Essential Guide To Business Setup In Singapore 2015 Edition

Essential Guide to Business Setup In Singapore

2015 Edition

ACCESSING ASIATHROUGH SINGAPORE

Published by: Strategic Partners:

Essential Guide to Business Setup in Singapore 2015iii

SINGAPORE BUSINESS FEDERATIONCONTENTS

1 - 9 Singapore at a GlanceWhy Singapore

10 - 14 Work in SingaporeBusiness Formations in 2013/2014Common Operating Models in SingaporeInvestment OpportunitiesBusiness Funding

18 - 24 Setting up a Company in SingaporeTypes of Business Organisations AvailableSingapore Incorporated Company Licenses and PermitsThe Business Set up ProcessRegistration of a Foreign CompanyRegistrations of a Limited Liability Partnership (LLP)

25 - 36 TaxationIncome TaxIndividual Tax and Corporate TaxProductivity and Innovation Credit (PIC)Dividend Payment Withholding TaxGoods and Services Tax (GST)Stamp DutyProperty TaxCustoms and Excise DutiesEstate Duty and Gift TaxExchange ControlTax Incentives Overview of International Agreements in Singapore

37 - 40 Business Process Outsourcing (BPO)The Right Step: Business Process Outsourcing

41 - 43 Financial Reporting & AuditingThe Accounting ProfessionRegulation of the Accounting ProfessionsAccounting Records Financial Reporting StandardsCompanies Act Requirements

15 - 17 Live & Play in Singapore

iv Foreword

Terms of use: This guide is for informational purpose only. All information gathered was compiled from sources believed to be reliable. No liability for any error or omission is accepted by Singapore Business Federation (SBF), its strategic partners, affiliates or any of its directors or employees. Readers are encouraged to exercise their own judgement and seek out the latest information where necessary. The services of a competent professional should be engaged if any professional advice or expert assistance is required.

44 - 53 BankingIntroduction of the Financial Landscape in SingaporeSetting up a Business Account in SingaporeRenminbi - Rise with the New Global Currency

54 - 59 LegalSingapore’s Legal FrameworkCompetition ActArbitrationMerger and Acquisitions Dispute Resolution in SingaporeListing in Singapore

60 - 78 Business & ResidentialSpace SolutionsService Office SolutionsVirtual Office SolutionsCommercial Real Estate Solutions Industrial Real Estate Solutions JTC’s Next Generation Industrial Facilities The Difference Between Commercial and IndustrialBusiness Space Solutions in SingaporeOffice Space Solutions in SingaporeResidential Property in Singapore

79 - 83 Branding & MarketingYour Business in AsiaLeveraging on Singapore as a Brand and Communication HubEffective Marketing Channels in Asia:Integration at its Best

84 - 92 Singapore to ASEANLatest ASEAN Developments Invest in ASEAN

93 - 109 Contributors

110 Useful Websites

FOREWORDACCESS ASIA

THROUGH SINGAPORE

Essential Guide to Business Setup in Singapore 2015iv

SINGAPORE BUSINESS FEDERATIONFOREWORD

ACCESSASIA@SINGAPORE was launched in 2013 with the objective of building a unifying brand and ecosystem of local professional services firms to assist foreign companies to access Asian markets through Singapore. SBF is pleased to present the Essential Guide to Business Setup 2015, which provides an overview of the Singapore business environment and useful information on setting up business operations in Singapore.

Asia has over three billion people and a combined GDP of more than US$17 trillion; a significant market for global enterprises looking to tap on the growing opportunities in the region. Singapore will be a strategic starting point for global enterprises seeking business opportunities in Asia.

For the ninth year running, according to the World Bank Report 2014, Singapore has been ranked the easiest place in the world to do business. The city state’s pro-business environment, excellent connectivity and distinction as Asia’s most livable city continue to attract global companies that are considering starting their business operations in the region. In the last quarter of 2014, a new record total of 20,540 new businesses were registered in Singapore. This is a 41.7% increase from the same period in 2013. The British Virgin Islands, Japan, United States and Australia are amongst the top foreign corporate entities that have incorporated companies inSingapore. The steady number of foreign companies registering in Singapore is a testament of the strong business confidence that foreign investors have in Singapore as a regional business hub.

In 2014, ACCESSASIA@SINGAPORE brought together leading Singapore-based professional services companies to provide a one-stop business concierge for global companies looking to set up their business operations here.

We hope this guide will enhance your understanding of Singapore as the preferred business location, as you take your first explorative step towards setting up your business in Singapore and expanding into the region.

