Singapore remains a top choice for business despite obstacles

Singapore continues to rank as one of the most favorable environments for business globally, securing the 47th spot out of 79 jurisdictions in the latest Global Business Complexity Index (GBCI). The city-state remains particularly attractive to foreign small and medium-sized enterprises (SMEs) looking to establish a presence in the Asia-Pacific region, thanks to its streamlined business incorporation process and transparent regulatory framework.

According to the GBCI, which evaluates the complexity of doing business across various countries, Singapore stands as a relatively straightforward jurisdiction for companies, especially for those entering the market for the first time. The country’s well-organized government processes and efficient legal systems contribute to its reputation as a business-friendly hub.

However, the index also highlighted some regulatory challenges that companies operating in Singapore may encounter. The nation’s rigorous Anti-Money Laundering (AML) regulations and compliance frameworks, while essential for maintaining its status as a global financial center, impose higher reporting obligations on businesses. Local tax laws and mandatory contributions to the Central Provident Fund (CPF) also add complexity to payroll processes.

Despite these obstacles, Singapore’s long-term political stability, secure environment and highly educated workforce continue to make it an attractive destination for investors. The GBCI also recognized Singapore’s ongoing investment in business infrastructure as a key driver of its economic success, affirming the nation’s position as a leading choice for businesses worldwide.