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RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHGP #2016/01 3110655
ZNR UUUUU ZZH
R 070655Z NOV 07
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC 4363
INFO RUCPDOC/USDOC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCNASE/ASEAN MEMBER COLLECTIVE

UNCLAS SECTION 01 OF 08 SINGAPORE 002016 
 
SIPDIS 
 
STATE FOR EB/TPP/BTA 
USDOC FOR JBAKER 
STATE PASS USTR FOR AUSTR WEISEL, DBELL AND GBLUE 
 
SENSITIVE BUT UNCLASSIFIED 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EINV EFIN KIPR ECPS SN
SUBJECT: SINGAPORE - 2008 NATIONAL TRADE ESTIMATE REPORT 
 
REF:  STATE 119765 
 
¶1.  (U) In response to reftel instructions, this message is Post's 
draft chapter on Singapore for the 2008 National Trade Estimate 
Report.  We assume that Washington agencies will update the trade 
and investment data in the first three paragraphs of the report as 
they have done in the past.  Per reftel instructions, we have 
emailed to USTR the text of the draft report in MS Word format and 
showing changes from last year's version. 
 
¶2.  (SBU) Begin text of the 2008 National Trade Estimate report: 
 
TRADE SUMMARY 
------------- 
 
The U.S. goods trade surplus with Singapore was $6.9 billion in 
2006, an increase of $1.4 billion from $5.5 billion in 2005.  U.S. 
goods exports in 2006 were $24.7 billion, up 19.6 percent from the 
previous year.  Corresponding U.S. imports from Singapore were $17.8 
billion, up 17.7 percent.  Singapore is currently the 9th largest 
export market for U.S. goods. 
 
U.S. exports of private commercial services (i.e., excluding 
military and government) to Singapore were $5.8 billion in 2005 
(latest data available), and U.S. imports were $3.7 billion.  Sales 
of services in Singapore by majority U.S.-owned affiliates were $6.2 
billion in 2004 (latest data available), while sales of services in 
the United States by majority Singapore-owned firms were $1.6 
billion. 
 
The stock of U.S. foreign direct investment (FDI) in Singapore in 
2005 was $48.1 billion (latest data available), down from $57.1 
billion in 2004.  U.S. FDI in Singapore is concentrated largely in 
the manufacturing, wholesale trade, information, and professional 
scientific and technical services sectors. 
 
FREE TRADE AGREEMENT (FTA) 
-------------------------- 
 
The United States and Singapore signed a Free Trade Agreement (FTA) 
on May 6, 2003, which entered into force on January 1, 2004.  It was 
the first comprehensive FTA the United States concluded with an 
Asian country, eliminating most tariffs immediately upon entry into 
force of the FTA and making important advances in many key areas. 
Among other benefits, the FTA provides strong discipline in the most 
competitive U.S. service sectors, enhances protection for 
intellectual property, makes specific commitments regarding the 
conduct of Singapore's government-linked enterprises and provides 
strong and transparent discipline in government procurement.  The 
FTA also includes commitments to prevent illegal transshipments of 
all traded goods and to prevent circumvention for textiles and 
apparel as well as requirements to effectively enforce domestic 
labor and environmental laws.  Since the FTA was implemented, 
exports from the United States have increased 49 percent through 
2006, with steady growth in medical devices, machinery and 
construction equipment exports, and significant growth in 
pharmaceutical exports. 
 
In addition to the FTA with the United States, Singapore has 
concluded bilateral FTAs with Australia, the European Free Trade 
Association, Japan, Jordan, New Zealand, South Korea, India and 
Panama and a quadrilateral agreement with Chile, New Zealand and 
Brunei.  Singapore is negotiating FTAs with Bahrain, Canada, China, 
Egypt, Kuwait, Mexico, Pakistan, Peru, Qatar, Sri Lanka and the 
United Arab Emirates.  Singapore is a member of the Association of 
Southeast Asian Nations (ASEAN), which has concluded FTAs with China 
and South Korea and is negotiating FTAs with Australia, New Zealand, 
India, and Japan. 
 
