Growing Chinese Businesses in Singapore

Why Singapore

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.

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

Doing business in Singapore is easier for Chinese corporates because of the city-state’s partnership with China. The two countries are working together to build trading routes across Asia and are cooperating in infrastructure, financial services, transportation and logistics among key areas. Their government-to-government projects include the Chongqing Connectivity Initiative, Suzhou Industrial Park and Tianjin Eco-city.

A business-friendly environment

Singapore offers a world-class business environment for Chinese companies looking to set up in the city-state. The banking system is efficient, there’s a good supply of skilled workers, and everything works – from registering a business to enforcing contracts. It is no surprise then that the World Bank has ranked Singapore second globally for ease of doing business (PDF, 2.8MB).

Capturing international business expansion opportunities

Singapore has kept its doors open to trade. This has allowed it to draw considerable foreign direct investment (FDI) and become one of the top countries in the world for FDI. In 2018, for example, it attracted around USD77 billion in investments – more than 53 per cent of the USD145 billion that flowed into Asia2.

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 21 free trade agreements with 32 trading partners. Chinese companies can leverage this to expand their businesses within and even beyond ASEAN.

Capturing international business expansion opportunities

Mandarin is widely spoken in Singapore. Although English is the administrative language and the medium of instruction in schools, the Singapore government promotes the teaching of two languages to all school children. As a result, a high proportion of Singapore’s population today speak Mandarin as their first or second language.

Find out more about HSBC China SG Corridor

Discover the opportunities that the Belt and Road Initiative (BRI) will bring to ASEAN and the ways Chinese corporates with expansion goals can take advantage of the China-Singapore Corridor to tap the potential of the region.

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.

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.

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