Doing Business in Singapore · Doing Business in Singapore GLOBAL VISION ... Companies looking towards Singapore can easily establish their regional or operational headquarters here

Business Advisors to Growing Businesses

Doing Business in Singapore

GLOBAL VISION BACKED BY LOCAL KNOWLEDGE

Copyright 2017 RSM 1

Foreword 4

oVerVIew oF SINGAPore 5 SingaporeasanEconomicHubandInternationalFinancialCentre SingaporesAttractivenessasanInvestmentDestination

CoMMerCIAL eNVIroNMeNT 9 SingaporesEconomy IndustriesinSingapore EmergingBusinesses SingaporeandTrade InvestmentActivities GovernmentPro-businessSchemes

HoUSING, TrANSPorT & edUCATIoN IN SINGAPore 18 Singapore:AGlobalisedCityState HousinginSingapore CommutinginSingapore StudyinginSingapore

TYPeS oF BUSINeSS orGANISATIoNS 27 SoleProprietorshipsandGeneralPartnerships LimitedLiabilityPartnerships LimitedPartnerships Companies JointVentures ForeignCompanies RepresentativeOffices IncorporatingaCompany AnnualRequirementsforCompanies RegistrationofaForeignCompany RegistrationofaLimitedLiabilityPartnership(LLP) ComparisonofSoleProprietorships,GeneralPartnerships,LLPsandCompanies

BUSINeSS & reSIdeNTIAL PreMISeS 34 OfficeSpace TypicalOfficeLeaseTerms IndustrialSpace TypicalIndustrialLeaseTerms ResidentialAccommodation ForeignersRentingaHomeinSingapore ForeignersPurchasingPrivatePropertyinSingapore

CoNTeNTS

Doing Business in Singapore2

TAXATIoN IN SINGAPore 48 Introduction IncomeTax IndividualTaxandCorporateTax DividendPayment WithholdingTax TransferPricing GoodsandServicesTax StampDuty PropertyTax CustomsandExciseDuties EstateDutyandGiftTax ExchangeControl TaxIncentives InternationalAgreements

BANkING 61 IntroductiontotheFinancialLandscapeinSingapore MonetaryAuthorityofSingapore CurrencyInterchangeabilityAgreement

LISTING IN SINGAPore 67 TheSingaporeAdvantage Mainboard Catalist ProfessionalHelptoPavetheWay CostsInvolvedinaListingExercise

FINANCIAL rePorTING & AUdITING 71 TheAccountingProfession RegulationoftheAccountingProfession AccountingRecords FinancialReportingStandards CompaniesActRequirements

LeGAL 74 LegalFramework Mergers&Acquisitions CompetitionAct HandlingCivilDisputes IntellectualProperty(IP)LawinSingapore

MANPower 86 EmploymentStandardsandRegulations SingaporeLabourLegislation StatutoryBoardContributions WorkinginSingapore

CoNTeNTS


SINGAPore wITHIN ASeAN 93 OverviewofASEAN ForeignDirectInvestmentinASEAN ASEANEconomicCommunity

ABoUT rSM INTerNATIoNAL 98

ABoUT rSM IN SINGAPore 99

ACkNowLedGeMeNTS 101

CoNTeNTS


Foreword

Singapore as your Anchor in AsiaSingaporehasbeenconsistentlyrankedamongthemostpreferredcountriesforfinance,businessandcommerce.Thisismainlyduetoitsstrategiclocation,pro-businessenvironmentandstablepoliticalatmosphere.

CredentialsthecitystatehasreceivedincludethirdplacinginIMDsWorldCompetitivenessYearbook2017andbeingpositionedfourthintheSeptember2017GlobalFinancialCentresIndex.Singaporealsotookthefifthspotamong160countriesintheWorldBanks2016LogisticsPerformanceIndex.BeingrankedamongthebestintheworldonTransparencyInternationalsCorruptionPerceptionsIndex2016,thenationiswellplacedastheidealchoiceforcompaniestoconsiderexpandingtheiroperationsinto.

NeighbouringAsiancitiescanbeaccessedfromSingaporebyairtravelwithinsevenhours.ThisenablesSingaporetobeanexcellentspringboardforbusinessexpansionintheregion.CompanieslookingtowardsSingaporecaneasilyestablishtheirregionaloroperationalheadquartershereandevenusethislocationasanR&Dandintellectualpropertyplatform.Withlowcorporatetaxandinterestrates,aswellasthepresenceofover80taxtreatieswithothercountries,businesscostsarekeptlow.Thenationalsodoesnothaveforeignexchangecontrols.Thismakesiteasierforinvestorstodealwithforeignexchangerisk.Corporategovernanceriskisalsominimisedwithatransparentgovernmentandtheauthoritiesbackingtopromoteworld-classpractices.

RSMwelcomesforeigninvestorstosetuptheirbaseinSingaporeanduseitasanintegralpartoftheirexpansionplanstogrowtheirbusinessandoptimisetheiroperations.Withover950staffinSingaporeand320inChina,wehavehelpednumerousforeignbusinessesinareassuchasCross-borderInvestmentAdvisory,InternationalTaxAdvisory,aswellasCompanySetUpinSingaporeandothercountries.OuraffiliationtoRSMInternationalalsofacilitatesconnectionsonaglobalscale.

WehopethisguidewillprovidethenecessaryinsightsintohowyoucanmakethebestuseofwhatSingaporecanoffer.

WelcometoSingapore.Wewelcomeyoutochatwithus.

Chio kian HuatChiefExecutiveOfficerRSMinSingapore


SINGAPore AS AN eCoNoMIC HUB ANd INTerNATIoNAL FINANCIAL CeNTreSingaporeisanislandnationinSoutheastAsia.Despiteitssmallsizewithfewnaturalresources,Singaporehastakenadvantageofitsstrategicgeographicallocationandexcellentconnectivitytobecomeoneoftheleadingeconomicandfinancialcentresintheworld.

Asaneconomichub,SingaporesmajortradingpartnersincludeChina,Malaysia,theEuropeanUnion,theUnitedStates,Indonesia,HongKong,Taiwan,SouthKorea,JapanandThailand.

Singaporestotalforeignworkforce(excludingforeigndomesticworkers)numberedabout1.13millioninJune20171,anditsmulticulturalpopulationmainlycomprisesChinese,Malays,Indians,andEurasians.English,Mandarin,MalayandTamilarethefourofficiallanguagesinSingapore,withEnglishwidelyusedinbusinessandeducation.

AkeytrendthatisexpectedtooffervastopportunitiesforbusinessesinSingaporeisrapidurbanisationinAsia.TheUnitedNationsprojectsanother2.5billion2peoplecouldbeaddedtourbanpopulationsby2050,withAsiaandAfricaaccountingforcloseto90%oftheincrease.Between2014and2050,Chinaaloneisexpectedtoadd292millionurbandwellers.

Asiasrapidurbanisationwillbringabouthugeinfrastructureneeds.From2010to2020,AsiawillneedtoinvestaboutUS$8trillioninoverallnationalinfrastructureforenergy,transport,telecommunications,waterandsanitation3.

TheriseindisposableincomesandconsumerisminemergingAsianmarketswillalsoofferSingapore-basedbusinesseswithmoreopportunitiestotargetawiderrangeofcustomersegments.

Asaninternationalfinancialcentre,Singaporehasover1,200financialinstitutionsincluding5local,122foreignand32merchantbanksin20174thatoffermanyproductsandservicesacrossvariousassetclasses.WithassetsundermanagementatS$2.7trillion(US$1.9trillion)in20165,thebankingsectorisespeciallyimportanttoSingaporesroleinfinancinglocalandregionalgrowth,forexample,infacilitatinginfrastructuredevelopment.

Inaddition,SingaporeisAsiaslargestandtheworldsthird-biggest(aftertheUnitedKingdomandUnitedStates)foreignexchangetradingcentre,accordingtoa2016TriennialCentralBankSurveybyBankforInternationalSettlements.ThisgivesfurtherevidenceofSingaporesincreasingstandingandinfluenceasaglobalfinancialcentre.

Likewise,thecitystatealsogarneredthehighestshort-andlong-termtriple-AcreditratingsfromallthreemajorcreditratingagenciesStandard&Poors,MoodysInvestorsService,andFitchRatings.However,thiscontinueddevelopmentasaregionalandinternationalfinancialcentrealsocomeswithclosesurveillancebySingaporescentralbanktheMonetaryAuthorityofSingaporeandappropriatepolicyformulation.

1 Foreign Workforce Numbers, Ministry of Manpower (www.mom.gov.sg)2 World Urbanization Prospects, 2014 Revision, United Nations3 Financing Asias Infrastructure: Modes of Development and Integration of Asian Financial Markets, 2010, Asian Development Bank Institute4 Monetary Authority of Singapore Annual Report 2016/175 2016 Singapore Asset Management Survey, Monetary Authority of Singapore

oVerVIew oF SINGAPore

http://www.mom.gov.sg


SingaporesfinancialservicessectorisgovernedbyvariousActsandregulations,suchas:

Monetary Authority of Singapore ActTheMonetaryAuthorityofSingapore(MAS)ActgivesMASthefullauthoritytoregulatethefinancialservicessectorinthecountry.

Banking ActTheBankingActregulatesbanksandrelatedfinancialinstitutionsandtheiractivities,includingthecreditcardandchargecardbusinessofbanksandotherinstitutions,amongothers.

Securities and Futures ActTheSecuritiesandFuturesActregulatesactivitiesandinstitutionsinthesecurities,futuresandderivativesindustry,includingleveragedforeignexchangeandderivativestrading.

regulations against Money Laundering and Financing of TerrorismAmemberoftheFinancialActionTaskForce,Singaporehasestablishedstrictregulationstofightmoneylaunderingandthefinancingofterrorism.

Payment Systems (oversight) ActThePaymentSystems(Oversight)Actprovidesfortheoversightofpaymentsystemsandstoredvaluefacilities,aswellasrelatedmatters.

FormoreinformationontheActsandregulationsabove,visit:http://statutes.agc.gov.sgorwww.mas.gov.sg.

Singapore Quick FactsLandArea(2016) :719.2squarekilometresTotalPopulation(2016) :5.6millionGDP(2016) :S$410.3billion(aboutUS$306.6billion)PerCapitaGDP(2016) :S$73,167(aboutUS$54,675)TotalTrade(2016) :S$870.2billion(aboutUS$650.3billion)TouristArrivals(2016) :16.4millionForeignDirectInvestmentinSingapore(2016) :S$1.36trillion(aboutUS$1.02trillion)

Source: Singapore Department of Statistics

SINGAPoreS ATTrACTIVeNeSS AS AN INVeSTMeNT deSTINATIoNSingaporespositionasanattractivedestinationforforeigninvestorsisduetofactorssuchas: PoliticalandEconomicStability CorporateGovernanceandTransparency Pro-businessEnvironment CompetitiveTaxRates RobustIntellectualPropertyRegime HighLiteracyRate ExtensiveNetworkofTradeAgreements ExcellentConnectivityandInfrastructure RelativelyHassle-freeImmigrationProcessesforForeignInvestors


http://statutes.agc.gov.sghttp://www.mas.gov.sg/


Political and economic StabilitySingaporeisaparliamentaryrepublic,withthePeoplesActionParty(PAP)asthenationsrulingpoliticalpartysince1959.Since1978,Singaporehasbeenlargelystrike-freeandthenationspeacefulindustrialrelationshaveoftenbeenattributedtoitstripartitemodel.

Establishedin1972toformulatewageguidelinestoensureSingaporeslong-termeconomicgrowth,theNationalWagesCouncil(NWC)isatripartitebodycomprisingrepresentativesfromtheemployers,tradeunionsandgovernment.TheNWCmeetseveryyeartodeliberatewageandwage-relatedmattersandissuesrelatedguidelinesbasedonthetripartiteconsensusreached.

Corporate Governance and TransparencyHighcorporategovernancestandardsplayanimportantpartinmaintainingSingaporespositionasaninternationalfinancialcentre.TheMonetaryAuthorityofSingapore(MAS)andSingaporeExchange(SGX)havesharedoversightofcorporategovernanceoflistedcompaniessinceSeptember2007.SingaporealsohasarevisedCodeofCorporateGovernanceissuedbytheMASinMay2012.WhilecompliancewiththeCodeisnotmandatory,listedcompaniesarerequiredundertheSGXListingRulestodisclosetheircorporategovernancepracticesandexplaindeviationsfromtheCodeintheirannualreports.

