Why Choose Singapore VS United States
One of The Most Important Gateways to Asia
Both Singapore and the United States have plenty to offer investors and are among the top choice destinations considered by investors looking to expand. Both governments are very investor friendly and offer good tax incentives to foreign companies opening up there. One strong point Singapore has over the US is it is one of the most important gateways to Asia and due to it’s strategic geographic location, many foreign investors and companies are attracted to it. It also offers among the lowest corporate taxes in the region and by setting up base in Singapore, companies benefit from Singapore’s network of over 50 comprehensive Double Taxation Avoidance Agreements. They can also take advantage of the many free trade agreements Singapore has entered into and the 35 Investment Guarantee Agreements. Through these FTAs, Singapore has been able to establish communication with a network of countries that contribute at least 60% of global GDP. As for the US, it offers the largest consumer market on earth with a GDP of $18 trillion and 325 million people. Household spending is the highest in the world, accounting for over a quarter of global household consumption. At the same time, free trade agreements with 20 other countries provide enhanced access to hundreds of millions of additional consumers – and the US continues to work with foreign partners to increase opportunities for US exporters.
Another advantage for investing in Singapore is that overall, the government has made it easy and comfortable for any business to be set up here, and has much forward thinking to train the local labour pool for advanced services like in the finance and technology sector. Attraction of foreign investment has always been the name of the game for Singapore, and the government has made it really comfortable for anyone interested to enter it’s market. As for the US, it is also consistently ranked among the best internationally for its overall competitiveness and ease of doing business. Backed by a regulatory environment that is particularly conducive to starting and operating a business, US business culture encourages free enterprise and competition. As a stable democracy with a transparent and predictable legal system, all companies, regardless of national origin compete on an even playing field. Being nominated the easiest city to do business in several times is one of the strongest arguments why foreign investors should open a business in Singapore.
The city’s infrastructure, banking system and communication facilities are also very important as they are less time and money consuming factors when deciding to set up a company. Singapore provides many incentives for foreign investors putting money in certain industries such as financial services, tourism, healthcare and telecommunications. Foreign enterprises can also rely on Singapore’s double tax treaties with over 70 countries that allow them to reduce the tax burden. Singapore’s immigration policies which has attracted a great number of foreign citizens working in the top industries in Singapore, has also created an impressive pool of talent, Singapore being the country with the most internationalised workforce in the world. This has determined many companies to relocate to Singapore and take advantage of the labour force which is also one of the cheapest in the region. The US workforce is diverse, skilled, innovative and mobile and US workers are among the most productive in the world. Looking to the future, the US has prioritised collaborative mechanisms with public and private-sector organisations to ensure that the workforce is able to meet the needs of a 21st century economy.
Offering Better Support to Foreign Investors
In order to see exactly why Singapore is a preferred business location compared to other countries, it suffices to say that compared to China, India and Japan – three of the strongest economies in the region, the city-state offers incentives targeted to specific industries and foreign investors can apply directly with the Government for them. Singapore has the great advantage of offering better support to foreign investors, an excellent road system and communications infrastructure. Singapore is also one of the most innovative countries in the world, being the first to create and test its own digital currency. As the third largest nation by geography, the US is home to vast and varied landscapes with abundant natural resources, including petroleum and natural gas. These diverse regions are connected by an expansive infrastructure network and service that helps companies efficiently produce and move their products. The US hosts the most developed, liquid, flexible, and efficient financial market in the world. A wide range of funding sources – from banks and investment firms to venture capitalists and angel investors – enable innovation and expansion, giving companies in the US an advantage.