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Singapore remains one of the easiest places to do business in: TMF Group report
SINGAPORE – The Republic is second in Asia in terms of the ease of doing business here, according to a report by professional services firm TMF Group released on Wednesday (June 17).
The Global Business Complexity Index studied 77 jurisdictions across the world, based on indicators such as legislation, accounting procedures, tax regimes and human resources rules.
Singapore ranked 18th in the index, behind Hong Kong, which ranked 12th. The top jurisdiction was Curacao, an island state that is part of the Kingdom of the Netherlands, followed by the United States.
“Despite these uncertain times, Singapore is still a highly attractive regional and international business hub given the relative simplicity of doing business here,” said Mr Edmund Lee, TMF Group managing director for Singapore.
“Even so, evolving compliance requirements and strict enforcement may make it more intricate to do business than before, and Singapore firms need to better understand the rules of engagement with regulators and integrate them into their policies.”
The index showed that Singapore’s strengths lie in its accounting and tax standards, which are aligned with international financial reporting standards. It also provides clarity and relative ease in filing requirements.
Singapore’s competitive corporate tax rate of 17 per cent and double tax agreements signed with over 80 different countries also make it attractive for doing business.
“Additionally, the government’s continued focus on digitisation has resulted in simplified e-filing processes,” TMF Group said in a press release.
Singapore also benefits from transparent employment and payroll guidelines, together with ease in hiring and a focus on talent, it added.
It also pointed to the raising of the retirement and re-employment ages as a boost to the country’s available workforce.
But Singapore also has areas of rising business complexity, for instance, in greater enforcement of basic compliance obligations like convening annual general meetings and filings.
Still, it remains a gateway to Asia, with its strategic location and stable sociopolitical environment, Mr Lee added.
TMF Group also noted that businesses need to prepare for fast-evolving regulations in the Asia Pacific, which have been accelerated by the outbreak of the pandemic.
For instance, there is a shift away from stringent auditing processes to provide relief to businesses affected by the pandemic. Governments are also recognising the importance of creating an easier environment for foreign direct investment.
It added: “The coronavirus is bringing many challenges to businesses around the globe but providing support to employees is a high priority.
“Following the Covid-19 pandemic, we are likely to see a continued impetus towards a global business environment, with international bodies stepping up measures to coordinate and regulate trade across borders to benefit all stakeholders. An emphasis on technology and modernisation will act as the drivers to place the post-pandemic global economy back on its feet.”
Source: https://www.straitstimes.com/business/companies-markets/singapore-remains-one-of-the-easiest-places-to-do-business-in-tmf-group