Why do Companies set up and hire in Singapore despite the high costs?
5 Reasons #ToThePoint
1. Singapore is a good launch pad to do business in Asia.
The global economy is increasingly interdependent and Singapore has an excellent reputation as a gateway to Asia, serving as the regional headquarters for many multinational companies. In addition, Singapore’s strategic location, a leading financial hub, and a wide range of talent and skills make it highly attractive to businesses across industries.
2. Singapore is a good place to recruit talent.
Singapore is a talent magnet, attracting highly sought after professionals from around the globe. The country has the world’s highest percentage of millionaires in the world, the second highest concentration of billionaires (after New York), and many international companies have their regional headquarters here because of the quality of the local workforce.
3. Singapore is a good place to do business.
Singapore ranks highly in a number of key areas and has a reputation for being a very business-friendly country. It is among the top three most competitive countries in the world, according to the World Economic Forum’s Global Competitiveness Report. It is also ranked the best country in the world for doing business, according to Forbes.
4. Singapore is a good place to do business because of its low tax rates.
Singapore offers one of the lowest corporate tax rates in the world, at 17% for companies earning income and having a taxable presence in Singapore. The tax rate for non-resident companies is 15%. The effective tax rate is even lower, at 8%, when the various tax incentives are taken into account.
5. Singapore is a good place to do business because of its variety of incentives.
Singapore offers a tax incentive of 20% to 30% of qualifying expenses for companies that invest in research and development (R&D) in Singapore. Companies that manufacture high-tech products in Singapore may be eligible for an additional 10% of the value of eligible manufacturing expenditures as a tax deduction. Certain companies can also enjoy payroll tax rebates and rebates for the employer contribution of the employees’ Central Provident Fund (CPF) contributions.
About the Author
I am the Founder of Cudy Technologies (www.cudy.co), a full-stack EdTech startup helping teachers and students teach and learn better. I am also a mentor and angel investor in other Startups of my other interests (Proptech, Fintech, HRtech, Ride-hailing, C2C marketplaces and SaaS). You can also find me on Cudy for early-stage Startup Founder mentorship and advice.
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