Singapore is the most natural transshipment port. First of all, because Singapore is a deep-water port, it can dock large ships. Secondly, the distance between Singapore and the above-mentioned destination port is similar. Most importantly, Singapore is a free trade port, and transshipment is free of formalities and taxes.

When you become a transit port for logistics, you become a trading place for bulk goods. For example, although many futures transactions in Chinese mainland are conducted in China, most of the goods are delivered in Singapore. In particular, most commodities listed on China Futures Exchange (such as wheat and soybeans) are delivered in Singapore. 10 years ago, the annual futures delivery in Singapore alone exceeded the GDP of China in one year. Therefore, Singapore is not only the largest logistics center in the world, but also the world financial center and trade center.

Because in order to handle their own goods, banks around the world need to set up branches in Singapore. In a country with a population of less than 5 million, there are hundreds of foreign banks and hundreds of thousands of bank employees. The industry serving banks needs more people. If Singapore is underdeveloped, it can't even do this.