Concluding remarks by the Chairperson

The eighth Trade Policy Review of Singapore has offered us a good opportunity to deepen our understanding of recent developments in its trade, economic, and investment policies, and the challenges it faces. This has been achieved despite the constraints posed by the COVID‑19 pandemic on the preparation of the reports and on our deliberations. Our discussions have clearly benefited from the participation of the Singaporean delegation, led by Mr. LEE Chuan Teck, Permanent Secretary (Development) at the Ministry of Trade and Industry.

I would like to thank Ambassador TAN Hung Seng, Permanent Representative of Singapore to the WTO, and his team for their work and cooperation in the preparation of this Review. My appreciation also goes to our discussant, Ambassador Dagfinn SØRLI of Norway for his insightful remarks, and to the delegations that took the floor for their valuable contributions.

The large number of interventions made at this meeting (45) is a clear illustration of the strong interest in, and importance attached by Members to Singapore's trade and investment policies and practices and to the active role it plays in the WTO.

Members commended Singapore on its positive economic performance during the years prior to the COVID‑19 outbreak, which was underpinned by sound macroeconomic policies and a business-friendly environment. They appreciated the measures and financial resources put in place by the Government, amounting to some 20% of GDP, to overcome the adverse effects of the pandemic and set the economy on a strong recovery path in 2021. In its statement, Singapore announced that it had recently upgraded its GDP growth forecast, which is now set at “6 to 7%” for 2021, but that economic recovery would be uneven across-sectors.

Singapore was also lauded on its commitment to maintaining an open market, promoting competition, and supporting businesses and workers throughout the difficult times of the pandemic.

Some Members encouraged Singapore to lift the few remaining foreign investment restrictions in certain services sectors.

Members noted Singapore's efforts to address structural constraints and long-term challenges, such as limited natural resources and an ageing population, and welcomed its economic transformation agenda aimed at building a value-creating economy that is open and connected to the world, and based on innovation and digitalization. They encouraged Singapore to continue these reform efforts. Singapore's various initiatives to transform the country into a green economy and address climate change were also appreciated. Of particular interest to Members in this regard were Singapore's carbon tax regime and the energy efficiency measures.

Members praised Singapore's steadfast commitment to the rules-based multilateral trading system and to maintaining open supply chains throughout the pandemic. Its contributions to ongoing negotiations and WTO reform efforts were also praised.

Singapore's role in co-convening the Joint Statement Initiative on E-Commerce was acknowledged, as well as its participation in the joint initiatives on investment facilitation and on micro, small and medium-sized enterprises. In this context, Members welcomed the announcement made by Singapore that it would shortly join the Joint Statement Initiative on Services Domestic Regulation. Singapore's participation in the Multi-Party Interim Appeal Arbitration Arrangement, and in the structured discussions on trade and environmental sustainability were also appreciated.

Members took note of Singapore's active economic integration agenda as witnessed by its network of 27 free trade agreements, which includes agreements with its ASEAN counterparts and other economic partners in various regional schemes. Members showed particular interest in having more information on the Digital Economy Agreements and the Green Economy Agreements recently negotiated by Singapore with some FTA partners.

Singapore indicated that it saw both the digital economy and the green economy as the next frontier of post-COVID‑19 economic recovery and growth, and that it was ready to work with like‑minded partners in these areas.

Referring to specific trade policies, Members appreciated Singapore's full implementation of the Trade Facilitation Agreement upon its entry into force in 2017, and its strong record in customs digitalization and other initiatives to facilitate trade. Members also acknowledged that Singapore's MFN tariffs are all zero-rated, except for two product categories. However, they noted that around 30% of the tariff lines remain unbound, and that bound rates range from 0% to 10%.

Some Members encouraged Singapore to increase the level of tariff bindings and reduce the gap between bound and applied rates. There were also questions regarding excise taxes on wines and spirits, import licensing formalities, standards and technical regulations (including the adoption of international standards) and SPS measures (such as labelling and marketing requirements for food and other products).

An area of considerable interest, as indicated in Member's written questions, referred to Singapore's numerous tax and non-tax incentive programmes, including programmes to support overseas market expansion, granted to locally based companies, in particular SMEs. Members sought clarification on several of these programmes and enquired about their status under the Agreement on Subsidies and Countervailing Measures. Questions were also raised regarding the participation of the government-linked companies in the economy; some Members highlighted the importance of ensuring transparency in their management, and open and fair competition conditions in their operation vis-à-vis private companies.

From their written questions, it is clear that Members were particularly interested in the changes introduced by Singapore to its intellectual property regime, including the amendment or promulgation of new laws on patents, industrial designs, geographical indications, border enforcement and dispute resolution, and the status of a draft bill on copyrights. Members also sought information on Singapore's initiatives to promote commercialization of IP.

Noting that manufacturing remains a key pillar of the Singaporean economy, Members were keen to know more about the 23 industrial transformation maps and the seven industrial strategies adopted by the Council on the Future Economy in 2017, notably regarding re-skilling and digitalization schemes.

Members acknowledged the fundamental role played by services in the Singaporean economy, which contributes 70% to GDP. They also acknowledged the country's position as an international trade, finance, and transportation hub, and commended Singapore on the openness of these sectors.

Regarding financial services, Members appreciated the reforms undertaken by Singapore to simplify the banks' licensing regime, establish a digital financial ecosystem for fintech and e‑payments, and develop green and sustainable finance. On telecommunications, Members expressed interest in the 5G developments, where Singapore is seen as a pioneer.

Members were interested in the way Singapore addresses gender issues in its economic transformation agenda, in particular measures to support women workers and business owners.

Some Members enquired about future reforms of Singapore's policy regarding foreign workers, including with respect to the movement of intra-corporate transferees.

The above are some of the key issues that emerged from our discussion. I hope that the Singaporean delegation will consider and further reflect on these issues and on the many constructive comments that it has received during this Review. Singapore received 525 written questions from 26 Members, and has already responded to most of them. Members look forward to receiving written answers to any outstanding or follow-up questions within a month, at which point the Review will be successfully concluded.