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Doing Business in Singapore VS Malaysia
Singapore and Malaysia – Strong Investment Choices
Malaysia offers investors a dynamic and vibrant business environment with the ideal prerequisites for growth and profits. With a commitment to helping businesses flourish, the Malaysian Government has put into place policies that encourage investments (FDI, DDIs) into Malaysia. The success of these policies is proven by Malaysia’s 3rd place ranking in the 2016 A.T. Kearney Global Services Location index and 4th place ranking on the World Bank’s Doing Business 2015 investor protection index. Strategically located in the heart of South East Asia, Malaysia offers investors a highly cost-competitive location for investors looking to set up operations catering for the regional and international markets. It’s location also makes it an ideal gateway to access Asean’s population base of 600 million (that’s larger than the USA and Japan populaces combined) and a collective GDP of USD2 trillion. To date, more than 5,000 companies from 60 nations have already cast their anchors in Malaysia. After the Asian crisis, Malaysia enacted many regulations which prevented the reckless flow of capital into and out of the country. These regulations require that capital invested in Malaysia stay invested for some years before they can be taken out.
Making Malaysia a Global Tech Hub
Through measures such as the ETP, the Government has pledged to implement the appropriate policies and provide its support for the creation of a conducive environment for business and investment. This allows investors to rest assured of a Government that is firm yet flexible enough to accommodate their needs. The country also boasts one of the best infrastructure in Asia to serve the needs of the business community. From high-speed broadband networks and internet backbones to well-maintained facilities like international airports, international seaports, and excellent road networks that link major growth centres to seaports and airports, Malaysia is a prime launching pad to access the rest of the Asean market. Malaysia is one of the most technologically developed countries among industrialising nations in the Asean region. The nation’s persistent drive to engage modern technologies proves to be a great advantage to manufacturers in Malaysia. Industries in Malaysia are predominantly located in over 500 industrial estates and Free Zones developed throughout the country. These zones are categorised as export processing zones, which cater to the requirements of export-oriented industries. There are also specialised parks that have been developed to cater to the needs of specific industries. The Government has established a conducive legal and regulatory framework of Intellectual Property and Cyberlaws in order to address the challenges faced by the tech industry. This is a reaffirmation of the Government’s commitment to realising the vision of making Malaysia a global tech hub.
Offers Investors a Host of Incentives
Singapore offers investors a host of incentives, including tax incentives for qualifying funds. The nation has tax treaties with more than 70 countries which provide a great advantage over other traditional choices. These treaties, along with low income tax rates and zero capital gain tax makes Singapore very attractive to investors. The most common capital gains are realised from the sale of stocks, bonds, precious metals and properties. Also, the Monetary Authority of Singapore has been keeping pace with global regulatory standards which helps inspire confidence in investors looking for a dependable place to put their money. The Singapore Tax Authority plays an important role in helping the nation develop a better environment and vibrant economy. With effect from the year of assessment 2010, a company, regardless if it is local or foreign, enjoys a flat corporate tax rate of 17 per cent. This rate is among the lowest in the world and greatly helps draw investors to the country. Dividends are profits one receives from his or her share of ownership in a company. Such dividends may be paid out in cash or in kind. For example, a company may pay its shareholders dividends in the form of company shares. In Singapore, as part of the country’s ongoing efforts to draw investors, dividends paid on or after Jan 1, 2008 by a Singapore resident company are exempted from tax under the one-tier corporate tax system, which means shareholders will not be taxed on income from dividends.
Opportunities for Those Looking for Sound Investments
Among the thriving economies in the region, Singapore provides countless opportunities for those looking for sound investments. Apart from it’s huge tourism industry, this island city-state is among the world’s most modern cities and a major financial hub in Asia. Its stock market alone is estimated to be worth over $470 billion. Apart from tourism, Singapore also has a large shipping, real state and financial services industry. Singapore’s port is the world’s busiest in terms of total shipping tonnage and is just second to Shanghai in total cargo tonnage. In fact, according to the International Monetary Fund, Singapore is among the wealthiest countries in the world, along the ranks of Luxembourg and Qatar in terms of economic output per head. So, if you are looking for somewhere to invest, Singapore is surely a great place, with a strong emerging economy and also a prime location for trade and business. Another plus point is the country has an excellent literacy rate, low crime and corruption and no drug problems. All this makes this nation among the premiere countries in the world for investment opportunities.