SingaporeisrankedfirstworldwideintheTransparencyofgovernmentpolicymakingindicatorinWorldEconomicForumsTheGlobalCompetitivenessReport2016-2017.Italsorankedamongtheworldsleastcorruptcountriesinthereport,takingthirdplaceundertheIrregularpaymentsandbribesindicator.

Pro-business environmentSingaporehasbeenrecognisedforitsconducivepro-businessenvironment.AccordingtotheWorldBanksDoingBusiness2017:EqualOpportunityforAllreport,Singaporerankedsecondworldwideintermsoftheeaseofdoingbusiness.

Thecountryalsohasthesecond-mostcompetitiveeconomyintheworld,supportedbyfactorssuchasitsworld-classinfrastructureandstrongfocusoneducation,accordingtoWorldEconomicForumsTheGlobalCompetitivenessReport20162017.

Competitive Tax ratesSingaporesgovernmentbelievesinkeepingtaxratescompetitiveforbothcorporationsaswellasindividuals.SuchapolicyaimstomaintainSingaporesattractivenessasaforeigninvestmentdestinationandencourageentrepreneurship.

robust Intellectual Property regimeSingaporecameinfourthworldwideinintellectualproperty(IP)protection,accordingtoWorldEconomicForumsTheGlobalCompetitivenessReport20162017.ItsrobustIPregimeisbuiltonatrustedlegalsystemandstrongIParbitrationcapabilities.TosupportIPdisputeresolutioninAsia,Switzerland-basedWorldIntellectualPropertyOrganizationestablishedanArbitrationandMediationCentreinSingapore,itsonlycentreoutsideGeneva.

High Literacy rateFiguresbySingaporeDepartmentofStatisticsshowedthatSingaporehadaliteracyrateof97%amongresidentsaged15yearsandolderin2016.



extensive Network of Trade AgreementsSingaporehasanextensivenetworkofFreeTradeAgreements(FTAs)inAsia.TheseincludebilateralFTAsandASEANregionalFTAs(refertoSingaporewithinASEANsectionofthisguideformoredetails)withkeyeconomiessuchasAustralia,China,India,JapanandtheUnitedStates.

excellent Connectivity and InfrastructureSingaporeisoneoftheworldstoptransportationhubsforseaandaircargo.Connectedtomorethan600portsinover120countries,Singaporeisthebusiestportintheworldintermsofshippingtonnage,withanaverageof140,000vesselcallsannually.

SingaporesChangiAirportisamongtheworldsbusiestinternationalairports,servingmorethan100airlinesthatflytosome380citiesinabout90countriesandterritoriesworldwide.Airfreightmovementsattheairporttotalled1.97milliontonnesin2016.

Thereisalsoawiderangeofstate-of-the-artconventioncentres,exhibitionhallsandmeetingvenuesinSingaporeforvariousneeds.SomemajorvenuesincludeSuntecSingaporeConventionandExhibitionCentre,SingaporeEXPO,andRafflesCityConventionCentre.

relatively Hassle-free Immigration Processes for Foreign Investors EligibleinvestorswhowishtosetupabusinessinSingaporemayapplyfortheSingaporepermanentresidencestatusthroughtheGlobalInvestorProgramme(GIP).FormoreinformationabouttheGIP,visit:www.contactsingapore.sg/gip.

IssuedtoeligibleforeignentrepreneurswhowishtostartanewbusinessinSingapore,theEntrePasshasavalidityperiodofoneyearforanewpassorfirstrenewalandtwoyearsforsubsequentrenewals.FormoreinformationabouttheEntrePass,visit:www.mom.gov.sg.

Contributed by:rSM8WilkieRoad#03-08WilkieEdgeSingapore228095Tel: +6565337600Fax:+6565387600Email:[email protected]:www.RSMSingapore.sg


http://www.contactsingapore.sg/giphttp://www.contactsingapore.sg/giphttp://www.mom.gov.sgmailto:MKTG%40RSMSingapore.sg?subject=http://www.RSMSingapore.sg


CoMMerCIAL eNVIroNMeNT

SINGAPoreS eCoNoMYSingaporehasahighlydevelopedfree-marketeconomythatdependsheavilyonexports.In2016,itrecordedaGDPofS$410.3billion(aboutUS$305.3billion),up0.5%year-on-year.ItspercapitaGDPisalsoamongthehighestintheworldatS$73,167(aboutUS$54,000)in2016.

Singapores GdP Composition by Sector (2016)

Construction5%

OwnershipofDwellings4.4%

Information&Communications4.2%

Accommodation&FoodServices2.2%

Utilities1.5%

Transportation&Storage7.6%

BusinessServices15.8%

Wholesale&RetailTrade14.2%

Finance&Insurance13.1%

OtherServices12.2%

Manufacturing19.6%


INdUSTrIeS IN SINGAPoreAerospace engineeringSingaporeisthemostcomprehensiveaerospacehubforMaintenance,RepairandOverhaul(MRO)inAsia,accountingforaquarteroftheregionsMROoutput.Itsexistingcapabilitiesinprecisionengineeringandelectronicsalsosupportproductionofcomplexaero-enginecomponents.

SingaporesSeletarAerospaceParkprovidesaconduciveenvironmentforaerospacecompaniestooperateandcollaborate.

Clean energyThereisastrongfocusonsolarenergyinSingapore,givenitsstrategiclocationinthetropicalsunbeltandstrongsemiconductorcapabilities.Otherareasoffocusincludewindenergy,biomass,tidalenergy,smartgrids,greenbuildings,energyefficiencyandcarbonservices.

MajorenergyplayershavesetupoperationsinSingapore,attractedbyfactorssuchasitsstrongcapabilitiesinelectronics,precisionengineeringandchemicals,massmanufacturingknow-how,androbustintellectualpropertyprotectionregime.


ChemicalsSingaporeisoneoftheleadingenergyandchemicalindustryhubsintheworld.ManyoftheworldsleadingenergyandchemicalcompanieshaveoperationsonSingaporesJurongIsland,whichhasattractedmorethanS$35billion(aboutUS$26billion)worthofinvestments.

Consumer BusinessSingaporeiswell-positionedtosupportconsumerbusinessesininnovationandregionalgrowthstrategiesduetoitscentrallocationinAsia,strongscientificandbrandmanagementcapabilities,aswellasconducivebusinessenvironment.

InstituteonAsianConsumerInsightconductsresearchandeducationprogrammestohelpininnovatingbrandsandproductstomeetAsianconsumersneeds.

Content & MediaSingaporescontentandmediasectorconsistsofvariousindustries,includingmediaowners,games,animation,visualeffectsandpublishing.Favourablefactorsforcontentandmediacompaniesincludethenationsworld-classtalent,developedinfrastructureandresearchcapabilities.Withitsstrongintellectualpropertylawsandmultilingualtalentpool,Singaporeisalsoanideallocationforcreatinganddeployingnewcontent.

electronicsSingaporeisachoicelocationforelectronicscompaniestocreateandmanagenewmarkets.Thecountryishometo: nineoftheworldstop15fablesssemiconductorcompanies; sixoftheworldstopintegrateddevicemanufacturers; theworldstopthreeharddiscmediamanufacturers;and fouroftheworldstopfiveelectronicsmanufacturingservicesproviders.

energySingaporeisAsiasleadingoiltradinghubaswellasanoilandoilproductpricingcentreintheregion.ItisalsotheleadingbulkliquidslogisticshubinAsiaandamajormarinebunkeringcentre.

Cities, Infrastructure & Industrial SolutionsSingaporeisaleadingone-stophubforengineeringsolutionsandhometoagrowingnumberofglobalengineeringdesignfirms.Nineoftheworldstop10controlandautomationcompaniesalreadyhaveasignificantpresenceinthecountry.

environment & waterThereareabout180watercompaniesinSingaporethatrepresenttheentirevaluechainfromupstreamcomponentplayers,OriginalEquipmentManufacturers(OEMs)andsystemintegratorstodownstreamEngineering,ProcurementandConstruction(EPC)playersandprojectdevelopers.

Thecountryalsonurturestheenvironmentalindustry,whichincludesenvironmentalconsultancy,wastemanagementandpollutioncontrol.

HealthcareSingaporesstandardofmedicalpracticeranksamongthebestintheworld.Therearestrategicpartnershipopportunitiesforhealthcareserviceproviderstodevelopandtestinnovativehealthcaresolutionsandsystems.



International Non-Profit organisationsSingaporeishometoabout140InternationalNon-ProfitOrganisations(INPOs),andiswell-positionedtosupportthemasafinancialhubwithstrengthsinlogisticsandtelecommunications.

Infocomm ServicesSingaporeisrankedfirstworldwideinnetworkreadiness,accordingtotheWorldEconomicForumsTheGlobalInformationTechnologyReport2016.Itsexcellentinfrastructure,strongintellectualpropertyprotectionregime,goodconnectivityandeasyaccesstoglobaltalentattractinfocommservicescompaniestothecountry.

Infocomm ProductsLeadinginfocommproductcompanieshavesetuptheirglobalandregionalheadquartersinSingapore,coveringthefullvaluechainfromresearchanddevelopmentandsupplychainmanagementtomanufacturing,logisticsandsharedservices.

SomekeyproductsmanufacturedinSingaporeincludemission-criticalandsecurecomputingproductssuchashigh-endservers,ATMs,point-of-salessystems,networkingequipmentandsmartcards.

Logistics & Supply Chain ManagementSingaporeisatrustedandreliablesupplychainhubwithhighlyefficientcustomsandbusiness-friendlyimport/exportprocedures.

Itsseaandairportsarereadilyaccessiblethroughawell-planneddomesticroadnetwork.Singaporesworld-classandspecialisedinfrastructureincludestheAirportLogisticsParkofSingapore,theChangiInternationalLogisParkandtheBanyanLogisPark.

Marine & offshore engineeringSingaporebuildsmorethan50%oftheworldshigh-specificationoilrigsandhascloseto70%oftheglobalmarketfortheconversionoffloatingproductionstorageandoffloadingunits,accordingtotheSingaporeEconomicDevelopmentBoard.

Medical TechnologySingaporeisAsiasleadinglocationformedicaltechnology,withcommercial-scaleplantssetupbyover30medicaltechnologycompaniestoproducemedicaldevicesfortheregionalandglobalmarkets.

SingaporesmedicaltechnologysectorcontributedaboutS$10billioninoutputin2015andS$70millionhasbeencommittedundertheSectorSpecificAcceleratorprogrammetoencouragetheformationandgrowthofmedicaltechnologystart-upsinthecountry.

Pharmaceuticals & BiotechnologyMorethan30oftheworldsleadingbiomedicalsciencescompanieshaveoperationsinSingapore.

SomelocalbiomedicalresearchinstitutesincludetheBioinformaticsInstitute,BioprocessingTechnologyInstitute,GenomeInstituteofSingapore,andInstituteofBioengineeringandNanotechnology.

Precision engineeringSingaporesprecisionengineeringindustrycomprisescompaniesthatrangefromcontractmanufacturerstofullsolutionproviderswithdesign,prototyping,productionandsupplychainmanagementcapabilities.



Professional ServicesMNCsfromawiderangeofindustriesandgeographieshaveestablishedtheirregionalorglobalheadquartersinSingapore,whichhasalsodrivendemandforprofessionalservices.

Source: Singapore Economic Development Board

eMerGING BUSINeSSeSAutomotiveAlmostallmajorOriginalEquipmentManufacturersandTier1automotivesuppliersuseSingaporetooverseetheirregionaloperations.

Singaporesstrengthsinelectronics,info-communicationsandmechanicalengineeringalsosupportgrowthofrelatedautomotiveresearchanddevelopment.

Safety & SecuritySingaporeEconomicDevelopmentBoardpartneredwiththeMinistryofHomeAffairs(MHA)toformtheSafetyandSecurityIndustryProgrammeOfficetopromotethisindustryinSingapore.

Throughthiscollaboration,platformsarecreatedwherebycompaniescanworkwiththepublicsectorthroughpublic-privatepartnershipsontheirinnovativesolutionsinaliveoperationalenvironmentinSingapore.

Natural resourcesSingaporeaimstobeanervecentrethatplaysapartinfulfillingglobaldemandforaquaculture,agriculture,metalsandminerals.

