Singapore's New Business Formation in 1st Quarter 2014 Rises 11.7 Percent
A new report reveals an extremely busy business scene in Singapore, with a total of 16,190 new businesses formed. Janus Corporate Solutions' first quarter business formation report says there is an increase of 14.4% against the first quarter business formations in the preceding year. The robust growth in numbers echoes the gradual recovery of the western market and the local market's surging confidence.
Singapore, with its strong business friendly fundamentals and its strategic location amidst the burgeoning Asian markets, continues to attract foreign investors and enterprises to set up business operations in Singapore. There is a sharp spike in the number of private limited company registrations where it has increased by 10% in Q1 2014 against the previous quarter.
The Year-on-Year growth rate is also significantly higher at 11.1%. 32% of the new business formed in Q1 2014 have foreign shareholders, fortifying the strong reputation of Singapore as an efficient regional hub for international businesses.
Although the share of business with foreign shareholders has declined marginally, it has recorded a significant rise in terms of absolute numbers.
While new business formations continue to be predominantly from wholesale trade and financial services sectors, the new business formations in IT and the retail sector have registered a marginal growth in their shares.
The government's drive to promote productivity and innovation appears to fuel the growth in the IT sector, and the strong domestic spending of the consumers buoys the retail sector.
The significant growth, both in terms of QoQ and YoY, is in line with the gradual recovery of the global economy.
"The west is reversing its recessionary trend, and though marginal, the recovery is sustained and there are signs of continued growth," says Jacqueline Low, Chief Operating Officer of Janus Corporate Solutions. "This recovery has increased the confidence of investors and entrepreneurs, which is evident from the sharp rise in the number of new businesses formed in the first quarter of the year."
Low notes that the strong support of the government is encouraging local entrepreneurship and the continued strong share of local business registration is a testament to that.
Singapore is constantly reviewing its business quotient; it has an attractive tax structure, extensive trade agreements and world-class infrastructure, along with an open and resilient economy, which provide strong fundamentals for business growth.
"Barring any inclement economic turmoil, we remain very positive for the rest of the year," says Low.