By Judith Siegmund – Mananger of Business Advisory | Share this post
Singapore has been ranked as the world’s most economically competitive country by the World Economic Forum 1. The report measures diverse attributes, such as:
- Enabling the environment, which includes institutions and infrastructure
- Markets, including the financial system and labor market
- Human capital, including health and skills
- Innovation, which includes business dynamism and innovation capital
For everyone doing business in Singapore, it is clear that the small island state south of Malaysia is excelling in each category.
1 2019 Global Competitiveness Report
Education
The education system in Singapore is consistently ranked as one of the highest in the world, meaning educated employees are available. Bilingualism is a cornerstone of the Singaporean education system, with English as the first language and Standard Mandarin, Malay, or Tamil as the “Mother Tongue” language. This helps to remove the language barriers, simplifying how doing business across Asia and around the world.
Infrastructure
For infrastructure, Singapore consistently ranks at the top with easy-access-to transportation, reliable electricity, and high health standards. Singapore has also been ranked No. 1 in “The Asian Digital Transformation Index 2018,” developed by The Economist Intelligence Unit. The results include fast connectivity for businesses and individuals, digital expertise in the workforce, and a business appetite to implement new technologies to increase productivity and security.
Taxes
Since 2010 the corporate income tax rate has remained at 17%. Additionally, there are tax reliefs each year that further improve the business environment. If you compare this tax rate to other Asian countries, only Hong Kong is lower at 16.5%.
Political Stability
Political stability, a stable legal system, transparency, and a well-established financial system are further incentives for foreign investors to increasingly explore Singapore. A green and safe city with a low crime rate and excellent education makes Singapore popular with expat workers.
Friendly Business Climate
The European Union-Singapore Free Trade Agreement (EUSFTA) is the first FTA concluded between the EU and an ASEAN country. Singapore and the 28 EU countries are important trading and investment partners. In 2014, the bilateral trade in goods between the EU and Singapore stood at close to $96B, with the EU being Singapore’s third largest global trading partner. Singapore is also the EU’s 15th largest global trading partner and their largest trading partner in ASEAN.
The Monetary Authority of Singapore (MAS) is Singapore’s central bank and financial regulatory authority. It administers everything to do with the financial sector as well as currency issuance. The MAS has introduced an excellent framework on asset and wealth management in Singapore, making Singapore an ideal place for establishing a fund.
We can help.
CSC maintains an office in Singapore where our team of experts can help you set up a company, prepare payroll, apply for visas and provide registered office, and offer company secretarial work, accounting, and tax filing and fund administration services. If you are ready to enter one of the most competitive countries in the world, please contact us at APACBusinessAdvisory@cscgfm.com to talk to our team about your options.