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A comparative investment guide to Singapore and Malta

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Giacomo Merello, executive director, and Federico Vasoli, founding and managing partner, at international legal and tax advisory firm dMTV Global, look into comparative advantages businesses and investors can reap when doing business in Singapore and Malta.

Singapore and Malta, despite their geographical separation and distinct economic paths, share a fascinating historical connection. Both nations’ legacies of British administration have significantly influenced their modern legal, financial, and political systems.

A comparative investment guide to Singapore and Malta
Giacomo Merello (left) and Federico Vasoli

This shared past has imbued them with strong institutional frameworks, business-friendly regulations, and English as an official language, making them particularly attractive to international investors.

Singapore, once a critical maritime hub in the British Empire, rapidly transformed post-independence into a global financial powerhouse, leveraging its strategic location and disciplined governance to become Asia’s premier business destination.

Malta, on the other hand, has played a strategic role in European history for centuries, positioned at the crossroads of major Mediterranean trade routes. Its accession to the European Union in 2004 further solidified its role as a financial and corporate hub, offering businesses seamless access to the EU market.

Despite their colonial roots, the two nations have taken distinct approaches to economic development.

Singapore has become synonymous with cutting-edge technology, world-class infrastructure, and financial services, while Malta has capitalised on its EU membership to foster industries like gaming, maritime trade, tourism, yachting, and investment migration.

Yet, they remain alike in their ability to entice foreign investors seeking strategic advantages in either the Asian or European markets.

The business and investment landscape

Entrepreneurs looking for a jurisdiction to establish or expand their businesses will find both Singapore and Malta to be uniquely compelling.

Singapore, with its pro-business climate, is renowned for its swift company incorporation process, modern banking system, and an ecosystem that fosters innovation.

A business can be incorporated in a matter of days, and foreign ownership is fully permitted. The regulatory environment is transparent, and government agencies actively support new ventures, making it a magnet for multinational corporations and high-growth startups.

Malta, while smaller in scale, provides a similarly attractive business landscape, particularly for those seeking a European base of operations.

A comparative investment guide to Singapore and Malta
A glimpse of Malta. Photo: Federico Vasoli

Companies registered in Malta benefit from its membership in the EU, allowing seamless access to the Single Market. The country has also emerged as a top jurisdiction for fintech, online gambling, yacht and aircraft leasing, and asset management businesses, thanks to its business-friendly regulations and competitive incentives.

For investors evaluating where to set up, the decision often depends on whether they are targeting Asian or European markets.

Singapore is the undisputed gateway to Asia, boasting strong ties with China, India, and ASEAN economies. Malta, with its deep integration into the EU and geographical proximity to Africa, offers businesses the ability to operate within one of the largest economic blocs in the world as well as one of the most promising ones.

Tax advantages and fiscal policies

One of the strongest incentives for choosing either Singapore or Malta as a business jurisdiction lies in their respective tax systems, both designed to attract international investors and enterprises.

Singapore has a flat corporate tax rate of 17 per cent, with numerous exemptions and incentives available that can significantly lower effective tax rates.

Furthermore, there is no capital gains tax, and dividends are tax-free, making it an attractive option for companies and individuals alike. The city-state also boasts an extensive network of double taxation treaties with over 80 countries, ensuring tax efficiency for international businesses.

A comparative investment guide to Singapore and Malta
A glimpse of Malta. Photo: Federico Vasoli

Malta, on the other hand, offers one of the most competitive tax systems in Europe. While its standard corporate tax rate stands at 35 per cent, foreign-owned businesses often benefit from an effective tax rate as low as 5 per cent through the country’s full imputation system.

Additionally, Malta imposes no withholding taxes on dividends, interest, or royalties paid to non-residents, which makes it an attractive holding company jurisdiction.

The island nation also offers VAT exemptions for certain industries, further reducing operational costs for businesses engaged in global trade.

Both jurisdictions apply the principle of taxation of locally sourced or remitted income only. In Malta, this is particularly true for companies with non-domiciled shareholders, which is different from the at least theoretical worldwide taxation approach of most of its neighbours.

Residency and lifestyle benefits

For those considering not just business opportunities but also personal relocation, Singapore and Malta provide attractive residency options that cater to high-net-worth individuals and professionals.

