might have 20 to 40 years from now. Conceptual components include self-cleaning cabins, smart seats that form to passengers' bodies, and see-through walls, floors and ceilings. Engineers even imagine holographic projections that could turn the cabin into a home office or Zen garden.

Airbus conceptual plane features extra-long wings, a U-shaped tail and a highly efficient fuselage.

REGULATORY AGENCIES& AUTHORITIES, Singapore

Singapore has mainly two regulatory i.e.:

 CAAS – Civil Aviation Authority of Singapore  ICAO – International Civil Aviation Organization

Civil Aviation Authority of Singapore

The Civil Aviation Authority of Singapore is Singapore's Civil Aviation Authority and a statutory board under the Ministry of Transport of the Singapore Government. Its head office is located on the fourth storey of Terminal 2 of inChangi.

The CAAS regulates civilian air traffic within the airspace jurisdiction of the Republic; it is also the sole government agency to maintain the operational efficiency of the airports in Singapore and to engage civilian air-service agreements with air-service operators.

CAAS also operates the CAAS Air Traffic Control Service, which serves to ensure faultless movements of civilian aircraft at Singapore’s airports and in the Singapore Flight Information Region (FIR).

International Civil Aviation Organization

The International Civil Aviation Organization (ICAO) is a specialized agency of the United Nations. It codifies the principles and techniques of international air navigation and fosters the planning and development of international air transport to ensure safe and orderly growth. Its headquarters are located in the Quartier International of Montreal, Quebec, .

Aviation LegislationIn Singapore

List of Legislation for the are described below:  Civil Aviation Authority of Singapore Act  Air Navigation Act  Carriage by Air Act  Carriage by Air (Montreal Convention, 1999) Act  Tokyo Convention Act  Hijacking of Aircraft and Protection of Aircraft and International Airports Act  International Interests in Aircraft Equipment Act 2009

The SINCAIR Programme

Ministry of Singapore has developed a program for aviation safety according to international standards named, SINCAIR

The key objective of SINCAIR is to enhance aviation safety through the collection of feedback on incidents that would otherwise not be reported through other channels, or that may appear minor but may be useful for others to learn from the reporter's experience and may even lead to changes in procedures or design. But it does not eliminate the need for mandatory reporting of aircraft accidents and incidents to the relevant authorities under the existing law.

The Singapore Confidential Aviation Incident Reporting (SINCAIR) programme is a voluntary, non-punitive confidential incident reporting system established by the AAIB. It provides a channel for the reporting of aviation incidents and safety deficiencies while protecting the reporter's identity.

What does the SINCAIR Programme cover?

The SINCAIR Programme covers the following areas:

a. Flight Operations: i. Departure/en route/approach landing ii. Aircraft cabin operations iii. Air proximity events iv. Weight and balance and Performance b. Ground Operations: i. Aircraft ground operations ii. Movement on the airport iii. Fuelling operations iv. Airport conditions or services v. Cargo Loading c. Air Traffic Management:

i. ATC operations ii. ATC equipment and navigation aids iii. Crew and ATC communications d. Maintenance:

i. Aircraft maintenance ii. Record keeping e. Miscellaneous:

i. Passenger handling operations related to safety

REGULATORY AGENCIES & AUTHORITIES, India

Indian Regulatory agencies for the aviation are described below:  Director General of Civil Aviation  Bureau of Civil Aviation Security  Airports Authority of India  International Air Transport Association (IATA)  International Civil Aviation Organization

Directorate General of Civil Aviation (India) The Directorate General of Civil Aviation is the Indian governmental regulatory body for civil aviation under the Ministry of Civil Aviation. This directorate investigates aviation accidents and incidents. It is headquartered along Sri Aurobindo Marg, opposite Safdarjung Airport, in .

Bureau of Civil Aviation Security The Bureau of Civil Aviation Security was initially set up as a Cell in the Directorate General of Civil Aviation (DGCA) in January 1978 on the recommendation of the Pande Committee constituted in the wake of the hijacking of the flight on 10th September , 1976. The role of the Cell was to coordinate, monitor, inspect and train personnel in Civil Aviation Security matters.

The BCAS was reorganized into an independent department on 1st April , 1987 under the Ministry of Civil Aviation as a sequel to the Kanishka Tragedy in June 1985. The main responsibility of BCAS are lay down standards and measures in respect of security of civil flights at International and domestic airports in India.

Airports Authority of India The Airports Authority of India (AAI) is an organization working under the Ministry of Civil Aviation that manages most of the airports in India. The AAI manages and operates 126 airports and 329 airstrips including 16 international airports, 89 domestic airports and 26 civil enclaves. The corporate headquarters(CHQ) are at Bhawan, Safdarjung Airport, New Delhi. A V.P Agrawal is the current chairman of the AAI.

International Air Transport Association The International Air Transport Association (IATA) is an international industry trade group of airlines headquartered in Montreal, Quebec, Canada, where the International Civil Aviation Organization is also headquartered. The executive offices are at the Geneva Airport in . IATA's mission is to represent, lead, and serve the airline industry. IATA represents some 240 airlines comprising 84% of scheduled international air traffic. The Director General and Chief Executive Officer is Tony Tyler. Currently, IATA is present in over 150 countries covered through 101 offices around the globe.

Legislations Aviation Security (AVSEC) Law & Policy of India are as below:  The Aircraft Act, 1934  The Aircraft Rules, 1937  The Air Corporation Act, 1953  The Air Corporation Act, 1953,  The International Airports Authority Act, 1971,  The Carriage by Air Act, 1972,  The Tokyo Convention Act, 1975,  The Anti-Hijacking Act, 1982,  The National Airports Authority Act, 1985,  The Airports Authority of India Act,1994

Major Player of Singapore Aviation

 Jett8 Airlines  Scoot  SilkAir  Singapore Airlines  Singapore Airlines Cargo  Tiger Airways 

Major Player of India Aviation

 Air India  Blue Dart Aviation  Deccan Aviation  GoAir  IndiGo   SpiceJet

Marketing Strategies of Singapore Airlines

Singapore Airline

 Cutting-edge quality Service strategy o More cabin staff per seat than other airlines o Free of charge amenities to Economy class passengers o Singapore girl promotion – a sense of style and sophistication, romance of travel  Aircraft Replacement Strategy o Replacing new aircraft by every six year o The youngest and modernist fleet in the industry o Advanced, fuel-efficient version aircraft  Demographics strategy: Singapore Airlines offers premium flight fares targeted to businessmen and the wealthy folks., who are willing to fork out tens of thousands of dollars for a one-way First Class trip from Singapore to Los Angeles

Air Asia

 Social Media:AirAsia has taken giant and successful leaps on the social media sphere, especially on Facebook and Twitter. The Malaysia-based low-cost airline has a whopping 835,00 fans on their Facebook page and 100,000 followers on Twitter.  Demographics strategy: Air Asia’ key customer group are those who are looking for cheap flights to countries located in Southeast Asia, and young adults looking for a short weekend getaway trip to will most likely choose budget airlines such as Air Asia due to their limited budget and choice of destination.

ISSUES AND CHALLENGES IN SINGAPORE AVIATION:

Growth

We used to grow about 20% a year 20 years ago, and about 15 years ago in themid teens. And as we mature, we grow at 6 to 8%. So, how do we continue toget high growth? Acquisition is one of the strategies. But, we can’t expect to getthat kind of high rate of growth by simply acquiring any airline. We must belooking for airlines that are firstly in the growth stage, as we were, say 20 yearsago. That kind of airline must have a very good product, in terms ofsustainability, and good management. So in a sense we are trying to look forwhat we were like 20 years ago, and to invest in that airline so that, with a strongmanagement, we don’t have to be distracted or divert a lot of our managerialfocus and attention on the acquired airline. Then we can focus on our ownorganic growth. So in that way we are not compromising or taking awayanything from ourselves.

Managing Alliances

When you get into investment situations with your alliance or equity partners,how do you deal with partners that are so different from your own company? Forexample, Virgin,5 it’s a totally different relationship that you have to manage.It’s very new. How do you get more people to be familiar with dealing withalliance and equity partners? Because of growing numbers and working withpeople coming from different cultures and backgrounds, we have to find betterways to manage these relationships. So we have a new division, Alliance andPartnerships, just to cater to those relationship issues that we want to get involvedwith.

Product Decisions

[The terrorist attacks of] 9/11 require us to think about our service classes: firstclass, business class, two classes, three classes, two-and-one-half classes! What5 Virgin Atlantic, in which SIA had acquired a 49% stake for S$1.6 billion in December, 1999.is it going to be? We still have to think about it. It may not stay three classesforever. Globalization

The nature of flying is different now. In some instances, we haven’t realized thatwe are a global airline and we operated as though we were still a .Our systems were arranged to support regional operations rather than global ones,for example. We now realize the need for the company to review all aspects ofoperations and for the organizational structure to support a global airline.

Managing Discontinuous Change

The need for us to respond quickly is greater now. It’s not what is happening, it’show you respond to what is happening 90% of the time. Your response to it isgoing to make the material difference. So we need more agility, greaterflexibility, and yet how do we communicate within the more complexorganization? In the past, we could all go into a room and discuss it and that wasit. So all this has changed and we have to respond to it, because we are aninternational company.

EXTERNAL ENVIRONMENT OF AIRLINE INDUSTRY

We have analyzed the external factors for Singapore airlines using PESTEL Framework and to identify strategic challenge of external environment and have been using Five Forces of Framework and SWOT for Singapore airlines.

PESTEL FRAMEWORK

The PEST analysis is one of them that are merely a framework that categorizes environmental influences as political, economical, social and technological forces. Sometimes two additional factors environmental and legal, will be added to make a PESTEL analysis, but these themes can be easily subsumed in the others. This classification distinguished between:

Political

This refers to government policy as such degree of intervention in the economy. To what extent does it believe in firms such as Singapore Airlines has withdrawn its bid for a stake in Air India, dealing a heavy blow to the Indian government’s privatization programmed. This is political barrier for Singapore Airlines.

Economical

These include interest rates, taxation charges, economic growth, and exchange rates. The SA offer to buy 24% stake in China Eastern Airlines for 7.2 billion dollars appeared in trouble Wednesday after a major shareholder criticized the deal as unfair.

Social

Changes in social trends can impact on a demand for a firm’s product and availability and willingness of individuals to work. In the year 2002, there was a fatal crash of Singapore Airline flight SQ006 at Taipei’s Chiang Kai-Shek International Airport. Authorities blamed “pilot error” for the accident.

Technological

New technologies create new products and new processes. SA is the first airline to install a productivity suite for the benefit of its passengers who can now continue to work after boarding the plane without having to power up their laptops.

INTERNAL ANALYSIS

Strategic Capability of SA

Strategic capability identifies the capacity of a business to deliver future value to his end user i.e. competitive advantage. It includes the following

 Resources & Competence Of SA:

SA is the strongest brand from Asia and its long serving is almost iconic. SA has consistently been one of the most profitable airlines globally. One of the factor is strong brand management and healthy brand equity. As a result of a dedicated professional brand strategy throughout diversified global organization.  Unique & Core Competence Of SA:

SA is first to introduce hot meals, free alcoholic and non-alcoholic beverages and hot towels with a unique and patented scent, personal entertainment systems and video- on-demand in all cabins.

Competitive Advantage of SA

One key element of SIA’s competitive success is that it manages to navigate skillfully between poles that most companies think as distinct.

STRATEGIC CHOICES OF SINGAPORE AIRLINES:

 Business Level Strategy o Strategy for competitive advantage o Meet economical expectations of shareholders o Strategy for Singapore government satisfaction

 Corporate Level Strategy o Market diversification o Value creation

SWOT ANALYIS

(1) STRENGHTS

 Brand name

 Cabin crews

 Cuisine

 Technology

 Innovation

 Timings (2) WEAKNESSES:

 Connected with few destinations.

 Pricing policy

(3) OPPORTUNITIES:

 Demand

 Growing Asia Pacific market

 Increase in trans-pacific cargo

 Global airline market

(4) THREATS:

 Competition increase in low cost airlines

 Terrorism

 Taxation

 Increase in prices

 Accidents

 Instability in the Middle-East

 Fuel prices

FIVE FORCES AFFECTING AIRLINE INDUSTRY PROFITABILITY

THREAT OF NEW ENTRANTS

 Deregulated  Freedom of entry/exit  Availability of aircraft etc.

BARGAINING RIVALRY AMONG BARGAINING POWER OF EXISTING AIRLINES POWER OF BUYERS SUPPLIERS  Competing for  Bargaining Leverage  Supply growth, market concentration share etc.  Buyer Information  Excess to Capital  Substitute Products etc. Etc.

THREAT OF SUBSTITUTES

 Telecommunications  Video Conferencing  High Speed Railroads etc.

 Availability of aircraft etc.

FUTURE TRENDS IN AVIATION:

The travel and hospitality industries are amongst the most vulnerable to global or local shocks. That means contingencies, cash reserves, hedging of major risks such as oil prices. But most of all it means agile and bold leadership who think ahead, with more than one strategy depending on how events unfold.

Airline manufacturers and airlines themselves will continue to exploit significant energy savings over the next 20 years from a wide range of new technologies, including better airline engine design, lighter composite fuselage, more direct aircraft routing. Efficiencies will also be gained from fuller planes, faster turnaround, economies of scale (consolidation of smaller airlines). For more on greener aviation, see below.

Passengers will segment further into budget (bus quality), premium budget (especially older travelers), traditional economy, right up to premier business class in the largest long haul routes.

Despite energy price rises, our world’s population will continue to want to fly, and will sacrifice other spending to do so, cushioning the adjustment for the airline industry.

Burning in plane engines will become very controversial – as it connects energy and food prices, with potentially disastrous consequences for the poorest citizens around the globe.

Most planes will continue to burn carbon-based fuel for decades to come – because the average life expectancy of a new plane today is at least 30 years.

FINDINGS AND SUGGESTIONS:

 Singapore airline is the national airline of Singapore and one of the leading aviation companies in the world.

 At present, they operate in South East Asia, East Asia, Europe and route.

 After analyzing external factors we find that SIA’s has some major barriers in international political and economical sector.

 As we are familiar that oil price is sensitive issue worldwide and day by day it’s in receipt of more unstable. For those reasons the supplier power is very high.

 In the internal capability shows high brand attributes and strong brand management as their core competence.

 To maintain the current positioning company should concern their internal and external surroundings.

SUMMARY OF BANKING SECTOR OF SINGAPORE AND INDIA

RESERVE OF INDIA

The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank Of India Act, 1934. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated. Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India.

 Main Functions of RBI:  It acts as the Monetary Authority.  It regulates and supervises the Financial System.  It acts as the Manager of Foreign Currency  It issues Currency  It has the developmental role to support the National Objectives  It is the banker to the Government  It’s the banker to the (Reserve Bank of India)

2.2: MONETARY AUTHORITY OF SINGAPORE

2.2.1: INTRODUCTION OF MONETARY AUTHORITY OF SINGAPORE

The of Singapore is the Monetary Authority of Singapore. It was established in 1971 in order to regulate Singapore’s financial industry to in its development as an international financial centre. Its primary function is to ensure that the financial markets operate in an efficient and smooth manner, in line with national economic goals. The MAS is responsible for the following:

 Main Functions of MAS:  It is concerned with implementing the Monetary Policy  It supervises the Banking Systems  It’s banker to the Government  It’s banker to the Banks  It controls the International Reserves  It issues currency  It issues licences to Banks Issuer of banking licences  It’s the lender of the last resort

(Monitory Autority of Sinapore)

2.2.2: TYPES OF BANKS IN SINGAPORE

Most Banks in Singapore cater to different types of clients – individuals, corporations or government agencies.

 Commercial Banking (catering to Businesses and Corporations),  Retail Banking (catering to individual members of the Public)  (catering to HNWIs) services. Banks can be classified into two categories:

1. Local Banks 1.7.1 Six local banks in Singapore 2. Foreign Banks 2.7.1 108 Foreign banks in Singapore

a. Full Banks a. 26 full license banks in Singapore. b. They provide whole range of banking business approved under the Banking Act. c. Six of the foreign banks operating in Singapore have been awarded Qualifying Full Bank (QFB) privileges. d. These Banks include: i. HSBC, Citibank, Standard Chartered, Maybank, ABN AMRO and BNP Paribas. b. Wholesale Banks a. 42 wholesale banks in Singapore b. They are engaged in the same range of banking activities as full banks, except retail banking activities. c. All wholesale banks in Singapore operate as branches of foreign banks. d. Examples: i. ING bank, National Australia Bank, Barclays Bank, Fortis Bank, Deutsche Bank etc. c. Offshore Banks a. 40 offshore banks in Singapore b. They are engaged in the same activities as full and wholesale Banks for businesses transacted through their Asian Currency Units (an accounting unit, which banks use to book all foreign currency transactions conducted in the Asian Dollar Market). c. The banks’ Singapore dollar transactions are separately booked in the Domestic Banking Unit (DBU). d. All these. e. Operate as branches of foreign banks. f. Examples: i. ICICI Bank Ltd, Korea Development Bank, Bank of , Bank of , Canadian Imperial Bank of Commerce etc. d. Merchant Banks a. 50 merchant banks in Singapore b. They provide: i. corporate finance, underwriting of share and bond issues, mergers and acquisitions, portfolio investment management, management consultancy and other fee-based activities. ii. Examples: 1. Singapore Ltd, Barclays Merchant Bank Singapore Ltd, ANZ Singapore Ltd, Axis Bank Ltd etc.

(GUIDE ME SINGAPORE)

2.2.3: MAJOR BANKS IN SINGAPORE

Major Local Banks

 DBS (Development ) o Established in 1968. o It is considered the largest bank in Singapore and Southeast Asia, as measured by assets. o It is a leading consumer bank in Singapore and Hong Kong, serving over 4 million and 1 million retail customers respectively. o It also has the largest retail network in Singapore, with 80 branches at present. o It ranked 14th in The Banker’s “Top 200 Asian Banks 2008″.

 OCBC (Overseas Chinese Banking Corporation) o Established in 1912 o It is one of the largest financial institutions in the Singapore-Malaysia market with total assets of S$184 billion. o It ranked 1st in “Top 5 Regional Banks”, Asia Risk End-User Survey 2008.

 UOB () o Established in 1935 o It is a leading bank in Singapore with a strong presence in the Asia-Pacific region. o As at 31 December 2007, the UOB Group had total assets of S$175.0 billion. o It was awarded the “Best Overall Fund Group in Singapore” during The Edge- Lipper Singapore Fund Awards 2008.

Major Foreign Banks

 HSBC o In Singapore, The Hong Kong and Shanghai Banking Corporation Limited first opened its doors in December 1877. o HSBC is an approved Primary Dealer in the Singapore Government Securities Market and an Approved Bond Intermediary (ABI). o It is a QFB honoured with 33 awards at Global Finance Awards 2006 by Global Finance. (Monetary Authority Of Singapore)

 Standard Chartered

o Standard Chartered’s Singapore operation began in 1859 and today boasts of a largest branch network (20) among international banks in the Republic. o It is the Group’s second largest consumer banking market and was awarded a Qualifying Full Bank (QFB) license in 1999. o It is the largest custodian bank in Singapore for foreign institutions, rated top for the past seven years in Global Custodian’s Agent Bank Survey.

 ABN-AMRO Singapore o ABN AMRO is now owned by RBS, Santander and the Dutch government. o Its various businesses around the globe are currently being separated from ABN AMRO and integrated in line with each owner’s plans.

