Frequently asked questions

Transparent Legal System-

Singapore is a highly transparent government with minimal corruption indicators, ensuring accountability and a fair business environment. Per Transparency International, Singapore ranks 5th globally on the Corruption Perceptions index (compared to the U.S. ranking 24th)

Specific Investment Practices-

Singapore's introduction of the Economic Development Board (EDB), a government agency under the Ministry of Trade and Industry, strives to create a favorable environment for economic growth by attracting investments and nurturing globally competitive industries.

Government Supports R&D Investment

In Budget 2024 per EDB Singapore, the Singaporean Government has set aside ~S$28b over 5 years to support the research and development ecosystem in the country, with Semiconductor manufacturing being a key focus area in the budget.

Business-

friendly Regulatory Environment: The country features an extremely streamlined business registration process and minimizes red tape, making it easy to establish and operate businesses whether foreign-owned or locally owned. Businesses must register with the ACRA, but can do so online at https://www.bizfile.gov.sg/

Fairness-

Per State.gov, there are no current reports (as of 2023) that lead us to believe U.S. investors are disadvantaged or singled out relative to foreign investors from other countries. All foreign companies may also lease or buy privately or publicly held land, with some restrictions.

Tax Incentives-

Avoidance of Double Taxation Agreements with 96 countries, however no comprehensive policy in act with the United States.

100 percent tax deduction for all qualifying expenditures incurred on R&D projects. There is also an additional 150 percent tax deduction for staff costs and consumables for such projects.

200 percent tax deduction on the first S$100,000 (US$74,200) of qualifying expenditure on licensing of IP rights.

Attractive corporate tax rates (currently capped at 17%) and incentives for businesses in targeted industries such as technology, manufacturing, and finance.

Environmental Focus-

Government partners with manufacturers to implement greenhouse gas abatement and energy efficient systems to make sure everyone does their part keeping the Earth Green in an industry well known for high carbon emissions and groundwater pollution.

Ensuring Experience-

While Engineering firms are allowed to be 100% foreign owned, Engineers are required to register with the Professional Engineers Board and have at least 4 years of experience in engineering (of which two are acquired in-country) to ensure quality of products and adhere to high standards in exports.

Ensuring Accountability-

All businesses must register with the Accounting and Corporate Regulatory Authority (ACRA) before operation. Foreign investors are allowed to operate their businesses in the most usual forms of ownership (Sole Proprietorship, LLP, LP, INC, etc.) as well as foreign company branches and representative offices, however, they have strict disclosure requirements that force foreign company branches to maintain publicized registers of their members and appoint a local resident director in order to ensure the business is ran in a way that aligns with their ethical culture.

Workforce and Talent Protections-

Singapore has a widely diverse ethnic, religious, age, and gender makeup in its workforce. The Ministry of Manpower has enacted the Tripartite Guidelines on Fair Employment Practices and lists principles to follow in order to maintain fair employment practices such as hiring on basis of merit, treating every employee in a respectful and equitable manner, rewarding employees fairly based on merit and contribution, and providing equal opportunities to be considered for training and development.

Intellectual Property Protections-

Singapore boasts one of the most robust intellectual property rights protection regimes in Asia, supporting value creation and an innovation-driven economy. Ranked 11th out of 55 in the world in the 2023 United States Chamber of Commerce’s International Intellectual Property (IP) Index, Singapore has an advanced IP framework and is continuously considered a global leader in copyright enforcement.