SingaporeCompanyIncorporation.sg, a portal that helps entrepreneurs set up a Singapore company, has today published a comparative report on doing business in Singapore and the Philippines. The report is designed to help companies, including those based in the Philippines, determine which country offers a better ecosystem to grow their business.
The report referred to data from World Bank’s 2014 ‘Ease of Doing Business’ report and World Economic Forum’s Global Competitiveness 2013 - 2014 as well as 2014 Global Enabling Trade reports. It measures five indicators, namely intellectual property protection, foreign investment friendliness, corporate tax rate, company incorporation, and workforce.
“Despite breakthrough reforms promoted by President Benigno Aquino III, the Philippines has yet to catch up with Singapore across all parameters. Singapore currently offers many capabilities that businesses demand. From business setup to attracting foreign investments, Singapore has an edge over the Philippines, making it an ideal hub for businesses in Asia, at present,” said Ms. Cheryl Lee, Operations Manager at SingaporeCompanyIncorporation.sg.
Foreign investment friendliness
To entice investors to inject capital into businesses, Singapore supports open door economic policies and implements very few barriers to external trade transactions. The 2014 Global Enabling Trade report ranked Singapore at the top position due to its trade friendly regulations and a business enabling environment.
In addition, Singapore boosts investor confidence through a greater focus on compliance and transparency. This is reflected in meeting the BASEL III capital adequacy requirements ahead of the deadline. Singapore has also committed to FATCA and as well as the Singapore Financial Reporting Standards. Altogether, these measures are expected to safeguard the interests of genuine investors and enable them to make longer term investments in Singapore.
In comparison, the Global Competitiveness Index (GCI) placed the Philippines at the 64th place. This is not a bad indicator, given that in terms of financial market development, the country scored fairly well in 9 out of 10 indicators.
Intellectual property protection
Protection of Intellectual Property (IP) rights is another factor that helps boost the confidence of foreign investors. According to the World Economic Forum’s Global Competitiveness Report 2013-2014, Singapore stands as second best in the world and first in Asia for IP protection.
Prior to that, the Political & Economic Risk Consultancy Report 2011 and the International Property Rights Index 2012 have similarly ranked Singapore as top in Asia for intellectual property protection. The Global Competitiveness Index (GCI) ranks Philippines at 78th position.
Workforce
Singapore has increasingly stricter labour regulations as it undergoes restructuring. However, it still offers a highly educated and skilled workforce and has overall good labour market efficiency. In the GCI, it scored high in 9 out of 10 indicators. The GCI ranked Philippines 100th for the same measure. The country ranked fairly well in 4 out of 10 indicators, but did not do as well in 4 other indicators.
“The Philippines is set to grow at a steady clip over the coming years. Just last year, its gross domestic product grew by 7.2%, making it the fastest in ASEAN, despite natural disasters. Moreover, the country received investment grade ratings from Fitch, Standard & Poor’s and Moody’s in 2013, lowering the country’s borrowing costs. In view of these achievements, businesses are well placed to tap opportunities in the Philippines by establishing a company or headquarters in Singapore,” commented Ms Lee.
To see the full report, please visit http://www.singaporecompanyincorporation.sg/reports/doing-business-in-singapore-vs-philippines/.
About SingaporeCompanyIncorporation.sg
SingaporeCompanyIncorporation.sg is a portal for entrepreneurs and professionals who want to have a presence in Singapore. It is also a provider of company incorporation as well as the related taxation and relocation services in Singapore.
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Singapore 049705
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