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Volume 2, Issue 9. September 2013
The Technopreneur IssueRIKVIN PTE LTD
20 Cecil Street, #14-01 Equity PlazaSingapore 049705(Next to Republic Plaza and Raffles Place MRT)
Phone: Fax Email: Website:
(+65) 6320 1888(+65) 6438 [email protected]
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FOREWORDThe enhanced EntrePass criteria kicked in this month, making it inevitably tougher for non-technopreneurs to do business in Singapore. At the same time, the narrower path raises the bar for the types of enterprises that can do business here.
RIKVIN SERVICES
• Company Registration• Singapore Work Visas• Business Services• Accounting Services• Offshore Company Setup
Visit www.rikvin.com for more information.
In this Issue: Foreword (page 2)
New Singapore Entrepreneur Pass Criteria Kicks In (page 3)
Singapore Keen to Energize Technopreneur Scene (page 3)
More Funding to Come for Certain Technopreneurs (page 4)
Singapore Offers Best Value for Companies Choosing to Relocate (page 4)
Singapore Companies Continue to Invest in India (page 5)
Ask the Expert! (It’s Free) (page 5)
GSFTA a Win-win for Singapore and MENA Companies (page 6)
Singapore-Vietnam Economic Cooperation Set to Grow (page 6)
Pay your Taxes through Rikvin (page 6)
Firms that have innovation at the core of their business, have registered
intellectual property in Singapore, or those that have received funding
from approved VCs, for example, are expected to be able to employ
more Singaporeans, raise productivity and realise the nation’s dream
to become Asia’s R&D hub by 2015.
Then later in the month, MOM also announced a higher salary threshold
for Q1 Employment Passes.
Is it really becoming so hard to do business in Singapore? Or are you
doing it wrong?
With effect from next month, you can ask us your whys and hows. We
are launching Ask the Expert! session every last Friday of the month.
Drop in, or make an appointment for a one-on-one consultation. Best
of all it’s free! We hope that we can provide some tips that could help
your business do better.
If you have some thoughts to contribute on this issue, please contact
us at [email protected].
Yours sincerely,
Christine Lim General Manager, Rikvin
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Singapore Keen to Energize Technopreneur Scene
New Singapore Entrepreneur Pass Criteria Kicks In
The new Singapore EntrePass framework, which has been refined to create better workplaces for Singaporeans, has come into effect this month.
The new framework features tougher entry and renewal criteria for entrepreneurs who wish to relocate to Singapore to run their businesses. Singapore’s Ministry of Manpower (MOM) asserted that this is to ensure that Singapore will attract a certain calibre of high potential and high growth startups.
In essence, at least one of the following new EntrePass criteria must be met by prospective applicants, on top of the existing set of criteria:
• Receives support from a Singapore Government agency;
• Holds a nationally-recognised proprietary or licensed
Intellectual Property (IP);
• Has research collaboration with recognised research
institutions such as A*STAR or a local tertiary institution;
• Is an incubatee at a government-approved incubator; or
• Funded by an approved third-party venture capitalist or
business angel.
Commenting further, Mr. Satish Bakhda, Head of Operations at Rikvin said, “The new framework is no doubt more challenging for entrepreneurs who are keen to relocate to Singapore. However, it also ensures that those who manage to qualify for the scheme have a good chance of doing well in Singapore and may be able to sink deeper roots in the citystate; therefore creating longer term employment opportunities for Singaporeans. This again could help the country create good jobs for an increasingly educated workforce.”
To learn more, please visit:www.rikvin.com/press-releases/new-singapore-entrepreneur-pass-criteria-kicks-in/
“The new framework features tougher entry and renewal criteria for entrepreneurs who wish to relocate to Singapore to run their businesses.”
In January this year, we discussed how the MTI is committed to investing $16.1 billion within a 5-year period to bolster Singapore’s Research and
Development (R&D) sector under the RIE2015 (Research, Innovation, and Enterprise 2015) plan.
The RIE2015 plan, which was established in 2011, aims to bolster innovation in the city-state. Focusing on R&D as an integral component of Singapore’s overall economic strategy, the program supports Singapore’s long-term vision of becoming an innovation-driven economy.
