BUSI 2701 A – Fundamentals of International Business

Country Analysis : Singapore
BUSI 2701 A – Fundamentals of International Business
Daniel Gulanowski
July 29, 2021
Mohammed Bafadal – 101090740
Executive Summary:
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Singapore is located in Southeast Asia, off southern tip of the Malay peninsula. The
country became an independent republic after it was separated from Malaysia in 1965, thus it is
known as a fully functioning city-state. China, the United States, Indonesia, Malaysia, and Japan
are Singapore’s main trading partners. The country has a considerably high GDP and excellent
infrastructure system that contributes to success in having an international business.
As shown in the report, Singapore has many benefits that support conducting business.
Such benefits entail a robust economy, low tax rates, strategic geographical location, excellent
infrastructure, etc. On the other hand, Major risks to operate in Singapore include limited skilled
labour, lack of natural resources, aging population and limited freedom of speech. However, the
benefits outweigh those risks and it is recommended to operate in the Singapore. It is
recommended mostly because of their optimal location and the ease of doing business in the
country.
Macro Environment:
Description
Singapore is a fully developed country in Southeast Asia and it is well known for its
various types of tourism with many tourists visiting the country throughout the year. It is a
respected country with a high standard of living. Singapore has a very strong and competitive
economy and considered one of the largest economies in the world and still expanding year after
year. About half a century ago, Singapore was one of the most undeveloped countries with a
GDP per capita of less that $320. Today, Singapore’s GDP is ranked 38/196 with a GDP of
approximately 379 Billion USD in 2021 higher that three quarters of the world. Singapore is
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considered as one of the richest and most developed countries in the world (Zhou, 2019).
Singapore is considered to have one of the most developed infrastructures in the world with large
investments in its public transportation including ports, railways and international airports
( International Construction, 2019). The city-state is investing heavily in further developing the
length of their public railway network, from 230km in 2018 to 360km by 2030, improving
standards of living and ease of transportation ( International Construction, 2019). The
government is also aiming to build a new terminal at Changi international airport by 2030 which
will be called Termina 5. The new terminal will increase passenger handling capacity from 85
million per year in 2018 to 135 million per year by 2030 ( Design Build Network, 2019). Changi
international airport handles about 7,000 flights every week transporting passengers and cargo
worldwide. Changi international airport connects 380 cities to 90 countries. Moreover, Singapore
offers world class telecommunications infrastructure with 90% of Singaporean population having
access to the internet. As for corruption, Singapore haze zero tolerance for corruption and
bribery. The Corrupt Practices Investigation Bureau is responsible for investigating any corrupt
activities in the public and private sector in Singapore. The level of corruption in the country is
very low scoring 85 in the corruption perception index and ranked 3rd of 179 countries in 2020
(GOV. UK, .n.d.). Large multinationals operating in Singapore include Pfizer, Google, Apple,
Microsoft and Philips. The top trade partners of Singapore are China, the United States,
Indonesia, Malaysia, and Japan ( Britannica, 2021). Canada is considered one of the first
countries to institute diplomatic ties with Singapore since it separated from the federation of
Malaysia in 1965 (Government of Canada, .n.d.).
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