Singapore Gateway to Asia – PORT Challenged
Singapore has consistently topped the World Banks’s rankings as the “Easiest Place to Do Business.” In review of contributing antecedents that attract foreign investors to open headquarters in Singapore, the country’s family-friendly environment compliments a hospitable government culture that is trusted for proprietary rights handling, advanced infrastructure development, educated and multi-lingual workforce investment, an integrated network of double-tax treaty policies, and allowance of 100% foreign ownership in several industry sectors. The Port of Singapore is the major economic foundation which has allowed Singapore to benefit from natural, geographic preference situated at the Strait of Malacca. The recent recession and new shipping agreements have greatly impacted The Port’s annual revenue.
From the time of the spice route, traders from divergent cultures used The Port, prior to it being called so. The Port’s revenue reached $122 Billion in 2002. There was an economic slump in 2009 from the global recession that has not picked back up. Port revenues have been down for the last 5 years. The annual container throughput fell 8.7% from the record level in the previous year to $30.9 Million. An increase in direct shipping and overcapacity in the container shipping market has challenged the world’s 2nd largest container port, after Shanghai, China.
Kimberly Lavon Wright Burbank
MBA Candidate 2016