Although Singapore is proving to be fertile ground for start-ups, as evidenced by the number of new technology firms opting for the Singapore company setup over the years, Professor Low Teck Seng, Chief Executive of National Research Foundation said that more needs to be done to energize Singapore’s technopreneurship and innovation scene.
To this end, more than 10 funding schemes will be rationalised but no monies will be cut. This is to ensure funding schemes are streamlined and not duplicated.
To learn more, please visit: www.rikvin.com/blog/singapore-technopreneur-scene/
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Data from the Savills World Cities Review for H2 2013 has revealed that Singapore offers the best value for money in terms of relocating. As a result, the republic surpassed cities such as Sydney, Moscow, New York, Paris, Tokyo, London, Shanghai, Hong Kong and Mumbai.
In H2 2013, it would cost US$1.005 million in office and residential rents to house two seven-member teams of a start up in a prime financial district as well as a secondary location in Singapore. Despite the relatively high residential and commercial rental costs, Singapore offers better value when total accommodation costs are measured against gross domestic product (GDP) per capita.
When using a total cost measure, Singapore came in as the sixth most expensive out of the 10 cities. Traditionally, firms often look at the total costs of renting an office space as well as residential units for its staff. Cities which
had even higher total accommodation costs were Hong Kong, New York, London, Paris and Tokyo. However, total cost is ia a misleading indication of the total real estate costs faced by relocating companies.
Commenting further, Savills World Research Director, Yolande Barnes, said that the value of real estate is higher where more corporate revenue can be generated. Hence, it is worth paying more to accommodate an executive team in Singapore than a city with a lower GDP per capita.
To learn more, please visit: www.rikvin.com/blog/singapore-best-value-companies-relocate/
Singapore Offers Best Value for Companies Choosing to Relocate
More Funding to Come for Certain TechnopreneursProfessor Low Teck Seng, CEO of National Research Foundation (NRF) has this month shared some insights about the Technology Incubation Scheme (TIS).
The TIS is a National Framework for Innovation & Enterprise (NFIE) initiative. S$360 million was earmarked for the programme over 5 years (2008 - 2012) to develop innovative entrepreneurship in institutes of higher learning (IHLs) i.e. universities and polytechnics. In turn, NFIE wants the eligible academic entrepreneurs to turn their R&D results into commercial products for the market place.
The scheme provides approved technology incubators
85% co-funding (up to S$500,000) in exchange for equity stake in the company. Professor Low said that NRF will explore increasing quantum amounts (up to S$850,000) for firms in the biotech, cleantech and other tech sectors that require high start up capital requirements.
As of March this year, the approved incubators to mentor high tech start-ups in Singapore include Silicon Straits, Plug & Play Singapore Pte Ltd and Clearbridge Accelerators. Analysis by Rikvin shows that this dovetails the recently refined Singapore EntrePass scheme. On top of the focus on technopreneurs and R&D intensive enterprises, one of the new criteria to be fulfilled by applicants is the procurement of funding by a recognized third-party VC or business angel.
To see the full list of incubators, please visit: www.rikvin.com/press-releases/national-research-foundation-tech-incubation/
“It is worth paying more to accommodate an executive team in Singapore than a city with a lower GDP per capita.”
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Singapore Companies Continue to Invest in India
As communicated in the WEF Global Competitiveness Index 2013, India was the least stellar of the BRICS economies, coming in at 59th place. Brazil, Russia, China and South Africa came in at 56th, 64th, 29th and 53rd place respectively. In spite of this, Singapore companies still believe in the long-term prospects in India.
As discussed in Rikvin’s blog earlier this year, investment opportunities in India are open for Singapore companies in the logistics, wastewater management, waste and sanitation as well as energy sectors.
Commenting on opportunities there, Mr. Benjamin Yap, South Asia Director at International Enterprise (IE) Singapore said that India’s long term prospects are still positive. He added that new opportunities in the infrastructure, manufacturing and consumer goods sectors will emerge for Singapore companies in Tier 2 cities such as Pune, Lucknow and Vishakhapatnam.
