Singapore’s journey from a developing country to one of the world’s richest is an economic miracle, especially given its short 50 years of history. From the start, Singapore was handicapped – limited land mass, an ethnically and religiously diverse population, and an acute lack of natural resources. Despite these disadvantages, it had one crucial advantage – an excellent geographical location at the crossroads of global trading lanes, making it a natural port of call. That was why the British colonised Singapore back in 1819 and made it one of the crown jewels of the British Empire in East Asia. Despite its distinct geographical advantage, Singapore initially opposed to the idea of opening to trade. In the late 1980s, however, the new government earmarked trade as one of the key drivers of growth in Singapore’s early years. At the same time, the government also focused its effort on attracting foreign direct investment (FDI) from multinational companies. To grow and develop these two areas, Singapore needed to keep its business environment conducive. Policies and legislation had to be trade facilitative and applied in a consistent and fair manner. As a result, Singapore gradually became the location of choice for multinational companies to base their Asian headquarters. This paper provides an overview of Singapore’s economic transformation through the decades in terms of its openness to trade. Specifically, it gives some overall information and examines the implementation of TradeNet in Singapore, highlights some impacts of this measure on Singapore’s economy, and finally, draws out some lessons that other neighbouring countries including Vietnam can learn from.
TABLE OF CONTENTS Introduction Singapore’s story before TradeNet TradeNet and its role in Singapore trade facilitation journey General information on TradeNet 1.1 The concept of Single window 1.2 TradeNet Definition 1.3 The legal basis of TradeNet 1.4 The structure of TradeNet Steering Committee 1.5 The approach of TradeNet 10 1.6 The operation of TradeNet 11 Chronology of implementation 12 2.1 The initiation of TradeNet 12 2.2 Enhancement to TradeNet 14 The impacts of TradeNet 18 3.1 Highlighted impacts 18 3.2 Other benefits 20 Success factors and lessons learned 22 Critical success factors 22 Lessons from the success of TradeNet 24 References 28 I Introduction Singapore’s journey from a developing country to one of the world’s richest is an economic miracle, especially given its short 50 years of history From the start, Singapore was handicapped – limited land mass, an ethnically and religiously diverse population, and an acute lack of natural resources Despite these disadvantages, it had one crucial advantage – an excellent geographical location at the crossroads of global trading lanes, making it a natural port of call That was why the British colonised Singapore back in 1819 and made it one of the crown jewels of the British Empire in East Asia Despite its distinct geographical advantage, Singapore initially opposed to the idea of opening to trade In the late 1980s, however, the new government earmarked trade as one of the key drivers of growth in Singapore’s early years At the same time, the government also focused its effort on attracting foreign direct investment (FDI) from multinational companies To grow and develop these two areas, Singapore needed to keep its business environment conducive Policies and legislation had to be trade facilitative and applied in a consistent and fair manner As a result, Singapore gradually became the location of choice for multinational companies to base their Asian headquarters This paper provides an overview of Singapore’s economic transformation through the decades in terms of its openness to trade Specifically, it gives some overall information and examines the implementation of TradeNet in Singapore, highlights some impacts of this measure on Singapore’s economy, and finally, draws out some lessons that other neighbouring countries including Vietnam can learn from II Singapore’s story before TradeNet The first days of independence Singapore became independent in 1965, and like any other infant nations, it faced many challenges, especially in terms of economic development The limitation in resources can be considered one of the major obstacles Being an island nation, Singapore barely can rely on its natural resources The limitation in land area means small population size, which eventually leads to the insufficiency in human resources Besides, a small domestic market size also hinders the room for domestic businesses to expand The difficulties does not stop there In 1985, Singapore experienced its first postindependence recession Early warning signs of a slowing economy were already evident in 1984, but a booming construction industry bolstered the overall numbers By the end of 1984, the construction market had become saturated and few projects were in the pipeline for completion Singapore was headed towards a recession By the second quarter of 1985, Singapore posted a growth rate of -1.4 percent, which dropped to -3.5 percent in the third quarter The sharp and sudden downturn took many by surprise Amid news of companies going bankrupt and the retrenchment of workers, Singapore’s unemployment figure rose to 4.1 percent in June 1985 from 2.9 percent in the previous four years Figure 1: Singapore Economic Growth from 1985 to 2008 (Source: CrimsonLogic, 2012) The backwardness in trade activities In the event of the economic recession, trade activities in Singapore are a long way from being facilitated This can be best described through its required trade documentation In the mid 80s, despite being among the top 20 trading nations in the world, Singapore still proved itself a not very trade-friendly country The trade documents