Why Business Investment In Singapore Is Booming

Singapore sits at the heart of Southeast Asia close to the emerging markets of India and China. Its Changi International Airport serves more than 80 international airlines with connections to over 330 cities worldwide.  Its seaport infrastructure has been ranked the best in Asia for the last 20 years, and the container ports in Singapore are the busiest in the world. It deals with some 200 shipping lines from 600 ports in 123 different countries.

Its communication and Internet connection reach 99% of the population, as well as over 100 other countries.

Its transport and communications systems are the envy of many other countries and are something that all businesses in Singapore benefit from.

Encouraging New Startups

As well as making things easy for existing businesses, the government in Singapore actively encourages new startups. Just one of its initiatives is called Startup SG, and in various forms, this will assist people with stage funding for tech ideas, catalyze equity investment for startups, enhance capabilities of accelerators, guide entrepreneurs on how to attract and retain global talent as part of their workforce and connect startups to much-needed financing options.

Singapore constantly tops the World Bank’s Ease of Doing Business report because of its hassle-free startup processes. The Economic Intelligent Unit, Country Forecasts Report in 2014 ranked Singapore as the most attractive investment location globally, and the Global Innovation Index 2015 ranked it as the best performing Asian country in terms of innovation performance.

With the government being so active in this area, there is a much larger percentage of startups that are successful than in many other parts of the world. That’s another point in its favor.

Attractive Tax Frameworks and Extensive Trade Agreements

Singapore has one of the most attractive corporate tax structures in the world, with the highest rate being just 17%. Its marginal rate is third lowest globally, but with various schemes, it drops even more. It should be no surprise therefore that the abundance of luxurious high-rise office buildings house more than 128 commercial banks, 31 merchant banks, and 604 capital market services. It is also the center for wealth management and investments in Asia and has the world’s third-largest Forex trading center, Singapore Exchange. This is enough to bring in new investment, but the fantastic executive condo resale rate makes it an even better deal. That is why so many property investors look to Singapore.

Not only that, but the government has signed more than 21 free trade agreements and 76 comprehensive avoidance of double taxation agreements.  The agreements let businesses trade across borders with minimal tax barriers to the flow of trade.

There is no capital gains tax, no dividends tax and lower withholding taxes, which makes Singapore an ideal place to incorporate a company. It also creates the perfect opportunity for property investments as there will be no worries over capital gains tax if one is sold. Most people tend to keep hold of their property investments though, because as the number of businesses heading for Singapore is continuing to grow, so does the demand for property to rent.

To encourage multinationals companies to have their headquarters in Singapore, the Economic Development Board offers regional and international incentives.

However, the tax advantages are not just for companies. The private individual will pay taxes ranging from zero to 22%, but there are frameworks for residents to claim other reliefs that reduce this even more.

Personal Safety With A Strong Legal System

Singapore is the most politically stable country in Southeast Asia, and business owners and employees feel safe and secure. It is also the least corrupt country in Asia according to the IMD World Competitiveness Report of 2015, where transparency is highly valued. The same report said that Singapore is a country with a sound political infrastructure and policy-making procedures. This leads to it being the best country in Asia for a stable business environment, which is all helping to keep the economy booming.

It has a world-class education system, quality health care and a rich variety of dining and entertainments. As in many Southeast Asia countries, you have the choice of street food or fine dining, all of which is made from fresh produce and is delicious. Of course, if you really want food such as burger and chips you will find that as well, but this will seems dull and tasteless compared to the local foods.

In the event of any cross-border disputes, businesses can rely on Singapore’s reputation as a world-class arbitrator.

Highly Skilled Local Talent Pool

As well as all the reasons for Singapore’s booming economy and business environment, it ranks as one of the highest places in the world for workers productivity and attitude. The workforce is highly motivated because of the good working conditions and attractive living conditions.

The excellent education system has produced a skilled pool of labor, with on-going training and attractive immigration policies. This is said to be enhanced by the great relationships employees and employers share, which leads to a greater level of productivity.

Singapore Is Unique

Singapore is unique in the pivotal role it plays as the business center of Asia and in the global economy. In addition to investments in Singapore being a sound prospect, the quality of life and the leisure scene, the sporting arena is also thriving. The warm weather all year round makes outdoor sports very popular, with a wide variety of green spaces for them to be played in.

If you are considering properties investments or starting a new business, Singapore is one of the best places in the world to do these things. It has the infrastructure, the sound political base and is safe and secure for anyone wanting to get away from the hassles of some of the large cities in the rest of world.

The low corporation tax rates, the high productivity, rules of law, integrity, reliability, quality of life, the pool of skilled labor and the enforcement of intellectual property rights are just some of the reasons why business investment in Singapore is booming. Add to that the friendliness and helpfulness of the people you would be working with and socializing with, and it makes you wonder why you would want to be anywhere else.