As an important entry point into the ASEAN market, Singapore has made a name for itself as one of Asia’s leading business hubs. Its advantageous location, pro-business atmosphere, and strong infrastructure make it the perfect starting point for businesses looking to expand into the vibrant ASEAN area.
This article explores why Singapore is the ideal gateway to the ASEAN market, the benefits of using Singapore as a base for ASEAN market entry, its trade agreements and economic partnerships in ASEAN, key sectors for investment and growth, and how to set up a business in Singapore to enter the ASEAN market.
Why Singapore is the Ideal Gateway to the ASEAN Market?
Strategic Location
Singapore is ideally situated to facilitate company access to the ASEAN market since it sits at the intersection of several important global trade routes. It offers convenient connectivity to numerous important Asian markets, all within a seven-hour flight radius.
Pro-Business Environment
When it comes to business easiness, transparency, and competitiveness, Singapore routinely scores highly in international rankings. International enterprises are drawn to the government due to its pro-business policies, low corporate tax rates, and effective regulatory structure.
Top-Notch Infrastructure
The city-state has cutting-edge ports, airports, and telecommunications networks, among other examples of its first-rate infrastructure. Changi Airport, one of the world’s best airports, and the Port of Singapore, one of the busiest in the world, facilitate seamless trade and logistics.
Skilled Workforce
Singapore’s outstanding education system and emphasis on ongoing professional development have resulted in a highly competent and knowledgeable workforce. That way, companies in a variety of industries will always have access to excellent personnel.
Political Stability
Singapore’s political stability, strong rule of law, and efficient governance provide a secure environment for businesses to operate. The country’s robust legal system and strong intellectual property protection are highly valued by businesses.
Benefits of Using Singapore as a Base for ASEAN Market Entry
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- Access to ASEAN Free Trade Area (AFTA): By setting up in Singapore, businesses can benefit from the ASEAN Free Trade Area, which reduces tariffs and promotes the free flow of goods, services, and investments among ASEAN countries.
- Regional Headquarters: Singapore is a popular choice for regional headquarters for international firms because of its advantageous location and welcoming business community. This allows for better coordination and management of operations across the ASEAN region.
- Advanced Financial Services: With a strong banking system and a broad array of financial services, Singapore is a prominent global financial hub. Companies have access to a range of professional services, financial products, and funding sources.
- Innovation and Technology Hub: With robust government support for research and development as well as a thriving startup ecosystem, Singapore is at the forefront of innovation and technology. This encourages creativity and offers chances for cooperation and development.
- High Quality of Life: Singapore attracts ex-pats and their families because of its stable and driven workforce, great healthcare, education, and safety systems, as well as its high standard of life.
Singapore’s Trade Agreements and Economic Partnerships in ASEAN
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- ASEAN Economic Community (AEC): An important component of the ASEAN Economic Community is Singapore, which seeks to unite the region’s markets and production bases to facilitate the free flow of capital, skilled labour, and goods between ASEAN nations.
- Free Trade Agreements (FTAs): Singapore boasts a vast network of FTAs with various countries and regions, including the ASEAN Free Trade Area, which enhances market access and reduces trade barriers. These agreements provide Singapore-based companies with preferential access to important markets.
- Regional Comprehensive Economic Partnership (RCEP): As a member of the RCEP, Singapore benefits from the world’s largest trade agreement, covering nearly one-third of the global economy. Opportunities for trade and investment both inside and outside of the ASEAN region are significantly improved by this agreement.
- Bilateral Trade Agreements: Singapore has also established numerous bilateral trade agreements with individual ASEAN countries, further facilitating trade and investment flows. Tariff reductions, investment safeguards, and improved sectoral collaboration are frequently included in these accords.
Key Sectors for Investment and Growth in Singapore
Financial Services
The financial industry in Singapore is among the most developed and competitive worldwide. The country is a hub for banking, insurance, asset management, and fintech innovation, attracting significant investments.
Information and Communications Technology (ICT)
With a focus on digital transformation and smart city initiatives, Singapore is a leader in ICT. There are several chances for this industry to expand due to government assistance for ICT innovation and development.
Biomedical Sciences
The biomedical sciences sector in Singapore is thriving, driven by strong government support, world-class research facilities, and a skilled workforce. The country is a hub for pharmaceutical, biotechnology, and medical technology companies.
Advanced Manufacturing
Singapore’s advanced manufacturing sector focuses on high-value, technology-intensive activities. To promote productivity and innovation, the nation is investing in Industry 4.0 technologies, including robotics, AI, and the Internet of Things (IoT).
Logistics and Supply Chain Management
Singapore is a significant centre for logistics and supply chain management because of its advantageous location and top-notch infrastructure. The nation is a perfect starting point for logistics operations because of its modern ports and airports, as well as its accessibility to international markets.
How to register a firm in Singapore to Enter the ASEAN Market?
Select a Business Structure
Make a decision regarding the best business structure for your enterprise, such as a sole proprietorship, partnership, or private limited company. For international firms, the most well-known and favoured entity is the private limited company.
Enrol Your Firm
Register your company with the Accounting and Corporate Regulatory Authority (ACRA). Choosing a company name, filing the required paperwork, and paying the registration fee are all part of this process. It’s an easy process that you may finish online.
Establish a Business Bank Account
Following the registration of your company, create a corporate bank account at a nearby financial institution. A variety of financial services and products are available to support the operations of your business through Singapore’s robust banking system.
Obtain the Licenses and Permits Necessary
Depending on your line of work, you might need to apply for specific licenses and permits from the relevant authorities. Make sure you abide by all legal regulations in order to conduct business lawfully in Singapore.
Secure Office Space
You can select from a range of office spaces, such as coworking spaces, serviced offices, and regular office rents, based on your company’s needs. While choosing your office space, take amenities, location, and cost into account.
Conclusion
With its advantageous position, business-friendly atmosphere, first-rate infrastructure, and solid economic ties, Singapore is the perfect entry point into the ASEAN market. Businesses can take use of Singapore’s advantages to enter the vibrant and expanding ASEAN market by establishing a presence there. Singapore provides a plethora of prospects for expansion and prosperity in the region, catering to both startups and large corporations.
Get in touch with OnDemand International if you need help registering your company in Singapore or if you need support with other business-related services. Our professionals can help you create a strong online presence in the ASEAN market and can lead you through the process.
FAQ’s
Singapore is a great starting point for businesses wishing to enter the ASEAN market because of its advantageous location, welcoming business community, and strong infrastructure. Its status as a gateway is further strengthened by its trade agreements and connectivity to important Asian markets.
Benefits include access to the ASEAN Free Trade Area, advanced financial services, a skilled workforce, political stability, and a high quality of life. Many global companies also have their regional headquarters in Singapore.
Key sectors include financial services, information and communications technology (ICT), biomedical sciences, advanced manufacturing, and logistics and supply chain management.
Choosing a business structure, opening a corporate bank account, registering your firm with ACRA, acquiring the required licenses and permissions, employing staff, finding office space, and creating a marketing plan are some of the steps.
Businesses can profit from Singapore’s low corporate tax rate, several tax incentives, and exemptions. Moreover, there are no dividend withholding taxes or capital gains taxes.
