Improving The Economic Stability – Singapore
Singapore, as a nation, has taken great leaps in terms of development from the moment it has been established. The Republic is now known as a global trade and financial hub. The government’s dedication to continuously improve Singapore’s economic condition through implementing policies, programmes, and schemes for different sectors and industries.
A vast majority of the working population in Singapore are employed by the Small and Medium Enterprises (SMEs). Contributing largely to the employment rate and revenue, SMEs are considered the backbone of the nation’s economic output and gross domestic product (GDP).
The government seeks to stabilize the economic conditions of the nation by supporting the nation’s main source of employment—the SMEs. The government encourages and pushes SMEs to improve productivity, innovate, grow and expand business operations not only in Singapore but also, overseas. To decrease the nation’s dependency on foreign talent and increase local employment rates, the government implemented tighter restrictions to hiring foreigners. The restrictions came in the form of increase wage requirements, levies and tax payable to further encourage companies to employ local talents.
A significant number of new companies are formed every year and so does the number of entrepreneurs seeking company formation services provided by professional services. Newly-registered companies can be eligible to tax incentives and government support programmes.
Setting up and registering a company in Singapore has many benefits. For one, newly-registered companies can be eligible to up to claim a 400% tax rebate or a cash refund of 60% for coming up with innovative products and design that can be applied for intellectual property rights, trademark and copyright. Newly-incorporated startups may also be exempted from tax for the first three consecutive years.
With all the measures and initiatives supportive of the government such as cash bonuses, talent programme, tax rebates, and such, the working conditions and rates of company formation have considerably increased. Local and international entrepreneurs are encouraged to take the leap and establish a business presence in Singapore which is instrumental in creating jobs and sustaining economic growth.
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