PESTL ANALYSIS OF SINGAPOR

BY:NIHARIKA KUMARI,ROLL NO.21 2/28/2012

Official Name: Republic of Singapore

PROFILE Geography Area: 712.4 sq. km. Cities: Capital--Singapore (country is a city-state). Terrain: Lowland. Climate: Tropical. People Population (June 2011): 5.184 million (including permanent residents, foreign workers). Annual population growth rate (2011): 2.1% (total); 0.5% (Singapore citizens and permanent residents). Ethnic groups (June 2011): Chinese 74.1%, Malays 13.4%, Indians 9.2%, others 3.3%.

Religions: Buddhist, Taoist, Muslim, Christian, Hindu. Languages: English, Mandarin and other Chinese dialects, Malay, Tamil. Education: Years compulsory--6. Literacy (2010)-95.9%. Health: Infant mortality rate (2010)--2.0/1,000. Life expectancy (2010)--79.3 years male, 84.1 years female. Work force (Dec. 2010; 3.1059 million): Manufacturing-17.3%; services--69.3%; construction--12.7%. Government Type: Parliamentary republic. Constitution: June 3, 1959 (amended 1965 and 1991). Independence: August 9, 1965. Branches: Executive--president (chief of state, 6-year term); prime minister (head of government). Legislative-unicameral Parliament. Judicial--High Court, Court of Appeal, subordinate courts. Political parties: People's Action Party (PAP), Workers' Party (WP), Singapore People's Party (SPP), Singapore Democratic Party (SDP), Singapore Democratic Alliance (SDA), National Solidarity Party (NSP), Reform Party (RP). Suffrage: Universal and compulsory at 21. Central government budget (FY 2011): Total expenditures U.S. $37.09 billion (47.10 billion Singapore dollars, at a 1.27 exchange rate). Defense (FY 2011): 4.0% of gross domestic product. National holiday: August 9.

Economy GDP (2010 nominal prices): $222.7 billion. Annual real growth rate: 8.8% (2007), 1.5% (2008), 0.8% (2009), 14.5% (2010). Per capita GDP (2010): $43,867. Natural resources: None. Agriculture (under 0.5% of GDP): Products--poultry, orchids, vegetables, fruits, ornamental fish. Manufacturing (22.2% of real GDP): Types--electronic and electrical products and components, petroleum products, machinery and metal products, chemical and pharmaceutical products, transport equipment (mainly aircraft repairs/maintenance, shipbuilding/repair and oil rigs), food and beverages, printing and publishing, optical and photographic equipment, plastic products/modules, instrumentation equipment. Trade (2010): Exports--$351.18 billion: petroleum products, food/beverages, chemicals, pharmaceuticals, industrial machinery and equipment, electronic components, telecommunication apparatus, transport equipment. Major markets--Malaysia (11.9%), Indonesia (9.4%), Hong Kong (11.7%), EU (9.8%), China (10.3%), United States (6.4%), and Japan (4.7%). Imports-$310.39 billion: aircraft, crude oil and petroleum products, electronic components, radio and television receivers/parts, motor vehicles, chemicals, food/beverages, iron/steel, electricity generators. Major suppliers--EU (12.3%), Malaysia (11.7%), United States (11.2%), China (10.8%), and Japan (7.9%).

PEOPLE Singapore is one of the most densely populated countries in the world. The annual population growth rate for 2011 was 2.1%, including resident foreigners. Singapore has a varied linguistic, cultural, and religious heritage. Malay is the national language, but Chinese, English, and Tamil also are official languages. English is the language of administration and also is widely used in the professions, businesses, and schools. The government has mandated that English be the primary language used at all levels of the school systems, and it aims to provide at least 10 years of education for every child. In 2010, primary and secondary school students totaled about 478,294, or 9.4% of the entire population. In 2010, enrollment at public universities was 74,534 (full-time/part-time) and 83,542 at the polytechnics. The Institute of Technical Education for basic technical and commerce skills has 24,789 students. The country's literacy rate is 95.9%. Singapore generally allows religious freedom, although religious groups are subject to government scrutiny, and some religious sects are restricted or banned. Almost all Malays are Muslim; other Singaporeans are Taoists, Buddhists, Confucianists, Christians, Hindus, or Sikhs.

