Singapore is one of the world’s biggest hubs for international business. Companies from all over the world have chosen to move there, and there are a lot of reasons for that. In most cases, the decision to move comes down to economic factors, such as tax rates. On the other hand, Singapore’s culture also gives it a few unique advantages that make it an appealing place to do business.
A Business-Based Economy
Singapore is a small island that has relatively few natural resources. On the other hand, it does have a great location. European governments took advantage of its location to support trade and colonization in Asia, which led to a business-friendly culture. It has depended on both trade and manufacturing to survive for a very long time, so the people of Singapore naturally tend to support business. That aspect of the local culture makes it a great place for people who want to take part in the local economy.
Where East Meets West
Singapore has long been the gateway to Asia. The modern government began as a British colony, which served to bridge the gap between the British empire and the rest of Asia. Many other western nations took advantage of that connection to trade. It retains a legal and social structure that resembles that of Britain and America as a result of that history.
On the other hand, Singapore also retains a fundamentally Asian identity. Some traditionally Asian practices remain. In practice, people from both the East and the West can find enough similarities to their home to be comfortable. Everyone can do business in Singapore without feeling like a complete outsider. Singaporeans are also particularly suited towards negotiating between groups from different areas, which is an asset in an increasingly global marketplace. Even a little bit of extra understanding goes a long way!
Source: E-Sandhurst.com
Government Support
The Singaporean government deserves a lot of credit for making the country into an appealing place to do business. It provides a good number of resources for expats who come in with their companies and makes it fairly easy to do so, but it has funded education and domestic development to improve the local workforce.
Individual industries, such as the tech sector, also receive plenty of support. That encourages domestic business to grow, and many of those businesses are eager to work with foreign companies. Plenty of them are eager to expand abroad, and that encourages them to form partnerships.
Source: CIO-Asia.com
Technical Talent
Technology dominates the modern economy. Factories depend on automation to produce more goods at lower prices, administrators use software to make themselves and their companies more efficient, and many international companies make a small fortune by producing new tech items. Every company that depends on technology has a need for skilled workers. Most devices are fairly complicated, and they work best when the user understand how to use them effectively. Many also require support from a specialized company in order to fix problems or even to operate the devices.
Singapore is a center for technology in Asia. The tech companies there tend to focus on research, so they can always provide local companies with top of the line tools. It is also easy to have custom tools developed to meet an individual company’s needs. The sheer number of tech companies and the government’s focus on technology also means that there are plenty of skilled workers in the country. The ease of hiring skilled technicians is a big asset for modern businesses, especially those that are part of the tech sector.
Source: EDB.gov.sg
Favorable Tax Laws
Taxation is a big financial concern for most international businesses. Singapore is often called a tax haven because its tax structure is so friendly to businesses. Personal and corporate tax rates are low, especially for industries that receive special support. The country also has a huge number of treaties to prevent double taxation, which can be a big asset for companies that interact with a large number of foreign partners. International trade is constantly expanding, so that type of support from the government is becoming more and more precious every day.
Source: Investopedia.com
A Place to Do Business
Ultimately, businesses are moving to Singapore because it is such a good place to do business. The island’s geography and history ensured that it developed in a way that supports businesses, and the government has acted to make it even more appealing. It’s only natural that businesses from all over the world would recognize the country’s advantages and move to Singapore.
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