Ho Meng KitChief Executive OfficerSingapore Business Federation

Essential Guide to Business Setup in Singapore 2015v

SINGAPORE BUSINESS FEDERATIONABOUT SINGAPORE BUSINESS FEDERATION

The Singapore Business Federation (SBF) was established on 1 April 2002 by the SBF Act. It was inaugurated by then Prime Minister of Singapore, Mr. Goh Chok Tong. Its Council Members and Trustees are leaders of industries from key business sectors in Singapore.

SBF champions the interests of the Singapore business community in trade, investment and industrial relations. It represents 21,500 companies, local and foreign business chambers and key national and industry associations from business sectors that contribute significantly to the Singapore economy.

SBF is recognised both locally and internationally as Singapore’s apex business chamber with a strong commitment to serving the Singapore business community while creating value for its members. It organises and supports more than 400 events and activities each year, benefitting some 70,000 participants. The Federation convenes over 30 out-going business missions and receives more than 100 incoming business and government delegations annually. SBF actively represents Singapore’s businesses in Singapore, and at bilateral, regional, and multilateral platforms.

For more information, please visit www.sbf.org.sg.

The ACCESSASIA@SINGAPORE initiative was launched in 2013 with the objective of building a single platform that brings together professional services partners to provide a one-stop business concierge for Global Enterprises’ speedy and smooth start-up in Singapore. It also functions as a platform to attract and assist companies to expand into Asia through Singapore. The initiative augments EDB’s vision to establish Singapore as the home for global business, innovation and talent.

ACCESSING ASIA THROUGH SINGAPORE

BusinessProcessOutsourceServices

CorporateAdvisory &LegalServices

Office & BusinessSpace

CompanyIncorporation& SecretariatServices

HumanCapital

Business &Management

Consulting

Market Development

BusinessBanking

PROFESSIONAL SERVICES OFFERINGS

One-stop Business Concierge Service

Contact us at [email protected] and take your first big step into Asia through Singapore.

“We get to export our expertise through this platform and gain an extended market to provide our services to.”

- Mr. Ravi ArumugamCEO & Managing Partner of RT LLP

“We have already assisted several Chinese and Indian companies to set up offices in Singapore as a springboard to enter other South-east Asia countries.”

- Ms. Cheryl XuCo-head for China Practice, Dacheng Wong Alliance LLP

SINGAPOREAT A GLANCE

Essential Guide to Business Setup in Singapore 201503

SINGAPORE BUSINESS FEDERATIONSINGAPORE AT A GLANCE

SINGAPORE

TRIVIA

90.1%Home ownership rate in

Singapore

96.4%Literacy rate

Most transparent country in Asia

Global Competitiveness Report2013 - 2014

‘Most liveable city in the world’ for expatriates

ECA International annual survey, 2015

The world’s easiest place to do business

- Doing Business 2014 Report, World Bank

Bilingual Policy:Encourages Singaporeans to be proficient in both the English language, and in their

respective ethnic mother tongues, which include Mandarin, Malay, and Tamil.

82.3Life expectancy (years)

Best IP protection in Asia and second in the World

World Economic Forum’s (WEF) Global Competitiveness Report2014 - 2015

City with the best investment potential

BERIBRS Report, 2013

15.6 Milliontourism arrivals in 2013

151.8%Mobile phone penetration

rate

Most ‘Network ready’ in Asia

Global Competitiveness Report2013

Best place in Asia to be born

Economist Intelligence Unit 2013

581Crime rate per 100,000

population

19Doctors per 10,000

population

3.53Average household size

(persons)

The MerlionSingapore’s national icon created in 1964

More than 2 million trees inurban Singapore



Structure of the Economy in 2014

Ownership of Dwellings, 4.60%

of Nominal VA

Services - ProducingIndustries, 70.40%

of Nominal VA Manufacturing,18.40% of

Nominal VA

Goods-ProducingIndustries, 25.00%

of Nominal VA

Real Growth (%) in 2014

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

Accommodation & Food 1.1

Transportation & Storage 1.7

Wholesale & Retail Trade 1.7

Other Service Industries 2.4

Manufacturing 2.6

Business Services 2.9

Overall GDP Growth 2.9

Construction 3.0

Information & Comms 3.6

Finance & Insurance 7.7

The Singapore Economy

Singapore has a highly developed free market economy with a heavy reliance on exports and trade. Despite its small domestic market and dependence on trade, Singapore has enjoyed robust economic growth with an average growth rate of 6.1% since 2000 and a GDP per capita of S$69,168 (US$55,321) in 2014, one of the highest in the world. In 2014, over 70% of nominal value added was generated by the services industries, while close to 25% was generated by the goods-producing industries1. For the year as a whole, the economy expanded by 2.9 per cent, compared to 4.4 per cent in 2013. All sectors grew in 2014, with the finance & insurance, manufacturing and business services sectors being the key contributors to overall GDP growth.

