Thanks to technology and globalization, the world is rapidly shrinking.
And for the same reasons, you now have access to new markets, new business opportunities, and new investment options that just 50 years ago, didn’t exist.
This is where the story of Singapore, the Lion City, begins. Singapore exemplifies how visionary leadership and pro-business policies can create explosive and consistent economic growth.
So, how did this sleepy port at the southern tip of Asia transform itself into an ultra-safe city-state worthy of global recognition and economic prowess (and the incorporation of Unbound Fund)?
The Rise of Singapore
When you think about Singapore today, images of towering skyscrapers, busy city streets, high-stakes Asia business meetings, and the iconic Marina Bay Sands probably come to mind.
But Singapore didn’t always look like this. Just 50 years ago, Singapore was an industrious fishing village. Separated from Malaysia and left with few natural resources, Singapore’s future looked uncertain in 1965.
Enter Lee Kuan Yew, the country’s first prime minister and the mastermind behind its transformation. Serving at the country’s helm from 1959 to 1990, Yew is credited with the tremendous development in Singapore GDP – from US$974 million in 1965 to US$501 billion in 2023, a generous 51,337% increase.
In a shocking turn of events, Singapore’s nominal per capita GDP now more than doubles that of the European Union. The state of the Singapore economy is strong.
Lee Kuan Yew had a vision to turn a main island city at the southern tip of Asia into a thriving metropolis with a strong currency – the Singapore dollar. Facing land constraints, the republic started with an ambitious land reclamation project, expanding the city by establishing more land in the sea.
Today, land reclamation alone has increased Singapore’s physical area by more than 20%, a testament to Yew’s approach to natural limitations. As the city has rapidly developed and housed a growing population, this expansion has been a critical investment.
Singapore’s Economic Development
Under Lee Kuan Yew’s leadership, the People’s Action Party (PAP) focused on economic development like a laser beam. They knew that without many natural resources, Singapore had to become a hub for trade, finance, and professional services.
Yew’s ruling party implemented policies that attracted foreign investment and encouraged multinational corporations to set up shop. For example, Jurong Island was created through the combination of several small islands. Attracting foreign investment from fossil fuels giants like Shell and ExxonMobil and fueling (literally) the local economy, it’s now become a regional petrochemical hub.
Yew knew, however, that Singapore could not grow without an injection of particular skills and expertise that the local population could not provide alone. So, the government increased immigration to the island city and welcomed hundreds of thousands of Chinese foreign workers to supplement the local workforce.
Today, more than half of Singapore’s workforce comprises foreign workers and expatriates, who contribute significantly to its local economy and GDP.
This influx allowed Singapore quick ascension and transformation into one of the world’s most prosperous nations within a few decades. Even today, the Singapore government maintains a delicate balance between economic growth and social development, ensuring that the public and private industries’ benefits trickle down to the population.
But what’s made Singapore so successful in my eyes is its aggressively pro-business public policy.
Reason #1 – A Pro-Business Government Mentality
One of the secrets to Singapore’s success is its alignment of public policy with the needs of its private industry and local population. Lee Kuan Yew and subsequent leaders understood that for the country to thrive, they needed to create an environment where businesses could flourish.
First, Singapore revolutionized their now-top-ranked education system. At its core, the meritocratic system teaches that if you work hard, you will succeed. And, the local economy will boom as a result. In fact, the current Singapore prime minister Lee Hsien Loong is a Cambridge-educated mathematician.
Second, Singapore offers a competitive tax environment, with low corporate tax rates and countless incentives for both startups and multinational companies. Singapore has no capital gains tax and no tax on foreign-sourced income.
Ensuring that high-quality amenities match the high cost of living in Singapore, the government also heavily invests tax revenues in infrastructure and social services.
Third, the prime minister and his cabinet work closely with local and international businesses to make sure their policies remain relevant, effective, and helpful. They cooperate to build trust between the government and private sector, which, having done business in several continents, I can say is lacking in most other countries.
This carefully-crafted business environment has ranked Singapore second in the world for ease of business.
