In 2016, Singapore was ranked as the best country for doing business in a survey by the World Bank for 10 consecutive years. According to the 2019 Economic Freedom Index, Singapore has the second most free economy in the world with an economic freedom score of 89.4. These accolades have been the result of a combination of economic principles that make Singapore one of the most attractive places to incorporate a business in the world.
Here are four reasons why business leaders should consider expanding operations into Singapore:
Singapore is one of the easiest and most efficient places to incorporate
Singapore has straightforward and simple requirements for incorporating a business. In many cases, a business can incorporate in Singapore in just one day. Additionally, the Singapore government encourages both local and foreign-owned business growth by offering grants and other incentives. Singapore has many investment and venture capital firms that seek to help fund startups. In addition to these grants and incentives, the government also has an attractive tax framework. If a company has a profit of S$300,000 or less they essentially have a tax rate of 8.5%. Profit above S$300,000 have a tax rate of only 17%.
Singapore presents one of the most competent workforces
According to The Economist, Singapore’s education system is “considered the best in the world.” Inevitably, the academic rigor and success of the Singapore school systems has created a very skilled and proficient workforce within the economy. In 2015, Singapore was ranked number one in the Organization for Economic Co-Operation and Development’s global education report. Additionally, the Singapore government, currently led by Lee Hsien Loong, has operated under strict moral values since its founding in 1965. This moral code and example-led philosophy make corruption very limited.
Singapore’s diversity encourages economic growth
With a population of nearly 5.7 million people, Singapore presents itself as one of the most innovative countries in the world. The city-state demonstrates ethnic diversity and roughly 39 percent of the population is foreigners. Additionally, the country is one of the most religiously diverse places in the world. The vast diversity in Singapore urges the economy to reach new heights in innovation and cooperation. The wide variety of ideas and influences continues to make Singapore’s business sector highly competitive and continuously growing. This growth can be measured by Singapore’s 3.6 percent annual growth rate.
Strategic geographic location
Singapore is located in the heart of Southeast Asia, [DM9] making it one of the most convenient places to do business. Changi Airport is one of the world’s best airports. According to the airport’s website, “Changi Airport serves more than 100 airlines flying to some 400 cities in about 100 countries and territories worldwide. Each week, about 7,400 flights land or depart from Changi, with more than 65.6 million passengers passing through the airport a year.” Although Singapore is a small country at just over 278 square miles, the efficiency of the Changi Airport makes travel and business easily accessible and convenient, especially throughout all of Southeast Asia.
As one of the world’s richest countries, Singapore has many opportunities for entrepreneurs who aspire to take their business to the next level. The growing globalization of Singapore’s economy, coupled with its competitive trade industry, create a utopia for entrepreneurs who are eager to incorporate. Singapore provides a gateway to international business with simple steps to incorporation. The competitive workforce, diversity and location of Singapore are unmatched, making this maritime city-state one of the most culminating places to incorporate.