1. INTRODUCTIONThere is no doubt that an efficient transportation system constitutes the backbone of a healthy economic society (Bloomberg, Hanna and Murray, 1998). Comtois (2007) also recognizes that transport plays a considerable role in the economy with its omnipresence throughout the production chain, at all geographical scales. Singapore Review (2007) stated that Singapore relies heavily on exports; therefore, freight transportation plays an important role in boosting Singapore's economy and transforming it into what it is today. Singapore enjoys a favorable geographical position, making it the leading hub for transshipment of goods to and from around the world. Singapore is also strengthening its world-class port and airport facilities as well as an extensive network of highways, enabling effective and efficient transfer of goods between multiple modes of transport. This article will discuss the economic role of freight transportation in Singapore's economy and how Singapore's advancement in the global economy affects local demand for freight transportation.2. THE ECONOMIC ROLE OF FREIGHT TRANSPORT IN SINGAPOREWorld Trade Magazine (December 2007, p. 14) states that countries with good maritime logistics tend to attract export-oriented foreign direct investment - considered, along with trade, as a means of accessing knowledge and technology. In an online survey conducted by a World Bank study in 2007 of some 900 freight forwarders and express carriers working in international logistics companies in 100 countries, Singapore ranked first out of 150 countries in terms of speed of shipments of export customs clearance, the competence of customs brokers and a corruption-free logistics environment, etc. From here, it can be seen that the efficiency of freight transportation in Singapore also plays an important role in attracting foreign organizations to establish bases of operations here for the distribution of goods and services regionally, as well as 'internationally. One such organization is Broadcom, a company specializing in the manufacturing of electronic products. Broadcom CEO Rick Hodgman commented to World Trade Magazine in 2005: “We use Singapore as a shipping hub. The airport, customs and logistics aspect is very important for us because the equipment that we manufacture throughout Asia goes through Singapore. Broadcom needs a very good logistics base and Singapore has the best of any country in Asia. » Another major company that chose Singapore to establish one of its regional offices was Toyota Motor Asia Pacific Pte. Ltd. Its Vice President of the General Affairs Division, Mr. Kenichi Yamaguchi, who also