12 Reasons Why Singapore Remains An Attractive Top Investment Destination
Updated: May 12, 2020
12 Reasons Why Singapore Remains An Attractive Top Investment Destination
While the whole world is battling against Covid-19, Singapore is no exception.
Since January 2020, our island has been taking several measures to contain the virus. This widespread virus has escalated into a pandemic and caused panic across the world.
Many lives were lost, businesses shuttered, jobs lost and life disrupted. Many countries went into a lock down mode in a desperate attempt to contain the dreadful pandemic.
As for the real estate sector, all showflats in Singapore were closed. No physical viewing of any properties are allowed. These are amongst some of the ways to curb the spread of the Covid-19.
There are many questions regarding the uncertainty of real estate sector.
- Will the property market crash?
- Will the real estate sector continue to thrive after the whole pandemic crisis is over?
- The world have never had a pandemic for over a century, are we able to overcome and emerge strong from all the uncertainty?
Well, all these are legit concerns, let us study further and take a look at the current situation in China.
Covid-19 started in China, with the city of Wuhan as the epi-centre. During the severe outbreak in China, the country's economy came to a standstill, including the real estate sector. Like in Singapore, China has closed all showflats and prohibit physical viewing of properties.
Property sales in 30 major cities across China has rebounded threefold in March 2020... But, what has it got to do with Singapore?
With the large scale of discruption, many people would expect property prices to fall after China ease lockdown restrictions. However, it was reported that property sales in 30 cities across China has rebounded threefold in March 2020 with more than 355,000 units sold. But, what has it got to do with Singapore?
Well, China is still in the midst of recovery and the sales number is expected to increase. Apart from investing within China, many Chinese has considered Singapore as their top favourite investment destination. We would expect strong demand from China as well as other countries. Let's take a look at why is this so!
Singapore is one of the most desirable cities in the world when it comes to foreign investment. Factors such as its global economic standing, stable political landscape and support for innovation, to name a few, are the considerations that investors will consider when parking their cash.
While there are many other contributing factors that have made Singapore a top investment haven, I have selected 12 reasons that make Singapore an attractive Top investment destination for property investors, multi- national companies as well as budding entrepreneurs.
If you are pressed for time, here are the 12 reasons in simple point form, otherwise read on to find out more.
1. Most Competitive Economy
2. Easiest Place To Do Business
3. Zero Capital Gains Tax
4. Top Foreign Investment Hub
5. Political Stability
6. Least Corrupt Country
7. Stable Social Climate
8. Safest City In the World
9. Best Place for Expats to Live and Work
10. High Quality of Life
11. Best Place to Raise Children
12. Best Education
1. Most Competitive Economy
In a survey conducted by the Institute Management Development, Singapore emerge to the top and overtook United States as the Most Competitive Economy. This was driven by its advanced technological infrastructure, favorable immigration laws, availability of skilled labor, and efficient ways to set up new businesses.
Economists considered competitiveness as vital for the country's economy health in the long-term. This empowers businesses to achieve sustainable growth, create jobs and, ultimately, enhance the welfare of its citizens.
2. Easiest Place To Do Business
In a research conducted by The World Bank, the Ease of doing business index ranks countries against each other based on how the regulatory environment is conducive to business operations. Economies with a high rank have simpler and more friendly regulations for businesses.
The best performers generally have a sound business regulations with a high degree of transparency
A common factor across the highest scoring economies is the widespread use of electronic systems. The best performers generally have a sound business regulations with a high degree of transparency.
Singapore is ranked 2nd among 190 economies in the Ease of Doing Business indicator. Contributing factors includes ease of starting business, enforcing contracts, streamline procedures for giving construction permits and protecting minority investors.
You will be also glad to know that Singapore has been ranked among the Top 3 economies in the Ease of Doing Business rankings for the past 13 consecutive years!
3. Zero Capital Gains Tax
Not all countries impose capital gains tax on properties that made a profit and Singapore is one of them! While many people lament over paying additional buyer stamp duty, they have overlooked the fact that there is zero capital gain tax. This formula ensures prudent buying and prevents a bubble from forming.
As there is no capital gains tax in Singapore, the sale of fixed assets, intangible assets, gains on foreign exchange and sale of properties are not taxable. With zero capital gains tax, investors can yield higher net returns compared to investing in other cities.
4. Top Foreign Investment Hub
Singapore has long traded as regional finance capital and headquarters hub. It has received US$78 billion of FDI in 2018, indicating its attractiveness to foreign investors. FDI spurs economy, employment and resource transfer.
