Transcript Singapore - Technion – Israel Institute of Technology

SINGAPORE
Presented by:
Kobi Swissa
Eli Veksler
Prologue
• Singapore is a sovereign city-state lies in Southeast Asia
• Population in Singapore is: 5.5 Million
75% are Chinese and the
rest are Malay and Indian
• Only 60% of Singapore
population are citizens
Prologue
• GDP per capita: $60,000
(world rank: 8)
• Unemployment: 1.8% (sep 2013)
• Singapore area is about 700 𝐾𝑀2
History
• 1819 – The British bought the southern island area and
built a free of taxes port
• 1824 – The British took over the whole island
• 1869 – Opening of the Suez Canal –
Singapore became a major
world trade node with
one of worlds busiest ports
• 1965 - Independence
Government and Politics
• Singapore is a parliamentary republic
• Consistently rated one of the least corrupt countries
• Executive power rests with the Cabinet led by the
President but mostly by the
Prime Minister –
Lee Hsien Loong (Since 2004)
• The president is elected
through popular vote
Economy
• Main reason for Singapore’s Economy success is its location
on one of the world’s active transportation paths
• The 40% foreign residents make up 80% of the construction
industry and up to 50% of the service industry
• Singapore economy based mainly on services:
70% - Services
30% - Manufacturing
Tax Regime
• A major reason for Investors turn to Singapore for
establishing their operations is the Tax Regime:
Corporate Tax Rates:
Income
Tax Rate
Profits for up to $240,000
8.5%
Profits above $240,000
17%
Capital gains accrued by the company
0%
Dividend distribution to shareholders
0%
Foreign-sourced income brought into Singapore
0 – 17%
Tax Regime
• A major reason for Investors turn to Singapore for
establishing their operations is the Tax Regime:
Personal Tax Rates:
Income
Tax Rate
Tax rate on first $20,000
0%
Tax rate on above $320,000
20%
Tax rate on capital gains
0%
Tax rate on income earned overseas
0%
Tax rate on dividends received from Singapore
company
0%
Singapore Airlines
• Singapore Airlines is consistently recognized as the
world’s “best” airline
• Singapore Airlines worth $14 billion
• Singapore Airlines carried around 18 million passengers
in 2012
• Singapore Airlines has consistently
been one of the most profitable
airlines globally
Financial Statistics
Year ended
Revenue
(m$)
Expenditure
(m$)
Profit
EPS after tax
Profit before attributable to
– diluted
taxation (m$) equity holders
(cents per
(m$)
share)
Operating
profit
(m$)
31 March 2004
9,761.9
9,081.5
680.4
820.9
849.3
69.7
31 March 2005
12,012.9
10,657.4
1,355.5
1,829.4
1,389.3
113.9
31 March 2006
13,341.1
12,127.8
1,213.3
1,662.1
1,240.7
101.3
31 March 2007
14,494.4
13,180.0
1,314.4
2,284.6
2,128.8
170.8
31 March 2008
15,972.5
13,848.0
2,124.5
2,547.2
2,049.4
166.1
31 March 2009
15,996.3
15,092.7
903.6
1,198.6
1,061.5
89.1
31 March 2010
12,707.3
12,644.1
63.2
285.5
215.8
18.0
31 March 2011
14,524.8
13,253.5
1,271.3
1,419.0
1,092.0
90.2
31 March 2012
14,857.8
14,571.9
285.9
448.2
335.9
27.9
31 March 2013
15,098.0
14,869.0
229.2
482.0
1,064.8
87.4
• References: Singapore Airlines annual reports
• **EPS – earn per share
Why Singapore Airlines
so successful?
• Innovation – e.g. SIA was the first air line company to fly with
airbus A380 (2007)
• Cost effective:
Service Excellence
• Quality of human resources are difficult for
competitors to imitate
• The front-line staff tend to be the most visible
element to consumers
• Front-line staff at SIA are
empowered to take corrective
actions as needed for service
recovery
Service Excellence
There are 5 main elements for Service Excellence:
1. Stringent selection and recruitment processes
 Out of 16,000 applications received annually, only 500 to
600 new cabin crews hired
2. Extensive training and retraining of employees
Newly recruited cabin crew are required to undertake
intensive four-month training courses, the longest and
most comprehensive in the industry
Service Excellence
3. Building high-performance service delivery
teams.
Team leaders are the ones to evaluate the crew, monitor
staff development, staff performance, supervise them.
4. Front-line staff empowerment.

The staff have a clear concept of their
authorities, For example ,front-line
staff empowered to raise the baggage
weight to 25 or 50 kg instead of 20kg.
Service Excellence
5. Employees motivation.
 SIA employs various forms of reward and recognition.
including interesting and varied job content, symbolic actions,
performance-based share options, and a significant
percentage of variable pay components.
conclusions
• Singapore is successful because of stable
government, very convenient tax regime
and a high excellence motivation.
• Singapore very small state but has
powerful global Impact.
• SIA is the “world best airline” specially
because of service excellence and cost
effectiveness result from a good human
resource management.
Bibliography and key words
• http://hbr.org/2010/07/the-globe-singapore-airlines-balancing-act/ar/1
• http://www.venturerepublic.com/resources/singapore_airlines__an_excellent_asian_brand.asp
• http://www.heracleous.org/uploads/1/1/2/9/11299865/msqwirtz_heracleous__pangarkar_2008_hr_in_sia.pdf
• “Managing human resources for service excellence and cost effectiveness at
Singapore Airlines” ,Jochen Wirtz Employees motivation
Key words:
GDP, Tax Regime, Capital gains, Dividend
ROA, Net Profit Margin, EPS