HISTORY Although Singapore's history dates from the 11th century, the island was little known to the West until the 19th century, when in 1819, Sir Thomas Stamford Raffles arrived as an agent of the British East India Company. In 1824, the British purchased Singapore Island, and by 1825, the city of Singapore had become a major port, with trade exceeding that of Malaya's Malacca and Penang combined. In 1826, Singapore, Penang, and Malacca were combined as the Straits Settlements to form an outlying residency of the British East India Company; in 1867, the Straits Settlements were made a British Crown Colony, an arrangement that continued until 1946. The opening of the Suez Canal in 1869 and the advent of steamships launched an era of prosperity for Singapore as transit trade expanded throughout Southeast Asia. In the 20th century, the automobile industry's demand for rubber from Southeast Asia and the packaging industry's need for tin helped make Singapore one of the world's major ports. In 1921, the British constructed a naval base, which was soon supplemented by an air base. But the Japanese captured the island in February 1942, and it remained under their control until September 1945, when the British returned.

In 1946, the Straits Settlements was dissolved; Penang and Malacca became part of the Malayan Union, and Singapore became a separate British Crown Colony. In 1959, Singapore became self-governing, and, in 1963, it joined the newly independent Federation of Malaya, Sabah, and Sarawak--the latter two former British Borneo territories--to form Malaysia. Indonesia adopted a policy of "confrontation" against the new federation, charging that it was a "British colonial creation," and severed trade with Malaysia. The move particularly affected Singapore, since Indonesia had been the island's second-largest trading partner. The political dispute was resolved in 1966, and Indonesia resumed trade with Singapore. After a period of friction between Singapore and the central government in Kuala Lumpur, Singapore separated from Malaysia on August 9, 1965, and became an independent republic. GOVERNMENT According to the constitution, as amended in 1965, Singapore is a republic with a parliamentary system of government. Political authority rests with the prime minister and the cabinet. The prime minister is the leader of the political party or coalition of parties having the majority of seats in Parliament. The president, who is chief of state, previously exercised only ceremonial

duties. As a result of 1991 constitutional changes, the president is now supposed to be elected and exercises expanded powers over legislative appointments, government budgetary affairs, and internal security matters. The last presidential election was in August 2011. The unicameral Parliament consists of 87 members elected on the basis of universal adult suffrage, and up to nine "nominated" members of Parliament (NMPs). In addition, a constitutional provision assures at least nine opposition members in Parliament, even if fewer than nine actually are elected; these are known as nonconstituency members of Parliament (NCMPs). The president appoints nominated members of Parliament from among nominations by a special selection committee. Nominated members of Parliament enjoy the same privileges as members of Parliament but cannot vote on constitutional matters or expenditures of funds. The maximum term of Parliament is 5 years. NMPs serve for 2-year terms. In the May 7, 2011 general election, the governing People's Action Party (PAP) won 81 of the 87 elective seats of the 12th Parliament. The opposition Workers' Party won the remaining six seats. There are three NCMPs in the 12th Parliament, two from the Workers' Party and one from the Singapore Peoples Party. Voting has been compulsory since 1959.

Judicial power is vested in the High Court and the Court of Appeal. The High Court exercises original criminal and civil jurisdiction in serious cases as well as appellate jurisdiction from subordinate courts. Its chief justice, senior judge, and 12 judges are appointed by the president. Appeals from the High Court are heard by the Court of Appeal. The right of appeal to the Privy Council in London was abolished effective April 1994. Principal Government Officials President--Tony TAN Keng Yam Prime Minister--LEE Hsien Loong Deputy Prime Minister--TEO Chee Hean Deputy Prime Minister--Tharman SHANMUGARATNAM Ministers Community Development, Youth and Sports (Acting)-CHAN Chun Sing Defense--NG Eng Hen Education--HENG Swee Keat Environment and Water Resources--Vivian BALAKRISHNAN Finance--Tharman SHANMUGARATNAM Foreign Affairs--K. SHANMUGAM Health--GAN Kim Yong Home Affairs--TEO Chee Hean Information, Communications and the Arts--YAACOB Ibrahim