for import and export activities in this country required the involvement of multiple parties, from traders, shipping lines, freight forwarders, to shipping agents, etc It also required multiple agencies’ endorsement, to name a few, the Trade and Development Board (TDB), the Customs, and over 35 Controlling Agencies Coming along with the complexity in procedure was the quantity of papers required In 1987, about 10,000 declarations were issued daily, in which to 20 documents had to be completed for each import or export consignment Remarkably, all these documents were handle manually without the assistance of any advanced technology Opportunities arise in times of crisis Right in the middle of the recession, Singapore government decides to take actions to lift itself out of the ciris A high-powered Economic Committee was established, identifying improvement in external trade as a major goal, charting new strategies to improves the country’s economic competitiveness, and highlighting that the use of IT could make a significant contribution to Singapore’s long term competitive position At the same time, in 1986, Hong Kong revealed that it was creating a trade oriented EDI system called HotLine (now known as TradeLink) This event strengthened Singapore’s resolve to improve their trade mechanism As a result, the Trade Development Board (TDB), now known as the International Enterprise Singapore, was given the task of mobilizing the trade community and became the coordinating point among various agencies such as Customs and Excise, Port of Singapore Authority, and Civil Aviation Authority of Singapore All the aforementioned events have acted as an important mobilizing factor to the realisation of Singapore’s single window, which was implemented in 1989 under the name of TradeNet This was the world’s first nationwide electronic single window The following part of this paper will go into detail about the concept of Single Window and particularly TradeNet in the case of Singapore, its legal basis, structure, approach, and operation III TradeNet and its role in Singapore trade facilitation journey General information on TradeNet 1.1 The concept of Single window In many countries, trade procedure in international trade usually involved companies preparing and submitting large volumes of information and documents to governmental authorities to comply with import, export and transit-related regulatory requirements Additionally, this information and documentation often has to be submitted through several different agencies, each with their own specific (manual or automated) systems and paper forms As a consequence, these complicated and extensive requirements, along with their compliance costs, can result in a serious burden to both governments and the business community and can also create a serious barrier to the development of international trade One approach to address this problem is the establishment of a Single Window whereby trade related information and/or documents need only be submitted once at a single entry point A Single Window is defined in UNECE Recommendation No 33 as “a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements If information is electronic, then individual data elements should only be submitted once” This can enhance the availability and handling of information, expedite and simplify information flows between trade and government and can result in a greater harmonisation and sharing of the relevant data across governmental systems, bringing meaningful gains to all parties involved in cross-border trade The Single Window is therefore a practical application of trade facilitation concepts meant to reduce non-tariff trade barriers and can deliver immediate benefits to all members of the trading community The Single Window is generally managed centrally by a lead agency, enabling the appropriate governmental authorities and agencies to receive or have access to the information relevant for their purpose In addition, participating authorities and agencies should coordinate their controls In some cases, the Single Window may provide facilities for payment of relevant duties, taxes and fees A Single Window does not necessarily imply the implementation and use of high-tech information and communication technology (ICT), although facilitation can often be greatly enhanced if Governments identify and adopt relevant ICT technologies for a Single Window The implementation of a Single Window can be highly beneficial for both Governments and trade For Governments, it can bring better risk management, improved levels of security and increased revenue yields with enhanced trader compliance Trading communities benefit from transparent and predictable interpretation and application of rules, and better deployment of human and financial resources, resulting in appreciable gains in productivity and competitiveness The value of such a facility for governments and traders has taken on increased importance in the new security environment with its emphasis on advance information and risk analysis 1.2 TradeNet Definition TradeNet is Singapore’s National Single Window for trade declaration In details, it is an electronic data interchange system that links traders, hauliers, shipping lines, freight forwarders, airlines and handling agents with government agencies like the Trade Development Board (now known as International Enterprise Singapore), Singapore Customs, and the air and sea port authorities TradeNet functions as an electronic clearing house for trading papers to be processed and approved by the relevant government agencies Philip Yeo, then chairman of the National Computer Board, posited that TradeNet would reduce paperwork and shorten the time taken for goods to move between the consignor and consignee, resulting in