Most Cost-Competitive Place Essay

Singapore is ranked 1st for its easiness of making concern in Asia by both The World Bank Group ( Economy Rankings: Doing Business, The World Bank Group 2009 ) and PricewaterhouseCoopers ( Cities of chance: Business-readiness indexs for the twenty-first century, PricewaterhouseCoopers 2007 ) . Singapore was besides ranked foremost for being the most cost-competitive topographic point for concern by KPMG ( KPMG Competitive Alternatives Study 2006 ) .

Singapore ‘s dynamic economic system is fueled by a genuinely unfastened policy towards concerns, doing it one of the most business-friendly states today. It systematically ranks high on planetary and regional rankings for its attractive corporate revenue enhancement rates, easiness of engaging and well-developed substructure.

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The state ‘s stable political landscape nowadayss an attractive low hazard appraisal to many international concern operations. In fact, Singapore attracts both MNCs and start-ups likewise. These concerns have benefited from the highly-skilled work force, low revenue enhancement governments and trial bedclothes chances.

For enterprisers, the concern friendly policies, simple application processs and even authorities support, makes it truly easy to register and get down a concern here.

Foreigninvestorsand enterprisers are puting up concerns in Singapore because it is a room access to about all of the Asiatic markets.

Factors

What Singapore Has to Offer

Strategic Location

Singapore is easy accessible by air or by sea. Singapore ‘s port is one of the busiest in the universe. The Changi Airport allows you to link to over 180 metropoliss worldwide. Integrating a Singapore concern entity is a smart move since the location allows you an easy geographic entree to all prime Asiatic markets.

Diverse Cultures

Puting up a concern in Singapore allows you to provide to many civilizations, and therefore, a wider market.

Stable Legal System

Singapore has an efficient, transparent and sound legal system.

Good Administration

Singapore has a stable, matter-of-fact, rational and proactive authorities. You can be assured that puting up a Singapore concern entity will non affect red-tape or bureaucratic holds.

Broad Immigration Policies

The broad Singapore in-migration policies allow for an easy resettlement of aliens who want to put up their concerns in Singapore.

Pro-business ambiance

Singapore is known for its attractive strategies for foreign enterprisers. Puting up and making concern in Singapore is easy. It will merely take you 1 to 2 yearss to integrate a concern in Singapore.

Attractive Tax Schemes

Singapore offers low effectual personal and corporatetaxrates. The Personal income revenue enhancement has a grade system that starts from 3.5 % and up to 20 % for those withincomeabove $ S320,000.

Effective corporate revenue enhancement rate for Singapore private limited companies with net incomes of up to S $ 300,000 per annum is less than 9 % . While those withprofitsof up to S $ 300,000 have a 17 % revenue enhancement rate.

Singapore ‘s single-tier revenue enhancement policy provides that one time the income has been taxed at the corporate degree, the dividends can be dispersed to stockholders free of revenue enhancement.

Furthermore, Singapore has one of the lowest Goods andServicesTax ( GST ) rates, which is merely 7 % .

Infrastructure

The substructure of Singapore is extremely advanced. Singapore ‘s physical and research substructure helps do puting up your Singapore concern uncomplicated.

Free Trade Agreements

FTA ‘s or Free Trade Agreements allows you and your concern to bask benefits such as duty grants, sole entree to certain sectors, velocity market entry and Intellectual Property ( IP ) protection.

Work Force

The work-force of Singapore is competitory, productive and meets first criterions. Its work-force is known for its high educational degree, first-class end product, proficiency, diligence, professionalism and technology-savvy civilization.

To provide to people who wish to migrate, Singapore presents different options for migration. These are:

  1. Migration to Singapore utilizing theEmployment Pass ( EP ) ;
  2. Migration to Singapore utilizing theEntrePass ( Entrepreneur Pass ) ;
  3. Migration to Singapore utilizing the MAS Scheme ; and
  4. Migration to Singapore utilizing the EDB Scheme.

Political

Strengths

  • Singapore enjoys a stable political system, following the state ‘s 2nd alteration of leading in 40 old ages, with Lee Hsien Loong – boy of the state ‘s initiation male parent Lee Kuan Yew – taking over as premier curate in 2004.
  • Official promises have been made to eliminate Singapore ‘s repute as being an overprotective nanny-state, with attempts to heighten freedom of look.

Failings

  • Singapore is non a decently functioning democracy. The governing People ‘s Action Party ( PAP ) has all but two seats in parliament, and the resistance is restricted from runing through tight control over political argument and frequent usage of libel Torahs.
  • The authorities has yet to better the state of affairs for the less good off in Singapore, with a lifting pay spread between the top earners and the lowest paid.

Opportunities

  • Lee is turn outing himself a capable leader, traveling off from the shadow of his male parent by taking on the function of finance curate and repeatedly naming for more openness.
  • Singapore is taking its regional neighbors in subscribing free trade understandings. Increased regional integrating is likely to give the island more influence in the part.

Menaces

  • There are frights that Singapore ‘s foreign policy alliance with the US will do the bantam city state to go a mark for panic onslaughts launched by Muslim extremists.
  • Singapore ‘s close relationship with the US, with military ties spread outing significantly, may annoy other Asiatic states. This will do it harder to set up closer regional security ties.

Economic

Strengths

  • Singapore controls pecuniary policy by pull offing the exchange rate against an unrevealed basket of currencies. This has accommodated the reappraisal of the Chinese kwai with small instability amid continued gradual grasp of the Singapore dollar.
  • Singapore ‘s current history excess remains over 20 % of GDP and its external fundss are in good form. This is reflected by the universe ‘s credit-rating bureaus, which continue to present Singapore top Markss for external strength.

