Singapura's rise as a trade-post was concurrent with the era known as Pax Mongolica or "Mongolian peace", where the Mongol influence over both the overland and maritime silk roads provided a context in which a new global trading system could develop.
Previously, shipping occurred on a long-distance routes from the far east to India or even further west to the Arabian peninsula, which was relatively costly, risky and time-consuming.
However, the new trading system involved the division of the maritime silk road into three segments: an Indian Ocean sector linking the Gulf of Aden and the Straits of Hormuz-based Arab traders to India, a Bay of Bengal sector linking the Indian ports with the Straits of Malacca and its associated ports including Singapura and the South China Sea sector linking Southeast Asia with Southern China.

Singapura achieved its significance due to its role as a port.
It seems to fit as least in part the definition of a port of trade in which trade is less a function of the economy and more a function of government policy; thus trading would have been highly structured and institutionalized, with government agents playing key roles in port activities.
Portuguese traders' account in particular, suggest that Singapura operated in such a manner.
Reports from merchants of different countries also indicate that Singapura was a point of exchange, rather than a source for goods.
Local products were limited in type and mainly consisted of lakawood, tin, hornbill casques (an ivory-like part of the hornbill bird, which was valued for carved ornaments), some wooden items and cotton.
Other commonly traded products included a variety of fabrics (cotton and satins), iron rods, iron pots, and porcelains.
Chinese traders also reported that there were agricultural products but very few due to poor soil.
Although these goods were also available from other Southeast Asian ports, those from Singapura were unique in terms of their quality.
Singapura also acted as a gateway into the regional and international economic system for its immediate region.
South Johor and the Riau Archipelago supplied products to Singapore for export elsewhere, while Singapura was the main source of foreign products to the region.
Archaeological artefacts such as ceramics and glassware found in the Riau Archipelago evidence this.
In addition, cotton was transshipped from Java or India through Singapura.

The increase in activities by Chinese traders seems especially significant for Singapura and its trade.
Report by Wang Dayuan indicates that, by this time, there was a Chinese settlement in Singapore living peaceably with the indigenous population.
Singapura's rise as a trade-post was concurrent with the era known as Pax Mongolica or "Mongolian peace", where the Mongol influence over both the overland and maritime silk roads provided a context in which a new global trading system could develop. Previously, shipping occurred on a long-distance routes from the far east to India or even further west to the Arabian peninsula, which was relatively costly, risky and time-consuming. However, the new trading system involved the division of the maritime silk road into three segments: an Indian Ocean sector linking the Gulf of Aden and the Straits of Hormuz-based Arab traders to India, a Bay of Bengal sector linking the Indian ports with the Straits of Malacca and its associated ports including Singapura and the South China Sea sector linking Southeast Asia with Southern China.
Singapura achieved its significance due to its role as a port. It seems to fit as least in part the definition of a port of trade in which trade is less a function of the economy and more a function of government policy; thus trading would have been highly structured and institutionalized, with government agents playing key roles in port activities. Portuguese traders' account in particular, suggest that Singapura operated in such a manner. Reports from merchants of different countries also indicate that Singapura was a point of exchange, rather than a source for goods. Local products were limited in type and mainly consisted of lakawood, tin, hornbill casques (an ivory-like part of the hornbill bird, which was valued for carved ornaments), some wooden items and cotton. Other commonly traded products included a variety of fabrics (cotton and satins), iron rods, iron pots, and porcelains. Chinese traders also reported that there were agricultural products but very few due to poor soil. Although these goods were also available from other Southeast Asian ports, those from Singapura were unique in terms of their quality. Singapura also acted as a gateway into the regional and international economic system for its immediate region. South Johor and the Riau Archipelago supplied products to Singapore for export elsewhere, while Singapura was the main source of foreign products to the region. Archaeological artefacts such as ceramics and glassware found in the Riau Archipelago evidence this. In addition, cotton was transshipped from Java or India through Singapura.
The increase in activities by Chinese traders seems especially significant for Singapura and its trade. Report by Wang Dayuan indicates that, by this time, there was a Chinese settlement in Singapore living peaceably with the indigenous population.
Kingdom of Singapura