Doing Business - Singapore vs Canada
Several factors need to be taken into consideration when a company decides to expand its market or establish itself on a global level. It is important to assess which foreign market to enter, the cost of setting up business operations in a given country, the risks involved, and the ease with which business objectives can be accomplished in the chosen destination. Each business jurisdiction has differing levels of risks, legal formalities, opportunities, advantages, and disadvantages.
In this article, we discuss the differences in key factors of doing business in Singapore and Canada.
- Singapore is ranked 2nd place by the World Bank as the easiest place to do business in the world in its ‘2018 Ease of Doing Business Report‘ and Canada was ranked #22.
Here are some of the key factors in which each country were ranked:
|(Rankings based out of 190 countries)||Singapore||Canada|
|Starting a business||3||3|
|Protecting minority investors||7||11|
|Trading across borders||45||50|
- On a whole, on Forbes’ Best Countries for Business 2018 ranking, Canada came in 6th while Singapore came in 8th. In the same report, Forbes’ ranked Singapore at 8th for tax burden and Canada at 19th.
- Singapore's corporate tax is at a flat rate of 17% on chargeable income. Canada's corporate tax rate is at 15% after general tax reduction for most corporations.
- Singapore was placed in the 6th for property protection by Forbes in its 2018 ‘Best Countries for Business‘ Index and Canada was ranked 11th.
- In the World Economic Forum’s ‘2018 Global Competitiveness Report‘ Canada was ranked 18th for Intellectual Property Protection and Singapore was ranked 3rd.
Openness to Trade
- In the World Economic Forum's ‘Global Enabling Trade Report 2016', Singapore is ranked as the country most open to trade, placing at the 1st position. Canada is also relatively open to trade, with a position of 24th on the report.
- Both Singapore and Canada are viewed as clean countries with a low degree of corruption by the Transparency International in its Corruptions Perceptions Index 2018 report. Singapore places at 3rd position and Canada places at 9th.
- The labour market in Singapore and Canada are equally competitive, and here are some of the key indices being measured in The Global Competitiveness Report 2018.
|(Ranking based out of 140 countries)||Singapore||Canada|
|Digital skills among population||6||18|
|Cooperation in labour-employer relations||2||17|
|Ease of hiring foreign labour||97||81|
|Pay and productivity||3||8|
|Labour tax rate||75||50|
At-a-glance Country Rankings: Singapore and Canada
|Year||Category||Singapore's rank||Canada's rank||Source|
|2018||Ease of doing business||2||22||World Bank, Ease of Doing Business Report|
|2018||World's most competitive economy||2||12||World Economic Forum, Global Competitiveness Report|
|2016||Country most open to trade||1||24||World Economic Forum, Global Enabling Trade Report|
|2018||Country with least corruption perception||3||9||Transparency International's Corruption Perceptions Index|
|2019||Cities with the best quality of living||25|| 3
|Mercer's Quality of Living Report|