Failings

  • Volatile economic end product remains a job given that the bantam, trade-dependent economic system is so open to planetary tendencies in demand for electronic goods, which account for around half of Singapore ‘s non-oil exports.
  • Singapore faces a figure of long-run economic jobs. Productivity is low, competition from low-priced neighbouring states is on the addition and structural unemployment is puting a turning load on the economic system.

Opportunities

  • In the face of regional challenges for both its exports and investing, the authorities is promoting economic variegation to hike the state ‘s fight. New countries being promoted are biomedical scientific disciplines, touristry, medical and fiscal services, every bit good as programs to develop two casino resorts.

Menaces

  • There is important province engagement in the private sector, with the authorities declining to unwrap the assets of the Government of Singapore Investment Corp ( GIC ) . The GIC is one of the universe ‘s largest institutional investors, pull offing foreign exchange militias and authorities financess worth over US $ 100bn. Without increased openness, investor assurance could be damaged and domestic growing hindered.
  • High labor costs will go on to be an issue every bit long as inexpensive labor in China continues to undersell Singapore ‘s fight.

Business Enviornment

Strengths

  • Singapore is the least corrupt state in Asia, harmonizing to Transparency International, a Berlin-based anti-corruption watchdog.
  • Strikes and labour protests will stay rare, if non absent, in Singapore for the foreseeable hereafter due to the authorities ‘s bossy insisting on a business-friendly environment. Policymakers will go on to utilize bumbling tactics to guarantee the brotherhoods stay plastic.
  • Industry deregulating is advanced in the oil sector, with a mature competitory landscape and a good location for regional refinement and petrochemicals capacity.

Failings

  • Political and economic stableness has come at a monetary value. The Singapore authorities censors the media and limits the distribution of foreign publications. The bench ‘s record of siding with outstanding politicians calls into inquiry the true extent of its neutrality in any contract difference affecting a politically sensitive issue.
  • Competition from other Asiatic provinces in refinement and petrochemicals is lifting, seting force per unit area on borders and returns.

Opportunities

  • Due to the deficiency of advancement at the World Trade Organisation ( WTO ) , the Singaporean authorities has committed the state to subscribe 19 bilateral free-trade understandings.
  • Singapore has one of the best concern runing environments in Asia. This is reflected by Singapore ‘s 2nd topographic point in an Index of Economic Freedom conference tabular array complied by the Heritage Foundation and the Wall Street Journal.
  • Strong growing in regional oil and chemicals demand provides range for capacity enlargement.

Menaces

  • The hazard of a terrorist onslaught in Singapore, which has increased since the Bali bombardments in neighboring Indonesia in 2002 and 2005, is a major hindrance to foreign investors, who are concerned about the spread of Islamic terrorists to Singapore.
  • China is now seen as the cardinal regional market and much of IOC downstream oil and petrochemicals FDI may be diverted off from Singapore.

Social

The societal strengths of Singapore have been demonstrated by an educational system that produces a knowing work force to pull foreign direct investing ( FDI ) . Not merely developing its ain pool of local endowments, Singapore besides recruits foreign endowments to work in both the populace and private sectors. Most FDI in Singapore was from Multi-national Corporations ( MNCs ) and foreign Small and Medium Enterprises ( SMEs ) , which are familiar with the operations of e-Government. Ultimately, these corporations will prosecute in e-Services to cut costs and to better their operations. They need employees with IT proficiency and the ability to larn fast.

Technology

A tech-savvy population and a knowing IT labour force can take part in e-Government undertakings and can utilize these services efficaciously. The Singaporean authorities has introduced the National IT Literacy Program fiting.workers, housewifes and senior citizens. with basic computing machine and Internet accomplishments ( Tran 2003 ; Hu 2002 ) . The e-Ambassador plan has engaged famous persons to pull participants ( Tran 2003 ) . Non-IT trained civil retainers can go to preparation Sessionss offered by the Civil College or the Infocomm Development Authority of Singapore to get the necessary IT cognition and accomplishments to better their public presentation. Cipher is excluded from this e-Project. The Personal computer Re-use Scheme, initiated by the National Trade Union Cooperation, has provided low-cost computing machines ( either to sell or lease ) to about 2,000 destitute households in Singapore ( Raoul 2001 ) . .A web of Internet-enabled terminuss at civic locations. has besides been set up so that the populace can easy and handily search the Internet ( Hu 2002 ) . Technologically, Singapore has a hi-tech based economic system. Wellprepared substructure and the latest engineering contribute to the rapid development and deployment of e-Services. Government bureaus can portion resources and services such as.payment, hallmark and informations exchange. that are.built-once, reuse-always. by using available IT applications ( Faculty of Business and Economics – Research Committee 2004: 2 ) . As mentioned antecedently, security issues are besides received much attending from the authorities.

E-GOVERNMENT IN SINGAPORE.A SWOT AND PEST ANALYSIS

118 ASIA-PACIFIC SOCIAL SCIENCE REVIEW

Last but non least, invention can non be omitted in a knowledge-based economic system with a web-based authorities. It is argued that.a spirit of invention. is the key to the success of states every bit good as to organisations ( PS21 Office 2001 ) . Technology, IT, ICT or other innovations become outdated rapidly. Thus, continual invention and creativeness for better merchandises and procedures helps organisations and states tackle the jobs of disused engineering. Lambe remarks that.Singapore.s invention certificates are rather sound. ( 2002: 3 ) . For illustration, Raybould ( undated ) considers PS21 a merchandise of invention of Singapore. Another illustration is the eCitizen Portal which helped Singapore win the Stockholm Challenge award in 2002 for excellence in utilizing ICT to profit the community.

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