Singapore: Asia’s #1 Startup Hub

Launching a small business is a big challenge, and where you start can shape its success. Location affects everything from skilled talent and reliable internet to affordability, business climate, and even the historical success rate of small businesses.

As an industry leader in startup accounting, Intuit QuickBooks set out to uncover which countries in the Asia-Pacific region offer the most favorable conditions for new businesses. The Asia Startup Index Study analyzed 17 indicators spanning infrastructure, access to capital, costs, business environment, and talent—all of which contribute to a healthy startup ecosystem. 

This article highlights the findings of the study, with a focus on Singapore, which ranked #1 overall. We’ll take a closer look at how Singapore performed across these areas and what that means for entrepreneurs considering starting a business in this region.

• Singapore: Key Insights
• The Best Countries in Asia-Pacific to Start a Business
• Singapore’s Rank for Startup Factors
• Singapore’s Internet Speed & Connectivity
• Singapore’s Talent Pool & Skills
• Singapore’s Business Landscape
• Singapore’s Cost of Living for Startups
• Singapore’s Happiness & Work-Life Balance
• Why Singapore is a Startup Hub
• What the Experts Say
• Methodology

Singapore: Key Insights

Singapore ranked #1 in the Asia Startup Index, standing out for its internet speed, financial advantages, and depth of talent. For founders, the city-state offers a rare mix of digital infrastructure, ease of doing business, and investor confidence.

Key Findings:

• Singapore ranks 1st overall with a 71.99/100 score for business startup appeal.
• Fastest Internet Speeds (96.00/100, 1st place): Singapore leads with 393.2 Mbps, enabling a highly connected digital environment.
• Top Talent Pool (94.07/100, 1st place): Singapore ranks highly in AI readiness (84.3/100), workforce advanced education (85.5%), and average income (USD $4,443.3), demonstrating a highly skilled workforce.
• Strong Business Landscape (74.52/100, 2nd place): Singapore ranks in the top two for FDI (27.8% GDP), business density (11.3 new firms per 1,000 people) and ease of starting a business (1.5 days). And within the top ten for private credit (129.2%). Singapore has the second lowest cost to start a business at 0.4% of GNI, coupled with favorable corporate tax (17%), lending rates (5.3%), 2.4% inflation rates and 3.2% unemployment rate.
• Highest Cost of Living (97.20/100, last place): Singapore has the highest cost of living of the countries analysed, with the highest weekly rent cost (US $715) and the highest cost of living index score (85.3/100).
• High Quality of Life (95.80/100, 1st place): Happiness score of 6.5/10, which is well above the regional average of 5.4.

The Best Countries in Asia-Pacific to Start a Business

To identify the region’s most promising environments for entrepreneurs, Intuit QuickBooks ranked 24 countries across key business and lifestyle factors. Singapore claimed the #1 position, recognized for its strong digital infrastructure, highly skilled workforce and competitive business environment. 

Other leading countries include China, Hong Kong (SAR) and Thailand, each offering advantages for founders looking to establish or expand their hubs.

Within the Asia-Pacific startup ecosystem, Singapore reinforces its role as a standout hub in a region filled with rapidly growing markets. For entrepreneurs comparing markets across Asia, the results highlight where the conditions for starting and scaling a business are most favorable.

Singapore’s Rank for Startup Factors

To assess the strength of Singapore’s startup ecosystem, the Asia Startup Index looked at 17 key indicators that shape business environments. These were grouped into five categories that matter most to entrepreneurs:

1. Internet Speed: Fast and reliable internet connectivity makes a huge difference when starting a business, especially when you’re relying on remote collaboration. This study measured the average broadband speed (Mbps) across 24 countries in the Asia-Pacific region.  

2. Talent Pool: Three indicators were measured as part of this category:

• AI readiness: A country’s preparedness for AI adoption gives startups an edge by making advanced tools and technologies easier to access and integrate.
• Workforce Advanced Education (%): A highly educated workforce gives startups access to skilled talent—driving innovation, efficiency, and faster growth.
• Average monthly net salary (USD): Higher wages indicate stronger purchasing power and talent attractiveness.

