Singapore's Minister of Trade and Industry, Chen Zhensheng, said in Singapore parliament on September 3, 2019, that Singapore needed diversification and innovation to cope with uncertainty in the world market. The uncertainties mentioned not only the US-China trade conflict but also including BREXIT, tense situation between Japan and South Korea, and the situation in Hong Kong. This is also a various challenge, not only including trade but also technical issues. He answered Mr. Christopher de Souza from Holland-Bukit Timah GRC's question on how Singapore's SMEs, regional headquarters, MNCs, and labor force could protect themselves from the side-effects of the trade confrontation between the United States and China. Minister Chen Zhensheng said that Singapore should continue to achieve the diversification of the market, supply chain, and product mix. He urged Singaporean companies to achieve further business internationalization and run business in countries with positive economic growth. At the same time, he pointed out that Singaporean enterprises could use Singapore's diversified FTAs portfolio. The current FTAs cover more than 90% of Singapore's trade. Singapore continues to expand its FTAs’ network, both in quantity and quality.
Innovation brings business opportunities and vitality. Please see the advantages for Singapore company formation:
Singapore's business environment has always adhered to the concept of pro-business, corporate and personal tax rates are extremely low, and corporate and the individual can further enjoy the relevant tax exemption. Under the strict regulatory system and a long-term stable low tax rate, Singapore companies enjoy a good reputation and meanwhile become a tax haven.
Singapore has a flexible foreign exchange control system, foreign banks are everywhere, and the long-term stable low tax rate makes it the best place to transfer personal assets. There is no inheritance tax in Singapore.
Singapore Regulations stipulate that foreigners can apply for a Singapore work permit on the grounds of operating and managing a company, and therefore set up a company in Singapore. Company formation in Singapore just likes having an actual business and paying taxes locally in Singapore.
Singapore's superior geographical location makes it a world-class sea and air transportation hub. With the help of developed land, sea, and air transport channels, Singaporean companies can extend their commercial advantages to Southeast Asia and even the entire world.
Singapore currently has the largest free trade agreement network in Asia, which can help the enterprises enter the international market effectively and easily. Major economies that have signed agreements with Singapore include the United States, Japan, China, Australia, New Zealand, the European Union, Jordan, Chile, South Korea, India, and Panama, etc.
After China, Singapore is the country with the largest number of China Listed Companies. By the end of 2009, more than 40% of foreign companies listed on the SGX (Singapore Exchange Ltd) were Chinese companies. By listing on the SGX, Chinese companies can raise funds from international capital markets, enjoy the international reputation and benefit from a comprehensive and clear regulatory.
Singapore is about five hours flight from China, which brings great convenience to the businessmen that need to take care of both Singaporean and Chinese businesses.
Singaporean companies as holding companies return to invest in mainland China and enjoy preferential foreign investment policies. Singapore can also settle accounts in RMB so that enterprises can control foreign exchange risk, achieve the internationalization and appreciation, and improve their international visibility and competitive advantage.
In order to protect intellectual property rights, Singapore has devoted a lot of energy to developing a strong domestic regulatory framework. The 2011 IMD “World Competitiveness Report” rated Singapore as Asia's best and the seventh-largest intellectual property protection country in the world. And the World Economic Forum's “Global Competitiveness Report 2011-2012” ranks Singapore as the best intellectual property protection country in Asia and the second largest in the world.
According to a Reuters’ opinion survey, the expected value from 11 economists has surveyed shows that gross domestic product (GDP) from July to September of 2019 is expected to grow by 1.5% compared with the previous quarter.
A New York-based bank estimated that by August, the largest outflow of Hong Kong dollar deposits to Singapore, another financial center in this region, was between $3 billion and $4 billion.
The Monetary Authority of Singapore will implement a semi-annual easy money policy on October 14 (the same day as the third quarter GDP announcement). It is expected that the Singapore government will also process a generous budget before next year's general election. At the same time, DBS, United Overseas Bank, and OCBC (Oversea-Chinese Banking Corp) have opened their door to open accounts for investors.
