Hotspot: start up in Singapore
Singapore is an ever-popular destination for travellers and foreign workers – with a highly developed market economy, and having been identified as a tax haven for the wealthy due to its low tax rates on personal income and tax exemptions on foreign-based income and capital gains.
Singapore also boasts high ratings in key social indicators, such as education, healthcare, quality of life, personal safety, infrastructure, and housing. The quality of life and happiness of Singapore’s residents is high, and business in the country is booming, not just for corporates, but startups, too.
Singapore stands out as one of the leading startup ecosystems in Southeast Asia. It can be distinguished by its pro-business climate and attractive position for accessing the Southeast Asian market. The country is home to more than 4,500 tech startups, 300 VCs, and 240 accelerators, venture builders, and incubators.
According to Startup Genome, in 2023, Singapore dominated Southeast Asia’s tech funding landscape, capturing 63.7% of the region’s deal volume and 73.3% of its deal value, with investments totalling $6.1 billion across 522 transactions.
Startup Blink’s Global Startup Ecosystem Index 2025 found that Singapore is ranked 4th in the index worldwide, and is number one in Asia Pacific. The Global Innovation Index 2024 also ranked Singapore as the 4th most innovative nation in the world.
All of these numbers show Singapore as an ideal place to start a business. To learn more about Singapore’s startup ecosystem, I spoke with Cindy Ngiam, Director, Startup Ecosystem & Community, Enterprise Singapore.
What specific factors make Singapore an attractive place to start and scale a business?
Seeing the numbers is one thing, but there are reasons behind these numbers that the figures don’t map out. So, what specific factors does Ngiam think makes Singapore an attractive place to start and scale a business?
“Over the years, Singapore has transcended its size to become a global business hub, with one of the most competitive economies in the world [according to IMD World Competitiveness Ranking 2024]. Besides serving as the regional home for many top multinational corporations today, Singapore also continues to draw international startups and companies looking to advance their capabilities and scale up business activities in Asia and beyond.
“The rise of Singapore as a business destination is rooted in its strong business fundamentals. Notably, it is a pro-business, high-trust environment where both local and global companies can thrive. In 2024, Singapore maintained its position as the world’s leading business environment for the 15th consecutive year. Businesses can readily navigate our straightforward business frameworks, tap into competitive tax and business incentives, and leverage strong IP protection regimes to safeguard their innovations. Additionally, businesses have confidence in Singapore’s robust regulatory environment and political stability, knowing they can stay for the long run if they choose to incorporate here. The proof is in the pudding – today, Singapore is home to over 7,000 multinational corporations (MNCs), including the likes of Dyson who have established their headquarters here.”
Another factor for its success is that the business environment in Singapore is built on partnerships and collaboration: “Importantly, businesses can readily plug into our ecosystem and seek private-public partnerships to scale. We have established an Open Innovation Network (OIN) to connect corporates with innovative SMEs and startups, so they can access ideas and resources from a greater pool of talent and crowdsource solutions to address industry pain points. Businesses can also tap into rich scientific and academic capabilities – including our deep talent pool comprising nearly 52,000 researchers – to deepen and commercialise their research.”
Singapore’s success as a startup hotspot is also due to its global connectivity. “We are strategically located in the heart of Asia and have established an extensive network of free trade agreements with various countries and regional blocs. This increases the ease of market access and catalyses greater cross-border opportunities for businesses based here. Enterprise Singapore has also established the Global Innovation Alliance (GIA) for startups to access demand in key innovation hubs all over the world. Our GIA network now runs programmes in 24 global innovation hubs, including in Tokyo, Seoul, San Francisco, London, and Stockholm,” explained Ngiam.
What types of investors are most active in Singapore’s startup scene?
According to the Singapore Venture Funding Landscape 2024 report, Singapore captured the bulk of the deal value across six ASEAN countries (67%), totalling $4.8 billion. Commenting on this, Ngiam said: “Investors are generally keen on leveraging Singapore as a strategic gateway into Asia and seeking high-growth opportunities, including in areas such as fintech and artificial intelligence (AI).”
More recently, Singapore has seen investment from investors across the world. “Increasingly, global investors have been deepening their investments into Singapore’s startup ecosystem. They recognise its value and the opportunities that it presents as the leading startup hub in the region. For instance, EnterpriseSG has been working closely with the likes of Founders Factory and Xora Innovation, to catalyse and grow investments into startups in Singapore across different domains.”
Investment in deeptech is growing in the region as “many investors are starting to recognise the potential for Singapore – with our strong foundation in scientific and academic research – to emerge as a top deeptech hub, and are keen to build and scale new game-changing technologies from here. They know that this is a long-term investment, but are willing to back transformative innovations in areas like greentech, healthtech, and advanced manufacturing that can have a global, outsized impact.
“To catalyse this, we have been engaging and building relationships with top-tier global deeptech venture capitalists who possess advanced technical and commercial knowledge, as well as the talent networks and expertise to help startups in Singapore scale more quickly.”
What support is available for startups in Singapore?
Singapore is one of the fastest growing startup ecosystems worldwide, and has been recently named one of the top global powerhouses well-positioned to attract tech talent and investment by CBRE.
“Such progress does not come easy. It is the culmination of structured and sustained investments over the past three decades into our research, innovation and enterprise domains, to build a deep pool of R&D capabilities and cultivate a critical mass of corporates, talent, and capital,” explained Ngiam.
Enterprise Singapore plays an important role in growing the country’s startup ecosystem. It established the Startup SG Initiative, which provides comprehensive support for startup development across their various stages of growth and across different needs. Together with other government partners, it provides access to resources including talent, funding, and a diverse network of private and public partners. These include:
Access to talent
- Tech@SG: provides fast-growing companies with endorsement for Employment Passes (EPs), so they can access the talent they need
- Entrepass: provides work passes for entrepreneurs, innovators, and investors looking to operate a business in Singapore. This must be venture-backed or relating to the use of innovative technologies
Access to finance
- Startup SG Equity: aims to stimulate greater private sector investment into innovative, Singapore-based technology startups with IP and global market potential. In October 2024, the Singapore Government committed an additional $440 million to the scheme
- Startup SG Tech: provides early-stage funding for the commercialisation of proprietary technology with a scalable business model; supports proof-of-concept and proof-of-value
Access to partners
- Startup SG Accelerator: provides funding and non-financial support for incubators and accelerators to enhance their programmes and nurture Singapore-based startups’ development
Access to global markets
- Open Innovation Network: connects corporates and government agencies with innovative startups to crowdsource innovations for existing industry pain points
- Global Innovation Alliance: provides startups with access to a network of innovation hubs across the world to foster international collaboration
With a strong business ecosystem, support available to entrepreneurs, and low tax rates, Singapore is definitely a growing hotspot for startups.
This article originally appeared in the July/August 2025 issue of Startups Magazine. Click here to subscribe