 Maybank o Maybank’s presence in Singapore began in 1960 as a full-licensed commercial bank. o Maybank is currently among the top five banks in ASEAN and is a Qualifying Full Bank in Singapore. o As of June 2008, Maybank’s total assets amounted to S$22.7 billion in Singapore.

 BNP Paribas o BNP Paribas has been at the forefront of banking in Singapore since 1968 and was awarded a QFB status in 1999. o Today, BNP Paribas Singapore assumes a prominent presence in the region by acting as the Group’s regional hub for its business in Corporate and Investment Banking as well as Private Banking.

 Citibank o Citibank was the first American bank to set up a branch in Singapore in 1902. o Although a relative latecomer to the retail-banking sector. o The bank has grown into a formidable market player with major market share in key businesses including unsecured lending, deposits and investments and secured assets. o Citibank was among the first four foreign banks to be awarded the Qualifying Full Bank (QFB) license in 1999.

(GUIDE ME SINGAPORE)

2.3: BANK REGULATIONS AND LEGISLATION

In Singapore, the laws regulating Banking are found in the relevant Acts passed by Parliament (and other related subsidiary legislation), the common law and principles and rules of Equity which are derived from the case law. These legislations not only regulates the Banking Sector in Singapore, but also ensure that the legal framework for Banking in Singapore and keeps pace with the latest developments in the financial World. The relevant acts pertaining to the Banking Industry include:

1. Banking Act – The Banking Act is the legislation that governs commercial banks in Singapore. 2. Monetary Authority Of Singapore Act – It governs all matters related to MAS in it’s operations. 3. Anti Money Laundering Regulations 4. Payment and Settlement System Guidelines 5. Securities and Futures Act

2.4 ANALYSIS: INDIA V/S SINGAPORE

2.4.1: DOMESTIC CREDIT PROVIDED BY BANKING SECTOR (% OF GDP)

Singapore India 91 86 77 70 68 69 71 62 63 58 61 61

2005 2006 2007 2008 2009 2010 (WorldBank)

From the above chart, it can be analysed that India has been very competitive when compared to Singapore and the domestic credit provided by Banking Sector in both the countries is continuously rising, which is a good sign.

2.4.2: GDP (CURRENT US$)

2000000000000.00 1500000000000.00 1000000000000.00 Singapore 500000000000.00 India 0.00 2005 2006 2007 2008 2009 2010

(WorldBank) From the above chart, it can be analyzed that the GDP of both the countries are continuously rising, for India, the change is very nominal but it’s a pretty good rise for Singapore, except for the year 2008 where it was stable. The reason for this is recession in India during the year 2008 which affected both the countries, as far as their GDP is concerned.

2.4.3: GDP GROWTH (ANNUAL %)

Singapore India

14

9 9 910 9 9 7 5 1 -1 2005 2006 2007 2008 2009 2010

(WorldBank)

The above chart clearly defines that annual GDP growth of Singapore and India. When compared to India, the change in the GDP Growth Rate of Singapore is significant.

2.4.4: COMMERCIAL BANK BRANCHES (PER 100,000 ADULTS)

12.5

12

11.5

11 Singapore 10.5 India 10

9.5

9 2005 2006 2007 2008 2009 2010

(WorldBank)

From the above chart we can conclude the Singapore has more bank branches rather than India in the year 2005, 2006, and 2007 and at par in the year 2008 and 2009 but fortunately, in India, the number of Bank Branches has increased the banking sector growth because of formation of new banking policy in the year 2010. (Per 1,00,000 adults)

2.4.5: BANK CAPITAL TO ASSETS RATIO (%)

Singapore India

10 10 10 10 9 8 7 7 7 7 6 6

2005 2006 2007 2008 2009 2010 (WorldBank)

According to data, the overall bank capital to assets ratio of Singapore is higher than that of India year on year. Due, to Global Crisis, the ratio for both the countries is less for the year 2008.

2.4.6: BANK NONPERFORMING LOANS TO TOTAL GROSS LOANS (%)

Singapore India

5

4

3 3 3

2 2 2 2 2 2 2

2005 2006 2007 2008 2009 2010

(WorldBank) The above graph shows the relation between bank nonperforming loans to total gross loans ratio of last five year. In the year 2005 and 2007, the ratio is higher of India than that of Singapore and for the year 2006, 2008, 2009 and 2010, it is constant for both the countries.

2.4.7: BANK CAPITAL TO ASSETS RATIO (%)

Singapore India

10 10 10 10 9 8 7 7 7 7 6 6

2005 2006 2007 2008 2009 2010

(WorldBank)

The above graph represents Bank Capital to Asset Ratio in percentage. It can be analysed that it’s increasing for both the countries except in the year 2007 where it’s declining for both the countries by 1% and again decrease of 1% in the year 2008 for Singapore.

2.4.8: LENDING INTEREST RATE (%)

Singapore India

13 13 12 11 11 11

5 5 5 5 5 5

2005 2006 2007 2008 2009 2010 (WorldBank) The above graph represents the Lending Rates in percentage. The lending rates of India are significantly higher of India than that of Singapore. For, India the rates are fluctuating to regulate the money supply in the economy which was a major focus for India in recent years, whereas for Singapore it’s stable.

2.4.9: OFFICIAL EXCHANGE RATE (US$, PERIOD AVERAGE)

INDIA SINGAPORE

48 47 44 45 44 46 41

2 2 2 1 1 1 1 2005 2006 2007 2008 2009 2010 2011 (WorldBank)

The above graph represents the exchange rates between India and US and Singapore and US. The exchange rates between Singapore and US are stable over the time and changes are not major whereas, the exchange rate between India and US is fluctuating and the major change can be seen from the year 2006 to 2009. This is because of Global crisis and again the imports are more for India than exports. The fluctuating exchange rates for India results in huge loss for companies associated in Exports and Imports. 2.4.10: COMPARISON BETWEEN FINANCIAL SERVICE SECTORS WITH OTHER BUSINESS SECTORS.

MAS/Central Bank Balance Sheet S$ MILLION

(WorldBank)

The above chart shows the comparison between Financial Sectors with other Business Sectors. The Financial Service sector is quite stable when compared to other sectors. This is majorly because of the stability of exchange rate. The Business services are also rising.

2.5: MAS/CENTRAL BANK BALANCE SHEET

ASSETS LIABILITIES OTHER ITEMS TOTAL DOMESTIC CREDIT RESERV FOREIG GOVERNME END () E N NT OF MONEY LIABILI DEPOSITS PERIO FOREIG TOTA GOVERN PRIVATE TIES D N L MENT SECTOR ASSETS 1 2=3+ 3 4 5 6 7 8 9 4 235691.6 6501.9 6501.7 0.2 28061.0 1865.0 108948.1 103319.4 242193.5 2007 251318.2 6860.3 6860.1 0.2 34122.7 1732.3 132711.3 89,612.2 168566.3 2008 264533.2 7381.8 7381.6 0.2 36344.0 3238.6 117077.7 115254.7 271915.0 2009 289376.6 7480.8 7480.7 0.1 40529.7 2770.3 130490.2 123,067.2 173790.2 2010 308530.8 6813.8 6813.7 0.1 45431.8 3409.8 144112.9 122390.1 315344.6 2011

2.6: STRENGTHS OF BANKING IN SINGAPORE:

 Economic resilience is "very low risk", supported by the highly competitive, diverse, and resilient economy-factors which provide buffers against external shocks.  The institutional framework is "very low risk", benefiting from prudent banking regulations and supervision, a strong regulatory track record, and supportive governance framework which is benefiting at long term.  Competitive dynamics are "low risk", reflecting the banking industry's restrained risk appetite, stable competitive environment as well as a healthy market and absence of market distortions.  Liberalization in the domestic banking market.  Local banks are strengthened by their regional presence through mergers and acquisitions.  Increased competition spurred the development of innovative products and more competitive pricing models.  Provision of sophisticated banking services like corporate and investment banking activities, apart from traditional lending and deposit-taking functions.  Strict banking secrecy laws, tax friendly policies and a suite of services created a private banking boom.  Recognizing the needs of SME’s which comprise a sizable Banking Market in Singapore.

(Monetary Authority Of Singapore) (WorldBank) 2.7 GROWTH OF PRIVATE BANKING INDUSTRY

Singapore has capitalized on the growing no. of high net worth individuals in Asia and other regions like Europe and the Middle East, emerging as an attractive hub for global investors. Singapore has earned the title “Switzerland of Asia”, attributable to:

 Strict banking secrecy laws– Sec. (47) of the Banking Act states that consumer details shall not, in any way, be disclosed by an any bank or any of its officers, to any other person except as expressly provided in the Banking Act.  Non-recognition of the 2005 European Tax Directive– Singapore is one of the few remaining offshore centers that has not signed up to the EU;s saving tax Directive, whose country members can transit private details regarding to individuals who bank and invest in these countries.  Generous tax incentives– capital gains and interest income from outside Singapore are not taxed here

Private Banks such as Credit Suisse, UBS, standard chartered and Citigroup to name a few, provides the following facilities:

 Global wealth management services  Wealth and lifestyle consulting services  Investment strategies  Asset and tax planning  Asset security  Credit Services

2.8 KEY FINDINGS:

The key findings from this report are presented as under:

 Domestic credit provided by Banking in Singapore (% of GDP) is significantly rising for both the countries. Singapore saw a decline in the same in the year 2010 by 5% as compared to 2009, whereas, it has increased for India.

 The lending rates of in India are reducing where as for Singapore; it is stable and significantly lesser than that of India. From this, it can be analysed that there are Arbitrage opportunities possible from the same and Market for taking loan in Singapore would be quite high.

 The exchange rates of Singapore are quite stable than that of India.

 The Strengths of Banking in Singapore is in large quantum which shows that the feasibility of Banking in Singapore is high.

 The foreign assets of MAS are significantly rising over the period of years.

 The lending rates of India are significantly higher of India than that of Singapore. For, India the rates are fluctuating to regulate the money supply in the economy which was a major focus for India in recent years, whereas for Singapore it’s stable.

 The overall bank capital to assets ratio of Singapore is higher than that of India year on year. Due, to Global Crisis, the ratio for both the countries is less for the year 2008.

 The scope of is also high with special reference to Rural Area as there the large quantum of Market is untapped, especially in developing states.

 The employment opportunities in Singapore and India are high as the feasibility for Banking in both the countries is high.

 The norms of Banking in India are more complex than that of Singapore.

 The Banking System is much more protective in India as during crisis in 2008-09, the GDP of India didn’t let to breakdown much.  The overall bank capital to assets ratio is Singapore higher then India in every consecutive year in the same proportion. The year 2008 is lower in all year because of Global crisis.

SUMMARY OF ELECTRONICS SECTOR OF SINGAPORE

ECONOMIC AND INDUSTRIES OVERVIEWS:

The electronics industry today plays a vital role in the development of most nations as it has grown substantially and strongly over the past decades. This industry moves closer to the centre and drives rapid economic development of the world, taking its place in the heart of one country after another.

INDIAN ELECTRONIC INDUSTRY:

India is the fifth largest economy in the world and has the second largest GDP among emerging economies. Owing to its large population, the potential consumer demand is almost unlimited and consequently under appropriate conditions, strong growth performance can be expected. The electronics industry, in particular, is emerging as one of the most important industry in the Indian market.

The electronics industry in India dates back to the early 1960s. Electronics was initially restricted to the development and maintenance of fundamental communication systems including radio-broadcasting, telephonic and telegraphic communication, and augmentation of defence capabilities. Until 1984, the electronics sector was primarily government owned. The late 1980s witnessed a rapid growth of the electronics industry due to sweeping economic changes, resulting in the liberalization and globalization of the economy. The economic transformation was motivated by two compelling factors - the determination to boost economic growth, and to accelerate the development of export-oriented industries, like the electronics industry.

SINGAPORE ELECTRONIC INDUSTRY:

Electronics is the major industry underpinning Singapore’s economic growth. Singapore aims to be a world-class electronics hub, creating manufacturing solutions and producing high value-added components for the global market. This is the choice location for companies and talent to create and manage new markets, advanced products and processes, technologies and applications. The Singapore's semiconductor industry has grown from humble beginnings as an assembly- and test-subcontracting supplier to a fully integrated, cutting-edge technology wafer fabrication hub. With about 13 state-of-the-art wafer fabs nationwide, the small island of Singapore is way ahead of its Southeast Asia neighbours in the development of the region's chip-making infrastructure. Semiconductors, as well as related production equipment and materials, are a key focus of the Singapore’s Industry initiative. An important advantage for investors is that the government is a significant shareholder in most of the island's wafer fabs.

TRADE AND COMMERCE

INDIA

The electronics industry has recorded very high growth in subsequent years. By 1991, private investments - both foreign and domestic - were encouraged. The easing of foreign investment norms, allowance of 100 percent foreign equity, reduction in custom tariffs, and delicensing of several consumer electronic products attracted remarkable amount of foreign collaboration and investment. The domestic industry also responded favorably to the politic policies of the government. The opening of the electronics field to private sector enabled entrepreneurs to establish industries to meet hitherto suppressed demand. The Indian Electronics Industry is a text for investors who are seeing India as a potential investment opportunity.

Improvements in the electronics industry have not been limited to a particular segment, but encompass all its sectors. Strides have been made in the areas of commercial electronics, software, telecommunications, instrumentation, positioning and networking systems, and defence. The result has been a significant trade growth that began in the late 1990s.

Despite commendable achievements in the sphere of electronics, considerable infrastructural improvements remain a priority. Water, power, telecommunications, and transportation sectors must still be amplified so that high economic growth can be sustained.

Due to liberalization policies of 1980’s, Output from electronics plants in India grew from Rs1.8 billion in FY 1970 to Rs8.1 billion in FY 1980 and to Rs123 billion in FY 1992. Most of the expansion too k place in the production of computers and consumer electronics. Indian Production of Computer rose from 7,500 units in 1985 to 60,000 units in 1988 and to an estimated 200,000 units in 1992. During this period, major advances were made in the domestic computer industry that led to more sales. Consumer electronics in India account for about 30% of total electronics production of the country.

SINGAPORE With good physical infrastructure support, such as specialized power and water supplies, waste treatment and other ancillary services already in place, Singapore’s Economic Development Board (EDB) is hostilely courting investments from both multinational corporations and local companies. It is offering incentives such as research and development funding and tax rebates. The key aspect of the "Silicon Valley concept" for Singapore is its ability to capture the entire value chain of semiconductor production. Industry specific supporting facilities that have come on line include silicon wafer production, photo-masking and a high-purity hydrogen peroxide plant.

EDB reports that there are more than 40 semiconductor companies and 160 supporting organizations operating at all levels of the value chain. The Association of Electronics Industries of Singapore (AEIS) and the Singapore Manufacturers’ Federation/EEAIIG are the two organizations working for the development of electronics industry in Singapore. Most ASEAN countries are not in direct competition with Singapore, as Singapore has decided to target sectors with higher technologies.

In 2009, electronics contributed an output of almost S$63 billion and employed more than 76,000 workers. Of the S$11.8 billion in fixed asset investment Singapore received that year, electronics was the largest contributor, accounting for 41.5%.

The charts above, showing India’s trade with Singapore since 2002-03, shows a remarkable trend of upward movement. From the trade figures, it is quite specious that Indian exports to and imports from Singapore have been rising substantially since CECA. Indian exports nearly doubled from Rs. 9,764 crore in 2003-04 to Rs. 17,975 crore in 2004-05. A major reason for this probably was the anticipation for CECA’s signing, which was in its final stages of negotiation at the time. Total trade has gone up from Rs. 13,823.6 crore in 2002-03 to Rs. 62,344.4 crore in 2007-08, a nearly five-fold increase.

OVERVIEW OF BUSINESS AND TRADE AT INTERNATIONAL LEVEL

INDIA

As the market of India is rising like plant growing in the garden in electronics sectors the demand for the Indian market is expected to reach at the peak point in 2020 by US $ 400 billion. Manufacturing has been recognized as the main engine for economic growth and exciting target of taking the share of ICT and electronics hardware manufacturing to around 25% within the reach of 2025 has been setup by National Manufacturing Policy. As the India is second largest peopled country in the world, there are many coupled with strong growth, India will remain one of the largest consumers of electronics products globally.

The industry is composed to ride the wave of domestic demand for electronic products. Developing core areas of design and application development will only help totoss the Indian electronics and manufacturing industry towards greater innovation.

In 2011 the US trade deficit in relation with the India goods is US $ 14.5 billion which is been increased from 2010 by $ 4.3 billion. In 2010 the US goods shortfall was increased by 12.4% that is in US $ 21.6 billion. As per the above data India is the 17th largest export maker for US goods. Export of US towards the private commercial service which eliminates military and government. In 2010 the US exports to India was 10.3 billion and vice versa the US import from India was 13.7 billion. Majority of sale service affiliated by US in India was 13.9 billion in 2009 & vice versa of that the majority of sale service affiliated by India’s owned firm in US was 7.2 billion.

The industry constitutes less than 1% of the global market. However, demand for these products is growing quickly and investments are smooth in to augment manufacturing capacity. a) India remains a major importer of electronic materials, components and finished equipment amounting to around $20 billion in 2007. The country imports electronic goods mainly from China b) In the last four years, production of computers has grown at a compounded annual growth rate (CAGR) of 31%, the highest among the various electronic products in India. This has been followed by communication and broadcast equipment (25%), strategic electronics (20%) and industrial electronics (17%). c) The consumer electronics segment, which has grown at a CAGR of 10% in the last five years, includes a wide range of products such as DVD, VCD/MP3 players, television sets and microwave ovens. d) The growth in demand for telecom products has been high, with India adding two million mobile phone users every month, which is one of the main reasons for the growth in production of electronic goods. This growth is expected to continue over the next decade, too. e) The government has recognized electronics and IT hardware manufacturing as one of the thrust areas for development. A special incentive package scheme (SIPS) was announced in March 2007 to appeal investments for semiconductor fabrication and other micro and nanotechnology manufacturing industries in India. f) In the case of exports, the largest share was taken by electronic components, with 47% of total electronic exports. Exports of electronic components have grown at a CAGR of 25% in the last five years. g) India’s main destination for electronic goods is the US.

India however remains a major importer of electronic materials, components and finished equipment amounting to over US$12 Billion in 2005.India is also an exporter of a huge range of electronic components and products for the following segments -

 Display technologies  Entertainment electronics  Optical Storage devices  Passive components  Electromechanical components  Telecom equipment  Semiconductor designing  Electronic Manufacturing Services (EMS)

Indian Electronics Industry Exports are given below Electronics & IT Production (Calendar Year)

(Rs. crore)

Item 2002 2003 2004 2005 2006 2007*

Consumer Electronics 13,580 14,850 16,500 17,500 19,500 21,880

Industrial Electronics 5,400 5,980 8,300 8,600 10,100 11,560

Computers 4,180 6,600 8,680 10,500 12,500 15,500

Communication & Broadcast 4,800 5,150 4,770 6,300 9,200 13,150 Equipment

Strategic Electronics 2,330 2,670 2,850 3,070 4,500 5,700

Components 6,510 7,450 8,700 8,530 8,600 9,320

Sub-Total 36,800 42,700 49,800 54,500 64,400 77,110

Software for Export 44,000 55,000 75,000 97,000 132,025 157,500

Domestic Software 12,000 15,500 20,500 27,000 35,150 44,730

Total 92,800 113,200 145,300 178,500 231,575 279,340

*Estimated

Source: Electronic Industries Association of India

SINGAPORE

Singapore is a major manufacturing and trading centre in the region for electronic products, components and parts, and supporting services. This section considers Singapore’s position in the industry value chain, including production, technology development, procurement, marketing and sales.