Lifestyle Products & ServicesGrowinglifestylebusinessesinSingaporeincludethoserelatingtoart,collectibles,performingartsandsports.

roboticsSingaporesmanufacturingindustryhasthehighestrobotdensityintheworldafterSouthKorea,with488robotsper10,000employeesin2016.About90%oftherobotsareinstalledinSingaporeselectronicsindustry,whichhasincreaseditsnumberofrobotinstallationssignificantlyinrecentyears.

SpaceEstablishedbythegovernmentin2013,theOfficeforSpaceTechnologyandIndustryservesasthedesignatedofficetodevelopSingaporesspaceindustry.

Sources: Singapore Economic Development Board and International Federation of Robotics



SINGAPore ANd TrAdeTradingishighlyimportanttoSingaporeseconomy.AccordingtotheWorldTradeOrganization,SingaporestradetoGDPratiowas168.5%(20142016).Mostimportsenterthecountryduty-free.

SingaporestotaltradeatcurrentpricesamountedtoS$870.2billion(aboutUS$647.5billion)in2016.

Singapores Merchandise Trade Performance at Current Prices (20062016)

2006 20102008 2012 20152007 2011 20142009 2013 2016Year

S$billion

200

600

1000

400

800

1200

Total Trade

Total exports

Total Imports


Top Trading PartnersChinawasSingaporeslargesttradingpartnerin2016,followedbyMalaysia,theEuropeanUnion,theUnitedStatesandHongKong.OthermajortradingpartnersincludeIndonesia,Taiwan,SouthKorea,JapanandThailand.

Singapores Top Trading Partners in 2016 (Share of Total Merchandise Trade)

HongKong

EuropeanUnion

UnitedStates

Malaysia

China

7.4%

10.7%

8.3%

10.8%

13.5%

Source: Economic Survey of Singapore 2016, Ministry of Trade and Industry



Global Maritime HubSingaporeisaglobalmaritimehubstrategicallylocatedatthesoutherntipoftheMalayPeninsula.Connectedto600portsinover120countries,Singaporeisthebusiestportintheworldintermsofshippingtonnage,withmorethan130,000vesselcallseachyear.MorefactsandfiguresaboutSingaporespositionasaglobalmaritimehubarehighlightedbelow.

Facts and Figures Morethan5,000maritimeestablishmentscontributingabout7%toSingaporesgrossdomesticproduct,andemployingmorethan170,000personnel

Hometoabout140oftheworldstopshippinggroups Topbunkering(shiprefuelling)portintheworld,withmorethan45milliontonnesofbunkersliftedin2015 Commandsabout70%shareoftheworldsjack-uprig-buildingmarketand70%oftheglobalFloatingProductionStorageandOffloadingplatformsmarket

MaritimeandPortAuthorityofSingaporeoffersassistanceinsettingupamaritimebusinessaswellasinexpandingexistingoperations

SingaporeRegistryofShipsamongtop10largestregistriesintheworldandcurrentlyhasover4,500vesselsregisteredwithit

30.59millionTEUs(Twenty-footEquivalentUnits)ofcontainershandledbyPSASingaporein2016

Sources: Maritime and Port Authority of Singapore and PSA Singapore

Free Trade and other AgreementsFreeTradeAgreements(FTAs)mayallowSingapore-basedexportersandinvestorstoenjoyvariousbenefitssuchastariffconcessions,preferentialaccesstocertainsectors,fasterentryintomarketsandIntellectualProperty(IP)protection.

Singapores Involvement in FTAs ASEANregionalFTAs(refertoSingaporewithinASEANsectionofthisguideformoredetails) Australia(SAFTA) China(CSFTA) CostaRica(SCRFTA) EuropeanFreeTradeAssociation(ESFTA) GulfCooperationCouncil(GSFTA) HashemiteKingdomofJordan(SJFTA) India(CECA) Japan(JSEPA) NewZealand(ANZSCEP) Panama(PSFTA) Peru(PeSFTA) RepublicofKorea(KSFTA) Trans-PacificStrategicEconomicPartnership(TPSEP) Turkey(TRSFTA) UnitedStates(USSFTA)

Source: International Enterprise Singapore



AsatJuly2017,Singaporealsohasmorethan80doubletaxationagreements(DTAs)and40investmentguaranteeagreements(IGAs).MoreinformationontheseisfoundintheTaxationsectionofthisguide.

INVeSTMeNT ACTIVITIeSForeign direct Investment in SingaporeForeignDirectInvestment(FDI)inSingaporetotalledapproximatelyS$1.36trillionin2016,up7.7%fromthepreviousyear.Ofthis,S$1.22trillion,orabout90%,wereintheformofdirectequityinvestment.TheremainingS$141billion,or10%,werenetlendingfromforeigndirectinvestors.ThegrowthofFDIinSingaporeinrecentyearsisshownbelow.

FdI in Singapore (2012-2016)

20132012 20152014 2016Year

S$billion

600

800

1100

1200

1300

1400

1000

700

900

1500

500


Singapores direct Investment AbroadSingaporesdirectinvestmentabroadincreased8.8%year-on-yeartoreachS$764.7billionin2016.



Singapores direct Investment Abroad (2012-2016)

20132012 20152014 2016Year

S$billion

350.0

450.0

600.0

650.0

700.0

750.0

550.0

400.0

500.0

800.0

300.0


Top 10 destinations for Singapores direct Investment Abroad in 2016 (S$ billion)

CaymanIslands

BritishVirginIslands

India

Australia

UnitedKingdom

HongKong

Malaysia

Indonesia

Luxembourg

China

34.7

40.0

36.3

40.6

43.7

52.8

42.1

52.7

64.2

123.5




GoVerNMeNT Pro-BUSINeSS SCHeMeSSingaporesgovernmentoffersvariousschemestosupportbusinessesinthecountry.SomeoftheseschemesareadministeredbytheSingaporeEconomicDevelopmentBoard(EDB)andSPRINGSingapore,bothstatutoryboardsundertheMinistryofTradeandIndustry.

EDBscorporateinvestmentarm,EDBI,investsingloballycompetitivecompanieswithhigh-growthpotential,especiallythoseinthebiomedicalsciences,information&communicationtechnology,andsmart&sustainabletechnologysectors.FormoreinformationaboutEDBI,visitwww.edbi.com.

Othergovernmentbodies,suchasInternationalEnterprise(IE)SingaporeandInfo-communicationsMediaDevelopmentAuthority(IMDA),alsosupporteligiblebusinesses.

Somepro-businessgovernmentschemesinSingaporeareshowninthefollowingtable.Moreinformationcanbefoundonthegovernmentbodiesrespectivewebsites.

edBwww.edb.gov.sg

SPrING Singaporewww.spring.gov.sg

Ie Singaporewww.iesingapore.gov.sg

Inland revenue Authority of Singapore

www.iras.gov.sg

ResearchIncentiveSchemeforCompanies

TrainingGrantforCompany

ProductivityGrant PioneerCertificateIncentive

DevelopmentandExpansionIncentive

Finance&TreasuryCentreIncentive

LandIntensificationAllowance

AircraftLeasingScheme

Innovation&CapabilityVoucher

CapabilityDevelopmentGrant

SMELoans StartupSG

MarketReadinessAssistanceGrant

GlobalCompanyPartnershipGrant

InternationalMarketingActivitiesProgramme

WageCreditScheme DoubleTaxDeductionforInternationalisationScheme

Sources: Singapore Economic Development Board, SPRING Singapore, International Enterprise Singapore, and Inland Revenue Authority of Singapore

Contributed by:rSM8WilkieRoad#03-08WilkieEdgeSingapore228095Tel: +6565337600Fax:+6565387600Email:[email protected]:www.RSMSingapore.sg


http://www.edbi.comhttp://www.edb.gov.sghttp://www.spring.gov.sghttp://www.iesingapore.gov.sghttp://www.iras.gov.sgmailto:MKTG%40RSMSingapore.sg?subject=http://www.RSMSingapore.sg


HoUSING, TrANSPorT & edUCATIoN IN SINGAPore

SINGAPore: A GLoBALISed CITY STATeSingaporepossessesatotallandareaof719.9squarekilometres,housesapopulationof5.64million,andisknownforhavingoneofthehighestpopulationdensitiesintheworld.Thecountryhasnonethelessachievedahighqualityofliving.GlobalhumanresourceconsultingfirmMercerrankedSingaporeasthemostliveablecityinAsiaonits2017QualityofLivingIndex,basedonvariousfactorssuchasthepolitical,socialandeconomicenvironments,medicalandhealthconsiderations,andeducation.

Thecitystatehasasignificantforeignpopulation,with71%comprisingcitizensandpermanentresidents(PRs),and29%non-residents.Themetropolitancityhasadiversemixofcultures,withpeopleofvariousnationalitiesworkingindifferentindustries.

TheSingaporeeconomyhasevolvedgreatlyinthelastfivedecades.ItbeganwithindustrialisationafterSingaporesindependencein1965.Asacountrywithnonaturalresources,alow-skilledlabourforce,andpoorinfrastructure,ithadtheuphilltaskofconvincingforeigninvestorsthatitwasagoodplaceforbusiness.Throughtheyears,thegovernmentcontinuedtoplayacriticalroleinsteeringtheeconomy.Variousstrategieswerecrucial,inparticular,diversifyingtheeconomyanddevelopingnewenginesofgrowth,continuouslyseekingtomovethemanufacturingsectortowardshigh-valueaddedindustries,astrongemphasisonmanpowerdevelopmentthrougheducationandtraining,andembracingglobalisation.

Today,Singaporehasoneofthehighestgrossdomesticproductspercapitaintheworld.Itremainswellregardedasatriple-A-ratedeconomywithconsistentgrowth,asoundandstablelocationforbusinessexpansion,andaconduciveenvironmentforinvestments.Italsopridesitselfasawell-establishedfinancialhubforAsia.ThegovernmentcontinuestoexplorenewenginesofgrowthtodiversifyanddrivetheeconomytotakeSingaporethroughthenextphaseofgrowth.

HoUSING IN SINGAPoreHousing Types in SingaporeInSingapore,about80%ofallhouseholdsresideinpublichousingflats,andtheother20%stayinprivatelandedandhigh-risenon-landedresidentialproperties.Thehomeownershiprateamongresidenthouseholdsishighat91%asat2016.

Publichousingdevelopmentsserveasapillarofnation-buildingbypromotingsocialmobility,socialintegrationandsharedexperiences.ThesepublichousingflatsplannedbytheHousingandDevelopmentBoard(HDB),otherwiseknownasHDBflats,arelocatedinhousingestatesequippedwithawiderangeofretailandotheramenitiessuchasparksandchildrensplaygroundstoservethedailyconvenienceandlifestyleneedsofresidents.

ThevarioustypesofHDBflatsarelistedinthefollowingtable.


Typical Sizes and Common Features of different Types of HdB Flats

Type of HdB FlatTypical Size

(in square metres)Common Features

StudioApartments(SA) 35and45

Designedtomeettheneedsofelderlyresidents Soldon30-yearleases Canaccommodateaone-ortwo-memberhouseholdcomfortably

Eachflatissoldinready-to-occupycondition

2-roomflats 45

Eachflatcomeswith: Livingareathatmaybesubdividedintoanextraroom,ifneeded

Kitchen Onebedroomwithanattachedbathroom Storeroom-cum-apartmentshelter

3-roomflats 60-65

Eachflatcomeswith: Livingarea Kitchen Onemasterbedroomwithattachedbathroom Oneotherbedroom Commonbathroom Serviceyardand Storeroom-cum-apartmentshelter

4-roomflats 90

Eachflatcomeswith: Livingarea Diningarea Kitchen Onemasterbedroomwithattachedbathroom Twootherbedrooms Commonbathroomsand Storeroom-cum-apartmentshelter

5-roomflats 110

Eachflatcomeswith: Livingarea Diningarea Kitchen Onemasterbedroomwithanattachedbathroom Twootherbedrooms Commonbathroom Storeroom-cum-apartmentshelter



Type of HdB FlatTypical Size

(in square metres)Common Features

3Genflats 115

Eachflatcomeswith: Livingarea Diningarea Kitchen Onemasterbedroomwithanattachedbathroom Anadditionalbedroomwithattachedbathroom Twootherbedrooms Commonbathroom Storeroom-cum-apartmentshelter

Executiveflats 130

Eachflatcomeswith: Livingarea Diningarea Kitchen Mainbedroomwithattachedbathroom Twoadditionalbedrooms Commonbathroomand Storeroom-cum-apartmentshelter

Thereisadditionalspaceforastudyroom.ThiscanbeeasilyconvertedintoasmalllivingroomoraTV-viewingcorner.

