Guidance

Overseas Business Risk: Singapore

Updated 30 January 2023

We aim to provide information on this page on the key security and political risks which UK businesses may face when operating in Singapore.

1. Political, Economic and Trade Overview

1.1 Political Overview

Singapore is a highly prosperous island state that serves as a business hub for South East Asia and as one of the world’s most important ports.

It has an ethnically mixed population (citizens and permanent residents are around 74% Chinese, 13% Malay, 9% Indian). The total population is 5.45 million, of which 3.50 million (64%) are citizens with the rest foreign workers and residents.

Singapore is a Republic within the Commonwealth, gaining independence from the UK as part of Malaysia in 1963, before separating from Malaysia in 1965. English, Mandarin Chinese, Malay and Tamil are Singapore’s official languages, although English is the language of both government and business.

Singapore has been one of the region’s most politically stable countries. Singapore practices a modified version of the Westminster Parliamentary system. Each parliament sits for a maximum of five years. The last General Election was held on 10 July 2020. The ruling People’s Action Party (PAP) has been dominant since 1959, before Singapore became independent and the PAP currently holds 83 of the 93 elected seats in Singapore’s single chamber Parliament. The Workers’ Party is the largest opposition party in parliament. View the Parliament of Singapore website.

Singapore’s President serves in office for terms of six years.President, Halimah Yacob, began her term in September 2017 and a Presidental Election is due in 2023. The President has a small and limited number of powers. Find out more details on the Singapore President.

There are no direct elections for local government. A system of regional Mayors and town councils exists.

1.2 Economic and Trade Overview

Singapore is a small, but wealthy city-state with an open and trade-driven economy. It is a leading financial, aviation, shipping and trade hub for the Asia Pacific region, and the government has a pro-business economic and trade policy. It is one of the world’s wealthiest economies with GDP per capita over US$70,000 (2021).

Economic activity is spread across diverse sectors. Manufacturing maintains a significant one-fifth share of the economy, dominated by electronics, biomedical manufacturing, engineering and chemicals. It is Asia’s fifth largest oil refining centre. The services sector contributes over two-thirds of GDP, with strong growth in financial and business services. It is ranked as the world’s top financial centre after New York and London and is a fast-growing insurance and wealth management hub.

Going forward, Singapore is increasing its efforts to become a “global-Asia node of technology, innovation, and enterprise”. Key priorities include: accelerating digitalisation and internationalisation, promoting upskilling and reskilling; catalysing growth in new sectors (e.g. advanced manufacturing, FinTech and cyber) and benefiting from continued ASEAN economic integration.

Like the UK, Singapore is a strong supporter of the WTO. The city state has over 25 FTAs in place including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and is a member of the Regional Comprehensive Economic Partnership (RCEP). The UK and Singapore signed a bilateral Free Trade Agreement in December 2020 and a Digital Economy Agreement that entered into force in June 2022. The UK-Singapore Bilateral Investment Treaty (BIT) has been in force since 1978.

The UK and Singapore share a common language and have strong historical ties. Both economies have similar business and legal practices and share similar technical standards. Singapore is ranked by the World Bank as the second easiest place in the world to start, run and do business and its location makes it a prime gateway to South East Asia and Asia Pacific; with around 5,700 UK companies based in Singapore. Singapore is the UK’s largest trading partner in South East Asia, with total trade amounting to £18.5 billion in the year to the end of Q2 2022.

Singapore’s Ministry of Manpower has developed a Fair Consideration Framework that sets out the requirements for all employers in Singapore to consider the workforce in Singapore fairly for job opportunities. Companies with workforces that are seen to be “overly concentrated” from a single foreign nationality may be subject to a review of their hiring practices.

Up-to-date statistics and further information can be found on the following websites:

• Singapore Statistics
• Ministry of Trade and Industry
• Monetary Authority of Singapore
• Ministry of Manpower
• Gov.uk Exporting to Singapore guide

2. Human Rights

A police permit is required for any outdoor public assembly or procession and permission is needed for the wearing or displaying of any ‘cause related’ material or the public display of the flags of foreign nations. Approval from the Ministry of Manpower is required for a foreign national to give a talk on ‘racial, communal, religious, caused-related or political topics’. Foreign nationals who are not Permanent Residents may not join protests at Singapore’s Speaker’s Corner. Under Singapore’s Foreign Interference (Countermeasures) Act, the Singapore government has power to take a range of actions against an ‘arrangement’, written and unwritten, between Singaporean and foreign entities or individuals if the arrangement is directed to something deemed to be a ‘political end’ in Singapore.

