Singapore Government Encourages Companies To Set Up Business In Key Sectors
The Singapore government has continued to strengthen its economy by inviting more entrepreneurs and companies from power economies to invest their resources in its key sectors. This was emphasized during the sidelines of Singapore Economic Development Board director for Asia Pacific Mr. Lee Eng Keat’s visit to India.
Keat emphasized how the city state’s business-conducive environment could facilitate a better growth among Indian businesses beyond the confines of their country headquarters. He also said that Singapore’s emerging clusters, such as biotechnology and infrastructure, are perfect areas where high opportunities for growth exist.
The field of biotechnology is quickly growing and the government has invested money for its research and development. A number of global pharmaceutical firms and biotech companies have contributed their piece in improving the R&D of their companies in Singapore. These firms include GlaxoSmithKline, Novartis, and Merck Sharpe & Dhome.
Singapore is also home to what’s called Biopolis, a biotechnology facility where great minds from the public sector and private business firms work together in producing the latest developments in the field.
Singapore’s infrastructure is also fast-becoming an opportunity haven for investors and expats. It has in fact presented new job opportunities in utilities, transportation, and construction of new public roads and infrastructure. An example of a company that has expanded because of an increased demand in the field was broadband bigwig OpenNet.
Singapore’s favorable tax system has made it very convenient for Western companies to expand in its key sectors. Its double taxation treaty with India is also another reason for the country to expand in its territories as opposed to other nearby countries.
Singapore also prevents companies from getting taxed too much. Its corporate tax rate for start-ups with profits not exceeding SG $300,000 is only 8.5 percent, and a headline corporate rate of 17% for income exceeding that number.
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