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Doing Business in Singapore VS Thailand
Strong Growth And Reduce Poverty Substantially
Thailand is the second largest economy in Southeast Asia, after Indonesia. However, it is only ranked fourth in the region, after Singapore, Brunei and Malaysia. The country enjoys a gross domestic rate (GDP) growth of about 4 – 5 per cent per year and is mainly driven by a strong automotive industry, while it is also a large exporter of rice and agricultural products. Thailand’s economy has in the past been affected by natural disasters and also political issues, but the country’s leadership hopes to move past these issues and rebuild the economy. Over the last few decades, Thailand has had strong growth and has reduced poverty substantially. In 2013, the Thai Government implemented a nationwide 300 baht (roughly USD$10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners. However, growth has slowed in the last few years due to domestic political turmoil and sluggish global demands. Nevertheless, Thailand’s economic fundamentals are sound, with low inflation, low unemployment, and reasonable public and external debt levels. Tourism and government spending – mostly on infrastructure and short-term stimulus measures – have helped to boost the economy, and The Bank of Thailand has been supportive, with several interest rate reductions.
However, despite all this, there are numerous considerations before one invests in Thailand.
Few Issues Threaten Economy Growing
For one, the country faces a high exposure to China’s slowing economy and the ongoing insurgency involving ethnic Malay Muslim rebels in the South threatens to destabilise the region, if left unresolved. Also, inflation remains a major concern given the economy’s strong economic recovery, which could threaten consumer spending and political unity. Over the longer-term, Thailand faces labor shortages, and domestic debt levels, political uncertainty, and an aging population pose risks to growth. Although Bangkok is a highly developed city, many provinces have varying degrees of education quality and salaries. There is also the problem of the Thai culture in the workplace especially in government agencies needs a bit of cronyism to get ahead. Being smart is not enough, you need to know the ” right person” to help promote you. That’s why many young smart people prefer to work in public companies, multinational firms and some decide to leave Thailand to work abroad.
Business Environment In Singapore
Singapore, on the other hand, is one of Asia’s, if not the world’s, most modern cities, with a population of 5.5 million. It is also a major Asian financial hub, with a stock market worth $473 billion. The country’s success in global trade is largely due to its location and the fact that it has very little corruption, a skilled workforce, low tax rates, and advanced infrastructure. Singapore is well known in the investment community for its trade and financial sectors. By 2025, CLSA forecasts that the country will overtake Switzerland and handle nearly a third of the world’s agri-commodity trade. The country’s robust financial markets have also become a key source of funding for a total market of 4 billion people within a seven-hour flight radius. In addition to the multi-cultural nature of Singapore’s workforce and ability to attract global talent, the city-state is seeking to become a global knowledge capital and concentrates on knowledge-intensive industries. The workforce in Singapore is highly educated, motivated and productive; it is also proficient in English, the language of international business.
Singapore‘s open immigration policy has increased its talent pool and provides businesses with the opportunity to hire the best personnel from anywhere in the world.
Easiest Country In which To Do Business
Singapore is the easiest country in which to do business, according to the World Bank Doing Business 2016 report. Singapore has excellent telecommunications, as well as strong financial and transport infrastructure. In addition, its strategic location at the crossroads of maritime routes and its proximity to big markets are strategic advantages. The country offers tax concessions and easy loan conditions as part of its investment incentives. Singapore boasts world-class infrastructure with top-notch transportation facilities. It is the leading network-ready environment in Asia, based on a 2014 report by the World Economic Forum. Applying the spoke-hub distribution paradigm, fund managers naturally view Singapore as the hub to connect with and expand into other parts of Asia efficiently. Singapore’s high level of connectivity and advanced infrastructure are key considerations for any serious player in this sector. International Companies setting up base in Singapore can make use of the diverse capital markets and state of the art financial services from more than 500 local and foreign institutions located in Singapore. In addition there are 4500 companies offering professional services, including audit, accounting and management consulting; market research, advertising and public relations; human capital services; and legal services.