Law--K. SHANMUGAM Manpower--Tharman SHANMUGARATNAM National Development--KHAW Boon Wan Trade and Industry--LIM Hng Kiang Transport--LUI Tuck Yew Prime Ministers Office--LIM Swee Say, S. ISWARAN Ambassador to the United Nations--K. V. Vanu Gopala MENON Ambassador to the United States--CHAN Heng Chee Singapore maintains an embassy in the United States at 3501 International Place NW, Washington, DC 20008 (tel. 202/537-3100, fax 202/537-0876). POLITICAL CONDITIONS The ruling political party in Singapore, reelected continuously since 1959, is the People's Action Party (PAP), headed by Prime Minister Lee Hsien Loong. The PAP has held the overwhelming majority of seats in Parliament since 1966, when the opposition Barisan Sosialis Party (Socialist Front), a left-wing group that split off from the PAP in 1961, resigned from Parliament, leaving the PAP as the sole representative party. In the general elections of 1968, 1972, 1976, and 1980, the PAP won all of the seats in an expanding Parliament. Then-Workers' Party Secretary General J.B. Jeyaretnam

(who died in 2008) became the first opposition party member of Parliament in 15 years when he won a 1981 by-election. Opposition parties gained small numbers of seats in the general elections of 1984 (2 out of 79), 1988 (1 of 81), 1991 (4 of 81), 1997 (2 of 83), 2001 (2 of 84), 2006 (2 of 84), and 2011 (6 of 87). Meanwhile, the PAP's share of the popular vote in contested seats decreased from 75% in 2001 to 60.1% in 2011. In the 2011 election, opposition parties together contested 82 of the 87 seats, the largest number ever. ECONOMY Singapore's strategic location on major sea lanes and its industrious population have given the country an economic importance in Southeast Asia disproportionate to its small size. Upon independence in 1965, Singapore was faced with a lack of physical resources and a small domestic market. In response, the Singapore Government adopted a pro-business, pro-foreign investment, export-oriented economic policy framework, combined with state-directed investments in strategic government-owned corporations. Singapore's economic strategy proved a success, producing real growth that averaged 8.0% from 1965 to 2010. The worldwide electronics slump in 2001 and the outbreak of severe acute respiratory syndrome (SARS) in 2003 dealt blows to the economy, but growth bounced back each time, driven by world demand for electronics, pharmaceuticals, other manufactured goods, and

financial services, particularly in the economies of its major trading partners--the United States, the European Union, Japan, and China, as well as expanding emerging markets such as India. The global financial crisis of 2008 and 2009 had a sharp impact on Singapore's open, trade-oriented economy. Singapore saw its worst two quarters of contraction in late 2008 and early 2009, but quickly recovered with strong performance in later quarters. The Singapore economy grew a staggering 14.5% in 2010, the second-highest rate in the world that year. Singapore's largely corruption-free government, skilled work force, and advanced and efficient infrastructure have attracted investments from more than 7,000 multinational corporations from the United States, Japan, and Europe. Also present are 1,500 companies from China and another 1,500 from India. Foreign firms are found in almost all sectors of the economy. Multinational corporations account for more than twothirds of manufacturing output and direct export sales, although certain services sectors remain dominated by government-linked companies. Manufacturing (including construction) and services are the twin engines of the Singapore economy and accounted for 26.7% and 67.5%, respectively, of Singapore's gross domestic product in 2010. The electronics and biomedical manufacturing industries

lead Singapore's manufacturing sector, accounting for 31.4% and 19.6%, respectively, of Singapore's manufacturing output in 2010. To inject new life to the tourism sector, the government in April 2005 approved the development of two casinos that resulted in investments of more than U.S. $5 billion. Las Vegas Sands' Marina Bay Sands Resort and Genting International's Resort World Sentosa opened their doors in early 2010. To maintain its competitive position despite rising wages, the government seeks to promote higher valueadded activities in the manufacturing and services sectors. It also has opened, or is in the process of opening, the financial services, telecommunications, and power generation and retailing sectors to foreign service-providers and greater competition. The government also has pursued cost-cutting measures, including tax cuts and wage and rent reductions, to lower the cost of doing business in Singapore. The government is actively negotiating eight free trade agreements (FTAs) with emerging economic partners and has already concluded 18 FTAs with many of its key trade partners, including one with the United States that came into force January 1, 2004. As a member of the Association of Southeast Asian Nations (ASEAN), Singapore is part of the ASEAN Free Trade Area (AFTA), and is signatory to ASEAN FTAs with China, Korea, Japan, India, and a joint agreement with New

