Entrepreneurial activity is the backbone of any economy. It is the spark that ignites innovation, growth, and progress. And to encourage entrepreneurship, a government must provide aid and backing to businesses. This is what Singapore has been doing for many years, and it has yielded impressive results.
Singapore is dubbed the “Gateway to Asia” because of its strategic location and its role as a business hub in Southeast Asia. The city-state’s location makes it much easier for companies to reach other Asian markets such as China and India. This allows companies to take advantage of the high growth potential in these markets and tap into a new customer base.
Moreover, Singapore has a highly developed market economy, with a per capita GDP higher than most developed countries. This is because the Singaporean government has supported businesses and entrepreneurship by providing various initiatives and schemes to help companies to grow.
Here are some of the ways that the Singaporean government helps businesses to get started and grow:
Entrepreneurship Grants
The government offers various grants and support programs for businesses of all sizes by providing financial assistance to new or young companies and helping them grow. An entrepreneur grant in Singapore is designed to promote business growth and expansion that will significantly benefit the economy. This grant provides startups the capital they need to start their business and companies the budgeting they require for further developing their business.
Some of these grants focus on developing innovative and unique products or services, hiring new employees, or expanding into new markets. Others are targeted at businesses that contribute to the industry’s upgrading, such as those focusing on environmental sustainability or productivity improvements. This allows companies to be more agile in their approach and have a broader impact on the economy.
Business-friendly Policies
Singapore has been consistently ranked as one of the most business-friendly countries in the world because of its ease of doing business for entrepreneurs and pro-enterprise policies. Moreover, their legal frameworks are designed to be simple and easy to understand, making it easier for companies to comply with local laws and regulations.
Digitized Registration Process
Singapore offers businesses the efficiency of their digitized registration process for new businesses. The process involves the Business Profile and the One-Stop Business Portal, which makes it easier for businesses to register with the government and start operating.
Intellectual Property Laws
In addition, Singapore’s intellectual property (IP) laws provide solid protection for businesses from theft or misuse of their IPs which is essential for businesses that rely heavily on research and development. This helps to create a conducive environment for businesses to innovate and develop new products and services without the worry of having their IPs stolen or copied.
Tax Incentives
The government offers incentives such as a low corporate tax rate and industry-specific tax exemptions to encourage businesses to start and grow in Singapore. This makes Singapore an attractive place to do business and helps to foster a strong economy. Moreover, the government has a number of programs to help businesses with their cash flow, such as the Productivity and Innovation Credit (PIC) Scheme. The PIC Scheme allows businesses to claim a tax deduction or allowance for investments in productivity-enhancing activities. This includes expenses such as training, software, and hardware. The scheme is designed to encourage businesses to invest in productivity-enhancing activities, ultimately improving their competitiveness.
Additionally, businesses can enjoy double tax relief arrangements that Singapore has with other countries. This helps to reduce the overall tax burden for companies and makes Singapore an attractive location for setting up regional headquarters or operations, especially for companies with a global presence.
Free Trade Agreements
The Singaporean government has also signed several free trade agreements (FTA) with various countries in order to promote trade and investment. These FTAs provide companies with preferential treatment in terms of tariffs and other trade barriers, making it easier for them to export their products and services to Singapore’s FTA partners.
Some of the FTAs that Singapore has signed include the Comprehensive Economic Partnership Agreement (CEPA) with India, the China-Singapore Free Trade Agreement (CSFTA), and the Japan-Singapore Economic Partnership Agreement (JSEPA). These agreements help businesses based in Singapore to further expand their operations into new markets and increase their competitiveness.
The Singaporean government has been a big backer of businesses in the country, providing aid through grants, loans, and other support. Through this support, local and foreign businesses have been able to thrive in Singapore, making their country one of the most attractive places to do business worldwide.
