foreign investment

Singapore has based its economic development on a proactive strategy to attract FDI by
taking advantage of its commercial opening. Since 2003, when the World Bank began
publishing its classifications, Singapore has occupied the top spot for its facilities to do
business. In 2018, he moved to second place (surpassed by New Zealand). Loans to foreign
investors, its simple regulatory system, tax incentives, a high-quality industrial real estate
park, political stability and the absence of corruption make Singapore a very attractive
destination for investment.
According to the UNCTAD World Investment Report, Singapore was the eighth largest
recipient of FDI in 2017. Flows to Singapore increased from USD 50,000 million in 2016
to USD 58,000 million in 2017 (+ 16%, although they remained lower than record figure of
USD 68,000 million in 2014), mainly thanks to a significant increase in the value of cross-
border mergers and acquisitions.

The strengths: Singapore is the country in the world where it is easier to do business,
according to the report of the World Bank Doing Business 2016. Its telecommunications,
financial and transport infrastructures are excellent and its strategic location at the
confluence of maritime routes and close to Large markets are an advantage. The country
offers tax reductions and flexible loan terms among other investment incentives.

Weaknesses: The lack of transparency in administrative incentives and the non-

internationalization of the Singaporean dollar are obstacles to investment. Although
Singapore is a free port, tariff protection is not offered for industrial companies. Singapore
applies high taxes on alcohol, tobacco products, motor vehicles and gasoline. The
preponderant role of parastatals can hinder investment in some sectors.

Measures set by the government: Singapore is a country open to foreign investment and
offers tax advantages that companies can benefit from after joining the Economic
Development Council. However, the country continues to maintain monopolies in certain
sectors (financial services, professional services, media, telecommunications). Companies
linked to the government play a dominant role in the domestic economy and, to a large
extent, in investment.

Why is foreign investment important for Colombia?

The process of economic globalization in which all States are immersed emphasizes the
importance of actively integrating the economies of developing countries into the
international economy. In turn, foreign direct investment (FDI), day by day is consolidated
as
the most dynamic source of resources to finance the economic growth of these countries.
This is
owes to the fact that foreign investment can contribute to the development of a country by
complementing
domestic investment, increase the tax base, strengthen trade ties and capacity
exporter, generate technology transfers, disseminate skills and knowledge
specialized and become the engine for job creation.

Why is it important to increase investment flows between Colombia and Singapore?

As mentioned above, Singapore is one of the main recipients and exporters of

capitals within the Southeast Asian subregion6
, leader in development and technology.
Additionally, the Asian Pacific is one of the most dynamic poles of the world economy,
core of development and economic growth, epicenter of trade and investment, leader in
advances
technological and important scenario of integration and economic cooperation.

(Portal Santander, 2018), Obtenido de:

https://es.portal.santandertrade.com/establecerse-extranjero/singapur/invertir?

(Leyes senado, 2018), Obtenido de:

http://leyes.senado.gov.co/proyectos/images/documentos/Textos%20Radicados/proyectos%20de%20ley/2017
%20-%202018/PL%20150-17%20Acuerdo%20Singapur.pdf