Singapore’s Global Investor Programme (GIP) allows entrepreneurs to obtain permanent residency by investing at least S$2.5 million ($1.87 million) in a local business or an approved investment fund.

This scheme is particularly appealing to individuals seeking stability, security, and access to one of the world’s most advanced economies.

There are other very effective ways to obtain residency and, eventually, citizenship that can be fully explored in a holistic way.

The city-state’s quality of life is unparalleled, with world-class healthcare, excellent international schools, and a safe, cosmopolitan environment.

Malta, in contrast, offers residency and citizenship initiatives that appeal to those looking for greater global mobility. The Malta Permanent Residence Programme (MPRP) provides a pathway to permanent residency through a combination of real estate investment and financial contributions.

For those seeking an EU passport, the Maltese Citizenship by Naturalisation for Exceptional Services by Direct Investment offers a fast-track route to citizenship, granting the right to live, work, and travel freely within the European Union.

Other interesting options, like the ‘self-sufficient’ type of residency, may be open depending on the current citizenship of the applicant and other considerations. Given its Mediterranean climate, rich cultural heritage, and vibrant social scene, Malta has become an increasingly popular destination for expatriates and entrepreneurs alike.

The expertise of dMTV Global

Navigating the complexities of setting up a business or securing residency in a foreign country requires expert guidance. This is where dMTV Europe, led by its founder, lawyer Federico Vasoli, in Malta, comes into play, with specific expertise in international contracts, residency, and relocation services; Federico, a dedicated professional that is serving a term as vice-president of Italian Chamber of Commerce in Vietnam, also acts as the first point of contact for high-profile Vietnamese personalities in need of a broader scope of assistance.

At the same time dMTV Global, in Singapore, provides assistance on most local major regulatory, residential and international legal needs through its director, Giacomo Merello, a lawyer and locally licensed filing agent. The latter, in his role as Lord of Leslie in the Baronage of Scotland, also assists qualified individuals in dynastic and nobiliary matters both in Singapore and in Malta.

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IFC, SECO enhance partnership to bolster supply chain finance market in Vietnam

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The International Finance Corporation (IFC), in partnership with the Swiss Secretariat for Economic Affairs (SECO), has launched the second phase of its supply chain finance (SCF) programme in Vietnam.

IFC, SECO enhance partnership to bolster supply chain finance market in Vietnam

Announced on March 17, the initiative is backed by a 5 million Swiss franc grant from SECO, extending through 2029. It aims to provide more than half a million Vietnamese small and medium-sized enterprises (SMEs) with access to up to $35 billion in working capital.

Vietnam is among the world’s most open economies, with exports contributing approximately half of the country’s GDP and supporting every second job, directly or indirectly. However, Vietnamese suppliers and exporters often face working capital constraints, as payments for delivered goods typically take 30 to 60 days. This limits their ability to accept larger orders and establish new business relationships. A recent World Bank survey found that less than one-fifth of local firms had global value chain linkages in 2023.

Better access to SCF can help address these challenges by converting sales receivables and inventories into cash, reducing funding costs, and accelerating trade cycles. It also strengthens local connections to global value chains and frees up capital for investment in research and development, technology, and workforce training.

“We estimate that the first phase of the programme has unlocked over $30 billion in capital for around half a million Vietnamese SMEs,” said Thomas Gass, Swiss Ambassador to Vietnam. “By providing financial support to these businesses, the programme has not only helped SMEs to thrive but also contributed to broader economic growth, fostering a more inclusive and sustainable marketplace.”

Launched in 2018 with SECO’s support, IFC’s Vietnam SCF Programme has worked to address key market barriers hindering the growth of SCF. Its focus has been on fostering an enabling environment, enhancing institutional readiness, and increasing market demand and awareness. Over the past five years, the programme has contributed to improvements in movable finance regulations, provided tailored SCF strategy advice to four banks, and facilitated up to $33 billion in receivables and inventory financing for 500,000 SMEs.

“The State Bank of Vietnam, in collaboration with IFC and SECO, will continue to review and adjust regulations to foster a more favourable environment for SCF. This includes refining rules for e-financing platform lending and incentivising financial institutions to diversify their offerings, ultimately improving credit access for SMEs,” said deputy governor Nguyen Ngoc Canh.

