Competitive economy
With its business-friendly environment, high purchasing power, strong demand for sustainable high-tech products, and proximity to neighbouring high-growth markets such as Indonesia and the Philippines, Singapore offers a nearly ideal market for Swedish companies.
The Singaporean economy is among the most competitive and stable globally, characterised by no foreign debt, high government revenue, and a consistently positive budget surplus. It is primarily driven by exports in electronics and precision engineering, complemented by a vibrant services sector that includes information technology, communications, tourism, and finance. Additionally, Singapore's central location in the global supply chain is enhanced by its world-class container terminal, which handles one-fifth of global trans-shipment trade annually.
Demographic shifts
However, Singapore is currently facing a demographic shift due to a declining birth rate and an ageing population, which may pose challenges to its economic growth. By 2030, more than 22% of Singapore's population is expected to be over the age of 65, leading to the country being classified as a "super-aging society." To address this challenge, Singapore is focusing on a substantial influx of foreign workers and a continued emphasis on innovation in automation and digitalisation.
How we can help
At Business Sweden we help Swedish companies looking to invest and expand in this stable and highly dynamic economy. We do this through strategic advice, practical support, market insights and an extensive business network.
Rickard Levin
Head of Strategy & Business Development APACSwedish Presence and Collaborations in Singapore
Over 300 Swedish companies operate in Singapore, more than in and neighboring Southeast Asian markets. Many of these companies use Singapore as a hub for their regional operations, with approximately 75% overseeing markets across Southeast Asia or the entire Asia-Pacific region. Together, Swedish companies in Singapore employ around 8,000 to 10,000 people, primarily in roles focused on marketing, sales, and support.
Swedish exports to Singapore are nearly 10 times larger than Singaporean exports to Sweden. Exports have grown from USD 0.98 billion in 2016 to USD 1.48 billion in 2023, while Singaporean exports to Sweden have seen only a slight increase, from USD 0.16 billion in 2016 to USD 0.17 billion in 2023.
Expansion Potential
Singapore's friendly business environment and geographical location make it an ideal place for businesses aiming to scale in the region, and today, Singapore serves as a stepping stone for many companies wishing to expand further into Asia-Pacific. Further, testing products and services in Singapore provides valuable insights and testimonials for growth in the wider region.
Challenges and Considerations
The main challenge is attracting and retaining talent in the face of high competition and costs. The new "COMPASS system" for employment passes for foreigners adds transparency but complicates the hiring of foreign talent, requiring high minimum salaries and more stringent demands for university degrees.
Cultural Considerations
Singapore's multicultural society, predominantly Chinese with significant Malay, Indian, and Eurasian minorities, values personal relationships in business. Respect for each other's cultures is essential, and it's encouraged to get to know partners before engaging in formal business dealings. Personal questions during meetings are common, and negotiations may take longer than in Western contexts, though they are typically efficient by Asian standards. Singaporeans tend to be well-prepared and expect the same from their counterparts.
