What geographic advantages have contributed to Singapore's success as a global trade powerhouse?

Singapore's strategic location at the southern tip of the Malay Peninsula, commanding the entrance to the Strait of Malacca, provides its primary advantage. This strait serves as the shortest maritime trade route between East Asia and Europe, with approximately 30% of the world's global trade ($3.5 trillion worth) passing through annually, including one-third of global oil and gas traded by sea. Additionally, Singapore's time zone strategically positioned between American and European markets created a natural opportunity to bridge trading hours gaps. This geographic advantage led to the establishment of the Asian dollar market in 1968, forming the foundation of Singapore's modern banking and finance industry. These natural advantages, combined with business-friendly policies, have secured Singapore's position as the world's second busiest port since 2010.