IMPORT POLICIES 
--------------- 
 
Tariffs 
------- 
 
Singapore imposes no tariffs on industrial goods.  It eliminated the 
last four remaining tariffs (covering imports of beer and certain 
alcoholic beverages) for goods originating in the United States when 
the FTA came into force.  For social and/or environmental reasons, 
Singapore levies high excise taxes, applicable to distilled spirits 
and wine, tobacco products, motor vehicles (all of which are 
imported) and gasoline.  Singapore does not impose any known 
restrictions or duties on imports or exports of textiles and 
apparel.  Singapore has bound 70.5 percent of its tariff lines in 
the World Trade Organization (WTO).  Singapore is a signatory to the 
 
SINGAPORE 00002016  002 OF 008 
 
 
WTO Information Technology Agreement. 
 
Import Licenses 
--------------- 
 
All imports require a permit, primarily for statistical tracking 
purposes.  Special import licenses are required for certain goods, 
including designated strategic items, hazardous chemicals, 
radiation-emitting medical devices, films and videos, arms and 
ammunition, agricultural biotechnology products, food derived from 
agricultural biotechnology products, prescription drugs, 
over-the-counter drugs, vitamins with very high dosages of certain 
nutrients and cosmetics/skin care products.  Beginning in April 
2008, Singapore will require that all manufacturers, importers, and 
wholesalers of medical devices be licensed under the Health Products 
Act by no later than October 2009.  Singapore expanded its 
controlled goods list, effective January 1, 2008, to include all 
items covered by the Australia Group, the Nuclear Suppliers Group, 
the Missile Technology Control Regime, and the Wassenaar 
Arrangement.  Singapore maintains a tiered motorcycle operator 
licensing system based on engine displacement, which, along with a 
road tax based on engine size, places U.S. exports of large 
motorcycles at a competitive disadvantage.  The sale of chewing gum 
is restricted in Singapore.  However, as a result of the FTA, 
Singapore allows the importation of chewing gum with therapeutic 
value for sale, subject to certain requirements. 
 
STANDARDS, TESTING, LABELING AND CERTIFICATION 
--------------------------------------------- - 
 
Under the 2002 Consumer Protection Regulations, 45 categories of 
electrical, electronic, and gas home appliances and accessories are 
listed as controlled goods and require a stamp of approval from the 
Singapore government's standards and certification authority (SPRING 
Singapore).  SPRING Singapore recognizes test reports issued by 
accredited testing laboratories and certification bodies, including 
those in the United States.  Labels conforming to standardized 
formats are required on imported foods, drugs, liquors, paints and 
solvents. 
 
Agriculture 
----------- 
 
Singapore's food import policy is intended to guarantee a steady and 
sufficient supply of healthful and high-quality foods from a broad 
number of countries.  Singapore allows meat and poultry imports 
solely from countries with which it has protocol agreements.  Doing 
so preserves its rigorous food safety requirements through the 
integration of foreign farm accreditation, inspection and regular 
testing.  Export health documentation endorsed by federal health 
institutions must accompany every shipment of imported meat and 
poultry.  In addition, Singapore health authorities test every 
shipment of imported meat and poultry visually for wholesomeness and 
to ensure it is free from spoilage and disease.  Meat and poultry 
product samples are regularly sent to government laboratories for 
evaluation to guarantee that they do not exceed the allowable 
microbiological specifications for raw meat and poultry products. 
Singapore's Agri-food and Veterinary Authority (AVA) enforces a zero 
tolerance policy for salmonella enteriditis and E-coli E. 0157 in 
raw meat products, which is not consistent with international 
standards and has posed some difficulties for U.S. exporters. 
 
AVA prohibits beef imports from nations in which Bovine Spongiform 
Encephalopathy (BSE) has been detected, including the United States. 
 Singapore previously required six years of non-BSE detection in a 
country before re-establishing trade, but has now established a 
minimum risk rule in line with World Organization for Animal Health 
(OIE) guidelines.  On January 17, 2006, Singapore announced the 
re-opening of its market to U.S. boneless beef from animals under 30 
months of age.  Singapore continues to ban imports of bone-in cuts 
of beef and beef products from the United States. 
 
Fresh produce imports are tagged to secure their traceability to 
farms.  Fresh produce is routinely tested to guarantee that it does 
not exceed maximum pesticide residue limits. 
 
In September 2006, Singapore removed a requirement for a Certificate 
of Age/Origin (COA) for aged distilled spirits despite concerns 
raised by the EU, the United States and their distilled spirits 
industries.  In many countries, the COA is a useful tool for 
preventing the importation of counterfeit distilled spirits. 
 