5. Political Stability
Singapore is politically stable and harmonious, two key factors that make our real estate a dependable place to park your cash. One more thing to note is that government seizures, or property damage from civil unrest, is highly improbable in Singapore.
On top of that, the Singapore government has also shown that when it comes to property, it is proactive in implementing measures that keep the market stable and prevent a dangerous bubble from forming.
This sort of control and emphasis on stability is rare in other countries and this keeps property from swinging from a safe asset status to a risky investment (which is exactly what happened in Hong Kong, China and Australia).
As if that’s not enough, Singapore government also imposes measures that regulate the quality of housing, such as the latest URA guidelines on maximum unit sizes. This is a commitment to keep Singapore's housing and neighbourhoods liveable. Such measures are definitely reassuring to investors over the long-term as it reduces uncertainties.
6. Least Corrupt Country
Corruption in Singapore is perceived as one of the lowest in the world. It has also set up the Singapore Corrupt Practices Investigation Bureau (CPIB) to handle cases of corruption. This agency investigates and prosecutes corruption in the public and private sectors.
According to a Transparency International survey, an overwhelming majority of Singaporeans do not witness any cases of corruption by public officials or institutions in their lifetime.
Singapore is ranked 3rd least corrupted out of 175 nations and the least corrupt in the region. Singapore is also recognised as one of the most efficient and cleanest in the world. Australia, Hong Kong and Japan were ranked 13th, 14th and 18th respectively.
Singapore remains as the only Asian country to be in the Top 10.
7. Stable Social Climate
Home ownership gives Singaporeans a stake in the nation - PM Lee
Singapore's high home ownership can be attributed to affordable public housing and usage of CPF for mortgage payment. Strong home ownership is correlated to social stability and economic benefits for families, communities and the country as a whole.
According to the latest Household Expenditure Survey, Singapore has a household savings rate of 55% which includes employer CPF contributions. This puts Singapore at the top of the World League Table of savers.
8. Safest City In the World
Singapore has positioned itself as the world's second safest city in the latest edition of the Safe Cities Index (SCI), a research done by Economist Intelligence Unit's (EIU).
This Safe index ranks 60 countries across five continents and assess at more than 50 qualitative as well as quantitative indicators spread across four categories of security. Theses categories are infrastructure, digital, health and personal.
9. Best Place for Expats to Live and Work
Singapore is known worldwide for its extravagance and wealth, it was ranked top 2nd country for expats due to its strong economic situation and high quality-of-life.
Emerged top for the fourth consecutive years based on poll of over 22,000 expats. Singapore scored in good economics, best place for families and experience.
Half of the expats had achieved career progression and 60% found that children's health and well-being is better here in Singapore than in their home town.
10. High Quality of Life
Singapore has emerge as top in terms of high quality of life. It is ranked as the country with the highest quality of living in Asia-Pacific, with the highest rank in personal safety.
Here in Singapore, we continue to see major forward-thinking policies that have enabled Singapore to develop in economy and infrastructure. These has and will continue to bring benefits to its residents.
11. Best Place to Raise Children
According to the latest annual End of Childhood report published by a non-government organisation Save The Children. Singapore is the best country in the world for children to grow up in.
Singapore performs exceptionally well across the eight indicators such as, child stunting, under-five mortality rate, out-of-school children and youth, child marriage, child labour, adolescent birth rate, population displaced by conflict, and child homicide rate.
Singapore is a excellent place for children to grow up in. There are good access to high quality education and medical care services and is also one of the safest countries in the world.
A education and war, simply don't exist in Singapore.
12. Best Education
Singapore students tops the world in Maths, Science and Reading in the international benchmarking test by PISA (Programme for International Student Assessment) and OECD (Organisation for Economic Cooperation and Development).
This is attractive for foreigners who want to make Singapore their home. Stable home and great education for their children.
Last but not least, we attribute all these to our founding father Mr Lee Kuan Yew. His foresight and meticulous planning put in place various policies which enable Singapore to shine.
Conclusion
Considering all these 12 reasons. Singapore is indeed a safe haven for property investment.
In my opinion, when the whole Covid-19 pandemic is under control, private home prices could even increase as investors starts to stream in.
So, it is definitely not a pipe dream to think that a property market rebound for Singapore is in the horizon. Singapore has every necessary ingredient in place for that to happen.
About The Author
My passion is to serve my clients in building their wealth through property investments.
With prudent planning, creative tax and financing strategies, it is possible to start your investment journey earlier in life and make time work in your favour for maximum wealth growth.
I will be glad to have a chat with you to learn more about your goals and current situation and provide you a step by step road map towards asset progression.
Jacq Ng 9764 2556