SingaporeCompanyIncorporation.sg, a portal for incorporation in Singapore has today published a comparative report on doing business in Thailand and Singapore. The report is designed to help international companies, including those based in Thailand, determine which country would help them grow their business in Asia Pacific and beyond.
The report referred to data from World Bank’s 2014 ‘Ease of Doing Business’ report and World Economic Forum’s Global Competitiveness 2013 – 2014 as well as 2014 Global Enabling Trade reports. It measures five indicators, namely company incorporation, corporate tax rate, foreign investment friendliness, intellectual property protection and workforce.
“Choosing headquarters in Asia requires careful consideration. Thailand no doubt offers cost-efficiencies and a dynamic environment, not only to do business, but to live. However, an in-depth analysis of factors such as time and procedures for starting a business, tax rates, investment friendliness and intellectual property protection show that Singapore’s strengths outweigh that of Thailand,” explained Ms. Cheryl Lee, Operations Manager at SingaporeCompanyIncorporation.sg.
In gist, the indicators are as follows:
Foreign investment friendliness
The Singapore government offers numerous incentives for foreign businesses to set their shop in the city-state. Singapore supports an open trade policy and has few barriers to external trade transactions. The 2014 Global Enabling Trade report ranked Singapore at the top position due to its trade-friendly regulations and a business enabling environment. Thailand stood at the 57th place.
Intellectual Property protection
Protection of Intellectual Property (IP) rights is a crucial element for gaining confidence of foreign investors in an innovation and knowledge-based economy. According to the World Economic Forum’s Global Competitiveness Report 2013-2014, Singapore stands as second best in the world and first in Asia for having a robust IP protection framework.
Prior to this, the Political & Economic Risk Consultancy Report 2011 and the International Property Rights Index 2012 have similarly ranked Singapore top in Asia for intellectual property protection. The Global Competitiveness Report ranks Thailand at 102nd position in this category.
Singapore offers a highly-educated and skilled workforce both domestically and from abroad. The Global Competitiveness Report ranks Singapore at the top position for excellent ‘Labour Market Efficiency’. However, it ranked Thailand 62nd for the same measure.
“Although Thailand is growing in economic prowess, Singapore has some core strengths that benefit businesses. Singapore’s business community thrive on reliable government policies and e-government systems. Along with its state-of-the-art infrastructure and connectivity, Singapore is conducive for growth and innovation. Hence businesses that want to achieve just that, including those based in Thailand, can benefit by establishing a presence in Singapore,” commented Ms. Lee.
To see the full report, please visit https://www.singaporecompanyincorporation.sg/reports/doing-business-in-singapore-vs-thailand/.