GOVERNMENT PROCUREMENT 
---------------------- 
 
 
SINGAPORE 00002016  003 OF 008 
 
 
Singapore is a signatory to the WTO Agreement on Government 
Procurement.  The FTA provides increased access for U.S. firms to 
Singapore's central government procurement.  Some U.S. and local 
firms have expressed concerns that government-owned and 
government-linked companies (GLCs) may receive preferential 
treatment in the government procurement process.  Singapore denies 
that it gives any preferences to GLCs or that GLCs give preferences 
to other GLCs. 
 
INTELLECTUAL PROPERTY RIGHTS (IPR) PROTECTION 
--------------------------------------------- 
 
In line with its FTA commitments and obligations under international 
treaties and conventions, Singapore has developed one of the 
strongest IPR regimes in Asia.  Amendments to the Trademarks Act, 
the Patents Act, the Layout Designs of Integrated Circuits Act, 
Registered Designs Act, and a new Plant Varieties Protection Act, 
and a new Manufacture of Optical Discs Act came into effect in July 
¶2004.  The amended Copyright Act and Broadcasting Act became 
effective in January 2005; the Copyright Act was further amended in 
August 2005.  Singapore has implemented Article 1 through Article 6 
of the World Intellectual Property Organization (WIPO) Joint 
Recommendation Concerning Provisions on the Protection of Well-Known 
Marks of 1999.  It has signed and ratified the International 
Convention for the Protection of New Varieties of Plants (1991); the 
Convention Relating to the Distribution of Program-Carrying Signals 
Transmitted by Satellite (1974); the WIPO Copyright Treaty (1996); 
and the WIPO Performances and Phonograms Treaty (1996).  Singapore 
is a signatory to other international IPR agreements, including the 
Paris Convention, the Berne Convention, the Patent Cooperation 
Treaty, the Madrid Protocol and the Budapest Treaty.  The WIPO 
Secretariat opened offices in Singapore in June 2005.  Amendments to 
 
SIPDIS 
the Trademark Act, which took effect in January 2007, fulfill 
Singapore's obligations in WIPO's revised Treaty on the Law of 
Trademarks. 
 
Transshipment 
------------- 
 
To implement its FTA commitments, Singapore amended Section 31 of 
the Import/Export Act in November 2003 to facilitate 
information-sharing with U.S. Customs and Border Protection and 
other country officials with which it has relevant trade agreements. 
 Nonetheless, Singapore, a major transshipment and transit point for 
sea and air cargo, does not collect information on the contents and 
destinations of most transshipment and transit trade, which accounts 
for 80 percent of the cargo coming through the port.  This lack of 
information makes enforcement against transshipment or transit trade 
in infringing products virtually impossible.  In addition, goods in 
transit are not subject to seizure under the Copyright Act, although 
it may be possible if a search warrant is obtained in advance. 
 
Internet 
-------- 
 
In accordance with the FTA, Singapore's amended Copyright Act 
provides improved protection for digital works, and outlines 
requirements and procedures for removing infringing material from 
Internet sites.  Despite the amendment, the copyright industry 
maintains that the new law fails to impose full liability on service 
providers engaged in infringing activity.  U.S. industry has raised 
concerns that Internet piracy in Singapore is on the rise as a 
result of the increasing availability of the country's broadband 
facilities.  Industry groups also claim that Section 107B of the 
Copyright Act violates FTA obligations by permitting entities in 
Singapore to "simulcast" performances over the Internet without 
paying the proper license fees. 
 
Enforcement 
----------- 
 
In line with its FTA obligations, Singapore has taken steps to 
improve IPR enforcement and to lower infringement rates, which are 
among the lowest in the Asia Pacific region.  Singapore claims that 
its enforcement efforts have almost eliminated the production of 
pirated material and blatant storefront retail piracy.  According to 
industry estimates, Singapore's piracy rate averaged 5 to 10 percent 
for audio and video and 39 percent for business software. 
 
Rights holders have encountered difficulties when attempting to 
prosecute IP cases based on tips provided by company insiders. 
Singapore currently does not offer specific protection to 
"whistleblowers."  As a result, many informants refuse to provide 
crucial testimony in court. 
 
