SINGAPORE: A Financial Times (FT) ranking has listed Singapore as having the most number of high-growth firms in the Asia-Pacific region –93– in comparison to rival cities Tokyo and Seoul, even though on a countrywide basis, Japan and South Korea have more such firms.
In a piece published on Thursday (4 Apr), FT took a look at how, despite its small size, Singapore has been able to attract investors and entrepreneurs, in large part due to its “strategic location within south-east Asia, supportive government policies, strong legal frameworks, and a mix of both local and foreign workers.”
What has also worked strongly in Singapore’s favour of late is the neutral stance it has taken in the tensions between the two largest economies in the world, the United States and China.
The FT piece quoted one businessman as saying, “Singapore is neutral, it is the Switzerland of Asia. This is important with the geopolitical situation globally. There is a big pool of talent, you can deliver to the world and the city has a strong law-abiding reputation.”
The businessman, Mr Dylan Ng, co-founded a firm, Lionsbot, in the 23rd spot on FT’s High-Growth Companies Asia-Pacific 2024. Most of Lionsbot’s customers are overseas and the company, which manufactures cleaning robots, is expanding further this year, having raised US$35 million (S$47 million) in funding in 2023.
In April of last year, the Economist Intelligence Unit (EIU) reported that Singapore retained “its position as the world’s best business environment for fifteen consecutive years,” largely due to its economic and political stability.
Read related: Singapore, No. 1 in the world for best business environment, 15 consecutive years!
“Singapore continues to be one of the most stable and business-friendly countries in the world. We have been steadfast advocates of free and open trade and a rules-based global multilateral trading system. Our strong legal system and fiscally sustainable approach to governance have been critical enablers of a stable and business-friendly environment,” the Ministry of Finance boasts.
Mr Ng, as well as other entrepreneurs on FT’s list, praised Singapore for the ease of doing business in the city-state, although the article notes that in recent years, the business costs have gotten higher.
This is the number one challenge facing firms these days, according to a January survey from the Singapore Business Federation, with high manpower costs particularly singled out. /TISG