FDI in figures

Singapore attracts investment because to its open economy. According to World Bank, Singapore is the easiest country in which to do business. Credit allocation to foreign investors, easy regulations system, tax incentives, high quality industrial real estate stock, political stability and lack of corruption, make Singapore an attractive investment destination.  

According to the 2008 UNCTAD World Investment Report, Singapore's foreign investment appeal is very high compared to other countries in the world, but performances are comparatively lower in terms of FDI reception. The main investors are by far the United States, followed by Japan, Europe, China and India. In 2008 and 2009, FDI flow decreased due to the deterioration of the international economic environment.

Why you should choose to invest in Singapore

Strong points

Singapore is the easiest country in which to do business, according to the Doing Business 2009 World Bank report. Singapore has excellent telecommunication, financial,and transport infrastructures, and its strategic location at the crossroads of maritime routes and proximity to the big markets is an advantage. The country offers tax concessions and easy loan conditions as part of investment incentives.

Weak points

The lack of transparency in administrative incentives and the non-internationalization of the Singaporean dollar are investment hindrances. Despite being a free port, tariff protection for industrial firms is not provided. The dominant role of semi-public companies could hinder investments in some sectors.

Government measures to motivate or restrict FDI

Singapore is open to foreign investment and offers tax incentives to companies after they register with Economic Development Board. However, the country continues to maintain monopolies in certain sectors (financial services, professional services, media and telecommunications). Government linked corporations play a dominant role in the domestic economy and to a large extent, on investment.

Bilateral investment conventions signed by Singapore

Singapore has signed investment promotion and protection agreements with a wide range of countries. These agreements mutually protect nationals or companies of either country against war and non-commercial risks of expropriation and nationalization for an initial period of 15 years and continue thereafter unless otherwise terminated.
Visit: Singapore 's FTA Network

Procedures relative to foreign investment

Freedom of establishment

Guaranteed

Acquisition of holdings

Possible. A majority stake in the capital of a local company is legal in Singapore.

Obligation to declare

It is obligatory to declare if the proposed company name includes a trademark or patent name or the name of another company/business already existing in any other country.

Competent organization for the declaration

Monetary Authority of Singapore (MAS)
Accounting and Corporate Regulatory Authority

Requests for specific authorizations

Though country's legal framework and governmental policies does not require any specific authorization to invest in the country; but certain limits exist in sectors like telecommunications, broadcasting, domestic news media, financial and some professional services. For these sectors, the Articles of Incorporation may include shareholding limits that restrict ownership in corporations by foreign persons. Moreover, Finance Ministry approval is required for acquisition of local bank when exceeding the specified share limit.

Finding assistance for further information

Investment aid agency

Economic Development Board (EDB)

Other useful resources

Singapore Business Federation