Every time I come to Singapore I can’t help but marvel at its spectacular rise.
I have a number of local friends who have been living here since independence in the 1960s, and they tell me the most incredible stories about how impoverished and underdeveloped Singapore was back then.
Things were so backward back then that people would literally throw their own human waste out in the middle of the street. There was scarcely any clean water, literacy, savings, or technology.
Yet within a few decades Singapore had become one of the wealthiest places in the world. Not because they’re sitting on enormous oil reserves or have world-leading gold exports.
As a matter of fact, Singapore has virtually zero natural resources.
They did it all by establishing a free market system where everyone who worked hard, saved money, and took risks could prosper.
Singapore has one of the lowest tax rates in the world– with a corporate tax rate as low as 0% for new businesses, up to 17% for mature enterprises.
Their personal tax rates are quite low as well, and they don’t tax most types of investment income like dividends or capital gains.
Yet despite having such low tax rates, Singapore’s government has zero net debt and routinely runs substantial budget surpluses. And it’s not because they’re skimping out on services to the taxpayers, either.
Singapore’s armed forces, for example, are among the strongest, most advanced in Asia, with state-of-the-art weaponry and technology.
They have excellent public services, from education to courts to medical care to world class infrastructure.
It’s absolutely flummoxing to Bolshevik-minded people: they find it inconceivable that a low-tax country devoid of any natural resources could be so prosperous, debt-free, and simultaneously deliver top quality public services.
This is also why I’ve long suggested that Singapore is an excellent place to consider when forming your own “Plan B”.
And if this isn’t something you’ve thought about yet, I encourage you to start.
Sometimes I look back with utter incredulity at how far to the left the world has shifted over the past 10 years since I started Sovereign Man.
Politicians who would have been chased away as dangerous communists as recently as the early 2000s are today powerful figures who command loyal followers numbering tens of millions of people.
And the more they hate on wealth and prosperity, the more popular they become.
That’s the problem. Neither you nor I is going to be able to convince tens of millions of our fellow citizens that their Socialist fantasy is a disease of the brain.
These ideas of wealth taxes; rabidly high income taxes; free, socialized everything; universal basic income; etc. are now mainstream and gathering momentum.
This isn’t some pessimistic, gloomy prediction. It’s just a statement of fact. And it makes sense to be prepared for whatever might happen next.
Here are a few simple ideas to consider–
If the Socialist fever continues rising, it probably doesn’t make sense to keep 100% of your assets within in your home country.
It might not make sense to keep 100% of your investments in a stock market that is presently at its all-time high (and would certainly suffer severe turmoil if the Bolsheviks take over).
It probably makes sense to consider some portable and anonymous wealth like cash and gold spread around stronger jurisdictions that still respect privacy.
It probably makes sense to think about tax strategies that would protect you and your business against extreme changes in legislation.
These are all completely rational steps to consider. In fact you’d have to be pretty insane to look at the direction the world is headed and think, “What could possibly go wrong??”
And that’s where Singapore comes in.
The world is a big place, and there are a lot of options out there. But Singapore does tick a lot of boxes.
As a location to store some wealth overseas, for example, you could hardly choose a better place.
Singapore is safe, stable, impressively reliable, and free of corruption. And for a trivial amount of money, you could rent a safety deposit box here and fill it with assets like gold and physical cash.
This is completely legal to do, and non-reportable on your taxes (unless you sell the gold for a profit).
It’s a highly cost effective insurance policy for a potential rainy day down the road… which is what a great Plan B is all about.