For the past 10 years, the World Bank has ranked Singapore as the easiest country to do business in. This comes as no surprise as the country offers many benefits for corporate entities such as below. Ice Cube Marketing is here to share the State Of Singapore Businesses Infographics below.
1 – 50 Double Taxation Avoidance Agreements
2 – Various Free Trade & Investment Guarantee Agreements
3 – Strong Intellectual Property Laws
Currently, there are nearly 400,000 registered businesses in Singapore mostly comprising of private limited companies (PTE LTD) and sole-proprietorships. Besides having a pro-business regulatory environment, Singapore also attributes its business success as a country to a healthy business culture that promotes both east and west business ideals and progressive thinking in the areas of technology and business education across all industries.
Singapore Business Formation (All Industries Included)
The businesses currently operating in Singapore can be split into 14 major industries, which constitute the bulk of the country’s economy (each industry can be seen in the 2nd section of the above infographic). During 2017, Wholesale Trade and Professional, Scientific, & Technical Activities led the list of newly-formed businesses within the country. This can be attributed to Singapore ’s free trade policies, strategic location (center of major Asian trading routes), and intellectual property laws which have helped to promote technological and educational innovation within the country.
Business Cessation in Singapore
While Singapore may be the easiest country in the world in which to do business, not all businesses succeed here. Such was the case last year when 48,306 businesses within the country ceased to exist. Leading this “failed-business” pack was Wholesale Trade and Transportation & Storage, largely due to the following reasons:
1 – Global Trade War Threat
2 – Higher Competition
3 – Oil Prices
Singapore’s Before-Tax Profits
Higher profit margins are attractive to any business in any industry, which is why there are so many businesses operating in various areas within Singapore. Businesses in Singapore, both foreign & domestic, are able to increase their before-tax and after-tax profit margins because of the country’s business & tax-friendly environment, which offers both before & after tax reliefs to businesses operating within the country, regardless of which industry they happen to operate in.
In 2017, the Financial & Insurance sector within Singapore saw the largest increase in pre-tax profits due to an increased credit cycle and higher insurance premiums and Manufacturing & Wholesale Trade were a distant 2nd & 3rd respectively.
Advertising & Entertainment Expenses
In Singapore, industries like Health Services, Transport & Storage Services, and Wholesale Trade have very small advertising & entertainment expenses equalling less than 1% of their overall costs year after year. On the other hand, other industries operating in Singapore like Information & Communication Services and Accommodations Services showed advertising expenditure of nearly 3% or more in 2017. These figures make perfect sense as industries like Wholesale Trade are built upon B2B relationships and do not require much advertising like the Accommodations Services Industry does to gain and keep customers and clients.
With digital marketing costs being much lower than that of traditional advertising mediums, businesses are able to keep advertising expenses low.
Singapore is appealing to businesses of all shapes & sizes operating across all industries because of its international-business friendly atmosphere, pro-business legislation, and progressive and forward-thinking technology and business education systems.
All information above is presented by Ice Cube Marketing. Ice Cube Marketing is a digital marketing agency in Singapore that helps SMEs grow using digital channels.