The final report of 2014 identified global trends that have impacted Singapore business formations before undertaking an in-depth analysis of company formation statistics. The report concluded that a decelerating China and subdued domestic consumption in emerging economies together weighed down global economic growth in Q4 of 2014. Despite this, the year finished positively with a record number of business formations in the final quarter.
Looking forward, the report predicts the US's recovery will strengthen in 2015. However, the weak recovery in the Eurozone and continued moderation in China will weigh down on Singapore's growth in the first half of 2015. The plummeting oil price will impact Singapore's important trade partner, Malaysia. Despite this, Singapore's growth outlook remains favourable, aided by strong domestic demand and an improving global economy.
The report predicts that falling energy costs will benefit many Asian economies, which are predominantly oil importers, freeing up government funds for infrastructure and developmental projects. Individual consumption will increase, aided by lower fuel and food costs. The government's productivity schemes and the country's integral strength will benefit from the improving global economy by the second half of 2015. The report anticipates that any faltering in the beginning of the year will be compensated by a pickup as the new year progresses.
The Q4 2014 report shows that although the total number of Singapore business formations is lower than the preceding quarter, it is in line with the trend observed in previous business years. But when compared to the average of previous years, the total number of new businesses formed has far exceeded the trend. Q4 of 2014 set a new record with 20,540 new business registrations.
The share of companies incorporated with 100% foreign shareholding increased from 19% in Q3 to 22% in Q4 and the share of companies formed with mixed shareholding increased marginally from 10% in Q3 to 11% in Q4. Companies from countries like Australia, USA, UK, India, China and Japan have set up subsidiary companies in Singapore.
For further information on the report please contact: Fong Yee Chye, Hawksford Singapore, +65 6222-7445, fongyee.chye@guidemesingapore.com
Reporter: PR Wire
Editor: PR Wire
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