Singapore has been a centre of trade and business in Asia due to its strategic location in the straits of Malacca. The Republic of Singapore was formed when it got its independence from Great Britain in 1965 as it was acting as a British Overseas trading outpost in South East Asia, since then the people of Singapore have worked together with resilience to make trade and commerce flourish in the region and meticulously developed the infrastructure of the city-state for becoming one of the best economies in South East Asia. The city-state is well-renowned for its open economy, free trade laws, and multicultural atmosphere with stable governance, security, and world-class facilities.
The city-state has punched above its weight in various sectors by pioneering in trade, finance and global shipping by implementing liberal business policies and regulations. Similarly, the people of Singapore with their strong spirit to improve the economy of the tiny-state that has virtually no natural resources, the nation has focused on creating a secure place for trading with liberal business-friendly laws and attracted entrepreneurs to start their operations in Singapore.The government of Singapore has been very clear that the state remains as an open economy in terms of trade flow, capital flow and investment flow while the policies implemented by Singapore for allowing highly-skilled immigrants into the State for better contribution in various sectors of business has brought rapid development of industries and overall economic growth to the nation.
Singapore’s Economic Growth
Singapore is a trade-driven economy offering a competitive advantage for businesses; the state is the strategic centre for sea trade as it is located in the edge of the Straits of Malacca which is one of the world’s busiest trade routes since ancient times. After independence the country was called Singapura in Malay, the economy was agrarian development was fragile as the small country could not join with the neighbouring country of Malaysia due to differences in governance, economy and political policies of the two nations.
The State of Singapore depended on rural agriculture and fishing as a major source of income with as the nation had nearly no natural resources for its own. The seaport which was built by the British during its occupation stood as a small port focused on giving berthing facilities to small-medium ships with little background infrastructure.The country’s economy was enhanced with a strong focus on developing the human capital to strengthen the economy this created opportunities for entrepreneurs, business people and companies who were keen on starting their operations aligned with the goals of the government.
Gradually, Singapore becomes the hub of trade, commerce and finance due to the secure environment, efficient infrastructure, transparent governance, low corruption and availability of semi-skilled labour force made international companies move their operations to the country.
Notably, the Government of Singapore took tremendous efforts in developing the infrastructure of the nation by building industrial areas, electrifying urban centres and made business trips to various countries of the world to attract businesses and investors to come to Singapore and start their business. The business environment in Singapore was strongly-backed by effective government policies and tight regulations that allowed companies to thrive and grow at an impressive rate.
Another critical factor in the growth of Singapore isthe formation of potent governmental organisations with effective structuring, transparency and accountability. Singapore's newly found government agencies after independence regulated all the major aspects of the country that directly and indirectly reflected on the economic growth, stability, safety and goals of the Nation. These organisations played a significant role in
- Meticulously organising the governmental activities
- Managing the institutional power and aligning them to national goals
- Actively regulating the Nation’smonetary assets
- Taking responsibility for developing highly skilled human capital
- Creating a framework and policies that accelerate growth
- Supervision and administration of the government sector
The tremendous growth of Singapore has been credited to these organisations, they handle the critical agencies that aligns and works towards the goals of the government while making the country progress in a prosperous way maintaining the open, vibrant, and diverse business ecosystem. The organisations are
- Singapore Economic Development Board(EBD)
- Monetary Authority of Singapore
- Singapore Airlines
- Singapore Housing and Development Board (HBD)
- Singapore Ports Authority
- International Enterprise Singapore (IE)
- Public Utilities Board
- National Environmental Agency
- Accounting and Corporate Regulatory Authority
- Intellectual Property Office of Singapore
- Singapore Workforce Development Agency
- Singapore Tourism Board
These organisations along with some other agencies played a significant role in shaping the economy, lifestyle and development in the State of Singapore since its independence by actively managing the resources, taking progressive steps and implementing effective policies for the betterment of the people and the nation. These organisations combined with other governmental ministries always strive and work towards making Singapore competitive in terms of quality of life, human development, ease of businessin a safe, secure, highly developed, corruption free environment.
Singapore Business Environment
The businesses in Singapore were supported, encouraged and nurtured by the government and people of Singapore as they realised that companies that operate in the country play a pivotal role in developing the nation economically, socially while making Singapore stand out in the international market.
Singapore always stands as one of the best places to do business and ranked 2nd in the Ease of doing business rankings 2018. The regulations, policies and ease of bringing capital into the country making it easier for the firms to start its operations, hire highly-skilled workers and have a competitive advantage over the business in other countries. The State attracts by state-of-the-art infrastructure, highly-skilled workforce, an international ecosystem with a multi-cultural environment, secure economy which is brilliantly managed by specialists, economists and dedicated team of ministers. The companies that start up the business in Singapore is shielded from tax through holidays, international dual-tax agreements and backed by liberal business-friendly laws which eases the processes and systems that are related to the governmental services.
In terms of growth and development, Singapore has a successful free-market where international trade & commerce prospers. The state has political and economic stability which contributes to the world-class infrastructure, highly developed economy and superior GDP. Additionally, the country enjoys a highly skilled human capital and secure ecosystem where businesses are attracted, nurtured and continue to grow. In 2019, Singapore has made every effort to makethe state a remarkable place for entrepreneurs, business people and companies to start their business with a competitive edge. Contact us for knowing more about starting your business in Singapore. Our expert team shall provide you with all the information you need to know before starting your venture in the Republic of Singapore.