It is crucial to recognize the various instruments of international trade policy that assist an economy’s development in the age of globalization. Countries are figuring out solutions to deal with problems connected to competitiveness, economic growth, and diversification.
Investors are actively involved in addressing and resolving economic difficulties in addition to continuously focusing on managing price swings. The degree of an economy’s business friendliness has taken center stage in this scenario. Pro-business nations maintain a competitive edge and draw in international business owners, corporations, and investors.
Singapore
Ireland
Corporate Tax
0% (on Foreign Profits)
12.5%
Withholding Tax
0% (on Dividends)
25%
Time to Incorporate a Business
3 days
5 – 10 days
In this article, we evaluate Singapore and Ireland against a set of fundamental standards that define the best conditions for company expansion.
Rankings from several worldwide surveys and business indexes are included to the comparison. Ireland’s economy has changed from being largely agricultural to becoming knowledge-based. It was victimized by a high rate of inflation that was made worse by the financial crisis of 2008. The Irish economy is still impacted by these problems.
Singapore, on the other hand, continues to be a highly valued commercial location because to its openness to foreigners, first-rate infrastructure, low degree of corruption, effective business rules, and reasonable tax rates. Detailed comparisons of the two nations are provided below.
BUSINESS ENVIRONMENT
The World Bank’s 2016 Ease of Doing Business Report gave Singapore the top spot. This grade confirms its high level of commercial friendliness. Ireland’s ranking of 17th demonstrates how unfavourable its climate is for establishing and running enterprises. The fact that Singapore ranks well is not surprising given the fact that incorporating a business there only requires two steps and takes less than 24 hours.
In contrast, it can take up to four procedures and 13 days to incorporate a corporation in Ireland. Singapore received the top rankings from the World Bank in four categories: starting a business (#10), protecting investors (#1), paying taxes (#5), and contract enforcement (#1). On the same metrics, Ireland received rankings of #25, #8, #6, and #93.
Singapore came in at number five in Forbes’ list of the “10 Best Countries for Business” in 2010, while Ireland came in at number six. Trade freedom and a lack of corruption were the areas with the most pronounced contrasts. Ireland ranks #12 whereas Singapore ranks #1 in terms of commercial freedom. Ireland ranks #14 in terms of corruption, roughly five places higher than Singapore, which is #3. Singapore edged Ireland in the categories of tax burden (#4 vs. #5 in Ireland), investment protection (#2 vs. #5), and red tape (#4 vs. #8 in Ireland).
TAXES
According to the “2016 Paying Taxes Survey” published by PWC, IFC, and the World Bank, Singapore is the fifth-easiest country in the world to pay taxes, with Ireland coming in at number six.
Singapore’s effective corporate tax rates are significantly lower than those of Ireland’s, even though Ireland fares better than Singapore in Forbes’ 2009 Tax Misery and Reform Index, ranking #5 vs. #11. Singapore’s corporate income tax rate is 8.5% for revenues under S$300,000 and 17% for profits beyond S$300,000. The corporate income tax rate in Ireland is 12.5% of trading income.
Singapore’s GST rate is 7%, while Ireland’s VAT rate is 21%. Tax and accountancy company KPMG has ranked Singapore’s corporate income tax rate as the third lowest in the Asia-Pacific region, even after taking Ireland’s decreased VAT rate of 13.5% into account. While the marginal income tax rate in Ireland is 41%, the top personal income tax rate in Singapore is 20%.
Ireland ranks #5 and #6 respectively, whereas Singapore is #4 on Forbes’ ranking of the “10 Best Countries for Business” and #5 on the World Bank’s “2016 Ease of Doing Business Report” in terms of tax burden.
IP PROTECTION
Singapore has established a reputation as a place that respects and safeguards intellectual endeavours. It provides a top-notch environment, infrastructure, and platform for the development of intellectual property. Singapore has the fourth-best intellectual property protection system in the world, according to the World Economic Forum’s “2015-2016 Global Competitiveness Report.” However, Ireland’s IP regime, which came up at number 10, isn’t as strong as Singapore’s.
According to Forbes’ 2010 list of the “Best Countries for Business,” Singapore ranks eighth in terms of property rights, while Ireland falls to 12th place.
INTERNATIONAL COMPETITIVENESS
According to the “2015-2016 Global Competitiveness Report” of the World Economic Forum, Singapore has the second-most competitive economy in the world. It placed first for higher education, training, and the efficiency of the products market; second for institutions, infrastructure, health, and elementary education, as well as the efficiency of the labour market and the growth of the financial market.
