Singapore; economic slowdown has not hurt trade scene - Business Outlook Abroad

Business America, Dec 8, 1986

The United States && Foreign Commercial Service (US&FCS) helps find opportunities for U.S. firms, products and services, and assists firms to take advantage of those opportunities. The US&FCS has identified the following market sectors as providing best prospects for U.S. exports to Singapore in 1987.

Aviation and Avionics Support Equipment: Singapore is a comprehensive regional repair and overhaul center where a wide range of specialized repair activities are performed. Imported aerospace equipment (including aircraft) in 1985 amounted to $1,016 million, an increase of about 12 percent over 1984. The United States is the largest supplier of aircraft and airborne equipment.

Scientific/Analytical and Laboratory Equipment: The import of scientific/analytical and laboratory instruments should keep pace with continued upgrading and restructuring of Singapore into a technology center. The local market is supplied almost entirely by imports, which in 1985 were $25 million and should reach $28 million in 1986.

Electronics Industry Production & Test Equipment (EIPT): The Electronics industry, one of the largest in Singapore, reached a record output of $4 billion in 1985. New invesment commitments reached $280 million in 1985 and continue to be strong. Singapore continues to give hgh priority to developing this sector and to encouraging such front-end processes as wafer fabrication and integrated circuit design. Total import of EIPT equipment hit $25 million in 1985 and is projected to reach $33 million by 1989.

Biotechnology: Biotechnology has been targeted as a growth industry for the future, and establishment of an Insstitute of Molecular and Cell Biology at the National University indicates Singapore's commitment to its nurturing. As part of a financial package to promote biotechnology, the government has offered incentives to allow a local company to write off 50 percent of losses sustained in high risk, high-tech projects. Although the domestic market is small, the country's traditional role as regional distributor should be attractive to American firms.

Food Processing and Packaging Machinery (FP&P): Local tastes have begun to tilt towards convenience food and upmarket food products, backed by official encouragement of R&D in food processing and process engineering through link-ups between food companies and institutions. The market for FP&P equipment, worth $16 million in 1985, declined slightly from 1984, but demand for processing aseptic carton-filling machines and form, and fill and seal machines should grow significantly in the future.

Automation Equipment & Industrial Robots: Government encouragement has greatly increased the use of automation equipment and industrial robots, with more than 750 manipulators and robots now used in such diverse operations as plastic injection moldings production, die casting, spray painting, arc welding, and automated printed circuit board assembly. To hasten the pace, the Economic Development Board has joined industry to set up a robot leasing and consultancy firm to lease industrial robots and other automatic equipment and provide related automation consultancy services.