Singapore – an attractive destination for FDI - read in the blog of the company COREDO

Singapore – an attractive destination for FDI


Right now might be a great time to register an investment company in Singapore. The local authorities have introduced courts for foreign investors, tax incentives, corresponding legislation that supports businesses and their financial stability. All these strategies were put in place in order to attract FDI by developing desirable conditions for international trade in Singapore. Let’s now discuss how Singapore regulates FDI.  

Luring in foreign investors

Entities originally coming from abroad to perform investment activities in the country are called foreign investors. Given that the main aim of investments is to generate profit, it is the reason why the Singaporean government is interested in attracting foreign capital. Before making any investment decisions, investors monitor the country’s economic situation, its legislative system, factors determining the level of a possible return from an object of investment. An object of foreign investment can basically be any project that is not prohibited by Singaporean laws.

Foreign economic relations and investment activities in the country are massively dependent on the conditions that attract foreign investment. Generally, the investment attractiveness of the country is influenced by the overall investment climate characterized by local legal conditions, customs, and other factors.

Changes in regulation

Without a doubt, the state policy of Singapore in the sphere of economic development is aimed at attracting FDI. In fact, this jurisdiction is considered one of the world’s most desired destinations for foreign direct investments. Mostly, investments from Singapore are destined to other countries in Asia. Singapore has signed multiple bilateral investment treaties. Resultingly, it can be considered a regional center for international investors as a place to direct their investments in the region.

The government of Singapore has introduced several strategies that are aimed at encouraging international companies to place their headquarters in the country or to build a manufacturing facility there. Examples of such strategies can be tax breaks or lower taxes for qualifying investments.

Not to forget that during the pandemic Singaporean authorities have not announced any restrictions on FDI. The country tries to stimulate all companies in the national economy including the ones with foreign shareholders.

Future of FDI in Singapore

The differences between portfolio investments and foreign direct investments lays in the fact that the latter give an investor the opportunity to control the company’s activities with foreign capital and joint ventures.

Foreign investors who are viewing Singapore as a possible destination to start a company should keep in mind that the biggest part of investment income flows from the sectors of energy, chemistry and the semiconductor industry. Not too long ago, the country created a new government agency called Enterprise Singapore. Its task is to support and if needed co-invest in companies seeking to expand Singapore’s presence in foreign countries.

The finale

Singapore is a jurisdiction with a solid legal system and attractive conditions for establishing a company with investment goals. Moreover, Singapore is a center of multi-billion-dollar investment in the Asian region. However, investing in the strategic infrastructure of Singapore such as the technology industry can demand additional consulting with the relevant government authorities. Therefore, investors should plan thoroughly their investment incentives before placing potential FDI, regional headquarters, or production facilities in the country.

In case you became interested in conducting investment activities in Singapore, do not hesitate to contact our specialists. COREDO has multiple-year experience of working in the Singaporean market.


    By contacting us you agree to your details being used for the purposes of processing your application in accordance with our Privacy policy.