TERM PAPER SINGAPORE ABROAD PROGRAM AMITY GLOBAL BUSINESS SCHOOL SINGAPORE

BUSINESS ENVIRONMENT OF SINGAPORE

VATSAL SINGH B.COM (HONS) AMITY UNIVERSITY HARYANA Enrolment No. - A50004611028

TABLE OF CONTENTS
1. TITLE

2. DECLARATION

3. CERTIFICATE

4. ACKNOWLEDGEMENT

5. EXECUTIVE SUMMARY

6. OBJECTIVES

7. INTRODUCTION

8. RESEARCH OF METHODOLOGY

9. RESULTS OF FINDINGS

10. LIMITATIONS OF PROJECT

11. RECOMMENDATION AND SUGGESTIONS

12. CONCLUSION

13. REFERENCES

DECLARATION
I hereby declare that I made this project myself completely and the data used in this project is all secondary data. Though I have taken material from internet and textbooks, but all information is written in my own language, nothing is being copied.

SIGNATURE

CERTIFICATE This is to certify that VATSAL SINGH, enrolment No. A50004611028, student of Bachelor of Commerce (Honors) has completed dissertation on the topic MARKETING ENVIRONMENT OF SINGAPORE under my guidance.

This is carried out in partial fulfillment of Bachelor of Commerce to be awarded by Amity University Haryana. To the best of my knowledge the piece of work is original and no part of report has been submitted to any institute/ university earlier for reward of any degree/ diploma.

ACKNOWLEDGEMENT
I would like to thank the staff and the faculty of Amity Global Business School Singapore for giving me this opportunity to showcase my skills and ability through the Term Paper. It would be my first attempt in making a detailed Research report. This could not have been possible without the guidance and the help of Ms. Ashima Ahuja, Ms. Astha Gupta, Mr. Marut Singh Bisht.

EXECUTIVE SUMMARY
In this paper I will present my research results regarding Singapore, as well as draw the picture of its marketing environment. I will include the information about the location, climate, population, religion and culture, official spoken languages, state of economy and level of technologies, political and legal systems, level of competition and potential for economic growth. In the conclusion I will highlight advantages and disadvantages of the Singapore marketing environment.

OBJECTIVES To understand the basic Business Constraints in Singapore. To develop my knowledge on Business Environment of Singapore

INTRODUCTION

Singapore is the nation of islands which is situated on the South of Malay Peninsula. Its area is only 704,0 square kilometers, and it is the smallest country in Southeast Asia. Its anthem is Majulah Singapura and motto is called the same and sounds like Onward, Singapore. The capital of Singapore is Singapore city and there are four spoken official languages: Malay, Mandarin, Tamil and English. It is Parliamentary republic and the President of Singapore is Sellapan Ramanathan, the Prime Minister- Lee Hsien Loong. Singapore received the city status on July, 24 1951, became self-government under the rule of UK on June, 3 1959 and was declared independent on August, 31 1963. During the same year it merged with Malaysia, but in two years separated from it. The population of Singapore is about 4,680,600 people and the density of population is 6,369.2 per square kilometer. Total GDP in 2007 was estimated on the level of 161.35 billion of US dollars. Singapores currency is Singapore dollar.

It is a multi-religious country. Singapore is a real attraction to tourists from all over the world, and tourism is one of the largest industries in the country. In 2007 it attracted more than 10 million tourists and government adopts definite laws to attract even more tourists (for instance, legalizing gambling) on the constant basis.

Singapores Marketing Environment Location

Singapore contains 63 islands, as well as the mainland of Singapore itself. The largest islands in Singapore are Pulau Ubin, Jurong Island, Pulau Tekong and Sentosa, others are far smaller. The highest Singapore point is called Bukit Timah Hill and its height is 166 m. There are about 67.3 hectares of Botanic Gardens in Singapore. According to Koppen system of climate classification, Singapores climate can be characterized as tropical rainforest and it has also no distinctive seasons. The climate is characterized by universal pressure and temperature, high level of humidity, as well as abundant rainfalls. The average levels of relative humidity vary from 90 percent in the morning to 60 percent in the afternoon. When there are abundant rains, the humidity level reaches 100 percent. The temperature range is from 22C to 34C. The level of temperature never fall below 18 C and was never higher than 38 C. The hottest months of the year are said to be June and July, and the wettest are November and December, called the monsoon season. The length of the light day is approximately constant during the year in Singapore. Like most of Southeast Asia, Singapore is generally hot and humid. It's warm and humid year round, with the temperature almost never dropping below 20C (68F),

