Publication date: July 2006
Author: AsiaBiz Strategy Private Limited
Most New Zealand companies entering new markets do not fully appreciate how hard it is to create new networks and the crucial importance those networks have in their ability to penetrate and grow.
New Zealand Trade and Enterprise (NZTE)’s Beachheads Programme fast-tracks this initial phase, and ensures participants get access to top quality connections it would normally take years to develop. To give New Zealand companies a head-start, the Beachheads programme operates out of a number of strategic locations around the globe.
>>Read more about the Beachheads programme
>>Download the table of contents and introduction (PDF, 203KB)
New Zealand companies can request the full document by emailing beachheads@nzte.govt.nz.
See other Beachheads best practice ‘survival’ guides.
The Singapore Survival Guide is produced to assist New Zealand businesses with setting up in Singapore. It is not intended to be the definitive guidebook on how to do business in Singapore, but rather provides an overview of the issues businesses will need to consider. It includes useful data, references, important links and information on the following areas.
New Zealand Trade and Enterprise (NZTE) contracted an external consultant – AsiaBiz Strategy Private Limited (www.asiabizstrategy.com), an in-market consultant which has been involved with the production of business collateralfor government agencies and private enterprises in Singapore, to undertake the research and writing of parts of this guide.
Every attempt has been made to give the most up to date statistics and information, however this guide is a reference document only. As with any country, the rules and regulations governing business operations may change to make it easier for foreign businesses to set up or expand their operations. To stay current, please refer to the relevant websites of the regulatory bodies or government agencies administering some of the policies mentioned in this guide. Your best point of reference will be to contact NZTE if you have specific questions about doing business in Singapore.
1.1 Why Singapore?
Singapore has a small, concentrated, wealthy market of English-speaking customers, corruption rates among the lowest in the world and an efficient Government, all of which create a welcoming environment for foreign companies. Its unique blend of competitive strengths make it the location of choice for global enterprises. Its distinctive combination of core competencies coupled with its physical location confer a host of benefits to businesses that invest and reside here.
A cosmopolitan society, Singapore is an ideal platform for the meeting of global talents, ideas, funds and businesses.
A springboard to Asia, connectivityNew Zealand businesses can leverage Singapore’s extensive network of Free Trade Agreements (FTAs), Double Taxation Agreements and Investment Guarantee Agreements (IGAs). In addition, Singapore’s strategic location at the entrance to the Straits of Malacca has helped it become one of the most important shipping centres in Asia. The Port of Singapore, the world’s busiest in terms of shipping tonnage, is a key component of Singapore’s prosperity and economic wealth, as it contributes to fast distribution of goods with its excellent cargo handling capabilities and fast processing. This combined with its comprehensive air and land connectivity, provides a seamless flow of goods and services to markets around the world.
OpennessSingapore’s willing acceptance of globalisation and its corresponding foreign cultural and economic infusion foster and stimulate openness in the city-state. With a foreigner-local ratio of 1:4 and university enrolment of foreign students at 20%of yearly intake, Singapore has demonstrated its favourable reception to different cultures, thus explaining its ranking as the best place to live in Asia (ECA International 2005). New Zealanders will find Singapore an easy to get about country, and will quite easily adapt to its cultural diversity.
ReliabilityA crucial task for New Zealand companies wishing to set up here is to secure their tangible and intangible assets. Singapore’s piracy rate (42%), followed by Australia (32%), is close to that of developed nations like France and Italy.
Singapore’s safe, pro-business environment is supported by its well-respected Government with transparent and consistent policies that protect companies’ physical and intellectual property (IP) assets.
Asia: a gateway to increase market sizeSingapore is home to a concentration of international enterprises, headquarters operations and start-ups. Singapore has a vibrant enterprise ecosystem that fuels interaction and growth. It has thrived on its entrepôt trade since its beginning, and continues to be the international hub for businesses originating from Asia to other parts of the world. It is close to significant markets such as the Association of Southeast Asian Nations (ASEAN), India and China.
Foreign businesses can easily access Asia’s regional markets and business networks through various organisations, including government agencies which connect Singapore-based businesses to foreign networks and industry associations.
Industry oriented towards innovation and knowledgeSuccessfully proven sectors include biomedical sciences, electronic and precision engineering, information and communications technology (ICT) and media, headquarters services, chemicals, logistics and transport, engineeringand environmental services, education services and professional services. New Zealand companies who want to enter Asia through Singapore will find it easy to be connected to the relevant business clusters in which they have competitivenessover existing market leaders.
New Zealand companies can leverage Singapore’s efficient infrastructure, multilingual workforce and pro-business policies to enhance their competitiveness in Asia. The Government’s focus on building an innovation driven economy provides avenues for New Zealand companies to tap into its various incentive and funding schemes for research and development (R & D) and innovation. The Economic Development Board (EDB) currently administers a S$10 million Patent Application Fund.
The Intellectual Property Office of Singapore or IPOS (www.ipos.gov.sg) is the lead government agency that formulates and regulates IP laws in Singapore. IPOS seeks to foster a creative environment where ideas and intellectual efforts are valued, developed and commercialised. It promotes IP awareness through education and industry alliances with bodies such as the Business Software Alliance.
The Business Software Alliance is the industry’s watchdog, which safeguards IP rights and polices the piracy of software companies globally. The Singapore office conducts periodic raids on piracy of software material.
Not only is the conducive ecosystem for IP successful in attracting multinational corporations (MNCs) to base their R & D in Singapore, but Singapore is also increasingly becoming one of the hot beds for start-ups to commercialise their technologies in Asia, given the availability of and proximity to venture capitalists, corporate investors and business angels in Singapore and the region.
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