Singapore’s Trade Journey Workshop ontheSingle Window Modality andE-tradeandTheirRoleIn PromotingIntra-OICTrade Casablanca,KingdomofMorocco,9-10November2015 Jonathan Koh Senior Director, Trade Facilitation Centre of Excellence CrimsonLogic Pte Ltd All rights reserved. ‘CrimsonLogic’ and the Shell Device are trade marks of CrimsonLogic Pte Ltd. All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic. CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 1 ABOUT US CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 2 ABOUT CRIMSONLOGIC CrimsonLogic is a trusted partner to governments worldwide. We help governments design and run innovative and sustainable services to collaborate more seamlessly with their citizens and ecosystem. We work closely with our customers to continuously enhance the e-services, to drive adoption and usage of the e-services. Shareholders CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 3 ABOUT CRIMSONLOGIC Shareholders International Enterprise Singapore (A Statutory Board of Ministry of Trade & Industry, Singapore) PSA International Civil Aviation Authority of Singapore Singapore Telecoms (SingTel) CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 4 TRADE FACILITATION - OVERVIEW Since 1988, CrimsonLogic has successfully delivered trade facilitation solutions to more than 18 countries. We offer a comprehensive range of trade facilitation solutions, from designing and building systems that provide a high degree of agility, to operating these systems. Our international track: record and commitment to quality provide customers with the assurance of on-track: project delivery and achievement of key operation objectives. CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 5 TRADE FACILITATION SOLUTIONS CrimsonLogic Trade Facilitation Solutions Port Single Customs Free Trade Community Window Mgt Zone System System System System Subject Matter Expertise & Thought Leadership Execution Excellence CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 6 GLOBAL TRADE FACILITATION PROJECTS Canada Mongolia China USA Tajikistan Greece Qatar Oman Bangladesh Mexico Saudi Arabia Jamaica Vietnam India Panama Trinidad and Ivory Ghana Brunei Tobago Sri Lanka Coast Kenya Singapore Peru Madagascar Papua New Guinea Mozambique Brazil Mauritius Chile Typeandnumberofprojectsdone Single Window Customs Management Port Community Free Trade Zone Consultancy ASP Services System System System System CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 7 INTERNATIONAL TRACK RECORD Country Project Year Business Model 1 Singapore TradeNet® / TradeXchange 1989 PPP 2 Mauritius Mauritius TradeNet 1994 PPP 3 Ghana Ghana Community Network 2002 PPP 4 Saudi Arabia SaudiEDI 2002 PPP 5 Panama Panama Canal Authority 2004 Self Funded 6 Colon Free Trade Zone 2008 Self Funded 7 Panama Customs 2009 IDB Funded 8 Panama Single Window 2013 IDB Funded 9 Madagascar Madagascar (GASYNET) 2007 PPP 10 India Port Community System 2007 Self Funded 11 Ivory Coast Ivory Coast TradeNet 2008 PPP 12 Qatar Qatar Customs Clearance Single Window 2008 Self Funded 13 Trinidad & Tobago Trinidad & Tobago Single Electronic Window 2010 Self Funded 14 Mozambique Mozambique TradeNet 2010 PPP 15 Chile Chile Single Window 2012 IDB Funded 16 Brunei Brunei National Single Window 2012 Self Funded 17 Kenya Kenya Electronic Single Window 2012 Self Funded 18 UAE UAE Circulars and Permits 2012 Self Funded 19 Oman Integrated Customs Management System & Single 2013 Self Funded Electronic Window CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 8 Trade Facilitation CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 9 CHALLENGES & STRATEGY Challenges Security & Border Economy and Trade Protection Competitiveness Strategy Trade Facilitation Integrate Customs, Port And Promote convenient services, Trade licensing information information sharing and services to establish National interoperability to enhance Single Window. the trade competitiveness. CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 10 TRADE FACILITATION VALUE DRIVERS Enabling Strategies Value Drivers Fundamental strategies 1. Disengage payment process from physical transaction Clearance 2. Enable and encourage electronic information input and submission speed 3. Develop public-private partnership models with trading community 4. Integrate internal governance process across relevant departments 5. Enhance collaborative teaming Cost of Leading Practices trade 1. Adopt a risk management-based compliance approach 2. Implement preclearance and pre-certification programs 3. Integrate revenue collection