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Reasons to Choose Singapore as an Entry Point

Essay by   •  December 5, 2018  •  Presentation or Speech  •  511 Words (3 Pages)  •  743 Views

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Reasons to choose Singapore as an entry point

The Singapore economy is primarily supported by activities in the manufacturing and services sectors, which account for a fifth and two-thirds of its output¬¬¬ respectively. Singapore’s natural connectivity to emerging markets in the region, positive labour-employer relations, favourable tax regime, and strong rule of law have all contributed to the country’s competitive advantage, thereby enabling the Singapore economy to grow consistently and rapidly over the past four decades

Market Value: 2,7 billion sgd

Total 39 outlets

1 Pro-business environment

Though ranked 4th in the world for the ease of doing business 6 years ago, the U.S. has slipped to the 8th position in 2017 (World Bank Doing Business Report). By contrast, Singapore ranked 2nd in the world for its pro-business environment, which allows the efficient and transparent functioning of businesses.: 

Ease of doing business rank:

Singapore: 2

Malaysia: 24

Thailand: 26

Brunei: 56

Vietnam: 68

Indonesia: 72

Philippines: 113

Cambodia: 135

Lao PDR: 141

Myanmar: 171

2 Legal System

Singapore’s legal system is based on the English Common Law.  In 1969, trial by jury was abolished as entrusting matters of life and death to 7 laymen was deemed undesirable. Today, Singapore is ranked 9th globally for its rule of law, and is the only Asian state in the top 10 (World Justice Project Rule of Law Index 2016). The U.S., on the other hand, is ranked 18th. 

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3 Tax System

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4: Location

Singapore is home to the world’s top players across all industries, in part, due to its location in the heart of Southeast Asia and close proximity to surrounding emerging markets. By means of Singapore you can reach out to the other countries in Asia effectively. Air travel is also frequent with daily inbound and outbound flights thus making business operations easier and more convenient. Singapore preserves good international connection with other countries when it comes to trade and industry

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5 year plan

We considered to start entering high GDP countries where as it seems that they have more spending power starting with Singapore

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Year

Plan

1-2

  • Entering Singapore targeting both Singaporean and foreigners. There were lots of Europeans and American working in Singapore as it is ASEAN business hub.
  • However, we need to plan the marketing very carefully as they have got completely different mindset and background – Singapore residents consist of many people from several nations and religious. Influencer is somewhat important in ASEAN countries
  • Consider to procure from countries in ASEAN to reduce labor cost, freight, and tax
  • Sales channels via e-commerce – online shopping now is growing and becoming quite popular in ASEAN. Shop aims to provide customers good experience and viewing actual products.

3

  • Target to gain significant awareness (brand value/ brand recognition) in Singapore as well as market share and improve economy of scale via online channels
  • Expand online channel to nearby countries

4

  • Start expanding shops to nearby countries begins with Malaysia as the counties and target market is quite similar.

5

  • Expand shops to Indonesia and Thailand
  • Open online shopping for other countries in ASEAN to see the respond and collect valuable data for a possible future expansion with physical shops.

 

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