Page 7 - Doing Business in Singapore

OVERVIEW OF SINGAPORE

Political and Economic Stability
Singapore is a parliamentary republic, with the People’s Action Party (PAP) as the nation’s ruling political party
since 1959. Since 1978, Singapore has been largely strike-free and the nation’s peaceful industrial relations have
often been attributed to its tripartite model.

Established in 1972 to formulate wage guidelines to ensure Singapore’s long-term economic growth, the National
Wages Council (NWC) is a tripartite body comprising representatives from employers, trade unions, and the
government. The NWC meets every year to deliberate wage and wage-related matters and issues related
guidelines based on the tripartite consensus reached.

Corporate Governance and Transparency
High corporate governance standards play an important part in maintaining Singapore’s position as an international
financial centre. The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) have shared
oversight of corporate governance of listed companies since September 2007. Singapore also has a revised Code
of Corporate Governance issued by the MAS in 2018. While compliance with the Code is not mandatory, listed
companies are required under the SGX Listing Rules to disclose their corporate governance practices and explain
deviations from the Code in their annual reports.

Singapore is ranked among the world’s least corrupt countries, taking fifth place worldwide in the Corruption
Perceptions Index (CPI) 2022 released by the global anti-graft movement, Transparency International (TI).

Pro-business Environment
Singapore has been recognised for its conducive pro-business environment. According to the World Bank
Group’s Doing Business 2021: Comparing Business Regulations in 190 Economies report, Singapore ranked
second worldwide in terms of the ease of doing business.

The Country also has the third most competitive economy in the world, supported by factors such as its world-
class infrastructure and strong focus on education, according to the IMD’s World Competitiveness Ranking 2022.

Competitive Tax Rates
Singapore’s government believes in keeping tax rates competitive for both corporations as well as individuals.
Such a policy aims to maintain Singapore’s attractiveness as a foreign investment destination and encourage
entrepreneurship.

Robust Intellectual Property Regime
Singapore came in second worldwide in intellectual property (IP) protection, according to the 2021 Bloomberg
Innovation Index report. Its robust IP regime is built on a trusted legal system and strong IP arbitration
capabilities. To support IP dispute resolution in Asia, Switzerland-based World Intellectual Property Organisation
established an Arbitration and Mediation Centre in Singapore, its only centre outside Geneva.

High Literacy Rate
Figures by Singapore Department of Statistics showed that Singapore had a literacy rate of 97.6% among
residents aged 15 years and older in 2021.

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