The second phase of the programme, running over the next five years, will focus on strengthening Vietnam’s legal and regulatory framework to support SCF market development. It will also enhance the institutional capacity of lenders, enabling them to offer comprehensive SCF solutions to local SMEs. A key priority will be increasing awareness and capacity among buyers and suppliers, encouraging greater adoption of SCF across Vietnam.

“Trade is a key driver of Vietnam’s economy, and it will play a central role in the country’s ambition to achieve high-income status by 2045,” said Thomas Jacobs, IFC country manager for Vietnam, Cambodia, and Laos. “IFC is pleased to be working with SECO and our banking partners to help develop the supply chain finance market, which is a crucial component of the financial ecosystem for SMEs.”

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Canada’s Gene Bio Medical to build production facility in Binh Dinh

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Canadian biotechnology company Gene Bio Medical (GBM) has signed an MoU with Binh Dinh Pharmaceutical – Medical Equipment JSC (BIDIPHAR) to establish a large-scale production facility in the central province of Binh Dinh.

Canada's Gene Bio Medical to build production facility in Binh Dinh
Photo: IPC Binh Dinh

The partnership aims to manufacture high-quality diagnostic test kits using Canadian technology, catering to markets in Vietnam, Southeast Asia, the Middle East, and North America.

The BIDIPHAR-GBM joint venture represents an investment of $10–20 million to develop a state-of-the-art manufacturing facility in Binh Dinh. The collaboration underscores GBM’s commitment to global expansion and pandemic preparedness, positioning the company as a key player in next-generation diagnostics.

Among the joint venture’s key objectives are the advancement of scalable diagnostic solutions for pandemic preparedness and the pursuit of dual listings on the U.S. NASDAQ and Vietnam Stock Exchange within five years.

“Vietnam’s growing healthcare market and strategic location make it an ideal hub for our expansion,” said Jessica Hu, CEO and founder of Gene Bio Medical. “Our partnership with BIDIPHAR will leverage Canadian technology to provide affordable, high-quality diagnostic solutions across global markets. This joint venture aligns with GBM’s mission to enhance global health security through innovation and accessibility.”

GBM, headquartered in British Columbia, Canada, is recognised for its innovations in molecular diagnostics and AI-driven healthcare solutions. The company has an established distribution network across 4,900 independent pharmacies and hospitals in Canada, with its respiratory diagnostic product line expected to receive US Food and Drug Administration approval in 2025.

Binh Dinh has emerged as a premier investment destination in Vietnam, offering a range of incentives for foreign investors, including corporate income tax benefits, import tax exemptions, and land rental incentives.

“We welcome Gene Bio Medical’s investment in Binh Dinh’s biotechnology sector, a key pillar of our economic strategy,” said Lam Hai Giang, Vice Chairman of Binh Dinh People’s Committee. “The province remains committed to supporting international investors by providing world-class infrastructure and regulatory incentives.”

With strong infrastructure and investor-friendly policies, the BIDIPHAR-GBM joint venture is well-positioned for long-term success, contributing to the advancement of Vietnam’s biotechnology sector and expanding its role in the global diagnostics market.

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Start date set for Binh Duong-Ho Chi Minh City metro construction

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Binh Duong province’s first metro line, connecting Binh Duong New City to Ho Chi Minh City’s Suoi Tien, is expected to start construction in 2027 and be completed in 2031.

Start date set for Binh Duong-Ho Chi Minh City metro construction

The information was revealed in a pre-feasibility study of the project, which was approved by Binh Duong People’s Committee on March 13.

According to the study, the metro will involve S1 Station in Binh Duong New City centre, Hoa Phu ward, and Thu Dau Mot city. The ending point connects with Suoi Tien Station of Ho Chi Minh City’s Metro Line 1.

This line will span 32.4km, which includes a depot connecting section, and will pass through Tan Uyen, Thu Dau Mot, Thuan An, and Di An.

With an estimated investment capital of $2.52 billion, the metro line is set to feature 19 stations and with a designated speed of 120km/h.

Once completed, the venture will improve connectivity with Ho Chi Minh City, ease traffic congestion, and create growth drivers for local socioeconomic development.

Binh Duong is considering utilising official development assistance alongside budget capital to implement the construction of the first urban railway project in the locality.

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