Why Singapore is attracting more fintech investment than any other Asian country

Singapore is currently one of the most advanced countries in the world in terms of economy. And this despite the fact that the country ranks 171st in the world by area and has almost no natural resources. The economic miracle of Singapore happened in the second half of the 20th century, but the foundations laid in those years still serve the country's good. This city-state is one of the best places for work and business with a high standard of living.

Singapore is the economic center of the Asia-Pacific region. In addition, it ranks among the leaders in the index of economic freedom. And the World Bank's Doing Business report calls the state the second on the planet in terms of supporting the interests of entrepreneurs.

The Singapore economy is mainly represented by the manufacturing and export of electronics, financial services, and tourism. The fintech industry is also very developed and it is attracting a lot of attention from various countries. The UK used to be the fintech center of the world in the past and is still the most attractive option in Europe despite Brexit. But in terms of world performance, Asian countries are catching up, and Singapore is the leading one. UK's potential first became apparent when UK online trading reached its peak from local innovations and concentration of financial service providers. So let’s move to the main points that are actively helping Singapore to attract fintech investment.

Low taxes

Singapore is famous for its investor-oriented climate. The country follows a low tax system for investors, which makes the country very attractive for foreigners. In general, this state is a heaven for investors - regulations are not very strict and investors are looking for more fintech investment opportunities. While in other countries taxes are high and at some point, it discourages investors from investing, we have a completely different situation in Singapore.

Large mobile penetration

Digitalization is the future. And we have come to that conclusion even after the coronavirus pandemic, which led many industries to digitalize their activities. Mobile use in Singapore is also very high - almost 82%. The country is one of the leaders in the engagement of mobile phones. Various innovations are incorporated which is doing more good for the digital industry in the country.

Government support

The government of Singapore is one of the main contributors to the business climate in the country. It always tries to encourage foreign investors into investing in the fintech industry. The country tries to avoid complicated regulations which are very beneficial for investors who are looking for new opportunities.

Surrounding developing nations for testing and implementation

We say that Singapore attracts significantly more investment from foreign countries than its neighbors, however, we should not neglect the fact that the surrounding countries offer a huge possibility for testing and implementation for various projects. Once the new innovation is made in Singapore there is always room for it to be tested in neighboring countries. Therefore it is one of the most notable advantages.

The average local consumer is pretty wealthy

Singapore is a very wealthy country, with a GDP per capita amounting to $64,000. Even an ordinary citizen is very well-off and earns quite a lot of money. They do not back from purchasing modern technology and sometimes they are also the ones who are investing in the fintech industry.

Many companies registered locally for B2B partnerships

B2B is a form of transaction between companies, rather than an individual and a company. This sector is massively developed in Singapore and a lot of companies are registered locally for this type of partnership. In this regard, the country has made a huge leap in recent years and currently, there are a lot of such companies.

Conclusion

The fintech industry in Singapore is reaching massive heights and it is only a matter of time before it gets in the leading list of countries. None of its neighboring countries has such a convenient environment for investors as Singapore. It is not a surprise anymore that we see prominent faces who are looking forward to investing in this country as time passes.