Macroeconomics, Agribusiness & Trade in Singapore

Singapore is a small parliamentary republic and trade hub located on an island at the southernmost tip of the Malayan peninsula in Southeast Asia. Furthermore, the Republic of Singapore hosts the headquarters for the Asia Pacific Economic Cooperation (APEC) and is one of the ten members of the Association of South East Asian Nations (ASEAN). During 2017, Singapore’s gross domestic product (GDP) was of approximately US$514 billion (PPP) and the country experienced positive economic growth of 2.5%. Moreover, Singapore is home to a large community of international expatriates and has a GDP per capita of about US$53.000.

Macroeconomics, Agribusiness & Trade in Singapore

In terms of natural resources and geographic features, Singapore has major fisheries and favorable deep-water ports. Within manufacturing, the national industry is focused on electronics, chemicals, oil drilling equipment, petroleum refining, rubber processing, processed food, beverages, ship repair, and offshore platform construction. Likewise, a large portion of Singapore’s economy’s depends on tourism, trade, and financial services. In fact, Singapore welcomed some 16.4 million tourists during 2016 and it is estimated that they generated US$18.3 billion worth of economic activity. Simultaneously, the country’s agricultural industry has as main products orchids, vegetables, poultry, eggs, fish, and ornamental fish.

In terms of trade, despite its small size, Singapore is amongst the world’s twenty largest export economies. During 2016, the country imported US$259 billion worth of goods and exported US$315 billion, resulting in a trade surplus of US$55.4 billion. Furthermore, Singapore’s main export, representing 21% or US$65.5 billion of the country’s total in 2016, were integrated circuits. Similarly, the country’s main import that same year, representing 14% or US$36.4 billion of all international purchases, was also integrated circuits. Meanwhile, Singapore’s main trading partners are China, Hong Kong, Malaysia, Japan, South Korea, Indonesia, the United States, and the European Union.

Simultaneously, land distribution in Singapore has evolved throughout the last half century. Back in 1961, arable land in the country covered 3.00 hectares and permanent crops accounted for 11.000 hectares. More recently, by 2015, arable land had decreased to 560 hectares and permanent crops covered 100 hectares. Therefore, it should not be a surprise that Singapore imports approximately 90% of its food supply, mainly from the United States, Malaysia, Indonesia, Australia, and China. Likewise, given this dynamic, Singapore has strict food import and product labeling laws in order to prevent health and contamination issues.

Amongst Singapore’s food imports, seafood is a category that stands out, having accounted for almost US$1.1 billion in imports during 2016. Overall, the United States provided some 1.8% or US$20 million of Singapore’s seafood imports in 2016, mainly in foodstuffs such as American lobsters, oysters, cod, swordfish, sock-eye salmon, scallops, mussels, and clams.

(Read more about Economics and Agribusiness in the Republic of Malta)