Regional Growth Strengthens Singapore’s Status As A Leading Investment Destination In Asia
The continued growth of businesses in Southeast Asia’s is directing new investments in Singapore, according to a recent report.
Singapore’s neighboring economies, Philippines, Malaysia and Indonesia, continue to exhibit tremendous growth recently, with businesses that are also looking into expanding their operations in Singapore.
Despite the global downturn slowing down investment activities in the region, over S$2.7 billion have been raised in Singapore from IPOs (Initial Public Offerings) as the year ends.
A number of Southeast Asian companies are aiming to raise capital in the international market as they benefit from getting listed on the Singapore Stock Exchange.
Just recently, Philippine food manufacturer Alliance Select Foods International, Indonesian mining company Harita Group, and India’s Religare Health Trust are requesting to get listed on the SGX. Harita and Religare have both raised SG $250 million to SG $500 million in IPOs so far.
Singapore is also performing well in the area of mergers and acquisitions (M & A). Singapore was reported to have acquired over US$25.6 billion in deals for Q1 to Q3 2012, making it only a step behind Japan in terms of M & A activities. This rosy performance can be attributed to Singapore’s recognition as the region’s fastest growing global finance hub, and its recent accolades for its quality of life.
Companies from emergent Southeast Asian economies are looking to expanding into new territories to raise more funds. Singapore is a known business destination in the region and is more accessible than Hong Kong and Japan. And as a global finance hub, Singapore is a perfect location for regional companies to build their presence in an international market.
Setting up a business in Singapore also takes a few days and complying with the requirements of the Singapore registrar is a breeze. As a testament to this fact, over 14,243 new SMEs have registered their businesses in Singapore during the last quarter of 2012 alone.