Organisation:
InCorp, Singapore Economic Development Board
Resource Link:
Published in 2022, Link
My Key Takeaways
“SEA’s population is 50% bigger than the EU and about double the number of the US, while its unique culture and heritage create demand for specific products.”
Some takeaways from a guide by InCorp Global and Singapore Economic Development Board (EDB) to help companies navigate fast growing opportunities in Singapore (SG) and Southeast Asia (SEA):
Why SEA you say?
With 669M people, SEA is already the fifth largest economy globally, and continues to punch above its weight.
SEA’s share of global foreign direct investments rose from 11.9% in 2019 to 13.7% in 2020.
Market Entry Tips and Case studies (page 10)
“Many provincial and regional capitals are attracting infrastructural investment, and are growing at a faster rate than the high-profile capital cities. This is also where the middle class will next emerge.”
➡️ Azelis (Belgium-based global specialty chemicals and food ingredients distributor) – APAC HQ & logistics hub in SG, 8 application labs in SEA
➡️ Blackmagic Design (Australia-based broadcast and cinema hardware company) – production and distribution operations in SEA grew 10-fold to support global markets, Singapore RHQ, factories in Singapore and nearby Batam, Indonesia.
Page 7 provides a list of SEA’s trade agreements so you don’t miss out on tariff savings for your products.
SEA country-level reports (pages 13-77) and sections to note:
- Singapore
- Brunei
- Cambodia
- Indonesia
- Laos
- Malaysia
- Myanmar
- The Philippines
- Thailand
- Vietnam
Each country report starts off with a summary of a market’s key characteristics. For example, Singapore received the third largest inflow of foreign direct investments globally in 2020.
For SEA’s largest country Indonesia, the fast-growing middle class drives its economic growth. The demographic’s consumption grew at 12% annually since 2002!
➡️ Connectivity (Free Trade Agreements, land, sea & air transport infrastructure) – take note of this segment if you are considering a HQ or logistics hub
➡️ Key sectors & growth areas – insights to gauge a SEA country’s fit for your investment strategy
➡️ Talent – list of top national universities for your talent acquisition strategy
➡️ Registering a company – overview of set up requirements, steps & time, and a recommendation of the ideal type of entity to incorporate.
In Singapore, it takes 2 steps and 1.5 days to incorporate a company compared to 11 steps and 12.6 days in Indonesia, and 9 steps and 173 days in Laos.
Although the representative office is a common incorporation choice for some Asian countries, the benefits of a private limited company in SG far outweigh other options in the country.
➡️ Tax system – take note of corporate and dividends tax rates, double taxation avoidance agreements, and fiscal incentives to support your regional HQ and innovation activities
No time to read the country writeups?
See a summary of 10 SEA countries (global competitiveness rankings, incorporation process, key sectors and growth opportunities) – Pages 13, 84
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Reach out if you are an EU/UK company and want to brainstorm / bounce off ideas on SG and SEA!
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About Zhilin SIM
Having worked and lived in Singapore, the Nordics, China, Spain, UK, I’m now based in Paris.
I’m fluent in English, French and Mandarin, and I’m learning Arabic because it’s a beautiful and fascinating language.
My team creates and supports one-many initiatives connecting corporate and startup ecosystems in Europe to business and innovation opportunities in Singapore and Southeast Asia.
I’m passionate about horticulture, watercolour, startups/tech as well as French cuisine, Peranakan kueh techniques and other global cuisines.
Feel free to connect with me if you think my network in Europe and Asia could be of benefit to your business and innovation activities.
