Singapore

Investing

FDI in figures

Singapore attracts investment due to its open economy and as per World Bank is rated as the easiest country to do business. Credit allocation to foreign investors, easy regulatory systems, political stability and lack of corruption are the attractions for investing in Singapore.

FDI stocks as a percentage of GDP remained almost constant at 159.3% in 2005 and 159% in 2006. According to the World Investment Report 2006 of the UNCTAD, the potential attractiveness for foreign investment in Singapore is very strong compared with other countries in the world, but performances are comparatively lower in terms of the reception of the FDI made. Indeed, of the 141 countries studied, Singapore is ranked as the 2nd country in the world with the strongest potential attractiveness for FDI. Nevertheless, in terms of performance, it ranks 6th.

Foreign Direct Investment	2004	2005	2006
FDI of inward flow (millions USD)	19,828	15,004	24,207
FDI inward stock (millions USD)	n.c.	n.c.	210,089.0
Performance Index*, world ranking	6	6	5
Potential Index**, world ranking	2	2	n.c.
Number of Greenfield investments	175	159	189
FDI inwards (in % of GFCF)	77.5	57.6	79.5
FDI stock (in % of GDP)	n.c.	n.c.	159.0

Source: UNCTAD, World Investment Report

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk.

Why you should choose Singapore

Strong points: Singapore is ranked the easiest country to do business as per a World Bank report. Singapore has excellent telecommunication and financial infrastructure, transport facilities and has location advantage. The country offers tax concessions, easy loan conditions as part of investment incentive.
Weak points: Lack of transparency in administering incentives and non-internationalization of Singapore Dollar are some investment impediments. In spite of being a free port, tariff protection for industrial ventures is not offered.
Government measures to motivate or restrict FDI: Singapore is open to foreign investment and offers tax incentives which can be enjoyed post registration with Economic Development Board. However, the country still holds monopolies of certain sectors. Government linked corporations play a dominant role in the domestic economy and to a certain extent effect investment.
Bilateral investment conventions signed by Singapore: Singapore has signed investment promotion and protection agreements with a wide range of countries. These agreements mutually protect nationals or companies of either country against war and non-commercial risks of expropriation and nationalization for an initial period of 15 years and continue thereafter unless otherwise terminated.
Visit: Singapore 's FTA Network

Administrative procedures relative to foreign investment

Freedom of establishment: Guaranteed
Acquisition of holdings: Possible. A majority stake in the capital of a local company is legal in Singapore.
Obligation to declare: It is obligatory to declare if the proposed company name includes a trademark or patent name or the name of another company/business already existing in any other country.
Competent organization for the declaration: Monetary Authority of Singapore (MAS)
Accounting and Corporate Regulatory Authority
Requests for specific authorizations: Though country's legal framework and governmental policies does not require any specific authorization to invest in the country; but certain limits exist in sectors like telecommunications, broadcasting, domestic news media, financial and some professional services. For these sectors, the Articles of Incorporation may include shareholding limits that restrict ownership in corporations by foreign persons. Moreover, Finance Ministry approval is required for acquisition of local bank when exceeding the specified share limit.