Singapore has retained its top spot as the favorite destination for Asian enterprises to expand their businesses, according to the United Overseas Bank Asian Enterprise Survey 2016.

Asian companies are drawn to Singapore’s stable political and economic climate, its large and growing customer demand, and its favorable tax and regulatory environment, the survey showed.

One-third of Asian enterprises surveyed chose the city state as the market that they would expand into in the next three to five years.

Coming in second was Japan (29%), followed by Vietnam (28%) and South Korea (26%). China was ninth with 22 percent.