Some crimes in Singapore, including some non-violent crimes such as graffiti and immigration offences, carry, for men, punishments that may include canning (being beaten with a large stick). The death penalty exists for murder, drug trafficking, kidnapping and firearms offences.

On 29 November 2022, Singapore’s parliament repealed the unenforced Section 377a of the Penal Code, which, on paper, criminalised same-sex sexual activity between men. At the same time Parliament changed the Constitution to mandate that only Parliament can change the definition of marriage, removing the possibility of legal challenges through the courts as a means to achieve marriage equality. No legal recognition of same-sex partnerships means there is no recognition of same-sex parentage, possibility of adoption, no next of kin rights and no equal access to housing allocations and subsidies. Obtaining visas for same-sex partners and dependents can be very difficult. Foreigners are banned from sponsoring or attending Singapore’s annual LGBT+ gathering, Pink Dot.

Foreign domestic workers are, since January 2023, now legally entitled to a day off once a month. Foreign domestic workers may agree to forgo days off and endure poor working conditions in order to pay off debts to placement agencies. UK companies and employers should follow local laws when employing migrant workers and other foreign workers, and also consider their own ethical or internal company obligations to maintain good employment practices. The British Chamber of Commerce Singapore hosts a guide for expats on employing foreign domestic workers.

3. International Relations

Singapore is an active player on the international stage. Singapore is a founder member of the Association of South East Asian Nations (ASEAN), the regional grouping comprising Singapore and nine of its immediate neighbours.

Singapore participates in the Asia Pacific Economic Cooperation (APEC) forum, Asia-Europe Meeting (ASEM), and is a member of the Commonwealth of Nations and the United Nations. Singapore is a leading member of the Global Governance Group and is a regular guest at the G20. It is also a leading member of the Forum of Small States (FOSS).

Singapore enjoys good relations with its neighbours and is an advocate for ASEAN unity and greater ASEAN economic integration, particularly through the ASEAN Economic Community, which was launched at the end of 2015 to enhance economic and trade integration across SE Asia.

4. Bribery and Corruption

Bribery is illegal. Under the UK Bribery Act 2010 it is an offence for UK nationals and bodies incorporated under UK law, to offer or receive a bribe anywhere in the world. It is also a requirement for a company or institution to take reasonable steps to prevent bribery within its organisation.

In Singapore there is zero tolerance for bribery. Any attempt to bribe or otherwise prevent an official from carrying out their duties can result in arrest.

In Singapore the Corrupt Practices Investigation Bureau (CPIB) is the government agency which investigates and prosecutes corruption in the public and private sectors. The CPIB’s primary function is to investigate corruption, which is punishable by fines and/or jail terms up to 7 years for each count. It is also empowered to investigate other criminal cases in which corruption may be involved.

Incorporated within the Prime Minister’s Office, the Bureau is headed by a director who reports directly to the Prime Minister. The CPIB is independent of the Singapore Police Force and other government agencies so as to prevent any undue interference in its investigations.

Singapore was ranked joint 4th (of 180) in Transparency International’s Corruption Perceptions Index (CPI) in 2021.

Read the information provided on our Bribery and corruption page.

5. Terrorism Threat and Protective Security

Read the latest Travel Advice for Singapore from the Foreign & Commonwealth Office.

6. Intellectual Property

When exporting to Singapore, it is essential to register your rights in Singapore as soon as possible in order to be able to defend and enforce them. IP rights are territorial in nature which means that registrations in the UK or another country’s jurisdiction are not automatically enforceable in others.

Singapore’s IP rights legislative and administrative regime is fully compliant with Trade Related Aspects of Intellectual Property Rights (TRIPS). Singapore has a very comprehensive and robust IP legal framework. IP is protected by patents, trademarks, registered designs, copyright, and layout-designs of integrated circuits, geographical indications, trade secrets and confidential information, as well as plant variety. The framework is considered to be one of the best in Asia.

