Singapore remained the 15th largest trading partner of the United States and became the 9th largest export market in 2006, according to U.S. Census trade data. Two-way trade increased 19% to US$42.5 billion while exports grew by nearly 20% to US$24.7 billion. The data reflect Singapore’s important role as a major distribution center, serving as the gateway to the region. Many of the industrial inputs imported into Singapore are eventually re- exported as finished and semi-finished products to other markets in Southeast Asia and worldwide. Singapore was home to the world’s busiest container port in 2006.
Beyond its role as an entrepôt, Singapore is one of the most highly developed and sophisticated industrial, commercial, financial and consumer economies in the world. With a per capita GDP of more than US$30,000, Singapore is an excellent market for a wide variety of U.S. products and services. The U.S.-Singapore Free Trade Agreement that came into effect on January 1, 2004, expanded U.S. market access in goods, services, investment, and government procurement. It also enhanced intellectual property protection, and provided for cooperation in promoting labor rights and the environment.
The Singapore economy grew 7.9% in 2006. Some economists forecast a more sustainable growth rate of 5-6% in 2007; the official forecast is 4.5-6.5%. Foreign investments, combined with investments through government-linked corporations, underpin Singapore's open, heavily trade-dependent economy. Singapore's aggressive pursuit of foreign investment as a pillar of its overall economic strategy has enabled the country to evolve into a base for multinational corporations (MNCs). More than 1,500 U.S. firms operate in Singapore and many have their Asia Pacific overseas headquarters here.
According to KPMG Competitive Alternatives Study 2006, Singapore was ranked the most competitive place for business in the world. The World Bank’s report, “Doing Business 2007: How to Reform,” ranked Singapore as the easiest country in which to do business. The island city-state has an excellent infrastructure, including an airport and seaport that are among the best in the world, an extensive road network and subway system, state-of-the-art telecommunications facilities and reliable public utilities.