Published By: Soham Halder

Tech Development in Focus in PM Modi's Singapore Visit: Why SGP is an Ideal Launchpad for Indian Startups?

India and Singapore signed important Memorandums of Understanding (MoU) in semiconductors, digital technologies, health, and skill development.

Indian Prime Minister Narendra Modi arrived in Singapore after completing his trip to Brunei. The prime minister received a ceremonial welcome at Singapore's Parliament House by Lawrence Wong before bilateral meetings. Strategists and analysts are considering this MoU between the nation as an exciting scope for Indian startups. Let's understand why.

An Welcoming Environment:

In recent decades, Singapore has emerged as the "Silicon Valley of Asia" with flourishing startup environment. Singapore is one of the most welcoming and favorable nations for startups. The major reasons behind growth of Indian ventures are mainly Singapore's business-friendly ecosystem, modern infrastructure, improved connectivity, along with presence of good number of Indians.

Even Indian populations make up at least 8% in this small country.

At least 8,000 Indian companies are currently registered in Singapore since 2000. Numerous large Indian business groups have startup holding companies in Singapore to operate their Southwest Asian as well as International investments. Many Indian entrepreneurs have either moved to this country or developed robust economic ties with government for making it a financial and investment hub for Indian firms. One of the biggest examples is Flipkart.

PhonePe's parent, Flipkart (established in 2007) continued to have its main office in Singapore as certain sectors faced tremendous funding issues in India. Thus, the corporate structure of Flipkart shifted to Singapore and received funding easily.

Growth-friendly Environment:

Singapore has always been ranked within top 10 in the list of ease of operations. Moreover, Singapore has very less amount of corruptions. Singapore has topped globally in the Heritage Foundation's index of economic freedom, and the World Economic Forum global competitiveness report multiple times. Even, it has been placed within top 5 in consecutive years in the World Bank ease of doing business ranking.

Special Schemes for Businesses:

Being an International financial center, Singapore provides easier financing and refinancing schemes for startups. Singapore government’s Economic Development Board (EDB) and Accounting and Corporate Regulatory Authority (ACRA) provide essential support to startups.

Singapore has an elaborate network of tax treaties supporting Singapore-based organizations conduct international operations while avoiding double taxation.

Any startup need the talent to grow. Despite strategic location (at the centre of ASEAN), the number of youthful population (660 million) further support the start-up growth.

The startup ecosystem in Singapore has an overall value of USD 25 billion, which is far better than global average (USD5 billion). As per recent reports, startup Output Growth Index of Singapore is 8 out of 10, indicating remarkable potential for startups.

As the recently signed MoUs encompass Electronics and Information Technology, it will facilitate startups in digital technologies, like DPI, cyber-security, and 5G, super-computing, quantum computing, and artificial intelligence.

Credit - @ani_digital X handle

"A new chapter in - ties: Comprehensive Strategic Partnership established. PM @narendramodi and PM @LawrenceWongST held a productive meeting in Singapore today. The leaders agreed to elevate the - ties to Comprehensive Strategic Partnership. They extensively reviewed various facets of the bilateral relationship covering areas of Advanced Manufacturing, Connectivity, Digitalisation, Healthcare & Medicine, Skills Development and Sustainability," Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said in a post on X after the bilateral meeting.

For above reasons, Singapore is one of the best choices for any startup to fulfill multinational business dream.