Key Economic Indicators 2014

GDPS$390.1 Billion

Unemployment Rate2.7%

ExportsS$518.9 Billion

ImportsS$463.8 Billion

CPI (2010=100)117.0

1http://www.singstat.gov.sg/docs/default-source/default/document-library/statistics/visualising_data/GDP-2014.pdf

Source: Ministry of Trade & Industry 2014



Source: Singapore Economic Development Board 2014

AEROSPACE ENGINEERINGNo. 1 in Asia for MROSeletar Aerospace Park: World-class intergrated aerospace parkRecord output of S$8.7B (2012)19,900 employed, 90% skilled

Key players: Rolls Royce, Goodrich Corporation, Pratt & Witney

••

••

ALTERNATIVE ENERGY / CLEAN TECHNOLOGYLeading clean energy hub for the regionPrime location for major solar companies> S$800M of new public sector R&D funding for energy, water, green building

Key players: Bosch, DNV, Vestas Wind Systems, Renewable Energy Corporation

•••

CHEMICALS INDUSTRYSingapore’s position as a global chemicals hub has grown in tandem with the extensive development of Jurong Island - an integrated complex housing many of the world’s leading energy and chemical companies

Key players: Mitsui Chemicals, Clariant

•

CITIES, INFRASTRUCTURE & INDUSTRIAL SOLUTIONSLeading process control hub in Asia Engineering Services industry accounts for about 1.2% of Singapore’s GDP and employs about 37,000 people9 of the world’s top 10 Control & Automation companies already have significant operations here

Key players: Yokogawa Electric Corporation, WorleyParsons

••

•

CONSUMER BUSINESSSingapore possesses excellent global connectivity and a multi-ethnic culture, which provide consumer businesses with the pan-Asian perspective required for business growth in Asia

Key players: Diageo, Kellogg, LVMH, Pokka, Nestle, P&G, Unilever, FrieslandCampin, MJN

•ELECTRONICS INDUSTRY

Major industry underpinning Singapore’s economic growth (25% of the total manufacturing value-add)6 of the world’s top EMS companies have significant presence in Singapore

Key players: Broadcom Corporation, GLOBALFOUNDRIES, Seagate Technology PLC, STMicroeletronics, Stats ChiPACLtd

•

•

ENERGY INDUSTRYAsia’s leading oil trading hubOne of the world’s top three export refining centresWorld’s busiest marine bunkering centre

Key players: PowerSeraya

•••

ENVIRONMENT AND WATERA ‘Global Hydrohub’ with about 130 water companiesPUB, Singapore’s national water agency, won the prestigious Stockholm Industry Water Award at the World Water Week in 2007

Key players: Hyflux, Black & Veatch, GE Water & Process Technologies, Keppel Seghers, Sembcorp Utilities

••

HEALTHCARE INDUSTRYWorld’s 4th best healthcare infrastructureWorld’s 3rd lowest in infant mortality and 7th highest in life expectancy

Key players: IHH Healthcare, Fortis Healthcare International, International SOS

••

LOGISTICS AND SUPPLY CHAIN MANAGEMENTNo. 1 Logistics Hub amongst 155 countries globally in the 2012 Logistics Performance IndexPrime location for major logistics firms, with 20 of the top 25 global logistics players conducting operations here

Key players: DB Schenker, DHL, FedEx, UPS, Gati, YCH Group, Yusen Logistics

•

•

MARINE AND OFFSHORE ENGINEERINGLargest manufacturing of jack-up rigs, and commands 70% of the world marketOwns 70% of the global market for the conversion of Floating Production Storage Offloading units

Key players: BERG Propulsion, Keppel Offshore & Marine, Rolls Royce

•

•

MEDIA AND ENTERTAINMENTThe Broadcast Hub of AsiaConsists of several industries, including TV broadcast and production; publishing and printing; film; music; as well as interactive and digital media

Key players: Lucasfilm, Electronic Arts Inc, Sony Pictures Entertainment, Thomson Reuters