Zealand and Australia. Singapore is also a party to the Transpacific Strategic Economic Partnership Agreement, which includes Brunei, Chile, and New Zealand. Trade, Investment, and Aid Singapore's total trade in 2010 amounted to $661.58 billion, up 20.7% from 2009. In 2010, Singapore's imports totaled $310.39 billion, and exports totaled $351.18 billion. Malaysia was Singapore's main import source country, as well as its largest export market, absorbing 11.9% of Singapore's exports, followed by Hong Kong (11.7%). Other major export markets include the United States (6.4%), China (10.3%), and Indonesia (9.4%). Singapore was the 13th-largest trading partner of the United States in 2010. Re-exports accounted for 48.1% of Singapore's total sales to other countries in 2010. Singapore's principal exports are petroleum products, food and beverages, chemicals, pharmaceuticals, electronic components, telecommunication apparatus, and transport equipment. Singapore's main imports are aircraft, crude oil and petroleum products, electronic components, consumer electronics, industrial machinery and equipment, motor vehicles, chemicals, food and beverages, electricity generators, and iron and steel. Singapore continues to attract investment funds on a large scale despite its relatively high-cost operating

environment. The United States leads in foreign investment, accounting for 15.2% of new actual investment in the manufacturing sector in 2010. As of 2010, the stock of investment by U.S. companies in the manufacturing and services sectors in Singapore reached about $106.04 billion (total assets). The bulk of U.S. investment is in electronics manufacturing and the finance and insurance industries. Non-bank holding companies accounted for 59.2% of total investment. About 2,000 U.S. firms operate in Singapore. The government also has encouraged firms to invest outside Singapore, with the country's total direct investments abroad reaching $247.06 billion by the end of 2009. China was the top destination, accounting for 17.1% of total overseas investments, followed by the United Kingdom (12.3%), Malaysia (8.4%), Hong Kong (6.3%), Thailand (5.7%), Indonesia (7.7%), Australia (6.8%), and the United States (3.5%). Labour As of December 2010, Singapore had a total labor force of about 3.1 million. The National Trades Union Congress (NTUC), the sole trade union federation, comprises almost 99% of total organized labor. Extensive legislation covers general labor and trade union matters. The Industrial Arbitration Court handles labor-management disputes that cannot be resolved informally through the Ministry of Labor. The Singapore

Government has stressed the importance of cooperation between unions, management, and government ("tripartism"), as well as the early resolution of disputes. There have been no strikes since 1986. Singapore has enjoyed virtually full employment for long periods of time. In tandem with the global economic crisis and the economys contraction, resident unemployment reached as high as 4.9%. However, the overall and resident unemployment rates dipped to 2.0% and 2.9%, respectively, by the end of September 2011 due to the Singapore Governments job-saving measures and a gradually improving global economy. Some of Singapore's unemployment is attributable to structural changes in the economy, as low-skill manufacturing operations have moved overseas. Since 1990, the number of foreign workers in Singapore has increased rapidly, helping meet some labor shortages. Foreign workers comprise 35.8% of the labor force; the great majority of these are unskilled workers. Transportation and Communications Situated at the crossroads of international shipping and air routes, Singapore is a center for transportation and communication in Southeast Asia. Singapore's Changi International Airport is a regional aviation hub served by 80 airlines. A third terminal opened in January 2008, and a dedicated low-cost terminal for budget airlines has operated since 2006. The Port of Singapore is the

world's second-busiest for containerized transshipment traffic after Shanghai. The country also is linked by road and rail to Malaysia and Thailand. Telecommunications and Internet facilities are state-ofthe-art, providing high-quality communications with the rest of the world. Singapore is rolling out a nationwide broadband network that promises high-speed Internet connections at lower prices. Sixty percent of the country was covered as of the end of 2010. Eighty-one percent of the countrys inhabitants have household Internet access. Government-linked companies and organizations operate all domestic broadcast television channels and almost all radio stations. Only one radio station, the BBC World Service, is completely independent. Cable subscribers have access to numerous foreign news channels. The print media is dominated by a company with close ties to the government. Daily newspapers are published in English, Chinese, Malay, and Tamil. DEFENSE Singapore relies primarily on its own defense forces, which are continuously being modernized. The defense budget accounts for approximately 30.5% of government operating expenditures (or 4.0% of GDP). A career military force of 55,000 is supplemented by 300,000 persons, either on active National Service, which is compulsory for able-bodied young men, or on Reserve.

