{"id":66482,"date":"2020-11-11T08:04:00","date_gmt":"2020-11-11T07:04:00","guid":{"rendered":"https:\/\/cms.munich-startup.net\/?p=66482"},"modified":"2024-05-08T11:09:13","modified_gmt":"2024-05-08T09:09:13","slug":"going-global-singapore","status":"publish","type":"post","link":"https:\/\/cms.munich-startup.net\/en\/66482\/going-global-singapore\/","title":{"rendered":"Going Global: Singapore, an ideal springboard for startups"},"content":{"rendered":"
\n

When Singapore first gained independence in 1965, its per capita GDP was $516 and it had no natural resources. In 2019, the balance was much more positive: Although Singapore is the second smallest country in Asia, with only 0.2 percent of the land mass of Germany, it recorded an impressive Per capita GDP of $58,830<\/a>In comparison, Germany's per capita GDP was $47,628.<\/p>\n\n\n\n

Germany and Singapore have long maintained close relations. Singapore is Germany's largest export trading partner in the Association of Southeast Asian Nations, or ASEAN. Germany, in turn, is one of Singapore's largest trading partners in the European Union. Singapore's position in the EU is so important that it is the first ASEAN country to conclude a free trade agreement with the EU, which EUSFTA<\/a>In short, the city-state in the center of Southeast Asia is so influential that startups cannot afford to ignore it in their global expansion plans. Those who decide to expand to Singapore will be rewarded for their courage: An entrepreneurial environment with a business culture that is easily understandable for Europeans and with numerous support options enables young companies in particular to achieve rapid growth in the highly tech-savvy Southeast Asian region.<\/p>\n\n\n\n

Ideal all-round ecosystem makes founders' hearts beat faster<\/h2>\n\n\n\n

As an entrepreneur and global citizen, I have co-founded and co-founded eight startups, lived in Europe and the USA, and have called Asia home for more than 25 years. Of all the Asian nations I've experienced, Singapore stands out clearly: With its high standard of living, its very business-friendly environment, its efficient working practices, and its stable, supportive government, the island nation offers a straightforward and almost perfect environment for innovation and entrepreneurship, making founders' hearts beat faster.<\/p>\n\n\n\n

This personal impression is also confirmed by official figures. For over 10 years, the \u201clittle red dot,\u201d as Singapore is often called, has been ranked by the World Bank as one of the three countries in the world where easiest way to do business<\/a> can. The IMD World Competitiveness Ranking 2020<\/a> recognizes Singapore as the world's most competitive economy for the second year in a row. Starting a business takes less than a day, and most procedures can be conveniently completed online in English. The same process would take approximately two to three months in Germany.<\/p>\n\n\n\n

This business-friendly and secure environment, combined with a large and highly qualified talent pool, also attracts tech giants such as Google, Facebook and Twitter. 80 of the world's 100 leading<\/a> This is one of the reasons why technology companies have their headquarters for the Asian region in Singapore. 1,800 German companies are also represented there today, and the Technical University of Munich (TUM) was the first German university to establish an overseas campus in Singapore in 2002. Singapore is thus attracting entrepreneurship, even amid the COVID-19 pandemic. Companies such as Tencent, Zoom, and Snap continued to invest in Singapore and expand their operations in 2020.<\/p>\n\n\n\n

An active startup scene<\/h2>\n\n\n\n

The startup scene is active and vibrant. More than 3,800 tech startups are based in Singapore, including six of Southeast Asia's twelve unicorns: Grab, Sea Group, Lazada, Razer, Trax, and Bigo. One reason for this concentration is easy access to high-quality financing. According to Startup Genome<\/a> Singapore is one of the world's top ten financing ecosystems. Home to over 150 local and global accelerators and incubators, Singapore's openness to startups is evident.<\/p>\n\n\n\n

Singapore's government offers a wide range of support programs for startups. Even at a relatively early stage of the COVID-19 pandemic, the country quickly provided additional support for the startup community. A supplementary government budget is intended to help founders prepare for a recession and continue to establish and grow innovative companies. Among the measures is the improved "Startup SG Founder" program, which aims to encourage more locals to become entrepreneurs.<\/p>\n\n\n\n

To specifically promote innovation, the government allows companies to test products and approaches in a protected area using a "sandbox principle." Such an offer exists, for example, for testing innovative financial products and services. Companies can present their concepts in a "Fintech Regulatory Sandbox<\/a>\u201c of the local monetary authority in a secure live environment for a limited period of time and are protected from business failure.<\/p>\n\n\n\n

Singapore also welcomes international startups and makes it easy for foreign founders to become part of this dynamic ecosystem. For example, foreign entrepreneurs with startup intentions can apply for a special EntrePass<\/a>Apply for a visa to establish a new business and operate it for one year. The EntrePass can be renewed provided certain criteria are met, such as proof of business activity, ownership of at least 30 percent of the company's shares, and a certain number of full-time employees.<\/p>\n\n\n\n