••

INTERNATIONAL NON-PROFIT ORGANISATIONSHome to around 140 International Non-Profit Organisations (INPOs)5 of the world’s top environmental conservation NGOs - WWF, Conservation International, Wildlife Conservation Society, Birdlife International and Fauna & Flora International, have their regional HQs in Singapore

Key players: World Bank Group, WWF, World Vision International, Asian Venture Philanthropy Network, Save the Children, International Air Transport Association

•

•

INFOCOMM SERVICESA global data management hub connected to 15 active submarine cable systems, with a total submarine cable capacity of 114 Tbps and more than 50% of the commercial carrier and carrier neutral data centre space in South East Asia

Key players: Google, TATA Communications, IBM

•INFOCOMM PRODUCTS

Out of 143,000 infocomm industry professionals in Singapore, more than 83% have at least a tertiary education4 of the world’s top 5 Electronics Manufacturing Services (EMS) providers manufacture in Singapore

Key players: HP, Alcatel-Lucent, Samsung Electronics, Bubble Motion

•

•

MEDICAL TECHNOLOGY30 global medical technology companies and local start-ups carry out R&D in technology and product development from SingaporeIn 2011, Singapore’s medical technology sector contributed about S$4.3B in output and about 9,000 jobs

Key players: AB SCIEX, Baxter, Medtronic, Biosensors

•

•

PHARMACEUTICALS AND BIOTECHNOLOGYAsia’s fastest-growing bio-cluster, presenting strategic partnership opportunities with research institutes, corporate labs and public hospitalsMore than 30 of the world’s leading biomedical sciences companies are leveraging Singapore as a key home base to drive innovation

Key players: Abbott, GlaxoSmithKline, Roche, Takeda, Novartis, MSD

•

•

PRECISION ENGINEERINGSingapore’s precision engineering activities began in the 1970s to support the first manufacturing investmentsThere are 2,700 companies ranging from small and medium enterprises (SMEs) to large multinational corporations (MNCs), in the precision engineering sector

Key players: Nanyang Polytechnic, Meiban Group Ltd

•

•

PROFESSIONAL SERVICESA strong base of MNCs from a wide-ranging industries and geographies has established regional or global headquarter functions in Singapore, aggregating sophisticated demand for Professional Services

Key players: Hay Group, Gallup Mercer, Deloitte, KPMG, Norton Rose

•

Focus Industries

Presently, the Economic Development Board (EDB) is targeting to develop the following industries that play vital roles in sustaining the Singapore economy. Singapore has invested heavily in developing these industries to stay abreast of the ever-changing economic landscape.



Emerging Industries

Emphasis has been placed on 6 emerging industries to keep pace and scale for growth.

AUTOMOTIVEAlmost all the major Original Equipment Manufacturers (OEMs) and Tier 1 automotive suppliers use Singapore to oversee their regional operations.

LIFESTYLE PRODUCTS & SERVICESCentrally located in a region of growing affluence, Singapore is a unique gateway to consumers who are increasingly seeking diverse and sophisticated lifestyle products and services. Art, collectibles, performing arts and sports companies are examples of lifestyles businesses that are growing in Singapore.

NATURAL RESOURCESSingapore aims to be a nerve centre that plays a part in fulfilling global demand for these resources, and creates technologies to ensure future sustainability.

SAFETY & SECURITYSingapore is emerging as a thought leader for safety and security in the Asia Pacific region. There are now more that 200 companies in the safety and security industry in Singapore, supplying solutions ranging from biometrics, maritime and aviation security solutions to fire safety.

SINGAPORE: REAL-TIMEThe creation of an interacting city by making available real-time and commercial data in Singapore to be exportable and deployable to other urban cities.

SPACEThe Office for Space Technology and Industry (OSTIn) was established by the Singapore government in August 2012 with the mandate to serve as the designated office to develop Singapore’s space industry.

Source: Singapore Economic Development Board 2014

StableRegulatoryFramework

Strongadvocate offree trade

99% of imports are

duty free

Member ofnumerous

regional FTAs

WorldclassLogistics &

Infrastructure

Good physicalconnectivity tocomplete the

24-hourtrading cycle

2.9%Real GDP

Growth in 2014

“The modest growth outlook (in 2015) is in tandem with the expected pick-up in external demand. Externally-oriented sectors such as manufacturing, wholesale trade and finance and insurance are likely to boost growth.

Some domestically-oriented sectors such as businesses services are expected to remain resilient. However, labour-intensive ones like construction, retail and food services may see their growth weighed down by labour constraints.

