Singapore is a high-tech, innovative and commercially-geared country, which offers numerous benefits to entrepreneurs and global investors. Once considered a micro-nation, Singapore accumulates great commercial growth factors, which have been accelerated by the government’s promotion of lose control over information economy.
Business entrepreneurs with out-of-the-box thinking are thus, not only valued in Singapore, but are offered great tax and financial schemes, to escalate the growth of economic and political paradigms. Singapore also has a well educated and tech-savvy local population which is contributing to convert the country into an open society; where the government is open to hearing criticisms in order to improve the nation.
In the last few decades, the Singapore government relied on controlling elevated economic heights and focusing on shipping, shipbuilding and finance. The prevalence of closely knit formal institutions and systemized hierarchies further allowed the government to keep close tabs on all business activities, while they gathered resources for legitimizing their economic stewardship over the Asian markets. However, now that Singapore has achieved that, it needs to revitalize its economic growth policies to ensure stability.
In the last few years alone, the GDP growth declined from 9.5% to 2.9%. The companies have also experienced a slight plummet in the Daily Trading Volume and Stock Performance due to the maturing of the Singapore economy. However, Singapore’s intention of incorporating multiple ethnic and linguistic business links within its internal commercial system has given several foreign investors and entrepreneurs a chance to foster their companies in Singapore. The VP of Aliyun, Cloud Computing Branch of Alibaba, Ethan Yu said, “Many Chinese enterprises we serve have stepped out of China and come to Singapore.”
Singapore has taken several proactive steps, like the EntrePass Visa Scheme, to attract high tech firms from all over the world. It allows the business owner to raise initial start-up capital from any source and to apply for permanent residence in just two years. In addition to that, the Global Entrepreneur Executive Initiative was also launched in 2008, which was marketed specifically to the target audience of high-growth and high-tech foreign companies, allowing them to relocate to Singapore.
Currently, the Singapore government is not only focusing on fostering investors. It has also introduced the 1:1 Funding Matching Plan for early stage ventures to drive the innovative energies of the local population. Moreover, the Technology Incubation Scheme makes the company setup easier, as it includes distinct incentives like initial 85% of start-up capital provision through financial schemes and government funding.
The Infocomm Development Authority of Singapore (IDA) is also a great promoter of local start-ups. The IDA has an investment subsidiary known as Infocomm Investments Pte, which is fostering the Accelerator Programs. These programs aid the local start-ups to grow and build commercially stable market standing from an early stage. All of these creative growth policies by the government have further given rise to new companies being formed in Singapore. The number of start-ups also rose from 54,000 in 2010 to 77,000 in 2014, and is still growing. The Sovereign Investment Fund of Singapore is also looking to further diversify its portfolio by supporting unlisted private start-ups.
Our professional business experts at 3E Accounting will guide you on how to incorporate your company in Singapore and provide assistance with all the other variables concerned with immigration and company setup. If you are a financial investor looking to enter the financial market of Singapore, contact us today.