Investing In Singapore

For anyone wondering whether or not to invest in Singapore, having a look at the following review may be of great value.

Singapore has time and again been ranked as one of the best business destinations in the world, and this comes as no surprise. In the Doing Business Project 2009, courtesy of the World Bank Group, Singapore emerged winner in many categories.

The categories in which Singapore was first included:

The Effortlessness of Doing Business

This was so because of the favorable environment for business that both local and international investors were given, especially because of the free-enterprise way of doing business even for foreigners. The flexible labor laws in Singapore have made employment of workers easy. Workers also have benefited in that working hours are flexible and laws governing hiring and dismissal favor them.

Trading Across Borders

The criteria used to measure how easy it is for trading across borders to take place includes certification, time factor and cost of exportation and importation. Singapore was graded first in having the most conducive economy for international trade.

Taxation

One reason for investing in Singapore is because of the ease of paying taxes, not to mention that corporate tax rates there are very low, as they currently stand at 17 percent. This is the second lowest corporate rate in the world, Hong Kong having the lowest rate of 16.5 percent.

Also, some tax incentives schemes, which have made investing in Singapore easier, have been handed out by the Economic Development Board of Singapore (EDB), and they include:

Pioneer Industries

The EDB grants an incentive to a permitted industry which ventures in a business that has not been done before in Singapore but seems to have great prospects for the country. The company is granted tax relief from the day it starts producing for a certain period not exceeding 15 years

Pioneer Service Companies

Similar to the above scheme, the pioneer service companies’ incentive is given to companies whose services are under the category of 'qualifying activities'. These activities include engineering services and scientific services such as laboratory, research and development, consultancy and computer related services. Other activities that are ‘qualified’ include the advancement and fabrication of any industrial design and any other activity that may be categorized so.

Development & Expansion Incentive

Any industry that is allowed to manufacture or increase production of any good that is considered to be highly profitable to Singapore is granted a tax relief for a period of between 5-10 years.

Enhanced Tax Deduction for Expenditure on Research & Development

A taxpayer who conducts any ‘qualified’ R&D activity in Singapore can, upon completion, reclaim a refund of 50 percent of the tax spent on the same. In some cases, even a full refund can be granted!

At present, Singapore has entered 18 Free Trade Agreements (FTAs) with many countries including the United States of America, Korea, Japan and China. There are also a number of other FTA negotiations which are still underway with India, Mexico amongst others. The FTAs greatly caused a decrease in the cost of trade in Singapore by reducing and/or eliminating certain tariffs, making investment easier, and improvement of intellectual property regulations. Therefore, investing in Singapore seems not only to be the current trend, but also the wisest thing to do for a business person.

Mindy Yong 杨雯诗

CEA Registration Number : R021232Z

Tel: (+65) 91002985
Fax: (+65) 64021826

mindy@mindyyong.com

KF Property Network Pte Ltd
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