Getting your product into market
Given Singapore’s compact size and excellent infrastructure, different market entry strategies can be employed. Issues exporters need to be aware of include:
- importers generally undertake the warehousing and distribution
- there are some specialist distributors to the hotels, restaurants and institutions (HRI) trade who do not import
- many retailers import direct.
Companies interested in entering the wider region should also consider teaming up with Singapore firms to take advantage of their extensive regional networks.
Singapore is virtually a free port. The main dutiable items are petroleum products, liquor, motor vehicles and tobacco products.
Some items can only be imported if an importer has an endorsement or import licence. These include animals, meat products, films, tapes, CD-ROMs, medicines and telecommunications equipment.
There are few packaging and labelling regulations. Products complying with New Zealand regulations should be acceptable in Singapore.
Tax
A goods and services tax of 7 percent is levied. A 10 percent service charge and 1 percent government tax applies on accommodation and food and beverages consumed in hotels and restaurants.
Logistics
Singapore Airlines has daily flights between the two countries. Every week it also operates two cargo freighter services.
Major shipping lines servicing Singapore include P&O Nedlloyd and Pacific International Line. However other shipping lines also provide services to Singapore, either directly, on round the world routes, by charter or through transhipment in other ports.
Opportunities
- Singapore is part of the ASEAN (Association of Southeast Asian Nations), Australia and New Zealand Free Trade Agreement. The agreement will eliminate tariffs between member nations.
- New Zealand dairy products, apples, kiwifruit and beef have built a good profile in the market, something other food and beverage suppliers can use to their advantage.
- Singapore sees itself as a hub for the region and a large number of international telecommunications and electronics companies have built research and development or production facilities on the island. Components, or built up products from New Zealand, are finding markets with these companies.
- Some New Zealand business software companies are established in the market. New Zealand web-enabled programs offering comprehensive solutions are beginning to be appreciated. Other areas of interest include health information technology, e-learning, security and wireless products.
- New Zealand has attracted university students from Singapore for many years. There is a growing appreciation in Singapore too for New Zealand’s polytechnic institutes. Teaching innovation and creativity is a major area.
- Singaporeans are becoming more health and image conscious and have a high level of disposable income. This means demand for items such as skin care and cosmetics, clothing, spa treatments, supplements and other high-end products.
Cultural and business tips
- New Zealand passport holders enter Singapore visa free.
- Singapore is largely bilingual, with English and Mandarin most commonly spoken. English is considered the language of administration and international business.
- Singapore is relatively Westernised, but it does have business customs that differ from New Zealand’s. It is important to follow them to avoid offending or alienating business contacts.
- Business cards are necessary in all business introductions.