even at night, and usually climbing to 30C (86F) during the day. Recent times, it even reached till 35C. Humidity is high, mounting over a 75% mark. November and December is the rainy season. June-August is considered to be the best time to visit, but even then it rains often. Don't let the climate stop you from going, however. Most buildings are air-conditioned (to the point that you may want to take a sweater), and pains have been taken to make everything as comfortable as can be, all things considered. When it does rain, it's generally only for a short period. For those who enjoy the sun and the beach, Singapore is an ideal place for beach lovers, as you get the hot hot sun throughout the year. So when you're in Singapore, just bring along your cooling apparels and hats.

Population
Time Series on Population (Mid-Year Estimates)
Year 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 (Census) 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 (Census) 1981 1982 1983 1984 1985 1986 1987 Total Population ('000) 1,646.4 1,702.4 1,750.2 1,795.0 1,841.6 1,886.9 1,934.4 1,977.6 2,012.0 2,042.5 2,074.5 2,112.9 2,152.4 2,193.0 2,229.8 2,262.6 2,293.3 2,325.3 2,353.6 2,383.5 2,413.9 2,532.8 2,646.5 2,681.1 2,732.2 2,736.0 2,733.4 2,774.8 Singapore Residents ('000)

2,013.6

2,282.1 2,324.4 2,365.7 2,406.2 2,443.7 2,482.6 2,518.6 2,553.9

1988 1989 1990 (Census) 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 (Census) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (Census) 2011

2,846.1 2,930.9 3,047.1 3,135.1 3,230.7 3,313.5 3,419.0 3,524.5 3,670.7 3,796.0 3,927.2 3,958.7 4,027.9 4,138.0 4,176.0 4,114.8 4,166.7 4,265.8 4,401.4 4,588.6 4,839.4 4,987.6 5,076.7 5,183.7

2,598.5 2,647.6 2,735.9 2,794.7 2,849.8 2,904.5 2,959.4 3,013.5 3,068.1 3,123.4 3,180.0 3,229.7 3,273.4 3,325.9 3,382.9 3,366.9 3,413.3 3,467.8 3,525.9 3,583.1 3,642.7 3,733.9 3,771.7 3,789.3

Source: Singapore Department of Statistics Notes: 1. Data for 1980 and earlier Censuses refer to all persons present in Singapore and enumerated on Census Day. Data from 2000 onwards are based on the register-based approach. 2. Total population comprises Singapore residents and non-residents. Resident population comprises Singapore citizens and permanent residents. Last updated: 28 Sep 2011 Extracted from www.singstat.gov.sg

Key Demographic Indicators, 1970 2011

Population
Total Population1,2 ('000) Resident Population2 ('000) Singapore Citizens ('000) Singapore Permanent Residents ('000) Density (Total population per sq km) Sex Ratio3 (Males per 1,000 females) Median Age3 (Years) Age Composition3 (%)

1970
2,074.5 2,013.6 1,874.8 138.8 3,538 1,049 19.5 100.0

1980
2,413.9 2,282.1 2,194.3 87.8 3,907 1,032 24.4 100.0

1990
3,047.1 2,735.9 2,623.7 112.1 4,814 1,027 29.8 100.0

2000
4,027.9 3,273.4 2,985.9 287.5 5,900 998 34.0 100.0

2010
5,076.7 3,771.7 3,230.7 541.0 7,126 974 37.4 100.0

2011
5,183.7 3,789.3 3,257.2 532.0 n.a. 972 38.0 100.0

Under 15 years 15-64 years 65 years & over Age Dependency Ratio3 (Per 100 population aged 15-64 years) Total (Under 15 years and 65 years & over) Child (Under 15 years) Old-Age (65 years & over) Old-Age Support Ratio3 (Number aged 15-64 years per elderly aged 65 years & over) Proportion Single Among Residents Aged 35-39 Years4 (%) Males Females

39.1 57.5 3.4

27.6 67.5 4.9

23.0 71.0 6.0

21.9 70.9 7.2

17.4 73.7 9.0

16.8 73.9 9.3

73.9 68.1 5.9 17.0

48.2 41.0 7.3 13.8

40.8 32.3 8.5 11.8

41.1 30.9 10.1 9.9

35.7 23.5 12.2 8.2

35.3 22.7 12.6 7.9

10.8 5.1

10.5 8.5

18.1 14.8

19.7 15.1

20.4 17.1

n.a. n.a.

