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Singapore is known worldwide for being a great place for expatriates, investors and entrepreneurs looking to expand into Asia. Its development into a financial hub conducive for trade, excellent infrastructure, and a stable, progressive legal and regulatory framework are just some of the reasons that make it appealing. Why is Singapore an ideal place for investing?
Let's explore some reasons why this little red dot is a great destination for your your next investment or even as a new home base for you.
#1 Well- maintained and tiered tax system
Singapore’s tax system is very welcoming for expatriates and investors due to the progressive nature of individual income tax rates ranging from 0-22%. Singapore does not impose any capital gains tax, inheritance tax and estate duties, which are especially beneficial to investors dabbling in stock markets, etc.
Investors don’t need to pay stamp duties when they purchase scripless shares listed on the Singapore Stock Exchange, where the transfer of such shares is made by the Central Depository (CDP) via electronic means. Businesses based in Singapore are also subject to a flat corporate income tax rate of 17%. Furthermore, there are tons of tax incentives and grants available to businesses based in Singapore.
#2 Leading financial hub in Asia
With well-crafted government policies and a stable business environment, Singapore has cemented its position as one of Asia’s leading financial hubs. As a result, many multinational corporations have already established a pivotal presence here in the lion city.
In addition, Singapore is the fourth largest financial centre globally and the third richest country in the world. It's also home to the biggest foreign exchange (FX) centre in Asia-Pacific and the third largest worldwide, after New York and London. With these international accolades, it's no wonder why Singapore is hailed as the de facto financial capital of Southeast Asia.
#3 Gateway to the world
Being strategically located within the heart of Southeast Asia, Singapore’s port is a major player within the region, and is always bustling with activity! It is also in close proximity to other countries and key markets in the region, providing investors based here with a plethora of opportunities.
Due to extensive ongoing efforts of promoting international trade and business, Singapore has established over 25 free trade agreements with major global markets. Investors and businesses based in Singapore can leverage on them to access to bigger economies and even out the competition on top of the grants and subsidies available.
#4 Great quality of life
Singapore boasts a stellar AAA long-term sovereign rating by credit rating companies such as S&P, Moody’s, etc. This is largely due to the stable and progressive political environment that has established peaceful living environments, and a multiracial and multicultural society that embraces diversity and inclusiveness.
Singapore’s also home to a world-class education system for investors looking to relocate and start a family. It is also coined as one of the most popular global destinations for parents considering a well-rounded rigorous education system for your children. There are also various private and international schools you can opt for other than public schools.
#5 A real-estate market that appreciates in value
According to The Straits Times, investment activity in Singapore's real estate market almost doubled in the first half of 2021 to US$4.7 billion (S$6.4 billion) worth of acquisitions, up 97% from 2020. A large influx of these investments come from cross-border investors, and with that, Singapore is officially at the top of the list for overseas investment destinations for the first time.
Despite the struggling economy due to the pandemic at the start of 2021, Singapore’s housing market remains healthy, and prices continued to rise. Fuelled by the strong demand and weak residential construction activity because of the pandemic, lesser residential units were launched. This mismatch in supply and demand caused prices to surge.
Even so, the overall market sentiment remains positive, and the volume of resale homes is expected to increase by around 5-10% this year. As such, many real-estate investors and foreigners keep Singaporean property as an asset in their investment portfolios.
All in all, there are tons of reasons why moving to Singapore or investing in the little red dot are worth exploring depending on your investment objectives. This can already be observed from the strong cross-border interest in Singaporean property, start-ups, and business environment. But most of all, knowing that Singapore truly welcomes and embraces foreign residents and businesses is perhaps its biggest allure.
