WHY CHOOSE SINGAPORE FOR YOUR BUSINESS
Singapore has established itself as one of the leading business centres in Asia and is fast becoming the natural choice for businesses looking to expand in the region. With a wealth of talent, first-class infrastructure, safety and stability, and no direct Capital Gains taxes, Singapore has all the ingredients to ensure your business success. Here we take a look at why many businesses, including those from the UK, are choosing Singapore for their business and investments.
1. Access To Talent
The Singapore government has long recognised the importance of its human capital and made it a priority to develop the capabilities of its people through training and development. This has led to the formation of a large pool of well-trained locals who can speak English and have experience in international business. English is also widely spoken and fluently heard throughout the business community, ensuring locals will be easily assimilated into your team.
One of the critical advantages of Singapore is that it is widely recognised as one of the most competitive locations in Asia without sacrificing quality. According to the Financial Times, it has been number one in several industry rankings, such as Asia’s most business-friendly city in 2015.
One of the reasons for its continual success is the government’s efforts to keep costs down. According to the annual World Competitivity Rankings index, Singapore had the highest GDP per capita, making it the most productive economy in the world.
The Singapore government has taken steps to ensure that companies are not subjected to high taxes. The corporate tax rate is just 17 per cent, with royalty taxes equally low at five per cent.
Also, the cost of premises in Singapore is highly competitive. Grade A office space can be leased for as little as $22 per square foot per month, making it one of the most affordable cities to run your business.
Cost-effectiveness is equally evident when conducting personnel recruitment. According to the World Bank, the cost of living in Singapore is 32 per cent higher than in other Asian countries and 51 per cent higher than in other non-OECD countries. However, the median monthly income is around $3,538, much higher than the abovementioned cost of living estimate, meaning that residents and foreign workers are earning in proportion to what they are spending.
3. Impressive Pool Of Talent In Singapore
The government has invested substantial educational resources, resulting in top-ranked universities like the National University of Singapore (NUS) and the Nanyang Technological University (NTU). Moreover, more than 18 international schools have opened in Singapore in the past 10 years, further contributing to the education landscape.
The talent pool in Singapore is equally impressive. According to one survey, more than half of UK businesses in Singapore detected staff recruitment difficulties last year — proof that the city has a capable workforce.
With a workforce like this, it’s not surprising that over 200 companies have their regional headquarters or/and offices in Singapore. Some of the world’s most renowned brands have also chosen Singapore for their learning institutes and training centres — it is home to more than 200 corporate training providers and over 50 schools and academies. These businesses and training providers complement each other, creating a win-win situation for the companies and employees.
4. Singapore Is A Test-and-Tune Hotspot
The startup scene in Singapore is highly active — according to IVC Research, the city received about $2.4 billion in total venture capital investment between 2013 and 2018. In the first quarter of 2019 alone, more than $393 million in VC was raised.
Successes like these show Singapore’s potential as a test-and-tune startup hub for Asia. The government launched the Fintech Accelerator Programme in 2018, for example — it’s a nine-month programme that aims to strengthen the fintech industry in Singapore and promote the city as a leading fintech hub in Asia.
If you are looking to build and grow a company, but want a less risky environment, Singapore is a perfect choice—it’s a safe place to experiment with your business ideas without compromising on culture or location, and it’s an easy place to scale your business once you’ve proved that your ideas work.
The combination of a competitive tax structure and excellent workforce quality means that businesses can save money and time — and the added bonus of building on networks and connections when working in Singapore.
We have helped many entrepreneurs and international business make the right choices when setting up in Singapore. Contact us via Lawyer Anywhere for advice on moving or setting up your business in Singapore.