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Top of main content

 1. HSBC SG 
 2. International services 
 3. Why Singapore is a great place to live and invest in




WHY SINGAPORE IS A GREAT PLACE TO LIVE AND INVEST IN



Singapore is known worldwide for being a great place for expatriates, investors
and entrepreneurs looking to expand into Asia. Its development into a financial
hub conducive for trade, excellent infrastructure, and a stable, progressive
legal and regulatory framework are just some of the reasons that make it
appealing. Why invest in Singapore? Let's explore some reasons why the
city-state is a great destination for your wealth management needs or even as a
new home base for you.


IT'S A LEADING FINANCIAL HUB IN ASIA

The Lion City benefits from government policies that position the country as
open to trade, attract foreign direct investment inflows and that welcome
overseas business setting up shop on its shores. This has cemented its position
as one of Asia's top financial hubs, with many multinational corporations
already establishing a pivotal presence here. Singapore is the fourth largest
financial centre globally11 view footnote 1 and the third richest in the world22
view footnote 2. It's home to the biggest foreign exchange (FX) centre in
Asia-Pacific and the third largest worldwide, after New York and London33 view
footnote 3. With these international accolades, it's little wonder the country
is hailed as the de facto financial capital of the Southeast Asian region.


IT'S GREAT FOR COMPANIES AND BUSINESSES

Setting up a company in Singapore will get you access to its infrastructure,
which is conducive for both overseas investors and businesses. Investors and
businesses have long experienced great ease of doing business in Singapore, and
it was voted top in Asia for its efforts in protecting intellectual property44
view footnote 4 and ranks fourth worldwide on the Corruption Perceptions Index55
view footnote 5.

Wondering how to invest in Singapore? The country's Economic Development
BoardEconomic Development Board to gain incentives and schemes This link will
open in a new window (EDB) dedicates significant resources towards overseas
businesses and individuals to start up here, providing high-quality assistance
along the way.

In fact, its efficient regulatory framework makes it hassle-free to incorporate
a company or business, which is a big plus if you're an overseas investor. To
register your business officially, just submit the company registration form and
relevant documents to the Accounting and Corporate Regulatory Authority of
SingaporeAccounting and Corporate Regulatory Authority of Singapore to register
This link will open in a new window (ACRA). Once your company's incorporated,
you're all set to open a bank account and kick things off.


BUSINESS GATEWAY TO THE WORLD

Singapore's strategic location in the heart of Southeast Asia makes its port a
major player that is always bustling with activity.


Its proximity to other countries and key markets in the region open up many
possibilities for investors and businesses based here. In fact, many Chinese and
Australian producers and trading houses have major offices in Singapore,
boosting its position as the region's stand-out commodities hub66 view footnote
6, in case you're wondering what to invest in in Singapore.

Thanks to its stance on promoting international trade and business, Singapore
has an extensive 25 free trade agreements in place77 view footnote 7, many with
major global markets, giving investors and businesses based here great access to
these important economies.


PRIME HUB FOR OFFSHORE WEALTH MANAGEMENT

Singapore is appealing to investors as an offshore wealth management hub, with
58% of participants in a 2018 survey conducted by Asian Private Banker rating it
as their preferred market, followed by Hong Kong and Switzerland88 view footnote
8.

This comes as little surprise as the city-state's renowned stability, openness
to international investment, and economic strength make it a choice destination
for investors, as well as foreign business owners looking to invest in
Singapore. The proof is in the pudding: some 76% of the assets under management
(AUM) in Singapore in 2019 originated overseas99 view footnote 9.


TAX SYSTEM

The little red dot has a tax system that makes it appealing for expatriates and
investors. Income tax rates for individuals residing in Singapore are
progressive in nature and range between 0% to 22%1010 view footnote 10
. Currently, Singapore does not impose capital gains tax, inheritance tax and
estate duties. Investors don't have to pay stamp duties when they purchase
scripless shares listed on the Singapore Stock Exchange, where the transfer of
such shares is made by the Central Depository (CDP) via electronic means.


Businesses based in Singapore are subject to a flat corporate income tax rate of
17%. There are various tax incentives and grants available to businesses based
in Singapore.



GREAT QUALITY OF LIFE

Besides factors directly related to investments, the quality of life in
Singapore is also a big pull. The republic has a stable and progressive
political environment promising a secure and peaceful life, as well as a strong
workforce that's able to offer employment to individuals in multiple industries
and sectors. It also boasts a multiracial and multicultural society that
embraces diversity and inclusiveness. These qualities contribute to it being the
only country in Asia-Pacific that has received a stellar AAA long-term sovereign
rating by Moody's, Fitch and S&P1111 view footnote 11, which represents the
highest issuer credit rating given to countries.

Singapore also is home to a world-class education system, which is good news for
families looking to relocate or have their children go to school here. It's one
of the most popular global destinations for parents considering a well-rounded,
rigorous overseas education for their children, with Nanyang Technological
University (NTU) and the National University of Singapore (NUS) both ranking
11th among universities worldwide1212 view footnote 12.

All in all, there are so many reasons why moving to Singapore or investing in
the Lion City are worth exploring. But most of all, knowing that the country
truly welcomes and embraces foreign residents and businesses is perhaps its
biggest allure.

1 "The Global Financial Centres Index 26", Long Finance, September 2019

2 "These are the 25 richest countries in the world", Grant Suneson, USA Today, 7
July 2019

3 "Singapore is largest forex centre in Asia, third largest globally", The
Straits Times, 1 September 2019

4 Singapore's IP ranking, Intellectual Property Office of Singapore

5 Transparency International, 2019

6 "Singapore increases scrutiny on commodity trading and marketing companies",
Sowmya Varadharajan, ITR, 30 July 2020

7 Ministry of Trade and Industry SingaporeMinistry of Trade and Industry
Singapore to learn more about Free Trade Agreements This link will open in a new
window

8 "The Role of Singapore as an Offshore Wealth Management Hub", Asian Private
Banker, 2018

9 "Singapore-based asset managers' AUM jumps 15/7% last year: MAS survey",
Vivien Shiao, The Business Times, 30 September 2020

10
"https://www.iras.gov.sg/irashome/Individuals/Locals/Working-Out-Your-Taxes/Income-Tax-Rates/https://www.iras.gov.sg/irashome/Individuals/Locals/Working-Out-Your-Taxes/Income-Tax-Rates/
to learn more about Income Tax Rates This link will open in a new window", IRAS
Singapore

11 Sovereigns Ratings List, Country Economy

12 2020 Quacquarelli Symonds (QS) World University Rankings


LOOKING TO INVEST IN SINGAPORE? FIND OUT HOW WE CAN HELP YOU GET STARTED.

Start growing your wealth Start growing your wealth to visit HSBC Singapore
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