About Singapore

Is Singapore a city, an island, or a country? Well, it is a modern metropolis, that mixes all these categories. Singapore is both an island and a country, but perhaps its best description is that of a city-state. 

But of course, even though it is physically small, it is also an economic giant. It is made up of a diamond-shaped Singapore Island and some 60 small islets; the main island occupies all but about 18 square miles of its combined area.

If you are new to Singapore, you are probably wondering how this small city-state in Southeast Asia with a total land area measuring only 721.5 square kilometers, and one of the youngest nations in the world became one of its most successful. The answer is that this "Asian Tiger" is a unique place that allows you to escape from the world's troubles and maybe connect to bigger opportunities and business. 

Here are some reasons why Singapore should be your next destination for living or doing business:

• In Singapore, you get everything you need in one place since it is an Asian business center. When you look for safety, efficiency, and opportunities, Singapore comes to your mind. 
• Singapore is a clean, safe place to visit, its amenities are second to none and its public places are smoke-free and hygienic.
• Likewise, it can be mentioned that Singapore is a multicultural city, and close to one-quarter of its population are expatriates or foreign workers from all over the world. 
• One great detail is that Singapore is known for its desire to become the technology hub of Asia. Therefore, it is the most wired country in the region. 
• It has a multi-cultural society, because it blends, Chinese, Arab, Indian, Malay and English cultures and religions. Nothing compares to this.
• Singapore is the largest port in Southeast Asia and one of the busiest in the world. It owes its growth and prosperity to its focal position at the southern extremity of the Malay Peninsula, where it dominates the Strait of Malacca, which connects the Indian Ocean to the South China Sea. 
• Singapore is the freest economy in the world per the Index of Economic Freedom. The government supports financial freedom with swift and transparent processes and a sound macroeconomic policy and low taxes.
• As we said, Singapore is a low-tax jurisdiction. The corporate tax rate is 17% but can be significantly lowered due to many different juicy tax exemptions for startups, offshore funds, and trading companies. Singapore only taxes locally-sourced or remitted income. For individuals, the tax rate goes from 0 to 22% on their income generated in Singapore unless they receive foreign income from a resident individual, making its system almost entirely territorial.

Some History about Singapore

Once a British colony and now a member of the Commonwealth, Singapore first joined the Federation of Malaysia on its formation in 1963 but seceded to become an independent state on August 9, 1965.

The progress of Singapore has been remarkable over the last decades. However, it wasn't always like this. As we mentioned before, this country used to be a British colony, put in place in 1819 when Sir Stamford Raffles first established it as a British trading post. At that moment, Raffles recognized Singapore's strategic location on the major sea route between India and China, its excellent harbor, and the advantages of using it for trade. 

It meant that Singapore's early prosperity was based on a vigorous free trade policy. Later, mass industrialization bolstered the economy, and today the state boasts the world's second-busiest port after Rotterdam, minimal unemployment, and a super-efficient infrastructure. Almost the entire population lives in upscale new apartments, and the average per capita income is over US$12,000. 

However, while Sir Stamford Raffles created the framework for Singapore's early success, it was Singapore's former Prime Minister, the late Mr. Lee Kuan Yew who shaped the first quarter-century of Singapore's existence as an independent nation and defined the path to its current success. What follows is a brief history of the country's origins from a colonial outpost to the developed nation that it is today.

Singapore gained independence from the UK as a part of Malaysia in 1963. Yet, after ethnic tensions, the island was expelled from the Federation in a unanimous vote in the Parliament.

Thus, it was left alone in the midst of an unemployment crisis, with an uneducated and poor population and without natural resources or a proper infrastructure.

How did it become one of the main drivers of the global financial centers? With a combination of authoritarianism and free-market policies.

Lee Kuan Yew was the prime minister from 1959 to 1990 and his party has been the ruling party of the country in all of its history.

When the country became independent, the government promoted five and ten-year tax breaks to foreign companies. Its past as a trading port with a favorable location made it attractive to export processed products and import raw materials. This led to rapid industrialization, meaning the country became the third oil-refining destination in the world in the 70s.

Further, as the shipping industry and the port grew, the service industry also developed. English was the schooling language, turning the island into a cosmopolitan destination where people from all over the world could do business freely and the education system was overhauled to fill the need for a skilled workforce.

Yet many services were still nationalized and Keynesianism was predominant in economic policy. Yet in 1985, Singapore embraced the free market after a heavy recession. The government privatized public companies and liberalized wages and services. This was the birth of modern Singapore, which is the main driver of the world’s financial system and an example for those who love a free economy.