Data initiated from the International Economic Database of the Australian National University (ANU) show that, among the eight economies in this study, Singapore ranked first as an exporter of office and computing machinery (ISIC 3825) and electrical machinery (ISIC 383) and second only to Hong Kong as an importer. As illustrated, this dominant position can be accounted for by large domestic production and entrecote trade.

Singapore’s national trade data (excluding trade with ) illustrate the composition of domestic exports and re-exports and the product alignment in its total exports. In 1992, Singapore’s total trade in electronics reached US$74.3 billion, with imports of US$30.8 billion and exports of US$43.5 billion, of which re-exports accounted for 26.5%. The largest categories of domestic exports were disk drives, computers and subassemblies, integrated circuits (ICs), television (TV) receivers and subassemblies, and color TV sets. Re-exports were concentrated in ICs, computers and subassemblies, disk drives, color TV sets, radios and videocassette recorders (VCRs), and telecommunications equipment.

In 2011, the sector donated an output of US$86.1 billion, accounting for 6.3% of Singapore’s total GDP, and employed more than 82,000 workers.

Singapore’s domestic exports of electronics still depend on US–EC markets, which immersed 64.1% of such exports in 1992. East Asia accounted for 26.3%, but Japan’s share was only 5.1%. The very small Japanese share is noteworthy in view of the extensive presence of Japanese electronics firms in Singapore and may be attributed to both Japan’s import barriers and the corporate strategies of Japanese electronics firms in Singapore.

From the early 1980s to the early 1990s, Singapore became a key manufacturing base for original equipment manufacturers (OEMs) as production costs increased in the OEMs’ home base. The Singapore Government stimulated the sector’s development through investments in state-owned enterprises like Chartered Semiconductor, NatSteel Electronics. A host of smaller private-sector Singapore firms emerged, many as suppliers to the MNCs, but others as innovators themselves (Creative Technology and its soundcards). In the 1990s, several large contract assemblers grew, including Venture and NatSteel Broadway. By the mid- 1990s, electronics was contributing over half the economy’s manufacturing output, up from 23.6% in 1985 and 10.7% in 1975.

TABLE: ECONOMIC CONTRIBUTION BY ELECTRONICS INDUSTRY

Year Real GDP Electronics Manufacturing Growth % Output as % Employment in % of Total Output Electronics 1988 11.1 38.7 34.8 1990 7.3 39.1 34.9 1995 8.8 51.4 34.3 1996 7.0 50.8 34.9 1997 8.5 50.5 33.8 1998 -0.9 50.1 31.7 1999 6.4 52.1 21.2 2000 9.4 51.3 29.7 2001 -2.4 45.0 28.4 2002 2.2 42.2 26.7 2003 0.8 (est.) 40.0 27.1 (est.)

Source: Research Paper on Foreign Trade Performance of Singapore

The weakness of the dependence on electronics for such a large share of output and exports was brought home in 2001, when Singapore suffered a sharp economic recession. The 2001- 2002 downturn in global electronics demand (global sales of semiconductors plunged 34% in 2001) saw Singapore’s domestic exports of electronics down 20% to S$59 million (US$32 billion at then current exchange rates) in 2001 (the U.S. absorbs 20% of Singapore’s electronics shipments). Shipments were down in all segments of the electronics industry. Exports of electronics fell further in 2002, to S$57 billion (US$32 billion at end-2002 exchange rates), or 25% below their level in 2000 and 10% below the 1997 level.

Electronics Trade (Percent Share) Electronics Exports: CY 2001 CY 2002 CY 2003

As a percentage of Total Exports 52.6 52.1 49.7 To U.S. as percentage of Total Exports 11.6 10.9 9.7 To U.S. as percentage of NODX 26.2 24.7 21.5 To U.S. as percentage of Electronics Exports 22.1 20.9 19.6 Electronics NODX as percentage of NODX 61.0 57.9 52.9

Source: Research Paper on Foreign Trade Performance of Singapore

PRESENT TRADE RELATIONS AND BUSINESS VOLUME OF DIFFERENT PRODUCTS WITH INDIA

A short-term look at trends for some of the main commodities of import/ export will shed some light on the composition of trade between the two countries. The main commodities exported and imported by India to/ from Singapore in the last few years are given in the table below: MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION; BITUMINOUS SUBSTANCES; MINERAL WAXES. SHIPS, BOATS AND FLOATING STRUCTURES. NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANICAL APPLIANCES; PARTS THEREOF. ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS, AND PARTS. NATURAL OR CULTURED PEARLS,PRECIOUS OR SEMIPRECIOUS STONES,PRE.METALS,CLAD WITH PRE.METAL AND ARTCLS THEREOF;IMIT .JEWLRY;COIN. IRON AND STEEL ALUMINIUM AND ARTICLES THEREOF. AIRCRAFT, SPACECRAFT, AND PARTS THEREOF. PRINTED BOOKDS, NEWSPAPERS, PICTURES AND OTHER PRODUCTS OF THE PRINTING INDUSTRY; MANUSCRIPTS, TYPESCRIPTS AND PLANS. ORGANIC CHEMICALS VEHICLES OTHER THAN RAILWAY OR TRAMWAY ROLLING STOCK, AND PARTS AND ACCESSORIES THEREOF. Source: Export Import Data Bank, Ministry of Commerce, Government of India

Source: Export Import Data Bank, Ministry of Commerce, Government of India

In the annexure, there are tables analyzing export/ import trends in some of the above commodities. In exports, there has been a very explosive movement in growth rates of the top 5 commodities. For example, gemstones and precious metals had 2 successive years of more than 100% growth, which was followed by a 87.46% drop in 2006-07 that brought the value of export back to around the original level. Mineral oil and fuel products (motor oils, fuel oil, petroleum products, diesel, ATF, etc.) have increased to become 55% of all exports from India to Singapore. Shipping and boat goods (such as floating/ submersible drilling/ production platforms, small vessels for transport of persons and goods) registered huge growth in export around time of CECA’s launch and have grown to 7.3% of India’s exports to Singapore from 1.14% in 2003-04. Unwrought aluminum, copper wires and diamond are other important items of export.

India’s Imports Exports from/to Singapore:

India’s main imports from Singapore comprise electronic goods, non-electrical machinery, organic chemicals, project goods, transport equipment, artificial resins and professional instruments (non-electronic).

Electronic items are India’s largest imports from Singapore. The value of such imports has increased from US$1.31 billion in 2005-06 to US$1.65 billion in 2006-07. Out of around 440 different electronic products imported by India from Singapore, some of the leading ones are photosensitive transistor diodes, electronic integrated circuits, telephones for cellular and wireless networks, apparatus for control and distribution of electricity, electrical machinery parts, laser and magnetic discs for reproducing purpose, optical fiber cables, remote control apparatus (excluding radio), apparatus for switching, static convertors, generating sets with spark ignition, fixed capacitors, transmission apparatus, digital cameras, smart cards, video recorders and parts for line telephone apparatus.

Under the ‘Early Harvest Program of the CECA, India eliminated duties on 506 items originating from Singapore from 1 August 2005. These include a large number of items in electronics, machinery, organic chemicals and other product categories that are currently figuring on the list of India’s important imports from Singapore.

Singapore is India’s fourth largest export market and the country’s biggest trade partner among the Association of Southeast Asian (ASEAN) The ASEAN countries account for 9.5 percent of India’s total commodity exports. Within ASEAN, Singapore alone absorbs 4.5 percent of India’s exports. On the other hand, Singapore is India’s 10th largest source of imports. At present, it accounts for 3.27 percent of India’s total commodity imports.

Singapore accounts for around three percent of India’s machinery and instrument exports. India exports a diverse array of machines and instruments to Singapore. These include printing machinery (parts and accessories), compression ignition engines, aircraft engines, tool holders and machine die heads, boring or sinking machinery, electrically operated textile. spinning machines, different categories of valves, taps and similar appliances, window and wall air-conditioners, roller bearings, machine parts and mechanical appliances, accessories, compressors, printed circuit boards, water and filtering/purifying machinery and centrifugal electrically operated pumps.

Indian exports to Singapore have shown a lower rate of growth. Indian imports from Singapore, however, have shown a higher rate of growth. If this trend continues and strengthens over time, then future India-Singapore trade will be driven more by India’s imports as opposed to India’s exports.

Source: Export Import Data Bank, Ministry of Commerce, Government of India Source: Export Import Data Bank, Ministry of Commerce, Government of India

India's Export to some important countries during the period from 2005-06 to 2009-10

Source: Export Import Data Bank, Ministry of Commerce, Government of India

Source: Export Import Data Bank, Ministry of Commerce, Government of India

Source: Export Import Data Bank, Ministry of Commerce, Government of India

Source: Export Import Data Bank, Ministry of Commerce, Government of India Trade Data

An analysis of trade statistics indicates rapid growth in trade between India and Singapore over the last decade. Since CECA, there has been a important growth in trade flows between the two countries. This trade data relates to trade in merchandise/ goods, not services.

Table which shows Period-wise growth in export, import and trade between India and Singapore.

There are many polices affecting electronics industry. In India & Singapore are related industrial policy-1, foreign investment policy, government- MNC partnership, trade policy, national policy on electronics 2011 announced.

Period Export Import Trade

Period Export (%) Import(%) Trade(%) a) 1992-93 to 1996-97 21.4 10.5 13.7 b) 1997-98 to 2001-02 3.5 4.7 2.5 c) 2002-03 to 2006-07 46.1 34.4 38.7

Source: Computed from Handbook of Statistics on the Indian Economy of the Reserve Bank of India.

Petroleum is India’s main export to Singapore. Other leading Indian exports to Singapore include gems and jewellery, machinery and instruments, transport equipment, electronic goods and non-ferrous metals.

The rate of growth for the last 4 years has averaged at 36.4% for exports, 37.16% for imports and 34.57% for total trade. However, there has been some difference in this. The growth rate for exports has been heading downwards since that first big jump between 2003-04 and 2004- 05. Imports growth rate has been growing steadily, and total trade growth rate has been more even.

POSSIBILITIES/NEW OPPORTUNITIES OF BUSINESS

SINGAPORE:

With existing abilities in IC design, R&D and manufacturing technologies, Singapore’s electronics industry also provides the opportunity to develop solutions addressing the challenges of tomorrow, through the new growth areas of green electronics, bioelectronics, security and plastic electronics. In addition, the manufacturing of finished electronics products creates many spin-offs to other segments of the economy, such as precision component manufacturers, electronic manufacturing systems companies and logistics service providers. Analogue IC design is the key enabling capability for power management and energy harvesting. To pre-position the nation in advanced analogue and mixed-signal design capabilities, Singapore’s new IC Design Centre of Excellence, VIRTUS, was launched.

The S$50 million jointly funded center by Nanyang Technological University (NTU) and the Singapore Economic Development Board aims to be a world-class IC design house, developing key technologies required to design combined circuits and systems for applications in medical technology, clean technology and consumer electronics.

The centre’s research activities can be broadly divided into the following major areas: analogue, mixed-signal, power management and data converters; energy harvesting; low- power RF and mm-wave ICs; and new technology directions such as 3D-integration and physical design, 3D RF and mixed-signal circuits, and terahertz IC. Apart from its primary focus in design, innovation and enterprise, VIRTUS is also committed to train more than 100Post graduate students and researchers in the next five years.

INDIA:

While the WTO Agreement has opened almost the entire electronic hardware sector to zero import duty, local manufacturing is faced with huge disabilities which makes indigenous manufacturing uncompetitive against Asian manufacturers such as China, Thailand, Malaysia and singapore etc.

“The industry has to deal with additional disability factor related costs such as higher interest rates, energy costs, cascading and procedural delays making imports cheaper and an attractive proposition”.

The gap between demand and local manufacture for electronic hardware has been growing fast and steadily and unless the local industry is offered a level playing field and incentives to invest, we will be faced with the twin problem of uncontrollable growth of imports and a shrinking local manufacturing base.

It is estimated that demand for electronics hardware in India would rise from US$30 Bn today to US$ 320 Bn by 2015 and if we can produce even 50% of this locally, Electronics Hardware can provide direct employment to 7 million workers and an additional 14 million jobs.

PROBLEMS AND PROSPECTS OF BUSINESS/ TRADE WITH SINGAPORE PROSPECTS

PROBLEMS/ TRADE BARRIERS

SINGAPORE Some of the factors that affect electronics industry of Singapore are labor wages, investment promotion activity, geographical location, proactive government policy, large market support, accelerating change in technology, price changing and imperative to lower costs

Pay Television In March 2010, the Ministry of Information, Communications, and the Arts, through its sub- agency, the Media Development Authority, released new regulations to require providers to “cross carry” high-class broadcasting content acquired after March 12, 2010. With the help of this rule in the imports and exports of Singapore economy a pay television company with an exclusive contract for a channel would be required to offer that content to customers of other pay television companies. Basic Telecommunications By the end of 2012 Singapore next generation national broadband fiber network should allow fuller, more reasonably priced network access to provide telecommunication services to homes and businesses, with the help of passing the bottleneck of sing Teleowned circuits nearly about the 70% of the home network are being connected within the end of August, 2011.

Audiovisual and Media Services Now a days with the help of audiovisual and media services the use of the electronics devices have increased the Singapore restricts the use of satellite dishes and has not official direct-to- home services. Singapore Media Development Authority must license the installation and operation of broadcast receiving equipment, including satellite dishes. Distribution, importation, foreign newspaper must be approved by the government. Singapore has banned the circulation of some foreign publications when it is been perceived crime of the Singapore economy in the publication. Banking Singapore maintains legal distinctions between foreign currency transactions conducted in the Asian Dollar Market and Singapore Dollar transactions and the type of license held. In retail banking sector of the Singapore laws does not distinguish between the foreign and domestic banks. In mixture with foreign banks and other financial institutions the issue of credit cards in Singapore is unable to provide ATM cards and services through their own local network for holders of those cards.

Foreign banks do not face the same restrictions for credit cards that they issue outside of Singapore. The Minister in charge of the Monetary Authority of Singapore must provide specific types of approve for acquisitions of the voting shares of a local bank above specific beginnings. Although it has lifted the formal ceilings on foreign ownership of local banks and finance companies, the has indicated that it will not allow a foreign takeover of its three major local financial institutions INDIA

Insurance In late 2008 India introduced legislation to allow foreign equity participation of up to 49 percent and also allow entry of foreign Re-insurers. In 2009, the Insurance Laws (Amendment) Bill went to the Standing Committee on Finance for assessment; the Committee did not release its report on the bill until December2011, recommending against increasing the 26 percent foreign equity capital Under current regulations, at the 10 year mark, any partner in an insurance enterprise is required to divest its equity stake down to 26 percent. The requirement efficiently applies only to Indian partners by giving the equity capital of 26 percent for maintaining the joint ventures.

Audiovisual Services US companies continue to experience difficulty importing film and video publicity materials and are unable to license merchandise. Although India has removed most barriers to the importation of motion pictures.

Accounting No foreign accounting firms can enter into the accounting code of the Indian Accounting Services sector because they first have to be the members or part of Institute of Chartered Accountant of India for which they have to undergo the practical training of ICAI which is been accredited by organization and with the help of passing an examination they can enter in to the Indian Accounting Service Sector. Only firms established as a partnership may provide financial auditing services, and foreign-licensed accountants may not be equity partners in an Indian accounting firm.

Postal and Express Delivery The Post Office Act 1898 replace the proposed bill which is being revised in 2011. The bill revised by the post department is about the certain features of the bill include the certain question of the parliament. Through the passing of bill monopoly on express delivery of items weights up to 50 grams & to inspect the same they requires the private operators charge double than the express mail service rate in order to provide service falling within the monopoly. With the help of passing of bill will establish a new licensing and registration scheme over their competitors by granting India Post Regulatory Authority. US companies have expressed concern both with the elements of bill disclosed thus far and with the possibility that the bill may move ahead to parliamentary approval without an opportunity for stakeholder input on the final text of the bill.

Education As a under developing countries India possess the lack of knowledge and skills. Due to lack of knowledge the representative of India works as the governing boards and also works for the universities. In 2012 the issues regarding the Foreign Education Providers Bill has stated that the control on fees and expelling salaries and income from the research has created the potential for the double taxation.

PROSPECTS

National Policy on Electronics 2011 announced

The Ministry of Communications & IT has announced the Draft National Agenda on ICTE. This includes the Draft National Policies on Electronics, IT and Telecom. The Draft National Policy on Electronics was announced on 4th October. The National Policy of Electronics, 2011 envisions creating a globally competitive ESDM industry including nano-electronics to meet the country's needs and serve the international market. The Main Policy Objectives are:

 To achieve a turnover of about USD 400 Billion by 2020 involving investment of about USD 100 Billion and employment of around 28 million by 2020.  To set up over 200 Electronic Manufacturing Clusters  To increase export in ESDM sector to USD 80 billion by 2020  To develop core competencies in sectors like automotive, avionics, industrial, medical, solar, information & broadcasting, etc.  To significantly enhance availability of skilled manpower and upscale high-end human resource creation

New electronic policy aims $400-bn by 2020:

In order to promote manufacturing of electronic and telecom products in India, Communications and IT Minister Kapil Sibal has proposed creating an electronic development fund, very large scale integration (VLSI) specific incubation centers across India and a 10-year stable tax regime for the manufacturing industry. This is a part of the proposed National Policy of Electronics 2011 (NPE 2011) released by the minister. The government proposes to achieve a turnover of $400 billion by 2020 involving an investment of about $100 billion. This includes $55 billion in chip design and embedded software industry and $80 billion of exports in the sector. It also aims at ensuring employment to around 28 million in the sector by 2020.

The size of electronic manufacturing industry in India was $20 billion in 2009. The policy also proposes setting up over 200 electronic manufacturing clusters. Another important objective of the policy is to significantly upscale high-end human resource creating to 2500 PhDs annually by 2020 in the sector.

The policy also proposes to provide preferential market access for domestically manufactured electronic products including mobile devices, SIM cards (subscriber identity module) with enhanced features, with special emphasis on Indian products for which IPR reside in India. This is to address strategic and security concerns of the government.

After taking a decision to end the tax-refund DEPB scheme from October 1, the government is likely to restore interest subsidy of exporters to maintain the country's competitiveness in the global market. The small exporters may get subsidy between 3.5% - 3.75%, whereas for large corporate it may be 2% subvention.

ANALYSIS AND INTERPRETATION

 As far as trade and commerce is concerned in India, during 1980-1992, major advances were made in computer industry.  Consumer electronics in India account for 30% of total electronics production  India’s main destination for electronic goods is the US.  India however remains a major importer of electronic materials, components and finished equipment.  Singapore’s Economic Development Board (EDB) is aggressively courting investments from both multinational corporations and local companies. The Association of Electronics Industries of Singapore (AEIS) and the Singapore Manufacturers’ Federation (SMF) are the other two significant organizations working for the development and promotion of electronics industry in Singapore.  Most Association of Southeast Asian (ASEAN) countries are not in direct race with Singapore, as Singapore has decided to target sectors with higher technologies.  Singapore’s electronics sector contributed 6.3% during 2011 in GDP and 82000 workers were employed.  Singapore ranked first as an exporter of office and computing machinery (ISIC 3825) and electrical machinery (ISIC 383) and second only to Hong Kong as an importer.  Singapore’s national trade data illustrate the composition of domestic exports and re- exports and the product composition in its total exports.  Singapore’s domestic exports of electronics still depend on US–electronic markets  Singapore is India’s fourth largest export market and the country’s biggest trade partner among the Association of Southeast Asian (ASEAN)  Out of around 440 different electronic products imported by India from Singapore, some of the leading ones are photosensitive transistor diodes, electronic integrated circuits, telephones for cellular and wireless networks, electrical machinery parts, optical fiber cables, generating sets with spark ignition, fixed capacitors, transmission apparatus, digital cameras, smart cards, video recorders and parts for line telephone apparatus.

