With a substantial increase in external trade, demand for logistics services also
grew rapidly. Singapore took the lead in investing heavily in logistics infrastructure,
developing its port and transportation. In 1996, it was estimated by Singapore’s
Economic Development Board that the logistics sector in Singapore had
committed a record S$1.1 billion in fixed assets, a hefty 70 % increase over 1995.
Total business spending of the logistics sector in Singapore rose 40 % in 1996 to
more than S$280 million.