Singapore

Why trade or invest in Singapore?

Supportive government policy on FDI

Singapore is one of the world’s most prosperous nations.  Foreign investment is welcome and Singapore’s regulatory framework is one of the world’s most efficient. Starting a business takes three days, and required procedures are straightforward.

Its economy is dominated by services (72.8 percent of GDP), particularly finance and tourism, but the country has also specialised in industry (27.2 percent of GDP), mainly in digital and electronics manufacturing and petrochemicals. Thanks to government initiatives and subsidies, biomedical and pharmaceutical manufacturing and clean energy are seen to be the future.  Guided by government initiatives, tourism has diversified into niche markets such as medical tourism, the gaming industry and the MICE (Meetings, Incentives, Conferencing and Exhibitions) industry.

Singapore also regularly engages in entrepôt trade, whereby industries and businesses in the country import raw materials, before refining them for re-export. 47 percent of Singapore’s exports consist of re-exports.  Most recently, it has mounted an initiative called Future•Singapore. This is designed to develop and test bed new ideas and solutions in the areas of urban living, wellness, ageing and healthcare, and lifestyle products and services.

Free trade

Singapore has relatively few trade barriers. Trade partners with Most Favoured Nation (MFN) have zero tariff rates applied to their products, apart from alcoholic beverages.  Singapore is also a member of ASEAN.

Various incentives for businesses and investments

Eligible businesses with substantive plans to grow through conducting high value activities in Singapore may apply to qualify for our various incentives programmes.International / Regional Headquarters Award (IHR / RHQ); Land Intensification Allowance (LIA); Integrated Investment Allowance (IIA); Mergers&Acquisitions (M&A) Scheme; Pioneer Incentive; Development and Expansion Incentive (DEI); Finance & Treasury Centre (FTC) Tax Incentive; Aircraft Leasing Scheme (ALS); Research Incentive Scheme for companies (RISC); Initiatives in New Technology (INTECH); Land Productivity Grant (LPG).

Stable political environment

Singapore is a republic with a Parliamentary system of government based on the Westminster model. Since the day Singapore officially gaining sovereignty on 9 August 1965, its politics has been dominated by the People’s Action Party (PAP). Their leadership possesses a distinct political culture: authoritarian, pragmatic, rational and legalistic.

Skilled labourforce

Singapore has a population of 5.4 million. The majority of the labour force is highly skilled and well educated – with compulsory primary education for all its citizens. This highly educated and motivated workforce has added to the economy’s dynamism and resilience, reinforcing Singapore’s innovative capacity.

Due to its unemployment rate being one of the lowest in the world, Singapore government is actively pursueing foreign immigrants and expatriates to live and work in the country. A significant percentage of foreign workers are high value talent who are brought in to provide strong labour competition for Singaporeans.

The vast majority of foreign workers of cheap labour are attracted from developing Asian countries to occupy jobs that regular Singaporeans shun.

Attractive wage policy and taxation

No minimum wage is enforced, but wage adjustments are guided by the National Wage Council.  The top individual income tax rate is 20 percent, and the top corporate tax rate is 17 percent. Other taxes include a value-added tax and a tax on property.

Some particularities of the Singapore legal system you should know

Singaporean society has a low tolerance for corruption, and the effective rule of law strongly undergirds all aspects of economic development. Contracts are secure, there is no expropriation, and commercial courts function well. Singapore has one of Asia’s best intellectual property regimes.

Whom we work for

A-Law Singapore desk has been providing legal support to clients in different areas, such as real estate issues, corporate and civil (family) law, traffic law, migration law, liability law and debts recovery (bankruptcy, administrative fines).

An in-depth approach of the different legal aspects of cross border cooperation and trade, commercial agency, distribution and franchising of a wide variety of products exported from or imported into Singapore have been assessed through A-Law dedicated team.