Singapore’s story is one of grit and resilience. The Southeast Asian country went from being rejected and kicked out of Malaysia to becoming one of the most prosperous countries in not only Asia but the world.
In this piece, we’ll go over four major reasons why Singapore continues to grow and solidify its position as one of the most innovative places in the world. Are you ready to learn what can be achieved when people put differences aside to work together?
Strong Institutions and Rule of Law
The last century saw the rise of countries in Asia, Africa, and South America. These countries were finally allowed to lead themselves after decades of colonial rule. Many of these countries quickly fell into civil war as they tried to find their footing on the global stage.
There are massive growth opportunities in these emerging economies, but global corporations and governments are more interested in taking minerals out of the ground without adding significant value to the local communities and people. Some of the reasons why this is the case include racism, xenophobia, and lack of rule of law.
Singapore worked on building a focused and hardworking country with strong institutions. Global investors and states are scared to invest in certain countries because the government and people in power can “nationalize” your assets or frustrate you until you sell your business for “pennies on the dollar.” Singapore’s respect for the rule of law and strong institutions have made it a haven for banking, finance, technology, foreign exchange, and more. For example, forex trading in Singapore has grown considerably over the last few years, with many considering this country to be the next great foreign exchange (forex or FX) trading center.
Governmental Support
The Singaporean government has not only talked about supporting the country’s competitive drive globally. They have actively led and motivated the growth. A couple of decades ago, if a global company wanted to set up an Asian HQ, most considered Hong Kong, Tokyo, and Macau. But nowadays, Singapore is the go-to for many companies and countries. The government uses grants and financial support to attract the most innovative companies and talent. The country also has a favorable reputation globally and is interconnected with major regional and global superpowers like China, the United States of America, and Japan.
The Singaporean government also instituted a handful of investor-friendly policies. These policies change and evolve as the government works to keep it relevant and competitive in the global market. Corporate taxation in Singapore is easy, fair, and competitive. Except for tax havens that offer next to zero corporate tax, Singapore is one of the best options for companies looking to get their global tax bill in order. There are almost 40,000 businesses with headquarters in Singapore, with more than 3,000 being the regional headquarters of multinational companies.
Open Economy & Network Effect
Creating an open market economy takes a lot of effort, and Singapore did all the right things over the last few decades to ensure that its economy remains open and receptive to global talent and assets. Alongside some of the lowest global tariff regimes, Singapore is not shy about instituting free trade agreements (FTA). At the time of writing, Singapore had 23 FTAs with these, including multilateral and bilateral agreements. When we talk about innovation, most people imagine fancy tech and robots. The Singaporean government understands that innovation is necessary in instituting the right economic policies.
Singapore built world-class infrastructure, made its tax regime competitive, and developed a conducive environment for global businesses. When the first corporations moved into the country and set up shop, this attracted other companies who wanted to take advantage of the same opportunities. It’s similar to stores selling similar things being close to each other. Most global companies now need representation in Singapore because not doing so can spell doom for them. As more people and companies realize the impact of doing business in Singapore, this drives others to consider the country a viable option, leading to a positive business cycle.
Educated and Innovative Workforce
During Singapore’s early days, much of its effort was invested in building universities that could compete on the global stage. While that was being done, thousands of bright young Singaporeans went abroad to access the best education of the time. They returned home and helped build Singapore’s enviable education system. You do not build one of the world’s most innovative companies without having the most innovative people in the world. When companies set up in Singapore, they are confident they will find the right talent to fill the roles and do the work diligently.
Alternatively, no country can truly be 100% reliant on its local workforce. Singapore makes it easy for the best talent from across the world to move to the city-state. There are countries with great economies, competitive talent, and excellent quality of life, but many of them make talent mobility hard. The USA is a prime example of policies making it hard for talent to move freely for work. You can set up your innovative business in this East Asian country, access the best local talent, and easily bring in global talent to help make your business operate better.
Innovative City
The foreign exchange market is global by design, attracting some of the brightest minds in the world. Many investors and industry stakeholders are beginning to look “eastward,” and Singapore has what it takes to become the next major foreign exchange hub. Forex trading platforms are comfortable doing business in this country. Alongside all the perks discussed in this piece, this innovative city-state removes a large chunk of the guesswork associated with setting up a global business. There’s no better time to be a forex trader and innovator in Asia than now.
Featured image credit: image via Unsplash
