According to a report by the Economic Development Board (EDB) of Singapore, 80 percent of the world’s top 100 technology firms are headquartered in Singapore. Even technology giants like Google, Amazon and Facebook have established their hubs here. Why do tech firms want to set up and invest in Singapore ?
Free trade agreements (FTAs)
To further promote trade and investment, Singapore has signed more than 23 bilateral and national free trade agreements across the world. This enables both companies and investors based in Singapore to enjoy tariff concessions, allowing for faster entry into new and emerging markets.
Intellectual property protection is probably one of the most appealing qualities for tech investors because violations of intellectual property can be one of the greatest obstacles that tech companies can face as they venture abroad. With this in place, tech companies can a peace of mind set up regional headquarters in Singapore.
Singapore’s strategic location
The strategic geographic location of Singapore has enabled it to transform from a small country into the Southeast Asian hub. Singapore is perfectly positioned as an ideal hub for accessing other cost-effective manufacturing countries by being only within a six-hour flight time radius from any other Southeast Asian country.
Corporate tax rate favorable to companies
Singapore has a 17 percent corporate tax rate that is one of the lowest in the world.
Furthermore, new companies that are setting up may also be eligible for tax incentives for the first three consecutive years, a 75% exemption for the first $100,000 of their normal chargeable income and a further 50% tax exemption for taxable income of up to S$100,000.
Political stability, low rates of corruption and transparent public institutions are strategies that drive Singapore to become a trusted partner for companies.
The low-risk economy is supported by sound monetary and fiscal policies along with a stable justice system.
Dynamic and skilled labor force
Singapore has one of the university graduates
and 97.5 percent with the highest literacy rate.
Also Singapore is a hot spot for talented foreign expats working with multiple work permits and visas. Through establishing a Singapore office, technology companies can access talent globally without being geographically limited.