Singapore's offshore trade sector, worth US$350 billion, will receive a boost from several new initiatives announced today at International Enterprise (IE) Singapore's Global Trader Summit.
Speaking to 200 business leaders at Shangri-la hotel this morning, Minister for Trade and Industry, Mr Lim Hng Kiang, also revealed the coming launch of an international trading institute, details of which will be announced later tonight.
The new institute by Singapore Management University and IE Singapore will focus on talent training, conducting research and offering consultancy services.
To enhance Singapore's position as the largest energy trading hub in Asia, liquefied natural gas (LNG) will qualify for special tax concession, getting 5% tax concession on qualifying income from LNG trading for 10 years. Chemical plants will now also qualify for tax concession.
Mr Chong Lit Cheong, CEO, IE Singapore, said: "There are currently over 200 companies under IE Singapore's Global Trader Programme (GTP) that use Singapore as a base for their offshore trading activities and enjoy a concessionary tax rate on their qualifying income. These companies generated over S$5 billion in total business spending and more than S$6 billion in value-add in 2006.
"With the new initiatives in place, we hope to encourage more diversity and range in terms of the geographical demographics and trading activities of the companies."
With growing concerns over climate change, coupled with record oil prices, cleaner fuels are gaining popularity. In particular, liquefied natural gas has started to capture the attention of the oil and gas majors, spurring the set up of LNG trading desks in Europe and the US. Asia is expected to become a major LNG consumer, with traditional countries such as Japan, Korea and new powerhouses China and India leading the way.
These initiatives were announced at the Global Trader Summit 2007, themed "Sustaining Leadership in Global Trading".
