Written reply to PQ on impact assessment of Hainan Free Trade Port on potential trade flow disruption for Singapore

Question:

Ms Gho Sze Kee: To ask the Deputy Prime Minister and Minister for Trade and Industry what is the assessment of the potential impact and opportunities of the Hainan Free Trade Port on Singapore and the region, in particular the potential disruption to trade flows and routes.

Written Answer by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong

1.            The Hainan Free Trade Port (FTP) offers zero tariffs on a broad range of goods, improved customs clearance processes and tax incentives. It allows for imports with at least 30% value-added processing in the Hainan FTP to enter mainland China tariff-free, to encourage businesses to locate processing facilities in the Hainan FTP to serve the China market.

2.            The impact on Singapore is likely to be limited as Singapore already has free trade agreements with China through the China-Singapore Free Trade Agreement, the ASEAN-China Free Trade Area and the Regional Comprehensive Economic Partnership. For example, the China-Singapore Free Trade Agreement eliminates tariffs for 95% of Singapore’s exports to China. We will continue to monitor trade patterns and adjust our strategies as necessary.