Singapore’s Strengths
In Southeast Asia, there is a small country with the smallest land area, the most scarce natural resources, and which even announced its independence in tears.
After 60 years and the efforts of several generations, it has squeezed into the ranks of countries with the highest per capita income in the world. It is even the only developed country in Southeast Asia. This small country is Singapore.
This little red dot, once looked down upon by Western countries and surrounding major powers, has now achieved many world-first feats. Especially in economy and finance, Singapore has demonstrated formidable strength.
To give everyone a deeper understanding of Singapore, Anjia SG has compiled a list of 10 “world firsts” that most people don’t know about. Let’s see how Singapore grew from nothing, from being first to being unique. Reading to the end might change your perception of Singapore.
1. Highest Density of the Wealthy – Billionaires
According to the Global Wealth Report released by Credit Suisse, the total wealth of Singaporeans increased by 7.4% to US$1.3 trillion (approximately S$1.8 trillion). The wealth per adult increased by 5.3% to US$283,120, ranking ninth globally.
Singapore has approximately 500,000 millionaires, accounting for about 9% of the population. Moreover, there are over 4,000 ultra-high-net-worth individuals with a net worth exceeding US$30 million. By 2025, the number of millionaires in Singapore is expected to rise by 62%, and the number of billionaires is projected to soar to nearly 50. Therefore, Singapore is the city with the highest density of wealthy individuals in Southeast Asia.
2. Easiest Country to Do Business In – High Efficiency
According to the World Bank’s “Doing Business” report, Singapore has been ranked as the “world’s easiest country to do business in” for more than ten consecutive years.
What makes it the easiest? Simply put, it’s highly efficient.
The average time for corporate tax compliance in Singapore is 64 hours per year, and registering a company online takes only 15 minutes. Generally, setting up a company can take nearly a month, but in Singapore, it can be done in one to two days.
The cost of company registration is very low, at just S$315, and the minimum paid-up capital for a new company is only S$1.
Coupled with tax incentives, its geographical location, and various other policies, Singapore has attracted many multinational corporations to set up their headquarters here, making it the country with the most multinational headquarters in Asia.
3. Most Economically Free Country – Rule of Law
The Index of Economic Freedom uses 12 indicators across four major categories—Rule of Law, Government Size, Regulatory Efficiency, and Open Markets—as its scoring criteria. Singapore has been ranked as the most economically free country for several consecutive years.
During his time in office, Lee Kuan Yew governed by the rule of law. He had his own “four basic principles” against corruption: equality for all before the law, freedom for all within the law, no democracy outside the law, and no authority above the law.
The Singapore government adopts a transparent approach to all business matters, with clear and strict laws and regulations governing business dealings and transactions. Consequently, Singapore is one of the least corrupt countries in the world.
Singapore is also the country in Asia that best protects intellectual property. This ensures that companies and businesses can develop projects in a secure economic environment. The government provides favorable economic policies to promote business activities. The Singapore government’s low tax rates, excellent public services, and transparent management also facilitate the orderly conduct of business activities in Singapore. As a result, Singapore is also the country that receives the most foreign investment in the world.
4. Southeast Asia’s Largest Overseas Investor – Land is Precious
Not only does Singapore receive the most foreign investment, but it is also the second-largest overseas investor in Asia, the largest foreign investor in Southeast Asia, and the world’s largest overseas real estate investor.
Why does Singapore invest so much money abroad?
This story goes back to the Gulf War in the 1990s. Kuwait, an incredibly wealthy small nation, was completely occupied by Iraqi forces within 9 hours. Its infrastructure was severely damaged, and its wealth was extensively plundered.
As the Iraqi army retreated, they didn’t forget to set hundreds of Kuwaiti oil wells on fire, causing devastating effects for Kuwait. Singapore learned a lesson from this incident and prepared for rainy days.
At that time, Singapore could be described as a replica of Kuwait, surrounded by “powerful tigers” like Malaysia and Indonesia.
After the Iraqi invasion of Kuwait, Lee Kuan Yew said at a People’s Action Party summit, “A small country cannot be too rich. We cannot keep all our money at home; we must seek development space abroad, otherwise, Singapore will have no future.”
Without special precautions and measures, Singapore could very well have become a second Kuwait. To avoid repeating Kuwait’s fate and to prevent domestic industries from being wiped out by a potential war, Singapore needed to build an industrial base overseas, similar to the Jurong Industrial Estate.
Thus, Singapore began investing in and building over 170 industrial parks worldwide. Currently, for the third consecutive year, Singapore is the largest source of outbound real estate capital in Asia, with transactions exceeding US$10 billion.
According to a CBRE report, the main real estate investment destinations for Singaporean investors include Beijing, London, and Seoul.
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5. Strongest and Most Stable Currency – Remaining Robust
The Singapore dollar (SGD) is the 13th most traded currency globally and is considered one of the most valuable currencies in the Asia-Pacific region. The SGD is also regarded as one of the world’s strongest and most stable currencies.
How is this achieved?
In short, “neither freely floating nor permanently fixed” is the main feature of Singapore’s exchange rate system. This arrangement helps the Monetary Authority of Singapore (MAS) maintain the purchasing power of the SGD while also being more flexible in the stock market.
First, the MAS predetermines an exchange rate band, which is not publicly disclosed. The exchange rate can fluctuate within this band, giving the system the flexibility to withstand short-term exchange rate volatility in the foreign exchange market. It also provides a buffer zone for assessing the equilibrium exchange rate level of the SGD.
Second, the MAS selects a currency basket, which is a group of international currencies that can maintain the stability of the SGD within a certain range. The weights of the various currencies are not disclosed and depend on Singapore’s trade dependence on those countries. This policy of pegging to a basket of currencies ensures the competitiveness of Singapore’s export products in the international market.
