The trade of Singapore is moving towards Asia and there are chances that in the coming decade it would become the biggest commodity trading hub of the world. The Republic is the biggest trading commodity hub in Asia and there are chances that it will enjoy the benefits that come with the increasing demands of the agricultural and metallic products. However, the commodities sector is going to face several challenges as the competition in this field is increasing.
Factors
Some of the important factors that need to be considered in this aspect are:
- The rates of oil has markedly decreased
- The margins have been squeezed because of the excessive supply in the agricultural department
- In the mineral and metal market, vitality is considered the new normal
It has been noticed that despite all these changes the commodity market of Singapore has remained constant. Over the past decade, there has been a growth of 7 percent in the sector and it has reached to the value of $1.25 trillion.
Due to the global market volatility, the producers of the upstream commodities have suffered the most. On the other hand, most of the organizations have been dealing with the downstream commodities. The trade agency has the authoritative role and so they have been driving the growth of the commodity sector.
1-Downstream Companies
It has been noticed that at the time of the oversupply the downstream companies have to optimize the situation so that there would be no loss. On the other hand, when the time is good the downstream organizations will succeed and in the bad times, you will find them as the most active companies.
2-Growth of employment
In the commodity sector, there has been a 7 percent growth of employment and it has provided 15,400 people a decent job. 80 percent of the jobs consist of:
- Executive
- Manager
- Professionals
- Technician
Here 70% of the jobs have been given to the Singaporean and permanent residents. You would be amazed to know that 80% of the commodity trading organizations are located in Singapore.
3-Commodity trading
Some of the famous commodity trading organizations in this region is:
- Anglo-Swiss
- Glencore
- Shell
- PetroChina
- BP
- Cargill
- Louis
- Wilmar
- Fortrec
- Much more
In the last years, 40 more trading companies have been established in the region. The flow of 60% of commodity trading is taking place in the Asian time zone. As the economies in the region are increasing so there is hope that this set will soon increase.
Bottom line
Singapore is ranking in the top three, in commodity trading hub around the globe. Despite being the largest hub in Asia, there are many challenges that have to be met by Singapore in order to become the world’s largest trading hub. So the companies will process their assets in other countries of Asia so that their revenue will grow at a faster rate.
To know more, visit the page below,
http://www.straitstimes.com/business/economy/spore-can-be-worlds-biggest-commodity-trading-hub
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