3 reasons why do business in Singapore
Why are you doing business in Singapore? Is it because of low taxes? These are questions I often receive. Corporate and personal income taxes are indeed often cheaper than in Japan but on the other hand, labor costs, office rental fees, and compensation for specialists tend to be higher. Even for individuals, rent, living expenses, and children’s education are far higher than in Japan, so depending on the taxable amount, there could be a disadvantage.
But in spite of these let me provide a background why I’ve chosen to setup business in Singapore.
・Overall population of ASEAN (Association of Southeast Asian Nations) will soon exceed 700 million and further economic growth is expected
・By 2030, China is forecasted to overtake the US in GDP terms, taking the number one spot
・By 2040, India is forecasted to overtake China in overall population and GDP
・By 2050, Nigeria is forecasted to overtake the United States in population size to become the third largest in the world, while African countries are expected to achieve remarkable economic growth
With these emerging trends, it is vital to quickly build businesses with Southeast Asia, China, India, and Africa.
In this respect, it is said that 75% of Singaporeans are of Chinese descent and about 10% are of Indian descent, and so it is easy to do business with China and India not only geographically but also culturally and politically. Of course if you’re aiming for Africa, Singapore is closer than Japan, and because it is located in the heart of Southeast Asia, it has strong ties with ASEAN countries, and with it goes easier access to information and personal connections. For companies based in Japan, wherein the shortage of IT talents are expected to accelerate in the future, being able to quickly collaborate with partners who have the IT skills in demand will be one of the most important business challenges. Our business is to accompany such companies toward their goals, and we believe that Singapore is the best location to accomplish that. This is the first reason.
・Many Western and Oceania companies have moved their Asia headquarters from Tokyo to Singapore
・Many startups are flocking into Singapore, which has been the top 1 in terms of business environment ranking for 10 consecutive years, and is continuing to stay at the top
This dynamic creates business opportunities, which is the second reason why I’ve decided to establish business here.
The third reason is the speed of business development. Unlike Japan, Singapore only has a small population, so organizations don’t have many hierarchies. For this reason, decision makers could just have a quick discussion, and decisions could be made immediately, allowing for a speedy progress. Likewise, decisions to stop also come in quick, but since the world is now moving at a fast pace, I feel that being able to move at such a tempo is an advantage in itself.
The 3 points mentioned above are the main reasons why we do business in Singapore, but there were also other details considered. Should you wish to know more, please don’t hesitate to contact us. We would be more than glad to discuss with you.
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