Given the mounting stature of ASEAN in global economy we expect to see more international businesses to incorporate Singapore companies.
(PRWEB) October 03, 2011
Mr. Satish Bakhda observes that the South East Asian association of nations is evolving to be an important economic powerhouse and has been gaining lot of traction with the international investors and enterprises. Amidst the growing economic uncertainty in the well developed markets, the regional association comprising largely of developing nations is brimming with opportunities in all sectors. It is especially important for companies operating in the infrastructure sector.
Last week, a $13-billion infrastructure fund has been launched by the Association of Southeast Asian Nations (ASEAN) and the Asian Development Bank (ADB) to finance major projects across the region. ASEAN has committed to lend $4 billion through the fund until 2020, while the ADB will finance roughly $9 billion. Approximately six infrastructure projects can secure funding each year. The projects will be selected based on their economic and financial rates of return and potential impact on poverty reduction. This will translate to a huge boom in the infrastructure sector and a windfall of opportunities for infrastructure companies focusing on this region.
The Association of Southeast Asian Nations (ASEAN) includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. These ten countries together are home to more than 600 million people and a total area of 4.5 million square kilometers. ASEAN members are progressively strengthening cooperation and integrating economies with one another. The ASEAN Free Trade Agreement, or AFTA, has brought together a market of more than half a billion people. Trade barriers are coming down, and tariffs are at zero, or close to zero. It encourages trade by harmonizing of customs valuation and procedures, and developing common product certification standards.
The findings of the recent ASEAN Business Outlook Survey 2011, conducted by The American Chamber of Commerce in Singapore (AmCham Singapore) in collaboration with many other related associations and chambers, revealed that American companies expect the ASEAN market to become increasingly important for their businesses. The survey polled 327 senior executives from US companies in Cambodia, Indonesia, Malaysia, Singapore, the Philippines, Thailand and Vietnam. 73% of the survey respondents said they expect ASEAN's importance to their business will increase over the next two years, with 85% of them planning to expand their business in ASEAN.
Singapore, one of the most developed members of ASEAN and located at the heart of ASEAN, is an ideal base to tap the opportunities in the bloc. Elaborating further on the Singapore advantage Mr. Satish Bakhda of Rikvin Consultancy says, “Singapore is culturally synonymous with most of the ASEAN economies. It offers a world class business infrastructure, enterprise eco-system, financial services framework, legal regime and more importantly a highly attractive tax regime. The headline Singapore corporate tax rate at 17%, is one of the lowest but notably, for qualifying regional bases activities such as strategic business planning and development, marketing control, planning and brand management, and technical support services, will qualify for a concessionary corporate tax rate of 15% under the Regional Headquarters Award scheme. This gives a strategic edge for companies that decide to incorporate Singapore subsidiary companies to act as regional base. Given the mounting stature of ASEAN in global economy we expect to see more international businesses to incorporate Singapore companies.”
Rikvin offers business solutions for both local and foreign investors and entrepreneurs. The firm’s specialties include company incorporation services, offshore company setup, incorporation and other related corporate services. Rikvin also provides taxation, immigration and application of Singapore work visa for foreign workers to work and relocate in Singapore. For enquires on local business compliance issues, visit our website at http://www.rikvin.com/.
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