Singapore has developed into an Asian technology centre and a favourite destination for companies that want to soar in the emerging markets. According to the EDB (Economic Development Board of the Government of Singapore), 80 of the 100 leading technology companies in the world operate in Singapore.
The tech companies like Google, Facebook have 1000-1500 employees. While the numbers increase year on year. Nevertheless, if a person wants to join in the top tech companies based on Singapore, they need to fulfilnecessary requirements like Singapore visa among others.
The 2017 Bloomberg Innovation Index placed Singapore at number 6 in the world, just above Japan and the United States, while China is at position 21. It is one of the reasons why may technology companies seek to invest or have already invested in the country.
Here are four factors that make Singapore an attractive country for tech companies:
1. Open and Connected
Singapore is a country connected to every country in the world. Therefore, it is said to be the centre of Asia. One of the studies states that most of the cities of China connect to Singapore. Also, New York and Sydney connect to Singapore. The laws and rules of Singapore are transparent for all the companies.
The stakeholders have gained the trust of the government and many NGOs as well as business owners. It creates a good business cycle. Mainly because the Singapore government continues to be involved in every partnership between the public and the private sector that is open and mutually beneficial.
2. Free Trade Agreement (FTA)
Singapore is a small country with a population of more than 5 million. It has established regional and bilateral FTAs. The multilateral transactions EU-Singapore Free Trade Agreement EUSFTA and Comprehensive and Progressive Trans-Pacific Partnership CPTPP have high standards to promote the digital economy and trade platform. These agreements effectively opened all the world’s major markets for Singapore-based companies.
Singapore is even more alluring as there are no signs of easing trade conflicts between the US and China. To meet FTA requirements, companies can shift their regional chains to Singapore, where there is a strong network of suppliers from strategic partners and local service providers.
3. Friendly to Trade and Digital Data
In ASEAN, as other countries have established more barriers to cross-border data flow, Singapore has become the initiator of the emergence of the ASEAN-Australia Digital Trade Framework Initiative.
Singapore National Trade Platform provides a transparent and open environment to the companies without forcing any strict legal barriers.
4. Geopolitically Safe
The risk of US geopolitics with China is increasing. Thus, American and foreign technology companies are facing obstacles.
Partnering with entities listed in trade sanctions, for example, can cause company transactions to be blocked, increase control of exports, and technological sanctions that damage daily supply chain activities.
Multinational companies must, therefore, strategically enhance the stronghold of the technology ecosystem to comply with national security regulations and sanctions.
Singapore has its export control framework and licensing protocol based on the Western structure. Thus, it provides ample opportunities for foreign companies wishing to manage their exports. Hence, Singapore is one of the safest countries with transparent policies. Such policies are attracting many multinational tech companies to move to Singapore. And, foreigners looking to work in tech-savvy Singapore, need a Singapore Visa.