With the deepening of global economic integration, going global has become an inevitable choice for many enterprises. Among numerous destinations, Singapore stands out as the preferred choice for overseas companies due to its unique advantages and favourable business environment. Today, let’s explore the “SG+” strategy and how it supports enterprises in better positioning themselves in the Southeast Asian market.

 

What is the “SG+” Strategy?

(Source: EDB)

The “SG+” strategy involves using Singapore as a foundation for overseas expansion by establishing a headquarters or regional hub while simultaneously setting up production facilities or R&D centres in other locations. This strategy enables companies to leverage Singapore’s political stability, robust legal framework, and favourable tax system while meeting local market needs with dedicated production or R&D facilities.

To facilitate the “SG+” strategy, Singapore has introduced the Southeast Asia Manufacturing Alliance (SMA), encompassing 10 industrial parks in Indonesia, Malaysia, and Vietnam. These parks offer one-stop services and incentives, significantly reducing business risks. Notably, the Singapore-Johor-Riau Growth Triangle provides a standout example. Companies can establish production bases in Johor while leveraging Singapore as a hub for headquarters, logistics, R&D, and financial settlement to achieve global operations and efficiency.

 

Why Choose the “SG+” Strategy?

(Source: EDB)

The “SG+” strategy helps businesses expand their market reach, boost international competitiveness, and enjoy Singapore’s supportive policies and measures:

    • Market Expansion: This strategy allows enterprises to strengthen their presence in Singapore while exploring new opportunities in Southeast Asia and beyond, enhancing global competitiveness and market share.
    • Policy Incentives: Singapore offers benefits like tax exemptions or reductions, financial innovations, and robust intellectual property protection, creating a supportive environment for business growth.
    • Business Advantages: Singapore’s openness, transparency, fairness, stability, and strategic location provide businesses with a favourable ecosystem for development and global expansion.

 

Pathways and Measures for the “SG+” Strategy

(Source: EDB)

To drive the implementation of the “SG+” strategy, the Singapore government has rolled out measures to enhance the business environment. These include promoting free trade and investment, offering tax and financial incentives, and maintaining a stable business ecosystem.

    • Free Trade & Investment: Singapore has signed Free Trade Agreements (FTAs) with the EU, US, Mercosur, China, and others, alongside the Regional Comprehensive Economic Partnership (RCEP). These agreements eliminate trade barriers and create an open and favourable market environment.
    • Tax Incentives & Financial Support: Singapore boasts one of the world’s lowest corporate tax rates, with additional exemptions or reductions for specific sectors and projects. Financial innovations like the establishment of GIC further support enterprise investment and financing.
    • Stable Business Environment: Singapore ensures a secure and reliable business climate through leading IP protection mechanisms and strict anti-corruption and anti-money laundering measures.

 

Structural Design for Overseas Expansion

Under the “SG+” strategy, common business structures include wholly-owned or joint ventures, investment holding companies, import-export and cross-border trade setups, intellectual property holding companies, and Variable Interest Entity (VIE) structures.

 

Which Enterprises Benefit Most from the “SG+” Strategy?

The “SG+” strategy is suitable for all types of businesses, particularly:

  • International Expansion Seekers: Ideal for Chinese enterprises aiming to enter global markets and boost competitiveness.
  • Manufacturing Companies: Leveraging Singapore’s regional network, businesses can establish cost-effective production bases. Industries include automotive, new energy, electronics, appliances, machinery, chemicals, textiles, etc.
  • Gaming and Software Enterprises: Southeast Asia’s vast market, with similarities to China, offers significant growth opportunities for game and software companies.
  • Trade and Logistics Firms: Singapore’s strategic port location makes it a prime choice for global trade expansion, including logistics, warehousing, transportation, and supply chain management.

 

Conclusion

The “SG+” strategy provides a new perspective and strategic leverage for global expansion, further elevating Singapore’s position as a prime destination for investment and business activities. As an economically advanced, politically stable, and legally sound nation with a superior business environment, Singapore offers unparalleled opportunities for enterprises to expand market share and leverage extensive incentives and unique locational advantages. Looking ahead, the continued implementation of the “SG+” strategy promises unprecedented opportunities for enterprises investing and expanding in Singapore and Southeast Asia.

Why Choose SIG for Your Incorporation Needs?

At SIG, we stand out in Singapore for business consulting and services, offering a unique blend of professionalism and personalised attention. Here’s why you should entrust us with your incorporation process:

    • Expertise that Matters: Our seasoned team of experts brings a wealth of knowledge in business incorporation, ensuring you navigate the complex landscape with ease.
    • Proven Experience: With years of successful incorporations under our belt, we bring a track record of turning aspirations into thriving businesses.
    • Tailored Solutions: We understand that every business is unique. Our incorporation services are customized to suit your specific needs, ensuring a solution that aligns with your vision.
    • Comprehensive Resources: From legal requirements to documentation, we’ve got it all covered. Our robust resources streamline the process, saving you time and effort.
    • Extensive Network: Leverage our extensive network of industry connections. We can help open doors and create opportunities for your business from day one.

Embark on your entrepreneurial journey with confidence. At SIG, we’re not just about incorporating businesses; we’re about launching success stories. Contact us today to explore how our incorporation services can set your business on the path to greatness.