You Should Decide on an Industry From the List of Investment 2019 in Singapore Before Anything Else
Singapore’s robust economy draws in thousands of professionals from all over the world every year. This does not happen for no reason because there are concrete reasons why Singapore attracts them. Singapore already has a reputation for having an advanced economy, so you can expect that the list of investment 2019 found here is accurate and realistic. Aside from that, Singapore has an open economy that ranks second in the world.
Industry Clusters
It is important to know that the list of investment 2019 in Singapore has main industry clusters that are always present. The electronics, biomedical sciences, chemicals, transport engineering, and logistics are main industries that investors should consider in Singapore. Financial services have had a stable growth because of the pro-business environment in Singapore and political stability. There are over 200 banks and it is a regional hub for a lot of global financial service firms, the marketplace controls the regional, domestic, and global markets.
There is aerospace engineering, medical technology, healthcare, clean energy, and content creation.
Crowdfunding
Crowdfunding is raising money by the public that is not part of the stock exchange. The idea of crowdfunding started during the 18th century, and it still use today. The crowdfunding of Singapore can offer to investors and startups. The four kinds of crowdfunding in Singapore are donation, reward, debt, and equity.
With donation crowdfunding, those who give money do not expect to get anything back even what they gave is for a business. It is mainly for charities and arts.
The reward crowdfunding is similar to a donation where the invested money is for a non-monetary reward. They get a mug or T-shirt as the reward.
Debt crowdfunding is based on lending and it is a transaction made between moneylenders or investors and companies that borrow their money. The company will pay back the principal and interest at a certain date.
Equity crowdfunding is when investors offer capital to get a stake from companies. This is like investing in the stock market except that these companies are private companies instead of listed ones. The gain comes from dividends and capital when there is an increase in shared value.
EDBI Investment
The EDBI is another investment program in Singapore, and it is related to a private investment fund that helps businesses innovate sectors like emerging technology, information and communication technology, healthcare, consumer industries, advanced manufacturing, and others. The Singapore venture capital investor program, even foreign companies, are able to utilize this program. Therefore, if you have a strong belief in your SME and it has a lot of potential with the right ideas for business, you can ask the EDBI for investment.
For a company to be able to make an EDBI investment, the management team should be excellent, and by having the proper ideas and skillset that is necessary to run the business. There should be uniqueness in the products and services, and you must show they can help in solving consumer problems. In addition to that, the company needs to have a business model and schedule that should support its potential and goals. An innovative company needs to have clear techniques so it stays competitive. Aside from that, the business should know which companies are competing with them. The company should have the capacity to help in fostering the economic sector to strengthen bonds in Singapore.
Singapore Saving Bonds (SSB)
Sovereign or government bonds are a kind of investment that normally consider safe because the government backs them up. When there is an investor who buys bond security, they are indirectly loaning money to the government and the returns come from the interest they are receiving for lending it.
The government of Singapore launched the savings bond in late 2015, and it was meant to be a low-cost investment that individuals can avail of. The government supports this and there is no risk for capital loss. The investment is good for up to 10 years and you will receive an increase in interest over time because if you save it for a long time, then you will get higher interest rates.
Government Treasury Bills
Singapore is a good replacement for a risk-free rate which can be the return rate of the government. Triple A rated economies pay the treasury bills, and with the shortest term type of government security available. it is a close and risk-free rate where the rate for latest issuance is 1.41% every year, that means your money will grow by 1.41% every year without risking any investment. The investors who want to have a short-term investment only can use treasury bills.
Stocks
Stocks are most likely ideal for those who want a balanced risk and returns. It is easy to purchase stocks in Singapore, walk inside a brokerage, and open an account to check out available stocks. See this in the Singapore exchange and you can purchase the stocks you want. The price listed for 1 share and normally Singapore shares are normally sold in lots of 100. Therefore, you need to purchase a certain stock priced at $1.50 per share, and you only need $5,000 to buy more than 30 lots.
Stocks-picking challenges beginners, and maybe the best way to begin is to do it per sector that you want or check out some blue-chip stocks that give you dividends. In case you think that stocks are too much for you to handle, there is always the Exchange-traded fund (ETF) which monitors the Strait Times Index. You will have diversification since you are purchasing stocks in different sectors. If you are adventurous, you can also buy the stocks and indices that other countries have.
With this list of investment 2019 that SMEs should know about in Singapore, they will know where and what to do with their money.
