SINGAPORE: Ended the year positively with 14,115 new businesses formed in Q4 2017, according to data presented in Hawksford Singapore’s latest research report, Singapore New Business Trends Report Q4 2017.
“As one of the easiest places in the world to do business, Singapore remained a compelling business hub in 2017. Companies of all sizes continue to choose Singapore as their preferred business destination, recognising that factors such as a pro-business environment and strong macro fundamentals give it an edge over other financial jurisdictions,” she said.
The share of Private Limited Companies formed grew 4.2% q-o-q in Q4 2017. Exempt and Non-Exempt Private Limited Companies (EPC) registered a 9.8% and 9.9% year-on-year (YoY) increase respectively, signalling that businesses, especially large- and medium-scale companies, recognised Singapore as an attractive investment destination.
Compared to 2016, more large and medium scale companies in the form of Non-EPCs and Public Companies Limited by Guarantee were set up in Singapore in 2017. Uncertainties within the business landscape created increased interest in philanthropic activities with the increase in the number of companies limited by Guarantee, an entity type popular for non-profit pursuits.
In 2017, the share of companies with 100% local shareholding rose 0.6 percentage point. This points to growing business opportunities locally, buoyed by encouraging global and regional economic conditions. Singapore’s business-friendly environment and willingness to accept 100% foreign shareholding structures makes it a good place to setup subsidiaries of foreign established organisations.
The climb in the share of companies in the financial services sector to 12.3% in Q4 comes as a nod to Singapore’s transparent and robust regulatory environment and proximity to a resurgent Asia. It is no surprise that the financial services industry has picked up pace in 2017 as fintech gained momentum with the support of MAS, which also organised the inaugural Fintech Festival in 2016.
The share of companies formed in the wholesale trade sector continued to remain the highest at 19.2%, validating Singapore’s role as Asia’s distribution hub.
The share of foreign subsidiaries in new company formations increased 2.2% to 44.4% in Q4 2017 with the British Virgin Islands, Hong Kong and Cayman Islands accounting for 6.5%, 4.3% and 3.7% of foreign subsidiaries formed respectively. Many of the offshore companies act as investment holding companies that invests and sets up its operational company/ies in Singapore.
