The Association of Southeast Asian Nations (ASEAN) is among the largest economies worldwide, a promising business destination that’s drawing in high foreign direct investment (FDI).
The ASEAN Investment Report 2024 pegs the region’s FDI rate of return at 7.7%, above the global average of 6.9%, and forecasts both capital inflows and GDP growth to outpace China’s in the coming years. The same report finds that more than 80% of Global Fortune 500 companies have established a presence here.
Demography lends further momentum, with nearly 700 million people and a population that is markedly younger than those of other developed economies. According to the latest statistics from Worldometer, the median age within ASEAN stands at around 30.9 years.
By comparison, the United States has a median age of about 38.5 years. Europe and Japan register higher figures at 42.8 and 49.8 years, respectively. It is no surprise then that ASEAN is increasingly seen as an attractive, lucrative market for companies to tap into.
Singapore’s edge over other regional markets
As one of the founding members of ASEAN, Singapore has long been recognised globally for its political stability, business-friendly environment and economic robustness. The country is a location of choice for setting up regional headquarters and increasingly for some firms’ global head offices targeting Asia-Pacific.
As of 2023, it was reported that around 4,200 multinational companies had established their RHQs in Singapore, outpacing other hubs like Hong Kong. If you're looking to establish or strengthen your position in the ASEAN region, the following attributes will give you an idea of how Singapore can serve as your strategic gateway to this market:
- Ease of starting and doing business
- Supportive trade and tax framework
- Strategic location
- World-class infrastructure
- Rigorous legal framework
- International talent pool
1. Ease of starting and doing business
Known as one of the world’s easiest places to set up and do business, Singapore has ranked first globally in the Economic Intelligence Unit’s (EIU) business environment rankings for the last 15 years. This reflects key factors such as efficient regulations, low corruption and smooth administrative processes.
Your company incorporation can be completed within two days, provided the Accounting and Corporate Regulatory Authority (ACRA) does not require a referral. All Know Your Customer (KYC) requirements must also be met, with incorporation documents duly signed. Various corporate structures are made available to suit different expansion strategies, the most popular being the private limited company (Pte Ltd), which is limited by shares and can have a maximum of 50 shareholders.
Besides offering an efficient setup process, Singapore has a supportive ecosystem for expanding beyond its borders. The Singapore Economic Development Board (EDB), for instance, administers a range of incentives and schemes that can enable companies to scale, diversify and deepen their regional footprint.
For example, the EDB’s International Headquarters (IHQ) Award provides concessionary tax rates of up to 15% if you’re setting up your regional or international headquarters in Singapore. These tax savings can then be channelled to other critical growth areas of your operations. With the ease of starting and doing business from the get-go, you can have more confidence to pursue opportunities in other ASEAN destinations.
2. Supportive trade and tax framework
Especially in today’s global economic climate, the Singapore government continues to maintain a free, open environment to facilitate the flow of goods, reinforcing its role as a key trade hub. Being a founding member of ASEAN, Singapore benefits from the region’s trade deals, notably the ASEAN Free Trade Area (AFTA). Tariffs on virtually all intra-ASEAN goods have been eliminated under the AFTA’s trade in goods agreement (ATIGA), enabling you to ship throughout Southeast Asia at zero duties.
Outside of ASEAN, Singapore has entered 28 free trade agreements (FTAs) with key trade partners such as China, the United Kingdom, the Middle Eastern countries in the Gulf Cooperation Council (GCC) and most recently the Pacific Alliance. These FTAs have eased market entry and enabled significant market presence of products from signatory countries.
It’s worth noting Singapore’s tax regime is conducive for business: it has one of ASEAN’s lowest corporate tax rates (17%) and a plethora of tax incentives and grants to reduce your tax burden. You can also leverage Singapore’s wide network of double taxation agreements (DTAs) to manage your tax liability.
Spanning more than 80 countries around the globe, these DTAs can further contribute to tax savings. In the long run, Singapore’s supportive tax regime and extensive trade network may help you minimise costs and maximise market access when venturing out into ASEAN.
3. Strategic location
Owing to Singapore’s strategic geographic location, it takes no more than seven hours to get to other major ASEAN markets. To complement this, the country offers unparalleled connectivity: Changi Airport is consistently ranked among the best globally, as reflected in Skytrax’s 2024-2025 World Airport Survey. Changi Airport connects to over 130 cities worldwide, which can enable you to reach key ASEAN capitals such as Jakarta, Bangkok, Kuala Lumpur, Hanoi and Manila quickly.
The country’s position along major shipping routes also ensures a Singapore hub can dispatch and receive goods across the region with minimal delay. The Maritime and Port Authority of Singapore (MPA) shared that Singapore had achieved a milestone of 3.11 billion gross tons in arriving ship traffic in 2024, remaining one of the world’s busiest. With this efficiency, you can coordinate operations throughout ASEAN from a single central node.
