Singapore is a free port, and most imports enter the nation duty-free. For social and/or environmental reasons, Singapore levies high excise taxes on intoxicating liquors, tobacco products, motor vehicles, and petroleum products. Beyond those excise taxes, competition with global suppliers is another key challenge for American companies operating in Singapore. As the nation continues to restructure its economy, U.S. companies doing business in the city-state can expect increased operating costs and a more limited availability of foreign labor resulting from increasing inflation.
U.S. companies have faced technical import barriers for meat, seafood, and poultry products, as well as labeling barriers for pre-packaged, non-alcoholic beverages. Services barriers have included restrictions on the use of satellite dishes, direct-to-home satellite TV services, paid television subscriptions, and legal, banking, and healthcare services. Despite Singapore’s overall strong record on intellectual property (IP) protection and enforcement, U.S. stakeholders continue to raise concerns regarding weak enforcement against infringing goods transshipped through Singapore and the use of unauthorized streaming services and third-party illicit streaming devices to access pirated content. The latest details on trade barriers can be found in the USTR National Trade Estimate Report on Foreign Trade Barriers that is available online.
National Trade Estimate Report
Singapore continues to face challenges associated with demographic and geopolitical issues, such as an aging workforce, maturing economy, and increasing competition from other trade agreements. Singapore relies heavily on foreign workers, who make up approximately 40% of the workforce. Additionally, the surge in commodity prices continues to take a heavy economic toll on Singapore.