time and money savings as well as enabling businessmen to trade more competitively in the global market Figure 2: TradeNet Declaration and Clearance Process (Source: CrimsonLogic, 2014) In March 1988, Singapore Network Services Pte Ltd (now known as CrimsonLogic Pte Ltd), a company jointly owned by the Trade Development Board (55%), Telecommunication Authority of Singapore which runs the telecommunication system (15%), Civil Aviation Authority of Singapore which runs all airport facilities (15%) and Port of Singapore Authority which runs the port facilities (15%), was incorporated to specifically develop and operate the TradeNet system By creating such company as an independent profit center, the government would not have to bear the cost of running and operating a nationwide network infrastructure and services The beneficiaries, namely, trading companies, would pay for use of the services without incurring developmental or maintenance costs TradeNet was implemented in stages, and International Business Machines Corporation (IBM) was appointed the main contractor for systems integration and software development A total of 50 companies participated in the pilot run of TradeNet, which commenced on January 1989, making Singapore one of the first countries to launch an integrated system linking private companies to the relevant authorities for cargo clearance On 17 October 1989, TradeNet was officially launched by then Acting Minister for Trade and Industry Lee Hsien Loong By then, over 500 users, including importers, exporters, manufacturers, retailers and courier service operators, were linked up to the system, with plans to connect the system to international electronic data interchange networks At the time, about 34 percent or 80,000 of all business transactions in Singapore were already channelled through TradeNet 1.3 The legal basis of TradeNet As a national single window, TradeNet is subjected to a number of legal frameworks Firstly, section 25(1) Electronic Transactions Act 2010 Electronic Transactions Act (ETA) stipulates that any public agency that, pursuant to any written law, accepts the filing of documents, or obtains information in any form may carry out that function by means of electronic records or in electronic form The ETA also provides that any such public agency that, pursuant to any written law, issues any permit, licence or approval, may issue such permit licence or approval by means of electronic records or in electronic form The ETA, which is based on the UNCITRAL Model Law on Electronic Commerce (1996), provides for the legal recognition of the electronic functional equivalents of written documents and written signatures through a number of provisions The validity of a transaction entered into by electronic means is determined by the substantive law of the transaction such as law of contract or legislation governing the transaction The ETA provides that electronic communications are functionally equivalent to communications in paper form, and that an electronic document or transaction shall not be denied of its validity for the sole reason that it is in electronic form Secondly, various provisions in the relevant legislation provide authorisation for the establishment and operation of a computer service, and for the relevant documents to be made, served or submitted by electronic means Section 86(1) of the Customs Act authorises the Director-General of Customs to establish and operate a computer service and make provision for any manifest, return, list, statement, declaration, direction, notice, permit, receipt or other document required or authorised by the Customs Act to be made, served or submitted by electronic transmission (referred to in the Act as an electronic notice) It also said that a registered user may make and serve an electronic notice to the computer account of the Director-General, and vice versa Section 8(1) of the Regulation of Imports and Exports Act (“RIEA”) is similar to section 86(1) of the Customs Act, and authorises the Director General of Customs to establish and operate a computer service and make provision for any document required or authorised by the Act or any regulations made thereunder to be made, served or submitted by electronic transmission Section RIEA contains provisions relating to service of electronic notices that are similar to section 86 of the Customs Act Section 42 of the Goods and Services Tax Act authorises the Comptroller of Goods and Services Tax to provide an electronic service for the filing or submission of any return, declaration or document, and the service of any notice, direction, order, permit, receipt or document by the Comptroller 1.4 The structure of TradeNet Steering Committee A TradeNet Steering Committee was created to oversee the process Three working subcommittees, one each for sea and air shipping, and various government agencies were formed to specify functional requirements and propose data standards The staff of the National Computer Board were appointed to support each subcommittee Each subcommittee developed a profile of essential trade documentation activities, which were integrated into an “Integrated Procedures Report.” Figure TradeNet Structure (Source: CrimsonLogic, 2009) 1.5 The approach of TradeNet The approach of TradeNet aligns with the principles of Single Window which aims to simplify the procedures in international trade In details, Single Form refers to the only one online form that serves nearly all trade documentation needs in Singapore, from the initial 20 forms, which was made possible by the procedural reform efforts made according to the work of “Integrated Procedures Report” Secondly, by Single Submission and Single Interface, the whole process can be completed once via TradeNet platform The permit processing