Singapore aims to simplify business regulations

Singapore is set to streamline its business regulations in a bid to foster innovation and reduce costs for companies, as global economic competition intensifies. Prime Minister Lawrence Wong announced the initiative during his first National Day Rally speech, emphasizing the need for the city-state to remain an attractive destination for businesses, particularly small and medium-sized enterprises (SMEs).

Acknowledging Singapore’s traditionally business-friendly environment, Wong noted that regulations have grown more complex over time, sometimes leading to unnecessary burdens on companies. To address this, he has tasked the Deputy Prime Minister with overseeing a comprehensive review of the nation’s regulatory framework. The aim is to prune back excessive rules and streamline processes where possible, making it easier for businesses to operate.

One of the notable changes highlighted by Wong is the revision of regulations for organizing drone shows in Singapore. Previously, organizers faced high compliance costs due to the need to secure permits, register each drone and affix stickers to them. For a show using 1,000 drones, this could amount to over S$25,000. Following the reforms, only a single permit is required, and the sticker requirement has been eliminated, reducing the cost to just S$500.

The initiative comes as Singapore faces increasing pressure from shifts in global economic policies. Developed countries are moving manufacturing back within their borders, while developing nations, including China, are advancing their technological self-sufficiency. Wong highlighted that Singapore must adapt by investing in research, development and new technologies to maintain its competitive edge.

In recent years, Singapore has attracted significant investments from global giants like Pfizer, Vanguard International Semiconductor and AstraZeneca, which are expanding their operations in the city-state. These investments are seen as a testament to Singapore’s stability and reliability as a business hub.

The regulatory overhaul is part of a broader strategy to support SMEs and encourage entrepreneurial spirit, as Singapore seeks to navigate the challenges of a rapidly changing global economy.