By this decade, it is beyond doubt that Singapore is the most secure, calm, and contemporary business destination with a vivid and multilingual culture to support its ecosystem. The country is considered as an official financial capital of the world. Not surprisingly, it is the 3rd richest country in the world.
So, there’s a common question with all the investors regarding the economic condition for proper sustenance of a business. In that sense, Singapore’s economic growth is much stronger – 15%, compared to China’s 10%.
Besides that, here are 10 top reasons why investors should consider Singapore to be their main investment destination.
1. Free Trade Agreement
A free trade agreement (FTA) is an agreement between 2 or more countries to completely remove the trade barrier, and ease cross-border movement of the goods and materials between both the traders. Singapore signed up for ASEAN free trade agreement in 1993. The country was ranked 2nd in terms of freedom to conduct business and investment, after Hong Kong. Overall,it has made a sizeable network of 22 agreements.
2. Diversified Economy
Investment-heavy industries like pharmaceuticals, BFSI and shipping are strong enough to wipe off any potential threats that can ruin their economic structure in the future. Singapore’s innovation-oriented multinational companies are the most sought-after thing in Singapore. Singapore’s policymakers have taken a substantial approach in their planning process in terms of macro-risk management, aimed at enhancing the competence in sectors like Finance, Medicine, and Innovative Engineering.
3. Low Property Tax Rates
Singapore provides its property at a flat rate of 10%, considerably cheaper than that in most other developed countries. If you’re planning to invest in the commercial property in Singapore, you will inculcate higher returns on your investment. If you own a residential property in Singapore, you will be more eligible to enjoy lower property tax rates in Singapore. In 2019, as per the Inland Revenue Authority in Singapore, the housing board flat owners have to pay a lower property tax. For example, 3-room flat owners now have to pay up only $18.40, which was previously $37.60; 4-room flat holders now pay $52, compared to $119.20 previously.
4. Zero Corruption
Singapore is known for its incorruptible system. Singapore has been ranked 3rd in the annual ranking of least corrupted countries in the world. Mr. Denis Tang from the Corrupt Practice Investigation Bureau (CPIB) said in one of his statement that “Working hand in hand with all the community and stakeholders the CPIB remains committed and resolute in the fight against corruption”.
5. ASecure Place to Live
I once heard one of my friends in Singapore saying,“In Singapore, if police commit a crime, then they would get the same sentence any other person in Singapore would”. Singapore is very safe to live in as a country. It has CCTV surveillance all over the place, and these are monitored 24/7. Compared to other countries, Singapore’s scam risk, transportation cab risk, terrorism, and women travellers’ risk are a lot less.
6. Multilingual Culture
The languages spoken in Singapore are Singlish (an English based creole language), Chinese, Malay, Tamil, Eurasian and Malayo-Polynesian. And it so happens that all the Singaporeans are bilinguals because of their government policy which promotes a dual-language learning system. English is their household language. And this practice has continued in their system since 1980. Their Singlish is a mixture of Chinese dialects and English language. People in Singapore also have a good understanding of German, Spanish, and Korean languages. The concept of multilingualism runs in their blood as they do not hesitate to learn a new language.
7. Economic Climate
You can expect a fall in prices even during a recession in Singapore. Manufacturing industry contributes about 5% of the country’s overall GDP,electronics about 29.2%,transportation 15.6%, pharmaceuticals 9%, medical technologies 3.2%, and precision engineering 12.6%. For many years, Singapore has been ranked among the top global competitive business locations in the world.
8. Progressive Government Policies
Singapore’s economic development strategy is controlled by the Minister of Trade and Industry (MTI). Singapore MTI can get involved in property prices anytime to influence property prices in Singapore. They have been using a kind of step whenever there is a hike in property prices in Singapore.
9. Controlled Real Estate Capital Security
The Singaporean government does not offer land on complete ownership. They give land in terms of freehold or leasehold estates.
Here, a person can have the land until one’s complete lifetime.
Here, a person can hold the land for 10 or 100 years, depending on the tenure provided by the government.
10. Social Security
For business people or self-employed ones, if they earn between 6000 SGD to 60000 SGD, they have to deposit into their Medisave account. Temporary Singapore visa residents, people with Singapore work permit or with a Singapore business visa can also plan their retirement funds independently.
Now that you have understood the different business and investment opportunities Singapore offers to the people around the world, you too can start thinking about establishing a business here. We at Business Setup Worldwide provide you with the details of all business setup related queries in Singapore. If you have some additional questions, feel free to contact us – we’d be glad to help.