Singapore's progress over the past three decades has been remarkable, yet the island has not been overwhelmed by development. Visitors will discover a wealth of historical treasures from the past, in the beauty of older buildings, values, and traditions that have survived in the face of profound social and geographical change.

Political System and Government

Singapore is a unitary parliamentary democracy based on the Westminster model. The president is head of state. Until 1991 the largely ceremonial post of president was filled by parliamentary election, but in that year the constitution was amended to allow for the direct popular election of the president and for presidential powers to be expanded. 

Right now, the unicameral Parliament consists of 94 members, of whom 84 are elected and 10 are appointed to terms of up to five years. The parliamentary majority selects the prime minister, who is head of government, and the cabinet from its own ranks, and they, in turn, form the government. In each constituency, there is a Citizens' Consultative Committee, designed to link local communities to the ruling party.

Close liaison is maintained between the political and administrative arms of government. The administrative structure consists of the various ministries and statutory boards. These are staffed by civil servants who are monitored by an independent Public Service Commission.

Lifestyle

Singapore has become a prosperous country that excels in trade and tourism and is a model for developing nations. The capital city, also called Singapore, covers about a third of the area of the main island. 

Like the great city-states of the past, it offers civilization and order in the highest degree, thanks to its government and laws. Some foreigners tend to think that Singapore has "dumb" laws, such as the prohibition of chewing gum, but the truth is that these laws work to make it a better place to live. 

Your life in Singapore would be wonderful if you consider that it is a thriving metropolis offering world-class infrastructure, a fully integrated island-wide transport network, as well as a dynamic business environment. You will be surrounded by vibrant living spaces and a rich culture largely influenced by different communities with each offering a different perspective of life in Singapore in terms of culture, religion, food, language, and history.

With this, Singapore society presents the best of both world hemispheres. This is manifested when you observe the combination of Western-style development and an Eastern-style calm. Also, Singapore is known as a City in a Garden, since nearly 50 percent of the island is green space.

Economic Development

This city-state went from being a territory associated with poverty and overcrowding to becoming the fourth most prosperous country on the planet. After going through a recovery process, it did so that other jurisdictions cannot even begin to dream. How? Business mindset.

Singapore's economic potential does not come from natural resources, but from its framework for doing business. This means that economic development in this country has been highly dependent on investment capital from foreign multinational corporations. The government holds about three-fourths of all land and is the chief supplier of surplus capital, which is derived largely from contributions to the Central Provident Fund (CPF) social-security savings program. 

Singapore is the largest port in Southeast Asia and one of the busiest in the world. It owes its growth and prosperity to its focal position at the southern extremity of the Malay Peninsula, where it dominates the Strait of Malacca, which connects the Indian Ocean to the South China Sea. 

The extensive government intervention in economic development has weakened. In contrast with the past, now Singapore's official policy relies on market forces, privatization of government enterprise, and more support for domestic private businesses. Union membership has declined and greater reliance has been placed on local labor-management negotiations.

Besides, the government has attempted to enhance the value and productivity of labor to attract investment and boost export competitiveness. This has been accompanied by a strong commitment to education and health. Labor shortages and rising wages have heightened the push for restructuring the economy even more toward higher value-added production.

However, something that actually was given by nature to this country is its geographic location. Located at the tip of the Malay Peninsula, Singapore's tropical climate welcomes both leisure and business travelers year-round. Also, it is known as a trade center due to its access to the Asian markets through maritime routes, easily accessible.

Finance

Nevertheless, what is even more remarkable is that Singapore's economy always has differed from those of the other Southeast Asian countries in that it never has been primarily dependent on the production and export of commodities. Singapore has experienced remarkable economic growth and diversification since 1960. In addition to enhancing its position as a world trade center, it has developed powerful financial and industrial sectors. 

Today, Singapore's financial services are highly sophisticated and are available through a wide variety of institutions. There is a growing venture-capital market that offers seed funding to firms that develop or introduce new technology. 

A focal point of Singapore's growth as an international financial center has been the Asian Dollar Market, which is essentially international money and capital market where currencies other than the Singapore dollar are traded. Likewise, the Stock Exchange of Singapore is an important component of financial activity in the region.

Major geographic centers

This small city-state does not even reach 6 million inhabitants but is one of the international financial centers that produce more millionaires worldwide. This is why Singapore is considered one of Asia's economic engines, and why it is a major geographic center. 

