Singapore businesses to expand on 2011

97% of businesses in Singapore perceive their domestic regulatory and taxation environment to be business friendly. According to ICAEW Global Enterprise Survey 2010, Singapore businesses are most positive about the impact of continuing globalisation.

According to an annual global survey on business sentiment by ICAEW, a world leader of the accountancy and finance profession, more businesses in Singapore than in any other market plan to expand into or increase market share in other countries.

Over 1,700 ICAEW members from across the world were surveyed for their opinions on the opportunities and challenges that face businesses. Occupying positions such as chief financial officers and finance directors, the respondents answered questions on issues relating to globalisation, international expansion plans and regulatory environments.

Besides being most positive about globalisation, Singapore and Hong Kong businesses were also more likely to perceive their domestic regulatory and taxation environment to be business friendly – accounting for 97% and 91% of businesses in Singapore and Hong Kong respectively. Only 2% of businesses in Singapore considered it to be unfriendly to businesses, compared to 20% in Malaysia and 34% in Australasia. At least 40% of businesses in the UK, the EU and Africa believe they operate in a business unfriendly environment.

Generally, businesses around the world are expecting growth over the next year. Growth expectations in Hong Kong, Malaysia and Singapore have increased since 2009 but remain below levels seen in 2008.

Mark Billington FCA, ICAEW Regional Director, South East Asia, said:

“Nearly 90% of businesses surveyed in Asia Pacific are planning turnover growth over the next two years. It reflects the confidence of Asian businesses, and also parallels the general perception that Asia is leading the global economic recovery.”

“While this is very encouraging, the region’s businesses worry that national government measures will have a negative effect on their competitiveness over the coming year. Many businesses all over the world will also be challenged by competition for commodities as the world economy picks up. We are likely to see the return of challenges and problems businesses typically found themselves grappling with before the downturn.”

China remains highly attractive to businesses across the world. The survey revealed that most businesses in Asia Pacific looking to expand into or increase market share in other countries focus on near-by markets - most notably China. China is also seen as a country of opportunities by businesses in the other regions surveyed.