CONCLUSION

 It was commented that “ironically an industry which has great potential to generate large-scale employment opportunities and wealth for the nation is struggling to survive.”  Indian exports to Singapore have shown a lower rate of growth.  Indian imports from Singapore, however, have shown a higher rate of growth.  If this trend continues and strengthens over time, then future India-Singapore trade will be driven more by India’s imports as opposed to India’s exports.  In order to promote manufacturing of electronic and telecom products in India, Communications and IT Minister Kapil Sibal has proposed creating an electronic development fund, very large scale integration (VLSI) specific incubation centres across India and a 10-year stable tax regime for the manufacturing industry.  The government proposes to achieve a turnover of $400 billion by 2020 involving an investment of about $100 billion.  It also aims at ensuring employment to around 28 million in the sector by 2020. SUMMARY OF ENTERTAINMENT SECTOR OF SINGAPORE

Singapore is a favorite recreative destination that provides ample ways for people to amuse and entertain themselves. Singapore, a country of islets and distinct indentity of local regions, allows the multicultural, multivariety of entertainment to exist. People can choose from resorts, parks and cineplexes to bars and pubs to spend quality time and have a lot ofun.

Parks and resorts in Singapore Parks and resorts are aplenty in Singapore each offering a variety of rides and are set on different themes.

'Night Safari' is unique and can be experienced in Singapore only. There are several beautiful parks in Singapore which one can visit during the trip to Singapore. While on a Night Safari, one can witness animals engaged in their night life like looking out for food or prowling. The zoo currently houses more than 900 animals of 135 exotic species such as African bongo, Cape buffalo, striped hyena, blue sheep, golden jackal and one- horned rhinoceros. Some of the famous parks are mentioned below:

 Fort Canning Park in Singapore: This is one of the most visited parks in Singapore. The Park is a popular place for arts, housing precious memorials of the early dating back to 14th century and the personal bungalow of Sir . Open-air ballet, sculpture exhibitions and plays are organized in this Park.  Sembawang Park Singapore: At Sembawang Park in Singapore, you will come across a beautiful natural beach which is a popular place for fishing. You will also find a variety of marine life along the shoreline of Sembawang Park.  Bishan Park Singapore: Another beautiful park in Singapore, Bishan Park, features bridges and lakes, lush greenery, and colorful shrubs growing everywhere.  MacRitchie Park Singapore: This Park is a popular place in Singapore among the exercise enthusiasts, particularly among the joggers. The Park is also an ideal place for morning and evening walks. People also visit this Park for just a stroll along the edge of the water.  Pasir Ris Park in Singapore: This is a coastal park in Singapore, ideal for spending your weekends with your family members. The Park features a mangrove swamp and you can get a glimpse of the mangrove flora and fauna. What else? You can also indulge yourself in several sports like , bird watching and cycling.  Park Singapore: Based on the theme of “Family Leisure,” the Park is an ideal recreation spot for people of all ages. The Park features open lawn areas for organizing picnics or flying kites, a community corner for relaxation, and a wooded area for taking a stroll in a leisurely manner. The Park also houses play and fitness equipment.  Park in Singapore: This Park in Singapore was originally built by the Esplanade Bridge, which is approximately 120 meters from its current location. Like the other parks, this is also a popular park in Singapore.  Bedok Reservoir Park Singapore: Bedok Reservoir Park in Singapore is an ideal place for undertaking water-based activities and regular races are also organized in the reservoir. The Park surrounds the beautiful Bedok Reservoir and is a popular place for jogging. The Park features bicycle rack, cycling track, fitness corner and fitness equipment, running track, toilets and restrooms, event lawn, benches, fishing jetty, and playing equipment for children.  National Orchid garden: A feast for orchid lovers the National Orchid Garden displays almost twenty thousand orchids.  Singapore Zoological Gardens: It is host to almost two thousand animals of at least 240 species. This abode of copious greenery is a safe and pleasant replicate endeavor of the natural habitats of most animals. AMUSEMENT PARK IN INDIA , New Delhi Appu Ghar is the first amusement park of India and is the favorite of all children because of its exquisite roller coasters and water slides. The mini- Disneyland of Delhi has rides for people of all ages. Children love the thrill of riding in a Cable Car and the Speeding Cup. Since there is no snowfall in Delhi, the Ice Games at OYSTERS offering winter sports is quite popular here. Four acres of the Water Park blanketed with ice offering sledding, skiing, ice boating and bowling on ice; is a craze among the people from all over the country. Fun and Food Village, Kapashera, New Delhi The Fun and Food Village is located in Delhi in 10 acres of land with wide range of water rides, pools, rain dance, and also many park rides. The rides are suitable for people of all age groups. The wave pool, largest of all water parks in Delhi, is a special attraction of the park. The water park also boasts of the largest indoor Snow Park over an area of 2500 sq. m.. Fantasy Land, Mumbai TThe Fantasy Land is one of the leading theme parks in Mumbai. The park, Located at Jogeshwari is rich with all sorts of new rides, which drags attraction from people all round the country.

Essel World, Borivli, Mumbai

Essel World is Mumbai's only international-style theme park, situated close to Gorai Beach. Special ferries will take you to the park. This is the largest water theme park in Asia. The ‘Water Kingdom’ of the park is located at Gorai Creek, west of Borivali. The park is sprawled over 64 acres and is a refreshing gateway to a whole new world of excitement and fun. Kishkintha, Kishkintha is the first theme amusement park located 28 Km South of Chennai near . It is spread over 110 acres, and offers exciting rides and attractions. The amusements, attractions, water games and rides, make India's leading water theme park. Amusement Park, Madurai Located in Madurai near the Vaigai River, the Athisayam Amusement park is a marvelous entertainment center for children, adults and old. The Athisayam Park is famous for its cleanliness and safety. MGM Dizzy World, MGM Dizzy World is a 27-acre, children’s amusement park situated at Muttukkadu enroute to Mamallapuram. The major attractions here are the water chute, parachute tower, pirate boat and a 110 feet “dizee shake” challenger. Bay Watch Park, Kanyakumari, Tamil Nadu Bay Watch, located in Kanyakumari is unique in many ways. With the recently added wax museum, Bay watch is the only park in Asia to house one. The wax museum being the first of its kind in this part of the world has caught up with the imagination of the people. Baywatch at sunset point Kanyakumari is also the first seaside amusement park in India. Pearl Water Park Ltd (Crazy Waters), Bangalore, the Garden City of India is famous for software technology parks also, but when dealing with amusement and entertainment Pearl Water Park is the top. It is located on the Bannerghatta main road. Veega Land, Cochin, Kerala Veega Land is situated 300 feet above sea level and is set amongst 30 acres of surpassingly grand and incomparably idyllic environs, at Pallikara (near to Cochin city. Veega Land's scintillating and tranquil setting is matched only by the ambitious scale and grandeur of the park itself. The architecture expresses nothing less than the heart and soul of ethnic Kerala, with a few surprising flashes of vintage Chinese architecture as well. Dream World, Kerala Dream World Water Theme Park is situated on the lap of enchanting Athirapilly waterfalls just 8 km from Chalakkudy. The park is designed in such a way that tourists belonging to any age group can effortlessly reach all the amusement rides without much walking or climbing. Silverstorm, Kerala This is considered to be India's most beautiful water theme park. It is located at vettilappara near the famous Athirappilly waterfalls. There are many exciting rides and state of the art games in this park that lies amidst mighty hills and peaceful valleys. The place has been designed and landscaped magnificently. Fantasy Park, Malampuzha, Kerala Fantasy Park the first amusement park of Kerala, is run by the experienced professionals of Neotech Amusements and Resorts Ltd. The 8-acre land is a gateway to thrilling rides and also to a beautiful area complete with fabulous landscaping and fountains. There is a special section with games and rides especially for kids.. Swabhumi - The Heritage Park, Calcutta, West Bengal The Swabhumi Park is a superb theme park, which offers something for everyone. As the name suggests the park revolves around Indian culture and heritage. The basic theme of the park Swabhumi (My Land) has been conceived to revolve around 'heritage'. The main offering of the Park would essentially be an educative and participative experience for the visitors, by showcasing and demonstrating art, crafts heritage and culture from various regions in the country, with a focus on Bengal. Snow World, Hyderabad, Andhra Pradesh Snow World is the world’s biggest and India’s 1st Snow Theme Park. All these snow wonders will be made possible by artificially producing snow using state of the art technology supplied by Woomera Snow Guns Ltd., Australia. Ocean Park, Hyderabad Ocean Park is one of its kind Water Theme Amusement Park modeled on International standards.

Ramoji Film City

Ramoji Film City is a huge film studio complex where thousands of Indian movies are filmed every year. If one wanted to see how movie sets come to life, this is the place. It also has a theme park with rides, and Entertainment Park for kids.. Location: Around 25 kilometers from Hyderabad, in Andhra Pradesh.

Nightlife in Singapore

A tour of the nation of Singapore remains incomplete without exploring the Nightlife in Singapore. The nation of Singapore remains awake all the night and it could be said undoubtedly that the nightlife of Singapore is truly exciting. The city/nation/island of Singapore is never short of entertainment, irrespective of the fact that whether it’s daytime or nighttime. After the sun sets at Singapore the citizens of Singapore gear themselves up to dance to the rhythm and the beats of the music played at the nightclubs. The numerous Nightclubs in Singapore are scattered throughout the nation/island /city of Singapore and each of these nightclubs have an added attraction that makes them unique and makes them the most haunted place of this nation. After a hard day, the Nightclubs are the best place to chill and relax with friends or family or relatives.

If one wants to have a rocking time at Singapore then the place that aptly suits you are the Bars and Pubs in Singapore. Singapore is the home numerous bars and pubs that are scattered throughout the city/island/nation of Singapore. The young citizens of Singapore had made the bars and the pubs the most sought after places and as soon as the sun sets its time to party at Singapore. Most of the bars and the pubs of Singapore remain open seven days a week.

Restaurants and dinning places Singapore is an island of varied culture, which is invariably followed by availability of different cuisines. All over Singapore, in every nook and corner one would find food being served hot or cold and in innumerable varieties. The aroma and the whiffs pervading from the local eateries or the fine dining hotels itself forms an appetizer and arouses your taste buds more than ever.

It is estimated that Singapore has over 2,000 eating establishments, so a traveler will never be at a loss for a place to go. Apart from the hawker centers, roadside stalls and fast food joints that are available at every corner, Singapore also offers the pleasure of exquisite fine dining, accompanied by spectacular views of Singapore that can be enjoyed while savoring mouth- watering food.

Shopping Shopping is another favorite activity in Singapore. There are places worth seeing for ethnic shopping, such as, Chinatown and Little India. A plethora of shopping malls offer exciting ranges of goods and articles. One can define the trend of Singapore duty free shopping as a sort of fresh breeze. This is because with the help of duty free shopping in Singapore you can shop as much as much as you want without paying any extra dollar. Singapore is regarded as the most happening shopping destinations of the world. Here, at this magnificent island-city, one will find a huge range of offerings in terms of apparels, accessories, shoes, bags, watches and almost everything. Stylish and elegant are the terms that can very appositely define the stuffs that are available in Singapore, the paradise for crazy shoppers. Singapore offers a lot of duty free shopping options.

Music industry in Singapore A nation where music can be felt in very breath you take, is undoubtedly a place where the Music Industry thrives. With Pop, Rock, Punk, Folk and classical running in the veins and arteries of the country, Music Industry in Singapore can be considered as one of the most well developed and sought after industry of. Singapore. Whenever it comes to any kind of Industry, one factor which inevitably comes to mind is the revenue which it generates that contributes to the economy of the country. Music Industry in Singapore is a major revenue generating areas of the nation, with thousands of music albums being sold everyday. As music is very popular in the island nation, many new bands are formed and singers take to stage, giving live performances on a nationwide basis. These live performances are very popular and see the gathering of large number of music fans.

As Singapore has many genres of Music existing all a the same time, be it Folk or Operas and orchestras, contemporary or hip hop, Peranakan and others, the Music Industry in Singapore is spread over large vistas of cultural world of Singapore In fact, the Music Industry in Singapore draws numerous tourists to this nation, contributing to the Tourism Industry as well. Another area where Music Industry has extended its reach is the Opera Festivals holding Orchestras and Concerts, be it the Traditional Asian types or modern and contemporary music. Singapore is home to more than 100 music companies, societies and schools. Music Industry Alliance of Singapore (MIAS) MIAS is a professional body to servicing and representing the interests of the local professionals in the music industry. Whether negotiating fair agreements, protecting ownership of recorded music, securing the interests of homegrown artists, or lobbying our legislators, the MFS is committed to raising industry standards and placing the real professional in the foreground of the cultural landscape.

Indian Music Industries

India’s entertainment economy is growing rapidly, and the world is taking note. The country is among the world’s youngest nations, with more than half a billion people under the age of 25. With favorable demographics and a rise in disposable incomes, the propensity to spend on leisure and entertainment is growing faster than the economy itself.

Enticed by economic liberalization and the huge volume of demand for leisure and entertainment, many of the global media giants have been present in the Indian market for more than two decades. However, in recent years, with near double-digit annual growth and a fast-growing middle class, there has been a renewed surge in investment in the country by global companies. Companies in the US and Western Europe see their growth increasingly linked to emerging giants like India, which is why they are now focused on the best way to enter, grow and brand their business in this market.

Film music dominates the music industry: Film music, including Bollywood and regional film music, accounts for 67% of music sales in India.95 Film producers typically create an album for a film and license the exploitation rights to a music company. Because of the dominance of film music, the Indian music industry is less focused on developing stand-alone artists than in other countries.

Theatres in Singapore The plays that are performed at the theatres of Singapore reflect the fact that the citizens of Singapore take active interest in art and culture. The stage performances by the Chinese, Indians and the Malay artists give you an insight into the culture of these communities and the actors who put in their best to win your appreciation deserves your applause. Singapore Arts Festival that is held in the month of June invites theater groups from all over the world to showcase their talents. Singapore Film Industry The early Singaporean cinema started in 1930’s was result of wholesome film activities by few creative men who coordinated all verticals of cinema together. The early production houses were Shaw and Cathay, who themselves created movie houses to play their own movies. P. Ramlee and Cathay Keris were the key people who introduced film industry to Singapore. The most noted directors of this time were Hussein Haniff of Cathay Keris and P. Ramlee who was a versatile talent in script making, acting and directing.

The early Singaporean cinema presented Arabian love stories which were all time epics of the common man. Later Chinese movies which were creations of both Chinese and Indian entertainment stalwarts became popular in Singapore. During the infamous Japanese invasion during World War II, the Shaw and Cathay theatres were used to propagate war hysteria and hate of the era.

To some extend the movies tried to reflect Singaporean life in its true awe. But the effort did not last long due to financial crisis and lack of technical inadequacies. The next phase of cinema was led by Chong Gay. His creations were The Hypocrite, Crimes Does Not Pay and The Two Sides of the Bridge. Bobby A Suarez has made some innovative experiments by making They Call Her Cleopatra Wong, Dynamite Johnson, etc. Sonny Lim, a Hawaiian musician tried to promote the movie They Call Her Cleopatra Wong in America by dubbing it in American accent.

One of the internationally acclaimed movies of all times was Lim Suat Yen’s film The Road Less Travelled. Post 1990 the Singaporean cinema recovered from its inherent inertia considerably. With the entry of Bugis Street, Mee Pok Man, which proved good standard by box office as well as artistically and ideas of independent filmmaking. Arnmy Daze, Forever Fever, God or Dog Tiger’s Whip and Teenage Textbox were some well discussed movies of the time. In 1990’s decade 12 of the Singaporean movies got entry in the Cannes film festival. Indian film industry

Bollywood is the informal term popularly used for the Hindi-language film industry based in Mumbai (formerly known as Bombay), Maharashtra, India.Film Federation of India:To promote commerce in general and in particular to promote, protect and watch over the interests of the Indian Film Industry and allied industries and trades, including the interests of producers, distributors and-exhibitors of films and of all other persons connected with the film industry, to regulate their method or doing business Bollywood is the largest film producer in India and one of the largest centers of film production in the world. Bollywood is formally referred to as Hindi cinema. There has been a growing presence of Indian English in dialogue and songs as well. Sports in Singapore Sports in Singapore has been popular since the colonial times when it filled the idle hours of the colonial masters and also was a time when sports was a prerogative of few. But as the economy, society and polity changed the earlier trend has changed and now one finds active participation from the population. The traditional games like the like congkak, capteh, gasing and sepak are now declining in their popularity. These games are also found in Malaysia, Thailand, Indonesia and . One can also find that certain traditional games are still played in the households. The most popular is football. Badminton in Singapore Badminton in Singapore is a very popular game and is played by a vast number of people. Basketball in Singapore Basketball in Singapore is going places. The Singapore Slingers proves that. The Singapore Slingers has done Singapore proud by being the first Asian club to be part of Australian National Basketball League. Established in 2006/07, the Singapore Slingers are a great team, though they haven't won a major championship yet. Bowling in Singapore Singapore Bowling includes 20 Bowling Centers, each Bowling offers more than 20 lanes. Being a very popular game, this attracts numerous tourists from across the globe. Football in Singapore In Singapore like many Europeans nation, Football is more serious than life and death. Such is the love of for the game. Football was introduced in Singapore during the British Rule, in the 19th century. Local Leagues were performed at that time and they became highly popular. A golden era emerged at Singapore with the advent of the Singapore Malaysia Cup. This nation island performed very well and was acknowledged as the strongest team. 24 championships cup in Football adorned the country and Singapore also witnessed 50,000 fans in its home games of Football. Golf in Singapore A sunny weather all year round, lush greenery and world class golfing facilities make Singapore a hot destination for golf lovers all over the world

Polo in Singapore Polo in Singapore is a popular sport. Over the years, Polo, as a sport in Singapore has received great acclaim. The Singapore Polo Club, for instance, is one of the leading Polo Clubs in the place. Founded in 1886. Table in Singapore Table Tennis is one of the favourite sports in Singapore. It is played in the city clubs as well. The game attracts numerous tourists from across the globe and there is also a Table Tennis Centre at Singapore. Tennis in Singapore Tennis in Singapore holds a special place in the history of Sports, both International and Domestic. This is because of the fact that Tennis had been an ancient game at Singapore and players and audiences alike have taken due care in order to promote this game to great heights. Singapore Tennis has thus made a place for itself in Asian Sports and displayed copious talents who have bagged numerous awards, much to the pride of the country.

Sports in India

Field hockey is the official national sport in India, and the country has won eight Olympic gold medals in field hockey, though cricket is the most popular sport. After the hosted in New Delhi, the capital city now has modern sports facilities, and similar facilities are also being developed in other parts of the country. India has hosted or co-hosted several international sporting events, such as the 1951 Asian Games and the 1982 Asian Games, the 1987 Cricket World Cup and 1996 Cricket World Cup, the 2003 Afro-Asian Games, the 2010 Hockey World Cup, the 2010 Commonwealth Games, and the 2011 Cricket World Cup. Major international sporting events annually held in India include the Chennai Open, Mumbai Marathon, Delhi Half Marathon, and the Indian Masters. India also hosted its first Indian Grand Prix at the Buddh International Circuit, an Indian motor racing circuit in Greater Noida, Uttar Pradesh, India.