Singapore, gateway to Asia<\/h2>\n\n\n\n

Anyone who has never done business in Asia should start with Singapore as a kind of "Asia Light." Singapore is a cosmopolitan city with a business culture that Europeans can easily understand, strategically located, and easily accessible thanks to its modern international airport. Its nearly 6 million inhabitants represent a dynamic mix of different Asian cultures. While the market itself may not be large, it is an ideal starting point for expansion into other markets. Using Singapore as a hub, startups gain access to 650 million young, digitally savvy, and technology-friendly consumers across Southeast Asia. Many countries in the region are also emerging economies, offering startups the opportunity to address specific existing problems with new and innovative solutions. Singapore is therefore an ideal springboard into the region and the world, as it has 25 bilateral and regional free trade agreements<\/a> with countries such as Australia, China, India, Japan, Korea, New Zealand and Sri Lanka.<\/p>\n\n\n\n

The pandemic has accelerated the trend towards digitalization, particularly in this region. By the end of 2020, There are 310 million digital consumers in Southeast Asia<\/a> \u2013 a figure that was originally forecast to be reached only in 2025. Logistics and transport, e-commerce, and fintech form the backbone of Southeast Asia's digital economy. These three key industries received eight months of 2020, most of the financial resources<\/a>Looking ahead to 2021 and beyond, other fast-growing industries have the potential to help solve the region's challenges: agritech, healthtech, edtech, business solutions\/enterprisetech, and digital content production and distribution.<\/p>\n\n\n\n

Beyond Southeast Asia, Asia\u2019s rise is even more evident this year, with 30 percent of the best startup ecosystems located in the region, compared to just 20 percent in 2012. Of eleven new ecosystems emerging List of Startup Genome<\/a> six are in the Asia-Pacific region.<\/p>\n\n\n\n

For all these reasons, startups are well advised to choose Singapore as a pilot market and hub for expansion into the Asian region.<\/p>\n\n\n\n

3 tips for entering the Singapore market<\/h2>\n\n\n\n

An estimated 8,000 Germans live in Singapore. Entrepreneurs who want to join them have several options for easy and rapid market entry. Investment promotion agencies in Germany, such as Germany Trade & Invest or the Singapore Business Forum, and in Singapore, such as the Economic Development Board, the AHK Singapore, or Enterprise Singapore, ensure intensive exchange in both directions. In addition, there are three great offers for easy market entry:<\/p>\n\n\n\n

  1. The free program of the German Accelerator<\/a> supports German startups in expanding to Southeast Asia via Singapore. The program is funded by the Federal Ministry for Economic Affairs and Energy and has already supported 40 German startups in defining and planning their Market entry strategy for Southeast Asia<\/a> supports.<\/li>
  2. Publicly advertised National Innovation Challenges offer startups the opportunity to collaborate directly with companies to solve specific problems. Each challenge offers participants the opportunity to receive funding of up to 2 million SGD (1.2 million euros) to develop and implement suitable technologies.<\/li>
  3. Singapore offers numerous events and opportunities to showcase and distinguish themselves, such as the Singapore x Europe Innovation Partnership Forum. This demand-driven competition brings together over 20 leading Asian multinationals, investors, and co-innovation partners to help European startups connect with potential customers in Singapore and Asia.<\/li><\/ol>\n\n\n\n

    5 tips on business culture in Singapore<\/h2>\n\n\n\n

    Singapore is multicultural and open. Europeans will quickly find their way around. However, a few tips can make getting started easier:<\/p>\n\n\n\n

    1. Punctuality is also a virtue that is highly valued in Singapore.<\/li>
    2. Well-groomed, high-quality clothing and a confident demeanor help in daily business life.<\/li>
    3. Physical contact should be avoided. A light handshake is sufficient as a greeting.<\/li>
    4. Small talk topics are diverse. Basically, anything can be discussed, but politics should be left out. Praising the excellent infrastructure and excellent cuisine is a good way to start any conversation. Don't be surprised if personal questions are asked, especially at the beginning of a conversation.<\/li>
    5. Hierarchies and personal recommendations play an important role.<\/li><\/ol>\n<\/div>","protected":false},"excerpt":{"rendered":"

      The Indo-Pacific region is considered the world's growth engine and is a correspondingly high priority for German foreign policy. Singapore is the heart and springboard of this region. But what exactly makes this small city-state so attractive for companies, and how can German startups successfully gain a foothold there? For our "Going Global" series, Claus Karthe, CEO of the Southeast Asia Program at German Accelerator, shares his experiences and offers helpful tips.<\/p>","protected":false},"author":33,"featured_media":66484,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1091,5637,5638,1083],"tags":[4047,731,628,3361],"acf":[],"yoast_head":"\nGoing Global: Singapur, ideales Sprungbrett f\u00fcr Startups - Munich Startup<\/title>\n<meta name=\"description\" content=\"Singapur ist Herzst\u00fcck und Sprungbrett des indopazifischen Raums. 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