Chinese enterprises are increasingly turning to Singapore as a strategic hub for expansion, driven by the city-state’s favourable business climate and its vital role as a gateway to Southeast Asia, according to a recent report by the China Enterprises Association (Singapore).
The findings, published Monday (30 Dec) during the Fifth China-Singapore Economic and Trade Cooperation Forum, reflect a growing confidence in Singapore’s business environment.
The survey, which involved over 100 Chinese companies across various sectors, revealed that 67 percent of respondents rated the business climate in Singapore as “excellent,” while 33 percent described it as “good.” These positive assessments point to the nation’s appeal as an ideal location for investment and growth.
Singapore’s efficient government services, competitive tax system, and ease of international trade were identified as key attractions by the surveyed companies.
These factors have bolstered optimism among Chinese businesses, with 60 percent of respondents planning to increase their investments both locally and across the Southeast Asian region.
Additionally, 74 percent of companies expect their investments in Singapore to continue growing in the near future.
The country’s strategic location also plays a crucial role in its appeal. A significant 91 percent of the surveyed enterprises acknowledged Singapore’s importance in providing access to Southeast Asian markets, further enhancing its value as a business hub.
Chinese enterprises are also making notable contributions to the local economy. The report highlights that 54 percent of respondents employ a workforce in which Singaporeans make up more than 60 percent, demonstrating strong integration into the local labour market.
Furthermore, 58 percent of companies pointed to their contributions to innovation in technology and services, while 40 percent emphasized their role in advancing green development.
However, the survey also pointed to several challenges facing Chinese businesses in Singapore. Intensifying market competition and talent shortages were cited as significant issues, with 86 percent and 72 percent of companies, respectively, identifying these as key concerns.
To address these challenges, many businesses are calling for greater support from both the government and the China Enterprises Association.
The survey results reflect the strong and growing presence of Chinese businesses in Singapore, highlighting the country’s role as a crucial partner in the economic expansion of Chinese enterprises in the Southeast Asian region.