Singapore
Description
The Republic of Singapore is an island city-state in Southeast Asia
Discussion
Overview
Singapore's name derives from the Sanskrit Singapura meaning "lion city". In 1819 the British colonised the island as a trading post. In 1826 common law was formally introduced with the Second Charter of Justice under King George IV. The nation moved from British colonial rule to a federation with Malaysia in 1963, which ended two years later with Singapore's expulsion in 1965.
At the time of independence, Singapore was resource-poor and experiencing high unemployment. The founding Prime Minister Lee Kuan Yew is mostly credited with facilitating Singapore's industrialisation and increased standards of living. This was done largely through foreign investment and rule of law.
Almost all land is held by the state with private owners holding tenure as freehold or leasehold. Approximately ten percent of land is privately owned.
Governance and Prosperity
Singapore is a parliamentary republic operating through the Westminster system of government.
It is formally a democracy albeit the same party has held power since 1959, the People's Action Party. The government also holds interests in most domestic media yet in 2026, Singapore rated first on the Heritage Foundation's Economic Freedom Index.
The population as at 2026 is approximately 5.9 million. Immigration in Singapore is highly controlled, governed by various types of work-passes. The lower skill associated with the work pass, the greater the restrictions placed on the individual.
Singapore also has generous tax laws, allowing nationals to control a larger amount of what they earn compared to most other countries in the world. The nation's private, albeit mandatory, savings requirement has so far proved effective for retirement living.
While the nation is not a strong example for freedom, Singapore demonstrates that prosperity is possible with low taxes, controlled immigration and private retirement management.
Singapore is also home to the Singapore International Commercial Court, the Singapore International Arbitration Centre and the Singapore International Mediation Centre, each widely recognized as relatively fair and effective dispute resolution bodies.
Frameworks
Controlled Immigration
Immigration Act 1959
Prohibited Immigrants (3) The following persons are members of the prohibited classes: (a) any person who is unable to show that he or she has the means of supporting himself or herself and his or her dependants (if any) or that he or she has definite employment awaiting him or her, or who is likely to become a pauper or a charge on the public; (b) any person suffering from a contagious or infectious disease which makes his or her presence in Singapore dangerous to the community; (ba) any person suffering from Acquired Immune Deficiency Syndrome or infected with the Human Immunodeficiency Virus; (c) any person desiring to enter Singapore who refuses to submit to an examination after being required to do so under section 29(1); (d) any person who — (i) has been convicted in any country of an offence for which a sentence of imprisonment has been passed for any term; (ii) has not received a free pardon; and (iii) by reason of the circumstances connected with that conviction is deemed by the Controller to be an undesirable immigrant; (e) any prostitute or any person who is living on or receiving or who, prior to entering Singapore, lived on or received the proceeds of prostitution; (f) any person who procures or attempts to bring into Singapore prostitutes or women or girls for the purpose of prostitution or other immoral purpose; (g) vagrants or habitual beggars; (h) any person whose entry into Singapore is, or at the time of his or her entry was, unlawful under this Act or any other written law for the time being in force; (i) any person who believes in or advocates the overthrow by force or violence of the Government or of any established government or of constituted law or authority or who disbelieves in or is opposed to established government, or who advocates the assassination of public officials, or who advocates or teaches the unlawful destruction of property; (j) any person who is a member of or affiliated with any organisation entertaining or teaching disbelief in or opposition to established government or advocating or teaching the duty, necessity or propriety of the unlawful assaulting or killing of any officer or officers, either of specific individuals or officers generally, of the Government or of any established government, because of his, her or their official character, or advocating or teaching the unlawful destruction of property; (k) any person who, in consequence of information received from any source or from any government through official or diplomatic channels, is considered by the Minister to be an undesirable immigrant; (l) any person who has been removed from any country by the competent authority of that country on repatriation for any reason whatever and who, by reason of the circumstances connected therewith, is considered by the Controller to be an undesirable immigrant; (m) any person who, being required by any written law for the time being in force to be in possession of valid travel documents, is not in possession of those documents or is in possession of forged or altered travel documents or travel documents which do not fully comply with that written law; (n) the family and dependants of a prohibited immigrant; and (o) any person prohibited by an order made under section 9 from entering Singapore, unless the person is exempted from this paragraph by an order made under section 56. (4) The burden of proof that any person seeking to enter Singapore is not a prohibited immigrant shall lie upon that person.
Taxation
Singapore taxes earnings accrued in, derived from or received in the state's territory.
Income Taxation Act 1947
Charge of Income Tax 10.-(1) Income tax is, subject to the provisions of this Act, payable at the rate or rates specified hereinafter for each year of assessment upon the income of any person accruing in or derived from Singapore or received in Singapore from outside Singapore...
There is a general corporate flat tax of 17%
Income Taxation Act 1947
Rate of tax upon companies 43.-(1) There is to be levied and paid for each year of assessment upon the chargeable income of — (a) every company or body of persons, tax at the rate of 17% on every dollar of the chargeable income thereof;
The personal income tax for residents is progressive up to 24% and Singapore has no capital gains tax.
Private Retirement Savings
Statute in Singapore requires both employees and employers to contribute a portion of the employee's monthly earnings to a retirement fund. This fund may be used for healthcare or retirement purposes, rather than relying on the taxes drawn from others.
Central Provident Fund Act 1953
7.—(1) Subject to any regulations made under section 77(1), every employer of an employee must pay to the Fund monthly in respect of each employee contributions at the appropriate rates set out in the First Schedule. ... 15AA.—(1) Subject to section 16, a member of the Fund is entitled to withdraw the sum standing to the credit of the member in the Fund if the Board is satisfied that the member is suffering from a significant condition.