The Singapore Armed Forces engage in joint training with Association of Southeast Asian Nations (ASEAN) countries and with the United States, Australia, New Zealand, China, and India. Singapore also conducts military training in the United States, Australia, and on Taiwan. Singapore is a member of the Five-Power Defense Arrangement together with the United Kingdom, Australia, New Zealand, and Malaysia. The arrangement obligates members to consult in the event of external threat and provides for stationing Commonwealth forces in Singapore. Singapore has consistently supported a strong U.S. military presence in the Asia-Pacific region. In 1990, the United States and Singapore signed a memorandum of understanding (MOU) which allows United States access to Singapore facilities at Paya Lebar Airbase and the Sembawang wharves. Under the MOU, a U.S. Navy logistics unit was established in Singapore in 1992; U.S. fighter aircraft deploy periodically to Singapore for exercises, and a number of U.S. military vessels visit Singapore. The MOU was amended in 1999 to permit U.S. naval vessels to berth at the Changi Naval Base, which was completed in early 2001. In July 2005, the United States and Singapore signed a Strategic Framework Agreement to expand cooperation in defense and security.

FOREIGN RELATIONS Singapore is nonaligned. It is a member of the United Nations and several of its specialized and related agencies, and also of the Non-Aligned Movement and the Commonwealth. The country has participated in UN peacekeeping/observer missions in Kuwait, Angola, Namibia, Cambodia, and Timor-Leste. Singapore supports two Provincial Reconstruction Teams and provides refueling aircraft in support of international efforts in Afghanistan. It strongly supports regional and international anti-piracy efforts, and has undertaken a leadership role in anti-piracy efforts in the Gulf of Aden. Singapore supports the concept of Southeast Asian regionalism and plays an active role in ASEAN, the ASEAN Regional Forum, and the Asia Pacific Economic Cooperation (APEC) forum.

TECHNOLOGY IN SINGAPORE
Computer Hardware and Software in Singapore

Software production development because of its skilled work force. Investors such as Fujitsu Pte Ltd, Lotus Development, and Xerox have set up software development and production operations in Singapore in order to take advantage of the work force and the location.

By producing software in Singapore, the country can easily become a distribution hub for the rest of Asia due to its strategic location. The current domestic software industry is limited to customization, localization, and installation. The top two locally owned software developers are Singapore Computer Systems, and Computer Systems Advisors. These two companies deal with systems integration and developing packages for specific customers instead of applications for mass marketing. A substantial percentage of software professionals in Singapore create products that work with software such as sound cards, which has been locally designed. Interviews with software executives show that they feel Singapore is not likely to become a big producer of mass produced software because of the fact that the domestic market is so small and the limited resources of the local companies. However, in the area of software development, Singapore has much of the expertise needed to dominate the local Asian market. Platform usage Local networking software establishments in Singapore are moving towards open platform computing that allows high level connectivity in the network. Estimates taken from surveys of networking software suggest that 10-15% of computers currently networked are using a UNIX operating system with the remaining 90% using DOS or having a DOS requestor. UNIX operating systems are seen as having good opportunities for growth with a projected growth rate of 20%