 
SINGAPORE 00002016  004 OF 008 
 
 
While a number of local educational institutions (the majority 
government-operated) have signed agreements to comply with their 
legal obligations to pay royalty fees to publishers, unlawful 
duplication of textbooks at some commercial copy centers continues. 
The police have conducted multiple raids, but, according to industry 
representatives, the practice is lucrative enough to continue in 
spite of the possibility of large fines. 
 
SERVICES BARRIERS 
----------------- 
 
Basic Telecommunications 
------------------------ 
 
Any foreign or domestic company can provide facilities-based (fixed 
line or mobile) or services-based (local, international, and 
callback) telecommunications services.  Under the Telecoms 
Competition Code 2000, the former monopoly (and 62 percent 
government-owned) telecommunications service provider, Singapore 
Telecommunications (SingTel), faces competition in all market 
segments, including fixed-line, mobile and paging services.  Its 
main competitors, MobileOne and StarHub, are also GLCs.  Singapore 
has approximately 60 facilities-based and 110 services-based 
operators. 
 
Facilities-based operators continue to be limited in their ability 
to take advantage of wholesale pricing for SingTel's ("last mile") 
local leased circuits.  IDA first mandated this regulatory change in 
December 2003, but SingTel has repeatedly contested this directive, 
typically through requests for IDA to stay decisions or through 
appeals to the Minister for Information, Communications and the Arts 
(MICA).  In October 2005, IDA amended SingTel's Reference 
Interconnection Offer to provide for a more appropriate, 
open-standard technical interface, a decision upheld by MICA in May 
2006 following an appeal by SingTel.  Although SingTel must now 
offer wholesale prices for local leased circuits at reduced rates 
ranging from 55 percent to 82 percent, U.S. industry is still unable 
to avail itself of this more competitive pricing structure due to 
certain uneconomical technical interconnection requirements imposed 
by SingTel. 
 
The United States remains concerned about the lack of transparency 
in some aspects of Singapore's telecommunications regulatory and 
rule-making process.  In particular, there is no obligation to make 
information publicly available concerning a company's request for a 
stay of decision or the filing of an appeal, to request public 
comments about such requests, or to publish a detailed explanation 
concerning final decisions made by IDA or MICA. 
 
Under the FTA, Singapore agreed that dominant licensees (SingTel and 
StarHub) must offer cost-based access to submarine cable-landing 
stations and allow sharing of facilities.  U.S. companies continue 
to have problems with access to facilities used to lay lines as 
provided for in the FTA.  Since January 2007, SingTel has been 
exempted from dominant licensee obligations for the residential and 
commercial portions of the retail international telephone services 
(ITS). 
 
SingTel announced in June 2006 plans to consolidate its local 
exchanges but failed to provide details of specific local exchanges 
to be closed.  This has put U.S. and other carriers' expansion plans 
on hold.  IDA issued a decision in June 2007 that increases the 
notification period SingTel must provide from six to 18 months.  IDA 
has denied requests by U.S. and other companies for interconnection 
at a more centralized location. 
 
Audiovisual and Media Services 
------------------------------ 
 
Singapore's local free-to-air broadcasting, cable and newspaper 
sectors are effectively closed to foreign firms.  Section 47 of the 
Broadcasting Act restricts foreign equity ownership of companies 
broadcasting to the Singapore domestic market to less than 49 
percent, although the Act gives the Media Development Authority 
(MDA) the authority to waive this requirement.  The Singapore 
government also limits individual equity stakes in broadcasting 
companies to no more than 5 percent of issued shares. 
 
MediaCorp TV is the only free-to-air television broadcaster.  It is 
80 percent owned by the government and 20 percent by publicly listed 
Singapore Press Holdings (SPH).  Under MDA rules, MediaCorp TV must 
outsource at least 285 hours of local content production to 
independent television production companies per year.  The incumbent 
subscription TV provider, StarHub Cable Vision (SCV), is a 
100-percent owned subsidiary of StarHub Ltd., a publicly listed GLC. 
 
SINGAPORE 00002016  005 OF 008 
 
 
 SingTel entered the subscription TV market in January 2007. 
Free-to-air radio broadcasters are mainly government-owned, with 
MediaCorp Radio Singapore being the largest operator.  BBC World 
Service is the only foreign free-to-air broadcaster in Singapore. 
Singapore restricts the use of satellite dishes and has not 
authorized direct-to-home satellite television services.  MDA must 
license the installation and operation of broadcast-receiving 
equipment, including satellite dishes.  Satellite broadcasters that 
want to operate their own uplink facility must get a special license 
from MDA.  Satellite broadcasters lacking their own facility are 
restricted to using one of four available uplink facilities. 
 
