Singapore as a restructuring centre for businesses

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Singapore as a restructuring centre for businesses

The rise of Singapore

Following the pandemic, Singapore has emerged as a leading centre for international business restructuring, alongside many other areas in Asia.

The country has seen recent reforms to its restructuring laws, providing the availability of moratoria reliefs and the ability to obtain rescue financing.

With increasing amounts of Asian businesses becoming international, there has been a greater appreciation for a solid restructuring process in which the country can offer.

What is restructuring?

Restructuring is the action taken by an organisation to modify the financial and operational elements of the business. It usually takes place when the business is under severe financial strain.

What is restructuring

This includes modifying debts, operations or the entire structure of the company to help improve the business and prevent financial damage.

So, why is Singapore an attractive destination for corporate businesses? We’ve listed the following reasons below:

Infrastructure

Singapore is known for its world-class infrastructure, from the airport and telecommunications network to the business district.  This, in turn, makes it easier for companies to access markets and perform business, encouraging the growth of organisations and the economy.

Serviced apartments in Singapore can aid in your company’s restructuring endeavours, assisting with both short and long-term solutions to rapidly growing costs.

Robust legal system

Singapore has a well-developed legal system that is based on English common law. Its courts are known for being efficient and impartial, and the laws overall are business-friendly and transparent.

If you’re looking to restructure debt obligations, Singapore law is an attractive option amongst many businesses. The country aims to be a centre for debt restructuring, and companies outside of Asia can take advantage.

restructuring centre for businesses

The country’s global reputation has greatly benefitted from the globally recognised courts, but the Singapore Arbitration Centre is also consistently ranked the most preferred arbitral institution in the Asia Pacific and is jointly ranked with London to be the most popular arbitral seat in the world.

Additionally, the country’s economy continues to be resilient to global factors, showing strength throughout the pandemic. It is ranked amongst the world’s most competitive economies and provides the world’s most business-friendly regulatory environments.

Financial hub

Singapore has a well-established financial industry, offering various financing options including venture capital, private equity and debt financing, making it even easier to raise funds for restructuring.

The country has favourable tax systems when compared to the UK. Singapore ranks second in the world on ease of doing business, whilst the UK comes in at seventh. Determining factors for this ranking include corporate tax rates, set-up costs, energy prices and transparency.

Despite the UK owning the fifth largest economy in the world, Singapore is Asia’s most competitive business country and like the UK, is powered by a thriving financial services sector.