Generally, the domestic labour market is expected to remain tight, with low unemployment and rising vacancy rates.”

Ministry of Trade and Industry (MTI), 2014

Trade Performance

Singapore’s total trade rose from S$902 billion in 2010 to S$980 billion in 2013, resulting in the total trade value in 2013 to be 2.65 times its GDP for that same year (Ministry of Trade and Industry). The following diagram shows Singapore’s external trade figures (imports and exports) from 2010 to 2013.

Singapore - A GlobalTrade Hub



1200

1000

800

600

400

200

0

S$Billion Singapore’s import and export indicators at a glance (2014)

Total Value of Exports: S$518.9 Billion

Primary Exports – Commodities: Machinery and Transport equipment, Fuel, Chemicals and Chemical products,

Manufactured goods, F&B, Tobacco, Crude materials, Animal and Vegetable oils

Primary Export Partners: China, Malaysia, Hong Kong, Indonesia, EU, USA

Total Value of Imports: S$463.8 Billion

Primary Imports – Commodities: Machinery and Transport equipment, Crude oil, Chemicals and Chemical products,

Manufactured goods, F&B, Tobacco, Crude materials, Animal and Vegetable oils

Primary Import Partners: China, Malaysia, U.S., South Korea, Japan, Indonesia

Key Trading Partners 2014

S$Billion

14012010080604020

30.2

46.7

48.5

58.4

61.3

72.4

76.7

111.5

117.7

121.5

Thailand

Japan

South Korea

Taiwan

Hong Kong

Indonesia

United States

Malaysia

Europe

China

0

Singapore’s Trade Performance2010 - 2014

Export Import

423

478

2010

514

459

2011

510

474

2012

513

466

2013

464

519

2014

Key Trading Partners

Malaysia, The EU, China, Indonesia and The US continue to be Singapore’s key trading partners. Collectively, they accounted for close to 50% of Singapore’s total trade for 2013 (Singapore Department of Statistics).

Import & Export Trade

Singapore’s trade is Asia and ASEAN focused. Import and export trade with Asia and ASEAN was more than 60% of the total trading value in 2013. This signifies strong trade connectivity between Singapore and the region. Being in the heart of Asia, Singapore is an ideal launch pad to emerging markets such as China, India, and ASEAN.



Total Imports: S$463.8 Billion (2014)

Total Exports: S$518.9 Billion (2014)

ASEAN31.2%

Rest of Asia43%

Africa2.2%

Asia74.2%

Oceania5.7%

Europe8.64%

America9.75%

ASEAN20.6%

Oceania1.50%

Africa0.84%

Asia68.1%

America13.8%

Europe15.7%

Rest of Asia47.5%



Singapore:Best Seaport

in Asiafor 26 years

Connected to

600 portsin the world

1819:Founding ofSingapore

as a free port

140,000Vessel calls

per year

Handled

1.6 millionTEUs ofreefers

Topbunkering port

in the world (>42 million tonnes

of bunkers liftedin 2013)

Handlingcapacity of

40 million TEUsyearly

World’s

busiesttranshipment

hub

Source: Maritime and Port Authority of Singapore, PSA Singapore

SINGAPORE TO BE A GLOBAL MARITIME KNOWLEDGE HUB BY 2025

Singapore is envisioned to be a centre of excellence for maritime research and development (R&D), where the maritime sector can leverage on new initiatives both technically and commercially. This is based on identified global trends in 4 key maritime business sectors: port, shipping, maritime services, and offshore marine & engineering.

Read more at www.news.gov.sg.

Singapore: The International Maritime Centre

Strategically located at the southern tip of Peninsular Asia and at the Straits of Malacca, the Port of Singapore prides itself as one of the world’s major container shipping ports. With connections to more than 600 ports in 120 countries and as the port of call to 130 of the world’s top shipping groups, the Port of Singapore bridges seaborne trade between Asia and the world.

90% of the world’s traded goods are transported by sea and of which, one-seventh of the world’s total container transhipment and 5% of global container throughputs are handled by Singapore’s ports. The Port of Singapore offers unrivalled connectivity to the world and into Asia, with multiple daily sailings to major ports in the 5 continents including ports in China, Hong Kong, Taiwan, Japan, Australia and Africa.

Since Singapore’s founding in 1819, seaborne trade has always played a vital role in Singapore’s economy and will continue to do so in the future. As a leading international maritime centre and home to over 5,000 shipping companies and maritime ancillary service providers, Singapore offers support and incentives for companies interested in setting up a maritime business in Singapore and/or expanding maritime business operations here. Maritime businesses interested in expanding into Singapore can access the Maritime and Port Authority of Singapore (MPA) at www.mpa.gov.sg for more information on support and incentives.

