Best countries in APAC to start a business: 2025 startup ranking

From digital infrastructure and talent depth to startup costs and quality of life, new data sheds light on where entrepreneurs in APAC are finding the most favourable conditions to build and scale their businesses.

As entrepreneurship continues to gain momentum across Asia Pacific (APAC), there are various factors that are increasingly shaping startup decisions.

To better understand where these conditions come together, Intuit QuickBooks analysed which countries in the region offer the most supportive environments for new businesses. The Asia Startup Index Study assessed 24 countries across 17 indicators, covering infrastructure, access to capital, costs, business environment, talent, and lifestyle factors.

Where in APAC is it easiest to start a business?

The results place Singapore at the top of the APAC rankings, followed by China, Hong Kong (SAR), and Thailand, each offering distinct advantages for entrepreneurs looking to establish or expand their business hubs.

Taken together, the findings highlight how APAC remains a diverse and competitive startup landscape, with both established and fast-growing markets offering pathways for founders at different stages of growth.

Singapore: Dubbed a leading startup hub in APAC

Singapore ranked first overall in the Asia Startup Index, emerging as a standout destination for founders seeking a stable, highly connected, and talent-rich environment.

With strengths across digital infrastructure, workforce capability, and ease of doing business, the city-state continues to reinforce its position as a regional startup hub, even as operating costs remain a challenge.

Key findings for Singapore:

• First overall in Asia: Business startup appeal score of 71.99 out of 100.
  
• Fastest internet speeds (96.00/100) in the region: 393.2 Mbps, supporting highly connected and digital-first business models.
  
• Top-ranked talent pool: Driven by strong AI readiness (84.3%/100), high levels of advanced education (85.5%), and competitive average incomes (USD$4,443.30).
• Strong business landscape (74.52/100): Ranking among the top two for foreign direct investment (27.8% GDP), business density (11.3 new firms per 1,000 people), and ease of starting a business (1.5 days).
• Second-lowest cost to start a business: 0.4% of GNI, alongside competitive corporate tax and lending rates.
  
• Highest cost of living (97.20/100) among countries analysed: The region’s highest weekly rent and cost-of-living index score.
  
• Highest quality of life score (95.80/100): Supported by a happiness rating well above the regional average.

Key findings for Malaysia:

• Seventh overall in Asia: A well-rounded startup ecosystem.
  
• Strong average income (USD$3,080,70): Fifth in the region, helping attract and retain skilled professionals.
  
• Solid AI readiness (8^th in Asia): Supported by national digital initiatives and an adapting workforce.
  
• Relatively low startup costs (9th in Asia): Offering a more accessible entry point for early-stage businesses.
  
• Competitive lending environment (9th in Asia): With lending rate of 5.3% that support business growth and expansion.

Singapore’s and Malaysia’s rank for startup factors

To assess the strength of startup ecosystems in Singapore and Malaysia, the Asia Startup Index examined 17 key indicators that shape how easy it is to start, run, and grow a business. These indicators were grouped into five categories that matter most to entrepreneurs across APAC.

1. Internet speed

Fast and reliable internet connectivity plays a critical role in modern startups, particularly those relying on digital tools and remote collaboration. The study measured average Mbps across 24 APAC countries to assess how well markets support online business operations.

2. Talent pool

A strong talent base gives startups a competitive edge. This category measured three indicators:

• AI readiness: Reflects how prepared a country is to adopt and integrate AI technologies.
• Workforce with advanced education (%): Indicating access to skilled and specialised talent.
• Average monthly net salary (USD): A proxy for purchasing power and talent attractiveness.

3. Business landscape

This category examined how supportive the overall operating environment is for startups, based on factors such as:

• FDI net inflows (% of GDP): Signalling openness to foreign investment.
  
• Business density (new firms per 1,000 people): Reflecting the vibrancy of the startup scene.
  
• Predicted 2026 GDP growth (%): Points to future market opportunities.
• Private credit (% of GDP): Indicating access to financing.
  
• Time and cost to start a business: Capturing regulatory efficiency.
  
• Corporate tax rate and prime lending rate: Affecting ongoing business costs.
  
• Inflation and unemployment rates: Influence economic stability and labour market strength.

4. Cost of living

Living costs can significantly affect a startup’s financial runway. This category considered:

• Weekly rent (USD): Impacts operating and personal expenses.
  
• Cost of living index: Showing how far wages and capital can stretch in each market.

5. Quality of life

Beyond financial and operational factors, the study also considered wellbeing. A higher quality of life supports workforce engagement and founder sustainability, helping businesses retain talent and maintain long-term momentum

APAC's top startup destinations

Overall, the 2025 Index highlights how different markets cater to different founder priorities, from scale and speed to affordability and lifestyle. The top 10 are as follows:

To view the full ranking, click here.