You may have heard Singapore referred to as the “Gateway to Asia”. Beyond just being a port city, investment firms are quick to point to Singapore as a landing pad for international expansion into Asian markets. We’ve outlined the top 10 reasons why Singapore’s burgeoning economy is increasingly attractive to businesses expanding into Asia.
- English Speaking
Although English is only one of four official languages in Singapore, it is the primary language used in education, administration, and business. About 95% of Singaporeans speak English and the country boasts equally as high English literacy rates. However, many describe the English used in everyday life in Singapore as “Singlish” because of the incorporation of both Hokkien and Malay words, but this is primarily limited to informal conversations. If you are an English speaker interested in expanding your business to Singapore, you can get a wealth of information from their government websites with no translation services needed! The government has compiled a wealth of market statistics for Singapore.
- Business Friendly Environment
The World Bank ranks Singapore as the number one country for ease of doing business, and legally forming a company takes less than one day with Singapore’s online ACRA system. It is relatively simple to obtain credit in Singapore. Although there is no public credit registry, there are clear laws that help protect both lenders and borrowers in place.
- No Local Governments
Singapore is a city-state, meaning that as a single city it has a sovereign government. Although there are recognized regions and “urban planning zones” within the city-state, there is only one, central government and legal system. This can be a major benefit for businesses, since there is only one set of laws to adhere to. In contrast to other countries, such as the United States, where a business has to operate under federal, state, local laws and tax structures, in Singapore there is only one level of bureaucracy to be compliant with.
- High Digital Penetration
This island country has an over 100% smartphone penetration rate and is the largest smartphone market per capita. Singaporeans don’t just own smartphones- they interact, connect, and shop on them as well. A recent mobile usage study for Singapore by Distimo showed that about 31% of Singaporeans will make in-app purchases, a statistic that shows tremendous potential for both developers and advertisers. Singapore also has near universal internet access and an online shopping market that is expected to top $3 billion (U.S. dollars) in 2015.
- Educated Workforce
About 47% of Singaporeans have some kind of post-secondary education, whether from a university or a technical school. Aside from just attainment rates, it’s also a quality education. Singapore is considered to have one of the best academic systems in the world. Business, engineering, and technology are among the most common majors for recent graduates, so your digital company should have no problem finding high quality customers and even qualified employees should you choose to open an office there.
- High Per Capita Income
Singapore is considered a high income country with a median income of around SPD $8,000 a month. A growing middle class in Singapore is expected to drive consumer spending in the coming years. Singapore also has the most millionaires per capita, and some predict it will overtake Switzerland as the wealth capital of the world by the end of the end of the decade. There is definitely a growing demand for luxury products, and even the average citizen has some disposable income for digital goods.
- Resilient Economy
The Singapore business community and government have proven they know how to weather storms. Despite the Singapore Dollar value taking a hit in the 1997 Asian Markets crash, their financial sector has bounced back to number two in the world. Singapore also retained a AAA credit rating through the 2009 world banking crisis.
- Cultural Affinity
Culture and product localization requirements are important to consider when bringing a new product to market and mistakes can be costly. Singapore is an incredibly diverse nation, with a plethora of different ethnic groups, religions, and an ever-growing population of expats. In fact, it is common for different groups in Singapore to participate in each others cultural festivals. Further, Singaporeans are well-traveled people. Nearly 80% of Singaporeans travel internationally at least once a year. A localized product from another culture has a good chance of being well received.
- Startup Support
There are numerous incubators in Singapore, some even housing startups and investors under the same roof. Although Singapore had had a less than desirable track record of startup success in the past, there is a growing emphasis on collaboration to provide mentoring, networking, funding, and assistance in going to market for new tech startups. Business, local universities, and the government have joined forces to provide new companies the resources they need to be successful. Even if you are not a native Singaporean, there is some government and private support you may still qualify for.
- Vendor Availability
In globalizing by bringing your product to a new market, you may desire to hire local companies to handle different aspects of the transition. Fortunately, Singapore has a well-developed economy and you have a broad range of highly skilled vendors that can handle marketing, design, PR, legal advice or finding employees. Further, there are numerous trade organizations and networking groups to help connect you to additional resources.
Are you interested in expanding your digital company into Singapore? Sign up for the Globig newsletter to stay on top of the latest news and check back in September when the full Singapore knowledge platform and marketplace will be available.
