About CAEXPO
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I. Overview of Investing in Singapore
 
Located on the Malayan peninsula, Singapore is a maritime center linking over 600 ports in 120 countries. Its strategic location allows it to serve as a headquarters for 37,000 international companies. The country's robust financial markets have become a key source of funding for a total market of four billion people within a seven-hour flight radius.
 
Advantages of Singapore
 
It contains thriving trade and financial sectors. Singapore has an extensive trade network amounting to 20 free trade agreements with 31 trading partners. The country also ranks as the fourteenth largest export economy and the fifteenth largest importer. Its stock market, the Singapore Exchange Limited, has a market capitalization of around $7.1 billion, as of December 2019.
 
It boasts a pro-business environment. Its low corporate tax rate of 17% and low level of corruption, a product of anti-corruption laws and audits, have made it home to 7,000 multinational corporations from the U.S., E.U., and Japan and 3,000 companies from India and China.
 
It has a skilled workforce. It attracts more most skilled workers from abroad than any other country in Asia, according to KDM Engineering. More than half of the labor pool comprises white-collar workers.
 
It features advanced infrastructure. Singapore has highly developed physical transportation, including over 100 international airlines. Its digital infrastructure is also superlative, offering broadband coverage to over 99% of the country.
 
 
II. Incentives & Schemes
 
To develop high-value and substantive economic activities, Singapore encourages businesses to upgrade their capabilities or expand the scope of their business operations in Singapore through several incentives and schemes.
 
1. Pioneer Certificate Incentive (PC) & Development and Expansion Incentive (DEI)
 
The Pioneer Certificate Incentive (PC) and the Development and Expansion Incentive (DEI) aim to encourage companies to grow capabilities and conduct new or expanded economic activities in Singapore. Companies that carry out global or regional headquarters (HQ) activities of managing, coordinating and controlling business activities for a group of companies may also apply for the PC or DEI for the HQ activities.
 
An approved company under the PC or DEI is eligible for a corporate tax exemption or a concessionary tax rate of 5% or 10%, respectively, on income derived from qualifying activities.
 
The incentive period is limited to five years. Extension of the incentive may be considered, subject to the company’s commitment to undertake further expansion plans.
 
The company is required to maintain a separate account in respect of any non-qualifying activity undertaken during the incentive period. The income from the non-qualifying activity is not eligible for the incentive.
 
2. Finance & Treasury Centre (FTC) Incentive
 
The Finance and Treasury Centre (FTC) Incentive aims to encourage companies to grow treasury management capabilities and use Singapore as a base for conducting strategic finance and treasury management activities.
 
An approved finance and treasury centre (FTC) company is eligible for a reduced corporate tax rate of 8% on income derived from qualifying FTC services to approved network companies (ANCs) as well as qualifying FTC activities carried out on its account with funds obtained from qualifying sources.
 
An approved FTC company is also eligible for withholding tax exemption on interest payments, such as interest on loans obtained by the approved FTC from banks, non-bank financial institutions and ANCs outside Singapore, provided the funds are used for its approved qualifying activities or services.
 
The incentive period is limited to five years. Extension of the incentive may be considered, subject to the FTC company’s commitment to undertake further expansion plans on its FTC activities/services.
 
The FTC company is required to maintain a separate account in respect of any nonqualifying activity undertaken during the incentive period. The income from the non-qualifying activity is not eligible for the concessionary tax rate.
 
3. Aircraft Leasing Scheme (ALS)
 
The Aircraft Leasing Scheme (ALS) is aimed at encouraging companies to develop aircraft leasing capabilities and grow the aircraft leasing industry in Singapore.
 
An approved aircraft leasing company is eligible for a concessionary tax rate of 8% on income derived from the leasing of aircraft or aircraft engine and qualifying ancillary activities.
 
An approved aircraft leasing company is also eligible for withholding tax exemption on interest and qualifying related payments on loans obtained for the purchase of aircraft or aircraft engines.
 
The incentive period is limited to five years. Extension of the incentive may be considered, subject to the company’s commitment to undertake further expansion plans on its aircraft leasing activities.
 
The company is required to maintain a separate account in respect of any non-qualifying activity undertaken during the incentive period. The income from the non-qualifying activity is not eligible for the incentive.
 
In addition, there are incentives and grants including Research Incentive Scheme for Companies, Training Grant for Company, Intellectual Property (IP) Development Incentive, etc.
 
 
III. Infrastructure
 
Singapore enjoys the busiest container terminal, airport with first-rate service and the widest broadband Internet system and telecommunication network.
 
1. Road
 
Singapore’s roads cover 12% area of Singapore’s land, which form Singapore’s road network based on eight expressways. Until the end of 2017, the total mileage reaches 3496km, with 164km expressway. Aiming at easing traffic congestion, the government implemented systems of vehicle quota and tender for certificate of entitlement. In addition, there are 93 electronic toll gates since 1998, the year of beginning to implement electronic road pricing. At the end of April of 2019, the total number of motor vehicles reached 961.6 thousand.
 
2. Railway
 
19 July in 2016 marked the officially start of Kuala Lumpur-Singapore High Speed Rail, which projected to be 350km long.
 
Singapore has an advanced rail traffic. The total length of rail traffic reached 228.1km by the end of 2017. The Mass Rapid Transit is 199.3km long with 141 stops and the Light Rail Transit is 28.8km long, with 42 stops.
 
In 2011, Singapore put forward a plan of metro construction, expecting 50 billion USD investment within 10 years. In the early 2013, Singapore declared to enlarge the metro network from 178km to 360km by 2030, planning to meet the goal of being able to reach a metro station within walking distance. The metro routes under construction and planned to build include Thomson-East Coast Line, Jurong Region Line, the Circle Line, Circle Line 6, etc. 
 
3. Air Transport
 
Singapore is an important air transport hub of Asia-Pacific area. In 2018, the Changi International Airport welcomed over 64 million tourists and about 2 million tons of cargo, and over 386 thousand flights took off and landed in the airport. Awarded as the “the best airport”, over 100 airlines are operated here and their flights fly to over 400 cities.
 
In September of 2012, the Changi Airport closed budget terminal and built the fourth terminal being able to welcome 16 million passenger per year. Once completed, the passenger capacity per year of Changi International Airport can increase to 85 million people. Singapore has declared the expansion plan of Changi International Airport in 2012, increasing 77% area to 2300 hectares. Based on the passenger volume, Changi Airport will build one or two terminals at the expansion area and add facilities of airplane maintenance, repair and overhaul and aviation logistics. The Terminal 5 is undergoing the phrase of planning, designing and bidding, which will be completed during 2025 to 2030 with over 50 million passenger throughputs.
 
4. Waterway Transport
 
As one of the busiest ports and transit hubs, also the largest fuel oil supply port in the world, Singapore has over 200 flight routes to more than 600 ports of 123 countries and regions, 5 container terminals and 54 container berths. Singapore is the second largest container port of the world, after China’s Shanghai.
 
Singapore port will remove to Tuas Port from Tanjong Pagar in phrases before 2027. Tanjong Pagar will be rebuilt to be a new coastal city, integrating functions of commerce, tourism, leisure and residence. Tuas Port has been started to build for the first phrase in 2016 and will be developed within 30 years for 4 phrases.
 
 
Reference: 1. Chinese Ministry of Commerce Department of Outward Investment and Economic Cooperation
2. The Balance
3. Singapore Economic Development Board
2020-10-24 10:14:39