There are multiple types of business in Singapore, each classified under a specific industry type. Because the Singaporean government provides compliance regulations for each industry, it is important to know what cluster your company falls under to ensure that your business operations are headed in the right direction.
In this article, we'll present to you the 7 clusters that make up Singapore's economic landscape, as well as the guides to incorporate your business according to the industry. Here's what you should know about doing business in Singapore:
Why Do Business in Singapore?
The Booming Singapore Economy
Singapore's economy is known as one of the fastest-growing economies in the world. Known as Asia's Economic Powerhouse, the country has a GDP per capita of 72,794.00 USD, making it the highest in the Asia Pacific Region.
Singapore is also the 5th most competitive country in the world, according to the IMD World Competitiveness Rankings 2021, and is a global leader for political and operational stability. The Singapore exchange is one of the most progressively-growing exchanges in the world.
Ease of Doing Business in Singapore
According to the World Bank, Singapore consistently ranks among the top three countries with the Ease of Doing Business as the country is highly-open to innovation, foreign investment, and economic improvements.
Opportunities for Entrepreneurs
Doing Business in Singapore can be lucrative for aspiring entrepreneurs as the Singapore government provides grants and financial incentives for startups incorporating in the country. There is also a stable and skilled labour force available for hire, and Singapore has a strategic location as a financial hub in Southeast Asia.
Types of Industry in Singapore
Considered as a business hub in the South East Asia Pacific Region, Singapore is home to 23 key industries that make up its GDP. These industries are categorised into 7 clusters, namely: Manufacturing Sector, Lifestyle, Human Health, Connectivity, Environment, Urban Systems and Services, and Modern Services.
Each cluster has a set of responsibilities, as well as a respective Singapore department, and a representative of the private sector to oversee the activities within each cluster. Categorising industries into these clusters should improve the industrial production growth rate, strengthen the Singapore dollar, and manage the different industries within the country.
1. Advanced Manufacturing & Trade (AMT) Cluster
The manufacturing sector contributes to 20%-25% of the country's overall economic growth, and is the largest industry in Singapore. Coupled with the international trade sector, the AMT Cluster includes both manufacturing and trade industries, and is overseen by the Singapore Economic Development Board (EDB) to manage manufacturing output.
Industries included within this cluster are: Aerospace Technologies, Electronics, Energy and Chemicals, Food Manufacturing, Logistics and Shipping, Marine and Offshore, Precision Engineering, and Wholesale Trade.
2. Lifestyle Cluster
The Lifestyle Cluster includes industries that deal with food and hospitality. Enterprise Singapore (ESG) is the Singapore department that oversees industries listed under this sector, which includes Food and Beverage Services and Establishments, the Retail Industry, and the Hospitality Industry.
3. Human Health & Potential (HHP) Cluster
Led by both the Singapore Ministry of Health (MOH) and the Singapore Ministry of Education (MOE), the HHP Cluster focuses mainly on the Health and Education industries.
4. Connectivity Cluster
The Connectivity Cluster includes all forms of transportation: Air Transport, Sea Transport, and Land Transportation. This includes transportation for both shipping and trade, as well as transportation for commuting. The Connectivity Cluster is overseen by the Ministry of Transport (MOT).
5. Resource & Environmental Sustainability (RES) Cluster
The RES Cluster handles the natural resources, and environmental sectors in Singapore. If a company deals with the environmental services industry, Singapore categorises it under the RES cluster, managed by the Ministry of Sustainability and the Environment (MSE), and the Ministry of Trade and Industry (MTI).
6. Urban Systems Cluster
This cluster is overseen by the Building and Construction Authority (BCA). Industries within this cluster include the Real Estate industry, the Construction industry, and industries handling Security Services.
7. Modern Services Cluster
The Ministry of Communications and Information (MCI) oversees the Modern Services Cluster, which includes industries such as Financial Services, ICT and Media, and Professional Services.
How to Start a Business in Singapore
Starting a company in Singapore is relatively simple as the incorporation process can be done online. Depending on the type of industry and cluster, the regulating authority handling the process may differ. Here are guides on how to incorporate a business or company in Singapore according to the nature of the business:
- Starting an Import-Export Business in Singapore
- Starting a Retail Business in Singapore
- Starting an Entertainment Business in Singapore
- Starting a Land Transport Business in Singapore
- Starting a Law Firm in Singapore
- Starting a Security Company in Singapore
- Starting a Restaurant or Food Business in Singapore
- Starting a Kindergarten School in Singapore
- Starting a Hedge Fund in Singapore
- Starting a Fund Management Company in Singapore
- Starting a Dental Practice in Singapore
- Starting a Cryptocurrency Company in Singapore
- Starting a Crowdfunding Business in Singapore
- Starting a Cleaning Business in Singapore
- Starting a Catering Company in Singapore
- Starting a Non-academic Private School in Singapore
- Starting an Art or Music Company in Singapore
- Starting an Academic Private School in Singapore
- Starting an Online Business in Singapore
Start Out with WealthBridge
Different industries in Singapore have different roles within the country's economy, and knowing the cluster that your company falls under will help you understand the requirements in incorporating within the industry, and recognise the regulating authorities you will need to contact to set up your company.
Skip the guesswork, and partner with us here at WealthBridge for all your corporate services. Whether you're entering the publishing industry, or setting up in the chemical industry, our team can assist you with what you need to get the paperwork done.
Contact us today to discuss what we can do for your company!