Singapore has long been recognized as a premier destination for international business expansion. Its unique combination of strategic location, robust regulatory environment, and strong support for enterprise has attracted businesses from around the world. As Asia’s gateway to global markets, Singapore offers unparalleled advantages for companies looking to grow internationally.
1. Strategic Location, Trade Agreements and Free Trade Zones
Singapore’s geographic position is a significant asset. Located in the centre of Southeast Asia, it provides immediate access to key markets across Asia, including China, India, and Southeast Asia. This makes Singapore an ideal location for regional distribution and logistics, offering unparalleled connectivity to billions of consumers.
Asia’s growing middle class offers immense opportunities for consumer-oriented businesses. With its central location, Singapore provides companies with a base to tap into Asia’s rapidly expanding consumer markets, from retail to luxury goods.
In addition, Singapore has an extensive network of Free Trade Agreements (FTAs) with key markets worldwide, allowing businesses to benefit from reduced tariffs and smoother trade flows. To further facilitate trade, Singapore’s free trade zones enable companies to import, store, and re-export goods efficiently.
2. Robust and Business-Friendly Regulatory Environment
Singapore is consistently recognized as one of the world’s most business-friendly locations. Its transparent legal system, modelled on British common law, provides a secure foundation for companies. The straightforward regulatory environment fosters an atmosphere where businesses can thrive, with efficient processes and minimal red tape.
Setting up a business in Singapore is both quick and straightforward. With a streamlined registration process and minimal restrictions on foreign ownership, companies can incorporate and begin operations with ease, making Singapore an efficient hub for business activities.
In the World Bank’s new “Business Ready” 2024 report, which replaces the previous problematic “Ease of Doing Business” ranking, Singapore scores 72.37% (fourteenth), 70.40% (second) and 87.33% (first) respectively in the three pillars, namely, Regulatory Framework, Public Services and Operational Efficiency, which define the scope of the report.
3. Highly Developed Infrastructure & Connectivity to Global Markets
Singapore boasts world-class infrastructure, from its state-of-the-art Changi Airport, which often clinches the top spots for the World’s Best Airport, to the Port of Singapore, one of the busiest and most efficient ports globally. Its advanced telecommunications networks further support business operations, ensuring seamless connectivity in a digital age.
The country’s position as a major trade and logistics hub is strengthened by its superior air and sea connectivity, with its ports and airport providing businesses with access to global markets, making it a vital gateway for trade and commerce.
4. Political Stability, Strong Governance and a Favourable Tax System
Singapore is known for its stable political environment and sound governance. The government’s consistent policies, low levels of corruption, and robust legal enforcement provide a secure environment for businesses to operate, ensuring predictability and long-term stability.
In the Chandler Good Government Index 2024 report, Singapore ranked first in the overall list of 113 countries, topping three out of seven categories, namely, Leadership & Foresight, Strong Institutions, and Attractive Marketplace.
Furthermore, the tax regime in Singapore is highly competitive. With a low corporate tax rate and an extensive network of double taxation agreements with over 90 jurisdictions, businesses enjoy significant tax relief. Additionally, Singapore offers a variety of tax incentives to encourage investment, making it a highly attractive location for companies.
5. Skilled, Multilingual Workforce with Cultural and Societal Diversity
With a highly educated workforce skilled in diverse industries, Singapore offers companies access to top talent, ranking second in the IMD World Talent Ranking 2024. The workforce is also multilingual, with proficiency in English, Mandarin, Malay, and Tamil, allowing businesses to easily communicate and operate within Asia’s multicultural landscape.
On top of this, Singapore’s multicultural society fosters a business environment that is both inclusive and adaptable. The diversity of the local population makes it easier for companies to conduct business with various demographics and adapt to different cultural preferences.
6. Innovation and Technology Hub
Ranking fourth on the Global Innovation Index 2024, which uses indicators such as information and communications technology access, Singapore has positioned itself as a leader in innovation, investing heavily in technology and R&D. The government actively supports tech startups, AI development, and digital transformation, making Singapore a hotbed for innovation and a prime destination for tech-focused businesses.
7. Strong Intellectual Property (IP) Protection
For international businesses, protecting intellectual property is crucial. Singapore’s legal framework provides robust IP protections, giving businesses confidence in safeguarding their patents, trademarks, and copyrights within a secure jurisdiction. Singapore also ranks second on the International Property Rights Index 2024, an assessment that evaluates the robustness of a country’s property rights regime, covering both intellectual and physical property protections.
8. Access to a Wealth of Funding Options & Financial Services
Singapore’s financial ecosystem offers a diverse range of funding sources, from private equity and venture capital to traditional bank financing. The government also provides grants and funding programs to foster business growth, ensuring that companies have the financial support they need.
As one of the world’s leading financial hubs, Singapore also provides a comprehensive range of financial services, including banking, asset management, and insurance. This robust financial sector supports corporate financing needs, from cash management to complex investment strategies.
9. High Quality of Life and Work Environment
Singapore’s high standard of living, exceptional healthcare, and quality education make it a desirable place for expatriates and professionals. This safe and cosmopolitan city offers an ideal environment for both work and life, attracting skilled talent from around the world.
Among Singapore’s hospitals, four public and two private hospitals were listed in Newsweek’s World’s Best Hospitals 2024, a list of the top 250 hospitals in the world. In the 2022 Programme for International Student Assessment (PISA) survey, which assesses the ability of 15-year-olds to apply their knowledge and skills in reading, mathematics, and science to tackle real-world challenges, Singapore was ranked number one in all three areas.
10. Singapore’s Commitment to Sustainability and Green Economy
Singapore is leading Asia in sustainable business practices, promoting green initiatives and sustainable growth. The city-state’s commitment to a green economy offers opportunities in renewable energy, waste management, and sustainable innovation. Through ambitious policies and initiatives, Singapore has actively worked to reduce its carbon footprint, manage resources efficiently, and promote green practices across industries. The Green Plan 2030, for example, outlines a comprehensive approach to achieving sustainable development, with key targets in areas such as energy efficiency, green buildings, and waste reduction.
How Premia TNC Can Help
Premia TNC helps companies leverage local incentives and tax benefits, enabling efficient and cost-effective operations. From guiding companies through government incentives to ensuring compliance, Premia TNC provides the essential support that allows companies to focus on growth and succeed in Singapore’s thriving business landscape.