Contributed by: Singapore Business FederationThe Apex Business Chamber

WORK INSINGAPORE

WORK INSINGAPORE


SINGAPORE BUSINESS FEDERATIONWORK IN SINGAPORE

60,140New businesses registered in 2013

77,337New businesses registered in 2014

WORK IN SINGAPORE

Business Formations in 2013/2014

In the absence of strong signs of economic recovery in Europe and the US, Asia is looming large on the radars of investors and enterprises. Singapore’s strategic location on the corridors of the west and east is a big draw for investors and enterprises. It has always been adaptive to changing realities of the global economy by implementing policies that are pragmatic and relevant. Despite Singapore’s lack of natural resources, it has embraced proactive economic policies and fervently reinvented itself to nurture a vibrant ecosystem for enterprise growth.

The attraction of Singapore as an enterprise hub is evident from the phenomenal number of new business formations in Singapore. A total of 60,140 new businesses registered in 2013, whereas 34,879 were registered in the first half of 2014, marking a year-on-year growth of 15.6%. Our preliminary estimates reveal that the total number of registrations for the year, until the end of third quarter, is over 56,000. Thus the number of new business formed this year has already neared the figures for the whole of last year and will soon overshoot. The strong growth in new business formations endorses the attractiveness of Singapore as an enterprise hub.

Formation by Entity Type

Private limited company is the most common type of business entity in Singapore, with over 57% of the new registrations in 2013 falling under this category. The 2014 share for this entity type hovers around the same. Most of the private limited entities are exempt private limited companies (EPC). EPC are private limited companies with no more than 20 individual shareholders and no corporate shareholder, with annual revenue of under S$ 5 million. EPCs are exempted from statutory auditing requirements and are merely required to submit a declaration of solvency.

Sole Proprietorship is the next popular type of entity formed in Singapore. It is easy to set-up and has less compliance but only suitable for less risky businesses. Mostly self-employed persons and small entrepreneurs set-up sole proprietorship. This category with 34% share in 2013 had a sharp rise to 38% in 2014 stimulated by the recent proposal in the parliament for greater government support for owners of sole proprietorships.

Formation by Industry

In 2013 the top three industries in terms of number of company registrations were found to be wholesale trade (20%), financial services (13%), and head offices and management consultancies (10%). In 2014 although the top three industries remain the same, there is a dip in the share of financial services (11%).

Formation by Shareholder Country

In terms of individual shareholders, in line with the convention, Singaporeans, with 74%, dominated the business formation in 2012. Individual shareholders from foreign countries accounted for more than one fourth of the registrations, with the majority being entrepreneurs from China, India and Malaysia. In 2014 the share of business formation by foreign individuals dipped marginally to 24%.

In terms of corporate shareholders, companies from countries like Australia, USA, UK, and Japan have setup subsidiary companies in Singapore. Corporate entities from the British Virgin Islands, with 8%, account for the highest share of companies formed with corporate shareholders. Companies from India, China and Hong Kong are also making a steady inroad into Singapore.

Common Operating Models in Singapore

Singapore is an international business hub. Foreign enterprise and entrepreneurs choose to set-up their business operations in Singapore to leverage on the myriad benefits the city offers by means of an ideal enterprise ecosystem. The common operating models of foreign companies are:

Holding Companies – Dividend income distributed by a Singapore company are not subject to tax in Singapore. In addition there is no tax on capital gains and foreign sourced dividends, branch profits and service income received by a resident company that satisfies the qualifying conditions. Dividends distributed by a Singapore company will also be tax free in the hands of the shareholders. This model can also leverage on the DTA arrangement and foreign tax credits can be pooled.

Finance & Treasury Centres – Besides tax savings this model enables efficient risk management and control. Quality workforce, presence of international financial institutions, DTA network, excellent infrastructure, and a competitive tax regime with significant incentives in the form of reduced tax and waivers are some of the key attractions for such models. The typical activities undertaken by such models are credit management, corporate finance management, derivatives management, research and analysis, business planning, budgeting and control etc.

R&D and IP Management Centres – Singapore supports and promotes research and innovation through various programs. It also provides top-notch facilities and test beds. The IP regime is robust ensuring control and protection of rights, the recent IP related initiatives created a Patent Prosecution Highway (PPH) that will enable businesses to fast-track patent application in partner countries. Companies can write



down IP acquisition cost, claim tax deduction of R&D and IP creation, exit without tax on capital gains and enjoy reduced tax for qualifying projects.

