Global Trader Programme enhanced, commodities sector to benefit

Global Trader Programme enhanced, commodities sector to benefit
By Travis Teo | Posted: 21 May 2010 2135 hrs

	Photos 1 of 1 Motorists travel over the bridge against the view of Singapore skyline.

 
SINGAPORE : Singapore has enhanced its Global Trader Programme (GTP) to boost the commodities trading sector.

With the improvement, structured commodity financing activities will qualify for tax concessions.

Enterprise agency IE Singapore said that structured commodity financing is the latest value-added activity to be included in its GTP.

It will be an area that can enable better credit and performance risk management for the commodities sector.

The move is part of efforts to build up Singapore's trading environment to remain competitive as Asia becomes the centre of the world's trade flow.

The GTP, which was launched in June 2001, is aimed at encouraging companies to use Singapore as their global or regional trading base.

Total revenue for companies under the GTP grew at a compounded annual growth rate of 14 per cent over the last five years to US$465 billion.

However, the total revenue of US$465 billion recorded last year was 30 per cent lower from that of 2008.

IE Singapore added that 35 new entrants also joined the GTP this year while another 37 renewed their (GTP) status for the next five years.

New entrants this year includes South African, Russian, Japanese as well as Singapore companies.

Trade and Industry Minister Lim Hng Kiang said; "We expect this GTP enhancement to contribute to higher trade volumes and strengthen Singapore's position as an international trading hub.

"This enhancement will also lay the foundation to build intellectual capital in structured financing within commodity houses in Singapore." 

- CNA/ms 

- wong chee tat :)