Have you ever wondered why tech giants like Facebook and Google invested extraordinary amounts of money into the development of their headquarters in Singapore? Even though they haven’t started this skyrocketing trend, they represent a perfect example of the utilization of great benefits this specific region has to offer. Numerous software developing companies are pumping money into their representations with a goal to develop and place their tech products.
Only one-fifth of the world’s top-rated enterprises has not yet set a center in Singapore and that number drops amazingly fast. There are reasons why this country acts as a better solution than the competition, so what we present you with is a list of main culprits for the rapid rise of this tendency.
Free Trade Agreements
Although Singapore does not amaze with its size and its population of about five million inhabitants, it is extremely connected to the rest of the world with multiple bi-lateral and multi-lateral agreements. Namely, an enterprise with a representation based in Singapore has access to both European markets and the market of the USA, thanks to the fresh agreements which make this country a haven for tech companies. The government of Singapore has realized twenty-two bi-lateral agreements and implemented regional FTAs which enable trading with preferential terms for the companies operating from their territory.
The deals that are the most imposing are the European Union-Singapore Free Trade Agreement and Comprehensive and Progressive Trans-Pacific Partnership that represent two grandeur agreements that promote high-quality digital commerce and platform-based economy business.
Political Stability
Singapore functions in an exemplary way, with a low corruption rate, stable but growing economy, and political stability that altogether serve as fertile soil for enterprises from all around the world. This is not a novelty, but a result of a well-established system that lasts. The situation in Singapore makes it a desired and respected partner, especially because this is a country with one of the globally most successful economies that support investors with multiple incentives.
Fueled by the Government
Companies capable of answering the key questions in software development are even financed by the local authorities. The government offers various grants and support companies entering the market in different ways. For example, if an enterprise seeks to spread its operations to nearby states, the DTDi, which stands for “Double Tax Deduction for Internationalization”, is particularly important. It concerns software companies since it helps with market research, commercial conferences, and feasibility analysis.
Another pair of grants important to mention is the Enterprise Development Grant and the Productivity Solutions Grant that supports companies with numerous benefits. Backed by those promotions, software companies in Singapore are able to develop and prosper more easily than anywhere else in the world.
Geographic Position
Before Singapore reached the status of Meka for software developing companies it was a country that made most of its money from fishing. One of the main reasons for the astonishing progress of this South-Asian country is its location. Namely, all you have to do is sit on a plane, and in six hours tops, you are in any of the regional state’s major cities. That makes Singapore close to both cost-effective destinations important for hardware assignment as well as discount opportunities, and the proximity of regional markets beneficial for various purposes.
Software Engineers Haven
Another reason why Singapore is considered a new place to be for software companies from every part of the world is the demand for a professional workforce. Since this is the result of the symbiosis of job offering and demand, it comes as no wonder that more than fifty thousand skillful software engineers are about to be employed by tech companies in near future. Considering that this number equals a fourth of the currently working software developers, the global interest in this region is unsurprisingly high for a reason.
What makes Singapore ideal for software companies is also its position, since it is well-connected with the region and already has an established system that works both for the local economy and the foreign investors.
Digital Trade
While China’s Security Act implemented three years ago makes foreign investors preserve their data on local servers, Singapore offers more beneficial terms and conditions for software companies and does not fall for the limitations of that act. Moreover, Singapore is a part of the Australia Digital Frameworks Initiative and promotes formal legal frameworks and models, e-commerce, digital currency exchange, and other forms of digital business.
What this particular approach enables is also transparency, apart from established standards and other benefits it offers. The National Trade Platform enables its members to work in constant synchronicity, which means different businesses are interconnected, with eased access to banks, shipping, customs, and other segments of importance.
Favorable Living Conditions
Singapore has much more to offer than a quality working environment and a place for your tech company to flourish. Namely, it provides opportunities for schooling youngsters and proudly stands among the most developed schooling systems for children up to 15 years. Combined with a high living standard this represents a fruitful ground for starting a family. Therefore, it comes as no wonder that people are driven to Singapore in order to both works in the growing tech industry and raise their family in a convenient atmosphere.
Although Singapore has been evolving for quite some time now, it is still one of the fastest-growing regions in the world when modern technologies and software development is in question. The aforementioned reasons why Singapore is an ideal place for starting a tech company are just a small portion of what it really offers to this type of industry. Since the industry is on the rise, even more opportunities are emerging from the current offering and the market is still under construction.
This is where the future is forged so becoming a part of it might be crucial for the days to come. The position on the global scale of superior software developing enterprises is closely related to this country, therefore, acting before it is too late is what numerous business should make their number one priority.
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