per year. These types of systems are some of the best platforms for vertical and business applications.(12) The majority of LANS in Singapore are Etharnet rather than token rings. Estimates say that 80% of networks are Etharnet, 15% are token ring, and 5% something else. These percentages are projected to stay somewhat steady but with the changing technology, the large market share of Ethernet may start to decline.(13) Software in dollars Software exports is a area that is rapidly growing for Singapore. In 1991, software exports totaled US$59.6 million and in 1992 grew to US$195.9 million, an increase of 228%. The majority of software sales were from applications software with systems and office automation software coming in second and third respectively. Over the past three years the networking software market has also been expanding with an annual growth rate of 30% and an expected continued growth rate of 15-20% for the next five years.(14) PC usage PC usage often starts in the schools with the young children of Singapore. A recent program that was started is called the Students' and Teachers' Workbench. This program gives middle school students and staff the opportunity to use a variety of multi-media resources. In the schools, there is one computer for every 15-20 students. The NCB of Singapore is trying to improve this ratio to one computer for every three students by the year 2000.(15) PC usage is very evident in the government of Singapore. In 1994, there was a ratio of two computers to every three

government employees. In the private sector many networks connect the nation in the areas of finance, manufacturing, and medicine and in 1994, nine out of every ten companies with more than ten employees was using Information Technology to some extent. Personal computers are also becoming popular in personal market with three out of every ten homes in Singapore owning a personal computer. A tenth of the homes with computers use modems to communicate through the Internet. The number of homes with computers is fairly high and is comparable with the United States. Hardware production and exports In 1990, there were approximately 6,000 mainframes and minicomputers installed in Singapore, which is an increase of over 77% over 1987. The number of microcomputers being used by businesses has also increased from 56,000 in 1987 to 90,000 in 1990.(16) Singapore's largest computer export is disk drives. In 1992, exports were US$5,447.2 million which was an increase of 35% over 1991. Singapore's exports of mainframes, minicomputers, and microcomputers (desktop) decreased between 1991 and 1992 with exports of terminals, disk drives, printers, and components increasing anywhere from 31 to 88%. Singapore is the world's largest producer of hard disk drives and in 1993 hardware production totaled US$10,933,000. When comparing this to other Asian countries, Japan had hardware production of $50,939,000 in 1993, Hong Kong produced $2,306,000 worth of hardware and U.S. hardware production totaled $49,380,000.

Another growing market for Singapore is the CAD/CAM hardware market. Although the United States is the dominant producer of this hardware, Singapore has the ability to become a player in this sector. In 1995, this market was estimated to be $105 million.(17) Over the past few years, this market has grown rapidly and is expected to continue to grow at a slowed rate of 5% over the next three years. Major players in IT sectors Major IT industries in Singapore include data storage, consumer electronics, computer systems, semiconductors, telecommunications, passive components and display devices. Most of the competitors in these markets are not local companies but rather multinational corporations which have been attracted to set up operations in Singapore because of the governments generous incentives. In the area of data storage, products such as rigid disk drives, removable cartridge drives, tape drives, and CD-ROM drives are manufactured. There are fourteen companies that produces these products including Conner Peripherals, Matsushita-Kotobuki Electronics, Rexon, Seagate, Suquest Technology and Western Digital. In the area of computer systems, products such as desktop personal computers, notebook PC's, mobile computers, highend servers, multimedia products, motherboards and related sub-assemblies are produced. Sixteen companies are involved in this area and they include Apple, Compaq, Creative Technology, GES, Hewlett-Packard, and IPC. There are twenty-eight companies that are involved in the semiconductor industry and produce such products as memory chips, ASICs, microprocessors, and power ICs. These

companies include AT&T, Matsushita National Semiconductor, NEC, TECH and Texas Instruments. There are eight companies competing in the telecommunications industry including AT&T, Goldtron, Motorola, and PCI. These companies produce such products as pagers, cordless phones, communication antennas, navigation products, two-way radios, and cellular phones. The final area in which there are a number of competing firms is the passive components and display devices arena. There are forty-five companies that produce products such as cathode ray tubes (CRT's), LCD's, capacitors, resistors, conductors, and quartz components. These companies include Coilcraft, Matsushita, Murata, Nichicon, and Singapore Chemicon.(18) In addition to these major multinationals there are a number of local competitors which are making their mark in the IT industry. For example, Creative Technology is a local IT company that is the worlds largest producer of sound cards. Many feel this proves that Singapore companies are fully capable of being successful in the world market.