3. Business Landscape: We measured a number of factors that reveal how smooth (or challenging) it is to run a company day-to-day. These factors included:

• FDI net inflows (% GDP): More foreign investment suggests an open, attractive economy.
• Business density (new firms per 1 000): More new firms signal a dynamic start‑up scene.
• Predicted 2026 GDP growth (%): Faster growth suggests expanding markets.
• Private credit (% GDP): Higher credit depth indicates a well‑developed banking sector.
• Time to start business (days): Fewer days mean less bureaucratic delay.
• Cost to start business (% GNI): Lower costs ease entry.
• Corporate tax rate (%): Lower taxes reduce ongoing liabilities.
• Prime lending rate (%): Lower interest rates improve access to finance.
• Inflation rate (%): Low inflation preserves purchasing power and reduces uncertainty.
• Unemployment rate (%): Lower unemployment implies a strong labour market.

4. Cost of Living: High costs shorten the runway for early-stage startup ventures, while affordable markets give founders more breathing room to experiment and scale. For this category, we considered the following:

• Weekly rent (USD): Lower rents reduce start‑up operating costs.
• Cost of living index: Lower living costs stretch founders’ runway and wages.

5. Quality of Life: A happier workforce is more engaged and productive, and founders thrive when they can balance personal wellbeing with professional success. 

Next, we’ll reveal how Singapore scored within these categories, and explain in greater detail how these metrics affect startup businesses.

Singapore’s Internet Speed and Connectivity: #1 in Asia

With an average internet speed of 393.2 Mbps, almost three times the regional average of 131 Mbps, Singapore leads the Asia-Pacific region, followed by Hong Kong (323.9 Mbps) and South Korea (279.7 Mbps).

Fast, reliable internet underpins every modern business, from cloud platforms and real-time collaboration to customer service. Singapore’s connectivity gives entrepreneurs a head start, enabling them to compete globally from day one.

Singapore’s Talent Pool and Skills: #1 in Asia

Singapore ranked #1 in the Asia-Pacific region with a total talent score of 94.07/100, reflecting strong performance across all three talent-related indicators: AI readiness, workforce education, and average income.

Key insights:

• AI readiness: 84.3/100 preparedness for AI adoption
• Workforce with advanced education: 85.5% of workers
• Average monthly income: USD $4,443, the highest in Asia (regional average: $1,056)

Together, these factors highlight Singapore’s highly skilled, adaptable, and well-compensated workforce—an essential foundation for startups seeking innovation and sustained growth. The aggregate talent score of 94.07/100 captures how these strengths combine to make Singapore the most competitive talent market in the region.

Here are the small business startup statistics we analyzed to get these results:

AI Readiness: #1 in Asia

AI readiness measures how well a country can adopt and benefit from AI, including policies, infrastructure, and workforce skills.

Singapore ranks #1 in the Asia-Pacific region with a score of 84.3/100, well above the regional average of 56.8/100, providing startups with easier access to AI tools, fewer adoption barriers, and an environment that supports innovation and growth.

Workforce with Advanced Education: #3 in Asia

A highly skilled workforce is a key ingredient for startup success. This metric measures the percentage of adults in the labour force with tertiary education, showing how well-equipped a country’s workforce is to support innovation, adopt new technologies, and drive business growth.

Singapore scores 85.5%, ranking #3 in Asia and well above the regional average of 73.0% and, not far behind the top spot held by Taiwan with a score of 88.3%.

Average Monthly Income: #1 in Asia

Average salaries are a key indicator of a country’s purchasing power and talent attractiveness. At $4,443 USD per month, Singapore’s workforce earns the highest in the Asia Startup Index Study, well above the regional average of $1,056.

While higher wages can increase operating costs, they also signal a strong, stable economy. For founders starting a business in Singapore, this creates two advantages: the ability to attract and retain top talent and access a consumer base with greater spending power.

Singapore’s Business Landscape: #2 in Asia

Singapore scores 74.52/100, ranking #2 in Asia, just behind Hong Kong (77.11).

Key insights:

• Time to start a business: 1.5 days (regional average: 20.7 days)
• Corporate tax rate: 17%, below the regional average of 22.3%
• FDI inflows: 27.8% of GDP (regional average: 4.92%)
• Business density: 11.3 new firms per 1,000 people (regional average: 3.57)

Supporting indicators further highlight Singapore’s advantages: private credit at 129.2% of GDP (well above the 88.6% regional average), low unemployment at 3.2%, and inflation under control at 2.4%. Low startup costs, affordable credit, and an active entrepreneurial culture allow founders to move fast, scale efficiently, and attract investment.

Next, we’ll provide more detail about these findings:

Time to Start a Business: 1.5 Days

The Singapore startup ecosystem makes it easy to get up and running in an average of 1.5 days, far ahead of the regional average of 20.7 days, giving entrepreneurs more time to focus on growth.

