While other economies are rejecting foreign talent, Singapore is taking steps to draw the world’s brightest minds to fuel its ambition to develop into the subsequent Silicon Valley.
The city-state’s authorities announced a series of initiatives on Friday geared toward bolstering the region’s startup scene because the economy moves right into a more progressive and higher-value space.
Singapore’s Ministry of Trade and Industry (MTI) is about to vary regulations to draw foreign talent, facilitate financing and strengthen the state identity of the local startup scene.
Koh Poh Koon, Minister of State for Trade and Industry, told Parliament: “Given Singapore’s small size, we must remain open to promising global talent.
“The growing global protectionist sentiment that emerged in 2016 gives us an opportunity to position Singapore as an attractive startup location for talent. Foreign entrepreneurs have the potential to add dynamism to our startup scene.”
The commitment comes as economists have recently stressed that the country must remain open to foreign talent if it desires to develop into a hub for innovation.
Calling on Singapore to construct “bridges” quite than “walls”, Maybank economist Kim Eng Chua Hak Bin said in a January note that such an approach would boost the economy, particularly the high-tech sector.
He noted that for each recent job on this sector, there are 4.3 recent jobs, which is thrice greater than within the manufacturing sector.
On Friday, Dr Koh said that as a start, eligibility requirements for the EntrePass programme, which is geared toward foreign entrepreneurs seeking to start a business in Singapore, could be relaxed in some areas.
Currently, to qualify for EntrePass, applicants must register a limited liability company and pay not less than S$50,000 in paid-up capital. They must also hold not less than 30 per cent of the corporate and meet certainly one of 4 innovation criteria.
The requirement for applicants to contribute share capital of not less than SGD 50,000 in the midst of their business activities will probably be abolished.
Entrepreneurs will even have more time to develop their businesses. The validity of every EntrePass after the initial renewal will probably be prolonged from one 12 months to 2 years.
But at the identical time, the city-state will probably be more selective. The evaluation criteria for startup founders who wish to explore the scene here will probably be expanded to be certain that candidates coming here have a solid track record.
Singapore can also be strengthening funding schemes for startups in deep-tech sectors to catalyze private-sector investment. These sectors include medical technology, clean technology and advanced manufacturing.
First, the federal government will double the investment limit for co-investment in deep tech startups from S$2 million to S$4 million, enabling diversified financial support tailored to different needs of startups.
Secondly, it can increase the share of co-investment financing for supported investments from 50 to 70 per cent.
The city-state will even bring together startup support programs under the common name “Startup SG”; there are currently five programs operating under it.
Dr. Koh said it can be easier for aspiring entrepreneurs to seek out programs that meet their needs.
“These enhancements are particularly timely given the growing international interest in Singapore as a global startup destination,” he said.
Source: Asia One