sub-module of TradeNet provides an intelligent routing agent that automatically determines the workflow required for that particular permit application and routes it to the relevant authorities for their processing A set of rules embedded in the rules engine will then execute the processing requirements for each of the controlling agencies involved in the processing In other words, there is only one process to 35 controlling agencies for TradeNet users This allows for the fourth approach which is Single Process Figure Single process of TradeNet (Source: CrimsonLogic, 2014) 10 and convenient approvals of documents required to authenticate the origin of the goods traded In 1999, further enhancements were made to the TradeNet system called TradeNet Plus TradeNet was made to be Y2K compliant and processing time was reduced to 1-2 minutes In 2003, a major system re-sizing was conducted The current web-based TradeNet version 4.0 was implemented in October 2007 It comprises major enhancements, providing a more simplified permit structure, with less declaration fields TradeNet 4.0 also offers a full suite of permit services Other than declaration of imports and exports, traders can also amend permit details, cancel unused permits and submit claims for refund of duty and GST (Goods and Services tax) erroneously paid The new version also has other new features; for example, traders bringing in goods for re-export can now use the new “import for re-export” permit to cover the entire shipment Under the previous version, two declarations would have to be lodged – one for the import leg and another for the export leg Along with this new version, traders also enjoyed further cost savings through the reduction of fees The processing and transmission fees were reduced from the S$2.00 and S$0.40 (per kilobyte) respectively to S$1.80 and S$0.18 (unlimited size) This will result in savings of S$0.42 per declaration due to reduction in cost from $3.30 to $2.88 Figure TradeNet Development 1989 - 2007 (Source: The Single Electronic Window TradeNet Workshop on Single Window Development Workshop on Single Window Development for CAREC Trade and Customs Officials for CAREC Trade and Customs Officials, 2008) 15 TradeNet is now a core application within Singapore TradeXchange platform, which also went live in October 2007 TradeXchange is a neutral electronic platform that facilitates the exchange of information in the trade and logistics community In addition to TradeNet which connects users to government agencies in Singapore, TradeXchange also provides connectivity to commercial systems and regulatory systems in other countries Leveraging on the connectivity and core applications of TradeXchange, a number of value-added service providers are providing various application services to the trade and logistics community in areas such as trade documentation preparation, supply chain management, logistics and freight management, trade finance and insurance Figure Significant TradeNet Improvements since 1989 to 2012 (Source: Singapore Custom Newsletter, 2014) 16 Owing to singapore’s success in tradeNet, numerous countries requested to learn about Singapore's experience in developing and implementing its NSW system With the launch of Singapore Customs academy in February 2012, and in line with its strategic thrust of sharing customs knowledge, the academy started working closely with the Ministry of foreign affairs (Mfa) to offer an NSW course to ASEAN customs administrators The inaugural course was jointly conducted by singapore Customs and Japan Customs at the academy in february and March 2013 and attended by customs officials from Cambodia, Laos, Malaysia, Thailand, Vietnam and the Philippines It was organised under the ambit of the Japan - Singapore Partnership Programme for the 21st Century (JsPP21) and cosponsored by Singapore's Mfa and the Japan International Cooperation agency Figure TradeNet Now (Source: Singapore Custom Newsletter, 2014) Figure illustrates the achievements of TradeNet operations through many years of enhancement TradeNet supports $900 billion worth of trade per year , collect 100% duties and taxes through electronic systems and processes permits within 10 minutes The development of TradeNet has contributed greatly to the expansion of world trade, helping traders to reduce costs, time and labor works 17 The impacts of TradeNet 3.1 Highlighted impacts In general, TradeNet is the world’s first nationwide trade documentation system It creates a single point for trade-related transactions with the government TradeNet connects with 35 competent authorities including Singapore Customs, Singapore Police Force, Ministry of Health and Agri-food & Veterinary Authority, integrating all these controlling units’ requirements It is recorded that 100% of customs declarations processed and approved is made via TradeNet, most of them is processed within 10 minutes According to CrimsonLogic, TradeNet handles about nine million transactions per year TradeNet has significantly improved and streamlined the trade process which play an important role in the Singapore’s economy According to World Bank Group’s Doing Business, trading across borders is one of the easiest in Singapore since 2007 In 2018, Singapore ranked 41st place It only requires simple set of documents necessary to export and import: bill of lading, commercial invoice, customs export/import declaration and packing list Export/ Import Procedures Export Export Import Import Duration US$ Cost Duration US$ Cost (hours) (hours) Documents Compliance 37 40 Border Compliance 10 335 33 220 Totals 12 372 36 260 Table 1: TradeNet impacts on documents and border compliance for import and export goods (Source: World Bank Doing Business, 2018) 18 TradeNet has revolutionized the trade documentation process