{"id":2168,"date":"2020-11-13T12:52:19","date_gmt":"2020-11-13T04:52:19","guid":{"rendered":"https:\/\/loopnewsletter.com\/?p=2168"},"modified":"2020-11-13T12:52:19","modified_gmt":"2020-11-13T04:52:19","slug":"6-reasons-why-singapore-is-perfect-for-tech-investments","status":"publish","type":"post","link":"https:\/\/transformborders.com\/6-reasons-why-singapore-is-perfect-for-tech-investments\/","title":{"rendered":"6 Reasons why Singapore is perfect for tech investments"},"content":{"rendered":"\n

According to a report by Singapore\u2019s Economic Development Board (EDB), 80% of the world\u2019s top 100 tech firms<\/a> have a regional headquarter in Singapore. Even companies that are already headquartered in Asia have chosen to establish a presence in Singapore to lead their Southeast Asia expansions<\/a>. An example would be the Chinese tech behemoth, Tencent Holdings<\/a>. The company has announced in September 2020 that it has selected Singapore as its beachhead to support its operations in SEA. Tencent\u2019s new office in Singapore will house tech and business development functions such as cross-border commerce, cloud computing and e-sports. So in this article, we will be uncovering the top 6 reasons why tech companies are deciding to set up and invest in Singapore.<\/p>\n\n\n\n

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Free Trade Agreements (FTAs)<\/strong><\/p><\/blockquote>\n\n\n\n

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The Ministry of Trade and Industry Singapore (MTI) has signed over 23 bilateral and regional free trade agreements worldwide to help facilitate trade and investments. These trade agreements have allowed both investors and Singapore-based companies to enjoy tariff concessions, gain wider access to key sectors and enable faster entry into new and emerging markets. In other words, free trade agreements<\/a> are designed to make trade and investment between two or more economies easier.<\/p>\n\n\n\n

In addition, IPOS<\/a> (Intellectual Property Office of Singapore) facilitates enhanced intellectual property protection, making it perhaps one of the more attractive benefits for tech investors as IP breaches can be one of the biggest challenges tech companies face when moving overseas. With trade agreements and intellectual property protection that works to tech companies\u2019 advantage, they can set up regional headquarters in Singapore for research and development purposes with peace of mind.<\/p>\n\n\n\n

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Strategic Location<\/strong><\/p><\/blockquote>\n\n\n\n

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Singapore\u2019s strategic geographical location has allowed it to transform from a relatively small island into the giant trading hub of Southeast Asia it is today. Not to mention, the country is one of the world\u2019s top transportation hubs for sea and air cargo<\/a>. Its container ports are the busiest in the world and Changi International Airport is linked to 300 cities in 70 countries, with more than 6,500 weekly flights. Located at the central heart of Southeast Asia, Singapore\u2019s excellent global connectivity is an ideal hub to access other cost-effective manufacturing countries and emerging markets.<\/p>\n\n\n\n

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Skilled Workforce<\/strong><\/p><\/blockquote>\n\n\n\n

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At an astounding 97.5%<\/a>, Singapore has one of the highest numbers of university graduates and literacy rates. With a high literacy rate, widely spoken English and numerous work passes<\/a>, Singapore has attracted many experienced foreign talents to come work here. By setting up an office in Singapore, tech companies may have access to global talents without being geographically limited.<\/p>\n\n\n\n

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Low Corporate Tax Rate<\/strong><\/p><\/blockquote>\n\n\n\n

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Singapore has a corporate tax rate of 17%<\/a>, which is one of the lowest in the world. To put it in comparison, its neighbouring country Malaysia has a 24%<\/a> corporate tax rate. Furthermore, new companies such as startups are also eligible for tax incentives for the first three consecutive years, a 75% exemption<\/a> on the first S$100,000 of their normal chargeable income and also a further 50% tax exemption on taxable income of up to S$100,000. These benefits combined with its government\u2019s business-friendly policies have allowed it to be the best country<\/a> to start up a business in the Asia Pacific region.<\/p>\n\n\n\n

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Politically Stable<\/strong><\/p><\/blockquote>\n\n\n\n

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Singapore's resilient political stability, exceedingly low corruption rates<\/a> and transparency in public institutions have made it a safe haven for investors globally. This has made Singapore a trusted partner for businesses and allows investors to be more ambitious and be more willing to take risks.<\/p>\n\n\n\n

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Singapore Government Funding for Businesses<\/strong><\/p><\/blockquote>\n\n\n\n

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The Singapore government offers a series of grants<\/a> to businesses in relevant sectors which requires aid, including:<\/p>\n\n\n\n