Singapore is an island country off the southern tip of the Malay Peninsula in Southeast Asia. It is separated from Malaysia by the Straits of Johor, and from Indonesia's Riau Islands by the Singapore Strait. Singapore has a strategic location for Southeast Asian sea routes. The government system is a parliamentary republic; the chief of state is the president, and the head of government is the prime minister. Singapore has a highly developed free market economy in which the economy is open and corruption-free. Singapore is a member of the Asia-Pacific Economic Cooperation (APEC), the Association of Southeast Asian Nations (ASEAN), and the Trans-Pacific Partnership (TPP).
Singapore is known for its transparency, political stability, and ease of doing business—factors that people look for in an investment destination.
Moreover, government policies in Singapore support the creation and growth of industries and businesses, including the startup ecosystem.
In 2020, the government implemented financial relief measures to buoy individuals and businesses affected by the COVID-19 pandemic. The Monetary Authority of Singapore later announced that the government will be extending support to those who need more time to repay their loan.
To be sure, the pandemic will continue to pose challenges to any industry moving forward. That’s why it’s important to be prepared to leverage on the growth and recovery of these industries, including the Singapore property market.
Singapore has always been viewed as a top investment destination, as well as a safe haven for investors because of the country’s low taxes, rule of law, and one of the world’s best airports. It is home to 46% of Asian regional headquarters across a diverse range of industries, according to the Economic Development Board.
Steadily, Singapore is poised to become the tech hub of Asia as tech giants from China and the United States set up shop in the city-state. In terms of multinational tech companies, Singapore accounts for more than half of Asian regional headquarters.
So it comes as no surprise that some of the world’s wealthiest and most highly educated would want to live and work in Singapore, thus driving up demand for properties.
Singapore is the world’s third-largest exporter of high-tech goods, produces four of the world’s top 10 drugs, and is the fourth-largest producer of refined oil. It’s little surprise then, that industry giants like Micron, Shell and Merck have not only chosen Singapore as a manufacturing base, but as a strategic hub for R&D, headquarters and supply chain management.
This world-class ecosystem is bolstered by active government initiatives where multinational corporations (MNCs) can partner with research and tertiary education institutes to develop cutting-edge innovations with global impact.
Singapore’s reputation as a plug-and-play manufacturing ecosystem will only continue to grow, as more and more top MNCs leverage the country’s investment in the sector.
Singapore is forging ahead with an adaptable but highly skilled local workforce comprised of complementing robots and humans.
Singapore currently ranks third in the Global Talent Competitive Index, thanks largely to two major strategies. First is the government’s significant investment in human talent through their SkillsFuture series in advanced manufacturing and their partnerships with industry leaders and tertiary institutes. Second is a massive investment in robotic technology, which has led them to become third in the world for robot density, according to the Global Talent Competitive Index.
These synergetic workforces show an established commitment to both human and robot capital that provides end-to-end manufacturing expertise — an enormous plus to prospective MNCs looking to manufacture in Singapore.
In Q1 2022, industrial rents continued their sixth consecutive quarter of growth, rising by 1.0% QOQ, the strongest quarterly growth seen since Q3 2013. Correspondingly, industrial prices followed the same upward trajectory, rising by 3.1% QOQ, the strongest quarterly growth seen since Q1 2014. Trade indicators have exhibited a similar trend, with expansion recorded in manufacturing output, NODX and PMI, albeit with growth moderating.
Demand for industrial assets, especially high specification warehouses, factories such as Midview City, will be underpinned by growth industries such as the food, media, logistics, technology and biomedical sectors. Further, the drive for more robust supply chains, the switch to a just-in-case strategy, as well as the increasing digitalisation of industries and the economy should continue to support industrial rent and price growth.