in Singapore It is known as one of the strategic national information systems that enhanced the competitiveness of Singapore in the context of international trade TradeNet has brought about some remarkable benefits for example it help Singapore recieved Top eAsis award under Trade Facilitation Category in 2008 September Moreover, it also contributes to lots of benefits to the trading community Characteristics Previous Manual With Trade net Process Submission of documents -Multiple submission -By dispatch clerks -Within office hours only -Single document through a single interface -From comfort of office -Available 24 hours daily Processing time/permit hours to 2-7 days 10 minutes Trips to the controlling At least required None required 3-35 documents documents authorities per documents Number of documents Dutiable goods handling Separate documents for Same electronic document Customs processing routed to Customs for processing 19 Controlled goods Separate handling different documents to Same electronic document Controlling routed to Controlling Agencies for processing Agencies for processing Fees Charged $10-$20 per document $2.88 per application Customs duties By cheque and cash Automated bank collection deductions Table 2: Comparison between the previous manual process and TradeNet process (Source: APEC Economies: Breaking down the barriers, Shanghai 2001) As can be seen from the table, one of the main benefits of TradeNet is the reduction in the turnaround time for processing of typical trade documents, from 2-4 days to as little as 10 minutes By simplifying trade procedures and protocols, TradeNet contributed to significant saving accruing from filling out a single online form versus over 20 papers forms in the past Using TradeNet, users only have to prepare a single permit application for the submission to the various controlling agencies and authorities Traders can file the application from their own offices with internet-based system Permit applications are routed electronically to be relevant government agencies for processing and approval After approval, officers return permits to the traders, who can then print hard copies in their offices Therefore, freight forwarders have reported time savings of 25%-35% in handling trade documentation as TradeNet operates 24 hours as compared to agencies that only open during normal office hours Consequently, better organization of shipments and improvement in overall productivity are achieved because of faster turnaround 3.2 Other benefits Besides the benefits to the trading community listed above, customer service is also improved since TradeNet accessible anytime and anywhere The tedious documentation is 20 replaced by an user-friendly platform with the 24/7 service standard Users can gain access to the system and the application just within 10 minutes In addition, TradeNet system brings in cost effectiveness for both users and service providers From the user’s perspective, users can save cost since they don’t have to print out numerous of documents and spent a lot of time and cost to submit these documents Having the system available on the web, users can access and the application Business operating costs like warehouse storage charges are reduced sharply since there is no delay in documentation From the service providers’ perspective, TradeNet system is designed to allow deployment on multiple serves where the load can be balanced It becomes easy for them to manage the transaction load up to the high performance expectation Government agencies also benefit from using the system Compared to the old method of customs duties collection, electronic platform makes it possible for the customs to receive payments faster since customs moved from a system of post-approval of applications to preapproval The system of pre-approval enables customs duties are prepaid by automated bank deductions The systems also experienced faster compilation of more accurate and complete external trade statistics as data need not be re-keyed in by the government agencies to compile the trade statistics Such accurate statistics will not only help the government agencies in their trade policy, trade surveillance and trade monitoring but also serve the private sector better by providing them with timely trade statistics for market analysis and marketing policy formulation Furthermore, clerks/couriers no longer need to exchange trade documents to various agencies, saving time and improving deployment of staffs It’s crucial for the government authorities to be more efficient in exercising controls whenever required As TradeNet is a server-based application, all changes and maintenance of the application and data are carried out the the server Thus, deployment for any future upgrades can be done at ease and instantaneously effected Being a core application within Singapore TradeXchange platform, which is a neutral electronic platform that facilitates the exchange of information in the trade and logistics community, TradeNet is enable to create connectivity to commercial systems and regulatory 21 systems in other countries available With the use of cutting edge technology and systems running on diversified platform, integration with trading partners and authorities can be easily and concisely implemented In addition, according to World Customs Organization, single window environment aims to contribute to the area data harmonization, reference library and international data standards As part of TradeXchange, TradeNet is able to access to commercial systems and regulatory systems in other countries This connectivity is able to simplify required procedures for international transactions Another advantage of TradeNet is that it fasters response to facilitate dynamic enforcement and implementation of rules and