The comparatively slow start to the year reflects the mellowed performance of the global economy, according to the report. Over the first three months of 2015, the number of new businesses set up in Singapore was down a notable 29 per cent to 14,641, compared to 20,540 in the previous quarter.

However, the sharp quarter-on-quarter drop need be put into context of the record number of sole proprietorship and partnership entities formed between April and December last year. This drove up company formation numbers for 2014.

“This dramatic spike in such registration is attributed to the special privileges announced in the 2014 Budget, now that the financial year has ended it is only natural for the numbers to revert to normalcy, which is very much evident from the Q1 2015 figures,” Hawksford said.

Still, Singapore held onto its status as a fertile business hub despite the weak global economic recovery. Over the first quarter, 42 foreign company branch offices registered in Singapore, while the share of 100 per cent foreign held companies remained steady at 22 per cent.

Regulatory factors no doubt continued to play an important part in these figures – namely that Singapore allows 100 per cent foreign ownership and does not tax dividends and capital gains.

“These results are testimony of the resilience of Singapore,” said Hawksford Singapore's chief operating officer, Jacqueline Low.

“At a time when the Western economies are wobbling, the Chinese economy is decelerating and the regional economies are grappling with their domestic political and economic challenges, Singapore’s stability and economic viability are strong pull factors for foreign entrepreneurs, investors and enterprises.”