Legal analysis
1.1 The Singapore legal system is a rich tapestry of laws, institutions, values, history and culture. Like the Singapore-made quilt, each strand of the legal system is woven together to form a jurisprudential kaleidoscope bounded by a unique national identity. 1.1.2 The legal system will inevitably undergo tension as socio-economic and politico-legal changes unfold with increased globalisation and regionalisation. Thus, Singapore has to respond swiftly and deftly in creating new laws and institutions or adapting existing ones. 1.1.3 In this regard, Singapore is and has been ready and willing to learn from the legal developments taking place in foreign jurisdictions with similar aspirations. Sometimes, old solutions may have to be discarded and new fangled ideas tested with appropriate modifications to suit local circumstances. In this process of the (sometimes) rigorous adaptation, learning and constant change, however, history remains a useful (though not infallible) guide for the present and the future path of Singapore law (see Section 2).

SECTION 2 CONSTITUTIONAL AND LEGAL HISTORY 1.2.1 From its founding by Sir Thomas Stamford Raffles of the British East India Company in 1819 to its they suited the local circumstances. With independence in

1965, Singapores legal development had been intricately linked with its British colonial master. Often, English legal traditions, practices, case law and legislation were adopted without much consideration as to whether independence, there

has been a gradual and increasing movement towards developing an autochthonous legal system. The guiding principle is that the adoption of any legal practice or norm must be compatible with Singapores cultural, social and economic requirements. In this regard, the economic success of Singapore can be attributed, amongst others, to the wisdom of its leadership, its use of laws and the legal system to build a new society and entrench its economic survival while ensuring that the legal system is attuned to the needs and demands of the international community. What follows is a sketch of the milestones in Singapores legal and constitutional development.

THE JUDICIARY International Reputation 1.7.1 The great efficiency and strength of the Singapore Judiciary has won her several accolades and a strong international reputation (see the rankings of the worlds legal systems by Political and Economic Risk Consultancy (PERC) and the Institute for Management Development (IMD)). Strict case management and Alternative Dispute Resolution methods (see Section 9 below) have reduced drastically the backlog of cases which had plagued both the Supreme Court and Subordinate Courts in the 1980s. The Honourable Chief Justice Chan Sek Keong, since his appointment with effect from 11 April 2006, has focused on implementing initiatives to enhance access of justice and the development of substantive jurisprudence in Singapore. Community courts have, for instance, been established to deal with special types of cases and offenders (such as youthful offenders, offenders with mental disabilities, family violence cases and cases involving race relations). A Bail Court was set up in 2007 to deal exclusively with bail matters (in particular, the determination of bail and its quantum). The courts continually attempt to engage the public in the work of the judiciary. In March 2009, the Supreme Court organised a successful open house, The Living Courthouse, as the highlight of its outreach

efforts to remove, in the words of Chief Justice Chan Sek Keong, the mysterious atmosphere where strange rituals and exchanges are seen to take place between judges, counsel and witnesses. Function and Powers 1.7.2 The judge is the arbiter of both law and fact in Singapore. The jury system had been severely limited in Singapore and was entirely abolished in 1970. Judicial power is vested in the Supreme Court (comprising the Singapore Court of Appeal and the High Court) as well as the Subordinate Courts. The Court of Appeal 1.7.3 The highest court of the land is the permanent Court of Appeal which hears both civil and criminal appeals emanating from the High Court and the Subordinate Courts. As a significant watermark of Singapores legal history, appeals to the Privy Council in England were abolished in 1994. The Practice Statement on Judicial Precedent issued by the Supreme Court on 11 July 1994 clarified that the Singapore Court of Appeal is not bound by its own decisions as well as prior decisions of the Privy Council. However, it would continue to treat such prior decisions as normally binding, though it may depart from the prior precedents where it appears right to do so.

