Singapore PESTAL
Access the environment of Singapore (PEST)
Political Forces
1. Political Climate
Singapore is under a stable political climate. The political system is considered as centralized and authoritarian, the political culture is pragmatic, rational and based on the rule of law. The highest aim of the government is the nation's survival and prosperity. Based on the results of Corruption Perception Index ranks, Singapore has a totally clean and corruption-free image in the world and it's the least corrupt country in Asia rated by Transparency International.
2. Tax and Regulations for Foreign Companies
The Singapore Government welcomes foreign companies to entry or relocated the business in their countries as to boost it's competitiveness and to stimulate the economy. According to the Heritage Foundation’s ‘2012 Index of Economic Freedom' Singapore is the second freest economy in the world. The country is also known for its low tax regime. They are having a agreement of extensive double tax treaties with more than 70 countries across the world. This action can help to minimize the tax burden for a holding company. The highest corporate tax rate on taxable income is 17% which is a attractive tax regime. Also the prohibition of foreign ownership restrictions and exchange controls are offering a fair trade environment of foreign investors.
Economic Forces
1. Key Industry
The industry in Singapore can be divided into two sectors. One is the manufacturing industry and the other is the service industry. The major manufacture industries include electronics (semi-conductors, precision-engineering, etc.), pharmaceutical, chemicals, construction, and ship-building. This sector contributed 20 – 30 % to Singapore's GDP every year. However due to the slip down of the demand for electronics form the main export market such as U.S and Europe, the output growth has decrease since 2012. On the other side, the service sector which included wholesale, retail,
Political Forces
1. Political Climate
Singapore is under a stable political climate. The political system is considered as centralized and authoritarian, the political culture is pragmatic, rational and based on the rule of law. The highest aim of the government is the nation's survival and prosperity. Based on the results of Corruption Perception Index ranks, Singapore has a totally clean and corruption-free image in the world and it's the least corrupt country in Asia rated by Transparency International.
2. Tax and Regulations for Foreign Companies
The Singapore Government welcomes foreign companies to entry or relocated the business in their countries as to boost it's competitiveness and to stimulate the economy. According to the Heritage Foundation’s ‘2012 Index of Economic Freedom' Singapore is the second freest economy in the world. The country is also known for its low tax regime. They are having a agreement of extensive double tax treaties with more than 70 countries across the world. This action can help to minimize the tax burden for a holding company. The highest corporate tax rate on taxable income is 17% which is a attractive tax regime. Also the prohibition of foreign ownership restrictions and exchange controls are offering a fair trade environment of foreign investors.
Economic Forces
1. Key Industry
The industry in Singapore can be divided into two sectors. One is the manufacturing industry and the other is the service industry. The major manufacture industries include electronics (semi-conductors, precision-engineering, etc.), pharmaceutical, chemicals, construction, and ship-building. This sector contributed 20 – 30 % to Singapore's GDP every year. However due to the slip down of the demand for electronics form the main export market such as U.S and Europe, the output growth has decrease since 2012. On the other side, the service sector which included wholesale, retail,