Cricket Board of Control for Cricket in India, India national cricket team, and India national women's cricket team Cricket has a long history in India, and is the most popular sport by a wide margin in India. Recently, it won the 2011 Cricket World Cup by defeating in the final match hosted by India. It is played on local, national, and international levels and enjoys consistent support from people in all parts of India. Football Football was introduced to India during the British occupation, and in some areas of the country, it is equally as popular as cricket. India was an Asian powerhouse in the 1960s, finishing as runners up in the 1964 AFC Asian Cup, but gradually the standard of football has gone down compared to other countries, and India currently ranks 154th in the FIFA rankings as of 29 February 2012. Basketball Basketball is a popular sport in India. India has both men's and women's national teams in basketball. Tennis Tennis is a popular sport among Indians in urban areas. Tennis gained popularity after the exploits of Vijay Amritraj. India's fortunes in the Grand Slam singles have been unimpressive although Leander Paes and Mahesh Bhupathi have won many Men's Doubles and Mixed Doubles Grand Slam Titles. Sania Mirza is the only notable Indian woman tennis player, having won a WTA title and breaking into the Top 30 WTA rankings. On the men's side, young Somdev Devvarman and Yuki Bhambri are flying India's flag on ATP Tour.

Chess Chess has risen in popularity in India in the last few decades primarily due to its star player GM Vishwanathan Anand. He is the current World Champion, and he has revolutionized the popularity of this sport in India.

Badminton Badminton is a popular sport in India. Indian shuttler Saina Nehwal is currently ranked fourth in the world and has been named the Most Promising Player of 2008 by the Badminton World Federation. This is the first ever achievement by any Indian shuttler, after Prakash Padukone and Pullela Gopichand, who both won the All England Open in 1980 and 2001 respectively. Other sports Volleyball, Floor ball, Bandy, Netball, Ice Hockey, Handball, Throw boll, Kabaddi, Lacrosse, Polo, Baseball & Softball, Boxing.

TELEVISION IN INDIA

Television is one of the major mass media of India. It is a huge industry which has thousands of programmes across Indian states ranging from national language to regional ones. The small screen has produced numerous celebrities of their own kind some even attaining national fame. TV soaps are extremely popular with housewives as well as working women. Approximately half of all Indian households own a television. As of 2010, the country has a collection of free and subscription services over a variety of distribution media, through which there are over 515 channels and 150 are pay channels.

HISTORY

Terrestrial television in India started with the experimental telecast starting in Delhi on 15 September 1959 with a small transmitter and a makeshift studio. The regular daily transmission started in 1965 as a part of All India Radio. The television service was extended to Bombay (now Mumbai) and Amritsar in 1972. Up until 1975, only seven Indian cities had a television service and remained the sole provider of television in India. Television services were separated from radio in 1976. National telecasts were introduced in 1982.

Cable television

As per the TAM Annual Universe Update - 2010, India now has over 134 million households (out of 223 million) with television sets, of which over 103 million have access to Cable TV or Satellite TV, including 20 million households are DTH subscribers. In Urban India, 85% of all households have a TV and over 70% of all households have access to Satellite, Cable or DTH services. TV owning households have been growing at between 8-10%, while growth in Satellite/Cable homes exceeded 15% and DTH subscribers grew 28% over 2009. It is also estimated that India now has over 500 TV channels covering all the main languages spoken in the nation.

Satellite television

As of 2010, over 500 TV Satellite television channels are broadcast in India. This includes channels from the state-owned Doordarshan, News Corporation owned STAR TV, Sony owned Sony Entertainment Television, Zee TV, Sun Network and Asianet. Direct To Home service is provided by Airtel Digital Tv, BIG TV owned by Reliance, DD Direct Plus, DishTV, DTH, Tata and Videocon . DishTV was the first one to come up in Indian Market, others came only years later.

Cable TV is through cable networks and DTH is wireless, reaching direct to the consumer through a small dish and a set-top box.

TELEVISION IN SINGAPORE

Television in Singapore is strictly regulated by the government. TV, fully owned by government holding company , has a monopoly on channels, while the sole cable operator is StarHub. The private ownership of satellite dishes is banned.

History

Broadcasting developed from a single terrestrial channel operated by the Singapore Broadcasting Corporation (SBC) in the 1 January 1980 to 31 December 1993. When SBC was rebranded as Television Corporation of Singapore (TCS) it launched , Channel 8 and Channel 12. A reorganisation on 1 January 1996 saw the creation of MediaCorp and a redistribution of programming among the channels.

Cable StarHub TV is the sole operator in Singapore. StarHub Cable Television was formed as a result of a merger between StarHub TV and Singapore Cable Television (SCTV) on 1 January 2002. The latter first began broadcasting as a terrestrial pay-television operator in 1 January 1990 as the first cable network was not completed until 1 January 1994. Around 80% of households in Singapore are connected to the StarHub network. The remaining 20% have mio TV only or no cable TV at home.

Singapore's Media Industry Charting Strong Growth

Singapore's media sector has been performing strongly, posting a compounded annual growth rate (CAGR) of 6.8% between 1997 and 2008. In 2008, the industry contributed S$5.5 billion in value-added (VA) and S$22.4 billion revenue to the economy, and employed some 58,000 workers. Singapore's media sector consists of several industries, including TV broadcast and production; publishing and printing; film; music; as well as interactive and digital media.

Fast Growing Sub-sector - Interactive & Digital Media

Interactive & Digital media – which includes video games, animation, online/mobile media and new forms of digital entertainment – has skyrocketed into a multi-billion dollar business. The global videogames industry (excluding hardware sales) is expected to swell from US$56 billion in 2010 to US$82 billion by 2015, with Asia registering the fastest growth, according to the PriceWaterhouse Coopers' Global Entertainment & Media Outlook. Singapore's animation and games industries are seeing rapid expansion According to Deloitte, Singapore's games and animation industries, together with online/mobile media, have demonstrated robust growth, posting a CAGR of 22% from 2005-2009. In 2009 it contributed $867 million in VA and $1.5 billion revenue to the economy, and employed an estimated 7,400 workers.

Broadcast Hub of Asia Moves into Content

Since the 1990s, Singapore has attracted a number of global broadcasters to its shores. There are now a large number of major networks up linking their channels from Singapore to their regional audiences. These include Discovery Networks Asia Pacific, CNBC Asia Pacific and ESPN Star Sports. The Performing Arts is one of the largest and most diverse sectors in Singapore’s creative industries. It is an art form that engages a live audience through stage performances, often taking the audience into a make-believe world of the performers. The sector is driven by people with the passion for the arts and the talent to tell a good story, skilled at fusing rich Asian heritage with contemporary art forms, melding the conventional with innovative technical theatre techniques, as well as possessing a strong knowledge and understanding of the global and regional performing arts scene, our talents are poised to take Singapore’s performing arts to new heights. Producers, directors, writers, composers, artistes, technical specialists, presenters... notable individuals and groups have collaborated with leading foreign players and established their networks in the West, across Asia and even the Middle East.

Current status of the industry and its growth potential

The Indian economy continues to perform strongly and one of the key sectors that benefits from this fast economic growth is the E&M industry. This is because the E&M industry is a cyclical industry that grows faster when the economy is expanding. It also grows faster than the nominal GDP during all phases of economic activity due to its income elasticity wherein when incomes rise, more resources get spent on leisure and entertainment and less on necessities. The size of E&M in India is currently estimated at INR 353 billion and is expected to grow at a compounded annual growth rate of 19 percent over the next five years.

The television industry continues to dominate the E&M industry by garnering a share of over 42 percent, which is expected to increase by a further 9 percent to reach about 51 percent. The share of the film industry, which currently stands at 19 percent, is not expected to change materially over the next five years. Print media, which stands at over 31 percent, is projected to lose some of its share in favour of the emerging segment.

Key growth drivers

Television Subscription revenues are projected to be the key growth driver for the Indian television industry over the next five years. Subscription revenues will increase both from the number of pay TV homes as well as increased subscription rates. Filmed entertainment Indians love to watch movies. And advancements in technology are helping the Indian film industry in all the spheres – film production, film exhibition and marketing. The industry is increasingly getting more corporatized. Several film production, distribution and exhibition companies are coming out with public issues. More theatres across the country are getting upgraded to multiplexes and initiatives to set up more digital cinema halls in the country are already underway. This will not only improve the quality of prints and thereby make film viewing a more pleasurable experience, but also reduce piracy of prints.

Print media A booming Indian economy, growing need for content and government initiatives that have opened up the sector to foreign investment are driving growth in the print media. With the literate population on the rise, more people in rural and urban areas are reading newspapers and magazines today. Also, there is more interest in India amongst the global investor community. This leads to demand for more Indian content from India. Foreign media too is evincing interest in investing in Indian publications. And the internet today offers a new avenue to generate more advertising revenues.

Radio

The cheapest and oldest form of entertainment in the country, which was hitherto dominated by the AIR, is going to witness a sea-change very shortly. As many as 338 licenses are being given out by the Indian government for FM radio channels in 91 big and small towns and cities. This deluge of radio stations will result in rising need for content and professionals. New concepts like satellite, internet and community radio have also begun to hit the market. Increasingly, radio is making a comeback in the lifestyles of Indians.

Barriers to investment in the entertainment and media industry A lot more investment can be drawn into the entertainment and media industry if certain sectoral policy barriers can be addressed. Some of the issues that need to be addressed which commonly impacts all segments and need to be addressed urgently include:

1. Piracy 2. Lack of a uniform media policy for foreign investment 3. Level playing field with incumbents 4. Content regulation 5. Price regulation in the television industry 6. Cross-media ownership rules 7. Lack of empowered regulators 8. Merging of the FII and FDI caps 9. Tax treatment of foreign broadcasting companies

Singapore overview of the entertainment industry:

Singapore’s cultural scene has become more vibrant over the past decade. Total number of performing arts activities and visual arts exhibitions increased by some 150% from about 1,700 in 1989 to some 4,200 in 1998. Ticketed attendance for performing arts increased by 46% from 562,000 in 1989 to some 822,000 in 1998 – this translates to an average of 2,250 ticketed patrons a day.

Theatre is the most popular form of performing arts, contributing to 65% of ticketed performances and 53% of total ticketed attendance in performing arts in 1998. This is followed by music (22% of total ticketed performances and 31% of total ticketed attendance) and dance (10% of total ticketed performances and 11% of total ticketed attendance). Local arts groups are the main players of our vibrant arts scene, contributing 83% of total ticketed activities and 70% of ticketed attendance.

A wide range of festivals takes place throughout the year. The major ones include the Singapore Arts Festival (June, three weeks), Singapore International Film Festival (April, two weeks), International Comedy Festival (April, three weeks), The Substation’s Septfest (September, one month), Singapore Writers’ Festival (September, one week) and Nokia Singapore Art (December - January, two months).

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Community-based Arts Apart from the arts companies and societies, our grassroots cultural organisations have also helped to contribute to the vibrancy of the arts scene. The People’s Association (PA) plays a significant role in promoting the arts through performances and courses held at community centres/ clubs. Cultural Facilities Besides the three theatres run by the NAC – Kallang Theatre, Victoria Theatre and the Drama Centre, there are a host of other performing arts venues in Singapore. These range from Black Boxes to small theatres like Jubilee Hall at the Raffles Hotel (388 seats), mid-sized venues like the DBS Auditorium (579 seats), to large venues like the Singapore Indoor Stadium (12,000 seats). The Esplanade – Theatres on the Bay, is Singapore’s premier performing arts center it comprises of 1,800-seat Concert Hall, a 2000-seat Theatre, three performing and rehearsal studios and outdoor performing spaces. The National Heritage Board’s (NHB) museums have been able to attract healthy numbers of Singaporeans and visitors. An innovative initiative was the launch of the arts radio station, Passion 99.5FM. The station airs infotainment arts programs, music, radio plays, as well as previews and reviews of shows in our cultural scene Within a year of its official launch in April 1998, the station had doubled its weekly listenership to 60,000. (Source: Radio Diary Survey by AC Neilsen, 29 Mar – 23 May 99.)

Conclusion

The Singapore arts and cultural scene is being fuelled by an increasingly educated profile of younger Singaporeans. Three quarters of the Singapore Arts Festival audience is less than 40 years old. Former information and arts minister BG George Yeo observed recently that the concert halls and theatres were packed with younger people and not greying audiences, and that the younger generation is changing the nightclub and cultural scene in Singapore.

This is thus a critical juncture for the state of the arts in Singapore. Having secured the economic necessities of life, Singaporeans are discovering the allure of culture and things aesthetic. The potential for Singapore to develop into a renaissance city of Asia is high. The population should thirsts for knowledge, culture and the arts. This means increased demand for spaces for libraries, bookstores, museums, theatres, concert halls and exhibition areas. There will be dedicated arts precincts and cultural campuses in the city centre like Waterloo Street and the Empress Place area, supporting a growing number of creative and cultural activities. Museums and heritage trails will dot our cityscape to showcase our shared heritage.

There should be an explosion in interest in arts and heritage issues, with intelligent, mature and passionate exchanges in the media and among people. Standards of art criticism improve and there is more and better quality documentation of the arts and heritage scene in Singapore. There is a thriving arts industry and private sector efforts to promote the arts on a sound business case complement the support extended from the government and corporate sectors. There is the need to develop more major arts companies, including some flagship ones that become our “National” companies. These widen the opportunities available to nurture artistic talents and to attract and absorb foreign creative talents. Local artists are encouraged to produce works from a Singaporean perspective and clear, internationally-recognized Singapore and pan-Asian voices begin to develop. In terms of quantitative benchmarks, numbers of arts events, professional arts companies, arts facilities, attendance at arts events and government funding for the arts per capita should reach a level comparable with cities like Hong Kong, Glasgow and Melbourne over the next five to ten years. In the longer term, Singapore should be as vibrant as top league cities like London and New York City.

For India With rapid advancements in technology, we believe that convergence will play a very crucial role in the development of the Indian entertainment and media industry where consumers will increasingly be calling the shots in a converged media world. Broadband access and Internet Protocol (IP) will be the technology enablers that will evolve this new breed of consumers. In the converged world of tomorrow, content and access will no longer be in short supply. Opportunities for consumers to access and manipulate content and services will not only be abundant, but overflowing. However, consumer time and attention will be limited. Thus, established approaches of pushing exclusive content through non-linear-channels or networks to mass or segmented audiences will no longer guarantee competitive advantage. Thus, following are the challenges and opportunities that convergence will bring to the industry: • Consumer needs are expanding beyond the mass media and segmented media to ‘Lifestyle Media’, a new approach that will help consumers maximize their limited time and attention to create a rich, personalized and social media environment. This approach presents many opportunities for the industry to create new avenues to generate revenue. • Knowledge of ‘consumer activity’ rather than exclusive ownership of content or distribution assets will become the basis for competition. Businesses that capture ‘consumer activity’ data and use it to inform business and advertising models will be positioned to succeed. • Early movers in establishing media marketplaces will have a significant advantage over late entrants because of network effects, whereby the value of the market place increases as the number of participants increase. • Media market places will be economically viable only if operational efficiencies can be realized through consumer activity measurement capabilities and supporting systems. • Significant advancements in audience measurement technology will be needed to capture, analyze and standardize consumer activity data across platforms.

The Indian entertainment and media industry today has everything going for it - be it regulations that allow foreign investment, the impetus from the economy, the digital lifestyle and spending habits of the consumers and the opportunities thrown open by the advancements in technology. All it has to do is to cash in on the growth potential and the opportunities. The government, on its part, needs to play a more active role in sorting out policy-related impediments to growth. The industry needs to fight all roadblocks- such as piracy- in a concerted manner, while churning out high-quality, world class end products. The entertainment and media industry has all that it takes to be a star performer of the Indian economy.

SUMMARY OF FMCG SECTOR OF SINGAPORE

Fast Moving Consumer Goods provides Market Expansion Services for all categories of fast moving consumer products in all channels, whether food products or non-food products, ambient, chilled, or frozen. Profit from our unrivalled track record of growing brands. Our expertise, infrastructure, and dedicated specialists enable us to understand your needs and deliver truly customized solutions to grow your business.

Singapore is one of the most open, and thus competitive, markets in the world. The 2011 World Bank Ease of Doing Business Index ranks Singapore as the best country in the world to do business – ahead of Hong Kong and New Zealand. Singapore is also ranked third in the ’s Global Competitiveness Report behind Switzerland and .

Singapore was one of the original "Newly Industrialised Countries" (NICs) alongside Hong Kong, and Taiwan. Between the 1960s to the 1980s, the manufacturing industry, in particular, was able to attract numerous Multi- National Companies (MNCs) and Foreign Direct Investment (FDIs) into the country. This became the foundation for Singapore to grow into one of the most advanced and technologically driven economies in the world.

In 2010, Singapore was the third fastest growing economy in the world behind and Paraguay – with a real GDP growth rate (constant prices, national currency) of 14.471 percent.

The is best described as a . Although the country strongly advocates free-market policies and practices, government intervention is also evident in macroeconomic management and major factors of production such as land, labour and capital resources. This innovative and highly successful – where both the market and the state have equally strong roles in the government – is dubbed as the Singapore Model.

The Singapore Model was born out of necessity. Singapore has a relatively small domestic market, and thus has to open its economy to external markets in order for the economy to thrive. However, the inherent vulnerability in depending on external markets compelled the government to enact economic policies that would safeguard the country from perturbations in the global market. Apart from these policies, the government has also actively encouraged new industries to develop in Singapore so as to respond to the needs of the global market.

The underlying influence of the government can also be felt in other various facets of the society – from education, to transportation, to housing and to the media. However, many social policies that have been implemented are often seen to be supplementary for the economy. As such, many people have labelled the country as “Singapore Inc.” – where the country appears to be run more like a corporation than a nation.

To date however, the Singapore Model or “Singapore Inc.” has proven to be extremely successful. Globally and regionally, the Singapore economy has demonstrated astounding resilience to financial crises such as the 1997 Asian Financial Crisis or the 2008 Global Financial Crisis. Singapore is also the only Asian country to have AAA credit ratings from all three major credit rating agencies – Standard & Poor’s, Moody’s and Fitch. According to the 2011 Index of Economic Freedom, Singapore is the 2nd freest economy in the world. Singapore’s business freedom score is exceptionally high – it takes three days to start a business in Singapore compared to the world’s average of thirty-four days. Apart from strong business and regulatory policies, other factors such as the country’s strategic geographic position, a vast natural seaport, a highly skilled workforce and a favourable tax regime, have created a conducive business environment for companies and industries.

Singapore is an entirely urban nation with a population of 5.2 million. It has an anticipated GDP of US$261.4 billion for 2011 and has forecasted growth rates of over 5 percent. Singapore is a relatively wealthy nation and it is estimated that over 68 percent of households have an annual income of over US$50,000. i On a per capita basis, Singapore has the highest food consumption levels in the Southeast Asia region. Singapore food consumption is forecasted to reach US$7.5 billion in 2011 and account for 3 percent of GDP. ii Because of its limited land for agriculture, Singapore imports more than 90 percent of its food, particularly from other Asian countries. iii Imports of food and beverage are expected to grow 8.3 percent in 2011. iv The typical Singaporean diet contains large amounts of fish and meat. Meat and fish account for 14.6 percent of New Zealand’s overall exports, making Singapore a valuable trading partner in these products.

Total list of all fmcg companies in singapore companies: 619

Monthly Economic Analysis Fortune 2009 Region/Country US 2007-08 2008-09 2008-09 % change $ million

Singapore 6438.8 7283.2 13.1 Market Drivers

Food retail currently accounts for 40 percent of retail spending in Singapore and this figure is expected to rise. However, the overall food and beverage market is not growing rapidly. Food consumption is expected to increase by only 2.3 percent in 2011. The main drivers of this growth are higher incomes and rising tourism levels. Additionally, there are three key drivers that are leading to high growth in certain types of products:

 Premiums: Higher levels of income mean that Singaporeans are becoming more willing to purchase value-added food and beverage at a premium. An example of this is the growing demand for functional .

