Identifier
Created
Classification
Origin
06SINGAPORE3073
2006-09-25 08:44:00
UNCLASSIFIED
Embassy Singapore
Cable title:
TEXTILES AND APPAREL: UPDATED STATISTICS AND
how-toVZCZCXYZ0000 RR RUEHWEB DE RUEHGP #3073 2680844 ZNR UUUUU ZZH R 250844Z SEP 06 FM AMEMBASSY SINGAPORE TO RUEHC/SECSTATE WASHDC 1334 INFO RUCPDOC/USDOC WASHDC
UNCLAS SINGAPORE 003073
SIPDIS
SIPDIS
STATE FOR EB/TPP/ABT THOMAS LERSTEN
STATE PASS COMMERCE/ITA/OTEXA/MARIA DQANDREA
USTR ABIOLA HEYLIGER
E.O. 12958: N/A
TAGS: KTEX ECON ETRD SN
SUBJECT: TEXTILES AND APPAREL: UPDATED STATISTICS AND
PROJECTION OF FUTURE COMPETITIVENESS
REFS: A) STATE 138090 B) 04 SINGAPORE 2753
UNCLAS SINGAPORE 003073
SIPDIS
SIPDIS
STATE FOR EB/TPP/ABT THOMAS LERSTEN
STATE PASS COMMERCE/ITA/OTEXA/MARIA DQANDREA
USTR ABIOLA HEYLIGER
E.O. 12958: N/A
TAGS: KTEX ECON ETRD SN
SUBJECT: TEXTILES AND APPAREL: UPDATED STATISTICS AND
PROJECTION OF FUTURE COMPETITIVENESS
REFS: A) STATE 138090 B) 04 SINGAPORE 2753
1. In response to Ref. A, Post provides the following
updated information concerning SingaporeQs textile and
apparel industry.
STATISTICS
--------------
Total Industrial Production:
Year USD (million)
2005 124,758
2006 H1 not available
Total Textile/Apparel Production:
Year USD (million)
2005 469.6
2006 not available
Textile/ApparelQs share of Imports/Exports (percent):
Year Imports Exports
2005 0.94 0.95
2006 H1 1.47 1.07
Textile and apparel exports to the United States: USD
(million)
Year Textile Exports Apparel Exports
2005 2.3 735.5
2006 H1 3.0 396.6
Total Manufacturing Employment:
2005 370,650
2006 H1 not available
Textile/Apparel Employment:
2005 9,539
2006 H1 not available
USD Exchange Rate:
2005 1.66
2006 H1 1.59
Source: International Enterprise (IE) Singapore, Department
of Statistics, and Monetary Authority of Singapore
2. SingaporeQs textile/apparel industry continues to
diminish in importance compared to key industries such as
electronics, chemicals, and precision engineering.
Domestic production of textiles and apparel has contracted
from an already low 1.5% of total manufacturing output in
1980 to 0.4% in 2005. Employment in this sector has
similarly fallen, from 16,922 workers in 1995 to 9,539 in
2005. In 2005, Singapore had 725 textile/apparel
companies, of which 100 were involved in manufacturing,
mainly of higher-end labels. These manufacturers are
subject to zero tariffs under the U.S.-Singapore Free Trade
Agreement. In July 2006, USTR recommended textile rules of
origin changes to the FTA in response to a positive
determination regarding SingaporeQs short supply request.
SingaporeQs textiles and apparel exports to the United
States have steadily declined, by 15.2% in 2004; 12.0% in
2005; and 19.3% in the first half of 2006.
3. With government encouragement, the textile/apparel
industry has evolved from a low-cost, labor intensive base
(that began to move offshore in the 1980s) into a fashion
and design hub. More than 100 home-grown designers and
brands currently operate in Singapore. The lifting of
textile and apparel quotas under the WTO in January 2005
has given buyers more leverage to dictate prices to
vendors.
4. To remain competitive and take advantage of quota
eliminations, Singapore manufacturers continue to relocate
operations to low-cost neighboring countries, China, South
Asia, Central America, and Africa. Restrictions on China
imposed by the United States and the European Union have
had minimal effect on Singapore companies. As of 2005,
more than 70 international buying houses have set up
operations in Singapore (with GOS-provided incentives) to
conduct regional sourcing of textiles and apparel in South
and South East Asia worth about US$2.5 billion annually.
HERBOLD
SIPDIS
SIPDIS
STATE FOR EB/TPP/ABT THOMAS LERSTEN
STATE PASS COMMERCE/ITA/OTEXA/MARIA DQANDREA
USTR ABIOLA HEYLIGER
E.O. 12958: N/A
TAGS: KTEX ECON ETRD SN
SUBJECT: TEXTILES AND APPAREL: UPDATED STATISTICS AND
PROJECTION OF FUTURE COMPETITIVENESS
REFS: A) STATE 138090 B) 04 SINGAPORE 2753
1. In response to Ref. A, Post provides the following
updated information concerning SingaporeQs textile and
apparel industry.
STATISTICS
--------------
Total Industrial Production:
Year USD (million)
2005 124,758
2006 H1 not available
Total Textile/Apparel Production:
Year USD (million)
2005 469.6
2006 not available
Textile/ApparelQs share of Imports/Exports (percent):
Year Imports Exports
2005 0.94 0.95
2006 H1 1.47 1.07
Textile and apparel exports to the United States: USD
(million)
Year Textile Exports Apparel Exports
2005 2.3 735.5
2006 H1 3.0 396.6
Total Manufacturing Employment:
2005 370,650
2006 H1 not available
Textile/Apparel Employment:
2005 9,539
2006 H1 not available
USD Exchange Rate:
2005 1.66
2006 H1 1.59
Source: International Enterprise (IE) Singapore, Department
of Statistics, and Monetary Authority of Singapore
2. SingaporeQs textile/apparel industry continues to
diminish in importance compared to key industries such as
electronics, chemicals, and precision engineering.
Domestic production of textiles and apparel has contracted
from an already low 1.5% of total manufacturing output in
1980 to 0.4% in 2005. Employment in this sector has
similarly fallen, from 16,922 workers in 1995 to 9,539 in
2005. In 2005, Singapore had 725 textile/apparel
companies, of which 100 were involved in manufacturing,
mainly of higher-end labels. These manufacturers are
subject to zero tariffs under the U.S.-Singapore Free Trade
Agreement. In July 2006, USTR recommended textile rules of
origin changes to the FTA in response to a positive
determination regarding SingaporeQs short supply request.
SingaporeQs textiles and apparel exports to the United
States have steadily declined, by 15.2% in 2004; 12.0% in
2005; and 19.3% in the first half of 2006.
3. With government encouragement, the textile/apparel
industry has evolved from a low-cost, labor intensive base
(that began to move offshore in the 1980s) into a fashion
and design hub. More than 100 home-grown designers and
brands currently operate in Singapore. The lifting of
textile and apparel quotas under the WTO in January 2005
has given buyers more leverage to dictate prices to
vendors.
4. To remain competitive and take advantage of quota
eliminations, Singapore manufacturers continue to relocate
operations to low-cost neighboring countries, China, South
Asia, Central America, and Africa. Restrictions on China
imposed by the United States and the European Union have
had minimal effect on Singapore companies. As of 2005,
more than 70 international buying houses have set up
operations in Singapore (with GOS-provided incentives) to
conduct regional sourcing of textiles and apparel in South
and South East Asia worth about US$2.5 billion annually.
HERBOLD