Investing or set up a branch in Singapore offers a range of economic advantages that make it one of the most attractive destinations for global investors. Here’s a breakdown of the key reasons:
1. Strategic Location 🇸🇬
- Located at the crossroads of major trade and shipping routes in Asia.
- Acts as a gateway to ASEAN markets (over 660 million people).
- Close proximity to economic giants like China and India.
2. Business-Friendly Environment 💼
- Ranked consistently high in ease of doing business by the World Bank (previously ranked #2 globally).
- Transparent regulatory framework.
- Low levels of corruption (ranked among the least corrupt countries by Transparency International).
3. Competitive Tax Regime 💰
- Corporate tax capped at 17%, with effective rates often lower due to exemptions and incentives.
- Additional tax discounts for the first 3 years
- No capital gains tax.
- Attractive tax treaties with almost all countries.
4. Strong Financial & Banking System 🏦
- Major global banks and financial institutions operate regional headquarters in Singapore.
- Robust fintech and digital banking environment.
- Access to a deep capital market and a highly liquid stock exchange (SGX).
5. Skilled and Multilingual Workforce 👩🎓
- Highly educated, skilled, and bilingual workforce.
- Strong emphasis on STEM and digital capabilities.
- Open to global talent with straightforward work visa programs.
6. Political Stability and Rule of Law 🔒
- Stable government with long-term pro-business policies.
- Efficient legal system that protects investor rights and IP.
7. World-Class Infrastructure 🏗️
- One of the world’s top airports (Changi Airport).
- Excellent seaport facilities – one of the busiest in the world.
- Reliable power, internet, and logistics infrastructure.
8. Innovation and R&D Hub 🌱
- Government incentives for R&D, innovation, and tech startups.
- Major global companies run research centers here (e.g., Google, Dyson, Pfizer).
- Strong push for green tech, biotech, and AI.
9. Free Trade Agreements (FTAs) 🤝
- Over 25 FTAs with countries and regional blocs.
- Member of CPTPP, RCEP, and other trade networks.
- Facilitates tariff-free or low-tariff trade and investment.
10. Government Incentives for Investors 🧲
- Economic Development Board (EDB) offers incentives, tax breaks, grants.
- Sector-specific support (biotech, finance, logistics, etc.).
- Special zones like “Jurong Innovation District” and “One-North” for targeted industries.