One of the leading industries that are booming in the country is the tech industry. This is because of the government’s goal of becoming globally competitive in the field of technology. They are continually providing opportunities to entice tech talents and entrepreneurs in the country. In turn, Singapore is a very favorable place to start or expand a tech company.
Why is Singapore Attractive to Tech Companies?
Singapore is now considered a tech hub of Asia. According to Singapore’s Economic Development Board (EDB), 80% of the world’s top tech firms have operations in Singapore. Additionally, they are also increasing in investments. That means that tech companies all over the world are eyeing, if not already breaking grounds in Singapore.
But what makes Singapore ideal for tech companies? Here are the top 4 reasons why Singapore is very attractive to tech companies.
Open and Connected
Singapore is an example located in the heart of Asia. This means that the city-state is very accessible, and in turn has access to various states. Additionally, its superb infrastructure provides Singapore with high-caliber means to connect with others globally.
Furthermore, with Singapore’s policies and strategies, it has managed to enmesh itself in the world’s complex value chains. Because of its transparent and consistent rule of law, Singapore is successful in earning the trust of multinational businesses and governments.
As such, if you would start a tech company in Singapore, you can take advantage of this openness and connection. You can ride the wave of competition in the tech industry and benefit from the many incentives given to help tech companies flourish.
Free Trade Agreements
Despite its small market size, Singapore has implemented 22 bi-lateral and regional free trade (FTA) agreements. Additionally, it has just recently concluded two mega-FTAs. These are the European Union-Singapore Free Trade Agreement (EUSFTA) and the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).
Both the EUSFTA and CPTPP promote digital trade and the platform economy. These agreements in aggregate effectively open up all of the world’s major markets to Singapore-based businesses.
Tech Talents
Thanks to Singapore’s policies, the city-state’s labor pool is turning into the world’s most tech-savvy workforce. And the government is continuing to develop these talents with its Research, Innovation and Enterprise 2020 Plan.
This promotes the advancement of manufacturing, the digital economy and services, health and biomedical sciences, and urban, sustainable solutions. The goal of this strategy is to collaborate with networks to produce a growing ecosystem of startups, business incubators, and venture capitalists.
Foreign Settlement Mechanisms
Just recently, Singapore has created another mechanism to welcome tech talents and entrepreneurs in the country. Starting in January 2021, Singapore will issue a new work pass in the form of Tech.Pass. Tech.Pass is a visa with two years of validity specific for foreign tech talents and entrepreneurs.
This allows foreign nationals to participate in various tech activities in Singapore. For example, with Tech.Pass, the holder can start and open and operate a tech business in Singapore. Moreover, the holder can also mentor, consult, lecture, or invest in the city.
Various criteria must be met to qualify for the tech talent work pass. But the criteria and the requirements are very straight-forward so there is no worry about the hassle of getting one. Further, after 2 years from the visa issuance, the holder may opt to renew. Similarly, there will be criteria to cover to get renewal approval.
Start a Tech Company in Singapore
Are you motivated to work in Singapore’s tech industry or start a tech company in Singapore? Company formation is now much easier, with the help of our expert teams. Contact 3E Accounting Singapore today and let us help you set up a company in Singapore.
