Investment Exploding

Economic Development Board (EDB) managed to secure SGD13 billion worth of foreign investment in the first four months of 2020 – among the highest in recent years, which is also far exceeded the annual target of SGD 8 billion to SGD 10 billion. The investment will create thousands of jobs in areas such as electronics and chemicals, which intend to add thousand job opportunities in the next few years.

Foreign Currency Deposits and Non-resident Deposit Jump Up

According to data by the Monetary Authority of Singapore (MAS), deposits from residents outside Singapore jumped 44% to its highest level of SGD62.14 billion. This includes deposits from persons with registered addresses outside Singapore, such as overseas residents, Singaporeans working aboard and companies with a registered overseas address.

Meanwhile, foreign currency deposits at banks here soared almost four times to a record SGD26.97 billion in April from a year ago. Both foreign currency and non-resident deposits are at record highs since records began in 1991.

Investors Safe Haven

Singapore’s Trade and Industry Minister Chan Chun Sing states that the results reflects the confidence major investors and businesses have in Singapore’s economy, Singapore is also seen as a haven for talent and intellectual property in the current crisis.

Best Country for Investors in 2020

The world’s best counties to invest in or do business in for 2020 have been revealed by CEOWORLD in May 2020, Singapore scored the highest marks. The study analyzed 80 counties according to business and investment environments. Corruption, freedom, workforce, investor protection, infrastructure, taxes, quality of life, red tape and technological readiness were amount the factors taken into consideration.

According to the report, even during the lockdown, activity is picking up via online platforms, three rich Chinese bought six apartments worth a combined SGD 20 million at the central business district.

Singapore is once again attracting the attention of global investors and economists. Why has it
defied the odds in the current epidemic? Has the inflow of money flowed from Hong Kong to Singapore since the middle of last year? What is the charm of the “little red dot” that makes it a haven among investors in times of uncertainty?

1. Superior Geographical Location
   
   Singapore is strategically located between the Pacific Ocean and the Indian Ocean, serving as a hub for major trade, shipping and air routes in the world. Changi Airport has been ranked the best airport, serves more than 100 airlines flying to about 100 counties and territories globally.
   
   Singapore also link you to more than 600 ports globally, with 200 shipping lines passing through Singapore, which help businesses here connect with the world.
   
   
2. Global Business Hub
   
   Singapore overtook Hong Kong in a KPMG ranking of reginal headquarters locations for MNCs in Asia. Many MNCs have chosen Singapore as their gateway to the region. Businesses can use Singapore to gain a deeper understanding of consumers in Southeast Asia, where they can deepen innovation and commercialize solutions for the benefit of Southeast Asia and the world.
   
   
3. Stable Political Environment, Efficient Crisis Management
   
   Singapore ranks 4th- safest place amid Covid-19 pandemic study done by Deep Knowledge Group. By comparison, Singapore took top marks for monitoring and detection as well as government efficiency.
   
   At the beginning of the epidemic, Singapore was called a model of epidemic prevention, but when the outbreak hit Europe and the US, Singapore is considered to have failed in its fight against the epidemic due to the outbreak in dormitory workers. However, the government’s quick response as well as stay open and transparent which makes the investors have more confident in Singapore.
    
4. Strong Support from Government
   
   Covid-19 has brought the global economy to a near standstill, the Government of Singapore has released four budgets, spending trillions of Singapore dollars to protect jobs, business and the economy. The government is also committed to creating a pro-business environment through its economic and manpower policies, providing incentives for the R&D activities and grants that can help the business expand and improve efficiency. Over the three years, the Government will input SGD8.3 million to spur economic transformation and business growth, absorption of bank loan risk up to 70% for new companies set up less than 5 years. Singapore’s corporate tax rate is 17%, no capital gain tax and dividend income tax.
   
   There are also tax incentives for foreign investors who set up holding companies in Singapore to buy shares or assets within or outside Singapore.
   
   
5. Least Risky Country for Investments
   
   Sound monetary and fiscal policies, coupled with a robust judicial system, underpin our low-risk economy. According to the 2016 Investment Environment Assessment Risk Report, Singapore and Switzerland ranked first among 50 major countries and regions in terms of investment environment. The report assesses the extend to which counties invest and profit from their investments from the perspective of MNCs as a basis for determining the quality of investment environment. The judges considered Singapore to be a good place to invest due to its low operational, political and exchange risks.
   
   
6. Top Talent is in Abundance
   
   Singapore has the most competitive workforce in the world, and its people are highly educated and skilled. More than 30% of the workforce has college degrees, and Singapore’s bilingual education system also makes the locals here speak at least one other language besides English.
   
   According to Global Talent Competitiveness Index, Switzerland tops the list Singapore ranked second, which is the only Asian country in the top 10.
   
   Singapore’s two universities, National University of Singapore and Nanyang Technological University of Singapore, are ranked 11th and 13th respectively in the latest 2021 QS World University Ranking. It’s also the top two universities in Asia, which fully testifies to the quality of teaching and reputation of the two universities.
   
   
7. Garden City, Great Place to Live
   
   In Singapore, 94% of people feel safe when they go out alone at night. A long history of low crime, a transparent justice system and a reliable police force supported by its citizens has made Singapore one of the safest counties in the world. Singapore has long been known as a Garden City, with 47% of the land covered by green space and 50,000 trees planted in Singapore each year. Singapore has one of the most developed and efficient public transport system in the world, more buses per million people than Tokyo or New York. In addition, the unique concept of
   
   “Home Ownership Scheme” in Singapore has enabled the home ownership rate to reach 90%. It’s not difficult to understand that Singapore ranks among the top in terms of the quality of life in Asia, because the quality of life is closely related to the housing.
   

References:

1.              Singapore Company Incorporation Package #SGLLC03

2.              Branch Office Vs Subsidiary Company in Singapore

3.              Continuing Obligations of a Singapore Branch of a Foreign Company

4.              Singapore GST

5.              Singapore Company Nominee Director/Shareholder/Agent Services

6.              Singapore Global Investor Programme Guide

7.              Singapore Budget 2020

8.              Introduction to Family Office in Singapore