Singapore is one of the strongest economies in Southeast Asia. It has earned a reputation due to its well-developed finance and trade sectors, low tax regime, and openness to foreign investment. The success of Singapore can be attributed to the innovative infrastructure, regulations and taxation frameworks, as well as the skills of the Singaporean workforce. There is no wonder why Singapore has seen significant growth in start-up and foreign business establishments in the past decade. There are numerous reasons why Singapore has become one of the prime sites for investments for foreign businesses and has allured numerous angel investors Singapore.
Location: Located on the edge of one of the southeast island clusters of Asia, Singapore has the world’s busiest transhipment ports that support its tangible export infrastructure across the Singapore strait. It’s notable that nearly 25% of Singapore’s GDP is accounted for by manufacturing industries. Thus Singapore has cleverly and strategically utilized its location to form robust import-export gateways. Moreover, it’s well connected to Chinese and Malaysian business hubs overseas.
High-yield real estate sectors: Investing in Singapore’s property sector can benefit businesses. It can create higher opportunities for revenue for the company as they can give the property on rent to other local businesses. Or, the property can be resold at a much higher rate in the future (if a company wishes to sell it). Furthermore, incorporating a business in Singapore is comparatively easy and fast for anybody as the process is also carried out online. In addition, setting up headquarters in Singapore makes a company eligible to avail of lower tax rates.
Friendly tax system: Singapore has investor-friendly tax systems where both national and international businesses are taxed mainly on Singapore-sourced income. Foreign income is exempted from taxes. Additionally, interest income from approved banks and capital gains is not taxable. In a nutshell, companies can benefit heavily by incorporating themselves in Singapore. And they can also expect higher returns on investments from Singaporean businesses.
Diverse investment opportunities: While trade and manufacturing sectors dominate the GDP of Singapore, there are many subsets within these sectors. In other words, a business can choose to invest as per their expertise in their area of interest. Various industries such as biotechnology, information technology, energy, tourism, and many more offer excellent investment options.
Robust judiciary system: Singapore’s strict legal system gives a sense of security to investors. Additionally, anti-corruption laws are strictly enforced to enable foreign investors to carry out their business practices without fearing corporate inefficiency. Moreover, In terms of political stability, it is one of the most developed countries. Personal safety is also considered a priority in the country, and the government complies by taking specific measures to ensure the safety of investors and inhabitants alike.
Exports in both the manufacturing and electronics sectors dominate Singapore’s GDP. As a result, it has one of the busiest cargo seaports in the world and has emerged as an attractive choice for tourism and financial investment. Although it is primarily an economic and trade hub, Singapore’s diversified economy offers investors a multitude of opportunities.