Singapore can become the largest port in the world because goods from Africa and Europe pass through the Straits of Malacca from Chinese mainland, Japan, South Korea, North Korea, Taiwan Province Province, Hong Kong, Macao and even the Russian Far East. On the one hand, the freight rate of big ships is much lower than that of small ships, and the owner wants to use big ships; On the other hand, because the big ship is too big, the destination of the goods on board is often not single, and many ports can't dock big ships (such as Shanghai).

Therefore, shipowners often choose to transship by big ship first, and then transship in Singapore. It is to transport the goods to Singapore first, and then transfer them to a small boat in Singapore and transport them to yourself. This is because the distance between Singapore and Chinese mainland, Japan, South Korea, North Korea, Taiwan Province Province, Hongkong, Macau and Russian Far East is almost equal.

Besides, Singapore is a free trade port, and transshipment has no formalities and taxes.

Therefore, although Chinese mainland's futures trading is in Shanghai, the delivery place of the goods is still in Singapore. Almost all commodities listed on China Futures Exchange are delivered in Singapore. The annual futures delivery in Singapore alone exceeds $2 trillion.

Singapore has thus become a world logistics center. As we all know, the center of logistics must be the center of capital flow, and the center of capital flow must be the center of finance; A financial center will certainly give birth to a business center, a life center and a service center. 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 thousands of foreign banks, and banks need hundreds of thousands of employees, while industries serving banks need more people. This is the fundamental reason for Singapore's development.