August 25, 2025
SINGAPORE – While Singapore remains one of the least complex places to do business in the Asia-Pacific (Apac) region, it ranks behind some regional peers because of its strict anti-money laundering rules and strong labour protection.
Still, its regulatory stability and diplomatic neutrality are the main draw for firms seeking certainty in a volatile business environment, said global professional services firm TMF Group, which compiles the annual Global Business Complexity Index based on factors like compliance requirements and human resources practices.
In its latest index, Singapore is placed 48th out of 79 jurisdictions. A higher ranking on the index indicates a more complex business environment.
Within Apac, the Republic is ranked as the sixth least complex destination for business, behind New Zealand (77th), Hong Kong (76th), Thailand (56th), Vietnam (54th) and Taiwan (51st).
But its business environment is seen as less complex than that of Australia (47th), Japan (43rd), Malaysia (25th), South Korea (23rd), India (18th), Indonesia (14th) and China (10th).
In a recent interview with The Straits Times, TMF chief executive Mark Weil said that while Singapore’s compliance frameworks add layers of bureaucracy, they are designed to uphold transparency and financial integrity.
“Regulatory bodies like the Monetary Authority of Singapore are known for their efficiency but also for maintaining high standards, especially in finance and data governance,” said Mr Weil.
On the human resources front, Singapore has strict labour protections, including mandatory contributions to the Central Provident Fund and foreign labour quotas.
Mr Weil said sector-specific restrictions on hiring foreigners and rules around employment passes can delay the onboarding processes of businesses.
He added that the introduction of flexible work arrangements adds another layer of complexity.
As of Dec 1, 2024, employers in Singapore must fairly consider formal requests from their staff for flexible work arrangements – in terms of work location, hours and workload – under new tripartite guidelines.
While a formalised framework provides clarity, it may create additional administration obligations for businesses, Mr Weil said.
“In other jurisdictions, such policies remain largely at the employer’s discretion.”
But Singapore will continue to attract businesses which value its alignment with global fiscal and regulatory standards. Navigating the Republic is still relatively straightforward for businesses, especially for multinational enterprises that can absorb the cost of regulatory compliance, Mr Weil said.
“What poses a greater challenge in today’s global landscape is uncertainty,” he added. “As companies reassess legal certainty, regulatory coherence and geopolitical risk, Singapore has the potential to offer all three in a stable environment.”
The country is also diplomatically neutral, with strong ties to Western and Asia-Pacific countries, and Gulf states. “This foreign policy provides operational certainty for businesses with global footprints,” Mr Weil said.
Globally, the Cayman Islands is ranked the least complex destination for businesses, while Greece is ranked the most complex for the second straight year, according to the report by Amsterdam-headquartered TMF.