Should I Invest in Singapore?

The bustling city-state of Singapore is among the first newly industrialised countries in South-east Asia. Even according to the World’s Top Most, it is 2017’s 3rd richest country in the world. Hence, it’s no doubt that Singapore is one of the Four Asian Dragons or Asia’s Economic Tigers. Even if almost everyone is aware that it is Asia’s Financial Hub, some still have doubts on whether or not it is really a good move to invest in Singapore’s economy.

When we talk about investing in general, one word always comes to mind (as it should): RISK. In a simple way to put it, investing is done when you want to maximize the profit you will make beyond the total amount of risk you have taken. People usually have second thoughts and doubts on investing generally because: they don’t want to take risks, they are not sure what to invest in or they don’t know who they should deal with when making an investment.

Foreign Investments in Singapore

Investing in foreign economies is technically a bigger and more complicated picture. You’d have to assume risk because of currency exchange, geopolitical issues, economic stability, credit ratio, and others. According to US News Best Countries, these are some of the things they need to consider in ranking and analyzing the best countries in the world to invest in:

  1. Rate of government corruption
  2. Labor force
  3. Economic stability
  4. Dynamism and strength of the economy
  5. Tax environment
  6. Entrepreneurial factors
  7. Innovation
  8. Technological Expertise

As you read on, you’ll see how Singapore fares on all these factors and determinants that make a country attractive in an investment standpoint.

News and Trends

Upon researching and reading up on financial trends, you will find some not-so-good news on Singapore’s economy just like having slow productivity growth, a weakening property market, declining stock market, limited manpower and deflation. But honestly, many other countries experience that too. As a matter of fact, US’ growth is struggling by 3% this year, while Singapore is at around 4-6%; so as a financial outlook, that is is still strong amongst all other countries in the world. What we’re saying is that, no economy is ever perfect. What you need to do in order to fight those negative trends and get the profit you’re aiming for, is to know where to invest in and when you need to do it.

There is of course good news about Singapore today. It isn’t referred to as the strongest economy in Asia for nothing. Based on a US research done last year, Singapore ranks 2nd in the Investment Destinations in the World. It is also the Top Country in Asia according to the 2015-2016’s Global Competitiveness Report. And in the latest rankings done by US News, the country is at #2 in their overall list of the Best Countries in the World to Invest In – with a GDP of SG$307.9B and SG$85,382 GDP per capita.

Why Invest in Singapore?

If the global rankings today aren’t enough motive for you to invest in Singapore, here are some of the key reasons why you should (also in relation to the foreign investment key considerations aforementioned):

  • Stable governance – the country prides itself for having zero corruption and lowest crime rate in the world;
  • Their port is still the World’s Busiest Ports in terms of total shipping tonnage;
  • Low tax burdens;
  • Highly transparent business regulatory environment;
  • Most efficient transportation facilities;
  • World-class infrastructure;
  • Strength of their labor force and goods market;
  • Strong focus on education;
  • Low unemployment rate;
  • Booming electronic and pharmaceutical industries;
  • GDP per capita is very high with low inflation rate;
  • Free market innovation.

In addition to all these, the Monetary Authority of Singapore expects their GDP to grow even more at a rate of 2.0 to 3.0 this year, and then about 2.3% forecasted growth for 2018.

The EAPAC Advice

Again, whether you are investing locally or internationally, there will always be risk of experiencing some setbacks. All you need to do is choose correctly where you put your funds in. So if you are considering on investing your hard-earned money on international markets, or more specifically in Asia, choosing Singapore is one of the best financial decisions you’ll ever make. The Singapore economy is highly dynamic and resilient and it gives you the freedom to choose where you should invest your money in. You can either invest your money in Singapore Savings Bonds, CPF Special Accounts, STI Exchange Traded Fund, Corporate Bonds, Real Estate Investment Trusts, Small and Medium Enterprises and a lot of other options.

So if you’re going to ask us if you should invest in Singapore, our answer is – a resounding YES! If you’re going to pick among Asia’s Four Tigers, Singapore is your best bet yet. Remember, a smart investor is someone who looks at long-term results. So don’t miss out on the current opportunities and take advantage of the its impressive growth over the years.

And if you have no idea how to start investing, all of us here at Enterprise Assurance PAC are more than willing to help you out. We are experts when it comes to investing or doing business in Singapore. Just call us up and we’d be happy to help you make your investment plans pan out.

 

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