Singapore: the Asian Silicon Valley for French entrepreneurs

Singapore is a very small country seen as the new Eldorado for French startups. Thanks to its 1st place in the international ranking for business facility, 159 French entrepreneurs have already set up their own company there.

Why Singapore rather than the traditional Californian Silicon Valley?

This country offers companies many advantages, and the first one is the atmosphere in favor of doing business. Singapore embodies a country where everything is possible much more than in other Asian countries and it is the 3rd country most innovative in the world. To help the business environment, employment tends to be very flexible. It is relatively easy to hire Singaporean people, as they are qualified and multicultural ones. Regarding their wages, they are much lower paid than in California or in France for example. However, the government tries to limit the number of expatriates and encourage foreign companies to employ Singaporean people. The additional problem to this situation is that they are not always serious at work due to this flexibility and the low rate of unemployment (2.2% in 2013). It is so easy for them to find a job that they do not fear unemployment, and are less motivated.

With the regard to the business environment, the system is well organized and everything can be arranged by phone or online, which is quicker and more efficient. The high quality of the infrastructures, the social balance and the stability of taxation with a low rate for companies (18% compared to 33% in France) are attractive features for entrepreneurs to create a business. Although it is an interesting country to set up a business, companies always have to consider the fact that The Singaporean government requires foreign companies to already have the funds necessary to their business. It is also important to point out the price of the real estate are constantly fluctuating and that companies are often forced to change their workplace rapidly. French entrepreneurs also have to be conscious that French quality is not always successful there due to the wide range of Asian products at lower prices. Singaporeans will prefer to pay less and buy more rather than to pay more in order to have products of better quality, but that is not applicable to any type of product or service.

Gabriel de Balasy and Philippe Hoyez had a traditional restaurant called “L’Angelus” in Paris that they decided to relocate to Singapore. The key of their success is their “French touch” with French products “made in France” whatever the price is. That is explained by the fact that both entrepreneurs were ambitious and innovative and their business perfectly suited  local demand.

Singapore is a dynamic country that offers the chance to everyone to set up a business. However some rules have to be respected in order to succeed and that is why audacious entrepreneurs, who are available to adapt quickly, can have the opportunity to enter the Asian market thanks to this country.

Meggy C.