SINGAPORE (Mar 13): Singapore has been ranked the best country for startups, according to a study conducted by Value Penguin.
See: Value Penguin study on best countries in Asia-Pacific for startups
This came on the back of the city state also being rated by the World Bank as the second best country to conduct business, globally.
Singapore is one of the wealthier countries in Southeast Asia, with a GDP per capita of US$52,962 ($69,686), a low unemployment rate of 2.15%, and about 81% of the population has internet access. Singapore also has the highest education rates, with 42% of working adults having post-secondary education.
The public institutions in Singapore are also highly regarded, as the World Economic Forum has ranked them second globally.
Despite Singapore’s high cost of living, the government has implemented tax incentives for small businesses. The exemptions for startups include 75% of the first $100,000 and 50% of the next $100,000.
Hence, these factors, according to Value Penguin, make it an ideal place for startup companies to grow.
One such successful Singapore startup Value Penguin has pointed out is local gaming company, Sea (formerly known as Garena), that in Oct 2017 listed on the New York Stock Exchange (NYSE).
See: Sea selling shares at US$15 each in NYSE IPO
Trailing behind Singapore at second place is Hong Kong and Japan, sharing the spot together.
Hong Kong is very similar to Singapore and thus also considered a great location for startups. The World Bank lists Hong Kong as the third best city globally to start a business.
Furthermore, interest rates and taxes are relatively low.
Japan is another great option for startups as over 93% of its population has internet access. It also has low interest rates and at least 86% of the country’s workforce has a secondary degree.
However, it can be an expensive place to start a business, with high corporate tax rates and salary expectations.
