In this age of economic uncertainty, it is getting very crucial to determine the different key rules of global business policy that support the growth of any small country’s economy. Many small nations including Ireland are looking for strategies to tackle issues associated to competition and growth of economy. Businesses are always confronted with economic challenges and find themselves overseeing cost variations, which means the level of business-friendliness of an economy has gained the most prominent position. Countries that support an ease of business climate can sustain a competitive edge and can appeal foreign investments.
I always find it amazing to read and research on small nations who have struggled and built their way through economic challenges, and being an Asian one small island located in the South-East Asia has inspired me a lot and that is Singapore. With its innovation driven economy Singapore has progressed as a successful small county and still continue for the next phase in its innovation journey with its position as a business hub in rising Asia.
According to Bloomberg this year’s Innovation Index report, Singapore has left behind few big countries, ranked as third country in the chart leaving behind Germany and Switzerland in Europe and Japan in Asia. It has rose by three positions up as compared to last year’s report which is a remarkable achievement.
What are the key factors that makes this country so innovative and economically strong, let’s have a look at few main areas which influence the ideal condition for any investment and growth of a business. According to the World Bank’s Ease of doing business report 2018 which compares areas like agreement imposition, taxes, liquidation proceedings, construction permits and ease of starting a business, Singapore is ranked number 2. This ranking is mainly based on the factor that it takes just two procedures and around one day to incorporate a new company in the country and takes only Two and half day to start a new business. While here in Ireland it takes up to four procedures and up to thirteen days to incorporate a new company. The government of Singapore for the past many years has continuously been keeping the doors open for their domestic market to the international banks, and approx. 95% of banks functioning in Singapore are now foreign owned.
According to the last Global Enabling Trade Report by World Economic Forum’s, Singapore stands on top of all the countries for the easiness to do trade, which includes both local and international market access, availability and quality of transport services, efficiency of customs administration and the regulations of import & export policies. While Ireland was ranked number 20 in this report.
Singapore’s corporate tax structure especially for the new start-ups is very competitive and the best in the world, according to a recent report by the World Bank in corporation with PWC. The report determines several economies based on 3 main factors; overall tax rate, time to fulfil tax requisites and the number of tax payments needed. Achieving excellently among all these factors Singapore was acclaimed for its tax rates, consent time and number of tax payments that are lower than international standards. It is a perfect country for a long-term investor to do business, because such investors do not need to pay tax on capital appreciation obtains or surplus earnings as compared to many other countries including Ireland where investors end up paying huge percentages of their earnings in tax. The highest independent income tax rate is 22% and the highest corporate tax rate is 17%.
Singapore pursues to captivate great investment dedications despite the challenging international financial circumstances. Its substantial matrix of double tax deals, strategic location within the heart of all crucially expanding trades, its economic and political strength, its eminent legal structure, its substantial connectivity and expertise measures, its innovative business atmosphere and the immense opportunities for entrepreneurs and new start-ups growth within the region of South East Asia are one of the main elements that runs Singapore’s fortune as a outstanding business center of the current global economy.
Bibliography
Bloomberg 2018 Innovation Index, Online available at: https://www.bloomberg.com/news/articles/2018-01-22/south-korea-tops-global-innovation-ranking-again-as-u-s-falls Accessed 27th Feb 2018
Doing Business 2018, Online available at: www.doingbusiness.org/reports/global-reports/doing-business-2018 Accessed 27th Feb 2018
Singapore’s Long Game In Innovation, Online available at: www.straitstimes.com/opinion/singapores-long-game-in-innovation Accessed 28th Feb 2018
The secrets to Singapore’s track record of innovation excellence, Online available at : www.washingtonpost.com/news/innovations/wp/2015/05/26/the-secrets-to-singapores-track-record-of-innovation-excellence Accessed 1st March 2018
Lessons for Ireland from other Innovative Countries 