The Newspaper and Printing Presses Act restricts equity ownership 
(local or foreign) to 5 percent per shareholder, unless the 
government approves a larger shareholding, and requires that all the 
directors of a newspaper company be Singapore citizens.  Newspaper 
companies must issue two classes of shares, ordinary and management, 
with the latter available only to citizens of Singapore or to 
Singapore companies approved by the government. 
 
Media businesses or professionals must be licensed by MDA in order 
to provide services or apparatus and equipment.  Printed and audio 
material is no longer subject to prior review, but licensees are 
advised to abide by MDA guidelines.  MDA requires all film and video 
material for distribution and screening to be certified and 
classified.  The Singapore government can deny or revoke permits 
without warning or without giving a reason. 
 
Distribution, importation or possession of any "offshore" or foreign 
newspaper must be approved by the government.  Singapore 
significantly restricts freedom of the press, having curtailed or 
banned the circulation of some foreign publications.  In September 
2006, Singapore banned the Far Eastern Economic Review on grounds 
that the publisher did not comply with Section 23 of the Newspaper 
and Printing Presses Act, whereby the offshore publisher must 
appoint a person within Singapore authorized to accept service of 
any notice or legal process on behalf of the publisher and post a 
security deposit of S$200,000 ($125,000).  The Singapore government 
has also "gazetted" foreign newspapers i.e., numerically limited 
their circulation.  Singapore's leaders have threatened foreign 
publishers with defamation suits for perceived slights, which has 
often resulted in the foreign publishers issuing apologies and 
paying damages. 
 
Legal Services 
-------------- 
 
U.S. and other foreign law firms with offices in Singapore face 
certain restrictions.  They cannot practice Singapore law, employ 
Singapore lawyers to practice Singapore law, or litigate in local 
courts.  Since June 2004, U.S. and other foreign lawyers have been 
allowed to represent parties in arbitration in Singapore without the 
need for a Singapore attorney to be present.  U.S. law firms can 
provide legal services with respect to Singapore law only through a 
Joint Law Venture (JLV) or Formal Law Alliance (FLA) with a 
Singapore law firm, subject to the Guidelines for Registration of 
Foreign Lawyers in Joint Law Ventures to Practice Singapore Law. 
Singapore relaxed one of these guidelines for U.S. law firms under 
the FTA.  Since July 2007, foreign attorneys have been allowed to 
own equity in JLVs up to a maximum of 25 percent of total shares. 
As of October 2007, 16 of the 73 foreign law firms in Singapore were 
from the United States.  Additionally, there was one U.S. JLV and 
one FLA. 
 
Except for law degrees from designated U.S., Australian, New Zealand 
and British universities, no foreign university law degrees are 
recognized for the purpose of admission to practice law in 
Singapore.  Under the FTA, Singapore has recognized law degrees from 
Harvard University, Columbia University, New York University and the 
University of Michigan. 
 
To address a perceived shortage of practicing lawyers, Singapore 
relaxed its criteria for admission of attorneys to the Singapore 
Bar, effective October 2006.  One of the new criteria will admit to 
the Bar Singapore-citizen or permanent-resident law school graduates 
of the above-mentioned designated universities who were ranked among 
the top 70 percent of their graduating class or have obtained 
lower-second class honors (under the British system).  As of July 
2007, the government allows highly skilled foreign lawyers meeting 
certain criteria to practice Singapore corporate, finance and 
banking law. 
 
Engineering and Architectural Services 
-------------------------------------- 
 
 
SINGAPORE 00002016  006 OF 008 
 
 
Engineering and architecture firms can be 100 percent foreign owned. 
 In line with FTA provisions, and also applicable to all foreign 
firms, Singapore has removed the requirement that the chairman and 
two-thirds of the firm's board of directors be composed of 
engineers, architects or land surveyors registered with local 
professional bodies.  Practicing engineers and architects must 
register with the Professional Engineers Board and the Architects 
Board, respectively.  Under amended legislation, local and foreign 
job applicants, including U.S. degree-holders, will be required to 
have at least four years of practical experience in engineering or 
architectural works and pass an examination set by the respective 
Board. 
 
