Recently I was thinking about this, and realized that a lot of the money issues I worry about for doing a startup would disappear if I incorporated in Singapore and ran my business (which would be a B2C/B2B hybrid, with possibly handling deposits into customer accounts) from a country which was very cheap to live in (India, Cambodia, Thailand or Vietnam).
What physical things do I have to worry about having to handle? What sort of stuff can I not easily handle with either a telephone call or an internet connection, assuming I'm working alone?
I'm particularly worried about how to read stuff that I'm going to have sent to a PO box and stuff like that. What stupid pitfalls am I optimistically avoiding to think about?
Realistically I'd say that you don't need to go from A to Z - Singapore is quite expensive, so I think you'd even save cash going someplace that's not totally "behind".
I'd say going to Vietnam, Cambodia or India would be an extreme. Do you want to risk not having the infrastructure needed to save 10x the amount? Maybe saving 3-5x and going down a middle path might be enough?
If you can find a trusted partner in these country then it can be a good decision. Because all you need is network and money for a business. And it will take time to build a network in new country. So batter get a partner from that country and start work with him/her.