Source: IE Singapore, Singapore Trade Statistics

2. Import Regulations, Customs and Distribution

□ Regulation(Licence, etc.)

 ○ There is no specific regulation or licence imposed on the import of Valve Actuators in Singapore.

□ Customs

 ○ There is no duty/tariff imposed on the import of Valve Actuators in Singapore.

 ○ 7% of Goods and Service Tax(GST) is levied on all transactions. GST is calculated on CIF(Cost, Insurance, Freights) value of the goods, plus commission, and other incidental charges. Goods that are re-exported are eligible for a GST refund from the government authority.

Source: Singapore Customs

□ Major Distribution Channel

 ○ The established distribution channel typically involves a distributor who is tasked with the marketing, sales and after-sales service responsibilities in the market. The market covers various industries including marine, oil & gas, waste water treatment, manufacturing, power plant and petrochemical.

 ○ The distributorship arrangement is the most efficient access to Singapore and the designated distributor is expected to be responsible for local market development.

 ○ By nature of Singapore’s small domestic market, distributors have a tendency to seek distribution right of regional markets as well.

 ○ It is possible to supply to end user directly but it’s not so common.

3. Competition Trend

□ Major players(products)

Main Competing Brands

□ Korean products’ Market Share and Popularity

 ○ End-users generally prefer internationally established brands from the US or Europe and will specify them for projects.

 ○ Buyers usually have a favorable impression on Korean products and are willing to explore their products further.

4. Useful information for Marketing Activity

□ Exhibitions

□ Buyers’ Characteristics and Things to Note

 ○ Buyer is most concerned about brand establishment and proven reliability of product.

 ○ The leading US and European brands have long established their brands in Singapore and have their own branch office to provide competitive pricing.

 ○ Buyers are price sensitive when considering a new brand in Singapore, other than expecting reasonably good quality of product as it must provide enough economic value for them to switch from already-established brand that they have been using.

 ○ Buying quantity for initial orders is usually low.

□ Marketing Strategy and Target Customers

 ○ To help Singapore buyer to assess new Korean brand for distribution or projects, the product quality needs to be consistent. Supplier’s capability for customization would be needed, too.

 ○ Recommended strategy is to appoint a local distributor to do marketing activities and establish a brand presence. This is to build confidence among end-users and may take a few years.

 ○ Allow distributor to do marketing and export product to neighboring countries.