Considering the bright prospects for Singapore's services sector together with the country's pro-business climate, we are expecting more company formations in the services industry this year.
(PRWEB) June 4, 2010
The Business Receipts Index just released by the Singapore Department of Statistics shows that the business receipts of Singapore's services sector, which accounts for two-thirds of the economy, surged by 8.8% year-on-year during Q1 2010. Analysis done by GuideMeSingapore.com indicates a strong correlation between the growth in services industry and the increased number of new startups in Singapore during the same period.
The positive growth in services sector was led by the financial and insurance industry, reporting the highest growth of 17%. Singapore companies engaged in education services as well as information and communications services registered double digit growths of 15.4% and 11.5% respectively. Companies involved in business services; transport and storage; health and social work; and real estate, rental and leasing activities also recorded positive growth in their business receipts.
Furthermore, the Business Expectations Survey conducted by the Department of Statistics shows that of an overall net weighted balance of 36% of firms in the services sector expressed positive business sentiments for the period of Apr – Sep 2010 compared with Oct 2009 – Mar 2010.
According to Ms. Jacqueline Low, the Director of Singapore company formation agency Janus Corporate Solutions - the company that runs the GuideMeSingapore.com site, "The services sector plays an important role in Singapore's economy. The Singapore government has consciously nurtured a pro-business environment that encourages business enterprise formation and growth. For instance, company incorporation in Singapore can be accomplished within a record time of 24 hours. Singapore's tax system is by far the most attractive in the region. Apart from the low tax rates, there are a number of tax incentives, especially for financial services companies, insurance companies, and processing service companies. Singapore's trusted political and legal framework and its strategic location make it the perfect launch pad for companies seeking to expand in the Asia Pacific region."
Singapore is one of the few countries to have exited the recession early. It has witnessed robust economic growth during the first quarter of 2010 and the economy is expected to witness sustained growth in the months to come. Usually, increased economic prosperity contributes to increased demand for services. Based on this maxim, Singapore's services sector can expect continued growth over the next two quarters. "The time is right for foreign entrepreneurs to set up a Singapore company in the services sector. Singapore is a well-established financial center and is now on its way to transforming itself into an education hub, medical hub, and tourism capital of Asia. Underpinned by Singapore’s economic expansion, the real estate sector is booming and its transport and info-comm sectors are also growing. Considering the bright prospects for Singapore's services sector together with the country's pro-business climate, we are expecting more company formations in the services industry this year," added Ms. Low.
More information about starting a business in Singapore can be found at http://www.guidemesingapore.com/
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