Households & Housing

Resident Households5 ('000) Average Household Size5 (Persons) Home Ownership Rate5 (%) Resident Households5 Living in HDB 4-Room / Larger Flats & Private Housing (%)

1970
380.5 5.4 29.4 18.9

1980
472.7 4.9 58.8 24.1

1990
661.7 4.2 87.5 51.5

2000
915.1 3.7 92.0 67.9

2010
1,145.9 3.5 87.2 74.4

2011
n.a. n.a. n.a. n.a.

Notes: 1) Total population comprises Singapore residents (i.e. Singapore citizens and permanent residents) and non-residents. 2) Data for 1970 and 1980 are based on de facto concept (i.e. the person is present in the country when enumerated at the reference period). Data for 1990 onwards are based on de jure concept (i.e. the persons place of usual residence). 3) Data refer to resident population. 4) Data refer to resident population, except for 1970 which refer to total population. 5) Data refer to resident households (i.e. households headed by a Singapore citizen or permanent resident), except for 1970 which refer to private households.

Speaking about the demographical situation in Singapore, it is necessary to mention that in accordance with the statistics of the government, the population of the country (in 2007) was about 4,68 million people, about 80 percent of the population constitute citizens of Singapore and permanent residents. From those residents, 75.2 percent are Chinese, 13.6 percent are Malays, 8.8 percent are Indians and only 2.4 percent are people of other groups and Eurasians.The present population of Singapore is 5,183,700 (of whom 3,257,000 are Singapore citizens).

Culture

To describe the culture of the country in the full extent, it is necessary to investigate into its cuisine, media, performing arts, sports and recreation, as well as into its architectural heritage. Singapore cuisine is the bright example of cultural diffusion and diversity of the country, and Indian, Malay, Chinese and Tamil influences can be observed. Local people enjoy eating mee poh, bak chor mee, sambal stringray, nasi lemak, satay and chilli crab. All kind of food is usually served in hawker centers. Food of Singapore is very diverse and includes a lot of seafood with clams, squid, oysters and crabs. Singapore for the last two decades is being promoted by the government as the center of culture and arts. Government wants to transform Singapore to the cosmopolitan gates between the West and the East. Esplanade, built in 2002, a center of performing arts, was a big step in that direction. There is also National Arts Council, which organizes annual arts festival that includes theatre and visual arts, music and dance. Singapore Biennale is also held from 2006 to

present the contemporary art from all around the world to the broad public. This year, Biennale will include Southeast Asian works of art. Media of Singapore plays an outstanding role in the development of the country and is one of the key media center in the Asia-Pacific region. The governments goal is to establish the reputation of Singapore and make it the global media hub. MediaCorp is the state-owned corporation that broadcasts 7 local channels and 14 radio channels. So, all television and radio (with the exception of 4 stations) are owned by the government. It is illegal to own private satellites with uncensored content from abroad. The Straits Times is the most popular newspaper in the country. In general, there are 16 newspapers, which are actively circulated. The print industry is also predominantly controlled by state-owned Singapore Press Holdings. As to the Singapores architecture, I must say that tallest buildings in Singapore are situated at the Raffles Place and they are: OUB Centre, UOB Plaza One and Republic Plaza. They are all 280 meters high. There are also such ethnic neighborhoods in Singapore as Little India and Chinatown. There are a lot of temples and worship places that were built in the colonial times.

Languages

As I have already mentioned, Singapore has four official languages: English, Tamil, Mandarin and Malay. It was so historically formed that the official language of Singapore is Malay and the national anthem is also written in Malay language. English is the administration language of Singapore and it is mainly British English, but also contain some American English influences. English remains the first language medium in schools and colleges of the country, and is also the most widespread language in the literature. All signs and official publications are written in English, but there are also versions translated into other official languages. But the population doesnt speak English, but so-called Singlish with Creole characteristics, Chinese dialects, and Indian and Malay languages.

