International Business Management Assignment
International Business Management Assignment
International Business Management Assignment
Singapore is a small country with no natural resources. To promote economic growth and
development, Singapore has kept its economy open to foreign investments and international
trade since its independence in 1965. Within half a century, Singapore has progressed from a
third world economy into a global business hub. Located at the crossroads between the East and
West, Singapore is an attractive location for global businesses to gain access to new and
emerging markets in Asia. With its excellent infrastructure, robust and transparent regulatory
environment, political stability, skilled workforce and a stable and efficient tax regime,
Singapore
has
become
a
trusted
hub
for
many
businesses.
Singapore has a territorial tax system which taxes foreign income on a remittance basis. Double
taxation is eliminated through the provision of a foreign tax credit for taxes suffered by the
taxpayer abroad on the remitted income and through avoidance of double taxation agreements.
Income derived by companies in Singapore is taxed at a flat rate of 17%. The rate has been kept
low to encourage new investment and maintain a conducive business environment.Overall,
the
first
of
many
such
estates
on
the
island.
It was during this exciting period of growth that the Singapore Economic Development Board (EDB) was
established with a budget of $100 million to take on the challenge of convincing foreign investors that the
country
was
a
good
place
for
business.
These two developments marked the start of Singapores industrialisation programme that began with
factories producing garments, textiles, toys, wood products and hair wigs. Along with these labourintensive industries were capital and technology-intensive projects from companies such as Shell Eastern
Petroleum
and
the
National
Iron
and
Steel
Mills.
The success of this programme over time meant new issues had to be tackled, namely the lack of raw
resources that once came from Malaysia and rapidly growing local demand. Singapores solution then
was to develop its export-oriented industries, as EDB opened its first overseas centres in Hong Kong and
New York to be better placed to woo foreign investors.