Singapore is a major logistics hub in the Asia-Pacific region. It is the world’s busiest seaport in the world in terms of container throughput1. It is also the world’s busiest transshipment port and handles half of the world’s annual supply of crude oil2. The city-state is also an internationally respected and renowned aviation hub in the Asia Pacific.
Singapore’s strategic location, as well as its excellent connectivity via an extensive network of air and sea links, makes it an attractive location for leading international third party logistics players, generating a healthy demand for logistics properties.
The Singapore government views the logistics industry as a critically important one and has taken several initiatives that help maintain the country’s leadership position as a global logistics hub and leading supply chain management nerve centre. Examples of some key government initiatives are the Air Hub Development Fund (which provides incentives to attract new and existing airlines to expand their operations at Changi International Airport), the Zero GST Warehouse Scheme (which allows approved warehouse operators to bypass the Goods and Services Tax), the Approved International Shipping Enterprise Scheme (which encourages international ship-owning and ship-operating companies to establish operations in Singapore) and the Approved Shipping and Logistics Scheme (which offers established ship agencies and international logistics operators incentives to use Singapore as a base for providing freight and logistics services). Such positive government initiatives encourage the further development of Singapore as a leading global logistics hub.
In addition to such pro-business government policies, Singapore’s pre-eminent position as a global logistics hub is supported by modern infrastructure, high-tech global telecommunication links, efficient and highly skilled manpower and well developed finance and regulatory frameworks.
1Containerisation International
2http://en.wikipedia.org/wiki/Port_of_Singapore