Accounting and Tax Services 
--------------------------- 
 
The major international accounting firms all operate in Singapore. 
Public accountants and at least one partner of a public accounting 
firm must reside in Singapore.  Only public accountants who are 
members of the Institute of Certified Public Accountants of 
Singapore and registered with the Public Accountants Board of 
Singapore may practice public accountancy in the country.  The Board 
recognizes U.S. accountants registered with the American Institute 
of Certified Public Accountants. 
 
Banking and Securities 
---------------------- 
 
Retail Banking 
-------------- 
 
Singapore maintains legal distinctions between offshore and domestic 
banking units, and the type of license held (full, wholesale or 
offshore).  Except in retail banking, Singapore laws do not 
distinguish operationally between foreign and domestic banks. 
 
The government initiated a banking liberalization program in 1999 to 
ease restrictions on foreign banks and has supplemented this with 
phased-in liberalization under the FTA.  These measures include 
removal of a 40 percent ceiling on foreign ownership of local banks 
and a 20 percent aggregate foreign shareholding limit on finance 
companies.  Singapore has granted six "qualifying full bank" (QFB) 
and 24 full service licenses to foreign banks, including one U.S. 
QFB and four U.S. full service banks.  Since January 2006, under the 
FTA, U.S. licensed full-service banks and QFBs are able to operate 
at an unlimited number of locations (branches or off-premises ATMs). 
 Non-U.S. full-service foreign banks have been allowed to operate 
since January 2005 at up to 25 locations.  These full-service banks 
can freely relocate existing branches and share ATMs among 
themselves.  They also can provide electronic funds transfer, 
point-of-sale debit, and Central Provident Fund (Singapore's 
compulsory pension fund) related services. 
 
Under the FTA, Singapore lifted its ban on new licenses for 
full-service banks in June 2005, and for wholesale banks in January 
¶2007.  Locally incorporated subsidiaries of U.S. full-service banks 
have been able to apply for access to local ATM networks since June 
¶2006.  Non-locally incorporated subsidiaries of U.S. full-service 
banks may begin doing so in January 2008. 
 
However, holders of cards issued locally by foreign banks or 
financial institutions cannot access their accounts through the 
local ATM networks.  They are also unable to access their accounts 
for cash withdrawals, transfers or bill payments at ATMs operated by 
banks other than those within their own bank or at foreign banks' 
shared ATM networks. 
 
U.S. industry advocates enhancements to Singapore's credit bureau 
system.  The Minister of Finance must provide specific types of 
approval for acquisitions of 5 percent, 12 percent or 20 percent or 
more of the voting shares of a local bank.  Although it has lifted 
the formal ceilings on foreign ownership of local banks and finance 
companies, the Singapore government has indicated that it will not 
allow a foreign takeover of its three major local financial 
institutions.  While foreign penetration of the Singapore banking 
system is comparatively high, with foreign banks holding about 40 
percent of non-bank deposits, the government has stated publicly 
that it wants local banks' share of total resident deposits to 
remain above 50 percent. 
 
Restricted and Offshore Banking 
------------------------------- 
 
The Monetary Authority of Singapore (MAS) has issued 25 new 
wholesale bank licenses since 2001 as part of its liberalization 
 
SINGAPORE 00002016  007 OF 008 
 
 
program.  MAS continues to upgrade certain existing offshore banks 
to wholesale bank status.  New foreign bank entrants are also 
eligible to apply for wholesale banking licenses.  Unless otherwise 
approved by MAS, wholesale banks can operate in only one location. 
 
Restrictions on Singapore Dollar Lending 
---------------------------------------- 
 
Non-residents can borrow local currency freely if the proceeds are 
used in Singapore.  Non-resident financial entities may borrow local 
currency freely for their use in or outside Singapore if the amount 
does not exceed S$5 million (US$3.3 million); if it does, the amount 
must be swapped or converted into foreign currency upon drawdown. 
There are no controls on the borrowing of Singapore dollars by 
residents.  MAS requires banks to report their monthly aggregate 
outstanding Singapore dollar lending to non-resident financial 
institutions. 
 
