Singapore's business environment
Singapore currently has more than 4,000 startups, and equity funding for startups stood at 4.13 billion U.S. dollars as of the third quarter of 2021. The country's reputation for attracting startups has grown over the past decade, with the number of startups exceeding one million in funding more than tripling between 2015 and 2022. Indeed, Singapore has developed a favorable climate for startups to set up and grow. This environment is characterized by one of the lowest tax rates in the region for medium-sized companies, as well as by tax exemptions for startups generating less than one hundred thousand Singapore dollars per year. As a result, the country has one of the highest ease of doing business scores among ASEAN countries.Furthermore, the growth of the middle class and the rapid digitalization of Southeast Asian countries, which Singapore-based companies benefit from due to the country's strategic location, are among the factors driving the country's development on the international startup scene. Finally, Singapore stands out among the Southeast Asian countries for the high level of trust in the legal framework that it offers to entrepreneurs and businesses. Notably, the country's strong intellectual property rights give companies the confidence to invest in research and development, especially for technology companies.
Leading sectors and companies in Singapore's startup scene
Government initiatives have resulted in the vibrant startup ecosystem, attracting local, regional, and global stakeholders. Venture capital firms support the development of this ecosystem, with a funding value that reached 7.36 billion U.S. dollars in 2021.Technology and telecommunications, as well as e-commerce, are the key industries in Singapore's startup scene, with six and five unicorns in each sector, respectively. The fintech sector has seen the fastest growth in recent years. Driven by the country's financial hub and technology penetration, many startups in the sector have emerged, such as Advance Intelligence Group and Nium. The country's major unicorns operate in a wide range of activities in the region, such as Grab and the tech conglomerate Sea Limited, which has subsidiaries in e-commerce, digital payments, entertainment, and gaming. Other prominent unicorns in the country, such as Ninja Van and Trax, stand out for their success and the amount of funds raised.