SINGAPORE

Strong fundamentals and policy support against an unprecedented shock

AA2

MEDIUM RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD372.06bn (world ranking 34, World Bank 2019)
Population 5.7mn (world ranking 114, World Bank 2019)
Form of state Parliamentary Republic
Head of government LEE Hsien Loong (PM)
Next elections by July 2025, general election
  • Stable political system and effective policymaking, including prudent macroeconomic policies
  • High-income country that serves as a regional and global hub for trade with the world’s 2nd busiest port
  • Strong external position with a track record of current account surpluses, ample foreign exchange reserves, and low public external debt
  • Strong business environment and banking sector
  • Strategic position at the heart of South-East Asia
  • High dependence on exports
  • Pressure on productive population due to high old age dependency ratio
  • Shift to a mature economy implies slower growth in the medium and long-term
  • Land scarcity as the government seeks to expand population in the long run

Trade structure by destination/origin

(% of total)

Exports Rank Imports
China 25%
1
14% China
China, Hong Kong SAR 11%
2
11% United States
Malaysia 11%
3
11% Malaysia
Indonesia 8%
4
8% Taiwan
United States 7%
5
6% Japan

Trade structure by product

(% of total)

Exports Rank Imports
Electrical machinery and apparatus 29%
1
24% Electrical machinery and apparatus
Petroleum and related materials 13%
2
21% Petroleum and related materials
Office and automatic data processing machines 6%
3
5% Office and automatic data processing machines
Organic chemicals 4%
4
4% Telecommunication and sound recording apparatus
Specialised machinery 4%
5
3% Other industrial machinery and parts
The payment behavior of domestic companies and the DSO is good. However, the law provides no guidelines as to how late payments should be handled and contracts remain the only reference when business relationships turn sour.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

  • Payments

  • Court proceedings

  • Insolvency proceedings

Overall, legal action remains expensive even though the court system is fairly efficient.

The insolvency framework is in line with international standards however in practice, as in most countries, collecting debt from insolvent debtors would prove to be a genuine challenge.

Euler Hermes

Economic Research Team

research@eulerhermes.com

Contact Françoise Huang

Senior Economist for APAC

francoise.huang@eulerhermes.com

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