Why is Singapore better than HK as a Business Hub?
Singapore is known for its openness to global trade and investment. In a study of 30 global cities in 2014, PricewaterhouseCoopers named Singapore as the best world business hub after London. Since 2011, about 9,161 business entities have been created in the country, just 822 less than Hong Kong, which means bigger and better opportunities for businesses that are planning to expand or start in this thriving city-state. Singapore is also the 7th largest recipient of FDI (Foreign Direct Flow) in the world and the third largest in Southeast Asia according to UNCtAD 2016 World Investment Report. These are just some of the many achievements of Singapore that makes it a suitable place for business. But if you’re wondering if Singapore is really better than Hong Kong as a business hub, this valuable content piece can help shed light on your question.
Singapore has always been attuned to the needs of its investors that is why its top companies range from local to foreign businesses. Some of the most famous companies in Singapore are ANZ, BreadTalk Group, Changi Airport Group, Dell, DBS, Ernst & Young, Hewlett-Packard, HSBC, MediaCorp, Pan Pacific Hotels and many more. About 75 famous companies are actually Singapore’s top performers in 2016.
But Singapore is not just for big companies, it also has a huge place for start-up businesses. Honestbee, Ryde, Shopback, nanu, Shopee, Carousell and Chope are some of the many startup businesses in Singapore that have now gotten multi-million dollar funding.
Singapore, Definitely Better than Hong Kong
Apart from being open to a wide range of investments and the fact that it is the second best country in the world when it comes to ease of doing business, here are some of the reasons why you should invest in Singapore rather than in Hong Kong.
1. Singapore is more globally competitive than HK.
Singapore has been ranked second in overall competitiveness in the 2015-2016 World Economic Forum Report. Hong Kong came in seventh.
2. Singapore is the second easiest place to do business.
Hong Kong may have gotten the top IPO market title in 2016, but in the 2017 World Bank Report, Singapore ranked second worldwide when it comes to ease of doing business, next to New Zealand.
3. Singapore is very reliant when it comes to professional management.
The World Economic Forum’s 2015-2016 Global Competitiveness Report has revealed Singapore as the fifth most reliant country when it comes to professional management. Hong Kong ranked 23rd.
4. Singapore is one of the most politically stable countries in Asia.
Singapore ranked 11th in World Bank’s Top 20 Politically Stable Countries, while Hong Kong came in 29th. Singapore has a very stable political party and it is a country known for being peaceful and orderly. Unlike HK which is a Special Administrative Region of China, unrests are highly unlikely to take place in Singapore.
5. Singapore has better pay, better productivity and better labour-employer relations than Hong Kong.
Cooperation in labour-employer relations, as well as pay and productivity are also better off in Singapore than in Hong Kong based on the 2015-2016 World Economic Forum’s 2015-2016 Global Competitiveness Report. Although production costs are higher in SG compared with HK, many foreign investors still make Singapore their top choice because of the quality of products and services being offered in the country.
6. Singapore is leading Hong Kong when it comes to innovation and technology.
According to the Asia chairman of Aviva, Chris Weia, Singapore is leading Hong Kong when it comes to innovation and technology, especially in financial sector. He indicated that it is because the Singaporean Government fully supports innovation, which is a huge advantage in today’s modern setup. In fact, the Singapore Government gives incentives to startups and innovative firms who would like to grow their business in the country.
Over the years, Singapore has proven its suitability and sustainability for international business. It is actually becoming the preferred international business destination with Forbes Magazine including it as one of the five best Asian countries for foreign investors. Given its accessible location, innovative power, political stability and thriving business environment, any foreign company would surely flourish in Singapore, most especially if there have a trusted partner to help them along the way.
Enterprise Assurance offers a wide range of business services personalized to suit all business needs. We provide expert advice and assistance, making it easier for any company to start up a business or expand their operations in Singapore. We have a team of qualified professionals working together to ensure that we deliver only exceptional service. Talk to us and learn more about growing your business in Singapore.