into payment reconciliation processes 4. Implement strategic targeting programs 5. Exploit new technologies to streamline clearance procedures Security & 6. Integrated service delivery/whole of government compliance Emerging trends 1. Adopt virtual border preclearance activities 2. Adopt standardized international payment methods 3. Consolidate and apply all available data to improve interdiction Productivity 4. Develop business partner capabilities with key industries 5. Develop new/expand international partnerships 6. Develop public-private information sharing mechanism CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 11 Singapore’s TradeNet CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) CITY STATE BUILT ON TRADE CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 13 SINGAPORE SINCE INDEPENDENCE 1965 • Economy has grown substantially since independence • GDP per capita jumped by almost 100 times from US$512 in 1965 to US$55,000 in 2013 • Singapore was ranked by the World Economic Forum among the top competitive economies in the world. CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 14 SINGAPORE’S ECONOMY IN RECESSION Along the way, Singapore’s Economy Suffered Severe Recessions, e.g. 1985. An Economic Committee established to set new directions for the Singapore economy reviewed the reasons for the recession and recommended measures to cut costs, build up Singapore's international competitiveness, alongside longer-term issues like wage flexibility. The economic recovery came in 1986. CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 15 SINGAPORE’S SINGLE WINDOW - TRADENET® “Opportunities arise in times of crisis. Singapore’s experience in establishing our single window initiative is a testimony to this statement. In 1985, Singapore was hit by a recession.A high-level Economic Committee convened at that time identified improvement in external trade as a major goal and highlighted that use of IT could make a significant contribution to Singapore’s long term competitive position. This report was an important mobilizing factor to the realisation of Singapore’s single window, which was implemented in 1989 under the name of TradeNet. This was the world’s first nationwide electronic single window. After twenty years and many rounds of relentless upgrades, TradeNet remains the key enabler of Singapore’s external trade, which totals nearly 4 times our gross domestic product.” - Extract fro Speech by Mrs Lim Hwee Hua, Minister, Prime Minister’s Office, Second Minister For Finance And Transport APEC Customs – Business Dialogue, 2009 CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 16 HOW WE STARTED In the mid 80s • Singapore was among the top 20 trading nations in the world • Multiple parties involved – traders, shipping lines, freight forwarders, shipping agents etc. • Required multiple agencies’ endorsement – Trade Development Board, Customs and over 35 Controlling Units • About 10,000 declarations daily in 1987 • 4-20 documents had to be completed for each import/export • All handled MANUALLY CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 17 INCEPTION • In mid 1980’s - Singapore experienced her 1st recession • Government response - establishment of a high- powered Economic Committee to review the weakness of the Singapore economy and to chart new strategies to improve its economic competitiveness. • One of the recommendations was to expedite the use of IT to improve trade competitiveness. In 1986, Hong Kong, revealed that it was creating a trade system (TradeLink), which strengthened Singapore’s resolve to implement our own TradeNet®. • The Trade Development Board was given the task of mobilizing the trade community and became the coordinating point among various agencies such as Customs and Excise, Port of Singapore Authority, and Civil Aviation Authority of Singapore. CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 18 SINGAPORE’S TRADENET TradeNet Steering Committee Sea Community Air Community Government Sub-Committee Sub-Committee Sub-committee Implementation Team Integrated Procedures & Business Processes Proposal CrimsonLogicCrimsonLogic CopyrightCopyright 2014 2014 (Private) 19 CHRONOLOGY OF IMPLEMENTATION Dec 1986 Formed Executive Committee led by Trade Development Board (TDB) Formed Project Committee led by National Computerisation Board (NCB) Feb 1987 Established 3 Working Groups for the sea, air and government sectors Mar 1988 Completed Technical Design Specifications Incorporated PPP Vehicle – SNS (now CrimsonLogic) Initiated Public Education Program Oct 1988 Pilot/test run of