Although Hong Kong has emerged tops in this list, Singapore’s office spaces are still less costly. Hong Kong’s property prices have increased by 30% in spite of its devalued currency over the past year. Singapore’s property prices, on the other hand, have increased by 23% in spite of its currency appreciation. As a result, Singapore’s property prices are more competitive than Hong Kong’s over the past year. The awareness of lower office prices bodes well for MNCs but it holds more weight for SMEs and start-ups as savings in office rental translates to real, potential savings that directly affect the bottom line.

 

However, it is not enough for an entrepreneur to secure a cost-effective office space. The cost has to correspond to the quality of one’s office location i.e. it has to be good value for money. More importantly, the location and perceived quality of one’s office is most vital to giving potential clients a good first impression of the company even before they set foot in the office. On this front, Singapore trumps Hong Kong as it has an abundance and wide variety of commercial and office spaces in the heart of the city’s Central Business District (CBD). While Hong Kong has a limited and competitive supply of office spaces even in its newest business hub, Kowloon East, the Singapore government had anticipated a growing demand for commercial space and reclaimed land near the CBD a decade ago.

Additionally, Singapore has increased the pace of new office developments to cater to the growing demand. As a result, an estimated 3 million square feet of office space is projected to appear on the market this year. On the other hand, Hong Kong’s office supply will rise by only 1.3 million square feet and outside of the Central area to boot. An entrepreneur wishing to secure an office space in the heart of a city’s business district has a higher chance of realizing that dream in Singapore than in Hong Kong. Furthermore, Singapore’s air quality adds to the value of its office property and quality of living vis-a-vis Hong Kong’s air density and pollution.

On these counts, Singapore supercedes Hong Kong as a office setup destination due to its ability to better manage its land resource as well as to provide high-quality office spaces, especially for SMEs.

Singapore has a high density of banking, financial and industrial goods and services-related companies so entrepreneurs specializing in these services are in good stead to setup a Singapore subsidiary or opt for Singapore branch registration. Businesses specializing in the industrial goods and services sector converge in Singapore to take advantage of its deep talent pool of skilled and low-cost manpower. Those in banking and financial services are attracted to Singapore’s prudent investment strategies and less risky banking policies such as the higher capital adequacy requirements.

Other than offering an abundance of affordable, high-quality office spaces, Singapore remains as a top business location as it offers entrepreneurs and investors a diverse and robust talent pool. Between December 2009 and 2010, the number of foreign workers and professionals in Singapore grew by 530,000 or 0.7% y-o-y. According to Singapore’s Ministry of Manpower, employment has risen by 28,300 over the first quarter of this year. Just last month, Singapore updated its immigration policies to attract professionals and highly-skilled talent to Singapore. Prior to this, requirements for the Singapore entrepreneur visa (EntrePass) has been tightened as well. However, the Ministry of Manpower saw no less than an average of 3,000 applications annually, indicating an unwavering confidence in Singapore as a business hotbed.

Last but not least, Singapore offers assurance to businesses in its transparent and efficient style of governance. Following the latest elections, Singapore’s younger and newer government are more than keen to ensure that enterprises in budding industry sectors receive the seed funding and framework needed to develop themselves into globally competitive companies. In the wake of newer government, Singapore’s low taxation policy remains unchanged as is its priority in developing investments domestically and abroad. GuidemeSingapore is confident that Singapore’s reputation as a business magnet is set to flourish in years to come.