1. Low tax rates: Corporate Tax rates in Singapore dropped from 26% in 1997 to 17% in 2010. It also
has the one of the lowest income tax rates (capped at 20%, UK: 45%, US: 35%) among first world
countries worldwide. This motivates citizens to work harder and earn more money as well as
accumulate more savings, since most of these earnings can be personally appreciated by them.
Furthermore, low corporate and income tax rates would also encourage companies and the rich to
invest in Singapore.
2. Encouraging Entrepreneurship: Relaxing bankruptcy act and promotes enterprise in schools and
tertiary institutions. With these in place, more Singaporeans are motivated to start up companies,
which in turn would employ more people.
3. Reduce government intervention: De-regulation by government such as no minimum wages mean
the market is less disrupted and allowed to run freely. Theoretically, this would allow the market to
reach a maximum equilibrium, growing the economy.
4. Work incentives: Various schemes such as profit-sharing and pay based on productivity (NWC)
encourages workers to maximise their potential and work harder since more work now equals more
pay.
5. Availability of world-class economic infrastructure and services: These include government backed
global banks (e.g. DBS), Singapore's unique location making it a convenient regional HQ (e.g. Rolls
Royce), political stability etc.
These provides investors and companies with the appropriate resources to grow in Singapore.
nice
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