Germany is the largest economy in Europe with a GDP US$3.8 trillion1.
The country excels in innovation, with 277 international patents per one million inhabitants – more than anywhere else in the world. It also leads the world in automobile manufacturing, transportation infrastructure, and green technology.
It is home to 16.1% of the EU population and constitutes 20% of the EU’s GDP, with a highly industrialised and diversified economy. According to the Ministry of Trade and Industry’s Germany Economic Brief in 2021, manufacturing makes up about 23% of the economy, while services account for around 69%.
In addition, Germany is an attractive gateway for Singapore companies to enter Europe. Despite the relatively higher cost of doing business in Germany, it stands out for its central geographical location, modern finance system, and highly developed infrastructure.
You can take advantage of the prompt connections for your goods and employees with Germany’s web of roads, railways and international airports. The airport in Frankfurt is a key aviation hub, while the Port of Hamburg is the third largest container port in Europe.
1 Ministry of Trade and Industry, 2021
The German economy’s core strengths are in manufacturing and exports, backed by a highly-skilled workforce. Since the mid-1990s, manufacturing's share of Germany’s GDP has generally held steady at 22-23%2.
Your business can capitalise on the reliability of this sector and provide outsourcing services to German manufacturers in the areas of aerospace, food, furniture, medical technology, and offshore wind energy.
2 World Bank.
Bank on the favourable perception German companies have of Singapore companies. We are recognised for our reliability, quality, and strong intellectual property controls. You have a distinct advantage in an overseas venture to Germany because of the strong Singapore brand.
Alternatively, consider partnering a German business to help them enter Singapore. German firms have shown interest in teaming up with Singapore companies to build up technological capabilities here.
There are many opportunities for you to collaborate. They include contract manufacturing, distributorships, joint ventures, mergers and acquisitions, technology licensing, and setting up engineering centres to provide technical support to customers in the region.
To ease your entry into Germany or European Union, we are partnering German Entrepreneurship Asia (GE Asia) to set up two landing pads for Singapore startups in Munich and Berlin.