Singapore’s economy has been through several crises – Asian Financial Crisis in 1997, 2003 SARS, 2008 Global Financial Crisis, and more recently, the ongoing COVID-19 outbreak. Despite the economic crisis, Singapore has stood strong and positioned herself as a financial hub with a robust economy in the Asia Pacific region. In 2021, Singapore took the first spot in the Asia Pacific region Fintech Rankings. During the same year, Singapore’s Gross Domestic Product (GDP) has increased by 7.6%, which is a significant increase considering the 4.1% contraction in 2020 due to COVID-19.
The largest industry in Singapore is the manufacturing sector. It contributes 20% to 25% of the annual GDP. The manufacturing industry includes biomedical sciences, chemicals, electronics, logistics and transport engineering. Following closely behind is the financial service industry which consists of over 200 banks.
Singapore’s Revenue and Debts
In Budget 2022, the government announced a projected revenue of $81.75 billion, $1.39 billion higher than 2021’s estimate. The bulk of the revenue comes from taxes (income tax, property tax, custom duties, and GST) while the remaining is mainly made up of fines, license fees, permit fees, and interest earned.
As of 2021 Q4, Singapore has an outstanding public debt of $777,957 million which comprises Singapore Government Securities (SGS), treasury bills, Singapore Savings Bonds (SSB), etc. However, this amount is not a precise representation of Singapore’s financial standing as a portion of the debt is being used for investments which will ultimately contribute to the revenue.
Businesses in Singapore
Potential business owners tend to choose to start their business in Singapore due to it being strategically located in the heart of Southeast Asia and a fixed corporation tax rate of 17%, with exemptions available. The country’s Changi International Airport also has over 100 airlines in operation alongside major logistic firms such as FedEx. Not only that, Singapore’s seaports are successful in their own ways – for the past two decades, Singapore’s seaport infrastructure has been at the top of the list among her Asia counterparts.
Adding on to the ease of connectivity from Singapore to other locations, the country is also known to be start-up friendly. The government has started an initiative, Startup SG, to provide entrepreneurs a platform to connect with investors and connect themselves to the entrepreneurial network. Within Startup SG, there are six different pillars that serve different purposes. Two of which are startup grants – Startup SG Founder and Startup SG Tech.
With an endless list of reasons why Singapore is the best place to start your business, interested individuals should contact us via our contact form, email (contact@fcg.com.sg), or WhatsApp (+65 8792 2664) to understand how we can help you achieve your goals!