Singapore’s economic success has always been built on open global trade. With a small domestic market, Singapore has forged an extensive network of Free Trade Agreements (FTAs) to keep its economy outward-looking and competitive. These FTAs are legal treaties that make trade and investment between countries easier, giving Singapore-based businesses advantages like tariff concessions, preferential access to foreign markets, faster entry into new countries, and even intellectual property protection.
As we enter 2025, FTAs continue to shape Singapore’s economic future by opening doors for founders, entrepreneurs, and business owners to expand globally with confidence. In this guide, we break down how FTAs benefit Singapore companies, share examples of local businesses leveraging these agreements, and explain how to navigate FTAs to drive growth.
Singapore’s economy has consistently thrived on its strategic commitment to international trade. Given its limited domestic market size, access to international markets is not merely beneficial—it is vital for sustainable business growth. Amid increasing global trade tensions and protectionism, Singapore’s extensive network of Free Trade Agreements (FTAs) has become an indispensable framework for economic stability and growth.
For international entrepreneurs and SMEs planning to enter or expand in the Singapore market, effectively utilizing these FTAs can substantially strengthen market positioning, protect profitability, and expedite global expansion.
Singapore maintains an extensive portfolio of 27 FTAs, including significant bilateral agreements with major economies such as the United States, China, and Australia, and comprehensive regional agreements like the Regional Comprehensive Economic Partnership (RCEP). RCEP alone comprises 15 Asia-Pacific countries, representing approximately 30% of global GDP.
Typical advantages of these FTAs include:
For example, the EFTA-Singapore FTA significantly reduces tariffs on goods entering European EFTA member countries from Singapore, thus increasing the competitiveness of exporters. Similarly, the US-Singapore FTA offers duty-free access to the extensive American market, presenting direct cost savings and accelerated market access opportunities for businesses.
The strategic importance of FTAs became particularly evident in April 2025, following the United States' decision to implement a universal 10% tariff on all imports to support domestic manufacturing. Singapore immediately experienced economic repercussions, with the Monetary Authority of Singapore (MAS) projecting potential disruptions for crucial sectors such as semiconductors, pharmaceuticals, and advanced electronics.
Singapore swiftly responded by establishing a specialized task force to aid affected industries and engaging directly with US trade officials to negotiate exemptions for key sectors. This incident emphasized the volatility inherent in global trade relationships and reinforced the strategic importance of diversified market access provided by FTAs.
Businesses that had proactively diversified through Singapore’s FTAs were better positioned to mitigate the impacts, underscoring the agreements' strategic value.
Read more about Singapore’s trade strategy in response to the US tariffs.
FTAs are valuable across various industries, extending beyond major exporters to smaller firms and service providers:
In 2024, Singaporean news publication The Straits Times featured how Tat Hui Foods, the producer of Koka instant noodles, successfully leveraged the US-Singapore FTA to achieve a 300% increase in sales within the US market. This case highlights the tangible benefits of tariff reductions and streamlined customs processes that FTAs offer businesses seeking international expansion.
Singapore’s trade strategy also includes specialized infrastructure that complements FTAs:
These infrastructure elements strengthen Singapore’s position as a regional trade hub, enhancing the value delivered by FTAs.
While FTAs provide significant trade advantages, businesses must also navigate a broad spectrum of local regulatory requirements. From company incorporation to tax filings and payroll administration, building and maintaining a compliant operation in Singapore requires coordinated attention across multiple areas.
This is where corporate service providers add value. A reliable partner can ensure that your company stays on top of statutory deadlines, manages accurate financial records, and remains fully compliant with local authorities such as ACRA and IRAS—giving business owners the freedom to focus on growth and expansion.
ATHR Corporate Services is a Singapore-based provider of end-to-end corporate services tailored for founders, SMEs, and foreign entrepreneurs. Our solutions are designed to streamline your operations and ease the administrative burden of running a business.
We offer:
At ATHR Corporate Services, our mission is to empower that continuity. From seamless incorporation and statutory compliance to digital payroll, accounting, and tax services, we help companies streamline operations so leaders can focus on what matters most—adapting and thriving in a shifting global economy. Whether you’re starting a new venture or preparing your existing business for the challenges of the next trade cycle, our digital-first platform and experienced support team offer peace of mind in a time of complexity.
Looking to reduce trade costs and build resilience through Singapore’s FTAs? Book a call with ATHR to get started.
The ATHR Content Team is a group of professional writers from Singapore and the Philippines, committed to delivering informative, practical, and engaging content for business owners across Southeast Asia.
