Why is Singapore the Commercial Capital of the world?
Singapore is seen as the global commercial capital. This blog explains why! #ThinkWithNiche
Singapore, when it comes to world-class cities and hubs, has all of the criteria of a Smart City even before the term was coined by urban planners. No visitor to Singapore is left unaffected by the machine-like precision and equally efficient manner in which the city-state runs. From routine tasks like garbage collection to more significant issues like housing distribution and water supply, as well as City Transport and other urban management efforts, Singapore is run with an efficiency that is enabled by automation and supervised by trained personnel in control of the processes. Furthermore, it has an elite that is frequently Western-educated and brings with them the finest techniques from other countries to apply to the administration and recruiting money to the city-state. Indeed, the fact that international firms frequently flock to Singapore demonstrates the ease of doing business as well as the relative lack of corruption among government institutions that make doing business in Singapore a businessperson's dream.
Financial Prowess and Technical Excellence
Apart from that, Singapore is a tourist and electronics center, with the latter being highlighted by the presence of various Semiconductor companies that have set up shop there. It also has world-class enterprises that specialize in software and cutting-edge technology like Artificial Intelligence. Singapore is well-known for its technical strength, thanks to its population's technical talents and tailored immigration laws that attract the best and brightest from around the world. Furthermore, because of its prominence as a regional hub as well as its competent human resources, which include both natives and immigrants, various Asian enterprises pioneering in healthcare, banking, and the newly emerging FinTech field are based there. Indeed, due to its extensive cultural ties with South Asia, Singapore can be highlighted for its relative success in drawing immigrants from all over the world, particularly from India. For example, numerous native Tamils who are descendants of early migrants and whose language and ethnicity are officially recognized by the Singapore government make up the ethnic population.
Some cloud on the horizon: Why the future looks uncertain
Having said that, Singapore has had to deal with a substantial public debate in recent years over its future as a regional hub, as well as its racial and cultural diversity and immigration policies. Furthermore, the country's tight and autocratic administration has had to deal with criticism and debate over whether it is time for it to become more democratic. Indeed, these challenges, which have long been addressed but remained hidden beneath the surface, have now come to light as a result of Singapore's generational shift. With the younger elements of the population refusing to accept rigorous limits on their behavior, some analysts believe Singapore is primed for an Arab Spring-style uprising, which would drastically erode the country's attractiveness to multinational corporations domiciled there. On the other hand, the government can no longer afford to dismiss these concerns without creating upheaval, and Singapore is now at a fork in the road, where the choices and decisions it makes will have an impact on the country's future.
Competition from regional peers
Furthermore, other regional centers such as Sydney, Kuala Lumpur, and Hong Kong, which have traditionally competed with it, are now planning to be more aggressive in their marketing efforts, putting Singapore's regional prominence in jeopardy. In addition, newer competitors are developing from Vietnam, the Philippines, and India, all of which benefit from a large English-speaking resource pool. Apart from that, the global elite appears to prefer numerous locations for their regional centers, and Singapore now faces more competition in this regard.
On the other hand, Singapore's port and commercial shipping industries are well-established, and despite the building of multiple deepwater ports in neighboring nations, Singapore's dominance is unlikely to be challenged. Finally, its world-class airport and highly efficient airline are its crown jewels, and it will take a lot of competition to genuinely challenge them.
Singapore is a global attraction for startups as well, we have written a blog on the startup ecosystem in Singapore!