What makes Singapore the second best city for doing business after London?
Singapore has been recently ranked second as the most favourable city for doing business, just after London. Despite getting ranked 27th for thermal comfort, Singapore still makes it this high in PwC’s report. This also goes on to show that how uncontrolled factors can be significantly overpowered by controllable factors. The story of how an intrinsic disadvantage can be shackled by better control, unwavering determination and enhanced efficiency.
The ranking done by PwC consultancy took various economical and social indicators into account while determining business favourability from thirty global cities of the world. Singapore topped the list for technology readiness, transportation and infrastructure and the ease of doing business. It is important to note that unlike other surveys, PwC doesn’t only takes business competitiveness into account, but gives social and economic factors a substantial advantage.
Superior technology in Singapore has played an important role when it comes affirming city’s position as one of the best when it comes to business favourability. The city topped technology readiness indicator excelling seven positions, surpassing the previous best London, as revealed by the PwC’s previous report published in 2014. The main factors contributing to this tech readiness are high broadband speeds and widespread internet access throughout the country.
Transportation system then again goes onto consolidates Singapore’s position as a rising business city in the world. Though the city’s transportation system isn’t flaw free and has, occasional breakdowns here and there, but then again it is better than most business hubs of the world. For instance, city’s only superior counterpart in overall ranking, London’s transportation system is often subject to delays and overcrowding.
Apart from the above mentioned indicators, Singapore has shown significant improvement in taxation favourability for investors. Few cities are able to beat Singapore when it is about corporate taxes. The corporate taxes of 17% go on to show city’s clear intent to take on biggest international markets. Along with Dubai and Hong Kong, Singapore tops the list when it comes to tax rates and highest efficiency.
With that being said, it is important to keep in consideration that, according to most expert commentators, London’s supremacy cannot be easily toppled by Singapore, as they don’t see it happening till next report by PwC. The primary reason behind this is the fact that companies which are normally interested in investing in Singapore, are actually trying to capitalize the opportunities offered by Asian markets. Moreover, Singapore has some innate cons that turn the odds in London’s favour, with climate intensity on being top of the list. Alongside, city is also ranked 20th for the category of sustainability and healthy environment and has average results for air quality and recycled waste.
Since London’s supremacy is well established, it is highly unlikely that companies will shift their operations from London to Singapore, despite that we are analyzing a post Brexit scenario.