UOB rates Singapore as top destination for expansion among Asian companies
Asia has always provided lucrative and profitable opportunities for global companies looking to expand or diversify their reach, given relatively high GDP growth. According to the IMF, Asia-Pacific economies are still expected to grow about 5.3% in 2016-17, comparing favourably against its European and American counterparts.
A recent study from Mckinsey shows major economies in Asia are experiencing sustained GDP growth, with Asean sitting just right behind China and India, clocking an impressive growth of 5.1% through 2000-13. UOB has freshly published their latest Asian Enterprise Survey 2016 polling mid-cap companies in six markets – Namely China, Hong Kong, Indonesia, Malaysia, Singapore and Thailand. They rated Singapore as the No.1 destination to expand their business. Below – We summarize the key findings from UOB’s report and for a full-report, you may access direct at UOB site here.
Opportunities in Southeast Asia
- Over 600 million people, a growing and vibrant middle class
- Strong GDP growth, only behind China and India
- Total trade exceeding US $2 trillion
- Abundance of natural resources – Copper, tin, coal, lumber and many more
When it comes to top expansion location for Asian Enterprises, Singapore still sits atop despite its slower growth versus its peers. We have discussed the five reasons you shall start a business in Singapore and UOB’s poll shows business owners in the region are buying into Singapore’s tax-friendliness, strategic location and supportive government policies among others.
A good 41% rate the city-state highly for its stable economic climate. As expected, favourable corporate tax in Singapore remains a key magnet for foreign businesses.
When asked about key concerns among business owners, 54% cited rising business cost. Increasing competition comes in second with 42% of respondents flagging it. Fortunately, the Government of Singapore has been proactive with business grants to support local SME, improve productivity, and manage costs.
Featured subsidies available to Singapore corporates:
Lastly – Asian Enterprises have been investing mostly with R&D (39%) and IT systems (37%) to improve cost-efficiencies. A good 32% are investing in employee training and skills upgrading to lower turnover and improve productivity.