Singapore Emerges as Top Choice Asian Business Headquarters

Singapore Emerges as Top Choice for Asian Business Headquarters

SINGAPORE – In 2023, Singapore solidified its status as the premier destination for international businesses in Asia, with a staggering 4,200 multinational firms choosing the city-state as their regional headquarters. This figure far surpassed the 1,336 firms headquartered in Hong Kong, its main competitor in the region, according to a comprehensive report by Bloomberg Intelligence.

Even Chinese companies, aiming to mitigate geopolitical risks and expand their global footprint, favored Singapore over Hong Kong, drawn by factors such as stronger ties with Western nations, a more extensive talent pool, a diversified economy, and attractive tax incentives, as highlighted in the 50-page report.

While Hong Kong maintained its position as China’s financial hub by quelling political unrest and adhering to strict pandemic control measures, Singapore positioned itself as an independent and preferred location for international business operations.

Despite Hong Kong’s slightly lower corporate tax rate of 16.5%, Singapore’s tax schemes, which can reduce the rate to as low as 13.5% for certain activities, proved more enticing for businesses, the report revealed.

Singapore’s proactive approach in offering targeted incentives to foreign companies establishing regional hubs has yielded significant success. A plethora of multinational giants such as FedEx, Microsoft, Google, Mead Johnson, Rolls-Royce, and General Motors have chosen Singapore as their regional base.

Even companies operating in sensitive sectors like TikTok and Shein have established business hubs in Singapore. Additionally, Chinese firms like Nio, a prominent electric vehicle manufacturer, have found their footing in the city-state, while tech giants like Huawei Technologies are expanding their presence.

The report by Bloomberg Intelligence anticipates that Singapore’s critical mass of corporations and its diversified economy will continue to attract more global businesses than Hong Kong over the next five years.

Attribution: This article was adapted from content originally published by The Straits Times.

Free Finding Service