2 AskBiz guides on ASEAN trade, covering Free Trade Zones, Import Duty and related operating decisions for SME founders.
Singapore manufacturer importing components from China: normal route = 15% duty on SGD 200K = SGD 30K duty/year. Route through Iskandar FTZ (Malaysia): components enter Malaysia FTZ duty-free, processed/assembled, exported to Singapore under ASEAN CEPT = 0% duty. Saving: SGD 30K/year. But: must have genuine manufacturing activity in FTZ (not just transshipment = illegal). Setup cost: SGD 80K (lease, permits). Payback: 2.7 years.
5 min readRetailer imports electronics. From Singapore (ASEAN origin): 0% duty on SGD 100K = duty SGD 0. From China (non-ASEAN): 15% duty = duty SGD 15K. Savings: SGD 15K per shipment. 12 shipments/year = SGD 180K savings. But: ASEAN origin certification required (supplier must have ASEAN Certificate of Origin). Most SMBs don't know this exists.
5 min read