1. Singapore's Economy Continues to Be Dominated by Manufacturing
Singapore WT/TPR/S/202/Rev.1 Page 73 IV. TRADE POLICIES BY SECTOR (1) INTRODUCTION 1. Singapore's economy continues to be dominated by manufacturing and services, which accounted for 24.1% and 65.9% of GDP, respectively, in 2007; ownership of dwellings (at 4.6%), construction (3.8%), and utilities (1.6%) made up the remainder. The Government seeks to maintain manufacturing at 20-25% of GDP, and has continued to encourage a move into high-value-added activities, primarily through the creation of supporting infrastructure and incentives. The sectoral clusters in manufacturing currently targeted are: electronics, chemicals, biomedical sciences (comprising the pharmaceutical, medical technology, biotechnology and healthcare service industries), and engineering (including precision and transport engineering). Electronics and chemicals form the main manufacturing activities in terms of output, with electronics accounting for a large share of total merchandise exports. Competition from low-cost producers in the region and Singapore's rising labour costs have resulted in a gradual shift away from labour-intensive to high-value-added capital-intensive activities in knowledge-based manufacturing and services sectors. Incentives are provided to encourage innovation by firms operating in Singapore. 2. Significant parts of the Singapore economy continue to be dominated by GLCs, which are involved in a wide range of areas including financial services, telecommunications and media, transportation and logistics, real estate, engineering, energy and resources, high-tech manufacturing, consumer and lifestyle industries, and the hospitality industry (see Table III.5). Temasek-linked companies, according to the Government, operate fully as for-profit commercial entities on the same basis as private companies.
[Show full text]