regulations In case of urgency, implementation of regulatory and policy changes can be done quickly with the system For instance, when there is an outspread of diseases, restrictions to import of specific type of goods to and from that region will be immediately imposed With electronic platform, TradeNet helps to eliminate the tedious dissemination process for any changes to be implemented under the manual process flow Therefore, timely and accurate enforcement are enhanced Last but not least, TradeNet makes it easier for further development of hardware and software to cater for local trade growth and international trade information exchange The first generation of TradeNet system was implemented on st January 1989 As part of continuous effort in upgrading technology, the latest 4.0 version of TradeNet was implemented in October 2007 It comprises major enhancements, providing a more simplified permit structure with less declaration fields In the future, Singapore government will continue to invest on improvement of hardware scalability Investment would help to scale up or down, adapting with the processing performance growth on transaction volume IV Success factors and lessons learned Critical success factors The main success factor of TradeNet lies in the Government’s foresight in identifying the problems, finding a solution and championing the implementation The goal of TradeNet is clearly defined as to reduce the cost of trade documentation, reduce turnaround time for trade documentation, streamline procedures, simplify documentation, standardize data and 22 exploit IT These crystal goals have helped the implementation of TradeNet become much easier and more successfully Besides, the success of TradeNet also comes from the new mechanism and involving parties, which was simplified to the utmost There is only a singular lead agency (the Trade and Development Board), one main operating party (the TradeNet Steering Committee), one single form of trade documentation (negotiated to reduce from the previous number of 20), together with one single submission, single interfere, and single process This can be considered a breakthrough in Singapore’s trade practice, and has proved itself a critical transformation to Singapore’s trade community Figure 10 Singapore’s Trade Facilitation Value Drivers (Source: Trade Facilitation Centre of Excellence, CrimsonLogic, 2012) Finally, the cohesiveness of all the stakeholders, the systematic planning with phased implementation strategy as well as the adoption and use of appropriate technology were also pivotal to the success The establishment of Singapore Network Services is an outstanding example to prove this cohesiveness The company, jointly owned by the TDB, Telecommunication Authority of Singapore, Civil Aviation Authority of Singapore and Port 23 of Singapore Authority, was incorporated to specifically develop and operate the TradeNet system Besides, International Business Machines Corporation (IBM) was also appointed the main contractor for systems integration and software development With the participation of 50 companies in the pilot run of TradeNet, Singapore has become one of the first countries to launch an integrated system linking private companies to the relevant authorities for cargo clearance As a result of such effective cooperation, it is no surprise TradeNet has come into a great success Lessons from the success of TradeNet The successful implementation of TradeNet in Singapore can be a classic example for neighbouring countries, including Vietnam, to learn from To ensure the successful implementation of a National Single Window system, as TradeNet in the case of Singapore, the government lead agency should keep in mind the following factors: 2.1 Commitment at the Highest Level To develop and implement the NSW system successfully, the lead agency must ensure the commitment from the government at the highest level for change, for computerization and to facilitate trade In Singapore, the Minister of Trade and Industry provided full support to the TradeNet team The government found it useful to set a deadline for the NSW system to be developed and implemented An influential person who would champion the new system is a critical factor in its adoption TradeNet had two influential champions 2.2 Multi-Agency Steering Committee At the policy level, the lead agency should set up and chair a multi-agency steering committee with private sector representation as early as possible The Steering committee will consider policy issues and set the direction for the sub-committees to work out the procedures and implement the system This will ensure private sector support for and use of the new system when it is developed This steering committee may draw its membership from a National Trade Facilitation Body (NTFB) The steering committee will consider policy issues and set the direction for the sub-committees to work out the procedures and implement the system 24 The steering committee should then set up a series of sub-committees comprising of representatives from both the public and private sectors to look into the following: ● Simplification of Documentation and Procedures - The work of this sub-committee will be to review the existing documentation requirements and operational procedures that will result in a more efficient port clearance of cargo The subcommittee will also look into the harmonization and standardization of the practices and procedures for the business community ● Development of a Community System - This sub-committee may look into an overall integrated trade and Customs documentation system using Information Technology (IT) and Internet to better service the trading community ● Data Administration - This sub-committee may examine the coverage and definition of trade