Regional/International Headquarters – It can be structured as a cost centre or profit centre and capitalise on Singapore’s stable operating environment, infrastructure, connectivity and competent workforce to manage the regional or global operations of a company. Some of the activities managed by regional/international HQ are strategic business planning and development, marketing & brand management, R&D, research & analysis, sourcing and distribution, corporate finance management, general administration & management and IP management.

Supply Chain Headquarters – Singapore’s extensive connectivity, geographic location, superior warehousing, logistics and port facilities enable easy connectivity and management of procurement, manufacturing and distribution. It ensures freight savings, quick customs clearance and the privileges of using the Free Trade Agreements (FTA).

Generally foreign companies have the following option for business formation:

Singapore Subsidiary – a locally incorporated company with the foreign parent company as a shareholder. Singapore allows 100% foreign shareholding. The company is entitled to local government incentives and privileges of tax treaties, which satisfies the qualifying conditions. It will be subjected to local corporate tax rates, has a separate legal identity and its liabilities do not impact the foreign parent company.

Branch Office – a locally registered entity that acts as an extension of the foreign parent. Therefore its liabilities are extended to the parent company. The revenue generated locally will be subjected to tax. It will be taxed at the prevailing local tax rate although it is a non-resident for tax purposes.

Representative Office – This type of entity is for the purpose of market research, administrative or liaison purposes only. It cannot engage in revenue generating activities. This entity is a transitory arrangement only because the registration is valid for one year, renewable for up to 3 years maximum; thereafter it must graduate to a subsidiary or branch office to continue its operations here.

Investment Opportunities

Singapore allows 100% foreign ownership and there is no restriction on the repatriation of profits. The city’s strong diplomatic ties, strategic geographic location, wide spanning FTA networks and DTA arrangements with major trading partners and ideal political and operating conditions tick every box on an investor’s checklist. Earlier this year, US-based research institute Business Environment Risk Intelligence (BERI) ranked Singapore first out of 50 major investment destinations. Singapore has consistently topped in many similar international rankings that are highly revered and has held on to its top rank in the World Bank’s Doing Business report for eight straight years. Singapore with its outstanding accolades has several attractive investment opportunities on its menu for the investors. The Economic Development Board (EDB) has several schemes and incentive programmes to promote investments, some of them include Global Investor Programme, International/Regional Headquarter Award and Pioneer Incentive.

Singapore aims to foster a knowledge and innovation driven economy. Besides attracting investments into financial and insurance sector and manufacturing of high-value products and services, it continues to attract investments in capital and knowledge intensive sectors such as biotechnology, clean energy, aerospace and consumer product businesses. These areas may be a playfield for high profile investors and

MNCs. There are ample investment opportunities for SMEs and small entrepreneurs too. Alongside traditional realms of manufacturing and trading, the quaternary sector encompassing research and development, supply chain control tower operation, education, digital media, consulting, corporate support and information technology have bountiful investment opportunities.

The aging Asian population, touted as ‘Silver Tsunami’, calls for a new breed of products and services across all sectors ranging from insurance, healthcare to consumer products and services. ASEAN Economic Community will stimulate inter-regional and intra-regional growth of trade and other economic engagements furthering logistics, transportation and tourism sector. The proliferation of Internet, smart devices, convergence of technology and the diminishing digital divide have opened up opportunities for investments in entertainment, communications and media technology.

Foreign Direct Investments Trends

The total stock of foreign direct investment (FDI) in Singapore amounted to S$746.7 billion as at end 2012. The United States with S$106.5 billion is the top investor followed by Netherlands, British Virgin Islands and Japan. The stock of FDI has more than doubled since 2006, from S$370.5 billion it has grown by 14.5% annually.

Financial and Insurance services sector is the major recipient by drawing 48% of the total FDI stocks and investment holding companies dominated within the sector. Manufacturing and Wholesale & Retail trade are the second and third major beneficiaries of the FDI inflows. Within the manufacturing sector, computer & electronics manufacturing took the lion’s share.

It must be noted that Singapore sustained its top rank for the third consecutive year in Asia Pacific Investment Climate Index for 2014 published by Vriens & Partners, bolstering its attraction for FDI. Singapore has traditionally been the largest recipient of FDI inflow into the ASEAN region and the inflow into the country increased from S$61 billion in 2012 to S$64 billion in 2013.