The High Court 1.7.4 The High Court Judges enjoy security of tenure whilst the Judicial Commissioners are appointed on a short-term contract basis. Both, however, enjoy the same judicial powers and immunities. Their judicial powers comprise both original and appellate jurisdiction over both civil and criminal matters. Some of the High Court judges are specially designated to hear cases in specific legal areas such as arbitration admiralty and intellectual property. The Constitutional Tribunal 1.7.5 A special Constitutional Tribunal was also established, within the Supreme Court, to hear questions referred to by the Elected President on the effect of constitutional provisions. The Subordinate Courts 1.7.6 The Subordinate Courts (consisting of the District Courts, Magistrates Courts, Juvenile Courts, Coroners Courts as well as the Small Claims Tribunals), led by the Chief District Judge, have also been set up within the Singapore judicial hierarchy to administer justice amongst the people. With the increased sophistication in business transactions and law, the Commercial Civil and Criminal District Courts have recently been established within the Subordinate Courts to deal with the more complex cases. Specialist judges have also been appointed on an ad-hoc basis to hear specific complex cases. The District and Magistrates Courts

1.7.7 The District Courts and the Magistrates Courts share the same powers over specific matters such as in contractual or tortious claims for a debt, demand or damage and in actions for the recovery of monies. However, the jurisdictional monetary limits in civil matters for the Magistrates Courts and District Courts are $60,000 and $250,000 respectively. The courts also differ in terms of criminal jurisdiction and sentencing powers. Under the new Criminal Procedure Code 2010(Act 15 of 2010), the Magistrates' Courts have the power to try any offence for which the maximum term of imprisonment provided by law does not exceed 5 years or whcih is punishable with a fine only. As for the Districts Courts, the stipulated maximum term of imprisonment is 10 years. A District Court may pass a sentence of imprisonment not exceeding 10 years; fine not exceeding $30,000; caning not exceeding 12 strokes; and any other lawful sentence. The sentencing powers of a Magistrates' Courts are as follows: imprisonment not exceeding 3 years; fine not exceeding $10,000; caning not exceeding 6 strokes; and any other lawful sentence. The Small Claims Tribunals 1.7.8 The Small Claims Tribunals, on the other hand, afford a speedier, less costly and more informal process for the disposition of certain specified small claims (ie, claims relating to

disputes arising from contract for the sale of goods or the provision of services, tort in respect of property damage and any contract for the lease of residential premises that does not exceed 2 years) with a monetary limit of $10,000 only or $20,000 (where the disputing parties consent in writing). Family Courts 1.7.9 Apart from the above courts, the Family Courts deal with divorces, maintenance, custody and adoptions. The Courts and Information Technology 1.7.10 The Judiciary has also taken major strides in utilising information technology in the courts which has, in part at least, enhanced its efficiency. The Technology Courts were, for instance, set up to enable the sharing of information by lawyers and judges and the giving of evidence by witnesses via video conferencing. Legal actions involving a company or an individual may be monitored using a facility known as Casewatch. The Electronic Filing System (EFS), a joint project by the Judiciary, Singapore Network Services and the Singapore Academy of Law to enable the filing, extraction and service of court documents as well as the tracking of case information by electronic means, has undergone further refinements to upgrade services to end-users. It was reconstituted as the Electronic Litigations Systems (ELS) in order to

further integrate technology into the litigation processes. Various information technology innovations have also been utilised to facilitate and streamline various criminal processes, namely the registration and management of criminal cases (SCRIMS), the processing of traffic charges between the police and the courts (TICKS 2000) and the payment of fines for minor traffic offences (ATOMS) 1 The drive towards legal autochthony continues and the legal innovations will continue in the never-ending quest for the legal system to be both effective and efficient while according justice on the basis of fairness, equity and impartiality. For the Singapore legal system to maintain its relevance, legal innovation will be needed. Such innovation will be guided by compatibility with Singapores needs and local conditions. With trade and investments being Singapores economic lifeblood, the legal system must continue to provide adequate protection to all and inspire confidence within the international business community. Indeed, Singapore aspires to increase the international profile of Singapore law and to promote Singapore as a centre for dispute resolution. The current endeavour in enhancing Singapores standing as an international centre for the provision of legal services is to encourage parties to choose Singapore law as the governing law for their international commercial transactions.
.

The Government recognises the importance of law in maintaining political and social order as well as engendering conducive conditions for economic activity. Indeed, law is regarded as a fundamental economic value, which must be carefully nurtured and harnessed to enhance Singapores aspiration to be a total business centre. Although critics argue that the human rights regime and legal protection for individuals is not on par with the legal regime for economic activity, the governments success in generating economic wealth have legitimised and lent credence to the states and societys preference for tough laws, social discipline and a low incidence of corruption as an integral part of good governance.