What are the strengths and weaknesses of the Singaporeans

Doing Business - Singapore vs Germany

This report is a comprehensive comparative analysis of doing business in Singapore and Germany, giving an overview of various factors such as the business environment, taxes, protection of intellectual property, openness to trade and the workforce.

Economic Environment

In its “Doing Business Report 2018”, the World Bank ranked Singapore as the second easiest place to do business in the world. Germany ranks 24th in this ranking. Below is an overview of some of the key factors that make up the ranking of the individual countries have influenced:

(Ranking based on 190 countries)SingaporeGermany 
Establishing a company 3114
Protection of minority investors772
Payment of taxes843
Cross-border trade4540
Bankruptcy settlement274

According to the Forbes '2018 Best Countries for Business Index', Singapore is ranked 8th worldwide for companies and Germany ranked 14th.

Taxes

As for the tax burden, personal income tax rates in Germany range from 0% to 47.5%, while personal income tax in Singapore starts at 0% and ends at 20% for incomes over S $ 320,000.

The corporate income tax rate in Germany is 15.8%, while the trade tax is between 14% -17%. The effective corporate tax rate is between 30% -33%.

Singapore's corporate tax rate is 4.75% on the first S $ 100,000 and 8.5% on the next S $ 100,000 of profit. Profits over S $ 200,000 are taxed at a flat rate of 17%.

Intellectual property protection

Countries that have strict intellectual property protection systems have been shown to thrive the most. According to the '2018 Global Competitiveness Report' of the World Economic Forum, Singapore ranks third in the global protection regime for intellectual property and Germany ranks 21st.

Global competitiveness

Both countries are equally competitive, as their placements in the "2018 Global Competitiveness Report" of the World Economic Forum show. Singapore is the second largest of 140 economies and Germany is the third largest.

In the Heritage Foundation's 2018 Index of Economic Freedom, Singapore is the second freest economy out of 174 countries, while Germany ranks 25th. In Singapore there have been improvements in areas such as free trade, government spending, judiciary effectiveness and government integrity. On the other hand, there have also been improvements in Germany in terms of tax health, government spending and government integrity.

Openness to trade

Data from the World Economic Forum's "2016 Global Enabling Trade Report" shows that Singapore is number one out of 136 countries in terms of trade openness, while Germany ranks 9th. Singapore has risen to number one due to its open trade policy, stable regulatory environment, low trade barriers, efficient border management, sophisticated transport and port infrastructure, efficient logistics and affordable delivery costs.

bureaucracy

According to the "2017 Corruptions Perceptions Index" published by Transparency International, a global coalition against corruption, Singapore was perceived as a "very clean" and non-corrupt country and ranked 6th. Germany ranks 12th.

The WEF's 2017-2018 Global Competitiveness Report also shows that Singapore has the highest levels of public trust among politicians and the least burden of government regulation. In comparison, Germany ranks 13th and 7th.

Manpower

The World Economic Forum's 2018 Global Competitiveness Report measures some of the key factors related to the quality of the workforce:

 (Ranking based on 140 countries) Singapore Germany
Digital competence of the population 616
Skilled workers can be easily found97
Cooperation in relations between employers and employees219
Ease of recruiting foreign workers9711
Labor tax rate7597

The ranking at a glance: Singapore and Germany

year category Singapore Germanysource
 2018 Ease of doing business224 World Bank, 2018 Ease of Doing Business Report
 2018 The most competitive economy in the world23 World Economic Forum, Global Competitiveness Report 2018
 2018 World's best country for companies814 Forbes' Best Country Index for Businesses
 2019 The freest economy in the world224 Index of the World Heritage Foundation for Economic Freedom
 2016 Country with the greatest trade openness19 World Economic Forum, Global Enabling Trade Report
 2018 Country with the lowest perception of corruption311 Transparency International, Corruption Perception Index
 2018 World's best protection of intellectual property321 World Economic Forum, Global Competitiveness Report