Reason #2 – Singapore’s Crypto-Friendly Stance
In recent years, Singapore has positioned itself as a crypto-friendly nation, embracing blockchain technology and digital currencies. Because of favourable tax incentives, a friendly business environment, and a government supportive of the industry, multiple crypto and Bitcoin companies now call Singapore home.
The Monetary Authority of Singapore (MAS) has established a clear, straightforward framework for crypto businesses to operate, attracting tech entrepreneurs from around the world. In fact, all crypto or Bitcoin capital gains are exempt from personal and corporate income tax.
Evidently, Singapore’s approach contrasts with the skepticism seen in other parts of the world – namely, Europe. By providing clarity and support, the republic government is tapping into a growing industry that many (including me!) believe is the future of finance.
This forward-thinking approach aligns with everything else Singapore is doing to embrace the trend of innovation and technology.
Reason #3 – Strict Laws But High Rewards
Ask a street passerby their opinion of Singapore, and they’ll likely respond with a variation of “What is Singapore?” and “Isn’t Singapore that country in Southeast Asia with the strict rule of law?”
Singapore is known for its strict laws. While that fact might raise some eyebrows of the freedom-seeking entrepreneurs and investors who read this piece, it’s part of what makes the city-state so attractive.
Let me explain. The clear, structured legal framework in Singapore ensures stability, safety, and predictability – crucial success factors for businesses and individuals making long-term plans.
Lee Kuan Yew believed that order was essential for Singapore’s success. With low crime rates, a highly efficient government apparatus, top-ranked passport, and the safest city in the world, Singapore’s approach clearly paid off.
The judiciary, including the Supreme Court and the Chief Justice, maintains the rule of law, which makes Singapore a predictable environment for foreign investors.
Yes, the cost of living is high, but so is the quality of life. Exceptional services, from world-class healthcare to top-ranked education, make it worth every Singapore dollar – Singapore’s national currency.
Reason #4 – Education and Innovation as Pillars
Lee Kuan Yew believes strongly in the ancient proverb, “The wealth of a nation lies in its people.” So, from 1965 until today, Singapore has made education a cornerstone of their development strategy and national ethos.
In 2024, the education system in Singapore ranks among the best in the world, instilling in its population a culture of excellence from a young age. Why?
Well, Singapore aims to transform into the world’s first “Smart Nation.” From AI to climate change to cryptocurrency to biotech, Singapore is investing in industries of the future, ensuring that it stays ahead of each global trend.
Singapore’s commitment to education and innovation is not just about economic gains. Supported by the Singapore parliamentary majority and opposition parties, their values are about preparing Singaporeans for the monumental culture shifts and challenges of the future. And, with a population median age of about 42 years, Singapore has a dynamic and energetic society ready to face them.
Right when you arrive at Singapore’s international airport, you’re greeted with some of the most awesome sights you’ll ever witness in a country:
- Singapore is the fourth largest financial center in the world (200+ banks and 64 of Asia’s top 100 companies are headquartered here)
- Tuas Mega Port will be the world’s largest fully-automated terminal in 2040
- 40% of land is green space
These developments are testaments to the Smart Nation government initiatives coexisting with pre-existing cultural sites.
Reason #5 – The Melting Pot of Ethnic Groups
74.3% Chinese, 13.5% Malay, 9% Indian, 3.2% other. This is how the Singapore population breaks down demographically.
With four official languages (English, Mandarin, Malay, and Tamil), Singapore is a melting pot of several cultures, a community where many ethnic groups coexist harmoniously. These differences aren’t just tolerated but celebrated.
Even through public policy, the Singapore government promotes social harmony and multiculturalism, ensuring that every group has a voice. The national anthem “Majulah Singapura” (Onward Singapore) furthers this unity.
This melting pot of cultures also makes Singapore a culinary paradise. Just walk down Orchard Road and smell all the different cuisines emanating from the skyscrapers and street markets.
Reason #6 – Highly Efficient Health System
Singapore welcomes 500,000 visitors a year for medical tourism. Even foreign leaders like Zimbabwe’s former president Robert Mugabe choose to visit the main island city of Singapore for their medical treatments versus closer destinations in the EU like Germany or France or in Asia like China or neighboring Malaysia.
