HOW IMPORTANT IS SINGAPORE AS A RE-EXPORT CENTRE FOR SOUTH ASIA?

Abstract

The trade sector, including the entrepot trade has been one of ·the important sector in our economy for the past few decades. But increasing protectionism and a slow-down in economic growth may have an adverse effect on not only the economy, but also on Singapore's trading position. In view of the above, it may be useful to review Singapore's position as an entrepot centre. The importance of entrepot, though declining, cannot be ignored. Thus this AE attempts to analyse (and highlight) how important is Singapore a re-export centre for other countries particularly the South Asian countries. It should be noted that this AE focuses on trade relations with South Asia because Singapore has positive trade balance with them since the J970s; and this region has grown satisfactorily in the 1980's. Thus South Asia may provide an additional avenue for diversfying our sources of trade, investment and technology. But before such analysis is made, the existing trade relations between Singapore and South Asia need to be examined. The nature of intra-industry trade and factors that have contributed to Singapore's success as an entrepot are also looked into. This AE also attempts to identify the possibilities of increasing South-South trade relations; for example, the feasibility of joint-ventures between Singapore and India for Third country marketing. It is my hope that this AE will provide insights into the importance of Singapore as a re-export centre for South Asia. And it is my hope too that the suggestions offered in this AE will provide avenues to enhance our trade sector particularly entrepot trade.