As a major trading and financial hub, Singapore has the infrastructure and expertise that Chinese corporates need to effectively access other ASEAN markets. The country’s stable tax, legal and regulatory systems and business-friendly environment make it easier to do business here. With topnotch infrastructure and services, and a highly capable workforce, Singapore offers an excellent base to expand into the rest of ASEAN.
Singapore’s economic and strategic role in ASEAN and trading partnership with China make it the top destination for Chinese businesses. Tap HSBC's group expertise to help expand your business into Singapore and ASEAN.
Why Singapore
A leading financial centre
Singapore is a leading global financial hub with a AAA credit rating from all three major credit agencies. It is Asia Pacific’s largest foreign exchange centre1 and manages two-thirds of all project financing in ASEAN.
Importantly, Singapore is the financial conduit between China and Southeast Asia. It is one of the largest offshore clearing centres for the renminbi and services global inflows from ASEAN markets.
A Southeast Asian trading hub
Singapore is located where major East and West shipping lanes converge and is one of Asia’s largest trading hubs. Its central role in ASEAN and economic partnership with China mean that it is becoming the focal point of commercial activity in the region, making it an effective springboard for regional opportunities.
Partner to China
One of the key pillars of Singapore-China relations is economic cooperation. Singapore can be a strategic gateway to Southeast Asia and it offers Chinese businesses access to a dynamic and rapidly growing market. Moreover, both markets have collaborated on major infrastructure projects such as the Chongqing Connectivity Initiative and the Suzhou Industrial Park, further solidifying their economic partnership. Notably, Singapore’s position as a global financial center and technology hub would bolsters its attractiveness. The presence of major Chinese tech giants like Alibaba, Tencent, and ByteDance, along with a myriad of other tech firms, underscores Singapore’s significance as a gateway to international markets.
A business-friendly environment
Singapore offers a world-class business environment for Chinese businesses looking to expand their business in Singapore. The banking system is efficient and has a good supply of qualified and skilled workers, providing an ideal ecosystem for businesses looking to set up their regional headquarters in Asia. Singapore is the most competitive economy out of 67 across the world’s eight major regions according to 2024 IMD World Competitiveness Ranking (WCR)2. The city state is also ranked seventh in Startup Genome’s 2024 global start-up ecosystem ranking 3, and first Pan-Asia. The ranking is based on factors such as performance, market reach, infrastructure and the quality of the talent pool.
Capturing international business expansion opportunities
Singapore has kept its doors open to trade. This has allowed it to draw considerable foreign direct investment (FDI)4 and become one of the top countries in the world for FDI. Singapore’s inward direct investment flows reached $214 billion in 2023, recording an increase of 10 per cent over the previous year.
Dedicated support from an experienced business banking partner
Singapore’s competitive and robust economy can support Chinese corporates’ growth momentum. The country sits at the top of many indices measuring all aspects of life and has a stable macro-economic environment with healthy public finances. Singapore has 15 bilateral, 12 regional FTAs and digital economy agreements (DEAs), providing Singapore-based businesses with access to preferential markets, free or reduced import tariffs, and enhanced intellectual property regulations. Companies from China can leverage this to expand their businesses within and even beyond ASEAN.
Capturing international business expansion opportunities
For many years, China has been one of Singapore’s top trading partners. Singapore’s geographic location and role as a financial and logistics hub makes it a crucial player in the ASEAN region, while China’s growing influence shapes the dynamics of trade and cooperation in Southeast Asia and beyond. Singapore ranks as the ninth largest trading partner of China, while China holds the position of Singapore’s third-largest trading partner. In 2023, the main goods exported from China to Singapore were electrical and electronic equipment (US$15.32 billion), mineral fuels, oils, distillation products (US$10.24 billion), machinery, nuclear reactors, and boilers (9.31 billion), ships, boats and other floating structures (US$7.68 billion), and plastics (US$3.20 billon), according to data from ICT Trade Map.
Singapore’s bilingual education policy means that Singaporeans are proficient in English and at least one other language, such as Mandarin. Mandarin is thus widely spoken in Singapore. Singapore’s workforce also stands among the world’s most proficient in terms of management, vocational and technical skills, according to the annual Global Talent Competitive Index in 2023.
Find out more about HSBC China-Singapore corridor
HSBC’s ASEAN Capabilities
With HSBC's deep expertise in partnering Chinese corporates to scale across borders, find the solutions you need to gain access to the ASEAN network.
HSBC China Desk: Your partner for growth
When you're ready to scale your business beyond China, HSBC provides dedicated support from HSBC Desk Network in Singapore to help with your expansion plans.
1. https://www.mas.gov.sg/development/foreign-exchange
2. https://www.imd.org/centers/wcc/world-competitiveness-center/rankings/world-competitiveness-ranking/
3. https://startupgenome.com/articles/singapore-leads-discover-asias-top-startup-ecosystems
4. https://www.singstat.gov.sg/-/media/files/news/fdiinflows2023.ashx
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