Singapore Remains an Ideal Hub for Launching a Fintech Venture

In the ever-evolving landscape of technology, Singapore has emerged as a formidable force, securing the title of the top tech innovation hub outside of Silicon Valley/San Francisco for two consecutive years, according to KPMG.

This Southeast Asian powerhouse has become a magnet for tech companies, with several fintech firms, such as NaroIQ, establishing regional headquarters in Singapore to serve digital fund and ETF product markets, and regional operations. While a comprehensive list of these fintech firms is not readily available, the city-state's appeal is undeniable.

A vibrant startup community and a large pool of investors looking to back tech success stories are just a few of the factors that make Singapore an attractive destination for businesses. The city-state's ties with other jurisdictions, including numerous Free Trade Agreements (FTAs) with countries like China, Japan, the US, and the European Union (EU), and several bilateral Fintech Co-operation Agreements (CAs) with countries such as Hong Kong, India, and Switzerland, further solidify its position.

The Association of South East Asian Nations (ASEAN), with an aggregated consumer market of 628 million people, is one of the fastest-growing economic blocs in the world. Given this, now is the ideal time for companies to expand into Asia, as suggested by the 2021 Singapore Business Outlook report.

The Global Innovation Alliance (GIA), a joint initiative between Enterprise Singapore and the Singapore Economic Development Board, has established a network of partners in more than 10 key innovation hubs around the world to facilitate startup expansion and foster innovation. This network serves as a bridge for companies looking to tap into Singapore's thriving tech sector.

Singapore's allure is not limited to its strategic location. The city-state is recognised for its competitive corporate tax rate, skilled workforce, advanced infrastructure, and political stability. It offers progressive regulation, innovation support schemes, and a government committed to turning the nation into a tech powerhouse.

The fintech sector in Singapore is particularly thriving, with over 1,250 fintech companies calling the city-state home, including some of the region's most successful fintechs like Grab Financial Group. Blockchain and cryptocurrency have dominated the Singaporean fintech scene, with global players like Chainalysis and Gemini setting up shop in Singapore, and DBS Bank launching its digital currency exchange.

For fintech companies, Singapore is more than just a regional hub; it's an international financial center and a fast-growing fintech hub. The city-state has become one of the world's biggest tech hubs, hosting more than 37,000 international companies, including tech giants like Facebook, Google, and Rakuten.

Singapore consistently ranks among the top locations worldwide for starting a business. As one of ASEAN's founding members, it serves as the gateway for companies looking to expand into the Southeast Asian region. Despite the ongoing pandemic, Singapore continues to remain a stable and reliable business hub, with multinationals such as Nestle, PayPal, MasterCard, and Hyundai choosing Singapore to establish innovation labs and research and development (R&D) centers.

The Monetary Authority of Singapore (MAS) has pursued its distributed ledger technology (DLT) ambitions, joining forces with the Bank for International Settlements (BIS) Innovation Hub and other central banks to test the use of central bank digital currencies (CBDCs) for international settlements. This commitment to innovation and technology sets Singapore apart as an ideal base for companies looking to tap into the economic revival post-pandemic.

In conclusion, Singapore's combination of strategic location, supportive government, thriving startup community, and advanced infrastructure make it an attractive destination for tech companies looking to expand their operations in Asia. The city-state's commitment to innovation and technology, coupled with its political stability and skilled workforce, make it a beacon for tech companies worldwide.