When looking at economic performance in the APAC region, you will likely come across Singapore's economy, which has the highest gross domestic product per capita in the area. So, what makes the Singapore economy so unique, and why do businesses continue to flock there?
Strategic location
Singapore is located on several critical global trading routes, which has not gone unnoticed by local and international businesses. The country is recognised as a global trading and logistics hub with excellent deepwater ports, colossal infrastructure investment and offering access to the broader APAC region. Moreover, many businesses use Singapore as a stepping stone to other Asia-Pacific countries, thereby cementing the country's position as a business centre.
Business-friendly regulations
There is no doubt that the Singapore government recognises the value of local, regional and international businesses. Creating a business-friendly environment with low taxes, transparent regulations, strong intellectual property protection, and efficient government services is certainly paying dividends. As a result, the country consistently ranks in the global competitiveness league table's higher echelons, attracting more foreign investment and strengthening a self-fulfilling prophecy.
Hugely diversified economy
When you mention Singapore trade, there is a natural draw towards the financial sector, but Singapore offers much more than this. The diversified economy takes in finance, trade, logistics, manufacturing and technology but, above all, a willingness to adapt to emerging markets and new business trends. This is perhaps personified by the interest in cryptocurrency and the ongoing battle with Hong Kong to become a regional and global hub.
Flexible workforce
The Singapore workforce is flexible, highly skilled and highly educated, all resulting from the government's focus on education and human development. While the workplace experience covers a range of topics, the emphasis on technology is the future for many. Start-ups and established technology companies can tap into this highly educated workforce, reducing training expenses and "hitting the ground running".
Forward-thinking innovation
While all economies require a degree of forward-thinking and innovation, Singapore epitomises this approach for many. As we touched on above, the country is looking to become the global hub for cryptocurrency as well as biotechnology, FinTech and a range of associated digital services. Historically, many governments worldwide tend to be behind the curve with new industries, but the Singapore government is different. Forward-thinking and innovative, politicians work hand-in-hand with businesses to create a unique environment.
Stable government
It is scarce that you hear about any government dissent in Singapore, which can be a godsend for many businesses. Political stability, strong governance and a clearly defined rule of law ensure that all parties, consumers and businesses know how the land lies. Moreover, while some governments will focus on the short-term economic outlook, the Singapore authorities have a long-term vision and short-term targets. This creates a stable yet innovative business environment that attracts local and international operators to Singapore.
Conclusion
Many people are aware of the innovative and stable nature of the Singapore government, but only some dig deeper to appreciate the consequences. Any business operating in a clearly defined regulatory environment against a sound economic background would benefit in the short, medium and long term. That, in a nutshell, is why Singapore is so popular and consistently delivers the highest gross domestic productper capita in the APAC region.