19 Feb 2019 Singapore: The Ideal Place for Israeli Companies to Expand Their Businesses
Singapore may be a small country in Southeast Asia, but it is one of the wealthiest and most advanced nations in the world in terms of education, entertainment, technology, tourism, healthcare, transport, trade, and finance. This city-state has a lot to offer, especially to business leaders and investors who are looking for an ideal location to expand their business to this region.
Ranked by The Economist Intelligence Unit as the world’s most investor-friendly location from 2009 to 2018, Singapore has attracted multinational companies from various parts of the globe to set-up their headquarters in the Lion City with the hope of successfully establishing their mark in the global arena. Owners of Israeli companies, who intend to expand their business, should consider setting up a presence in Singapore or building partnerships with Singapore for the following reasons:
Starting a Business is a Breeze
In the Doing Business data by the World Bank in 2017, Singapore has been ranked as the second-best country to do business in the world. As long as the necessary documents are completed, it only takes a day for any business owner, local or foreigner, to start a company and operate in this state city.
Singapore’s business application process is much faster even when compared with many countries that are known internationally as business hubs. In addition to an already simple and efficient system, Singapore also offers an online application scheme wherein businesses can readily apply and submit documents through the Internet.
Remarkable Talent Pool
Singapore provides a strong, talented, multi-cultural, and highly educated workforce. Their universities and polytechnic colleges have produced and are continuously producing highly-skilled graduates of engineers and other professionals every year. Note that this city-state ranked first in the world in terms of Human Capital Index in 2018 as reported by the World Bank.
Apart from having access to Singapore’s local talent pool, Israeli companies also have the advantage of sourcing their manpower from people of different nationalities and expertise when they choose to do business here thanks to Singapore’s open immigration policy. Given that English is the main working language in the country, foreign companies can easily operate because barriers to communication would be practically non-existent.
Business-Friendly Environment
Given Singapore’s history and current environment, the country offers businesses the best of the Asian and Western worlds. Even though the city-state is in Southeast Asia, Israeli firms can readily adjust to their business climate. Since Singapore used to be under British rule, its financial structure is highly similar to what is existing in the United Kingdom and the United States.
Singapore has consistently received praises from internationally recognized economic institutions and organizations because of its favourable business condition. Such a business-friendly environment can help Israeli companies thrive and reach their fullest potential. Some of the most notable accolades obtained by the Lion City proving its worth as a prominent business centre in Asia include the following:
- Ranked first in the Asia Pacific and the world in terms of Business Environment by The Economist Intelligence Unit
- Ranked first in the world in the Human Capital Index 2018 by the World Bank
- Ranked first in Asia in the Rule of Law Index 2018 by the World Justice Project
- Ranked second in the world in the Economic Freedom Index 2018 by the Heritage Foundation
- Ranked second in the world for Global Competitiveness by the World Economic Forum
- Ranked third in the world in the IMD World Competitiveness Yearbook 2018
- Ranked 6th in the world for having the least corrupt economy in 2017 as measured by the Transparency International
Strategic Location and Remarkable Logistics Infrastructure
Position-wise, Singapore is at the advantage as it is in the centre of Southeast Asia and relatively close to several promising markets in the region. Israeli-owned businesses in Singapore can readily reach their target countries in Asia whether by land, air or sea.
Note that over a hundred airline carriers traveling to more than 300 cities and 80 countries are being served by Singapore’s Changi International Airport. Despite the airport’s heavy load, it has managed to maintain its standing as the best airport in the world which is a testament to Singapore’s commitment to be a global leader.
Israeli companies that rely heavily on maritime trade will undoubtedly prosper in this city-state. The port of Singapore is ranked as the leading maritime capital of the world as well as the second-busiest port in the world with regard to total shipping tonnage.
Attractive Business Incentives
Unlike other countries that try to attract foreign investments but are still making business owners jump through hoops, Singapore is promoting foreign multinational companies to set-up their regional headquarters in the country by offering numerous incentives.
Israeli companies based in Singapore also have the opportunity to take advantage of the country’s network of numerous Double Taxation Avoidance Agreements as well as Singapore’s many investment guarantee and free trade agreements.
On top of that, the Singapore Israel Industrial Research and Development Foundation also offer co-funding support through government funding for SMEs.
The items above are just some of the many reasons why this wealthy state city in Southeast Asia is the ideal setting for Israeli companies and other foreign businesses to expand their businesses and grow their investments to the fullest. In a nutshell, the value of foreign direct business inflows in Singapore is steadily growing every year because the country has a long-proven record of economic growth, coupled with the right and stable business environment that are advantageous to commercial ventures targeting the global market.