Overview of the 15 Benefits of Expanding into Singapore

Overcoming global business environment changes like the pandemic, Singapore has established itself as a stronghold of international business and continues to thrive. Today, it stands out as a renowned global business hub in Asia, alongside Hong Kong, characterized by a diverse economy woven with new trends and abundant opportunities. Ranked 4th as a destination for Japanese companies, Singapore has seen a rapid increase in Japanese corporate entries over the past two years (*). In this blog article, we are going to summarize the 15 benefits of expanding into Singapore, which we hope will assist companies considering such a move.
*Source: Resorz Co., Ltd. “Overseas Expansion White Paper 2022–2023 Edition.”

A Business-Friendly Environment

1.　Strategic Location:
Singapore’s geographical location is a significant advantage for businesses. With a population of over 600 million and a growing middle class, Singapore serves as a gateway to the rapidly expanding ASEAN region. By establishing a base in Singapore, companies can easily access these prosperous markets, making it an ideal choice for regional expansion.

2.　Excellent Infrastructure:
Singapore boasts world-class infrastructure, including a modern airport, efficient ports, and an extensive road network that ensures the smooth movement of goods and services. Additionally, Singapore’s stable communications network offers high-speed internet and mobile connectivity, while a reliable power grid supports businesses that require consistent power supply.

3.　Stable Political Climate:
Singapore’s political stability creates a safe environment for businesses. A low crime rate, a strong legal system that protects business interests, and a transparent government provide trust and certainty to both investors and businesses. This political stability is crucial for seamless business operations.

4.　Favorable Tax Regime:
Singapore boasts a business-friendly tax regime, with a corporate tax rate of 17%, which is considered low globally. Moreover, Singapore offers various tax incentives and exemptions to encourage corporate investment. These incentives, targeting areas such as R&D, capital expenditure, and internationalization, help reduce the overall tax burden on companies.

5.　Skilled Workforce:
Singapore takes pride in its highly skilled and educated workforce. A solid education system with a focus on Science, Technology, Engineering, and Mathematics (STEM) ensures a steady supply of talented professionals. Furthermore, Singapore’s multicultural workforce generally speaks English, making communication and business operations straightforward.

6.　Ease of Doing Business:
Singapore consistently ranks among the top countries globally for ease of doing business. With a simple and efficient regulatory environment, starting and operating a business is straightforward. Additionally, Singapore provides a comprehensive ecosystem of support services catering to various business needs, including legal, accounting, and consulting services.

7.　High Quality of Life:
Singapore offers a high quality of life, making it an attractive country for companies and their employees. With world-class healthcare, an excellent education system, a clean and safe environment, and a vibrant cultural scene, Singapore provides an enriched living environment, ideal for companies looking to attract and retain top talent.

Technological Advantages and Financial Resources

8.　World-Class Technology:
Singapore is at the forefront of technological innovation, with a thriving high-tech industry and an ecosystem that fosters innovation and entrepreneurship. As such, Singapore is an ideal location for companies needing access to cutting-edge technology. Additionally, it is home to world-class universities and research institutions conducting advanced research and maintaining high-level R&D infrastructure.

9.　Access to Capital:
Singapore’s well-developed financial sector provides businesses with access to capital through various funding sources, including venture capital, private equity, and angel investors. Singapore’s robust banking system, comprising numerous international banks offering a wide range of financial products and services, supports companies’ financial needs.

10.　Strong Intellectual Property Protection:
Singapore boasts a strong intellectual property protection framework, with a robust legal system that safeguards intellectual property rights such as trademarks, patents, and copyrights. The legal system provides means for quick and efficient dispute resolution, ensuring the protection and security of companies’ intellectual assets.

Government Support and Economic Diversity

11.　Government Support Policies:
The Singapore government actively supports businesses through various policies, including grants, subsidies, and tax incentives. These measures are particularly designed to encourage companies to invest in research and development, internationalization, and innovation.

12.　Diverse Economy:
Singapore maintains a diverse and resilient economy, reducing dependence on specific industries or sectors. Traditional industries like manufacturing, services, and finance are well-established, and the rapidly growing technology sector further strengthens the economy, serving as a key driver of growth.

13.　Openness to Foreign Investment:
Singapore is an open economy welcoming foreign investment, with policies and initiatives aimed at attracting foreign companies. Furthermore, Singapore maintains an extensive network of trade agreements, allowing companies access to broad global markets.

14.　Excellent Education System:
Singapore’s excellent education system produces highly skilled graduates. The country emphasizes Science, Technology, Engineering, and Mathematics (STEM) education, essential for companies needing a workforce with advanced skills and expertise. Additionally, Singapore offers vocational and technical education programs, enabling companies to secure a workforce equipped with practical skills and experience.

15.　Strong Entrepreneurial Ecosystem:
Singapore fosters a robust entrepreneurial ecosystem that encourages innovation and entrepreneurship. With abundant facilities such as incubators, accelerators, and co-working spaces, Singapore supports the growth of startups. Its vibrant startup scene consists of many successful startups that have emerged as global leaders across various industries.

Summary

Singapore offers numerous advantages for companies seeking to expand or grow their businesses. With its strategic location, world-class infrastructure, political stability, favorable tax regime, and a highly educated workforce, Singapore provides an ideal destination for companies aiming for prosperity and success. Combined with the government’s commitment to supporting business growth and innovation, Singapore is a top choice for expansion.