Chinese businesses have had to face political tensions with the west, US sanctions that hit their revenues, and severe disruptions from mainland Covid lockdowns. But many have found a simple way to cope with all of this: set up a new home in Singapore.As a city state of 5.5mn people in the heart of south-east Asia, with a majority ethnic Chinese population, Singapore has long been a popular destination for mainland investment. However, the flows of money, talent and expertise from China have accelerated since 2018, as geopolitics, decoupling supply chains and the pandemic forced a need for diversification.
While its own market is small, neutral Singapore is regarded as a key hub from which to deploy capital into the rest of south-east Asia, home to 675mn people.
This has led about 500 Chinese companies to set up or redomicile in the city in the last calendar year, according to estimates by business groups. The influx has included family office funds, private equity firms and wealth managers. They have all brought expertise and talent from the world’s second-largest economy, experts note, and an eagerness to invest in Singapore’s technology and start-up scene.