Life expectancy on the island city-state of Singapore is 83.9 years, whereas in the United States, it’s just 78.5 years. This data is testament to Singapore’s ranking as the world’s top destination for medical efficiency.
Not just is the quality of care excellent. But the cost of healthcare in Singapore is substantially lower than in other, less efficient states like Australia, New Zealand, or the United States.
Reason #7 – Military Strength and Regional Influence
The parliamentary republic of Singapore also boasts a highly capable military, despite its size and position in South Asia.
The Singapore Armed Forces (SAF) play a role in protecting national security, regional stability, and Singaporeans abroad. Mandatory national service ensures that military personnel and the armed forces are invested in the country’s defense and success.
In terms of foreign affairs, Singapore maintains strong relationships with neighboring countries like Malaysia and Indonesia, as well as global powers like the United States and China.
You’ll notice that the latter are not particularly friendly with one another. So, Singapore attempts to maintain diplomacy amid an increasingly hostile environment in the South China Sea.
This strategic diplomacy furthers Singapore’s influence beyond its borders, allowing it to punch above its weight on the international stage.
Other Nations Poised for Similar Growth
Singaporeans believe their country is an example for many more to come. I agree.
From just an island off the coast of Malaysia to a global economy and Asia powerhouse, Singapore offers lots of valuable lessons for other nations, not just in Southeast Asia but other parts of the world as well.
By duplicating many of their policies, special economic zones and countries like the United Arab Emirates and Indonesia are showing promising signs. Singapore showed that you can attract foreign investment and focus on economic development while also prioritizing your people and keeping taxes low.
Singapore joined global giants in Asia, such as the Japanese, in the EU, and in North America by breaking boundaries and offering services and incentives no other government dared to offer. Despite their land constraints and their small population, more than half of Singaporeans earn $50,000 or more per year.
In Europe, nations like Estonia are embracing digital transformation and pro-business policies. In Africa, countries like Rwanda are making strides in economic growth and technological adoption. All with Lee Kuan Yew’s successful policies in tow, leadership at the forefront, and consistent economic growth as the goal.
Singapore’s model for education, public services, employment, industry, and resources despite land constraints will serve civilizations – and the world – for centuries to come.
The Strategic Advantage of Second Citizenship
So, what does all this have to do with second citizenship?
Well, in a world where geopolitical and financial risk are becoming second nature, a second passport up your sleeve is an increasingly important asset to have. Dual citizenship grants you access to new markets; more investment, education, and employment opportunities; immigration options; increased financial security; and even a backup plan in case things go downhill in your native country.
Countries like Singapore offer attractive options for second citizenship and major return on investment. And, we’ve evaluated a few of those opportunities in El Salvador, Portugal, and Argentina.
However, to maintain the value of their citizenship and community, Singapore has chosen to make naturalization very rare. Plus, Singapore does not allow dual citizenship. So, if you were to naturalize as a citizen of Singapore, you’d have to renounce your original citizenship(s).
But, one can invest in residency in the city of Singapore via a few different channels. The Global Investor Program (GIP) offers immediate permanent residency and a two-year path to citizenship for those who invest at least US$7.5 million in a Singapore-based company or investment fund.
More relevant to the average reader of this piece, the Singapore Entrepass Program allows investors to either invest an unidentified amount of money in a local business (typically more than a few hundred thousand dollars) or receive US$100,000 in new business investment from a government-recognized venture capital firm or angel investor.
Or, every year, some 180,000 highly-qualified investors hire themselves in a local business through the Singapore Employment Pass visa and are granted residency in the country.
So, while Singapore does make investment migration rather rare in the country, the Lion City still allows tourism and business to be done in its small island city through temporary tourism visas.
Singapore’s journey from a small island city with land constraints and limited natural resources to a global powerhouse is nothing short of extraordinary. Politicians and leaders around the world have taken note of Lee Kuan Yew’s leadership style, government policy, and approach to the economy so as to duplicate its positive examples in their locales.
With the right policies and mindset, even the smallest nations can achieve great heights and account for much of a region’s growth.