Someexecutiveflatscomeequippedwithabalconyaswell.

Source: Housing and Development Board (HDB)

Inadditiontotheconventionalpublichousingdevelopments,thegovernmentintroducedtwootherschemes.Hybridprivate-publichousingdevelopmentsknownasExecutiveCondominiums(ECs)werefirstbuiltin1996tocatertomiddle-incomeindividualswhoseearningsexceedthemaximumlimittoqualifyforsubsidisedpublichousingbutwhomaynotbeabletoaffordprivateproperty,wherepriceswerebeyondreachformanyinabuoyantmarket.Startingoutwithapublicdevelopmentstatus,ECswilleventuallyattainprivateresidentialstatusafter10yearsfromtheirdateofcompletion.TheDesign,Build,&SellScheme(DBSS)wasintroducedin2005,whereflatsweredevelopedbyprivatedeveloperstooffermoredesignsandchoicesforpublichousingtomeettheaspirationsofhigher-incomepublicflatbuyers.

TherearevariousschemesunderwhichSingaporecitizenscanpurchaseapublichousingflat,anddifferenteligibilityconditionsapplyundereachscheme.Ingeneral,marriedcouplesabovetheageof21andsinglepersonsabovetheageof35areeligibletopurchaseapublichousingflat.

PrivatehousingdevelopmentsinSingaporeincludethefollowing: Landedproperties(detachedhouses,semi-detachedhousesandterraces) Non-landedproperties(Privatecondominiumsandapartments)



CoMMUTING IN SINGAPore Transport Network TravellingbypublictransportinSingaporeisfairlyconvenientwitharelativelywell-developedpublictransportationnetwork.Thegovernmenthasinvestedheavilyincontinuouslyimprovingthevariousmodesofpublictransport,withtheLandTransportAuthorityspearheadingpoliciestostrengthenurbanmobility.ThethreemainmodesofpublictransportaretheMassRapidTransit(MRT),busesandtaxis.Eachtypeofpublictransportservestocatertothedifferentneedsofcommuters,rangingfromcosttoconvenience.AccordingtoastudyconductedbyconsultingcompanyCredo,thepublictransportationsysteminSingaporeisoneofthemostcost-efficientintheworld.

Mass rapid Transit and Light rail Transit Systems ThemostcommonformofpublictransportinSingaporeistheMRTtrainsystem,whichservicesanaveragedailyridershipof3.1million.Withfivemainlinesrunningatpresent,atotalrailnetworklengthof170.8kilometresand106stationsintotal,theMRTisoneofthemostcommonwaysforcommuterstotraveltovariouspartsofSingapore.ItisalsoespeciallyconvenienttotraveltodowntownareassuchasOrchardRoadandtheCentralBusinessDistrict.

AfurtherextensionofthelocalrailsystemistheLightRailTransit(LRT),whichformsthelightrailcomponentofSingaporesrailnetwork.Firststartedin1999tosupportthegovernmentsaimoffacilitatingintra-towntravel,LRTsystemshavebeendevelopedinselectedlargetownstofacilitategreateraccessibilitybeyondtowncentres,improvecommutingexperiencefromMRTstationsandminimiseroadtrafficcongestion.

Public Bus System Complementingthetrainsystemisthediversepublicbusnetwork,whichisprovidedbytwooperators,SBSTransitandSMRT.Morethanthreemillionridesarerecordedonadailyaveragebasis,reflectingthereliabilityandimportanceofthebusnetworkinprovidingcommuterswithaconvenientexperienceandconnectivity.

Together,theMRTandbussystemsformacomprehensivepublictransportnetworkinSingapore.

Taxi System Morethan25,000taxisplytheroadsofSingapore,withapproximately954,000tripsmadedailyonaverage.Taxisgenerallyallowcommuterstoreachtheirdestinationsdirectlywithinarelativelyshortertime,albeitatahighercost.Atpresent,therearesixmajortaxicompaniesoperatingtheirfleetsinSingapore: ComfortTaxi CityCab SMRTTaxis Transcab PremierTaxis PrimeTaxi

Private Hire Cars Inrecentyears,privatehirecarcompanieslikeUberandGrabhavealsoenteredthelocalmarket.Withfewerregulationsgoverningtheprivatehirecarsector,driverswhocouldnotmeetthestringentrequirementsofthetaxiindustryhaveturnedtowardstheprivatehirecarsectorinstead.Suchdriverstypicallyofferthesameservicesasataxi,butatalowercost.Asaresult,theyaregainingpopularityamongbothlocalsandforeigners.



STUdYING IN SINGAPoreSingaporeseducationsystemfallsunderthepurviewoftheMinistryofEducation(MOE).Itisrenownedforitsemphasisonbroad-basedandholisticcurricula,andhasreceivednumerousinternationalaccolades.ThemediumofinstructioninmainstreamschoolsisEnglishandthefollowingdiagramshowsanoverviewofvariousstagesofeducationinSingapore.

Stages of education in Singapore

Post-secondary (one to three years)17 to 19 years old

JuniorColleges/CentralisedInstitute Polytechnics InstituteofTechnicalEducation SpecialSchools1

IntegratedProgramme3

SpecialisedIndependentSchools4

PrivateSchoolsandInstitutions5

Secondary (Four to five years)13 to 16 years old

SecondarySchools SpecialSchools1

SpecialisedSchools2

IntegratedProgramme3

SpecialisedIndependentSchools4

PrivateSchoolsandInstitutions5

Primary (Six years)Seven to 12 years old

PrimarySchools SpecialSchools1

Pre-school (Three years)Four to six years old

University (Three to four years)20 to 23 years old

Note: 1 Special schools cater for students with special needs, such as those with visual or hearing impairments/disabilities. 2 Specialised schools offer customised programmes for students who are inclined towards hands-on and practical learning. 3 The integrated programme combines secondary and junior college education into one programme. 4 Specialised independent schools are for students with specific talents in areas such as maths, science, arts and sports. 5 Private schools and institutions offer their own curricula.



ranking of Singapores education System by Accolades

ranked by How Singapores education System is ranked

PrIMArY edUCATIoN

WorldEconomicForumsGlobalCompetitivenessReport2016-2017

Qualityofprimaryeducationrankedfourthoutof138countries Topinenrolmentforprimaryeducation,achievinguniversalprimaryeducation

HIGHer edUCATIoN (SeCoNdArY & TerTIArY edUCATIoN)

WorldEconomicForumsGlobalCompetitivenessReport2016-2017

Qualityofeducationsystemrankedsecondoutof138countries Rankedfirstamong138countriesinthequalityofmathsandscienceeducation

TerTIArY edUCATIoN

2018QuacquarelliSymonds(QS)WorldUniversityRankings

NanyangTechnologicalUniversity(NTU)rankedthetopuniversityinAsiaand11thworldwide

NationalUniversityofSingapore(NUS)rankedsecondinAsiaand15thworldwide

Sources: World Economic Forum, Quacquarelli Symonds (www.topuniversities.com)

Singaporehasachievedalmostuniversaleducationacrosstheprimaryandsecondaryschoollevels.ThemainstreamormosttypicalrouteforaSingaporestudentbeginswiththreeyearsinpre-schoolfromtheageoffourtosixyearsold,followedbysixyearsofcompulsoryprimaryeducationfromsevento12yearsold.Thenthestudentspendsfourtofiveyearsinasecondaryschoolfrom13to16/17yearsofage.

Aftersecondaryeducation,studentshavetheoptiontoenteraJuniorCollege(JC),polytechnicorInstituteofTechnicalEducation(ITE).Next,thegraduatingstudentsinJCsorpolytechnicsmaychoosetoproceedtofurtherstudiesinalocaluniversity(alsobasedoneligibility)orcommencetheirworkinglife.

Primary educationPrimaryeducationisasix-yearcourseofeducationtypicallycommencingwhenachildhasreachedsixyearsofage.Since2003,primaryeducationhasbeenlegislatedascompulsoryforallSingaporecitizensabovetheageof6,withtheexceptionofchildrenwhochoosetoattenddesignatedschools,aregrantedtheexemptionforhome-schooling,orhavespecialneedsduetophysical/intellectualdisability.

PrimaryeducationculminatesinaPrimarySchoolLeavingExamination(PSLE),whichallstudentsmusttake.Theirgradesinthisexaminationwilldeterminethesecondaryschoolstheyareeligibletoenrolfor.However,since2004,theMOEhasintroducedtheDirectSchoolAdmissionSecondary(DSA-Sec)ExercisethatisconductedbeforethereleaseofthePSLEresults.Differentschoolsmayconsiderdifferentcriteriasuchassportingabilityorothertalents,whichisintendedtoconsideramorediverserangeofachievementsandtalentsinstudentsseekingplacementintheschoolofchoice.Itservesasanalternativeavenueforprimaryschoolstudentstobeconsideredforadmissiontosecondaryschools.StudentswhohaveoptedforaschoolundertheDSA-SecExercisemustachievePSLEresultsthatwouldenablethemtobeeligibleforadmissiontoacourseofferedbytheirchosenDSA-Secschools.


http://topuniversities.com


RegistrationforprimaryschoolisconductedfromJunetoSeptembereveryyear.Therearemorethan180primaryschoolsofferingdifferentnumbersofvacancies,andtheinformationwillbemadeavailablepubliclybeforetheapplicationperiodcommencesinJune.

option for Home-schoolingSpecialexemptionwillhavetobeappliedforhome-schooling,andwillonlybegrantediftheparentsareabletosatisfyMOEthattheywillbeabletoachievethetwoobjectivesofCompulsoryEducation(CE): Givethechildacommoncoreofknowledgethatwillprovideastrongfoundationforfurthereducationandtrainingtopreparehim/herfortheknowledge-basedeconomy;and

Helptobuildnationalidentityandcohesion.

Hence,theapplicationforhome-schoolingwillrequireparentstofurnishinformationonthecurriculumandeducationaloutcomesofthehome-schoolingprogramme,andindicatehowthechildwillreceiveinstructioninNationalEducation(NE).AchildgrantedexemptionfromCEtobehome-schooledhastoattemptthePSLEinfoursubjectsatStandardLevel(English,MotherTongue,Mathematics,Science)whenhe/sheisabove11yearsold,butbeforereaching15yearsofage,andmeetthePSLEbenchmarkscorefortheyear.ThechildisalsorequiredtosittheNEquizbeforetakingthePSLE.

Secondary educationSecondaryschoolsplacestudentsintheExpress,Normal(Academic),orNormal(Technical)coursesaccordingtohowtheyperforminthePSLE.Eachprogrammeisintendedtocatertodifferentlearningabilitiesandinterests.

StudentsintheExpressstreamwilltaketheGCECambridgeOLevelexaminationsattheendoffouryears,whilestudentsintheNormal(Academic)andNormal(Technical)streamwilltaketheGCENlevelexaminationattheendoffiveyears.Theirresultsintheseexaminationswillbeanimportantadmissioncriterionconsideredbyvariouspost-secondaryinstitutions.

Therearemorethan150secondaryschoolswithdifferentannualenrolmentsinSingapore.

Junior Colleges and Centralised InstituteStudentshavethreeoptionsforpost-secondaryeducation:Pre-universityeducation(inJuniorColleges(JCs)oracentralisedinstitute),Polytechnic,orInstituteofTechnicalEducation(ITE).

Pre-universityeducationpreparesstudentsfortheGCEALevelExaminationattheendofatwo-yearJCorthree-yearcentralisedinstitutecourse.

PolytechnicsTherearecurrentlyfivepolytechnicsinSingapore,eachofferingmorethan35courses.Thiseducationpathwayistypicallymorepractice-centred,andseekstotrainstudentsinrelevantandspecificskillsfortheworkplace.

Integrated Programmes for Secondary and Post-secondary educationSince2004,theMinistryofEducationintroducedIntegratedProgrammes(IPs)inselectedsecondaryschoolsandJCs,whichgiveacademicallystrongstudentstheoptiontochooseanintegratedsecondaryandJCeducationwheresecondaryschoolpupilscanproceedtotheJCwithouttakingtheGCEOLevelExaminations.ThetimefreedupfromnothavingtopreparefortheOLevelExaminationswillallowthosewhoareacademicallystrongertoengageinbroaderlearningexperiencesthroughagreaterrangeofacademicandnon-academiccurricula.TheIPsleadtoeithertheALevelExaminations,InternationalBaccalaureate,orotherdiplomas,dependingontheprogrammeofferedbytheschoolofchoice.