The city of Singapore is in the southern portion of the main island. Over time, urbanization has blurred the differences between city and country. Built-up areas now cover a large part of the city-state. The older parts of the city have been substantially refurbished, especially along the Singapore River but elsewhere as well. The once-common Chinese shop-house, consisting of living quarters above a commercial establishment, gradually has been disappearing from the city. 

Instead, the government's Housing and Development Board (HDB) has relocated commerce into separate districts and has created integrated residential communities inhabited by people with a mixture of incomes. About four-fifths of Singapore's population now resides in high-rise HDB flats located in housing estates and new towns. The new towns—such as Yishun, Woodlands, Tampines—are scattered across the island and are characterized by easy access to places of employment and shopping districts. The traditional Malay kampong settlements—consisting of stilt houses built along the shoreline—are declining in number and are now found only in select rural areas.

Living in Singapore as an Ex-pat

Being a tourist is always different from actually living in a country as an ex-pat, and we know that for sure. However, in the case of Singapore, you can get an idea of what would be like living in this country while visiting it as a tourist. A good point to start is knowing that it is known for having the highest personal security index in Asia.

Then, the island’s excellent infrastructure enables visitors to enjoy its many sites and attractions in a safe, clean, and green environment. Award-winning Changi Airport provides air links to major cities around the world. The train and subway systems are clean, fast, and efficient. Besides, its state-of-the-art cruise terminal has established Singapore as one of the premier cruising centers of South East Asia and an exciting port of call on any Asian cruise itinerary.

You would enjoy these characteristics and benefits as an ex-pat or a tourist. Nevertheless, what is distinctive is that you would not feel like an outsider if you decide to live as an ex-pat in Singapore, because you would not be the only one. A distinctive element of Singaporean society is that it is very diverse, especially considering the size of the city-state. Singaporean society is largely made up of ethnic Chinese, Malays, and Indians. This Asian gem attracts huge numbers of ex-pats, with studies showing that approximately 40% of the total population are foreigners. This mix has resulted in a strong sense of multiculturalism within Singaporean society. Singaporeans are for sure focused on living by multicultural ideals and supporting multiracial values.

Of course, you might think that cultural diversity does not automatically lead to happiness. However, in Singapore, this diversity is what the city-state was founded on and ultimately seems to serve the country very well. Likewise, the opportunities for foreigners grow day by day considering that new businesses are born in this country, thanks to its economic and social characteristics.

Maybe you are thinking about the language barrier you might face because it is an Asian country. But do not fear, you can live in Singapore only speaking English, especially if you are interested in business. In this country, English is used for business and administrative matters to prevent language barriers in the commercial arena.

Investment potential

Singapore has the most advanced economy in Southeast Asia and is often mentioned along with other rapidly industrializing countries in Asia, notably South Korea and Taiwan. Its economic policies are oriented towards the free market and respect for private property and contracts. Without a doubt, these have helped Singapore to grow and become one of the "Asian Tigers".

Their motivation was to accomplish the drastic reduction of fiscal pressure, the decrease of public spending, the opening up of trade, and the application of the notion of market competition for all companies. Consequently, the investment potential is A level in Singapore.

Making business in Singapore is a great opportunity, not only for the economic and business success of the area but for the strength of the brand that brings to settle your business in it. All of this, added to other factors such as security, cultural diversity, and Southeast Asia's charm, makes the region a place worth studying. Making a name for yourself in Singapore can be advantageous and profitable in the medium and long term.

Due to its fiscal, economic, and legislative advantages, the adventure of settling down in Singapore can be more comfortable than in other countries of the area. Still, it also requires patience and professional advice, and here at Mundo, we offer that, as well as guidance from the best experts in the area. 

When you think that Singapore is the fourth wealthiest economy globally, you may think that it is perhaps an inaccessible place that only a few can reach, but nothing is further from the truth.

This is what Singapore puts on the table when it comes to incorporating a business:

• The freest economy in the world, per the Index of Economic Freedom.
• Free flow of foreign currency
• Singapore's official currency is stable and enjoys a good position against the euro and the dollar.
• A favorable tax scheme with more than 50 agreements to avoid double taxation
• A small yet efficient state.
• Reputable regulators 
• It has one of the best legal frameworks in the world when it comes to intellectual property protection.
• Very diversified investment areas. Singapore has flourishing markets in every imaginable industry.

All of these factors make Singapore one of our favorite jurisdictions to live and even incorporate businesses. Security, cultural diversity, great economic and legal framework, amazing location, and so on. Do not hesitate, and dare yourself to discover everything Singapore has to offer.

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