Investing in Singapore Research Papers

The government promoted investment through a whole range of  tax and investment allowances and “soft loans” aimed at attracting new investment or at helping existing businesses expand, update and upgrade.  There is no capital gains tax.  Incentives exist for foreigners, including concessionary tax arrangements for some nonresidents, relief from double taxation, and permission to buy commercial and certain types of residential property.

     It is important to understand Singapore economics before investing or attempting any business venture.  Though Singapore bills itself as a free-enterprise economy, and many countries invest in Singapore, government has a pervasive role in the economy.  The government, that governs both the city and the nation, is responsible planning and budgeting for everything from international finance to sewage treatment and trash collection.  Investment in commercial property involves working closely with the government as is owns, controls, regulates and allocates land, labor and capital resources.  This control put the government in the place of setting or influencing many of the prices on which an investor will need to calculate their investment decisions.

     This intervention has proven to be very beneficial for those in business and for the nation’s general population.  Housing, education, health and recreation services as well as public transportation are all subsidized by the government.  The government enforces savings and pension plans, determines mandatory annual wage increments, and sets minimum fringe benefits in both the private and public sectors.  With this sort of relationship between the government and the governed, the result has been a great deal of security and stability in the nation.  These and all the other control measures taken by the government are designed to safeguard the nation from the economic ups and downs as experienced in East Asia in recent years.  Being so dependent on others in the world economy, the government has opted to control what it can.  In implementing these controls the government has managed to be probusiness without being antilabor.

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