Why Singapore Attracts Foreign Entrepreneurs and Firms?
Singapore’s quality lifestyle fascinates the world. Its unbelievable evolution as world’s leading business and finance hub persuaded Jim Rogers, an American-born businessman and Wall Street giant, to move to Singapore in 2007. This country is now best known for living peacefully with cultural diversity, offering a safe living environment to its residents, tax facilities, a world class business community and a very stable lifestyle.
There is no question about the fact that the country is growing as an ideal place for setting up new business empires. If the aspiring business community is thinking of migrating here, the major driving forces would be –
1. Ease of doing business. The country has been very affable in terms of offering favorable business regulation policies. World Bank now ranks this place number one for this privilege. 2. Forbes Magazine ranks this place as the third wealthiest nation of the world. 3. As per Ernst and Young’s 2011 Globalization Index, Singapore has acquired the third position in the top 60 world’s largest globalized economy. 4. One of the most favorable country in terms of political stability. 5. Singapore has world’s most efficient human resource. 6. This country is best known for its quality of lifestyle. 7. In Singapore, nobody has to pay tax on capital gains or dividends. 8. Personal tax also ranges from 0 percent to 20 percent (for income
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Singapore is Southeast Asia's most important financial center and trades enter pot. Singapore also has the very high level infrastructure development in people's living standard, housing, education and transport among in Asia, attracts numerous investors and tourists every year. Base on Singapore’s characteristics of business environment
Singapore is a very competitive country with regards to its economy. It is an ideal place to start a business as it has risen its rank from number seven to number six on doing business according to the World Bank (2017). Although this country is highly competitive, the economic situation of Singapore is being affected as it is dependent on exports. Because of recent changes in the global economy, Singapore faces weak global exportation demands, contributing to Singapore’s economic situation is the restructuring of the Chinese economy as their economy has since slowed down. even so, the government is expected to remain stable for 2017 as the government has developed plans that focuses on the investments of certain sectors of the economy. The population of Singapore is steadily rising with an estimated two hundred sixty-one million people in 2016 (The World Bank, 2017).
Singapore is both a city and a nation-state. This complicates matters. Most foreigners think of Singapore simply as a city. But most Singaporeans think of Singapore in national terms. This, by default, has had the unintended side effect of causing some fissures in the national fabric. It is possible to be both a global city and a nation-state. But it could be argued that the global city project pursued by Singapore has come at a heavy price for the nation-building project.
Globalization is the tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby increasing the interconnectedness of different markets. It not only increases international trade but also cultural exchange. Globalisation touches all aspects of a nation, be it economic, political, or sociocultural. The main objectives of globalization include – incorporating all the people from different worlds into a single global society which improves communication and persuades foreign companies to invest in the country which will bring revenue and improve the economy (Scholte, 1997). The country that will be discussed in this essay is Singapore which is a wealthy city state in south-east Asia with a population of 5,888,926 as on July 2017(est). Once a British colonial trading post, today it is a flourishing global financial hub and known as one of Asia's economic "tigers". Singapore has perfectly embraced a capitalist economy where the state is controlling all the stakes in companies. Also, because of the highly free market there are more than 7,000 different business companies in Singapore and the Port of Singapore is the busiest since the opening of Suez Canal which helps to increase import and export. The major success of Singapore is because of its strategic location and natural harbour from which 40% of the world maritime trade passes (BBC Report, 2017). With a GDP of $297 billion (2016 est.), Singapore has
"Home to some 4.48 million people (based on the last census in 2005 reported in 2006), Singapore is the fourth most densely populated country in the world and has one of the highest per capita gross domestic products in the world."1 The employment rate is 2.40 million (June 2006), with unemployment at an all-time low at only 2.5 percent. The labor force consists of mainly manufacturing, transportation and communication, construction, and financial, business, and other services. Singapore is orderly, prosperous, and modern. According to Richard H.K. Vietor, a Harvard Business School professor, Singapore, along with
The United Kingdom has seen major changes in the last years that a prospective business must look at when deciding on whether to start a business in the United Kingdom. Major changes are that they have left the European Union and that they are one of the fastest growing economies in the world (World Factbook, n.d.). Along with the recent major changes to their economy, the United Kingdom is located in an ideal spot for exporting, they have a high education rate, as well as many good, natural resources that allow for the exporting industry to be taken advantage of even more. The United Kingdom can be seen as a potential location for a business because of its good exporting abilities and growing economy, but potential businesses must be
This research focus on the various factors that motivates the different core parts to relocate. (Lewin and Volberda, 2011) states that moving a core part outside the border creates strategic benefits for the multinational company, like acquiring a higher and more efficient strategic knowledge by engaging with people from different context, or it can improve the access to international market or may provide a lower-cost fiscal regime.There are different set of arguments as to why MNCs move business unit and Corporate Headquarters overseas. If we are to base our research on established theories, we can easily say that the research is based on international business concerned with the nature and scope of the MNC. The Predictors of Business Head Quarters relocation (Dunning,1981;Rugman 1981, The theory of Multinational Corporation) suggests that the locational choices the MNS makes for each activity is just a comination of needs that will offer more advantages to the firm. (Rugman and
Ease of doing Business: Hong Kong is one of the renowned place when it comes to ease of doing business. As per 2012 report of World Bank, Hong Kong ranks 2nd when it comes to worlds easiest place of doing business3. Good infrastructure, simple tax policies and strong legal system are some of the reasons that makes Hong Kong an attractive
Known as one of the Four Asian Tigers, Singapore’s globalized and diversified economy is only behind Hong Kong’s. That title has been achieved due to its market economy, “A highly developed, and one of the freest, most competitive, innovative and business friendly economy based on extended entrepôt trade, a profitable trading post that allows importing and exporting free of duties.” (Wikipedia)
If I was the consultant of Singapore, the economy would continue to grow fast as the country will keep its focus on Technology, Communications and Media as Subsistence. The Republic of Singapore is the second-smallest country in Asia and consists of Singapore Island and several smaller islands off the southern tip of the Malay Peninsula. Singapore’s geographic location gives it strategic importance in the region. It is mostly low lying and hilly, with sections of rain forest, and mangrove groves. The tropical climate is characterized by heavy rainfall and high humidity. Average winter temperatures are 75°F and average summer temperatures are 88°F. The nation’s 4.6 million people are 77% Chinese, 14% Malay, and 8% Indian. They are 42.5%
Singapore has a high-income economy with one of the highest standards of living in the world. It has a gross national income of $55,150 per capita as of 2014. Since 1965, after independence, Singapore rapidly grew from a low income country to a high income country. GDP grew with an average of 7.7% since independence; in the first 25 years growth topped 9.2%. Per capita GDP over the same periods grew by 5.4% and 7.2%. Singapore industrialized rapidly in the 1960s and manufacturing was the main pillar of the economy. In the 1980s, the economy diversified and other sectors such as petrochemicals, finance and tourism sectors grew in importance. Due to its rapid development between 1960s and 1990s, Singapore is known as one of the “four Asian tigers” alongside Korea, Taiwan and Hong Kong. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1% in 2010, on the strength of renewed exports, before slowing to in 2011-13, largely a result of soft demand for exports during the second European recession. For long term growth, Singapore government is now focusing on value added sectors such as pharmaceutical and aerospace sectors as well as raising productivity of its work force.