Easy to do business in Singapore – Asia’s hottest tech hub?
With one of the freest economies in South East Asia, ranking 2nd in the 2015 index, Singapore’s open door policy have attracted many investors. Singapore ranks second on the World Economic Forum’s global competitiveness. Entrepreneurs have also been attracted to Singapore for its economic ease and flexibility. The World Bank has indicated Singapore as one of the easiest places to close a company if it were to fail.
It also only takes two and a half days to get a business permit in Singapore. The ease in conducting business in Singapore has resulted in a growing tech start-up scene that has been benefiting from its proximity to some of Asia’s main markets. This start-up scene has served as a nest for both investors and talents. Recently, Chinese tech giant Tencent signed a 27$ million deal for 49% stake in a Singaporean gaming company “Level Up”.
Singapore’s government has also taken a crucial role in its growing start up economy by funding local technological innovation. Recently it has invested $100 million Singapore dollars (US$ 79 million) for early stage startups. “Technology Incubation Scheme”, a government program co-invests up to 85% of capital in select startups and technology incubators – organizations that provide mentoring and space – invest the remaining 15% and are allowed to buy out the government’s stake after three years. Currently the program has 15 incubators and more than 100 startups.
US investment has also contributed a significant amount to this start up economy. Renowned U.S. venture capital firms - such as Andreessen Horowitz - have funded local startups, including video site Viki. Another Singaporean tech firm that has been attracting investors is RedMart, an online grocery delivery service founded in 2011, which as already raised over $10 million from investors including Facebook co-founder Singaporean resident Eduardo Saverin.
Singapore’s government has also been trying to bring in more U.S. startups into the nation. Infocomm Development Authority of Singapore, another government organization focused on growing the country’s tech industry, recently opened a new office for investments in the US, known as Block 71 San Francisco. Entrepreneur programs run by the National University of Singapore have also been in touch with Block 71. Block 71 aims to help Singaporean companies break into the U.S. market. However, the program could also result in greater U.S. investment into Singapore and Asia.
Infocomm Investments and Block 71 are part of a larger project known as “Smart Nation” which was launched in December 2014. Smart Nation aims to expand Singapore’s tech industry. Several investment projects that had its roots in Singapore has also expanded to other Southeast Asian nations. GrabTaxi, a car-hailing app that now spans over Southeast Asia with over $330 million in funding, began in Singapore. Despite its small market, Singapore is the base of some of the world’s most well known investors and is becoming one of Asia’s hottest tech hubs.