Presented by: Group 10

Highly developed state capitalist mixed economy

An open business environment

Relatively corruption-free & transparent,

Stable prices, and one of the highest per capita gross domestic GDP in the world. Innovative form of economy that combines economic planning with free market.

Main source of revenue: exports particularly in electronics & chemicals.

On an extended concept of entrepot trade. Singapore also has a strategic port which makes it more competitive than many of its neighbours to carry out such entrepot activities. Skilled workforce

Singapore's strategic location on major sea lanes and its industrious population have given the country an economic importance in Southeast Asia disproportionate to its small size Corruption-free government, skilled work force, and advanced and efficient infrastructure Manufacturing (including construction) and services are the twin engines of the Singapore economy and accounted for 26.3% and 69.1%, respectively, of Singapore's gross domestic product

The electronics and biomedical manufacturing industries lead Singapore's manufacturing sector, accounting for 40% and 20.8%, respectively, of Singapore's manufacturing output . To maintain its competitive position despite rising wages, the government seeks to promote higher value-added activities in the manufacturing and services sectors. It also has opened, or is in the process of opening, the financial services, telecommunications, and power generation and retailing sectors to foreign service-providers and greater competition.

The government also has pursued cost-cutting measures, including tax cuts and wage and rent reductions, to lower the cost of doing business in Singapore The government is actively negotiating eight free trade agreements (FTAs) with emerging economic partners and has already concluded 18 FTAs As a member of the Association of Southeast Asian Nations (ASEAN), Singapore is part of the ASEAN Free Trade Area (AFTA), and is signatory to ASEAN FTAs with China, Korea, Japan, India, and a joint agreement with New Zealand and Australia

Singapore is also a party to the Transpacific Strategic Economic Partnership Agreement, which includes Brunei, Chile, and New Zealand. It is the choice location for electronics companies to create and manage new markets and products. The city-state offers a total solutions environment for industry players, presenting them with an attractive value proposition

The electronics industry is a key economic engine for Singapore, accounting for 43% of domestic exports & , 40% of total manufacturing output. Provides employment to about a quarter of the total manufacturing labor force. The sector played a central role in Singapores phenomenal economic growth in the 1980s and 1990s

Singapore remains a major center for electronics production, now focused in more capital intensive segments like semiconductors and disk-drive production and in R&D and product development. A key mission of Singapores investment promotion agency, the Economic Development Board (EDB), remains to develop Singapore into a world-class electronics and precision engineering hub for manufacturing solutions and high value-added components.

The presence of international players here has transformed the country into a major electronics hub. Singapores location advantages were the ready availability of trainable low-wage labor and stable industrial relations, well-developed industrial parks, and transportation and telecommunications infrastructure, which facilitated early startups and just-in-time manufacturing. The Singapore Government encouraged the sectors development through investments in state-owned enterprises like Chartered Semiconductor, NatSteel Electronics.

Strength: Sound infrastructure base Liberal government policies Hi tech labor available

Weakness: Many companies are subsidiaries of large firm Sector still controlled by govt

Opportunity: High foreign investment Ever growing sector due to new techs and new products Positive attitude of government and foreign co.

Threats: High competition Low price products from china and Indonesia

FOREIGN OWNERSHIP Singapore does not impose any restrictions on foreigners who wish to do business in the country. It allows 100% foreign ownership (i.e. shareholding) of a Singapore private limited company.

In India, foreign entrepreneurs can set up a foreign direct investment company with 100% ownership only in certain business sectors. Some sectors are subject to caps on investment limits and require prior approval from the Indian government, while certain other sectors prohibit foreign investment.
INCORPORATION TIMELINE Company incorporation in Singapore can be completed in a record time of less than 24 hours, with minimal formalities. By contrast, in India it can take anywhere between 2-3 months to incorporate a company

CORPORATE TAXES The corporate tax rate in India is 30.9% for taxable income up to INR 10 million and 33.9% for taxable income above INR 10 million. Companies are also subject to dividend distribution tax of 16.995% and capital gains tax of 10%, 15% or 20%. Services tax stands at 10.3%. The state level VAT ranges from 1%, 4%, 12.5% to 20%, while the central level sales tax stands at 2%. Taxes in Singapore are significantly lower than India. Singapore charges a corporate tax rate of approximately 8.5% for profits up to S$300K and a flat 17% for profits above S$300K. There is neither a separate dividend distribution tax nor any capital gains tax. GST stands at 7%.

ON A FINAL NOTE Based on the comparative analysis it is clear that Singapore offers a better business environment for foreign entrepreneurs, as compared to India. Some of the distinct characteristics of company formation in Singapore include: easy incorporation procedure which can be completed in less than 24 hours; liberal foreign ownership policy; minimal statutory requirements and an attractive tax regime.

Singapore ranks #1 in the world for ease of doing business according to the recent Doing Business 2009 Report published by World Bank. Year 2010 Category Singapore Rank 1 Indias Rank 135 source World Bank, 2011 Ease of Doing Business Report World Economic Forum, Global Competitiveness Report

Ease of Doing Business Worlds Most Competitive Economy

2010

51

2010 Country Most Open to Trade 1 84

World Economic Forum, Global Enabling Trade Report

Year 2010

Category

Singapore Rank

Indias Rank

source PWC, IFC, World Banks 2011 Paying Taxes Survey

Ease of Paying Taxes 2010 Country with Least Corruption Perception 2010

164

87

Transparency Internationals Corruption Perceptions Index Forbes Best Countries for Business Index Political and Economic Risk Consultancy Survey 2010

Worlds Best Country for Business

Most Efficient Bureaucracy in Asia

77

2010

10