There are some who argue that by leaving the EU it could actually attract business to the UK on the basis that many will want to steer clear of the crashing eurozone environment.
There is a likelihood that the Great Britain is going to leave the European Union. If such happens, chances are that UK businesses that had expanded to other countries within the greater EU are likely to meet a host of legal and political challenges given their new status. In the same way, businesses from EU countries that have expanded to the UK are likely to face the same challenge. Since the challengers that they are likely to face are unpredictable, it is only prudent for the businesses to look at other areas to do business.
Asia is home to several tiger economies that may be good areas to expand business. One of these economies is Singapore. Singapore was recently rated number one worldwide in the ease of doing business by the World Bank. It is the 36th largest economy in the world at the similar size to Israel and Denmark and ahead of Hong Kong. The city-state is half the size of London but has about 5.4 Million residents. A third of these residents are foreign workers. Moreover, it has the highest per capita income in Asia that stands at about US$56,000.
According the EU ambassador to Singapore, Singapore has a similar structure as European Union. In both economies, three quarters of the GDP comes from the services. Out these service providers a large number are private small and medium enterprises. Thus, SMEs are the backbone of the economies. They account for 99 per cent of the private enterprises and employ over two-thirds of the workforce.
To complement the EEN Singapore. Centre. the EU will also launch a specific business support program to assist European SMEs looking to access opportunities in South-east Asia. EU Business Avenues is designed to complement the EEN Singapore Centre’s activities by organizing week-long business trips to Singapore and the region. Building on a successful pilot, the new program will extend to cover six key South-east Asian markets and seven priority sector.
Singapore is located at Southeast Asia and gives business access to around 2.8 billion prospective clients from neighboring regions. Its port is one of the busiest in the world and the airport servers over 15 million passengers every year. It is the gateway to the rest of the major Asian markets.
Singapore means business
The Singapore administration is pro-business. It has created an attractive business environment to attract foreign businesses. For example, it takes just a day or two to have a company incorporated and running.
Singapore government has outlined several incentives in its latest Budget 2016 to support more SMEs in their internationalisation efforts, including extending tax-deduction for schemes that help them enter new regional and, global markets.
According the Eurochambers only ten per cent of manufacturing industries export their goods and services out of the European Union and only about thirteen per cent of all the SMEs that have footprints out of Europe. Singapore presents a lucrative opportunity to many of the SMEs by providing an enabling environment and a large market for their goods ad services.
Low tax burden
Taxes top in the mind of every entrepreneur that seeks to expand business. Luckily, Singapore has some of the lowest effective corporate and personal tax regimes. The personal income is taxed under a tire system starting from 0 per cent to 20 per cent for incomes above 320 Singapore dollars. Businesses with profits below 300,000 Singapore dollars are taxed below 9 per cent; the tax rate is capped at 17 per cent regardless of the profit earned.
There are many more reasons for businesses to expand to Singapore. This is a premium business destination for EU and UK businesses that are seeking growth.