Singapore draws record-high number of foreign entrepreneurs in Q1

There was a huge spike in foreign company formation.

Challenging economic conditions did not deter a record number of foreign entrepreneurs from forming companies in Singapore during the first quarter.

The latest business formations statistics report by Hawksford showed that the share of foreign held companies equalled the number of wholly locally set-up companies
for the first time in Q1.

The number of 100% foreign held companies rose from 24% in Q4 to 37% in Q1, meaning thatt overseas companies accounted for half of the total new business formations in the quarter.

Correspondingly, the share of companies with Singaporean shareholders decreased to 57% from 72% compared to Q4 2015.

The share of companies with Chinese shareholders doubled during the quarter while the share of companies with Indian and Malaysian shareholders also spiked from 4% each in the preceding quarter to 7% each in Q1.

"While this is the first time we have seen the number of foreign held companies equal the number of locally owned companies, it is not a major surprise as it emphasises the solid, pro-business environment that Singapore is renowned for," said Jacqueline Low, chief operating officer of Hawksford Singapore.

There was a moderate drop in the overall number of business formations in Q1 2016. With 15,910 businesses formed, the numbers dropped moderately by 4.23% as against the preceding quarter.

However, against the corresponding period in 2015, registration has significantly increased by 8.7%, and business formation is markedly higher when compared to the five-year Q1 average of 14,986.

"We expect only a moderate rise in the business formation numbers in the next quarter with a less than desired pace of global economic recovery and anticipate some improvements in the second half of 2016," Low added.