Singapore a Top Logistics Hub
- Posted by admin
- 09 August 2013
According to a report by the World Bank, Singapore is a leading transportation and logistics hub in the world. The leading financial institution ranked the country as number 1 in the category amidst 155 different countries in the Logistics Performance Index 2012.
The reason why is apparent. It is strategically located right in the heart of South East Asia; a prime spot for neighboring and other countries to conduct trade. Its port is located in the hub of global trade, a fact that contributes to its knowledge intensive economy.
As an Air Cargo Hub
The country also enjoys acclaim as a leading air cargo hub since the Changi Airport opened in 1981. The airport handles over 1.8 million tonnes of cargo every year. Changi also boasts of a 4.7% growth annual growth rate since the last 15 years. Half of that percentage owes to transshipment cargo, which is testament to Singapore’s mutually beneficial connection to other successful economies.
The Stats Speak for Themselves
How does its position as a logistics hub fare for the country’s economy? Singapore houses more than 7000 logistics companies in 2010. This accounts for the employment of over 180,000 people, which in turn makes up 9% of the country’s total workforce and its contribution to the GDP. Therefore, it does not come as a surprise why twenty-one of the 25 top logistics providers in the world have based their headquarters in Singapore.
Many successful economies prefer Singapore as a trade route and it is easy to see why. The country offers traders an extensive network of Free Trade Agreements, Investment Guarantee Agreements and Avoidance of Double Taxation Agreements. Such agreements are effective in facilitating a hitch free flow of services and goods from the country to all over the world. A comprehensive array of sea, air and IT structures is another reason why global economies flock to Singapore for trade.
Other factors that contribute to the country’s position as a booming logistical hub are business friendly import or export structures, efficient customs and the possibility of offering traders simple procedures for the procurement of necessary documentation, permits and clearance for their cargos.
The Government’s Stance on the Country’s Logistics Industry
In order to help the economy grow at a high rate and offer more employment opportunities the Singaporean government is now focusing on developing a knowledgeable economy. The move aims to manage a rapidly growing logistics industry, an aspect that will necessitate the way physical and human resources will regulate in the country. The move will focus on upgrading skills, productivity and innovation.
The country has an impressive base that includes major economies in logistics, excellent connectivity and an unparalleled infrastructure. Therefore, it is no wonder why Singapore enjoys acclaim as a prime hub for supply chain management and a preferred choice for leading manufacturers around the world. Some brands that have established regional headquarters in the country include big names like Hewlett Packard, Novartis, Panasonic and Siemens Medical Instruments.