"I'll need
both the domain name as well as web hosting services"
Yes.
"If I signed
up for a (Domain Name & Web Hosting) package, say 1 year, does
that mean my Domain Name & Web Hosting services will be
terminated after 1 year should I decline to extend the
services?" Yes. Do note that you're free to transfer to
other web hosts and domain name registrars at any time should you
be unsatisfied by your current service providers.
"I wish to
first build a simple, cost effective and presentable business
website (<10-12 pages) on my own and the ability to update my
website as and when I desire." Consider using either a blog
or a Content Management System (Wordpress, Joomla, e107 etc). On
most web hosts, which are running cPanel, there's a click-install
feature called "Fantastico" for quick-and-easy installation of
common web applications. http://en.wikipedia.org/wiki/Fantastico_(web_hosting)
The only differences between free and paid web hosting services
are the quality of the services and the availability of support. If
you're on a free web hosting service and your website goes down one
day, don't expect to receive any form of immediate support from
your web host.
Ultimately, the decision to choose between either is this: Would
the additional downtime of your website and lack of support cost
you more than a paid web hosting service in terms of lost sales?
For a small online business with a daily revenue of $1,000, even a
downtime of 6 hours would result in a loss of $250 in revenue. It
might not be a smart idea to go with the free option when a paid
service typically cost under $20 a month. On the other hand, if
you're just exploring and experimenting with the web, feel free to
start out with a free web hosting service.
Another thing to note is the location of the servers. If your
website is targeting visitors from a particular geographical area,
it would be best to employ a hosting service of which servers are
in the same area, if your budget permits, to reduce loading times
for the visitors you're targeting.
As for domain names, .com's typically cost $15 to $25 a year
depending on the domain name registrar you register with. As for
.sg's and .com.sg's, it's typically available at $50 per year, and
the latter would require proof of business registration. You may
want to read more about it here: http://vooju.com/faq_domain.html