A recent development that will strengthen this advantage further is the Johor-Singapore Special Economic Zone (JS-SEZ), a landmark collaboration between Singapore and Malaysia. Comprising of more than 3,500 square kilometres of southern Johor, the JS-SEZ will provide targeted incentives such as low corporate tax rates and planned high-speed rail connectivity to facilitate efficient cross-border operation.
Businesses operating within the JS-SEZ may benefit from Singapore’s world-class infrastructure while tapping into Malaysia’s competitive cost structures. A joint project office has since been set up to support Singapore-based businesses expanding operations through the JS-SEZ.
4. World-class infrastructure
Additionally, you may favour Singapore for its continuous investment in infrastructure, which has resulted in its high-speed connectivity and seamless logistics channels across the region. The country has achieved nationwide fifth generation (5G) standalone (SA) coverage and was among the first to do so. As efforts to be a Smart Nation continues, the newest technologies can constantly be explored in Singapore, having a reliable digital infrastructure already in place.
With digital trade becoming increasingly important to businesses, Singapore has also spearheaded Digital Economy Agreements (DEAs) with various countries. Through these agreements, Singapore and its partners agree on rules for cross-border data flow, digital payments, artificial intelligence (AI) and other digital trade facilitation measures. This can allow you to leverage Singapore as both a testbed for the latest technology and a launch point for scaling digital services regionally.
As mentioned earlier, Singapore’s connectivity is unparalleled, backed by the infrastructure that supports it. Changi Airport Group (CAG) reported handling about 1.9 million tonnes of airfreight in 2024. Plans are underway to increase the airport’s cargo capacity to 5.4 million tonnes by the mid-2030s. With promising developments, this can reinforce Singapore as an indispensable gateway for future ASEAN market entry.
5. Rigorous legal framework
Should disputes arise, Singapore’s rigorous legal framework may give you peace of mind. The country is known for upholding the rule of law and has built a judiciary system that is efficient, impartial and based on English common law principles. This common law foundation means contract enforcement and legal precedents are well-established and familiar to international businesses.
If a contract with an overseas partner goes awry, there’s a well-trodden path to resolve it through arbitration and mediation under Singapore law. Many of the cases handled by the Singapore International Arbitration Centre (SIAC) involve foreign parties, demonstrating that companies from around the world trust Singapore as a neutral venue to settle disputes. Other institutions, such as the Singapore International Mediation Centre (SIMC), are available to help in the event of disagreements.
For valuable intangible assets (IA) and intellectual property (IP), rest assured Singapore has one of the strongest protection regimes in Asia. This is backed by surveys such as the International Property Rights Index (IPRI) 2024, which ranked Singapore second out of 125 jurisdictions.
As a signatory to major IP treaties such as the Patent Cooperation Treaty (PCT), Madrid Protocol and Berne Convention, Singapore aligns its legal protections to the highest global standards. The country is also a member of the World Trade Organisation (WTO) and maintains compliance with the Trade-Related Aspects of Intellectual Property (TRIPS) Agreement. Such features can be attractive if you’re planning to have Singapore as a base for registering and holding IP assets.
6. International talent pool
Finally, while Singapore’s workforce may seem relatively small, they continue to be one of the most highly skilled in Asia. This is reflected in the latest World Talent Ranking conducted by the International Institute for Management Development (IMD).
English is the primary working language here, which can simplify communication both within ASEAN and with offices in the West. The Singapore government is proactive in ensuring that the local workforce has the skills needed to stay competitive. As announced in the Singapore budget 2025, government grants such as the SkillsFuture Enterprise Credit (SFEC) continue to be upgraded to support companies in their workforce transformation efforts.
For expatriate staff, Singapore presents an attractive living environment, combining a high quality of life, safety as well as world-class schools and healthcare. Several types of employment visas are available, with specific criteria to fulfil prior to relocating your top talent. The ease of entry has historically drawn many foreign professionals to Singapore for work.
An example is Malaysia, with 1.13 million out of its 1.86 million emigrants choosing Singapore. Your company can thus consider Singapore as a base for overseeing ASEAN operations while hiring from an international talent pool.
Singapore: the door to ASEAN
As a result of these strengths, Singapore continues to be recognised as a top entry point to expand in the ASEAN region. If you’re keen to grow your business in Singapore and enter other ASEAN markets, we can manage your company incorporation and provide comprehensive, ongoing support. This includes accounting and tax compliance, immigration support, company secretarial duties and other services. To understand what you’ll need to establish your ASEAN footprint, please get in touch with our corporate services team for more information.
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Looking to Singapore as a base for your company set-up or expansion?
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