Although Malaysia has also profited from its strategic crossroads location between the East and West, Singapore is geographically blessed as well, given its proximity to large economies in the region.
Singapore (PRWEB) February 16, 2015
International investors and multinational entities around the globe choose Singapore or Malaysia as their base of operations, owing to their convenient and strategic location.
In a recent report, Singapore Company Registration specialist Rikvin gives insights on the competitive advantages of these two regional neighbours.
The report provides an overview of how Singapore and Malaysia rank across key indicators. Furthermore, it highlights their strengths according to such criteria as intellectual property protection, tax rates, quality of workforce, and foreign investment friendliness, among others. In addition, the report analyzes the entire lifecycle of setting up a business in either jurisdiction, from the point of incorporation to operating the company.
Some of the key factors discussed include:
EASE OF DOING BUSINESS RANKINGS
Under current Prime Minister NAJIB, Malaysia is attempting to achieve a high-income status by 2020 by attracting investments in finance, high technology industries, etc. Globally, Malaysia stands at 18 in the ranking of 189 economies in the World Bank’s Ease of Doing Business 2015.
Singapore, on the other hand, tops the global ranking consistently on the ease of doing business. It’s remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries makes Singapore an ideal choice for investors.
Both Singapore and Malaysia have territorial tax systems, which means that only locally sourced incomes are taxed. All companies in Malaysia are taxed at the rate of 25%. Singapore, meanwhile, has a headline corporate tax rate of 17%, which is further reduced when taking into account certain exemptions and incentives. As such, Singapore’s effective corporate tax rates range from 0% to 17%.
Malaysia is competing fiercely with other countries in the region to provide a pro-business environment. To date, multinational corporations from more than 40 countries have invested in more than 5000 companies in Malaysia’s manufacturing sector.
“Singapore dominates the business sector as compared to Malaysia. Although Malaysia has also profited from its strategic crossroads location between the East and West, Singapore is geographically blessed as well, given its proximity to large economies in the region,” remarked Mr. Satish Bakhda, COO of Rikvin.
“Between the two countries, Singapore’s business environment seems to be more conducive to companies. It is, in fact, one of the world’s top locations that supports entrepreneurship and helps foster the growth of SMEs,” he concluded.
Read complete report here.
Established in 1998, Rikvin has partnered with thousands of investors, entrepreneurs and professionals who want to work or do business in Singapore. Rikvin’s areas of expertise include company Singapore company registration, accounting, taxation and other related corporate services. Rikvin is also a licensed employment agency and offers a full spectrum of Singapore work visa services for professionals who wish to relocate to Singapore.
30 Cecil Street, #19-08 Prudential Tower, Singapore – 049712
(+65) 6438 8887