Doing Business in Singapore

Further information on Singapore's business climate is available in the Asialink Business Singapore Country Starter Pack.

Exciting prospects also exist in the following sectors:

• Automotive
• Food and beverages
• Lifestyle products and services
• Oil and gas
• Water technology and management
• Biotechnology and biomedical sciences
• Aged healthcare
• Financial and professional services
• ICT and digital technology.

Australia's relationship with Singapore is arguably the closest and most comprehensive within Southeast Asia. This is based on long-standing Commonwealth, defence, education, political, trade and tourism ties, as well as on the two countries' complementary strategic outlook.

Singapore is Australia's largest trade and investment partner in ASEAN and fifth largest trading partner overall. In 2014, Australian merchandise exports to Singapore tallied AUD 8.4 billion (its sixth largest export market), while imports from Singapore were valued at AUD 12.7 billion (the fourth largest by source).

Services are a key part of bilateral trade, with exports to Singapore valued at AUD 3.6 billion and imported services put at AUD 5.5 billion in 2013-14.  Major services exports include technical, business and professional services and transport. Singapore is also one of Australia's major sources of short-term visitors.

Australia's investment in Singapore, meanwhile, was AUD 35.4 billion in 2013 with a large number of Australian businesses having carved out stakes in Singapore, including all of Australia's major banks, mining companies such as BHP Billiton and Rio Tinto, engineering design and constructive firms such as Lend Lease Asia Holdings and logistics groups including Toll Holdings.

More information on Australia’s relationship with Singapore and SAFTA is available in the Asialink Business Singapore Country Starter Pack.

Careful planning should remain at the core of any proposed Singapore entry strategy – make sure you are fully prepared and committed to growing your presence internationally.

Fully assess your market and accompanying risk by investing time and effort into getting to know your customers and partners, your government contact points and other key stakeholders. Examine every level of risk, throughout all business functions. Often, these risks are intertwined and detailed analysis will provide you with an up-close view of the local business environment and practices. An integrated Singapore strategy should therefore address risks associated with both creating value and then protecting it.

Find business partners that are open to fresh thinking and new ideas. They must have enough experience in the local industry and be familiar with differences in local consumer and industry segments to be able to identify opportunities and carry through with new ideas. Above all, your business partners must possess resources and relationships that complement your own. But alliances come with risks: trust and regular communication through the relationship cycle are essential and the need for due diligence at every turn cannot be over-emphasised.

More information on starting a business and assessing locations is available in the Asialink Business Singapore Country Starter Pack.

As English is the language of business and administration, Singapore is generally a straightforward place in which to do business. It has a formal business culture that incorporates a few rules of etiquette that can vary for Chinese, Malay and Indian members of the population.

Being generally respectful of your counterparts is a key to appropriate business decorum in Singapore, although when it comes to conducting business Singaporeans are by and large open in their outlook and are unlikely to take offence at any social faux pas. Conversational topics relating to religion and racial issues are best avoided. Discussing political issues should be avoided too.

The Singapore Government applies a non-interventionist approach to doing business, allowing for a relaxed environment for cultural tendencies to flourish. Large western multinationals located in Singapore will often exhibit western-style business cultures, whereas some smaller government departments and private companies will usually embrace traditional Asian culture in their work environment. Local firms are mainly influenced by cultural characteristics: hierarchy, collectivism, risk avoidance and long-term orientation.

• If doing business with Malays living in Singapore, avoid arranging meetings on a Friday or during the holy month of Ramadan.

• Gifts are not generally exchanged at formal meetings and may lead to accusations of bribery. Singapore has strict rules and regulations on this – all gifts sent to government employees must be declared. If you do choose to exchange gifts, they should be modest.

• Though the climate is tropical, men will usually wear long-sleeved shirts and ties, while women are advised to wear smart business attire. Jackets are generally not required, but the prevalence of air conditioning means offices can sometimes get very cold, so it's advisable to carry one with you. For women, open-toe shoes are satisfactory for meeting corporate partners, but meetings with government officials and agents require more conservative footwear. And if travelling around the city, a sturdy umbrella is essential – there are daily, heavy downpours.

• Punctuality is important so effort should be made to arrive on time. Notify your business counterparts should you find yourself running late. Appointments should also be made at least two weeks in advance.

• A firm handshake is a sufficient introduction at a formal business meeting. No elaborate bowing is necessary.

• When addressing Chinese Singaporeans the family name is given first. For example, Mr Goh Chok Tong would be addressed as Mr Goh. 

• Malaysian names are made up of the father's name and the given name.  For example, Najib bin Razak (where bin denotes "son of") or Aisyah binte Musa (where binte denotes "daughter of"). When addressing Malaysians (or Malay-Singaporeans) the first of these two names is used.

• Singaporean Indians use a variety of conventions so it is advisable to use the family name preceded by Mr or Mrs.

Franchising is common in Singapore, and franchises are among the best-run businesses in the country. There are no specific laws or government agencies that regulate the offer and sale of franchises – general contract law governs the relationship. Selling a franchise can be the right choice for many Australian firms but have been most successful  perhaps in the food and beverage, hospitality, lifestyle, wellness, and education (particularly early-learning) sectors.

Licensing can be a quick and assured way of selling trademarks, intellectual property, design and patent rights, copyright and software into a foreign market such as Singapore. Licensing allows rapid market entry with limited capital, since it is unnecessary to set up expensive local production facilities. Universally recognised contracts or agreements need to be in place to protect intellectual property, trademarks and design rights, and licence arrangements must comply with both international and Singaporean laws.

If you are interested in commercialising your intellectual property and you do not have the resources or experience to develop and market your goods or services, licensing may be the best option. Selling your licence for commercial use in Singapore will benefit Australian SMEs in the electronics, healthcare, biomedical, and automotive industries.