Ireland was placed #24 in the overall index score for the years 2015–2016. Ireland was placed #12 in terms of institutions, #61 in terms of the development of the financial industry, and #19 in terms of factors related to innovation and sophistication. Ireland was ranked #13 for its labour market efficiency and #7 for the efficiency of its goods market in the study.
The second-freest economy in the world is Singapore, according to the Heritage Foundation’s “2015 Index of Economic Freedom,” while Ireland came in at number nine. Singapore received good marks across the board, further confirming its business-friendly environment, strong property rights, and flexible labour laws.
The IMD’s “2015 World Competitiveness Scoreboard” placed Singapore third and Ireland fifteenth.
OPENNESS TO TRADE
Singapore scored first among 138 economies in the “2014 Global Enabling Trade Report” for trade openness, whereas Ireland came in at number 26. Singapore was ranked first for the effectiveness of customs administration, second for the accessibility of local and international markets, and third for the effectiveness of import/export procedures.
In contrast, Ireland’s rankings for access to both domestic and international markets, the availability and quality of transportation services, the effectiveness of customs administration, and the effectiveness of import/export procedures were all in the bottom 10.
BUREAUCRACY
Singapore ranks first for having the best civil justice system in the world, according to the World Justice Project’s 2010 Rule of Law Index. According to the ranking, Singapore is highly ranked for its civil justice system accessibility, criminal justice effectiveness, and lack of corruption.
In a 2010 study of 12 Asian economies, Singapore was ranked first for having the most effective bureaucracy by the Political and Economic Risk Consultancy (PERC).
According to the WEF’s “2015-2016 Global Competitiveness Report,” Singapore has the most public trust in politicians and the least amount of government regulation, whereas Ireland is placed #18 for public trust in politics and #13 for the amount of regulation.
LABOR FORCE
Singapore’s workforce was ranked first in the world by BERI’s “Labour Force Evaluation Measure” for a staggering 31 years in a row, whereas the Irish labour force was only placed seventh best in 2010 data.
In a poll done by business school INSEAD last year, Singapore’s highly skilled workforce was ranked as the sixth best in the world.
In terms of the strongest labour/employee relations, the World Economic Forum’s “2015-2016 Global Competitiveness Report” rated Singapore third and Ireland fifteenth.
Singapore is the third-lowest risk location in the world for hiring, keeping, and moving personnel, whereas Dublin was ranked #20 in Aon Consulting’s “2010 People Risk Index.”
LIVING ENVIRONMENT
Singapore is the top country in the world for the expat lifestyle, according to HSBC’s “2015 Expat Experience Report.”
Singapore is the most popular immigration destination in the world, according to Gallup’s “2010 Potential Net Migration Index.”
According to ECA International’s “2010 Location Ratings System,” Dublin (Ireland) is the tenth greatest city in the world for Asian expats to reside. Singapore is ranked as the best city in the world for Asians to live.
Singapore is ranked as having the highest quality of life in Asia according to Mercer Human Resource Consulting’s “2010 Quality of Living Survey.”
SINGAPORE VS. IRELAND: A GLIMPSE OF THE COUNTRY RANKINGS
Year
Category
Singapore’s Rank
Ireland’s Rank
Source
2016
Ease of Doing Business
1
17
World Bank, 2016 Ease of Doing Business Report
2015-2016
World’s Most Competitive Economy
2
24
World Economic Forum, Global Competitiveness Report
2015
World’s Freest Economy
2
9
Heritage Foundation’s Index of Economic Freedom
2015
World’s Most Competitive Economy
3
15
IMD, World Competitiveness Yearbook
2016
Ease of Paying Taxes
5
6
PWC, IFC, World Bank’s 2016 Paying Taxes Survey
2015
Country with Least Corruption Perception
8
18
Transparency International’s Corruption Perceptions Index
2015-2016
World’s Best IP Protection
4
10
World Economic Forum, Global Competitiveness Report
2014
Country Most Open to Trade
1
26
World Economic Forum, Global Enabling Trade Report
2010
World’s Best Country for Business
5
6
Forbes’ Best Countries for Business Index
2010
Most Efficient Bureaucracy in Asia
1
–
Political and Economic Risk Consultancy Survey
2010
World’s Best Laborforce
1
7
BERI’s Labour Force Evaluation Measure
2010
World’s Lowest Risk City for Employing, and Relocating Employees
