Market-based SSPs: Singapore
1. Encouraging competition
Aim: fostering a highly competitive and open market economy.
- Competition and Consumer Commission of Singapore actively investigates anti-competitive
practices, promoting market efficiency and restricting monopoly power.
- Trade liberalisation: Singapore has signed 27 FTAs with over 60 trading partners, minimising
trade barriers.
2. Incentive-related policies
- Corporate taxes: capped at 17%, among the lowest globally.
- Incentivises innovation through the Pioneer Certificate Incentive, which provides tax
exemptions for business in innovative sectors, such as biotech and fintech.
- Low personal income taxes: 0% tax for the first SGD 20,000 of income, then maximum rate is
of 24% for incomes above 1 million.
- Interest income taxed: interest income earned on bank deposits is generally not taxed.
- IMPORTANT: Singapore does not impose capital gains tax, making it highly attractive for
investors and businesses.
3. Labour market reforms
- Employment Pass allows firms to hire skilled foreign workers, filling critical talent gaps and
liberalising foreign labour policy.
- Minimal employment regulations in comparison with the rest of the world.
- No minimum wage laws except for certain sectors like cleaning and security.
Outcomes
Business environment:
● 2nd globally in 2020 in the Ease of Doing Business Index.
● 1st in 2023 in the World Competitiveness Ranking → open to global trade and efficient
regulation.
Economic growth:
● Singapore’s GDp grew at an average annual rate of 4.4% from 2010 to 2023, even amidst
global economic uncertainties.
● Among the top 5 countries for FDI inflows.
● Low unemployment rates: 2-3% over the past decade.
● The share of high-skilled jobs has steadily risen, with IT and digital economy jobs accounting
for 22% of total employment in 2023. → lower underemployment of human capital.
1. Encouraging competition
Aim: fostering a highly competitive and open market economy.
- Competition and Consumer Commission of Singapore actively investigates anti-competitive
practices, promoting market efficiency and restricting monopoly power.
- Trade liberalisation: Singapore has signed 27 FTAs with over 60 trading partners, minimising
trade barriers.
2. Incentive-related policies
- Corporate taxes: capped at 17%, among the lowest globally.
- Incentivises innovation through the Pioneer Certificate Incentive, which provides tax
exemptions for business in innovative sectors, such as biotech and fintech.
- Low personal income taxes: 0% tax for the first SGD 20,000 of income, then maximum rate is
of 24% for incomes above 1 million.
- Interest income taxed: interest income earned on bank deposits is generally not taxed.
- IMPORTANT: Singapore does not impose capital gains tax, making it highly attractive for
investors and businesses.
3. Labour market reforms
- Employment Pass allows firms to hire skilled foreign workers, filling critical talent gaps and
liberalising foreign labour policy.
- Minimal employment regulations in comparison with the rest of the world.
- No minimum wage laws except for certain sectors like cleaning and security.
Outcomes
Business environment:
● 2nd globally in 2020 in the Ease of Doing Business Index.
● 1st in 2023 in the World Competitiveness Ranking → open to global trade and efficient
regulation.
Economic growth:
● Singapore’s GDp grew at an average annual rate of 4.4% from 2010 to 2023, even amidst
global economic uncertainties.
● Among the top 5 countries for FDI inflows.
● Low unemployment rates: 2-3% over the past decade.
● The share of high-skilled jobs has steadily risen, with IT and digital economy jobs accounting
for 22% of total employment in 2023. → lower underemployment of human capital.