School of the Arts (SoTA)Setupin2004,SOTAisSingaporesfirstnationalpre-tertiaryspecialisedartsschooltoofferasix-yearuniqueintegratedartsandacademiccurriculumforyouthsaged13to18.ItcomesundertheambitoftheMinistryofCulture,CommunityandYouth(MCCY)insteadoftheMinistryofEducation.

Theadmissionprocessisdifferentfromthattypicaltosecondaryschoolsorintegratedprogrammes.Theselectionprocessinvolvesacognitiveexercise,audition,personalinterview,andportfolioreview.

Itisopento: CurrentPrimary6studentswhoaresittingforPSLEin2014(DSA-Secondarycategory) StudentswhowillcompletetheequivalentofaPrimary6educationby2014(DSA-Secondary,Non-MOEcategory)

CurrentSecondary4ExpressandSecondary5Normal(Academic)StreamstudentswhoaretakingtheGCEOLevelExaminationsin2014(DSA-JCcategory)

FormoreinformationonadmissionintoSOTA,visit:www.sota.edu.sg.

Institute of Technical education (ITe)TheITEoffersatechnicaleducationtrack,andcouldpavethewayforhigherleveltrainingatthepolytechnicsbasedoneligibility,shouldstudentsdecidenottoentertheworkforceyet.

LASALLe College of the Arts and Nanyang Academy of Fine Arts (NAFA)Theseareprivateinstitutionsprovidingpost-secondaryeducationinthearts.Bothofferpubliclyfundeddiplomaprogrammes,andalsoreceivegovernmentfundingforselecteddegreeprogrammesofferedinpartnershipwithreputableoverseasuniversities.

University educationTherearefiveautonomousuniversitiesinSingapore,namely: NanyangTechnologicalUniversity(NTU) NationalUniversityofSingapore(NUS) SingaporeInstituteofTechnology(SIT) SingaporeManagementUniversity(SMU) SingaporeUniversityofTechnologyandDesign(SUTD)

TheNTUandNUSareSingaporesmostestablisheduniversitiesandwellregardedinternationally.Theotherthreeuniversitiesaremorespecialisedandhaveasmallerenrolmentcohortannuallythantheothertwo.Forexample,SMUoffersabusiness-focusedcurriculum,SUTDfocusesontechnology-intensive,designeducationinengineeringandarchitecture,andtheSIToffersindustry-focusedprogrammesforthegrowthsectorsoftheSingaporeeconomy.

Agraduatemedicalschool,Duke-NUSGraduateMedicalSchoolSingapore,wasalsocreatedthroughapartnershipbetweenDukeUniversitySchoolofMedicineandNUStoincreaseSingaporescapacitytodevelopavibrantbiomedicalhub.

Apartfromthefiveautonomousuniversities,thereisalsoaprivateuniversity,SingaporeInstituteofManagement(SIM),whichprovidesuniversityeducationforworkingprofessionalsandadultlearners.Inaddition,thereareseveralotherbranchcampusesofwell-regardedforeigntertiaryinstitutionslocatedlocally.


http://www.sota.edu.sg


Foreign System Schools (FSS)Althoughthepublicschoolsystemoffersahighqualityeducationframework,someexpatriatesmaypreferenrollingtheirchildreninForeignSystemSchools(FSS).ThismayespeciallybethecaseforstudentswhohavenotusedEnglishasthemediumofinstructionpriortocomingtoSingapore.

Therearecurrentlymorethan30FSSimportedfromvariouscountriesthatfollowdifferenteducationsystemsoftencongruentwiththoseofferedinthehomecountry.AsstipulatedbytheImmigrationandCheckpointsAuthority,allforeigners,exceptDependantsPass/ImmigrationExemptionOrderholders,whowishtostudyinanFSSarerequiredtoapplyforaStudentsPass.Since20June2011,FSSregisteredwiththeCouncilforPrivateEducation(CPE)needtobeawardedwithEduTrustcertificationtoofferschoolplacementforinternationalstudents.StudentsPassapplicationswillbeacceptedonlyiftheyareforinternationalstudentswhoareenrolledinanEduTrust-certifiedFSS.

Note: The views expressed in this article are based on regulatory requirements as at 25 October 2017.

Contributed by:knight Frank Pte Ltd10CollyerQuay#08-01OceanFinancialCentreSingapore049315Tel: +6562221333Fax:+6562229305Email:[email protected]:www.KnightFrank.com.sg


mailto:enquiry%40knightfrank.com.sg?subject=http://www.knightfrank.com.sg%0D


SoLe ProPrIeTorSHIPS ANd GeNerAL PArTNerSHIPSAllsoleproprietorshipsandpartnershipsmustberegisteredwiththeAccountingAndCorporateRegulatoryAuthority(ACRA)undertheBusinessRegistrationAct,Cap32.ACRAmustbenotifiedofanychangesintheparticularsoftheproprietor,managerorpartnersofbusinessfirmswithintheprescribedtimeline.

Soleproprietorshipsandgeneralpartnershipsarenotcorporatebodies;i.e.soleproprietorsandpartnersofpartnershipshaveunlimitedliabilityforthedebtsandobligationsthatarisefromthebusinesses.

LIMITed LIABILITY PArTNerSHIPSALimitedLiabilityPartnership(LLP)mustberegisteredwithACRAundertheLimitedLiabilityPartnershipsAct2005.

AnLLPisessentiallyapartnershipwithlimitedliability.Itisabodycorporateandhasalegalpersonalityseparatefromthatofitspartners.ThepartnersofanLLPhavelimitedliabilityforthedebtsandobligationsincurredbytheLLP.AnLLPhasperpetualsuccessionandanychangeinthepartnersofanLLPwillnotaffectitsexistence,rightsandliabilities.AnLLPcansueandbesuedinitsownname.Itcanacquire,own,holdanddeveloppropertyandincurdebts.

LIMITed PArTNerSHIPSALimitedPartnership(LP)isnotaseparatelegalentity.AnLPmusthaveatleasttwopartnerswithatleastonegeneralpartnerandonelimitedpartner.AgeneralpartnerisliableforalldebtsandobligationsoftheLPwhilstalimitedpartnerisnotliableforthedebtsandobligationsoftheLPbeyondhisagreedcontribution.LimitedpartnersdonottakepartinthemanagementoftheLPandhavenoauthoritytobindtheLP.

Anindividualoracorporationmaybeageneralpartneroralimitedpartner.

CoMPANIeSAlimitedliabilitycompanyisthemostcommonformofbusinessentityinSingapore.AlimitedcompanyisincorporatedundertheCompaniesAct,Cap.50andregisteredwithACRA.Alimitedcompanymaybelimitedbysharesorlimitedbyguarantee.Acompanymayberegisteredasaprivatecompanyifitdoesnothavemorethan50shareholdersanditsArticlesofAssociationrestricttherighttotransfershares.Otherwise,thecompanymustberegisteredasapubliccompany.

Acompanyisabodycorporateandhasaseparatelegalpersonalityfromitsshareholders.Thecompanycansueandbesuedinitsownname.Itcanownpropertyandincurdebts.Theliabilityoftheshareholders,ifany,islimitedtoanyamountunpaidontheirshares.Whenthesharesarefullypaid-up,theshareholdershavenofurtherliabilitytocontributetowardsthedebtsofthecompany.

JoINT VeNTUreSAjointventuremaytaketheformofequityinvestmentinalimitedliabilitycompany,limitedliabilitypartnershiporgeneralpartnership.Jointventuresaregovernedbythelawsofcompanies,limitedliabilitypartnershipsorgeneralpartnerships,asappropriate.

TYPeS oF BUSINeSS orGANISATIoNS


ForeIGN CoMPANIeSAforeigncompanythatwishestoestablishaplaceofbusinessorcarryonbusinessinSingaporemaysetupabranch.AsubsidiaryisanewlegalentityincorporatedundertheCompaniesAct,Cap.50whilstabranchisanextensionofacompanyincorporatedelsewhere(i.e.theheadoffice).AforeigncompanyorabranchistoberegisteredwithACRAundertheCompaniesAct,Cap.50.

WhetheranoverseascorporationisdeemedtobecarryingonbusinessthroughabranchinSingaporedependsonthenatureoftheactivitiesproposed.TodeterminewhethertheproposedactivitieswillrequiretheregistrationofaSingaporebranch,itisadvisabletoobtainadvicefromprofessionals.

rePreSeNTATIVe oFFICeSAforeigncompanymayestablisharepresentativeofficeinSingaporetoundertakemarketresearchandfeasibilitystudiesonbehalfoftheparentcompany.Arepresentativeofficeisnotpermittedtoengageinbusiness,concludecontracts,andopenornegotiateanylettersofcredit.ApprovalfortheestablishmentofarepresentativeofficemustbeobtainedfromInternationalEnterpriseSingapore.

INCorPorATING A CoMPANYReservationandapprovalofanameforthecompanyisthefirststepintheincorporationprocedure.ThisisdonebysubmittingtheproposedcompanynameandrelevantinformationonlinetotheAccountingandCorporateRegulatoryAuthority(ACRA)togetherwithpaymentoftherequisitefee.

Oncethenameisapproved,theincorporationinformationanddocuments,whenready,canbee-filedwithACRA.Thecompanycancommencebusinessonceitreceivesane-notificationofincorporationfromACRA,usuallyonthesameworkingdayofsuccessfule-filing.AhardcopyofthecertificateofincorporationcanbepurchasedfromACRAforafee.

ASingaporecompanycanbeincorporatedwithaminimumofonedirector,whomustbeanaturalperson.EverycompanymusthaveatleastonedirectorwhoisordinarilyresidentinSingapore.Likewise,acompanycanhaveaminimumofoneshareholderwhomaybeanindividualoracorporateentity.ThereisnorestrictiononforeignequityparticipationinaSingaporecompany.

TheremustbeatleastonecompanysecretarywhoisanaturalpersonandhashisprincipaloronlyplaceofresidenceinSingapore.Thesoledirectorcannot,atthesametime,actasthecompanysecretary.EverycompanymusthavearegisteredofficeinSingaporetowhichcorrespondencemaybesent.

Thepre-incorporationproceduresfortheformationofapubliclimitedcompanyareessentiallysimilartothoseofaprivatelimitedcompany.TheadditionaldocumentstobefiledwithACRAareastatementinlieuofprospectusandastatutorydeclarationofcompliancebythedirectorthatthecompanyhasnotissuedaprospectus.

Inadditiontothee-notificationofincorporation,ACRAwillissueanotificationstatingthatthecompanyisentitledtocommencebusiness.

Apubliccompanyisrequiredtoholdastatutorymeetingwithinaperiodofnotlessthanonemonthandnotmorethanthreemonthsafterthedatewhenthecompanyisentitledtocommencebusiness.Acopyofthestatutoryreportandtheauditorsreport,ifany,mustbelodgedwiththeRegistraratleastsevendaysbeforethedateofthestatutorymeeting.



ANNUAL reQUIreMeNTS For CoMPANIeSEverycompanymustappointoneormoreauditorstoreporttoitsmembersontheaccountsofthecompanyunlessitisdormantorasmallcompany.Adormantcompanyreferstoacompanywithnoaccountingtransactions.

Witheffectfrom3January2016,adormantcompanyisexemptfrompreparingfinancialstatementsif:a. Itisnotlisted(ornotasubsidiaryofalistedcompany);b. Dormantfortheentirefinancialyear;andc. TotalassetsofthecompanymustbelessthanS$500,000.Foraparentcompany,theconsolidatedtotal

assetsofthegroupatanytimewithinthefinancialyearmustnotexceedS$500,000.

Theintroductionofthesmallcompanyconceptiseffectivefromthefinancialyearcommencingonorafter1July2015.Toqualifyasasmallcompany,acompanymustbeaprivatecompanythatfulfilsatleasttwoofthefollowingthreequantitativecriteriaineachoftheimmediatepasttwofinancialyears:

a. TotalannualrevenueofnotmorethanS$10millionb. TotalassetsofnotmorethanS$10millionc. Numberofemployeesofnotmorethan50

Ateachannualgeneralmeeting(AGM)ofthecompany,thedirectorsofthecompanyarerequiredtopresentanauditedorunaudited(asthecasemaybe)setoffinancialstatementsthatgivesatrueandfairviewofthecompanysaffairsintheprecedingfinancialyear.