Religion
Major Religions in Singapore
Religion Year 1990 2000 2010 1990 2000 2010 1990 2000 2010 1990 2000 2010 1990 2000 2010 1990 2000 2010 1990 2000 2010 Adherences 31.2% 42.5% 33.3% 12.7% 14.6% 18.3% 3.7% 4.0% 5.1% 15.3% 14.9% 14.7% 22.4% 8.5% 10.9% 0.6% 0.6% 0.7% 14.1% 14.8% 17.0% Change +11.3% -9.2% +1.9% +3.7% +0.3% +1.1% -0.4% -0.2% -13.9% +2.4% +0.0% +0.1% +0.7% +2.2%

Buddhism

Christianity

Hinduism

Islam

Taoism Other religions No Religion

Adherences amongst total resident population aged 15 years and above

If you are new to Singapore, one of the first things you will notice about the country is how diverse its citizens are. As a multi-religious nation, Singapore is a rare but living example of how people from diverse ethnic, racial and cultural backgrounds can coexist peacefully, while practicing their own religion. In fact, freedom of worship is enshrined in Singapore's constitution as one of the nation's top priorities. From a very early age, Singaporean children are nurtured to participate in harmony outreach programmes and understand each others customs and practices. Mdm Adeline Tso, Principal at Praiseland Childcare and Learning Centre said, "We encourage our children to see, hear, taste and experience the essence of our Singaporean culture." Everybody looks forward to Deepavali, Hari Raya, Vesak Day and Christmas (major festivals celebrated here) with equal fervour. Singapore is home to 10 religions, with Buddhism/Taoism, Islam, Hinduism and Christianity as its principal religions. Sikhism, Judaism, Zoroastrianism, Baha'I, Jainism and the non-religious form the minority cluster.

Economy and Technology

Singapores economy can be described as developed market-based one. Singapore is called one of the Four Asian Tigers along with Taiwan, South Korea and Hong-Kong. The Singapores economy is export-oriented and mainly depends on export of refined import goods (for instance, manufacturing). Manufacturing takes about 25 percent of the countrys GDP and includes petroleum refining, electronics, mechanical engineering, biomedical science manufacturing and chemicals production. It is important also to know that Singapore has the busiest port in terms of shipped tonnage in the world and is the fourth biggest foreign exchange country after New York, London and Tokyo. It has also the rating of the most business-friendly economy of the world. It is the least corrupted country in Asia, which is probably stipulated with the fact that state-owned companies are dominating in different sectors of the economy (utilities, public transport and media). Speaking about the competition, it is important to mention that there is almost no competition in government-owned sectors of economy. Singapores economic freedom score is 87.5, making its economy the 2nd freest in the 2012 Index. Its score is slightly higher than last year, reflecting gains in freedom from corruption and financial freedom that offset losses in labor and monetary freedoms. Singapore is ranked 2nd out of 41 countries in the AsiaPacific region, and its overall score remains significantly higher than the world average. The foundations of economic freedom in Singapore are firmly sustained with strong protection of property rights and effective enforcement of anti-corruption laws. The government is very efficient, with competitive tax rates and low government expenditures. The regulatory environment is flexible and transparent, encouraging vibrant commercial activity. A strong tradition of openness to global trade and investment continues to boost productivity while facilitating the emergence of a more dynamic and competitive financial sector. While the private sector has been the source of Singapores economic success, the government maintains a proactive role in guiding economic development. State ownership and involvement in key sectors

remains substantial. A government statutory entity, the Central Provident Fund, administers public housing, health care, and various other programs, and public debt is over 90 percent of GDP. Background Singapore is a nominally democratic state that has been ruled by the Peoples Action Party (PAP) since 1965, when the country became independent. The May 7, 2010, election left the PAP in power but put six opposition members into Parliament with the PAP winning its lowest percentage of the popular vote since independence. Certain rights, such as freedom of assembly and freedom of speech,remain restricted, but the PAP has also embraced economic liberalization and international trade. Singapore is one of the worlds most prosperous nations. Its economy is dominated by services, but the country is also a major manufacturer of electronics and chemicals.

