Why Singapore is the top destination for tech startups
A 2017 Nestpick index ranked Singapore as the leading destination for tech startups, ahead of Helsinki and San Francisco. The Nestpick metric looks at various aspects while ranking, including salary, existing infrastructure to support startups, and quality of life, among others. That Singapore eclipsed even San Francisco, where the Silicon Valley is based and which has for many years taken the undisputed number 1 position as the global startup capital could be a surprise for many. While the salary metrics and startup ecosystem in San Francisco were better than in Singapore, it ranked lowest when it comes to the quality of life while the cost of living is very high. The rise of Singapore as an innovation hub has played a crucial role in attracting startup talent to the city. Below, we explore some of the reasons why Singapore is the top destination for tech startups.
Highly educated workforce
Singapore has one of the most educated workforce. The young and experienced software engineers have greatly contributed to the advancement of tech talent in the country. Besides, the pool of high-quality tech talents in Singapore is also comparatively inexpensive in comparison with other top ecosystems.
Government support
The Singapore government supports business startups in a big way by creating an environment that is conducive to the thriving of startups. For instance, the Tech-Pass program launched in 2020 by the Singapore Economic Development Board supports the entry of over 500 tech leaders, experts and founders from around the world into the country.
Delayed Tax exemption
The Singapore government as a young startup in Singapore, you need not worry about your tax obligations, at least not immediately. Through the Startup Tax Exemption Scheme, a young startup is exempted from paying tax on 75 per cent of its initial $ 73,000 in income. This way, you have time to grow your business and only start paying tax once you are fully established.
High growth in Fintech and Blockchain initiatives
The Fintech and Blockchain industry in Singapore has enjoyed remarkable growth in recent years. Singapore’s Fintech and Blockchain sub-sectors are ranked 5th and 4th, in that order, in the Global Startup Ecosystem.
An open economy
Singapore operates under an open economy, with leading technology companies having business proceedings in the country. This demonstrates the ease of doing business in Singapore. A foreign tech startup would also benefit from the various FTA agreements between the Singapore government and its trade partners.
Digitally-motivated governance
The Singapore government is highly committed to becoming the most technologically efficient country in all sectors of the economy. They include education, innovation, transportation and urban planning. Such a transformative ecosystem would be a key source of attraction for tech startups.
Final thoughts
If you are planning to expand your tech business into Singapore, you have several reasons to smile about. Not only does the Singapore government support tech startups in a big way, but it also exempts them from paying tax until they are fully established. Besides, Singapore boasts one of the most educated and experienced crops of young tech engineers in the world. While technology is the driving force behind the different sectors of the Singapore economy.