 Food Accountability: Singapore consumers are becoming more aware of health and safety issues. Due to this, food and beverage items that are packaged and labelled with nutritional information, as well as healthier products, are experiencing higher demand.

 Urbanisation: Singaporeans are living increasingly busy lifestyles and are having less time available for food preparation. This is leading to higher demand for convenience food products and processed foods. Import Trends In 2010, New Zealand exported NZ$547 million worth of food and beverage products to Singapore. This was up 28.7 percent from 2009. The top exports have all experienced at least double digit growth. Exports of whey, other natural milk products, crustaceans and molluscs approximately doubled in value. Additionally, milk and cream, which accounts for almost half of New Zealand’s exports to Singapore, grew by 45 percent.

Key Players in the Market

In Singapore, there are four major types of food retailers

 Large Retailers: Supermarket chains and hypermarkets take up 80 percent of market share.iii Hypermarkets are the fastest growing retailers and are expected to increase sales by 46.4 percent by 2015. Overall, large retailers are expected to grow 20.1 percent by 2015. These stores have a large variety of products and tend to charge lower prices than other types of retailers.

 Convenience Stores & Petrol Stations: Convenience stores and stores located at petrol stations tend to operate 24/7 and are commonly located in HDB neighbourhoods (government subsidised complexes that house over 80 percent of the population). These stores have a 16 percent market share and are expected to experience sales growth of 23.4 percent by 2015.

 Traditional Stores: Traditional stores have only 3 percent of market share but make up 70 percent coverage of total food retailers in Singapore. Typical stores in this category include wet markets, provision shops and sundry shops:  Wet markets typically sell fresh meat and produce.  Provision shops are located in HDB neighbourhoods and seen as traditional convenience stores.  Sundry shops focus on traditional Asian cooking ingredients such as preserved goods and spices.  Specialty Stores: Specialty stores that sell premium products at higher prices include butcheries, wine outlets and bakeries. These stores target higher income households and hold 1 percent of market share.

MARKET ENTRY AND DEVELOPMENT

 Market Entry Strategies Local Partner Local expertise can help with the success of exporting as a local partner will be more familiar with the Singapore market. Exporters typically will appoint a local distributor or agent. An agent acts as your representative in the local market and they are usually paid by sales commissions. When selecting a local partner, the following considerations can be important: 1. Expertise and skills 2. Networks and reputation 3. Assistance with legal and regulatory matters 4. Level of customer support

Marketing & Promotion How a product is marketed and promoted will have a major impact on its success in Singapore. It is recommended that New Zealand companies consider the following marketing strategies and issues before entering the Singapore market

 Co-Branding: Singapore consumers are more likely to purchase a product if it has a familiar brand. Co-branding New Zealand products by partnering with local Singapore brands can increase the competitive advantage of New Zealand goods.

 Language Clarity: While the predominant language in Singapore is English, it can be spoken or understood differently in Singapore as they often mix English with Malay, Hokkien and Mandarin. Due to this, marketing campaigns that rely on a Westernised understanding of English may be ineffective in Singapore. It is important to ensure that any marketing done is communicated clearly in a way that Singapore consumers will understand. Official Endorsement: Singapore consumers have a strong trust in government bodies. Official endorsements such as the Healthier Choice mark, which is given to products by the Singapore Health Promotion Board, is recognised by around 70 percent of the population.

 Local Community: Singaporeans tend to prefer marketing campaigns that feature local celebrities and people. In the past, there have also been strong negative responses to products and brands that feature non-Singaporeans in marketing.

 Product Control: It is recommended that companies maintain some control over the way that their products are marketed and sold. Local partners in Singapore may interpret product and brands that they are not familiar with in a way that can affect the success of the product.

FMCG companies SINGAPORE

1. HORIZON ASIA RESOURCES PTE LTD

 A leading supplier of FMCG products worldwide  Horizon Asia Resources had traded over one thousand products mostly of international recognized brands.  "Striving to be the top International solutions provider for parallel trade”.  Horizon Asia Resources is highly accepted and overwhelm by companies worldwide  We succeed because, "We Support Fair Trade, and Counter Monopolization".

2. DKSH SINGAPORE PTE LTD.

It cover all activities from ordering the product from the manufacturer and handling it after its physical arrival in Singapore up to delivery to the retail shop. We then support the sale of the product through executing media and trade marketing activities, merchandising, and in-store promotions.

DKSH Singapore is the preferred outsourcing partner for manufacturers and brand owners, small or large, world class or local, for fast moving consumer goods. We mainly cater to packaged, dry products, broadly categorized into

1. Food and confectionary 2. Personal care 3. Consumer health 4. Household goods

3. BIGBAZAAR.SG - Singapore

Importer, Exporter, wholesaler and distributor of all kinds of foodstuff, Beverages and related products.

PESTEL framework of singapore

Political and social environment Singapore is known for its stable political climate. Despite being considered centralized and authoritarian, the political culture is pragmatic, rational and based on the rule of law. The highest goal of the government is the survival and prosperity of this small nation. This often means, having to make unpopular but hard and wise decisions in the interest of the nation. The government believes in being pro-active and thinking for the future. Although many Singaporeans refer to the current ruling party PAP (People’s Action Party) as ‘Pay and Pay’, it is the PAP’s governance and intellectual policy decisions that has contributed to Singapore’s political stability, social harmony and economic prosperity. Infrastructure and conditions for investment, including ensuring the rule of law, were put in place.

According to Singapore’s founding father , Singapore has been able to attract some 9000 multi-national companies, because it offers First World conditions in a Third World region. Good governance is having a good system that will ensure the country survives, so that citizens have secure lives. In 2012, the Political and Economic Risk Consultancy ranked Singapore #1 for having the best bureaucracy in Asia. The World Economic Forum’s ‘2011 – 2012 Global Competitiveness Report’ also reaffirms that Singapore has the highest public trust of politicians and the least burden of government regulation. According to corruption watch-dog Transparency International’s ‘2010 Corruption Perceptions Index’, Singapore is perceived to be the least corrupt nation in the world.

Economic environment Singapore boasts of a competitive, corruption-free, open business environment. The is one of the busiest in the world as the country focuses on electronics and chemical exports to richer industrialised nations. However, over the years, Singapore has diversified its economy and today it has become a research & development hub, bio-medical hub, banking and finance center and in recent times the health-care destination of Asia. Today, Singapore is a knowledge-based economy and attracts multinational investments. Its open trade policies, social stability, world-class infrastructure and international communication links, are some of the reasons why foreign investors flock its shores. This is despite the fact that land and labour costs have risen sharply and employers have to pay a sizable portion of their employees’ salary to their . Singapore is the second most competitive economy in the world according to the World Economic Forum’s ‘Global Competitiveness Report 2011-2012. According to the Heritage Foundation’s ‘2012 Index of Economic Freedom’ Singapore is the second freest economy in the world. The country is also known for its low tax regime. In Singapore, personal rates start from 0% and are capped at 20% for residents while non-residents are taxed at a flat rate of 15%. The corporate income tax rate in Singapore is approximately 8.5% for profits up to S$300,000 and a flat 17% above S$300,000. The GST or VAT rate is only 7%. Furthermore, there is no , no estate duty, and no .

According to a report by financial advisory firm, Ernst & Young and the Japan External Trade Organisation, Singapore was found to be one of Asia’s best investment destinations for foreign firms. It has benefited from these firms, as they bring in capital, technology, management know-how and access to international export markets. Singapore has also realised the need to enhance its manpower and encourages top foreign talent to re-locate here. Hence the labour force is highly educated, competent and skilled. The country has consistently topped the World Bank’s ‘Doing Business’ survey for the past six years in a row and it was accorded the top spot in BERI’s ‘2011 Labour Force Evaluation Measure’.

Socio-cultural environment Singapore’s social and ethnic fabric is a unique blend of cultures and people – Malays, Chinese, Indians and expats from various countries. Singapore’s lifestyle is multi-cultural with each of these ethnic communities maintaining their unique way of life and at the same time living harmoniously. Singapore’s society is cosmopolitan due to the influx of foreigners in recent times. Along with it comes an openness towards people and respect for all. People are amiable and courteous to each other. High emphasis is placed on communal and racial harmony. Singaporeans are honest, highly disciplined and extremely hard-working. There is respect for seniority, authority and social norms. While individualism is prominent, Singapore is a society that honours collectivism. Racism is taken seriously in the country. The Singapore government has laid down five basic ‘Shared Vales’ to develop a distinct Singapore identity – nation before community and society above self; family as the basic unit of society; community support and respect for the individual; consensus not conflict; racial and religious harmony.

Singapore is also known for its strict law enforcement procedures, for combating crime and other offences. While popular opinion holds that the country is extremely rigid and rule-bound – with heavy fines and caning as punishments – the legal framework has contributed to Singapore’s stability and security. Women can move about freely even late at night, without the fear of being harassed. There has been no instance of mass shooting, serial killing, terrorist bomb attacks or civil unrest. Expatriates continue to cite safety as one of the most attractive features of living in Singapore. Singapore is the twelfth best country in the world for expat life experience according to HSBC’s ‘2010 Expat Experience Report’. Gallup’s ‘2010 Potential Net Migration Index’ unveils Singapore as the world’s most favored immigration destination. The country ranked #8 in the world for personal safety in Mercer’s ‘2011 Quality of Living Rankings’ and is the #1 place for Asian expats according to ECA International’s ‘2010 Location Ratings System’..

Access to Consumer goods Singapore’s retail sector experiences brisk trading conditions practically all year round. With an increase in disposable income, housing boom and aggressive retail promotion, people spend on luxury items, automotive and household items like furniture and other consumer durables. Hence, every retailer is setting up shop in Singapore. According to the 1990 national census ‘window shopping’ was the number one leisure activity. Both Fast Moving Consumer Goods (packaged food, cosmetics, toiletries, household products etc.), and luxury brands are easily available. Many consumer durables have become basic necessities in Singapore. By the year 2003, most households had a television (98%), refrigerator (99%), hand- phone (89%), air-conditioner (72%), and a computer (70%). Time saving household appliances like washing machines (93%), microwaves and vacuum cleaners have also become common. Even for higher priced durables like a piano, organ or a car, ownership is fairly prevalent.

Hyper-marts like Carrefour and Giants are a one stop shop where everything is available under one roof. Super markets like Cold Storage (popular with the expats), NTUC Fair Price (co-operative supermarket chain), Shop & Save have several outlets that dot the island. Most of these supermarkets offer promotions and discounts and also stock basic Mexican, Australian and Indian products. This apart, there are convenient stores like 7-Eleven and small local grocery shops near the housing estates. You wold also find speciality supermarkets like Media-Ya (Japanese products and sea food), Tanglin Market Place (American products), Tierney’s (Scandinavian, Swiss and German products) and Mustafa (Indian products). Heat-and-serve meals, semi prepared food, frozen food, western-type convenience foods are gaining importance. Low fat foods, diet beverages, yogurt, fruits and other health foods are also becoming popular. Since Singapore imports every possible item from every corner of the globe, the choice is wide and prices are competitive.

Positive Factors

 Easy country to adjust to when relocating from elsewhere

 Modern, westernized environment

 Scores high on safety and low crime rates

 Wide use of English is appreciated and attracts foreigners

 High quality transport, infrastructure and health facilities

 Readily available and affordable domestic help

 Clean, green and healthy environment to live in

Negative Factors

 Limited sports/recreation options

 Rule-bound and sometimes stifling

 Expensive to own a car

 No change in climate which is hot and humid most of the time

 Can be difficult to mix easily with the locals

According to a survey conducted by the PERC, Singapore’s most negative features are: the high cost of living; lack of sports facilities and limited forms of entertainment. ingapore’s most attractive features are: safety; cleanliness; efficiency. All in all, Singapore is one of the best cities to work, live and play. Singapore’s trade Indicators and India’s Trade Indicators and Statistics at a Glance (2010) statistics at a Glance (2010) Current Account Balance: Total value of exports: US$351.2 US$181.7 billion or 4.9% of GDP billion

Primary exports: petroleum (16.6%), Primary exports - commodities: gems and jewelry (13.8%), transport machinery and equipment (including equipment (7.6%), machinery (4.9%), electronics), consumer goods, drugs and pharmaceuticals (4.3%) pharmaceuticals and other chemicals, mineral fuels Primary exports partners: UAE (12.4%), (10.4%), Primary exports partners: Hong China (7.9%), Singapore (4.0%), Kong (11.6 percent of total exports), Hong Kong (3.9%) Malaysia (11.5 percent), US (11.2 percent), Indonesia (9.7 percent), Primary imports: petroleum and China (9.7 percent), Japan (4.6 crude products (29.6%), gold (8.6%), percent) precious stones (7.94%), machinery (6.7%), electronics (6.3%) Total value of imports: US$310.4 billion Primary imports partners: China (12.0%), UAE (7.6%), Primary imports - commodities: (5.9%), Switzerland (5.5%), United machinery and equipment, mineral States (5.3%) fuels, chemicals, foodstuffs, consumer goods

Primary imports partners: US (14.7 of total imports), Malaysia (11.6 percent), China (10.5 percent), Japan (7.6 percent), Indonesia (5.8 percent), South Korea (5.7 percent)

Trade in Singapore

Singapore is the 14th largest exporter and the 15th largest importer in the world. Historically, international trade has strongly influenced the economy. According to the WTO, Singapore has the highest trade to GDP ratio in the world at 407.9 percent. Due to its geostrategic location and developed port facilities, a large volume of Singapore's merchandise exports involve entrepôt trade – with 47 percent of exports consisting of re-exports.

Singapore trade barriers As a strong advocate of free trade, Singapore has relatively few trade barriers. Trade partners with (MFN) have zero rates applied to their products apart from six lines for alcoholic beverages. There are however some import restrictions based mainly on environmental, health, and public security concerns. The import of rice also requires import licensing in order to ensure food security and price stability.

Changes in the world between the 20th century and the 21st century that affect the FMCG industry

The year 2000 roughly marks the watershed between 2 eras in the evolution of the FMCG industry. Several things have changed between the 2 eras:

1. Some retailers are now as big, or bigger than many FMCG companies, nullifying the FMCG companies' economies of scale advantage. Prior to the 1990s, retailers were much smaller than FMCG companies. This meant that FMCG companies were much larger than retailers, and hence FMCG company produced products would inevitably have a cost advantage to private label / store manufactured products. However the size and scale of retailers today allow them to commission private label manufacturing for products (whose technology is available to private label manufacturers) on a scale as large as the major FMCG manufacturers.

2. It is harder for FMCG companies to sustain a technological edge and build brand value, because chemical and materials technology have moved to the upper end of the technology innovation S-curve. The last century was a period when chemical, materials and industrial technology were starting to evolve rapidly, and new industrial technologies brought us innovations like the washing machine, rice cooker, and other home appliances. During this time, well managed brands that communicated capability were a source of competitive advantage. It was also difficult for competitors and upstarts to manufacture the products because technology know-how was not widespread. They did not have the know- how (e.g. advanced detergents, shampoos etc) or scale to manufacture effectively.

However, technology progress in chemical, materials and personal/household technology is now entering the upper end of the S-curve. While technology advances continue at a rapid pace, fewer of these advances are "paradigm changing". People are no longer experiencing "shock and awe" at new products coming onto the market, and are generally able to understand new FMCG products. There are also fewer radical advances in categories; for example, in many cases, the difference between a good detergent and a cutting edge detergent is not dramatic. The result is that the value of brands deteriorates for capability driven brands, and makes it hard for consumers to differentiate one product from another. The widespread availability of manufacturing and technology know-how also makes it easier for upstart competitors to manufacture functionally near-equivalent products. The result is that many categories of FMCG goods are in danger of being commoditized.

3. The mindset and norms of people brought up in the Information Age reduces the value of brands. The generation that grew up in the information age is culturally different from the generations before. Compared to the past, when information was harder to come by, people are now used to looking for information on product attributes and sharing product reviews. Information is freely available and the new generation is mentally predisposed to looking for information. The value of brands as a signaling mechanism is reduced. For example, observe how the online jeweler Blue Nile has been able to build a large customer base relatively quickly. In the past, it would have been unthinkable for consumers to buy thousand dollar pieces of jewelery over the phone, much less over the Internet. High value purchases of such hard-to-assess products would only be done at trusted jewelry stores.

INDO-SINGAPORE ECONOMIC RELATIONSHIP

Singapore is considered to be the India's largest trading and investment partners in Association of South East Asian Nations. A close relationship between the two nations in recent years has given birth a dramatic growth in bilateral trade and investment linkages. A capital surplus economy like Singapore has become a good partner in India's step towards infrastructure investments, technological progress and enhancement of export markets.

For enhancing the relationship between the two nations, India-Singapore Joint Study Group (JSG) in 2002 was set up to look into the possibility of concluding a Comprehensive Economic Cooperation Agreement (CECA) between the two countries. The JSG in its report identified areas of increased economic engagement between the two countries and also recommended measures to be taken. Keeping the report of the JSG as a basis, negotiations between the two governments have commenced.

The major exportable items of India to Singapore in the year 2003 were Crude petroleum, Refined Motor spirit, Petroleum oils, Polished diamonds for jewellery, Polished industrial diamonds, articles of Jewellery, Aluminum Unwrought, Aluminium sheets, Parts & accessories of computers, Synthetic fabrics, Silk fabrics, Embroidery/Table linen of Man Made Fibres, Combed cotton, Knitted T-shirts, Vests, Benzene, Dyes, Acids, Insecticides, Fungicides, Household articles of stainless steel, Corrugated products of iron and steel, Forged/stamped articles of iron and steel, Bars and Rods of iron steel, Parts of Boring or Sinking machinery, X-ray tubes, Medical Surgical Dental or Veterinary instruments/ appliances, Penicillin, Rice, Sugar, Cashew nuts, Essential oil, Crabs live/dried, Fish (fresh/chilled/dried), Titanium ore, Menthol, Diesel/semi-diesel generating sets, Static converters, Valves/Taps Cocks for Pipes, Boilers, tanks etc, Bus/lorry tyres, Tobacco.

The major importable items of India from Singapore in 2003 were parts and accessories of Computers and Computer peripherals, Integrated Circuits, Cellular phones, CD Roms, Styrene, P-Xylene, O-Xylene, Polypropylene, Vinyl Acetate, Topped Crudes, Parts of boring and sinking machinery. Nickel, Tin (unwrought), lead (unwrought) Aluminium (unwrought) Zinc (unwrought), Waste & scrap of Iron and steel, Photographic chemicals, Sewing Machines, Ball/Roller bearings, Parts for bulldozers, Parts of Aero planes/Helicopters, Parts for Audio/Video recorders, Medical instruments and appliances, parts of cellular phones, parts of motor vehicles, Cigarettes, pigments, Parts of Cathode Ray Tubes, Auto parts, parts for electrical Machines & apparatus. These items in value terms constitute over 60 % of India's imports from Singapore.

Total trade between India and Singapore has been steadily increasing since 1999. The trade between India and Singapore increased by 3.22% (in 2001), to S$ 6.88 billion, and decreased by 1.16% (in 2002). By comparing the trade figures of 2003 with 2002, it is seen that total trade has gone up by 16.20%. India's Imports from Singapore have increased by 14.22% and exports to Singapore by 21.25%.

Most of Singapore's exports to India consist of re-exports, which constitutes slightly over 50% of Singapore's exports to India.