Political and Legal System

Singapore has the parliamentary democracy and the Westminster system of government that represents various constituencies. The executive power belongs to the Cabinet, the Head of which is the Prime Minister. The Presidential Office has some veto powers for some key decisions, including the appointment of judiciary positions and use of national reserves. The legislative branch of the power is presented with the Parliament. Parliamentary elections of the country are based on plurality for group representation constituencies. The Members of Parliament contain elected, nominated or nonconstituency members. They are usually elected at the General Election. The official residence of the President is called the Istana. Political views are generally controlled by the Peoples Action Party, and even though there are some other parties in Singapore (Singapore Democratic Party, Workers Party of Singapore, Singapore Democratic Alliance, etc.), Singapore is argued to be a one-party country. Singapore cannot also be called purely democratic state, but more to have procedural kind of democracy, as regime in the country has both elementsdemocratic and authoritarian. Many laws of Singapore were taken from British and British Indian legislative systems, although the Peoples Action Party rejected the adoption of liberal democratic values, as it considered being incompatible with Singapore. Important note is that there are no jury trials in the country and the freedom of speech is restricted by the law. There are also particular laws that allow capital punishment (for drugs distribution and murder of the first degree). Singapore is frequently criticized by international organizations for having the highest rates of executions in the world. But Singapore answers that it has the sovereign right to decide and determine juridical system and impose death penalties for serious crimes.

RESEARCH METHODOLOGY
While making this project I followed 6 steps . Here is a brief summary of those six steps:

STEP 1 : IDENTIFY AREA OF INTEREST AND DEVELOP YOUR TOPIC

The first step is to identify your main area of interest in your subject. I chose mine as Business Environment and External Constraints influencing Business activities. Hence I chose it as my primary topic. Being in Singapore I tried to co relate the topic with Singapore. I finally came up with Marketing Environment of Singapore as my term paper topic.

STEP 2 : FIND BACKGROUND INFORMATION

In the second step we are supposed to do a research on the background on the topic. This basically includes its history, significance and application of it in the business world. In this case I found out the significance of using Marketing Environment as a tool to develop various Business Strategies.

STEP 3 : COLLECT VARIOUS CASE STUDIES, STATISTICS AND INFORMATION

Here the main research on the topic begins by using different media sources for secondary data. Media sources used : Internet, Newspaper. The research is mainly based on Secondary Data. Case Studies gives a brief outlook on our topic. It gives clear understanding about the topic. Statistics have been used to support the analysis and text research material.

STEP 4 : ANALYSIS BASED ON THE RESEARCH MATERIAL COLLECTED

A personal analysis is done on the topic with the help of secondary data. This would give the reader a judgement on the analysis skills used by the candidate on the topic.

STEP 5: FOLLOW THE STANDARD FORMAT OF A RESEARCH PAPER

This step is very important as we have been advised to follow the proper format of a research paper. The marking scheme (100 marks) of the term paper itself shows the importance and seriousness of the term paper. Hence the rules have to be followed in order to fulfil the needs of our examiners.

STEP 6 : REVISION
It is very important to recheck the content of your research paper and you have to make sure that the information is not outdated and invalid or illegally used. A quick review of the term paper has been done.

RESULTS AND FINDINGS

Following the research on the Business Environment of Singapore, the knowledge about the Culture, Ethics, Demograhic, Legal and Economy of Singapore has been gained. The awareness about the markets in Singapore has increased as well.

LIMITATIONS OF PROJECT
Primary Research was not allowed. Usage of Secondary Data was only allowed. Source of research was only Internet.

RECOMMENDATIONS
The research has given me and insight on the role of Business constraints in influencing the Business strategies of a firm. If a business wants to enter Singapore they would need to understand the Macro Environment of the Singapore i.e its Demography, Economy, Technology, Social, Political and Legal constraints.

Conclusion
So, Singapore is an island nation with almost 4,7 millions of inhabitants and open and transparent market economy. It has four official languages spoken, which is obviously the advantage, as it provides larger business opportunities. Having the busiest port in the world is also a strong side of Singapore, along with one of the ten lowest levels of corruption in the world. It has favorable climate for the development of agricultural sector, and genuine landscapes, which are great attraction to tourists, as well as unique mixture of cultures and religions. The economy of the country is mainly based upon manufacturing, especially electronics. Speaking about weak sides, I would like to highlight the absence of competition in many sectors of economy for the reason that they are totally controlled by government. Death penalty is also a great disadvantage, as the modern country nowadays should think and implement more contemporary legislative decisions to prevent and control serious crimes.

REFERENCES
http://www.singstat.gov.sg http://en.wikipedia.org/wiki/Economy_of_Singapore http://www.best-singapore-guide.com http://www.tradingeconomics.com/singapore/ http://www.singaporeexpats.com/about-singapore/climate-and-location.htm www.google.com Tutor2u.net www.bized.co.uk