ThefirstAGMofacompanymustbeheldwithin18monthsfromthedateofitsincorporationandthereafter,subsequentAGMsmustbeheldonceeverycalendaryearandnotmorethan15monthsafterthelastAGM.Theauditedorunauditedaccounts(asthecasemaybe)tobelaidbeforetheshareholdersattheAGMshouldbemadeuptoadatenotmorethansixmonthsbeforethedateoftheAGM.

AprivatecompanymaydispensewiththeholdingofAGMs.AllmatterstobedoneattheAGM,suchaslayingofaccountsandappointmentofauditors,canberesolvedordoneviawrittenresolutions.

Everycompanyisrequiredtofileitsannualreturnincludingwhereapplicable,itsauditedaccountsand/orfinancialstatementsinXBRLformatwithACRAwithin30daysafteritsAGM.

reGISTrATIoN oF A ForeIGN CoMPANYProceduresThefirststepintheregistrationofabranchofaforeigncompanyinSingaporeistoseekACRAsapprovalofthenameofthecorporation.Oncethenameisapproved,theregistrationdocumentsandinformation,whenready,canbee-filedwithACRAtoregistertheSingaporebranchoftheforeigncompany.

UndertherequirementsoftheCompaniesAct,Cap.50,aSingaporebranchmusthaveatleastoneauthorisedrepresentativewhomustbeordinarilyresidentinSingapore.

TheauthorisedrepresentativeofaforeigncompanyisanswerablefortheexecutionofallactsandmattersrequiredtobedonebytheforeigncompanyundertheCompaniesAct,Cap.50.Theauthorisedrepresentativeisalsopersonallyliableforanypenaltiesimposedontheforeigncompanyforanycontravention.



Annual requirements for Foreign CompaniesAforeigncompanyisrequiredtolodgethefollowingdocumentswiththeRegistrar: Financialstatementsmadeuptotheendofitsfinancialyeartogetherwithadeclarationintheprescribedform(i.e.headofficeaccounts);and

AdulyauditedstatementshowingitsassetsusedinandliabilitiesarisingoutofitsoperationsinSingapore,adulyauditedprofit&lossaccountinrespectofitsoperationsinSingaporeandastatementofthenameoftheauditor(i.e.branchaccounts)

ThefinancialstatementsoftheSingaporebranchandthecompany(i.e.headoffice)aretobee-filedwithACRAwithin60daysafterthedateoftheAGMofthecorporation.IfthecompanyisnotrequiredtoholdanAGMinitscountryofincorporationandtoprepareitsbalancesheet,itshalle-filewiththeRegistrar,financialstatementsinsuchformandcontainingsuchparticularsasthedirectorsofthecompanywouldhavebeenrequiredtoprepareorobtainiftheforeigncompanywereapubliccompanyincorporatedinSingapore,withinacertainprescribeddeadline.Thecompanymay,however,applytotheRegistrarinwritingforanorderrelievingtheforeigncompanyfromtherequirementsoftheCompaniesAct,Cap.50relatingtotheformandcontentoftheaccountsorreport.

Inadditiontotheannualfilingrequirements,theSingaporebranchisrequiredtoe-fileanychangesintheparticularsoftheforeigncompanywithACRA,thatis,anychangeofdirectorsandtheirparticulars,changeofcapital,amendmentsofitsconstitutionorchangeofauthorisedrepresentative.

reGISTrATIoN oF A LIMITed LIABILITY PArTNerSHIP (LLP)ToregisteranLLP,thefollowinginformationmustbesubmittedtoACRAelectronically: TheproposednameoftheLLP,itsproposedprincipalactivitiesandregisteredaddress ThenameandpersonalparticularsofeachpartnerandiftheLLPpartnerisacorporateentity,thenameofthecompany,registrationnumber,dateofregistration,registeredoffice,countryofincorporation/registrationandpersonalparticularsoftheauthorisedrepresentative

Thenameandpersonalparticularsoftheresidentmanager

AtleastoneresidentmanagerhastobeappointedandhisroleisprescribedbytheLLPAct.HeisanswerablefortheexecutionofallactsandmattersrequiredtobedonebytheLLPrelatingtoannualdeclarationofsolvency/insolvency,thepublicationofnameandlimitedliability,andtheregistrationofchangesintheparticularsoftheLLP.ThemanagerisalsopersonallyliableforallpenaltiesimposedontheLLPforanycontraventionofthosesectionsundertheLLPActunlesshesatisfiesthecourthearingthematterthatheshouldnotbeliable.Inaddition,themanagerisresponsibleforsubmissionoftheLLPstaxreturntotheInlandRevenueAuthorityofSingapore(IRAS).



CoMPArISoN oF SoLe ProPrIeTorSHIPS, GeNerAL PArTNerSHIPS, LLPs ANd CoMPANIeS

Sole Proprietorships

General Partnerships

LLPs Companies

Legislation BusinessRegistrationAct,Cap.32

BusinessRegistrationAct,Cap.32

LimitedLiabilityPartnershipsAct2005

CompaniesAct,Cap.50

Legalstatus Notalegalperson Notalegalperson Alegalperson(canenterintocontracts,holdproperty,sueandbesuedandexistirrespectiveofchangeofpartners)

Alegalperson(canenterintocontracts,holdproperty,sueandbesuedandexistirrespectiveofchangeofshareholders)

Numberofowners/shareholders

One MinimumTwoMaximum20(exceptforprofessionalfirms)

MinimumTwoNomaximumnumberofpartners

MinimumOnedirectorandoneshareholder(whomaybethesameperson)

Perpetualsuccession

No No Yes Yes

Liabilityofowners/shareholders

Soleproprietorhasunlimitedliabilities

Partnershaveunlimitedliabilities

Notpersonallyliablefortheconductofotherpartners,transactionsorliabilitiesoftheLLPunlessitisforhisownwrongfulactsornegligence

Limitedtheshareholderisnotliableforthedebtsofthecompany

Internalstructure Completeflexibility Completeflexibility Completeflexibility Ownermanagementdivide

Auditedaccountsrequirement

No No No Yes(exceptforexemptprivatecompanywithturnoverlessthanS$5millionordormantcompanyasdefinedintheAct)

Filingoffinancialstatements(and/orfinancialstatementspreparedinXBRLformat)withACRA

No No No Yes(withsomeexceptions)





LLPs Companies

Filingofannualreturn

No No No Yes

Annualdeclarationofsolvency

No No Yes Yesanexemptprivatecompanyneedstoprovidesolvencystatement

CompliancewithFinancialReporting

Standards

No No NoLegislationdoesnotprescribetheaccountingstandardstobeused.TheLLPActmandatesproperrecordkeepingofaccountstoenablethetrueandfairviewofaccountstobepresented

Yes

Appointmentofamanagerwhois

ordinarilyresidentinSingapore

Yes Yes Yes NA

Appointmentofacompany

secretarywhoisordinarilyresidentin

Singapore

NA NA NA Yes

Incometax Wherethesoleproprietorisanindividual,hisincomefromthesoleproprietorshipwillbetaxedbasedonpersonalincometaxrate

Whereapartnerisanindividual,hisshareofincomefromthegeneralpartnershipwillbetaxedbasedonpersonalincometaxrate

Whereapartnerisanindividual,hisshareofincomefromtheLLPwillbetaxedbasedonpersonalincometaxrate

Corporatetaxrateof17%





LLPs Companies

Terminationofbusiness

SimplefileanoticeofterminationofbusinesswithACRAuponpaymentofaprescribedfee

SimplefileanoticeofterminationofbusinesswithACRAuponpaymentofaprescribedfee

Complexmustundergolegalproceduresofwindingup;professionalchargeswillbeincurred;strikeoffapplicationisavailableiftheconditionsstipulatedbyACRAcanbemet

Complexmustundergolegalproceduresofwindingup;professionalchargeswillbeincurred;strikeoffapplicationisavailableiftheconditionsstipulatedbyACRAcanbemet

Note: Information stated in the table above is correct as at the date of publication.

Contributed by:FMG Corporate Services Pte Ltd8WilkieRoad#03-01WilkieEdgeSingapore228095Tel: +6565337600Fax:+6565947855Email:[email protected]:www.FMG.com.sg


mailto:css%40fmg.com.sg%20?subject=http://www.FMG.com.sg


oFFICe SPACeSingaporehasatotalofficespacesupplyof84.41millionsquarefeet,with46%locatedwithintheCentralBusinessDistrict(CBD)precinctthefinancialandcommercialhubofSingapore.Localandforeignbanks,multinationalcorporations,andestablishedprofessionalservicesfirmsareattractedtotheCBDprecinctbecauseofitsestablishedbusinessenvironmentandeasyaccesstopublictransportationandamenities.Apartfromthesekeysectors,technologyfirmshavealsobeenseenexpandingtheirfootprintwithintheCBDinrecentyears.

TomanagecongestionwithintheCBDprecinct,theSingaporegovernmenthasalsoannouncedplanstodevelopalternativebusinesshubsoutsidetheCentralAreasuchastheJurongLakeDistrict,PayaLebarCentralandBuonaVista.Suchbusinesshubslargelycatertocompanieswithdifferentbusinessneeds.

Apartfromconventionalofficespace,firmscanconsiderco-workingcentres2,whichhavebeenseenexpandingaggressivelywithintheCBD,alongOrchardRoadandeventheone-northprecinctinrecentyears.Thesespacesareaffordableoptionsforstart-upstobelocatedclosetopartnersandclientele.Co-workingcentresarealsopopularamongcorporationsthatneedtomanagemultidisciplinaryprojectteamsduetotheirflexibleoccupancytermsandinnovativeenvironments.

Duringyoursearchforofficepremises,youmaywishtotakenoteofthefollowing:

LocationThechoiceoflocationlargelydependsonindividualbusinessobjectives,needsandactivities.Forexample,financialinstitutionsgenerallychoosetostaywithinthefinancialcommunityatRafflesPlaceorMarinaBay,whileinsuranceandshippingcompaniesareclusteredaroundtheTanjongPagararea.

ArisingfromthegovernmentsinitiativetodecentralisethecommercialcentresinSingapore,newbusinessprecinctsarebeginningtodevelopinregionalcentresinrecentyears.TheMetropolis,atwin-towerofficedevelopmentwithintheBuonaVistabusinessprecinct,hasmanagedtoattracthigh-profileestablishedbusinesstenantstosetuptheirbasesthere.Meanwhile,manycompanieshavealsorelocatedtheirback-endoperationstobusinessparksinareassuchasMapletreeBusinessCityandChangiBusinessPark.

Otherconsiderationsincludecustomersexpectations,proximitytosuppliersandlocationofkeycompetitors.

AccessibilityEasyaccessibilitytopublictransport,especiallytrainservices,iscriticalinstaffrecruitmentandretention.Atthesametime,itisimportanttohaveeatingplacesandotheramenitieswithincloseproximitytobusinesslocations.

Building SpecificationsThefacadeofthebuildingisimportantforbusinesseswherecorporateimageiscritical.Thebuildingspowersupplycapacity,airconditioningsystems,internetconnectivity,cablemanagement,securitysystem,carparkprovisions,andotherfeaturesarealsoimportantconsiderations.

1 Statistics of office space as at 2Q 20172 Co-working space is defined as a shared office environment that is not employed exclusively by a single organisation.

BUSINeSS & reSIdeNTIAL PreMISeS


TYPICAL oFFICe LeASe TerMSrentalTherentalrateisusuallyquotedasgrossrent,comprisingabaserentandservicechargepaidmonthlyinadvance.TherentalissubjecttotheGoodsandServicesTax(GST)thatistobebornebythetenant.

Service ChargeTheservicechargerangesfromS$1.00toS$1.40persquarefootandisgenerallyincludedinthegrossrent.Generally,servicechargecoversairconditioningduringnormalofficehours,buildingmanagementandmaintenanceofcommonareasinthebuilding.Thisissubjecttoadjustmentsiftherearechangesinthemaintenancecostandsuchincreasesarepayablebythetenants.

Security depositAsecuritydepositisusuallypayableuponconfirmationoftheleaseandrefundablewithoutinterestattheendofthelease.Thesecuritydepositistypicallyequivalenttothreemonthsgrossrent,orequivalenttosixmonthsgrossrentfortenantswithapaid-upcapitaloflessthansixmonthsgrossrent.Theexactamountissubjecttonegotiation.Abankersguaranteemaybeusedasanalternativetoacashdeposit,subjecttonegotiation.

