SINGAPORE, Feb. 10, 2016 /PRNewswire/ -- The number of company formations in Singapore dropped in Q4, but foreign investors and enterprises continued to establish their enterprises or subsidiaries in the island state even amidst economic uncertainties.
The business formation numbers plummeted by 5.7% in the quarter, however this has been the usual pattern in all preceding review years, except for year 2014, which was an anomaly. For the whole of Q4 2015, a total of 16,612 businesses were formed, whereas in Q4 2014 a total of 20,540 businesses were formed.
While the year ended on a sober note with the western economies struggling to sustain a modest recovery, the fact that the business formation numbers is within the standard range observed for fourth quarters, even amidst the anaemic global economic conditions, endorses the integral strength of Singapore.
Private limited companies continued to be the dominant type, with 48.8% share of the total business formation. With 1,421 Non-Exempt Private Limited Companies formed during the quarter, Singapore's reputation as a pro-business nation has been cemented.
The share of foreign held companies remained at 35% in Q4. The share has continued to remain constant against 2014 as well, testifying to the confidence of foreign enterprises and investors in Singapore.
Jacqueline Low, chief operating officer of Hawksford Singapore, said: 'The dip registered in the numbers for the quarter is something usual, it is in line with the market behaviour for the last quarter of a year. The numbers match the final quarter averages recorded in previous years, excluding 2014. Overall 2015 has been a fairly good year in terms of business registrations.'
Singapore continued to attract international investors and entrepreneurs. The share of foreign individual shareholders remained at 28% in Q4. Individuals from India, China and Malaysia continue to dominate.
Ms Low added: 'Singapore continued to attract foreign companies, investors and entrepreneurs because of its strong business fundamentals and its strength as a financial and trade hub. However we should also take note that it is not insulated from the global economic conditions.'
For Q4 2015 Singapore Business Formation Statistics Report please click here.
Chye Fong Yee, +65-62227445, fongyee.chye@hawksford.sg