Singapore is a member of the following international conventions regulating IP matters: Paris Convention; Madrid Agreement; Patent Cooperation Treaty; World Intellectual Property Office (WIPO) Copyright Treaty; and the Berne Convention.

Singapore is part of the Global Patent Prosecution Highway (GPPH) network in 2014, partly as a result of UK encouragement. Patent applications filed from Singapore can now obtain approval faster and more efficiently.

Singapore’s IP regime has been consistently recognised as one of the best in the world by international surveys. Singapore is ranked 2nd in the world and top in Asia for having the best protection of IP in the World Economic Forum’s Global Competitiveness Report 2019. The Property Rights Alliance’s International Property Rights Index and US Chamber International IP Index 2019 have similarly ranked Singapore top in Asia for their IP protection efforts.

According to the Global Innovation Index 2022, Singapore is the 7th most innovative country in the world, and most innovative in Southeast Asia

6.1 IP Top Tips for businesses:

• Singapore operates under a “first-to-file” system, meaning that the first person to file an IP right in the Singapore jurisdiction will own that right once the application is granted.

• Both the company and the employee will be held responsible for copyright infringements, and penalties can be severe including a fine and/or term of imprisonment.

• ASEAN TMview is an online database with information on more than 2 million trademarks from 9 ASEAN countries. The free-of-charge online portal is aimed at making ASEAN trademark data widely available and easily accessible to all interested parties.

• Singapore is part of the ASEAN Patent Examination Co-operation (ASPEC), a regional patent work-sharing programme among 9 participating ASEAN countries. The purpose of this programme is to share search and examination results between the participating offices to allow applicants in participating countries to obtain corresponding patents faster and more efficiently.

• There is no customs recording system in Singapore through which you can request Customs to proactively monitor and notify you of suspected counterfeit goods being imported.

Businesses are generally encouraged to learn more about IP issues relevant to their specific industry sector and to consider defensive measures early in their plans to enter the Singaporean market.

The UK Intellectual Property Office has IP attachés based in Singapore with specific focus on providing support and advice to UK companies in Singapore and SE Asia.

6.2 Useful information can also be found at:

• Intellectual Property Office, a UK Government agency providing free and impartial advice on protecting and registering your IP in the UK and abroad;

• Guidance on protecting your UK intellectual property abroad and;

• Intellectual Property Office of Singapore.

7. Organised Crime

As with terrorism, the Singapore Government takes a serious view of organised crime and has in place several severe measures to counter it. These measures include the use of the death penalty against drug and firearms traffickers; jail and fines for those caught for human, wildlife, and goods trafficking; strict rules and expensive entry charges to discourage Singaporeans from patronising the casinos at its two integrated resorts; and close monitoring of designated red-light districts. In some circumstances, authorities are empowered to detain without trial in cases of participation in or facilitation of organised criminality.

Visitors from the UK are advised not to become involved with drugs of any kind: possession of even small quantities can lead to imprisonment or the death penalty.

Read the information provided on our Organised crime page.

For advice on serious organised crime visit the National Crime Agency website.

8. Digital Security

The ‘Protection from Online Falsehoods and Manipulation Act’ (‘POFMA’) enables the Singapore government to add notices to, or block, online content. This law applies to all content that is visible in Singapore, regardless of origin, and includes private chat groups and social media groups. Penalties for failing to comply with POFMA directions can result in fines of up to S$40,000 and up to three years in jail for individuals, and fines of up to S$500,000 for companies. Online news sites may also be subject to registration and regulation under Singapore’s Broadcasting Act. Under Singapore’s Foreign Interference (Countermeasures) Act the Singapore government can order content to be removed or blocked, and data to be handed over.

Singapore uses the Personal Data Protection Act (PDPA) as the baseline standard for the protection of personal data. This law states the requirements governing the collection, use disclosure and care of personal data in Singapore as well as penalties for organisations responsible for data breaches.

9. Contact

Contact the DBT team in Singapore for more information and advice on opportunities for doing business in Singapore.