•Background in Singapore in development of free trade zones:
Singapore engaged in free transit trade as its major economic activities during the British colonization. Since it became independent from Malaysia in 1965, the Singaporean government has developed industry in full swing to make up for its shortage in industry. Meanwhile, as a free port, Singapore has tried hard to improve the transit trade facilities in an effort to expand the transit trade volume. In September 1969, in an attempt to help develop Jurong Industrial Zone, it, first of all, set up the first Free Trade Zone (FTZ) of the nation at Jurong Port. Under the FTZ policy, the business concerns operating in the FTZ could be exempted from taxes and dues as well as government fees when they stored imported goods, repacked and re-exported them. The Free Trade Zone significantly facilitated transit trade, making Jurong Industrial Zone become both the strongholds of industrial production and the activity arena of transit trade. That policy significantly fastened the pace of the development of Jurong Industrial Zone.

In line with the in-depth of international division of labor, the free trade zones throughout the world have gradually converted from pure transit trade into processing and manufacture and have operated both financial and service industries. Swimming with the worldwide tide, the free trade zones in Singapore have permitted foreign investors to directly invest in the zone to operate industries and commerce, providing duty-free favor and significant freedom in input and output of banking services, labor, funds and supplies. As a result, Singapore has become the world’s second largest integrated container port, second only to Hong Kong.

Under the open-door policy, Singapore has continually improved the port and airport facilities and focused heavily on human resources education and on upgrading the high-efficiency ports.

• Port
At the moment, there are six port zones in Singapore. Among them, Sembawang Wharves lie in the north with Malaysia across the water. The other five lie in the south coast, i.e., Jurong Port, Pasir Panjang Wharves, Keppel Wharves, Tanjang Pagar Wharves and Telok Ayer Wharves lying from east toward west. The wharves of the six ports provide a total of approximately 13,500 meters of berth spaces, all being deepwater ports except Pasir Panjang Wharves and Tanjang Pagar Wharves, around 8∼11 meters in general in those berths , providing over 10,000 berths over 10-meter deep, constantly ready to accommodate over 10,000 tonnage ships all the time without any waiting for rising tide. The entire port provides 39 berths for pelagic boats, 47 non-pelagic boat berths. The isles in the south provide 70 berths for oil tankers, providing 840,000 M2 of warehouse spaces. The open-air wharves provide 320,000 M2 of terminal yards. In addition, where in Pasir Paniang Wharvesand Tanjang Pagar Wharves, there are extraordinary back load barge wharves.

•The Airports
In Singapore, the Civil Aviation Authority of Singapore “CAAS” is a legal unit under the jurisdictional of the Ministry of Transportation. It talks with other countries regarding the aeronautic agreements on behalf of the Singaporean government. It controls the aircraft and aeronautic industry registered with Singapore and accredits and issues licenses to aircraft maintenance engineers and other people working for aircraft. In Singapore, the Civil Aviation Authority of Singapore“CAAS”) strives for safe and superior services for the civil aeronautic and airport business operation.

On July 2, 1981 as Singapore Changi Airport was officially dedicated, it was officially operated by the Civil Aviation Authority of Singapore “CAAS”). Singapore Changi Airport used to be an agency in charge of transportation under the jurisdiction of Ministry of Transportation until 1984 when it was reorganized into a national enterprise. It is the sole non-government airport in Singapore. Located in the east part of Singapore, Singapore Changi Airport is within easy access to transportation facilities and is only a 20-minute drive away from downtown Singapore. It operates with the First and Second Terminal Buildings and an approximately 80-meter tall ultramodern control tower. The Airport is proud of its magnificent terminal buildings which are in H-shaped layout, with the departure hall on the second floor and the arrival hall on the ground floor, with all sorts of available facilities. Since Singapore Changi Airport was dedicated, there is a passenger jumbo landing or taking off in every six minutes on average. Singapore Changi Airport has become a world renowned aeronautic hub.

When Singapore Changi Airport was inaugurated in 1981, the Changi Airfreight Center “CAC”) was established at the same time to render cargo services within the scope. In 1985, the free trade zone was established at the spot where the airport and land operation area meet, encompassing a total area of 78 hectares, as a free trade zone operating 24 hours, rendering one-stop-for-all services.

•Free Trade Zone (FTZ)
Singapore officially passed the Free Trade Zone Act) [*2] in 1969 as the very authority to enforce free trade zone policies, operating customs operation inside the territory. The Minister is authorized to, in line with the needs of the regional development, announce the zones inside Singaporean territories which could be built into a free trade zone. The Minister is authorized to appoint a government unit or a corporation to function as the organization to operate or take charge of the free trade zones and, through the government gazette, appoint consulting management committee members for free trade zones. The consulting management committee members will set up the Consulting Management Committee as the consulting authority for the organizations which operate free trade zones.

•The responsibilities and functions of the authorities in charge of or operating free trade zones:

In accordance with the Free Trade Zone Act, the authorities in charge of or operating free trade zones shall propose the required facilities of the free trade zones to assure sound development of the free trade zones.

The authorities in charge of or operating free trade zones are entitled to issue construction licenses to individuals to build the construction which live up to the needs of free trade zones.

The authorities in charge of or operating free trade zones are entitled to, at anytime at their discretion, order removal of cargoes out of a free trade zone, or order discontinuation of any business operation to safeguard public interests, safety and health in the zone, Any party who receives such order may, if in disagreement, petition disagreement or objection to the Minister within fourteen days. The decision rendered by the Minister is deemed final and irrevocable. An individual or corporation who receives such decision shall not appeal to a court against such decision.

The authorities in charge of or operating free trade zones are required to report to the Minister of the result of business performance so that the Minister will, in turn, assemble such facts and report to the Parliament.

No individual shall enter or reside in a free trade zone unless approved by the authorities in charge of or operating free trade zones.

The Minister may update laws and ordinances concerned as the actual demand for free trade zones may justify. All updated laws shall be published in the government gazettes and submitted to the Parliament for information.