Q1 GDP May Spell Good News for Singapore Businesses Singapore company registration specialist Rikvin is optimistic that the Republic’s Q1 GDPperformance is a beacon of hope for 1) entrepreneurs in industries related to manufacturing and construction and 2) smaller enterprises keen on repositioning their businessesfor growth. Singapore company formation specialist, Rikvin, is optimistic that Singapore’s Q1 GDPperformance may spell good news for businessesthis year – especially those related to the manufacturing and construction industries or those keen on repositioning themselves for growth. According to advance estimates from Singapore’s Ministry of Trade and Industry (MTI), the Republic’s GDPhas grown by 9.9%quarter-on-quarter (q-o-q) in Q12012. This represents an improvement from a 6.3%growth forecast and a rebound from Q42011’s 2.5%contraction. On a year-on-year (y-o-y) basis, Singapore’s GDPhas grown by 1.6%in Q12012, exceeding economists’ forecasts more than two-fold. The manufacturing sector, which registered 14.7%q-o-q growth, contributed significantly to the stronger-than-expected performance in Q1this year, having rebound from the previous quarter’s 11.1%contraction. Another star industry, construction, also demonstrated a strong comeback with a 24.6%q-o-q growth following a 2.2%contraction in Q42011. Commenting on the performance, Mr. Satish Bakhda, Head of Rikvin’s Operations said, “The stronger-than-expected performance, particularly in manufacturing and construction, could indicate a rosier-than-expected year for firms in sectors closelyconnected to these industries. For example, with more housing and infrastructure projects in the pipeline this year, we anticipate more interior design firms and raw materials traders to tap the growth momentum and opt for Singapore company setup.” “Furthermore, a recent Straits Times news article reported that many industry leaders from the construction, food & beverage and pharma industries have expressed a positive outlook and expansion plans for 2012,” added Mr. Bakhda. Analysis by Rikvin shows that the healthy performance in Q1so far could add to this positive businesssentiment and motivate more smaller Singapore-incorporated
enterprises to realign their businessin order to position themselves for growth. â€œ Singapore corporate tax is low as it is and has been instrumental to motivating more professionals to be entrepreneurial. However, Singapore is making it easier for entrepreneurs to set up shop, do businessand move up the value chain through the enhancement of the Productivity and Innovation Scheme (PICScheme). We anticipate that more smaller enterprises will take advantage of this tax incentive scheme; and invest not only in technology or training but innovative strategies that will elevate their businessahead of the competition,â€? affirmed Mr. Bakhda. About the Publisher: Rikvin is a Singapore-based consultancy that offers businesssolutions for both local and foreign professionals, investors and entrepreneurs. Rikvinâ€™s areasof expertise include assistance to form a Singapore company, Singapore company registration, offshore company setup, accounting, taxation, Singapore employment passand other related corporate services. Rikvin also provides immigration services for foreign professionals wishing to relocate to Singapore. Rikvin PTELTD 20 Cecil Street, #14-01, Equity Plaza, Singapore 049705 Main Lines: (65) 6438 8887 Fax (65) 6438 2436 http://www.rikvin.com
Published on Apr 28, 2012
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