Over a period of 5 years India's imports from Singapore have increased by 26.88 %, whereas, during the same period India's exports to Singapore have increased by 100.8 %.

THE KEY ECONOMIC INDICATORS

The economic growth story in the economy is very fast and sustaining. The (GNI) of the economy has reached at current US $ 105.0 billion (Atlas method) in the year 2004. The GNI percapita has reached at current US $ 24,220.0 in the same year.

The value of Gross Domestic Product (GDP) has reached at current US $ 106.8 billion in the year 2004.

The average annual growth rate of GDP between 1965-1999 was at 8.6 percent. Real per capita GDP rose about eight-fold, from around S$4000 in 1965 to over S$32,000 in 1999. Singapore's economic performance compares better with that of the OECD countries over the same period, with GDP growth more than twice the OECD growth of 3.3%. In the year 2003 the growth rate was declined to 2.5 percent and further increased to 8.4 percent to the year 2004.

The balance of trade has remained in favour of Singapore since 1999 but it is more or less fixed for the last five years in value terms (in S $). Indian exports to Singapore have been steadily increasing, growing in S$ terms by 48.8% (2000), 7.52% (2001) and 3.5% (2002), and 21.25% (2003).

Investment

Singapore has emerged amongst the top foreign investors in India. During the period January 1991 to May 2003, approvals for Foreign Direct Investment from Singapore to India (excluding NRI and euro issues/portfolio investment) amounted to Rs.53 billion (approx USD 1.2 billion,).

Some of the Government-Linked Corporations (GLCs) of Singapore's projects include Ascendas' Information Technology Park in Bangalore.The Government of Singapore Investment Corporation (GIC) has registered itself in India as an Financial Institutional Investors, and has committed Rs. 119 million in HDFC Ltd. Instead of investing in other stocks and equities.

SUMMARY OF HEALTHCARE SECTOR OF SINGAPORE

HEALTH CARE IN SINGAPORE

Singapore is one of the most popular holiday destinations of the East. Medical tourism has added another dimension to its tourism popularity. It has been heralded as a centre of medical excellence and has been a meeting place for medical professionals for conferences and training.

Popularity as a medical hub: Singapore’s Ministry of Health has been a tome of support for medical tourism in the country. In 2000, the World Health Organization listed Singapore as having the sixth best healthcare system in the world. Eleven hospitals in Singapore have acquired Joint Commission International (JCI) accreditation and quite a few of them are ISO-9001-2000 certified as well. This speaks volumes about the high degree of medical excellence and safety level of treatments in Singapore.

Lower cost of treatment: Medical travelers taking advantage of excellently trained and certified physicians in countries like India, Singapore and Thailand may enjoy huge cost savings. For example, angioplasty procedures in India generally cost around $11,000, while the same procedures cost around $13,000 in Singapore.

Travel and stay: The Changing International Airport has a good network of flights connecting some 180 countries across the globe. The Singapore Tourism Board (STB) has been instrumental in promoting medical tourism. It aims at developing specific services for medical travelers. The Singapore has some of the best hotels in the world. You could plan for a stay in one of those or just check-in to a less-expensive hotel which fits your budget better.

A medical tourist in Singapore has an option of recuperating with a splendid post- surgical vacation in Singapore. The excellent medical service and a rejuvenating holiday ensure a safe and refreshing journey to your home land.

HEALTH CARE POLICY IN SINGAPORE

Singapore’s healthcare system comprises public and private healthcare, complemented by rising standards of living, housing, education, medical services, safe water supply and sanitation, and preventive medicine. Over the years, MOH(ministry of health) has followed the principle of ensuring that good and affordable basic medical services are available to all Singaporeans. We have been continuously fine-tuning our system to ensure we are always aligned with this principle and developed our healthcare system into one that has received praise and recognition both locally and internationally. Singapore healthcare begins with building a healthy population through preventive healthcare programmers and promoting a healthy lifestyle. Good, affordable basic healthcare is available to Singaporeans through subsidized medical services at public hospitals and clinics. Our hospitals and healthcare system will never withhold help to a Singaporean because of financial limitations. Yet our philosophy promotes individual responsibility towards healthy living and medical expenses

Primary Healthcare Primary health care includes preventive healthcare and health education. Private practitioners provide 80% of primary healthcare services while government polyclinics provide the remaining 20%. However, public hospitals provide 80% of the more costly hospital care with the remaining 20% by private hospital care. Our island network of 18 outpatient polyclinics and some 2,000 private medical practitioner's clinics provides our primary health care services. Each polyclinic is an affordable subsidized one-stop health center, providing outpatient medical care, follow-up of patients discharged from hospitals, immunization, health screening and education, investigative facilities and pharmacy services. The needy elderly receive further help through the Community Health Assist Scheme (CHAS). CHAS is most helpful for those who cannot travel to polyclinics.

Hospital Care Our 7 public hospitals comprise 5 general hospitals, a women's and children's hospital and a psychiatry hospital. The general hospitals provide inpatient and specialist outpatient services, an 24-hour emergency department. 75% of public hospital beds are heavily subsidized. There are also 6 national specialty centers for cancer, cardiac, eye, skin, neuroscience and dental care. CONCLUSIONS

Our research & overall study on the medical tourism of India brings us with following highlights of conclusion:

 India is very well known and amongst the top rankers in the field of medical tourism around the world.

 The medical treatment package price in India is 35% to 40% lesser than the treatment cost in USA or Thailand or Singapore.

 India plays key roles & ensures that India uses its strength in medical field to get global financial benefits.

 Singapore healthcare begins with building a healthy population through preventive healthcare programmers and promoting a healthy lifestyle.

 Though they find medical treatments US, Singapore & certain other parts of the world feasible, but when the services of such country hospitals, their costs, their doctors are compared to that of India, Indian medical services are found much far ahead of those of US & other countries of the world in all aspects.

 We plan to make tie-ups with hospitals like Shelby for knee replacement, which is one of the most well-known hospitals of India for organ replacements.

 We plan to focus for tie-ups with the few best existing hospitals of Gujarat &especially

 Ahmedabad for providing medical services by inviting Singapore residents here & giving them the best possible service.

SUMMARY OF INSURANCE SECTOR OF SINGAPORE

INSURANCE INDUSTRY IN SINGAPORE

The Insurance sector in Singapore is one of the most open Insurance markets in the world. In 2000, the market was opened to foreign investors and the 49% limit on foreign shareholdings was removed. The Monetary Authority of Singapore is responsible for the development, supervision and regulation of the insurance industry.

 Market Structure

In Singapore, there are 153 registered insurers, 12 in direct life insurers, 39 direct general insurers, 40 reinsurers and 51 captive insurers .Nearly 75 per cent of the life and non- life companies insurance are Multi National Companies.

 Developments in the Industry

The Singapore Insurance Industry has overcome the financial crisis in Asia in 1999.Standard and Poor's one of the leading rating agencies in the world has given a positive rating for the Insurance sector in Singapore.

SINGAPORE INSURANCE STRUCTURE

 STRUCTURE

An insurer should adopt a risk management structure that is commensurate with its size and nature of its activities. The organizational structure should facilitate effective management oversight and execution of risk management and control processes.

The Board of Directors is ultimately responsible for the sound and prudent management of an insurer. The Board should approve the risk management strategy and risk policies pertaining to core insurance activities. It should ensure that adequate resources, expertise and support are provided for the effective implementation of the insurer’s risk management strategy, policies and procedures. It should also be the approving authority for changes and exceptions to such policies.

The senior management, or a committee comprising members of senior management from both the business operations and control functions, should oversee the risk management framework. The framework should cover areas such as approval of business and risk strategy, review of the risk profile, implementation of risk policies approved by the Board, delegation of authority and evaluation of the business processes. There should be adequate measures to address potential conflicts of interest. For example, the member of senior management approving the base premium rate of a life insurance product should not have marketing responsibilities and there should be proper segregation of underwriting responsibilities from claims handling and settlement responsibilities. Claims should be reported directly to the Claims Department instead of through the Underwriting Department. The insurer should establish a risk management function, preferably independent from the operational processes, if warranted by the size and complexity of its operations. This function would be primarily responsible for the development of and ensuring compliance with the insurer’s risk management policies and procedures. In order to be effective, this function should have the requisite authority, sufficient resources and be able to raise issues directly to the Board or relevant Board Committee.

Players in Insurance sector in Singapore

Life Insurance Companies in Singapore

 Aviva Insurance

Aviva is the world’s fifth largest* insurance group, serving 50 million customers across Europe, North America and Asia Pacific. Aviva began serving the Singapore market with the July 2001 acquisition of Insurance Corporation of Singapore.

 Manu life Insurance

Manulife Financial is a leading Canadian based company, operating worldwide, offering a diverse range of financial protection, products and wealth management services.

 AXA Life Singapore

AXA is a French global insurance companies group headquartered in Paris. The AXA group of companies is engaged in life, health and other forms of insurance, as well as investment management. The AXA Group encompasses five operating business segments: Life & Savings, Property & Casualty, International Insurance (including reinsurance), Asset Management and Other Financial Services.

 HSBC Insurance

HSBC Insurance (Singapore) Pte Ltd is a wholly owned subsidiary of HSBC Insurance (Asia Pacific) Holdings Limited. HSBC Group is one of the world's largest banking and financial services organizations, with major personal, commercial, corporate and investment banking and insurance businesses operating in some 10,000 offices in 82 countries and territories in Europe, the Asia Pacific region, the Americas, the Middle East and Africa.

Non-Life Insurance Companies in Singapore

 American Home Insurance

American Home Assurance Company Singapore Branch (AHA), an AIG company, is one of the leading providers of consumer and commercial insurance in Singapore, with more than S$402 million in gross written premiums. They have existed in Singapore since 1953.  Mitsui Sumitomo Insurance

Mitsui Sumitomo Insurance (MSI) is the parent company in Japan, while its Singapore arm is MSIG .It has been in corporate insurance for more than 100 years. The main objective of MSIG is to bring security and safety to the people and businesses of Singapore.

 Ace Insurance

ACE Insurance Limited is a member of the ACE Group of Companies®, one of the leading global providers of insurance and reinsurance. The ACE Group provides a diversified range of products and services to clients through operations in more than 50 countries around the world.

Prudential in Singapore

Prudential plc is a multinational life insurance and financial services company headquartered in London, .

Prudential's largest division is Prudential Corporation Asia, which has over 15 million customers across 12 Asian markets and is a top-three provider of life insurance in , Hong Kong, India, Indonesia, Malaysia, Singapore, the Philippines and . Its Prudential UK division has around 7 million customers and is a leading provider of life insurance and pensions in the UK. Prudential also owns Jackson National Life Insurance Company, which is one of the largest life insurance providers in the United States, and M&G Investments, a Europe-focused fund manager with total assets under management of £203 billion at 30 June 2011.

Prudential has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalization of approximately £15.9 billion as of 23 December 2011, making it the 25th-largest company on the London Stock Exchange. Prudential has secondary listings on the Hong Kong Stock Exchange, New York Stock Exchange and .

History

1848 to 2000

The Company was founded on 30 May 1848 in Hatton Garden in London as the Prudential Mutual Assurance Investment and Loan Association providing loans to professional and working people.

In 1854 the Company began selling the relatively new concept of industrial branch insurance policies to the working class population for premiums as low as one penny through agents acting as door to door salesmen. The army of premium collection agents was for many years identified with the Prudential as the "Man from the Pru".

It moved to its traditional home at Hol born Bars in 1879 and converted to a limited company in 1881. The building was designed by Alfred Waterhouse, and is built of terracotta manufactured by Gibbs and Canning Limited of Tamworth (c.1878)—two of the same driving forces behind the Natural History Museum in London.

The Company was first listed on the London Stock Exchange in 1924. In 1997 Prudential acquired Scottish Amicable, a business originally founded in 1826 in Glasgow as the West of Scotland Life Insurance Company, for $1.75bn.

In 1998 Prudential set up Egg, an internet bank within the UK. The subsidiary reached 550,000 customers within nine months but had difficulty achieving profitability. In June 2000 an initial public offering of 21% was made to allow for further growth of the internet business but in February 2006 Prudential decided to repurchase the 21% share of Egg. Egg was subsequently sold to Citibank in January 2007.

In 1999, M&G, a UK fund management company, was acquired.

In June 2000 the Company was first listed on the New York Stock Exchange to help focus on the US market.

2000 to present

In October 2004 Prudential launched a new subsidiary, Pru Health, a joint venture with Discovery Holdings of selling Private Medical Insurance to the UK market.

In April 2008 Prudential outsourced its back office functions to Capita: about 3,000 jobs were transferred (1,000 in Stirling, 750 in Reading and 1,250 in Mumbai). This significant outsourcing deal, worth an estimated £722m over a 15 year contract, built on Prudential's existing relationship with Capita who took over its Belfast operation in 2006 along with approximately 450 employees in a smaller operational restructure.

On 7 April 2009, it was announced that Prudential was in talks with Manchester United regarding becoming the English football giant's shirt sponsor in 2010. However, on 3 June 2009, Manchester United announced that it had signed a four year shirt sponsorship deal with American insurance giant, Aon Corporation. On 1 March 2010, Prudential announced that it was in "advanced talks" to purchase the pan-Asian life insurance company of AIG, American International Assurance (AIA) for approximately $35.5 billion. The deal later collapsed and AIA ended up raising money in an IPO.

Prudential Singapore, an indirect wholly-owned subsidiary of UK-based Prudential plc, is one of the top life insurance companies in Singapore. We are one of the market leaders in investment-linked plans with over S$7.38 billion funds managed under PruLink funds as at 31 December 2011. With a rich history that has spanned more than 80 years, Prudential Singapore now has a dedicated team of approximately 3,100 financial consultants and over 700 employees. We are committed to serving the needs of more than 680,000 policyholders with over 1.6 million policiesPrudential Singapore is the first life insurer in Singapore to be named Asia's Life Insurance Company of the Year in 2000. We were also presented with the Gold Award in Reader's Digest Trusted Brands for four consecutive years from 2007 to 2010 and the May Day Model Partnership Award in 2009. In 2010, we emerged as one of the top insurers in Singapore in the Customer Satisfaction Index, which is a national barometer that tracks 104 companies from eight sectors.

Prudential life insurance products

 Types of Life Insurance

An important part of a sound financial plan, life insurance from The Prudential Insurance Company of America and its affiliates provides a valuable death benefit to your beneficiaries upon your death. Your beneficiaries can then use this money to replace some of the income you would have earned or to help pay off debts or other expenses.

The two types of life insurance are term and permanent. The one that's right for you depends on many factors, including your budget, the amount of coverage you need, and the length of time you'd like the coverage to last.

 Term Life Insurance

Term policies issued by Pruco Life Insurance Company can help meet a wide variety of business and personal needs and often provide the most coverage for your premium dollar for set periods of time. Whether you want to supplement your existing coverage or simply purchase insurance to meet a specific need, our term policies have the flexibility to help meet your needs. Learn more about our term life insurance policies.

 Permanent Life Insurance

Permanent policies can provide protection. There are several different types of permanent policies:

 Universal Life Insurance

Universal life insurance can help meet the needs of people who desire long-term death benefit protection with a flexible premium structure. Learn more about our products with a potential to accumulate non-guaranteed tax-deferred cash value.

 Variable Life Insurance

Variable life insurance offers a choice of death benefit options and a potential to accumulate non-guaranteed tax-deferred cash value that fluctuates based on the performance of underlying investment options that you choose.

 Survivorship Life Insurance

Survivorship (second-to-die) life insurance insures two people and pays the death benefit when both have died. It is used primarily for wealth preservation.

SUMMARY OF TEXTILE SECTOR OF SINGAPORE

Singapore A Textile Gateway

Singapore has become a major sourcing hub and headquarters site for companies in the textile and apparel industry. The Republic of Singapore — whose name means "Lion City" — is situated off the southern tip of the Malay Peninsula in Southeast Asia and comprises Singapore Island and 60 islets. The British established Singapore as a trading colony in 1819. It became a part of the Federation of Malaysia in 1963, but it left the federation in 1965 to become an independent nation and now is among the world's most prosperous countries. It holds a strong position in international trade, and its per capita gross domestic product is comparable to that of Western Europe's leading nations. One of the most densely populated countries globally, Singapore ranks fourth worldwide as a financial center, according to the City of London's Global Financial Centres Index 7.

Textile and Apparel Industry

Manufacturing, distribution and retail are the main activities within Singapore's textile and apparel industry. According to 2008 data from Singapore's Department of Statistics, Economic Development Board and SPRING Singapore — a government agency that implements programs to support the country's textile and apparel sector — the textile and apparel industry comprises 4,818 establishments, of which in that year 4,212 were wholesalers and retailers and 606 were manufacturers. In 2008, sales totaled approximately US$6.9 billion and manufacturing output was worth approximately US$700 million. In 2008, the industry employed 27,378 people. Singapore's textile and apparel manufacturers export their products primarily to the U.S. and European markets, and are some of the largest suppliers to brands such as Nike and Gap and department stores such as Macy's.

The Textile and Fashion Federation Singapore — established in 1981 through a coalition of textile and apparel associations — with cooperation from International and SPRING Singapore, launched Apparel Singapore in July 2008 as a brand to represent a group of major Singapore apparel manufacturers in their strategic and global marketing efforts. The brand comprises member companies — also known as brand ambassadors, which include established, successful Singapore-based apparel manufacturers that also operate production facilities in nearly 20 countries. Apparel Singapore promotes the capabilities, manufacturing services, offerings and competitiveness of the country's apparel manufacturers to the global market with the goal of increasing the industry's production.

"Not many people know that the largest suppliers for international brands like Nike, Macy's and GAP are actually apparel manufacturers based in Singapore," said Lim Hng Kiang, minister for trade and industry, in remarks made at the official launching ceremony of Apparel Singapore. "They have been able to ride the wave of globalization by offering an integrated global sourcing solution to established global retailers and buyers. Our [textile and apparel] companies have been able to provide flexibility and customization of service offerings to these global customers by leveraging on the cost-effective manufacturing locations in China, Southeast Asia and South Asia, and basing their headquarter functions in Singapore."

Sourcing Hub And Headquarters Site Singapore ranks second in size after Hong Kong as a textile and apparel business and sourcing hub in the Asia-Pacific region, with a total estimated sourcing volume through the country of approximately SGD$2.5 billion to SGD$3 billion, according to SPRING Singapore. The Port of Singapore is the largest port in Southeast Asia and currently the world's busiest port in terms of total shipping tonnage. It is a critical port for the many textile- manufacturing countries surrounding it.

With its stable government and Western business practices, and because international brands demand suppliers' compliance with high standards, Singapore has become an attractive location for textile distributors to set up headquarters activities. The World Bank Group's Doing Business Project, which evaluates business regulations and their enforcement across 183 economies and selected cities worldwide, ranked Singapore number one in the overall "Ease of Doing Business" category in its 2011 report.

This is the fifth year the country has led the rankings’ number of textile dye and chemical suppliers have relocated their headquarters to the country. For example, in 2010, Switzerland- based textile dyes and chemical supplier Clariant International Ltd. moved its Textile Chemicals Business Unit headquarters from Reinach, Switzerland, to Singapore. "Singapore is the optimum location from which to service the key global textile markets across India, China and South East Asia," said Thomas Winkler, head of Clariant's Textile Chemicals Business Unit.

