Top 10 Reasons to Do Business in Singapore
April 1, 2022
Investing in Southeast Asia is complex, but Singapore offers solutions for foreign investors and businesses seeking a low-risk, high-return opportunity.
Singapore is Southeast Asia’s leading international, financial, and economic hub. Its strategic location, highly educated population, strong rule of law, and technological advancements have contributed to rapid economic growth and market expansion over the last decade or so.
Many of our clients have found great business success in Singapore. Are you ready to be the next?
Here are the Top 10 Reasons to Do Business in Singapore:
1. Singapore offers a business-friendly environment, ranking in the 94th percentile on the World Bank’s ease of doing the business assessment. It only takes about a day and a half to start a business, compared to upwards of 25 days in other parts of East Asia and the Pacific.
3. Low tariffs and high trading capabilities are attractive to new market entrants. Singapore offers one of the lowest tariff regimes in the world and is able to manage a high trade volume. It also is engaged in 23 free trade agreement networks.
High levels of political and economic stability are also key factors in Singapore
4. Political and economic stability is among the highest in the world. Singapore ranked 1st on the Heritage Foundation’s 2022 Index of Economic Freedom. Its rule of law, regulatory efficiency, government size, and open markets, allowed Singapore to surpass all regional and world averages.
5. Rule of law and government effectiveness offer greater confidence and ease in doing business. Singapore has developed an open and corruption-free business environment, prudent monetary and fiscal policies, and a transparent legal framework, making it one of the safest, most efficient and transparent markets to do business. This high degree of transparency and government accountability protects and enforces property rights, providing ease to business leaders expanding beyond their home market. (Global businesses, from Google and Disney, to Novartis and Chevron, set up their regional headquarters in Singapore given the strong legal system.)
Several key industries make Singapore the place to be!
6. The Financial Services sector accounts for more than 10% of Singapore’s GDP. Singapore is a leading financial hub and the country’s political and economic stability during the pandemic allowed the sector to experience growth. The ease of doing business and tax incentives have led to increases in FDI.
7. The Software, IT, and Artificial Intelligence Industries have greatly contributed to driving the demand for labor. The increase in investments into the industry has prompted innovation and a greater need for software developers and cybersecurity experts.
8. The Manufacturing industry, Singapore’s largest, has expanded because of IT and AI advances. The knowledge-driven industry produces chemicals, logistics, electronics, biomedical sciences, and transport engineering. This sector stimulates growth in both home and foreign markets.
Singapore simplifies foreign trading.
9. Singapore is a trade-oriented country and an advocate of foreign trade. Singapore earns most of its revenue from foreign trade, the most abundant export product is machinery and equipment, comprising 43% of all exports. The most abundant import is electronic machinery and equipment followed by crude oil. Its main trade partners are China, Hong Kong, Malaysia, Indonesia, the United States, and Japan.
10. Singapore is the happiest country in Southeast Asia, has the highest standard of living in Asia, and is home to the second safest city in the world. The country’s political and economic stability contributes to the high standard of satisfaction. Although densely populated, Singapore is almost 50% covered in greenery and every household is a 10-minute walk or less to a park.
Ready to learn more about expanding into Singapore or beyond your home market? Take this 4-minute Global Readiness Self-Assessment to see if you are ready.
Then contact us so we can discuss how to help you take advantage of all that Singapore has to offer.