Being a market-driven economy that is entirely pegged on forces of supply and demand, the Singaporean economy has grown exponentially over the years. Other factors that play a part in this include having low or no corruption, good businesses support systems, and tax incentives offered to investors. Her forces of economic growth are dependent on exports in electronics, chemicals, manufacturing, and service industries. This provides a conducive atmosphere for businesses both multinational and local alike which further boost its potential future growth. This has impacted businesses in the “Asian tiger” economy through the following ways:
The emergence of multinational companies wanting to invest in the country has enabled the rise of a multitalented workforce. There is a myriad of talents from various other countries which has greatly improved the quality of work done as well as the overall output. This, coupled with friendly migration policies, has drawn individuals from a wide pool to contribute to growing business entities within Singapore. It also brings in diversity and professionalism within the work environment. Most people from all over the world have been visiting the One Visa Pte webpage to apply for migration documents.
Communication and Infrastructure
Accelerated growth in communication and infrastructure facilities within all of the key sectors including banking has allowed for less time and money-consuming factors hindering business performances. Businesses can save more financially and give a higher output regarding services and products offered. These are the key determining factors in any business entity directly affecting production and services rendered.
Most businesses involved in telecommunications, healthcare, and financial services have been enjoying government incentives. The government puts financial muscle within these sectors, enabling faster growth and continuity. Sustainability of these sectors has greatly enhanced business practices and efficiency, which encourages business innovations and growth.
The economic growth of Singapore has helped all multinational businesses to enjoy various tax treaties to ease the tax burden incurred in international trade. The state achieves this by entering into tax relief treaties thereby eliminating double taxation. These treaties are normally fronted by the government and agreed upon between parties for easy trade. Many businesses enjoy bilateral trade and business operations with an eased tax burden.
Singapore is situated strategically in the middle of the busiest shipping lanes, which has resulted in open business opportunities. Thus, it is an emerging economy for trading partners coupled with friendly immigration policies. Businesses involved in export and imports greatly thrive under such an environment.
Foreign Exchange Insurance
With a strong economy built on infrastructure and a pro-business environment and talented workforce pooled from all over the world, new jobs are often created by attracting more multinational companies. You can almost guarantee foreign exchange stability within each business cycle.
For any business to thrive in an economy, a country has to consider some of the pertinent issues that we have discussed above. They create a favorable business environment that has a ripple effect on the economy at large. Singapore has done well over the years, which is a true case study for most economies.