Singapore’s social and political impact on foreign businesses

There are multiple external forces that influence a business in many ways. The tax regulations in a country can hinder profits, the values of the mass population may not align with a business causing a rift in work culture, a very traditional population may find it difficult adapting to a new product or service – these external forces are usually uncontrollable and only ascertainable through thorough market research. This may be true for some countries but businesses setting up base in Singapore need not worry about such issues! This article shares a deeper insight on Singapore Social and Political Impact and how it may potentially affect you.

There are many reasons to start a business in Singapore with one of the reasons being its social and political climate making it an ideal country. Singapore is known for its high standard of living, stable democratic governance, emphasis on racial diversity and equality, attractive corporate tax systems and operating the busiest port in the world. Singapore has also established 24 Free Trade Agreements; this makes starting a business in Singapore an almost essential first step to access other opportunities in Asia.

Being a multicultural society, Singapore has a vast variety of different cultures, languages, views and talents. These values can diversify businesses by providing fresh, creative and innovative ideas. Being a fairly Westernised country, conducting business in Singapore is fairly similar to many other countries. Singapore also has a large pool of talent due to its comprehensive education system. Singapore has the highest quality of living in Asia ranking 3rd in purchasing power parity per capita.

Another reason to start a business in Singapore is due to the stability of its political climate. Based on a global survey, Singapore has once again ranked top in Asia as the least corrupt country and 4th globally. Aside from corruption, the government has implemented attractive corporate tax systems to encourage foreign businesses to establish their roots here. Qualified startups are exempted from paying 75% of their corporate tax for three years. Singapore does not have a double tax system so dividends paid out to shareholders are exempted from tax as well.

To further accentuate the advantages of starting a business in Singapore in 2021 – according to Forbes, Singapore is in the list to top 10 safest countries for COVID-19. This lessens the risk of unpredictable external forces that could potentially affect businesses.

Despite all these benefits of starting a business in Singapore, without the proper knowledge and manpower, it would still be tough to grow a business here. However, by partnering with an experienced and established human resource outsourcing company like TalentSpot, there is no need to worry about finding the right talent for your business. At TalentSpot, we cater customised HR services from payroll, recruitment, onboarding and relationship management to ensure your business is able focus on core competencies without worrying about HR processes.

With our highly-trained consultants and up-to-date technology, we give businesses the most value when it comes to their HR needs. Our capabilities extend throughout Asia with headquarters in Singapore, Malaysia, Indonesia, Thailand, the Philippines, Vietnam, Japan and the Greater China region.