According to the IE Singapore, the demand for real estate in India will grow at a CAGR of 19% between 2010 and 2014. In addition, the Indian real estate market is expected to be worth US$180 billion by 2020.
Mr. Satish Bakhda, Head of Operations at Rikvin, agreed, “Singapore’s bilateral ties with India has been bolstered since the establishment of CECA in 2005. Our businesses are optimistic in India’s long term potential and won’t be prone to move due to short term challenges.”
To learn more, please visit: www.rikvin.com/press-releases/singapore-companies-invest-india/
Do you have any questions on work passes, GST, the Productivity and Innovation Scheme or even accounting and tax issues? Unsure about what government schemes you can tap for your business? Don’t know which entity suits your business best?
Grab the chance to have your Singapore company queries answered by our experts.
On every last Friday of the month, starting in October 2013, we will be providing FREE one-on-one consultations to our clients.
Ask the Expert! (It’s Free!)
“Our businesses are optimistic in India’s long term potential and won’t be prone to move due to short term challenges.”
Make an appointment* via [email protected] or visit www.rikvin.com/ask-expert/.
Date: Every last Friday of the month
Time: 10am to 5pm
Venue: Rikvin Hub (120 Telok Ayer Street)
* By making an appointment and letting us know what you would like to discuss, we can then match the right consultant to you.
We look forward to seeing you!
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Pay your Taxes through Rikvin
GSFTA a Win-win for Singapore and MENA Companies
If you have any issues paying your taxes to IRAS, you may now pay it through Rikvin.
The procedure is as follows. Upon receiving your IRAS bill, you may send the full payment amount via a bank transfer or cheque to us. Upon receiving the payment amount from you, we will then pay it immediately and on your behalf to IRAS.
This service is free of charge.
Please contact our Tax Support Lina via [email protected].
We look forward to being of service to you.
The Gulf Cooperation Council Singapore Free Trade Agreement (GSFTA), a comprehensive FTA between the Cooperation Council for the Arab States of the Gulf and Singapore, has entered into force this month.
The Gulf Cooperation Council (GCC) comprises of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE) and represents GCC’s inaugural FTA and the second one signed by Singapore with the Middle East. The agreement covers trade in goods as well as services, rules of origin, customs procedures, economic cooperation, electronic commerce and government procurement.
Rikvin recognizes that the GSFTA will strengthen bilateral and economic ties between both countries. In addition, the agreement will benefit sectors such as
telecommunications, petrochemicals, jewellery, electrical and electronic equipment, machinery and iron & steel-related industries.
In addition, both parties have also agreed to enhance cooperation in the communications technology and air services sectors. The GSFTA will also allow companies that have opted for Singapore company registration as well as citizens and Singapore permanent residents to hold large stakes in key GCC sectors such as construction services, computer and related services, environmental services and professional services, such as legal, architectural, engineering, urban planning.
To read more, please visit:rikvin.com/press-releases/gcc-singapore-fta-companies/
Singapore-Vietnam Economic Cooperation Set to GrowEarly this month, Singapore’s Prime Minister Lee Hsien Loong made a 3-day official visit to Vietnam. The visit sought to commemorate 40 years of bilateral ties and to elevate their cooperation to a “Strategic Partnership.” A strategic partnership would entail a shared commitment to enhance cooperation in new areas such as environment, aviation and finance.
Singapore is to date Vietnam’s third largest foreign investor, with investments worth S$33.5 billion in real estate, electronics, healthcare and shipping for example. Vietnam, on the other hand, is Singapore’s 18th largest trading partner. According to data from International Enterprise (IE) Singapore, bilateral trade between the two economies registered approximately S$15.8 billion in
2012, up from S$14.9 billion in 2011.
Mr. Satish Bakhda, Head of Operations at Rikvin opined, “The move to take the relationship to the next level will inevitably benefit Singapore as well as Vietnamese firms. Singapore’s strategic shift to nurture technopreneurship, as reflected in the TIS and EntrePass scheme could be complemented by Vietnam’s own strategic focus to develop suitable manpower for high-tech sectors. We anticipate that the partnership bodes well for both economies.”
To read more, please visit:www.rikvin.com/press-releases/singapore-vietnam-economic-cooperation-set-to-grow/