data and published statistical reports for dissemination through the system 2.3 Establishment of a Corporate Vehicle The private sector on its own may not be prepared to take the risks to put forward the large capital outlay necessary to develop and implement a system that essentially performs a regulatory function for the government To overcome this, the lead agency may consider setting up a company with shareholders from both the public and private sectors The company will have the necessary capitalisation to develop and operate the system This was done in the case of Singapore’s TradeNet system by creating a separate corporate entity, Singapore Network Services Ltd (SNS) 2.4 Technical Service Providers To provide for competition, the lead agency may select a number of (the actual number will depend on the volume of daily transactions to be handled) service providers to develop software to run the system The software developers shall sell their software and services to the business community based on their marketing and merit They shall also provide the training and technical support to their customers to operate the system efficiently 2.5 Phased Implementation 25 To ensure success, the lead agency should consider a phased implementation of the NSW system Phased implementation does not mean that, in the first phase, each government institution or party develops and implements its own system, and that, in the second phase, these institutions or parties attempt to merge their existing systems together Rather, it means strong cooperation between all institutions and parties involved in implementing an integrated system of limited scale or scope, followed by a full-scale or scope implementation The sequential approach outlined below may be practical: ● Selected Documents and Goods - During the initial period, the system only accepts the simpler type of documents such as those for non-dutiable and non-controlled goods for processing After the system has been tested and stabilized, the lead agency may consider expanding the system to accept for processing the documents for other goods such as dutiable, controlled or quota items ● Pilot Group - The system could initially be configured to accept a pilot group of users in the initial period At launch, it is not certain that the new system will operate smoothly It will be a disaster if the “big bang” method is adopted and fails This will affect the entire business community For the first phase, a pilot group of users may be accepted to use the system After the system has been found to function well, then the lead agency may open the system gradually to other users Once the system is found to be working smoothly, the lead agency may then set a deadline for all users to use the system by a certain date following which they will have to pay a punitive charge if they continue to use the manual system for submission and processing 2.6 Establishment of Document Service Centres The setting up of document service centres is critical to the acceptance and success of the new system There may be a large number of SMEs that not have the daily volume to justify buying a computer system to prepare and submit their trade and Customs documents For such enterprises, the lead agency should encourage the use of document service centres These centres are registered users of the new system However, instead of preparing and submitting the documents for their own trade, they it on behalf of the SMEs They will levy a fee to provide such services 26 V Conclusion In the mid 1980’s, the Singapore government decided to streamline the processes involved in the regulatory framework of trade permit approvals to further strengthen the established trade hub status of Singapore and to improve external trade Starting with the trade process involving a few government agencies in 1989, the Singapore TradeNet System today provides the trading community with an electronic means of submitting trade documents to all relevant government authorities (Singapore Customs and the controlling agencies) for their processing, through a single electronic window Within 10 minutes after submission of the permit application, traders will receive an electronic response, be it approval or rejection, with details on the approval conditions or reasons for rejection TradeNet has revolutionised the trade documentation process in Singapore and resolved many other problems during trade practice process: Faster response to facilitate dynamic enforcement and implementation of rules and regulations; More accurate and prompt collection of trade statistics; Ease of Use and Increased Efficiency and Productivity; Ease of Integration and Connectivity; Cost effectiveness for both users and service providers, etc In the future, TradeNet will enhance its connectivity to commercial IT systems via TradeXchange so as to achieve more seamless flow and re-use of data along the supply chain The biggest obstacle to implement this, however, is to align the interests of IT service provides, including community platform operators, so that they see the value in integrating with TradeXchange Though the future of TradeNet is inconclusive, it is undeniable that its implementation in Singapore has by far been a great success Getting to know and understand its critical success factors, we can draw out several valuable lessons for ourselves, and use the knowledge and experience from which to improve our own trade mechanism, enhance our trade competitiveness, and move forward to be a more trade-friendly nation on the world’s trade map 27 REFERENCES UNESCAP (2010) Towards a single window trading environment [online] Available at: https://www.unescap.org/sites/default/files/brief2.pdf [Accessed 19 Nov 2018] UNECE (n.d.) 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