If an exchange rate adjustment is necessary, Singapore adopts a crawling peg. This means adjustments are made gradually to avoid the risks of sudden, large adjustments. This exchange rate arrangement makes the SGD flexible enough to remain stable in the face of uncertainty in the foreign exchange market, unafraid of deliberate attacks by international speculators, and also helps to reduce inflation.
For instance, with the recent decline in US Treasury yields, the Malaysian Ringgit has been falling continuously, but the SGD has remained strong through appreciation, leading to a new low of 3.20 Malaysian Ringgit (MYR) to 1 Singapore Dollar (SGD).
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6. Asia’s Largest Foreign Exchange Market – Asian Currency Unit
In the 1960s, due to the need for the United States to maintain logistical support for the Vietnam War and the financing needs of multinational corporations in Singapore and Southeast Asia, a huge demand for US dollar transactions emerged in the region. This led to an influx of US dollars into the Asian market, affecting the Singapore dollar.
To solve this problem, Singapore started establishing “Asian Currency Units” (ACUs), which restricted offshore banks and financial institutions to dealing only in non-SGD financial services. This helped Singapore become one of the countries that has long maintained a certain level of foreign exchange reserves.
As of 2020, the Monetary Authority of Singapore held over US$270 billion in assets. Furthermore, most Asian countries use Singapore as a settlement center. The establishment of the Asian Dollar Market meant that Singapore’s foreign exchange market had great potential to become a prosperous market.
The Singapore government boldly and completely lifted foreign exchange controls, allowing free inflow and outflow of foreign currency, and removing various restrictions on amounts and types of currency for outward remittances. This truly achieved the free flow of international capital.
Starting in the 1990s, Singapore surpassed Switzerland to become the world’s fourth-largest foreign exchange market, behind only New York, London, and Tokyo.
7. Country with the Highest Car Taxes – Certificate of Entitlement
When traveling to Singapore, what probably impresses most people is the convenience; there are transportation options everywhere. If you ask around, you’ll find that most people do not own a car.
Is it because the transportation system is so developed that they don’t need to drive? That is indeed one of the reasons. But the main reason is that Singapore is actually the most expensive country in the world to buy a car.
Because Singapore has limited land, the government must restrict the number of cars to prevent traffic jams from morning to night, which would waste time and life.
In reality, the import price of a new car into Singapore is not that high. The reason car prices are so high in Singapore is that after a new car is imported, Singapore imposes various taxes and fees on it. Singapore established the Vehicle Quota System (VQS), which issues a certain number of Certificates of Entitlement (COE). Whether you’re buying a million-dollar luxury car or a budget-friendly model, you need a COE.
Consumers must bid for a COE. Naturally, the higher the bid, the greater the chance of getting one. Having a COE only means you have the right to buy a car; there are still various other taxes and fees that are added to the car’s price. For example, based on the car’s open market value, Singapore levies an Additional Registration Fee (ARF). This tax is imposed on all vehicles, with 100% coverage; the higher the car’s price, the higher the fee. In addition, there is the Goods and Services Tax (GST), the dealer’s profit, and so on.
8. The Smartest Country – IQ 107.1
Many parents hope their children will be successful. Singaporeans are famously “kiasu” (afraid to lose), but this fear of losing is not necessarily a bad thing.
It is precisely because there are so many ambitious and aspiring talents that Singapore has been named the smartest country.
According to a report by Forbes ranking the 25 smartest countries in the world, Singaporeans have an average IQ of 107.1, ranking first.
When it comes to exams, Singaporeans are fearless. Taking exams from a young age and attending endless tuition classes might be a common trait among Singaporeans.
In the Programme for International Student Assessment (PISA), Singapore has consistently ranked in the top three. In terms of national education level and teaching achievements, Singapore remains number one.
Excellent education cultivates outstanding talent, leading to Singapore being ranked second globally and first in Asia for talent competitiveness.
9. Happiest Country in Asia – Garden City
Many people say that Singapore has the highest cost of living in the world, is stressful, and has a fast pace of life. But did you know? According to the World Happiness Report 2022, Singapore is the happiest country in Asia. Why is that?
Firstly, Singapore’s high cost of living mainly applies to the luxurious lifestyle of high-income earners. For ordinary people, benefits like affordable HDB flats and convenient public transport significantly reduce life’s difficulties. Moreover, Singapore is famously known as a “Garden City,” with beautiful scenery and clean, litter-free streets, leading to a high quality of life.
Due to a robust and highly efficient legal system, Singapore is widely regarded as one of the safest countries in the world. You can walk on the streets of Singapore without constantly looking over your shoulder, worrying about being robbed.
Living in such a carefree environment, apart from worrying about one’s future career, how could one not be happy?
10. World’s Number One Smart City – Smart Nation
Urbanization is a major global trend. It is estimated that by 2050, the proportion of the world’s urban population will rise from the current 55% to 68%, adding about 2.5 billion new residents.
The “Smart City” is both a necessary stage in urban evolution and a path to solving the many challenges brought by rapid urban expansion. Among 118 cities worldwide, Singapore has held the top spot on the global smart city rankings for three consecutive years.
Singapore was the first country in the world to propose a “Smart Nation” plan. Not only does Singapore have one of the highest internet speeds globally, but it has also widely integrated “smart” experiences in government services, transportation, healthcare, education, and other aspects into the daily lives of its people.
The “Smart Nation 2025” masterplan has established three strategic priorities: Digital Government, Digital Economy, and Digital Society, as well as three foundational pillars: next-generation digital infrastructure and platforms, data resources, and cybersecurity, to shape leading global competitiveness and influence.