Corporate Tax Rate: 17%

Singapore’s competitive 17% corporate tax rate (below the regional average of 22.3%) helps startups plan, invest and grow confidently. 

Foreign Direct Investment (FDI) Inflows: 27.8% of GDP

Singapore attracts substantial international investment, providing startups with capital and opportunities to scale and innovate. Its FDI inflow of 27.8% of GDP is nearly seven times the regional average of 4.92% ranking 2nd in Asia, just behind Hong Kong (which takes the top spot at 28.8% of GDP).

Lending Rate: 5.3% 

A low lending rate of 5.3% makes borrowing more affordable for startups, helping businesses access capital to invest in growth and scale operations. This compares favorably to the regional average of 9.44%, giving founders an easier financial environment to support expansion.

Inflation Rate: 2.4%

Inflation is well-controlled at 2.4%, far below the regional average of 4.44%. Stable prices reduce uncertainty for business planning, helping startups manage costs and maintain predictable budgets.

Unemployment Rate: 3.2%

With unemployment at 3.2%, far below the regional average of 4.35%, Singapore has a highly active workforce. Low unemployment supports a strong talent pool for startups to hire from and reflects overall economic resilience.

Predicted 2026 GDP growth: 3%

While Singapore’s predicted GDP growth of 3% is below the regional average (3.66%), it reflects a mature, stable economy, ideal for founders seeking long-term predictability rather than short-term volatility.

Private Credit: 129.2% GDP

Private credit is strong at 129.2% of GDP, well above the regional average of 88.69%. This indicates a well-developed financial system, providing startups with easier access to loans, financing, and other banking services.

Cost to Start Business: 0.4% GNI

The low cost to start a business, just 0.4% of GNI, reduces barriers for entrepreneurs, allowing new ventures to formalize and launch quickly while conserving resources. This is significantly below the regional average, giving startups a head start in entering the market.

Singapore’s Cost of Living for Startups: #24 in Asia

To assess how affordable it is to set up a business in Singapore, we analyzed data on weekly rent and the Cost of Living index.

Key insights:

• Singapore’s startup ecosystem is the least affordable in Asia
• Average weekly rent is $715 USD (regional average: $145.75 USD)
• The highest Cost of Living index at 85.3 (versus the regional average of 36.93)

High costs can be a hurdle for starting a business in Singapore, particularly for housing and living expenses for teams. The trade-off is access to world-class infrastructure, reliable capital, and an efficient business environment. These advantages can help a business grow despite the higher price tag.

Here’s exactly what the data revealed:

Average Weekly Rent: $715 USD

Cost-efficient office space supports early-stage growth. Singapore’s average weekly rent is $715 USD, the highest in The Asia Startup Index Study. High weekly rent reflects premium business advantages, including infrastructure, talent, and networking opportunities, that support scaling startups.

Cost of Living Index: Highest in Asia

Singapore scored 85.3/100 on the cost of living index, the highest in Asia (regional average: 36.93/100).

The top cost of living score signals a developed economy with skilled talent, strong infrastructure, and abundant business opportunities. Startups that account for these expenses can plan hiring and growth strategies more effectively.

Singapore’s Quality of Life: #1 in Asia

• Singapore ranked #1 in Asia for quality of life with a score of 95.8/100.
• Singapore scored 6.5/10 for happiness index score, the highest of all the countries in the study and well above the regional average of 5.4/10.
• Closely followed by Taiwan (6.4/10).

A healthy work-life balance supports productivity, innovation, and long-term team retention. Singapore’s strong ranking suggests an environment where employees can thrive both professionally and personally—an important advantage in attracting top talent and sustaining growth.

Why Singapore is a Startup Hub

Singapore consistently ranks as Asia’s #1 startup hub thanks to its fast internet speeds and efficient business setup process. Add to this Singapore’s competitive tax regime and highly skilled workforce, and it’s easy to see why it takes the top spot. Entrepreneurs here benefit from a stable, pro-business environment that makes it easier to launch, grow, and attract investment. For founders, these conditions translate into fewer barriers and more opportunities to scale.

Curious about how to start a business in Singapore? Discover how Intuit QuickBooks can help new businesses in Asia with smart tools for accounting and compliance.

Intuit QuickBooks offers smart tools for accounting and compliance, plus practical resources to help you get started, like our step-by-step guide to starting a business in Singapore and a free-to-download business plan template to kick off your planning.