Lease PeriodTheleaseperiodistypicallythreeyearsorfiveyearswithanoptiontorenewatarenttobeagreedorreviewedaccordingtotheprevailingmarketrate.Formultiplefloortenanciesoranchortenants,longerleasesmaybenegotiated.

InsuranceTenantsarerequiredtotakeuppublicliabilityinsurance.

renovation depositTenantsarerequiredtoplacearenovationdepositwiththelandlordtocoveranydamagescausedtothecommonareasduringtherenovationperiod.Thisdepositisrefundedwithoutinterestuponcompletionoftherenovationworks.

Legal FeeItiscommonpracticethattenantsbearthelandlordslegalcostsinrelationtothepreparation,negotiationandexecutionoftheleasedocument.

Stamp dutyStampdutyisataxoncommercialandlegaldocuments,whichrecordandgiveeffecttotransactions.Itispayablebythetenantsonleases.

Property TaxPropertytaxispayablebythelandlord.However,whenthereisanincreaseinthepropertytaxduringtheleaseterm,landlordsreservetherighttopassontheincreasetotenants.

rent-free and Fitting out PeriodsDependingonthesizeofthepremisesandprevailingmarketconditions,therent-freeandfittingoutperiodcanrangefromonemonthtothreemonths.Mostlandlordswillwaivethepaymentofservicechargeduringthisperiodalthoughtheremaybeexceptions.

UtilitiesTenantsarerequiredtobearthecostofmakingtheirownsupplyarrangementsandutilitiesconnections.



Air ConditioningOfficehoursairconditioningistypicallyprovidedwithintheservicechargewhereasafterofficehoursairconditioningischargeableonausebasis.Tappingthebuildingsairconditioningsystemforauxiliaryairconditioningisalsochargeableonausebasis.Generally,thenormalofficehoursarefrom8amto6pmonweekdaysand8amto1pmonSaturdays.

ParkingSeasonparkinglotsaretypicallyallocatedtotenantsbasedonthetotalarealeasedatamonthlychargeofapproximatelyS$150toS$250forbuildingsoutsidetheCBDandS$300toS$500forbuildingsinsidetheCBD,excludingGoodsandServicesTax(GST).

MaintenanceTenantsaretypicallyresponsiblefortherenovation,repairandcleaningoftheunitsinterior.Thelandlordcarriesoutmaintenanceandrepairsontheexteriorsoftheunit,includingthebuildingprovisionsandcommonareas.

reinstatementTenantsaretypicallyrequiredtorestoreandreinstatetheirofficepremisestoitsbareandoriginalconditionuponexpiryofthelease.

INdUSTrIAL SPACeIndustrialbuildingsinSingaporearecarefullyplannedandlocatedinmajorindustrialestatesspreadacrossthecountry.Itiscommonforindustrialspacesthatcatertocleanindustriestobelocatedinthecentralandfringeareas.Incontrast,industrialspacesthatsupportheavyindustrialusescanbetypicallyfoundintheoutskirtsofSingaporeasaformofpollutioncontrolmeasure.ExamplesofheavyindustrialestatesincludeJurong,whichisthelargestestatesituatedatthewesternpartoftheisland,SenokotothenorthandChangi,whichisneartheairportattheeasternendofSingapore.JurongTownCorporation(JTC)isthemaingovernmentagencyinSingaporetospearheadtheplanning,promotionanddevelopmentoftheindustriallandscape.TheHousing&DevelopmentBoard,whichalsomanagessomeoftheindustrialspacesinSingapore,willtransferitsindustrialportfolioentirelytoJTCbythefirstquarterof2018.

Therearerestrictionsandcovenantsforthetypeofindustrialactivitiesthatcanoperateineachestate.Generally,therearemorerulesandregulationsforindustrialspacescateringtoheavyindustries,comparedwithcleanindustries.Eachlocationhasitsadvantagesdependingonyourspecificneedsandtrade.Aprofessionalpropertyagent,suchasKnightFrank,shouldbeabletoassistyouinyoursiteselection.

TYPICAL INdUSTrIAL LeASe TerMSrentalTherentalrateisusuallyquotedasgrossrent,comprisingabaserentplusservicecharge.Rentispaidmonthly.GSTispayabletoallGST-registeredlandlords.Thebaserentmayvaryaccordingtothetypeofusage,locationandbuildingspecifications.

Service ChargeTheservicechargeusuallyrangesfromS$0.30toS$0.40persquarefootofthegrossrentfornon-airconditionedspacesandapproximatelyS$0.70toS$0.80persquarefootofthegrossrentforairconditionedspaces.Itcoversmanagementandmaintenanceofcommonareasinthebuilding.



Thisissubjecttochangesinthemaintenancefee.Anycostincreaseispayablebythetenant.

Security depositTheamountofsecuritydepositpayabledependsonthetotalleaseterm.Foraone-yearleaseterm,theamountofsecuritydepositwillbeonemonthgrossrent.Foratwo-yearleaseterm,twomonthsofsecuritydepositwillberequired.Insomecases,landlordsmayrequestuptosixmonthsofsecuritydeposit.Thesecuritydepositisrefundablewithoutinterestattheendofthelease,subjecttothetermsandconditionsofthelease.Abankersguaranteemaybeanalternativetocashdeposit,subjecttonegotiation.

Lease PeriodTheleaseperiodisusuallytwoorthreeyearswiththeoptiontorenewforanotheronetothreeyearsbasedonprevailingmarketrates.Forleaseofasizeablearea,landlordsareopentolongerleases,subjecttonegotiation.

Insurance and Fitting out depositThroughoutthedurationofthelease,thetenantwillberequiredtomaintainadequateinsurancecoverageforfireandperilprotection.Thepremiumdiffersfrombuildingtobuilding.

Itisalsocommonpracticefortenantstolodgearenovationdepositwiththelandlordtocoverthecostsofrectifyinganydamagecausedbythecontractortocommonareasofthebuilding.

Thedeposit,afterthedeductionofcostsforrectification(ifany),willberefundedtothetenantuponcompletionoffittingout.

renovation CostsRenovationcostsaredependentontheclientsspecificationsandnatureofbusiness.Theycanvarysignificantlydependingonthenatureoftherenovationworks.However,theaveragerenovationcostsforancillaryofficespaceareasareasfollows: BudgetRange:approximatelyS$60persquarefootarea MediumRange:approximatelyS$80persquarefootarea HighRange:approximatelyS$100persquarefootareaormore

Thesecostscomprisepartitions,falseceilings,airconditioning,simplefurniture,aswellasdesignerandprofessionalconsultantfees.Therenovationperiodmaylastfromtwoweeks(forspaceofabout1,000squarefeet)tothreemonths(forspaceofmorethan10,000squarefeet).

rent-free and Fitting out PeriodDependingonthesizeofthepremisesandprevailingmarketconditions,therent-freeandfittingoutperiodcanrangefromonetothreemonthsandissubjecttonegotiations.

Legal FeeItisadvisableforthetenanttoengagealawyerforadviceonalllegalmatterspertainingtothetenancyagreementandthecostisbornebythetenant.

Property TaxPropertytaxisusuallypayablebythepropertyowner.However,therearecaseswhereitispassedontothetenants.



Stamp dutyStampdutyisachargeleviedonalldocumentsthatareofficiallystampedbythegovernmentauthority.Itisapplicabletodocumentspertainingtotheleaseandnormallybornebythetenants.Thedutypayableisdependentonthesizeoftheleasetransaction.

Sellers Stamp dutyOn11January2013,thegovernmentannouncedthatasellersstampduty(SSD)wouldbeimposedonindustrialpropertiesthatareboughtoracquiredonandafter12January2013andsoldordisposedofwithinthreeyears.TheamountofSSDpayableshallbecomputedbasedonthefollowingrates: Holdingperiodofoneyear:15%ofpriceormarketvalue,whicheverishigher Holdingperiodoftwoyears:10%ofpriceormarketvalue,whicheverishigher Holdingperiodofthreeyears:5%ofpriceormarketvalue,whicheverishigher

Industrialpropertiesacquiredbefore12January2013willnotbesubjecttoSSD.

UtilitiesFixturesforlightingsandwatersupply(ifany)withintheunitaretypicallyprovidedbyowners,butthetenantshallpayfortheutilitychargesofelectricityandwaterconsumedwithintheunit.Thetenantortheinteriordesignerwillberequiredtomakearrangementsfortheconnectionofutilities.Chargesincurredforconnectionandconsumptionarebornebythetenantthroughadirectaccountwiththeutilitiescompany.Utilitiessuchaselectricity,waterandgasareprovidedbySPServices.

TelecommunicationservicesareprovidedbycompaniessuchasSingtel,StarHubandM1.

ParkingSeasonparkinglotsareallocatedtotenantsaccordingtothetotalarealeasedatamonthlyseasonchargeofapproximatelyS$80toS$120formulti-tenantedfactories.Thisappliestostand-alonefactoriestoo.Carscanalsobeparkedinneighbouringbuildingsorpublicmulti-storeycarparks.Curb-sidecouponparkingisalsoavailableincertainareas.

MaintenanceTenantsareresponsiblefortherenovation,repairandcleaningoftheunitsinterior.Maintenanceandrepairstotheexterioroftheunit,suchasthecommonareas,arecarriedoutbytheownersortheManagementCorporation(formulti-ownerbuildings).

reinstatementNormally,reinstatement(orrestoringtheunittoitsoriginalcondition)isrequireduponterminationofthelease.Thisistobediscussedandagreeduponbybothpartiesatthestartofthenegotiationandwillbeindicatedinthetenancyagreement.Itiscommonmarketpracticeforthetenanttorestoretheunittothebare/originalconditionunlessotherwisestated.

Assignment of LeaseAssignmentortransferofleasereferstothetransferofestates,rights,titleandinterestinthepropertyfromtheassignor(seller)totheassignee(buyer).Thispolicyensuresthatindustrialistswhohaveleasedindustriallandbasedontheirproposedbusinessplansremaincommittedforasustainedandreasonableperiodoftime,whilealsoallowinglesseestoexitongroundsofgenuinebusinessreasons.



Third Party Facility Assignment of LeasePreviously,newJTClessees(bothindustrialistsandthird-partyfacilityproviders)werenotallowedtoassignorselltheirpremisesuntiltheyhavefulfilledtheinvestmentperiod,whichistypicallythreeyears.Witheffectfrom15November2013,theAssignmentofLeasepolicywasrevisedtobetterrespondtotherecenttrendsintheindustriallandmarket.TherevisionsintheassignmentprohibitionperiodandminimumoccupationperiodareapplicabletoallnewandrenewedcontractsforJTCfacilitiesonlease,aswellasnewassignmentsissuedfrom15November2013.

Thenewchangesareasfollows:

Assignment Prohibition Period (i.e. duration in which lessee is not allowed to assign)

Third-partyfacilityproviderlesseesinnewthird-partybuild-and-leasecontracts

Duringinvestmentperiodandfiveyearsthereafter

Third-partyfacilityproviderswhohavepurchasedJTCfacilitiesfromthesecondarymarket(i.e.newassignmentcontracts)

Leaseswith30yearsremaining fiveyearsfromdateoflegalcompletionofassignment

Leaseswith>30yearsremaining 10yearsfromdateoflegalcompletionofassignment

Allthird-partyfacilityproviderlessees Leaseswith30yearsremaining 10yearsfromdateoflegalcompletionofassignment

Collectively,tooccupyatleast50%GFAandeachtooccupyminimally1,500squaremetres

Source: Jurong Town Corporation (JTC)



reSIdeNTIAL ACCoMModATIoNTheresidentialmarketinSingaporeisverydiverseandoffersavarietyoflifestyleoptionsrangingfromcityandsuburbanlivingtohigh-risehousingandlandedhomes.Thesepresentmanychoicesthatcatertoyoungworkingprofessionalsaswellasfamilies.

MostcondominiumsinSingaporeareequippedwith24-hoursecurityandfacilitiessuchasgyms,swimmingpools,barbecuepits,andplaygrounds.Landedresidentialpropertiesarealsoavailableforlease,butwillnothavesuchfacilities.Therearenorestrictionsonforeignownershipofcondominiums.However,thepurchaseoflandedpropertiesbyaforeigner(individualorcompany)issubjecttowrittenpermissionfromtheLandDealingsApprovalUnit.

