Located to the south of the Malay peninsula, Singapore is an island city in southeast Asia. Globally, the Singaporean economy stands tall as an advanced one. Are there some advantages to investing in Singapore?
There definitely are. Singapore represents a pinnacle of economic development rooted in the can-do spirit of its human resources. Being a maritime hub, Singapore connects more than 600 ports in over 100 countries worldwide.
A lot of factors have come in to play to make Singapore the economic hub it is today.
The strategic location of Singapore affords the Lion City its ability to headquarter over 37,000 overseas companies. What’s more, the financial market of this country is as robust as a rock. However, one disadvantage of the region is that doesn’t have many natural resources.
What’s fueling the growth of the Singaporean economy? And why should you invest in it? Find the answers below.
Why the Singapore Economy Attracts Investors
· Booming Trade and Financial Sector
One advantage of investing in Singapore is that its stock market is huge. With a market capitalization of roughly $7 billion (as of late 2019), Singapore’s economy thrives on free trade policies with some 31 trade partners. The country is highly ranked as one of the largest import and export economies.
· Conducive Business Environment
Many investors won’t risk their resources if the prevailing business atmosphere isn’t conducive to investment. Fortunately for Singapore, corporate tax rates are relatively low (about 17%). Corruption is also low.
The Singaporean economy is also free and diverse. Business regulations in Singapore are friendly. This makes it easier for people to conduct business. Added to that, diversity can be found in Singapore’s tourism, shipping, manufacturing, and finance sectors. All this opens investment opportunities for foreigners.
Due to its strict anti-corruption laws, Singapore hosts about 7k multinational companies from America, the European Union, and Japan, as well as another 3k Indian and Chinese corporations.
· Favorable Demographics
Based on its 2019 Gross Domestic Product (GDP), Singapore is placed third on the list of the richest countries in the world. The region contains a good number of the world’s millionaires. As a developed country, the unemployment rate is low.
· Proximity to China
Singapore shares close business relationships with China (the world’s 2nd largest economy). This is a window of opportunity for entrepreneurs and business founders who wish to tap into China’s robust economy. Looking for a Singapore Visa? Check out Visa Express website.
However, there is another side of the story to be faced squarely. Singapore’s interconnection with China is not always profitable for investors. When the Chinese economy plummets, it usually impacts on the Singapore economy in turn.
· Illiquid Stock Market
Unlike the American stock market where prices skyrocket and plummet frequently, the Singapore stock market is fairly illiquid. But if you’re able to wait a couple of years, you can make bigger capital gains.
· Stable Political Atmosphere
Investors win when there’s a peaceful environment for business development. Thankfully, Singapore has enjoyed lasting political stability for several decades. Transparency and accountability have kept the government on its toes.
The authorities formulate business-friendly policies that are attractive to investors. More importantly, their legal systems are also strong. There is great protection for intellectual property.
Of the Asian mainland, Singapore has the lowest crime rates.
Advantages of Investing in Singapore Economy: Conclusion
Singapore enjoys a positive reputation on the global map. Its wealthy economy continues to attract investors because of the country’s free trade policies, low taxes, superb geographical location, industrial advancement, and many more positive factors.
No wonder Singapore has been able to maintain a zero-tolerance position on foreign debt.
A skilled workforce forms the engine that drives the Singapore economy forward. Most importantly, English is an official language, making it easier for English-speaking investors to do business.