new FinTech paradise?

The Southeast Asian city-state is accelerating the recruitment of foreign entrepreneurs who want to settle there, thanks to a special visa program with significant financial support. Asia’s financial center is striving to become the global benchmark for FinTech. In fact, the number of FinTech companies has increased 70% in one year. Today there are around 1,000 companies, thanks in part to its strategic geographic location, its strong banking sector and its openness to globalization.

A comprehensive system of financial support for foreigners

In Singapore, FinTech companies are predominantly founded by foreigners who make up no less than 40% of the 5.7 million population. Despite being one of the smallest states in the world, it has a comprehensive system of financial support for its newcomers who want to go global. Indeed, Atler, in partnership with the Singapore government, which has been in power for more than 60 years, offers an accelerator program for risky businesses. By participating in these programs, foreign entrepreneurs can easily obtain a work visa.

A low tax rate to increase attractiveness

The city-state flourished by attracting many multinational companies. In fact, 46% of them choose Singapore thanks to numerous free trade agreements that have been signed with the European Union, China or even the United States. According to a study by the MAS (Monetary Authority of Singapore) there are now 400 FinTechs, compared to just 50 in 2015. Thanks in particular to a low corporate tax rate that the government introduced to make them more attractive. Today there are no fewer than 100 domestic and foreign banks operating in Singapore. The values ​​of bank assets under management have multiplied by 11 in ten years. High-tech giants like Google, Microsoft or LinkedIn have also relied on Singapore to build their regional base in Asia.

In the same category

The democratization of the affiliated speakers continues

In addition, Singapore wants to encourage the creation of digital banking, a format that is becoming increasingly popular around the world. The Monetary Authority of Singapore has also announced that it will issue two digital banking licenses for Grab and Singtel in order to liberalize the banking sector. A perspective that has been confirmed since the beginning of the year. The state received 21 license applications. Paradoxically, despite the fact that many companies are setting up in Singapore, there are still no unicorns for the FinTech industry.

Finally, last August, the MAS announced it would invest $ 184 million in the coming months to help accelerate technology and innovation in finance. These funds will be doubled to advance the development of existing innovative or technologies in full swing.

Ranking of the cities in which we can find the most FinTech. Source: Findexable / Nikkei Asia.

Eldorado of technological progress

The former British colony still advocates a multicultural state today, like its multitude of identities, which are 76% Chinese, 15% Malaysians and 7% Indians. Singapore has been independent since 1965 and has grown commercially over the years due to the influx of foreign workers, particularly from China and Europe. This area of ​​the peninsula off the coast of southern Malaysia continues to surprise everyone with its spectacular advances in technology and finance.

For example, the British company Dyson, which invented new technologies for vacuum cleaners and hair dryers, turned to Singapore without regret by setting up its headquarters there. A clear technological advance: the company Volvo tested a fully autonomous bus with a capacity of 80 people that does not reject emissions.
Some call it an invention, others a barely masked tool for monitoring the population. A robot named Spot has been monitoring the streets of the city-state to check that citizens are respecting social distancing. In addition, the Singaporeans had to identify themselves with the mobile SafeEntry application with their phone when entering or leaving a public facility.

The grass is always greener elsewhere

However, Singapore is recognized for its policy of increased surveillance of citizens with its facial recognition-based identity system and its desire to equip its population with an electronic bracelet to control the COVID-19 pandemic or more. ” Forcing its population to install a tracking application to stop the virus. Indeed, the phrase “the grass is always greener elsewhere” takes on its full meaning when we remember that the death penalty is still legal there, not to mention the press, which risks itself when reprisal threatens. . This clash of the two worlds is reminiscent of the rise in social inequalities with the rise in the cost of living and the shortage of skilled labor that could ultimately affect the status of Silicon Valley in Asia. ‘occupies the city-state.

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