Primeresidentialdistricts9,10and11remainamongthetopchoicesforforeigninvestorsandexpatriatesrelocatedtoSingapore.AttractionsinthesedistrictsincludetheprimeshoppingbeltofOrchardRoad,famousinternationalandlocalschools,aswellasHollandVillageandDempsey,whicharethefavouriteF&Benclavesforbothexpatriatesandlocalsalike.Overtheyears,theMarinaBay,ShentonandTanjongPagarareas,whicharelocatedwithintheCentralBusinessDistrict(CBD),havegrowninpopularitylargelyduetogovernmentinitiativesinenhancingtheattractivenessoftheCBDasalive,workandplayarea.ThelastfewyearsalsosawthecompletionofanumberofluxurycondominiumsandungatedlandedhomessituatedinSentosa,anislandapproximately20minutesdrivefromtheCBD.

ForeIGNerS reNTING A HoMe IN SINGAPoreLease PeriodTheleaseperiodforresidentialunitsinSingaporeisusuallytwoyearswithanoptiontorenew.Therentfortheinitialleasetermisusuallyfixedandwillberenegotiatedatprevailingmarketrateswhentheoptiontorenewisexercised.Leasesforaone-yearperiodareoccasionallyavailable.

Adiplomatic(orbreaklease)clauseisincludedintheleaseandexercisableafter12monthsofatwo-yearlease.Forleaseperiodsofoneyear,landlordsprefernottohaveadiplomaticclausealthoughincertaincases,itispossibletonegotiateforasix-monthdiplomaticclause.Forpre-terminationofthelease,thetenantisrequiredtogivetwomonthsnoticeorpaytwomonthsrentinlieutothelandlord.

rentalTherentalisusuallyquotedasgrossrental,whichcomprisestherent,maintenancefeeandfixtures&fittings.Themarketstandardforprovisionoffixtures&fittingsincludesafullyfittedkitchen(Hood,hob,fridge,washer,dryerandoven.Microwaveanddishwasherareoptional),lights,curtains,wardrobesandawaterheater.Theinclusionofsoftfurnishingsissubjecttonegotiation.RentisusuallypaidonamonthlybasisandtheprevailingGSTrateof7%ispayablebythetenantifthelandlordisGST-registered.

Security depositAgrossrentoftwomonthsispayablebythetenanttothelandlorduponendorsementoftheTenancyAgreement.Thisisrefundable(interest-free)tothetenantuponterminationoftheleaseandsubjecttodueperformanceofthetermsandconditionsoftheleasebythetenant.Abankersguaranteeisnotacceptable.



UtilitiesUtilitycharges,suchaselectricity,waterandgas,arebornebythetenant.TheserviceproviderfortheseutilitiesisSPServices.

Car ParkMostresidentialdevelopmentsprovideforcarparking.However,somemixedresidentialdevelopmentswithretail/officespacemayhavelimitedcarparkingspaceavailableforresidents.

Stamp duty for LeaseStampdutyispayablebythetenant.Witheffectfrom22February2014,thestampdutyforleasewithanaverageannualrentaboveS$1,000haschanged.Detailsofthestampdutyareasfollows:

Before 22 February 2014:

Lease / Tenancy rates

(a)WhereaverageannualrentdoesnotexceedS$1,000 Exempted

(b)WhereaverageannualrentexceedsS$1,000:

ForeveryS$250orpartthereofoftheaverageannualrentforleaseterm:

Uptooneyear S$1

Morethanoneyearanduptothreeyears S$2

Morethanthreeyearsorforanindefiniteterm S$4

Source: Inland Revenue Authority of Singapore (IRAS)

on and after 22 February 2014:

Lease / Tenancy rates

(a)WhereaverageannualrentdoesnotexceedS$1,000 Exempted

(b)WhereaverageannualrentexceedsS$1,000:

Leaseperiodoffouryearsorless0.4%oftotalrentfortheperiodofthelease

Leaseperiodofmorethanfouryearsorforanindefiniteterm0.4%offourtimestheaverageannualrentfortheperiodofthelease

Source: Inland Revenue Authority of Singapore (IRAS)

Legal FeeItisadvisablefortenantstoengagealawyertoadvisethemonalllegalmatterspertainingtothetenancyagreementandthecostisbornebythetenant.



ForeIGNerS PUrCHASING PrIVATe ProPerTY IN SINGAPoreForeign ownership of residential Properties in SingaporePublicHousingFlatsForthepurchaseofpublichousing,certainregulationsexistforforeignhomebuyers.HDBflatsaresubsidisedpublichousingthatforeignersaregenerallynoteligibletopurchase.Thereare,however,exceptionsunderthefollowingcircumstances: TopurchaseanewHDBflat:

AtleastoneSingaporeancitizeninthefamilynucleus Topurchaseaflatontheresalemarket:

AtleastoneSingaporeancitizeninthefamilynucleus AtleasttwoSingaporepermanentresidentsinthefamilynucleus,orengagedtobemarried

TopurchaseECs,foreignersmaybuyresaleECsintheopenmarketfromtheeleventhyearaftercompletionoftheECprojectwhenitisprivatised.

PrivatePropertiesUndertheResidentialPropertyActof1973,aforeignpersoncannotacquireorpurchaserestrictedresidentialpropertyunlessheobtainspriorapprovaloftheMinisterofLaw.Restrictedpropertyincludes: Vacantresidentialland Landedpropertyi.e.detachedland,semi-detachedhouse,terracehouse(includinglinkedhouseortownhouse)

LandedpropertyinstratadevelopmentsthatarenotapprovedcondominiumdevelopmentsunderthePlanningAct

However,aforeignpersonisnotrestrictedfromacquiringthefollowing: Anyapartmentwithinabuilding AnyunitinanapprovedcondominiumdevelopmentunderthePlanningAct Aleaseholdestateinrestrictedresidentialpropertyforatermnotexceedingsevenyears,includinganyfurthertermthatmaybegrantedbywayofanoptionforrenewal

InlightofvariousmeasuresrestrictingforeignersfrompurchasingpropertiesinSingapore,apopularhotspothasemerged:SentosaCove.SinceAugust2004,foreignershavebeenallowedtopurchaselandedpropertiesonSentosaCove.Suchpurchasesarefurtherfacilitatedbytheabsenceofanyminimumoccupationperiodimposedontheforeignbuyer.Nevertheless,suchpurchaseswouldbesubjecttorestrictionsthepropertymustbeowner-occupiedandtheforeignhomebuyerisonlyallowedtoownonerestrictedresidentialpropertyatanyonetimeinSingapore.TheseforeignhomebuyersalsohavetoseekapprovalfromtheLandDealings(Approval)UnitofSingaporeLandAuthorityfortheirSentosaCovepurchases,althoughtheprocessisquickercomparedwithconventionalapprovals.

LoansAsatJune2013,theMonetaryAuthorityofSingapore(MAS)introducedaTotalDebtServicingRatio(TDSR)framework,witharefinementofLoan-to-Value(LTV)ruleson11March2017.ThedebtservicingframeworkappliestoborrowersseekingtotakepropertyloansorcreditfacilitiessecuredbypropertyfromanybankinSingapore.



Thedetailsofthenewframeworkareasfollows:

Framework requirements details

Total debt Servicing ratio (TdSr)

Overview

TheTDSR,givenbytheformulabelow,cannotexceed60%.

MonthlytotaldebtobligationGrossmonthlyincome

Appliestoborrowerswhoareapplyingforcreditorre-financingfacilitiesforthepurchaseofpropertyorwherethefacilityisotherwisesecuredbyproperty

CoverspropertiesinandoutsideofSingapore DoesnotapplytomortgageequitywithdrawalloanswithLoan-to-Value(LTV)ratioequaltoorbelow50%

Monthlytotaldebtobligations

Takeintoconsiderationborrowersoutstandingpropertyandnon-propertydebtobligationswhencomputingmonthlytotaldebtobligations

Applyaspecifiedmedium-terminterestrateof3.5%forhousingloansand4.5%fornon-residentialpropertyloan,ortheprevailingmarketinterestrate,whicheverishigher,tothepropertyloanthattheborrowerisapplyingforwhencalculatingtheTDSR

Grossmonthlyincome

GrossmonthlyincomeexcludingCPFemployercontribution 30%haircutforvariableincome,e.g.bonuses,commissions,allowances,rental

Canincludecertaineligiblefinancialassets,subjecttohaircutsandanamortisationscheduleover48monthsforconversionintoincomestreams

Exemption

Re-financingloanbyborrowerswhoareowneroccupiersand: Theoptiontopurchasewasgrantedpriorto29June2013 Theresidentialpropertyistheonlypropertyownedbytheborrower

Nootheroutstandingpropertyloanintheborrowersname Bridgingloans,underwhichanybalanceoutstandingshallberepaidwithinsixmonths,areexemptedfromtheTDSRrequirements

ExcludemonthlyrepaymentofexistingresidentialpropertyloanswhencomputingtheTDSRfortheHDBflatorexecutivecondominiumtobeboughtdirectlyfromdeveloper

x100%



Framework requirements details

Application of Loan-to-Value Limits

Mortgagorofpropertyloans

Borrowersnamedonapropertyloanarealsotobethemortgagorsoftheresidentialpropertyforwhichtheloanistaken

BorrowersaresubjecttoTDSRassessment

Guarantorofpropertyloans

GuarantorswhoarestandingguaranteeforborrowersotherwiseassessedbyfinancialinstitutionsatthepointofapplicationforthehousingloananddonotmeettheTDSRthresholdforapropertyloanaretobebroughtinasco-borrowers.

Income-weighted

averageageforloantenure

provision

Inthecaseofjointborrowers,theincome-weightedaverageageofborrowerswillbeusedwhenapplyingtherulesonloantenure.

Sources: Monetary Authority of Singapore, Knight Frank Research

Limitations on Loan-to-Value (LTV) ratioInJanuary2013,MASloweredtheLTVlimitsforhousingloanstoindividualswithoneoutstandinghousingloanfrom60%to50%,andfrom60%to40%forindividualswithtwoormoreoutstandinghousingloans.LoanswithlongertenuresfacedeventighterLTVlimits.TheLTVlimitforhousingloanstonon-individualswasalsoreducedto20%.

Interest ratesTherearetwotypesofinterestratesbeingofferedbybanksfloatingratesandfixedrates.

However,banksmayofferamixtureoffloatingandfixedratesfordifferentsituations.Thereisusuallyaminimumloanperiodofthreeyearsi.e.apenaltywillbeimposedonearlyredemption.

Interestratesandmortgagepackagesvaryfrombanktobank.Ifyouarebuyingthepropertyunderacompanysname,theinterestratewillbeapproximately0.5%to1%higherperannum(dependingontheloanamount,marketconditionsandratesofferedbydifferentbanks),comparedwithbuyingunderapersonalname.

Payment TermsPaymenttermsvarywhenpurchasingfromdevelopersorfromprivateindividualownersasshownbelow.

Purchase of Private Properties from Housing developersDevelopersnormallyofferprogressivepaymentschemesfollowingthestagesofconstruction.

Purchase of Private Properties from Individual owners Private Treaty

event Payment to be Made Time Frame for Payment

IssueofOptiontoPurchase Bookingfee,usually1%ofthepurchaseprice

UponissuanceoftheOptiontoPurchase

UponexercisingOptiontoPurchase Deposit,usually4%ofthepurchaseprice

WithintwoweeksfromissuanceofOptiontoPurchase

Completionofpurchase,sellerhandskeysovertopurchaser

Remaining95%ofthepurchaseprice SixtoeightweeksfromthetimetheOptiontoPurchaseisexercised



Stamp duty and Legal FeeFrom12January2013onwards,foreignerswhowanttoacquirearesidentialpropertyinSingaporehavetopayanAdditionalBuyersStampDuty(ABSD)of15%onthehigherofthetotalpurchasepriceormarketvaluation.ThisABSDcomesontopofthestandardBuyersStampDuty(BSD).TheBSDisimposedonthehigherofthetotalpurchasepriceormarketvaluation.AquicksummaryoftheABSDandBSDisshowninthetablebelow:

BSd and ABSd rates for Citizens, Singapore Permanent residents (Prs) and Foreigners

Profile of Buyer BSd ratesABSd rates

(from 12 January 2013)

Foreignerbuyingresidentialproperty

1%ofthefirstS$180,000

2%ofthenextS$180,000

3%oftheremainder

15%

Sing

Documents

Doing Business in Singapore · Doing Business in Singapore GLOBAL VISION ... Companies looking towards Singapore can easily establish their regional or operational headquarters here