Singapore has bounced back from a drop in new business formations, with a nine per cent increase in the second quarter of this year.
According to official data, 15,964 new businesses were registered in the three months to June 30, underscoring the confidence in Singapore as an international business centre.
Jacqueline Low, COO of Hawksford Singapore, says, the significant quarter on quarter growth rate reflects the improving confidence of the entrepreneurial community and investors alike.
“Despite various global challenges, the numbers have shot up in this quarter. This is reflective of the high business confidence and the trust in the strong business fundamentals of Singapore and the business community’s proactive mind-set to capitalise on the early signs of economic growth,” she said.
Though the numbers contracted by more than 28 per cent in quarter one, compared to the last three months of 2014, in this second quarter it appears to be returning to normal.
Singapore, with its strong business-friendly fundamentals and its strategic location amidst the burgeoning Asian markets, continues to attract foreign investors and enterprises. One third of the new business formed in the second quarter had foreign shareholders, while 47 new foreign company branch offices were set up – 11.9 more than in the first quarter.
Entrepreneurs continue to take advantage of the favourable share capital clause of the Singapore Company Act that provides for businesses to be formed with share capital as low as S$1. As a result, in this quarter 74 per cent of the businesses were formed with less than $10,000 share capital.
International enterprises continue to set up their subsidiaries in Singapore. The share of US companies setting up subsidiaries increased in this quarter by two per cent to five per cent.
“For the second half of 2015 we anticipate the economic growth to remain muted yet the business incorporation numbers will continue to grow at the present level aided by strong domestic consumption, sustained recovery of the west and the regional growth pockets,” added Low.
Private limited companies continued to be the dominant type of business formation, accounting for 54.7 per cent of the total registration, with Sole Proprietorship the second most popular type of entity, with 6021 new business formations.
More detailed analysis and information can be found in the Q2 2015 Singapore Business Formation Statistics Report here.