Want to see how Singapore compares with other regions? Explore our Asia Startup Index insights for Malaysia, the Philippines, and Hong Kong. 

What the Experts Say

Many factors can affect a country’s business startup worthiness. For additional insight, we asked Lily Tan, Managing Director of TnB Global Outsource Pte Ltd and QuickBooks ProAdvisor, for her thoughts.

“If you don’t change now, the world will change you. As we look ahead to Singapore’s 2026 economic outlook, entrepreneurs should view this as a pivotal time to adapt, embrace technology, and uncover new opportunities. Crisis doesn’t stop opportunity — it sharpens it. AI was born in disruption and thrives in uncertainty, and the businesses that lean into this shift will be the ones shaping the next wave of innovation. Even in challenging times, we can use smarter tools, stay agile, and keep building. Don’t wait for perfect conditions—every storm has the potential to spark a rainbow of creativity and progress.”

Methodology

The aim of this study was to help founders compare the ease and appeal of launching a business across 24 countries in the Asia-Pacific region. Rather than focusing on just one aspect (like tax rates or venture capital), Intuit QuickBooks pulled together a broad basket of 17 indicators. These cover:

• Infrastructure: How fast and reliable your internet connection is (average broadband speed).
• Capital access: How much foreign investment a country attracts and how deep its banking sector is (FDI inflows and private credit as a share of GDP).
• Costs: Rent, cost of living, net salaries, corporate tax and lending rates, and the cost of starting a company.
• Business environment: How long it takes to register a company, how easy the process is, and expected economic growth.
• Talent and fundamentals: Workforce with advanced education, unemployment and inflation rates, happiness scores, and a government AI‑readiness rating.

We chose these factors because a healthy start‑up ecosystem needs both affordable overheads and access to talent, capital, and stable economic conditions.

How we standardized data indicators for comparison

Each indicator (Mbps, dollars, percent of GDP, number of days) was measured differently. To put them on the same footing we turned every value into a percentile score. Think of a percentile as a “score out of 100” showing how a country ranks against its peers: the higher the percentile, the better. For indicators where bigger numbers are good (like faster internet or more FDI), higher values got higher percentiles. For indicators where smaller numbers are preferable (like lower rent or taxes), we flipped the values so that a smaller cost results in a higher percentile. This way, “better” always translates into a higher score.

Treating all metrics equally

Rather than arbitrarily deciding that, say, broadband speed is twice as important as inflation, we simply averaged the percentile scores. Each of the 17 indicators counts the same towards the final score. If data for a country were missing (for example, Taiwan’s FDI figure or a recent lending rate for Laos), we averaged only the available metrics. This avoids penalizing countries for gaps in international data, but it also means scores for those countries are based on fewer inputs and should be interpreted cautiously.

Where does the data come from?

Most numbers come from recognized international sources such as the World Bank, IMF, Oxford Insights, UN Happiness Report, the Speedtest Global Index, and national statistics. For living costs and rents, we used Numbeo, which aggregates user‑submitted prices; this provides broad coverage but may not match official statistics. We always used the most recent year available (usually 2023–2024, 2024-2025) but note that for some indicators (like prime lending rates in Japan or Laos) the latest official data are a few years old. Corporate tax rates are headline statutory rates; actual liabilities can differ depending on incentives or sectors.

Reading the results

The final index produces a score between 0 and 100. A higher score means a country offers faster internet, more investment, lower operating costs, better talent supply and a more favorable regulatory climate, on average. Singapore leads the ranking thanks to world‑class digital and financial infrastructure, fast incorporation and abundant skilled workers. Malaysia is mid‑table, benefiting from low costs and a healthy banking sector but still facing some red tape. The Philippines falls lower due to slower digital speeds and longer start‑up times, despite its strong growth and young workforce.

Caveats to keep in mind

• Data gaps: Not every country reports every metric. Missing values are omitted from that country’s average, which can boost or dampen the overall score.
• Data freshness: Some metrics, particularly lending rates, use the most recent available figure even if it dates back a few years.
• Crowd‑sourced data: Numbeo figures on rent and living costs are based on user submissions and may be less precise than official statistics.
• Tax and regulatory complexity: Headline corporate tax rates and ease‑of‑doing‑business scores don’t capture all sector‑specific incentives or bureaucratic nuances.
• Outliers: For visual comparisons, we trimmed obvious outliers (e.g., extreme FDI and inflation values) to make charts easier to read. The index calculation still uses the full dataset.