A new Scotland, the 'Singapore' of Europe?

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An independent Scotland could take marketing lessons from Singapore's business-friendly, trade-dependent economy, the world's largest advertising group told CNBC.
"From a sort of marketing, trade and investment point of view, I think [an independent Scotland] would mirror Singapore," Sir Martin Sorrell, CEO of WPP (London Stock Exchange: WPP-GB), told CNBC on Thursday.
The Southeast Asian city-state is consistently ranked one of the world's easiest places to do business. It's also the city with the best investment potential globally, according to the 2014 Business Environment Risk Intelligence (BERI) report.
Read More RBS, Lloyds: Just saying no to 'yes' in Scotland
Cutting the corporate tax rate to attract companies and compete with Ireland's tax-haven image is a key pillar of the 'Yes' campaign, the organization behind the separatist movement.
In late August, more than 200 business leaders signed a letter stating their support for the campaign, saying that "an independent Scotland will recognize entrepreneurs small and large as the real wealth and job creators of the nation's economic future." The country already enjoys a high level of foreign direct investment (FDI). In June, Ernst & Young said FDI stood at a sixteen-year high, with the U.S. accounting for nearly 40 percent.
Read More Independent Scotland: What would happen next?
"You know, the Chinese I'm sure will be interested in investing in Scotland. Maybe even other countries too," Sorrel remarked.
It remains to be seen whether China, which faces its own issues with regional separatist movements in areas like Tibet and Xinjinag, will embrace the opportunity. During a press conference with U.K. leader David Cameron in June, Premier Li Keqiang said he wanted a "united United Kingdom.
Read More Separatists around the world draw inspiration from Scotland
Wealthy property buyers from China, Taiwan and Singapore flocked to Edinburg in recent years, triggered by the rising number of international students in Scottish universities. A 2014 report from real estate firm Savills (London Stock Exchange: SVS-GB)showed the number of Chinese students spiked 78 percent over the last five years.
A new face of foreign relations
With less than a week left until the September 18 vote, questions about how an independent Scotland would fare in the global economy are flying.
Read More Soros wades in to Scotland debate
"I think the very interesting thing that [the referendum] raises [is] what are Scottish foreign relations going to look like?" Sorrell asked. "Who is the lender of last resort? Will the Bank of England still be the lender of last resort? Will there be an equivalent in Scotland? I mean it is a very complex situation," he said.
This week, Bank of England governor Mark Carney said that a newly independent Scotland would have to amass billions of pounds in currency stockpiles, regardless if it continued to use sterling.
Read More Central bank challenge for independent Scotland
Sorrell also sounded an alarm over the knock-on effect the vote will have on the prospect of Britain leaving the European Union (EU) in 2017, which is when Cameron has promised a referendum on Britain's E.U. membership
"What does Scottish independence or a Brexit, an exit from Europe, mean for the British economy? It's not good news. If that was to happen I think that diminishes Britain's position. And I think that's dangerous," he said.
"On the basis of the data that we see...it's quite clear that Britain would vote to be out. That in my view, the economic and democratic right of the electorate to express that view, that's a mistake," he added.
On Thursday, the International Monetary Fund (IMF) warned that uncertainty over a transition to independence could be negative for financial markets. IMF membership will also be one of the many issues that a breakaway from the U.K. will raise.
Read More Rogoff fears 'horrible disaster' for Scotland
Meanwhile, the Latest YouGov poll showed support tilting in favor of Scotland staying in the U.K., with 52 percent voting for 'no'. That's in contrast to last week, when YouGov found that the pro-independence vote with 51 percent.

https://sg.finance.yahoo.com/news/sc...013000959.html


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