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Is business dominance slipping away from Singapore’s grasp?
Business formations dropped by 7.9% in 4Q15.
Economic uncertainties are ironic constants in the market climate, but analysts cough the recent hiccup in business formation to a usual trend.
According to Hawksford Singapore, while the 16,612 new businesses formed in 4Q was significantly lower than the preceding quarter, this is in line with the typical drop in the last quarter of the year.
Hawksford Singapore said private companies still gained the lion’s share of business formations, accounting for almost half (48.8%) of the total business formation.
Meanwhile, locals still dominated business formations in the final quarter of 2015, with only 35% of formed companies being held by foreigners. The share of foreign individual shareholders also remained at 28% in Q4, dominated by India, China, and Malaysia.
“Singapore continued to attract foreign companies, investors and entrepreneurs because of its strong business fundamentals and its strength as a financial and trade hub. However we should also take note that it is not insulated from the global economic conditions,” Hawksford Singapore said.
According to Jacqueline Low, chief operating officer of Hawksford Singapore, 2015 has actually been a good year for business registrations in the country.
“The dip registered in the numbers for the quarter is something usual, it is in line with the market behaviour for the last quarter of a year. The numbers match the final quarter averages recorded in previous years, excluding 2014,” she said.
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