In its latest report, the US based research institute, Business Environment Risk Intelligence (BERI) ranked Singapore first out of 50 major investment destinations globally. The ranking was based on operations, government policies and foreign exchange. Singapore’s stability politically and its strong economic climate creates a great environment to invest in; personal and corporate tax rates are also attractive. The personal rate maxes out at 20% above $320,000 and there is no capital gains tax. New companies are tax exempt for the first three years and the first $100,000 is taxed at 0%. Singapore also has 75 double tax avoidance (DTA) treaties and 21 free trade agreements (FTAs) in place with other countries.

There are no restrictions on foreign ownership of business and the repatriation of profits, and the import of capital is freely allowed.

The World Bank has consistently named Singapore as one of the best countries to do business in. Its free market economy is corruption free and has a per capita GDP higher than most other developed countries alongside low unemployment. The economy depends heavily on exports, particularly electronic and tech based products. Its port is one of the busiest container and transshipment ports in the world and is classified as a premier International Maritime Centre (IMC). Home to over 130 of the world’s top shipping groups, it has become a hub for maritime law, arbitration and engineering.

The economy contracted 0.6% in 2009 due to the global financial crisis but bounced back the next and following years with consistently good economic growth year on year.

Mr Harvey Koenig, head of ASEAN Incentives Advisory at KPMG says that “Sectors such as aerospace, biomedical science and financial services have continued to come and invest in Singapore by virtue of things like political stability, being able to find the right kind of talent, and supporting infrastructure like banking facilities to support high value-added activities. Singapore continues to provide support for research and development, and grants to spur activities such as this.”

Singapore has streamlined its litigation system by making it electronic. Property transfers can also happen online and setting up a company has been made simpler by combining tax and business registration in a single online form.

Ethnically 74% of the population is Chinese, 13% Malay and 9% Indian. The total population is 5.4 million of which 3.3 million are citizens and the rest are foreign workers and permanent residents. The multiracial workforce make it easier for businesses to expand in the region because the professionals and executives are conversant in more than one language, can leverage the natural connectivity to surrounding markets and navigate the cultural nuances of neighbouring countries.

Cornfield & Partners can help you to find new business opportunities and open up new sales channels in Singapore and throughout the world, contact us info@cornfieldpartners.com or
call us on +44 (0) 20 7692 0873.

Share