Continuing the uptrend in the preceding quarter, the number of new business formations in Singapore grew by 10.3% in Q3 2015 with 17,608 new businesses being formed. The sustained growth endorses Singapore’s economic health, despite the hazy global economic conditions. This figure builds on the 9% growth posted in Q2.
Singapore continues to attract foreign investors and enterprises even amidst the tumultuous global economic condition. 35% of the new business formed in Q3 2015 had foreign shareholders. Singapore’s reputation as a regional business centre and international financial centre continues to attract foreign investors, enterprises and entrepreneurs to set up business in Singapore.
Commenting on the continued uptrend in business formations, Ms. Jacqueline Low, Chief Operating Officer of Hawksford Singapore, says, ‘Singapore’s inherent economic strengths and strong business fundamentals continue to attract foreign investors and entrepreneurs. Domestic consumption is strong and is upheld by robust employment numbers, this has helped to sustain small businesses. The enterprise landscape is vibrant and is conducive to all categories of entities. However, the businesses need to grow beyond sustenance. Although sustenance is the top priority in the turbulent economic conditions, in order to grow, the global recovery must be robust and broad based. With the Chinese economy lagging, there is imminent threat for the regional economies.’
Enterprises from British Virgin Islands, the USA, Hong Kong and Japan continue to set up their subsidiaries in Singapore. While the share of companies from the US declined to 4% from 5% in Q2 2015, the share of Hong Kong subsidiaries has gone up in this quarter by 2% to 5%. The recovery in the US moderated, this may have caused the dip in US subsidiaries. With the Chinese economy slowing down, Hong Kong companies are shifting their attention to regional markets. Singapore offers an ideal gateway to regional opportunities, this may account for the marginal increase in Hong Kong subsidiaries.
‘Looking ahead, we anticipate the business formation trend will maintain its upward trajectory, supported by the seasonal upswing in domestic consumption around the globe. Singapore has narrowly escaped a technical recession in this quarter, it will manage to pull through in Q4 as well, however the medium term outlook remains challenging,’ added Ms Low.