Laura Gordon: Few sticking points for a city state backing business

Having just returned from a fascinating and inspiring business trip to Singapore, I was struck by the sense of purpose and vitality that permeates from this strategically-located hub of south-east Asia.

Here the talk is not about double-dip recession, austerity measures or rising unemployment. Some 7,000 miles from the grim reality of the UK's finances, quarterly GDP growth is back in double figures, the construction boom continues, and the government is expressing concerns about the economy overheating as foreign workers migrate towards the city state in their thousands.

The minister for national development has had to introduce sweeping measures to take the heat out of the booming property market and rein in investors and speculators to prevent a housing bubble.

But nothing quite so underpins Singapore's high-rising success as the ever-developing skyline, dominated by the iconic S$8bn Marina Bay Sands Skypark and the Singapore Flyer, the world's largest observation wheel surrounded by a backdrop of the new business district which is rapidly nearing completion.

That there is a global shift of economic power towards the other side of the world is inarguable. But what are the opportunities for Scottish businesses in Singapore, and how can we capitalise on this boom?

According to Scottish Development International's representative in Singapore, more than 60 Scottish companies began trading in Singapore in the past year, there are nearly 8,000 Scots based there, and a Scottish Business Association (SBA) is being created.

The SBA will encourage stronger business and cultural links between Scotland and Singapore, with a launch date proposed for St. Andrews Day. As Simon Lints, senior vice-president at Credit Suisse, a Globalscot based in Singapore, and one of the founding members of the SBA, says: "The Scottish diaspora in Singapore is extremely strong and vibrant. We felt it was time to harness the talents, expertise and resources of the Scottish business community to support each other."

For Scottish businesses looking to Singapore for business opportunities, the SBA will offer a ready-made network of high-level support, often hard to find in distant markets. They will also be helped by recent significant tax measures.

With a similar population size to Scotland, a highly educated workforce, and the largest container ports in the world, it is easy to see where opportunities lie for many Scottish businesses in shipping, logistics, oil and gas and marine and off-shore engineering.

Singapore is become an increasingly significant centre for financial services, and for life sciences, ICT and electronics, professional services and renewables, reflecting the majority of Scotland's priority sectors.Having just last month successfully hosted the Youth Olympics, there may also be lessons to be learned for the 2014 Commonwealth Games.

With access to the fast-growing south-east Asian economies and robust trade links with India and China, strong trade and investment makes Singapore the most competitive Asian country (Global Competitiveness Report 2008). The World Bank also ranks the city-state as the world's easiest place to do business (Doing Business 2009 report).

To encourage external investors to Singapore, it is easy for foreign companies to procure government contracts. But investors into Singapore need not just focus on the local market, thriving as it is. In the words of the executive director of British Chambers of Commerce in Singapore, Brigitte Holtschneider: "Singapore is an excellent first step into Asia. It provides the best, most business-friendly environment not only in Asia but in the whole world. As small as it is, Singapore is run like a business. The only industry the government don't want to attract is the tobacco industry."

Chewing gum imports are of course famously banned. But the government hopes that will be the only sticking point for incoming businesses.

• Laura Gordon is the CEO of Corporate Connections International