Securities 
---------- 
 
In January 2002, Singapore removed all trading restrictions on 
foreign-owned stockbrokers.  Aggregate investment by foreigners, 
however, may not exceed 70 percent of the paid-up capital of dealers 
that are members of the Singapore Exchange Limited.  Foreign funds 
may be registered directly, provided the prospectus is from an 
entity registered as a foreign company in Singapore and the fund is 
approved by MAS. 
 
Distribution Services 
--------------------- 
 
The Ministry of Trade and Industry implemented a Multi-Level 
Marketing and Pyramid Selling (Excluded Schemes and Arrangements) 
Order in January 2002 to clarify which kinds of multi-level and 
direct marketing/selling arrangements, whether local or foreign, are 
legal in Singapore.  The order prohibits compensation for 
recruitment of participants.  It prohibits any Singapore-registered 
company or citizen/resident from promoting any overseas pyramid 
selling marketed through the Internet.  Insurance businesses 
licensed under the Insurance Act and its subsidiary legislation, 
master franchise schemes, and direct selling schemes that meet 
conditions listed in the Order are exempted from the Act. 
 
Energy 
------ 
 
Singapore implemented the Gas (Amendment) Act in June 2007 to 
facilitate competition and move towards a fully liberalized energy 
market, in part by opening access to gas pipeline infrastructure. 
However, at least one U.S. company has encountered difficulties in 
its access bid due to lengthy delays in the review of its 
application by the Energy Market Authority.  To date, no 
non-incumbent operators have been able to secure access to the 
Singapore section of the existing Sumatra-Singapore pipeline. 
 
INVESTMENT BARRIERS 
------------------- 
 
Singapore has a generally open investment regime and no overarching 
screening process for foreign investment.  Singapore places no 
restrictions on reinvestment or repatriation of earnings and 
capital.  The investment chapter of the FTA provides for national 
and most-favored nation treatment, the right to make financial 
transfers freely and without delay, disciplines on performance 
requirements, international law standards for expropriation and 
compensation, and access to binding international arbitration. 
 
ELECTRONIC COMMERCE 
------------------- 
 
Singapore has no significant barriers hindering the development and 
use of electronic commerce. The FTA contains state-of-the-art 
provisions on electronic commerce, including national treatment and 
most-favored nation obligations for products delivered 
electronically, affirmation that services disciplines cover all 
services delivered electronically, and permanent duty-free status of 
products delivered electronically. 
 
Singapore considers the Internet to fall within the scope of its 
Broadcasting Act.  Internet service providers must channel all 
Internet traffic through Internet access service providers that 
function as main "gateways" to the Internet.  Internet service 
resellers, Internet content providers, individuals who put up 
personal web pages, software developers, providers of raw financial 
 
SINGAPORE 00002016  008 OF 008 
 
 
information and news wire services do not have to register with the 
Singapore Broadcasting Authority. 
 
OTHER BARRIERS 
-------------- 
 
Competition 
----------- 
 
The FTA contains specific conduct guarantees to ensure that 
commercial enterprises in which the Singapore government has 
effective influence will operate on the basis of commercial 
considerations and will not discriminate in their treatment of U.S. 
firms.  In accordance with its FTA commitments, Singapore enacted 
the Competition Act in 2004.  Phase I established the Competition 
Commission of Singapore in January 2005.  Phase II involved the 
implementation of provisions on anticompetitive agreements, 
decisions and practices, abuse of dominance, enforcement, and the 
appeals process, which came into effect in 2006.  Phase III 
provisions pertaining to mergers and acquisitions came into effect 
in July 2007.  The government's initial decisions under the 
Competition Act have focused primarily on services, including 
exemptions for the aviation sector. 
 
The FTA includes obligations for greater transparency among 
government enterprises with substantial revenues or assets. 
Singapore has an extensive network of government-linked corporations 
that are active in many sectors of the economy.  Some sectors, 
notably telecommunications, power generation/distribution, media and 
financial services, are subject to sector-specific regulatory bodies 
and competition regulations typically less rigorous than those being 
implemented under the Competition Act. 
 
U.S. industry has expressed concerns about the lack of adequate 
trade secrets protections under Singapore law that would provide 
specific legal protections for commercially sensitive proprietary 
information. 
 
Transparency 
------------ 
 
In keeping with the FTA's transparency obligations, Singapore has 
circulated more draft laws and regulations for public comment, 
including those relating to the implementation of the FTA. 
 
HERBOLD