Huntsman Textile Effects — a manufacturer of chemicals and dyes for finished textiles and materials, and a division of Huntsman Corp. — has relocated its headquarters from Basel, Switzerland, to Singapore. In announcing the move in 2009, Huntsman Textile Effects President Paul Hulme said: "Geographically, Singapore is an ideal location from which to serve the markets in China, India and Southeast Asia, but also allows us to continue to serve and grow our business in Europe and the Americas. Singapore was chosen from a number of possible locations, primarily because of its proximity to our key growth markets, the excellent international business environment encouraged by the Singapore Economic Development Board, and the availability of the high quality professionals that will be critical to the continued growth of our global business."

In 2008, -based chemical company BASF SE made Singapore the headquarters for its Performance Chemicals for Leather and Textiles global Business Unit; and in 2007, Wilmington, Del.-based DuPont Imaging Technologies opened a technology center in Singapore to support its DuPon Artistry digital printing system for textiles and to serve its customers in the Asia Pacific region.

Machinery Shipments

Because Singapore is more of a gateway for the textile industry than a manufacturing base, the country does not import much textile machinery. The 2008 and 2009 International Textile Machinery Shipment Statistics reports of the Switzerland-based International Textile Manufacturers Federation (ITMF) indicate that with the exception of a small number of circular knitting machines, little textile machinery has been exported to Singapore by respondents to its machinery shipment surveys.

The German Engineering Federation (VDMA) Textile Machinery Association also reports that Singapore is not a significant market for Germany's textile machinery exports. Total machinery exports to Singapore in 2009 were worth approximately 2.2 million Euros; and in the first three quarters of 2010, machinery exports were worth nearly 4 million Euros.

Nanotechnology

The Singapore Institute of Manufacturing Technology (SIMTech) — a research institute of Singapore's Agency for Science, Technology and Research (A*STAR) — recently launched the Nanotechnology in Manufacturing Initiative (NiMI) to explore new market opportunities in the global nanotechnology market, which is projected to be worth more than US$2.4 trillion by 2015 and is relevant to many textile applications. The initiative is supported by International Enterprise Singapore, Singapore Economic Development Board and SPRING Singapore. Thirteen companies are members of the initiative, including companies operating in the textile sector such as Pidilite Innovation Centre, a provider of adhesives and sealants, textile chemicals, organic pigment powders and industrial resins, among other products; Toray Industries Inc., a supplier of fibers and textiles and carbon fiber composite materials, among other products; and 3M, a supplier of tapes and adhesives, abrasives, flexible circuits, safety and security solutions, reflective film and other products for industrial, commercial and consumer applications.

Economic Structure of the country: One of Singapore’s pioneer industries since the national industrialisation action, which started over 40 years ago, is the textile and apparel industry. Today, in terms of sourcing volume the island ranks as the second largest textile and apparel business and sourcing hub in Asia- Pacific after Hong Kong. The estimated sourcing volume in total is about USD 2.5bn to USD 3bn. The retail sector consists of 2,408 apparel retailers who make $1.6 billion in sales.

In the last years, there has been a decrease in the domestic export of Singaporean textile and apparel. However, there is still optimism about the industry’s contribution into the islands economy. Though Singaporean companies have their production mostly outside the country, headquarters and main branches stay on the island. Furthermore, the industry has a multiplier effect on other supporting industries like logistics or banking.

2.2 BACKGROUND INFO FOR BUSINESS

Since many garment manufacturers moved their fabrication abroad, Singapore’s textile and apparel industry has converted to a regional fashion, sourcing and marketing hub. The Textile and Fashion Federation (TaFf), which is the successor of the textile and garment association for over 25 years, is supporting the industry to obtain and remain these targets. The objectives of TaFf are to support • Manufacturing: educate & provide regulations to encourage industry to safeguard • Marketing: issue the ASEAN region and beyond to Singapore textile & fashion apparel design • Sourcing: give information to local producers where in ASEAN and beyond to source for materials • Design: put up a platform for Singaporean designers and brands to exhibit & sell their designs

2.3 India Textile Industry

India Textile Industry is one of the leading textile industries in the world. Though was predominantly unorganized industry even a few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991. The opening up of economy gave the much-needed thrust to the Indian textile industry, which has now successfully become one of the largest in the world. India textile industry largely depends upon the textile manufacturing and export. It also plays a major role in the economy of the country. India earns about 27% of its total foreign exchange through textile exports. Further, the textile industry of India also contributes nearly 14% of the total industrial production of the country. It also contributes around 3% to the GDP of the country. India textile industry is also the largest in the country in terms of employment generation. It not only generates jobs in its own industry, but also opens up scopes for the other ancillary sectors. India textile industry currently generates employment to more than 35 million people. It is also estimated that, the industry will generate 12 million new jobs by the year 2010. 2.3.1 Various Categories

Indian textile industry can be divided into several segments, some of which can be listed as below:

1. Cotton Textiles 2. Silk Textiles 3. Woollen Textiles 4. Readymade Garments 5. Hand-crafted Textiles 6. Jute and Coir

India textile industry is one of the leading in the world. Currently it is estimated to be around US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. The current domestic market of textile in India is expected to be increased to US$ 60 billion by 2012 from the current US$ 34.6 billion. The textile export of the country was around US$ 19.14 billion in 2006-07, which saw a stiff rise to reach US$ 22.13 in 2007-08. The share of exports is also expected to increase from 4% to 7% within 2012. Following are area, production and productivity of cotton in India during the last six decades:

Strengths

 Vast textile production capacity  Large pool of skilled and cheap work force  Entrepreneurial skills  Efficient multi-fiber raw material manufacturing capacity  Large domestic market  Enormous export potential  Very low import content  Flexible textile manufacturing systems

Weaknesses

 Increased global competition in the post 2005 trade regime under WTO  Imports of cheap textiles from other Asian neighbours  Use of outdated manufacturing technology  Poor supply chain management  Huge unorganized and decentralized sector

High production cost with respect to other Asian competitors

CURRENT FACTS ON INDIA TEXTILE INDUSTRY  India retained its position as world’s second highest cotton producer.  Acreage under cotton reduced about 1% during 2008-09.  The productivity of cotton which was growing up over the years has decreased in 2008-09.  Substantial increase of Minimum Support Prices (MSPs).  Cotton exports couldn't pick up owing to disparity in domestic and international cotton prices.  Imports of cotton were limited to shortage in supply of Extra Long staple cottons.

Year Area in lakh hectares Production in lakh bales of 170 kgs Yield kgs per hectare

1950-51 56.48 30.62 92

1960-61 76.78 56.41 124

1970-71 76.05 47.63 106

1980-81 78.24 78.60 170

1990-91 74.39 117.00 267

2000-01 85.76 140.00 278

2001-02 87.30 158.00 308

2002-03 76.67 136.00 302

2003-04 76.30 179.00 399

2004-05 87.86 243.00 470

2005-06 86.77 244.00 478

2006-07 91.44 280.00 521

2007-08 94.39 315.00 567

2008-09 93.73 290.00 526

Cotton Exports from India Year Quantity (in lakh bales of 170 kgs) Value (in `/Crores)

1996-97 16.82 1655.00

1997-98 3.50 313.62

1998-99 1.01 86.72

1999-00 0.65 52.15

2000-01 0.60 51.43

2001-02 0.50 44.40

2002-03 0.83 66.31

2003-04 12.11 1089.15

2004-05 9.14 657.34

2005-06 47.00 3951.35

2006-07 58.00 5267.08

2007-08 85.00 8365.98

2008-09 50.00 N.A.

Year Quantity (in lakh bales of 170 kgs.) Value (` /Crores)

1996-97 0.30 56.42

1997-98 4.13 497.93

1998-99 7.87 772.64

1999-00 22.01 1967.92

2000-01 22.13 2029.18

2001-02 25.26 2150.01

2002-03 17.67 1789.92 2003-04 7.21 880.10

2004-05 12.17 1338.04

2005-06 5.00 695.77

2006-07 5.53 752.29

2007-08 6.50 986.33

2008-09 7.00 N.A.

SUMMARY OF TOURISM SECTOR OF SINGAPORE

Singapore Tourism Board

 Vision

To be a leading economic development agency in tourism, known for partnership, innovation and excellence.

 Mission

We champion tourism and build it into a key economic driver for Singapore

 Values  Integrity Do the Right Thing!  We are fair, honest and trustworthy, inspiring trust and confidence.  Team Succeed Together  United in purpose, we accomplish more together.  Courage 3D – Dare, Dream, Do!  We dare to dream, experiment and boldly execute our ideas.  Care Appreciate One Another  We respect, nurture and have compassion for one another. We care for ourselves and our community.  Passion Love it!  We are energetic and driven, believing in our purpose and loving what we do.  Fun It’s Our Attitude  We seize each day with enthusiasm. We are optimistic about our future.

Business Tourism and Government Policy

As the lead government agency for the business events sector in Singapore, the Bureau fulfills the following roles:

 Business Events Champion SECB aims to create, grow, and attract business events that reinforce Singapore’s reputation as a business and intellectual hub. In this regard, SCEB partner organizers and other government agencies to leverage our established strengths in key industries such as biomedical & healthcare, ICT & media, social, transport & security, lifestyle & cruise, environment & energy, infrastructure, business, trade & professional services, and futures.

 Global Marketer SECB engages in various marketing and promotional activities in order to entrench Singapore's position as a premier Business & MICE destination. We also provide marketing and publicity support for partners to reach their target audience regionally and internationally.

 Industry Developer SECB also works to create a vibrant Business & MICE environment with strong industry players, robust alliances, world-class infrastructure and an emerging pool of MICE talent. The Singapore Exhibition & Convention Bureau is a member of the Best Cities Global Alliance, the world’s first and only convention bureau alliance with eight partners in five continents.

For Singapore, and the Business Travel, Meetings, Incentives, Exhibitions and Conventions (BTMICE) sector, 2011 was a watershed year. A total of 3.1 million business travellers came, accounting for 27 per cent of all visitors to Singapore and approximately S$5.4 billion in tourism receipts. This translated into impressive growth rates of 19.2 per cent and 28.4 per cent respectively over 2009.

The number of meetings, incentives, conventions and exhibitions also surged, with attendance of some events reaching all-time highs. Aiding this growth were events such as the International Furniture Fair Singapore, BroadcastAsia 2010, Singapore International Water Week, the 77th Union of International Fairs Congress, Asia Pacific Maritime 2010 and Food and Hotel Asia 2010, all of which recorded double-digit increases in foreign attendance. There were also 108 new events, a 35 per cent increase in events over 2009. Some examples of which are Live!Singapore, MedTech 2010, RoboCup 2010 and Blueprint.

SECB (Singapore Exhibition and Convention Bureau) also actively bids for business events that are both significant and strategic towards achieving STB’s tourism goals. For the first time in its history of world congresses, the European-based International Federation of Freight Forwarders Association (FIATA) broke its rotation pattern and chose Singapore over the world’s top logistics country, Germany (Berlin), to host the 2013 World Logistics Congress. .As the world’s largest non-governmental organization in the field of transportation and logistics, FIATA will further strengthen Singapore’s position as a regional logistics hub. Winning this bid in 2010 was testament to the close working relationship between STB and our industry partners.

Medical Tourism and Government Policy

 Asia's Leading Medical Hub Singapore is Asia's leading medical hub, providing internationally accredited healthcare for patients. Built on a heritage of excellence, safety and trustworthiness, Singapore has come a long way to being the leading healthcare services hub in the region.

The hospitals and specialty center’s provide integrated focus in many specialty areas such as cardiology, ophthalmology and oncology. These specialty centres and hospitals also carry out research and development, leveraging the growing biomedical research and expertise in Singapore to develop new treatments. As Asia's multi- faceted medical hub, Singapore leads the region in attracting a growing number of international medical professionals and multinational healthcare/healthcare-related companies to establish headquarters train and share their expertise as well as conduct and host healthcare-related research, training and events.

 Excellent Basic & Clinical Research & development

Singapore medical advancements are propelled by the government strong to basic and clinical research and development. The establishment of bio polis, the S$500 million state of the art infrastructure for the life science, Has enabled Singapore to develop swiftly into a global biomedical sciences hub advancing human healthcare.

 Singapore Today

Tourism boards recently organized an Annual Tourism Industry Conference at the Suntec Exhibition and Convention Centre. The conference brought together experienced professionals from tourism industry in Singapore along with a famous name Horwath HTL Asia Pacific. As informed by Singapore Tourism Board, the discussion at conference rolled around the tremendous growth of Singapore tourism industry in recent years. It was reported that the tourist arrival has increased in Singapore to about 49 percent since 2009 with 11.6 million in 2010.

Singapore also showed a remarkable performance at recent World Economic Forum's Travel and Tourism Competitiveness Index 2011 by topping in Asia Pacific and acquiring 10th place among 130 countries. Mr. S Iswaran, Senior Minister of State for Trade and Industry expressed his views about Singapore tourism plans and its execution. He was more focused on sustainable tourism by attracting more quality tourism rather than quantity tourism. As revealed by Ms. Aw Kah Peng, Chief Executive, Singapore Tourism Board, Singapore is now aimed at attracting 12 to 13 million visitor arrivals in 2011.

Singapore Tourism Board also uncovered the new mobile technology App. Your Singapore Mobile Guide that would facilitate and help travelers wishing to visit Singapore. Conference also marked the presence of Horwath HTL Asia Pacific that plays a major role in appraisal of travelers in the Singapore.

 What's next: Targeting to 2015

The STB has launched its new target for tourism development until 2015. The STB, has done very well in promoting and developing Singaporean tourism to an excellent performance level

What about the future? The Singapore Tourism Board has been setting the target for the next decade. The target is created by realizing the new emerging powers such as China and India which both are potential markets for Singapore tourism, without ignoring the established market such as the neighbors, Europe, United States and Japan. The goal for the target is for tourism to remain a key contributor in the economy.

 The STB has identified three key foci, especially, to creating strengthening Singapore's position as (a) Leading convention and exhibition city in Asia with a strong and dynamic business environment. Since there are several convention cities such as Hong Kong, Singapore has always to consider them as competitors; (b) Developing Singapore as a leading Asian leisure destination by providing an enriching experience that is Uniquely Singapore; (c) Establishing Singapore as the services center of Asia - a place where visitors can enjoy quality services such as healthcare and education services.

Indicator 2004 2015 Tourism Receipts (SG $ 10 30 Billions) Visitors Arrivals (Million) 8 17 Tourism Employment 150,000 250,000 Source: STB

Tourism sector Performance

This tremendous growth is reflected across all sectors in Singapore’s tourism industry, with a multitude of diverse dining, retail, arts and entertainment options enriching Singapore’s rich and vibrant tourism offerings.

Singapore’s visibility on the world stage as an exciting, quality travel destination has also been enhanced through key events such as the Asia Fashion Exchange, World Gourmet Summit and Travel Rave as well as outstanding tourism infrastructure as seen in the Resorts World Sentosa and Marina Bay Sands Integrated Resorts, endearing itself to new and returning travelers alike. Tourist Arrivals in singapore

Tourist Arrivals in singapore

11.6

10.3 10.1 9.8 9.7

2006 2007 2008 2009 2010

Tourist arrivals in India 6

5

4

3 Tourist arrivals in India

2

1

0 2006 2007 2008 2009 2010

Hotels and Travel Trade in India

Category Till 15 dec 2010 Inbound Tour Operators 603 Travel Agents 467 Tourist Transport Operators 213 Domestic Tour Operators 67 Adventure Tour Operators 33 Total 1383 (Source: Ministry of Tourism, India)

Criteria Singapore’s Rank India’s Rank Safety and security 13 78 Tourism Infra. 33 89 Natural Resources 96 8 Health and Hygiene 55 112 Prioritization of Travel 2 91 and Tourism

(Source: UNWTO)

Marketing campaign in Singapore

The official website as approved by the ministry of Singapore for the marketing campaign for tourism is www.yoursingapore.com.This website reveals the full fledge information for the tourists travelling all over the world..

The information include

 The Attractions in Singapore  The hospitality facilities in Singapore  The Dining in Singapore  The Shopping in Singapore

So we can say that the marketing strategies and campaign’s are very user friendly because of the first time visitor to Singapore will not face any difficulties and will get all the information in a one platform only.

Singapore tourism board launches a new marketing campaign for India:

“The holiday, you take home with you”

Tuesday, March 27,2012 source: TRAVEL DAILY NEWS  Singapore Tourism Board (STB) unveiled its latest plan targeted at the India market. “The Holiday You Take Home with You”, the third in a series of customized and differentiated marketing campaigns, follows the previous campaigns in the adoption of a consumer-centric approach by tailoring its experiences based on a deeper understanding of the needs of Indian leisure travelers. The visitor-centricity is in line with Singapore’s destination brand, YourSingapore, which empowers visitors to personalize their unique Singapore experience according to their needs and wants.

Recognizing the unique, evolving needs of the India market

Through years of presence and in-market engagements held with Indian consumers, STB has deepened its understanding of the market and observed changes in their travel habits, needs and the way Indian travellers’ research and plan for their leisure trips.

Indian travellers today possess a more global worldview, and in-market interactions have uncovered Indian consumer’s preferences for families to travel and bond together through shared learning experiences. They seek much more out of their holidays and put priority on aspirational, engaging experiences that deliver quality and enrichment, and which suit their passions and interests at the same time. Many also research and plan their own Free and Independent Traveller (FIT) itineraries on the Internet, eager to try out new things.

Tailoring quality, enriching experiences for Indian travelers

At the same time, the tourism landscape in Singapore has undergone tremendous changes in recent years, with a myriad quality experiential and enriching activities, many of which appeal to Indian travellers. “The Holiday You Take Home with You” campaign, launched on 20 March in major cities including Mumbai, New Delhi and Bangalore, highlights Singapore’s tailored offerings which appeal to the Indian audience. The core of the campaign touches on four pillars of enriching experiences, namely Family Fun, Active Lifestyle, Culinary and Romance. Beyond the sights and sounds of Singapore, visitors can delve deeper into the wide range of activities from swimming with the dolphins, taking cooking classes on Peranakan cuisine to picking up a new skill like skydiving. Travelling partner- Thomas cook (India) Ltd.

For this unique campaign Singapore tourism has decided to select “Thomas cook” as the travelling partner. Mr. Madhavan Menon, Managing Director of Thomas Cook (India) Ltd said, “We are delighted to partner with Singapore Tourism Board on the launch of their new campaign, Singapore - The Holiday You Take Home with You. As pioneers of travel, with a vibrant heritage of over 130 years, this unique partnership with Singapore Tourism Board will bring to Indian travellers a truly enriching and experiential range of “Active Lifestyle” and “Family Fun” experiences. In keeping with our strong focus of innovation and exceptional customer service, our tie-up with Singapore Tourism Board, further enhances our unique and diverse customer centric product-service portfolio.”

Khushboo Gujarat ki

“Khusboo Gujarat ki” is a giant advertisement campaign done by the Gujarat tourism board under the leadership of honorable chief minister Mr. Narendra Modi…These campaign is specially done to explore the untapped resources of Gujarat in the field of tourism industry..This campaign is targeting the domestic tourists from all over India as well as international tourists form all over the world..and that is the only reason that the advertisement is being done in 2 languages i.e. Hindi and English…

Bollywood super star Mr. Amitabh Bacchan is the Brand Ambasaddor of Gujarat and is endorsing the same campaign…The Tourists destinations focused in the advertisement are..:

 The temple of Dwarka  The temple of Somnath  Rann of kutch  The wild life sanctuary of gir  Girnar mountain in Junagadh  Lothal region. . The great response is being seen from domestic as well as from international tourists in the recent festival in Kutch named “RANN UTSAV” because of the great advertisement campaign approx. 350 crore’s of fund is being invested as a part of this campaign by Gujarat Tourism Board. The punch line of this campaign is “kuch din to guzariye Gujarat mein”