Singapore’s Direct Investments Abroad

The total stock of FDI abroad by the Singapore’s corporate sector stood at S$462.7 billion as at end 2012. China with S$90.5 billion was the major recipient followed by the United Kingdom, Hong Kong and Australia.

The stock of outbound FDI is the highest into the Financial and Insurance services sector. Manufacturing and Real Estate activities are the second and third major beneficiaries of the FDI inflows respectively.

Singapore’s FDI outflow in 2013 shot up to S$27 billion in 2013 from S$13 billion in 2012. This underscores the growing significance of Singapore as a holding company destination for investments.

Singapore: The Ideal Test Bedding Environment

The social, economic and technological environment is conducive for testing products and services across myriad of sectors including bio-medical, ICT, urban planning, clean technologies etc. Singapore is a microcosm of Asia that facilitates companies to test ideas, innovations, products and services. Singapore reflects most of the urban centres in the world. Also the government encourages and provides generous funding for test-bedding efforts of companies in order to foster a knowledge-based economy as well as to fortify the sustainability of the resource scarce island amidst emerging challenges such as ageing population, congestion and labour shortage. Test bedding is a crucial step towards commercialisation of innovative technologies.



Singapore acts as a living laboratory providing a real world setup for innovations, testing and commercialisation. Some test bed examples are:

CleanTech Park – For test bedding and prototyping of clean technologies and sustainable urban solutions

Jurong Lake District – For test bedding smart technologies

Health and Wellness Programme Office (HWPO) – A platform for healthcare players to work with industry partners from various industries such as IT systems, medical equipment, pharmaceuticals, nutrition and consumer lifestyle to co-develop and test new products, solutions and business models.

Safe City Test Bed – To test solutions for urban management, safety and security

City For All Ages (CFAA) – To test best elder friendly solutions

Cost of Doing Business in Singapore and Asia

Cost of doing business is a key criterion in determining business location. Swanky Singapore may appear less competitive when compared to its Asian neighbours in terms of labour and rental costs. However a closer analysis would reveal that Singapore provides several cost advantages.

The cost of setting up a business is competitive and incorporation typically takes 1-2 days. Companies can be set-up with a paid-up capital of S$1 and the licenses and permits for nearly all businesses can be obtained within weeks, if all papers are in order. Thus the preoperative expenses of business are low and they can quickly start making revenue.

Singapore is an open economy with zero duty on almost all goods excluding some goods of strategic and sensitive nature. All supply materials can be imported hassle free and at lower price effectively. The tariff savings ensured by Singapore’s extensive FTA improves the tax competitiveness of Singapore exporters also enabling preferential access to select sectors and faster access to markets. Newly setup companies also enjoy tax savings as they are entitled to tax exemptions on the first S$300,000 of their taxable income for each of their first three tax filing years. Most companies are exempt companies therefore cost associated with compliance is also low. Companies will further benefit from sector specific tax incentives.

Singapore’s scores may drop when it comes to labour, the tightening of qualifying criteria for work passes and increased levy to curtail foreign workforce is a pinch on the profits of business operators whose businesses are labour intensive. Asian neighbours with cheap labour may score ahead of Singapore, however government has come to the aid of the business community with schemes such as Productivity and Innovation Credit that aims to enhance productivity and reduce reliance on labour through automation and technology adoption. Such initiatives will progressively bring cost benefits to companies.

Likewise high rentals in Singapore against the Asian counterparts affects the profitability of companies, although there is room for improvement in this front, it must be noted that Singapore provides excellent infrastructure in the form of good roads, transportation facilities, uninterrupted water and power supply, high-speed internet, online government service etc. facilitating efficient operations and productivity enhancements. These factors indirectly set the scale in balance.

Contributed by: Hawksford Singapore Pte Ltd Singapore's Leading Incorporation, Immigration,

Accounting and Fiduciary Services Firm



• The lead government agency in attracting investments, growing industry verticals and enhancing Singapore’s business environment.

www.edb.gov.sg

EDB

• The government agency that drives the overseas growth of Singapore-based companies and promotes international trade

www.iesingapore.gov.sg

IE Singapore

SPRING Singapore

The enterprise development agency that helps Singapore enterprises growBuilds trust in Singapore’s products and services

www.spring.gov.sg

•

•

Business Funding

Starting up a business in Singapore requires risk taking and capital input. Funding and investment opportunities from the government are available for corporations and SMEs to nurture and grow their businesses in Singapore. These schemes are administered by several government agencies to assist companies in different stages of their businesses. The three key agencies under the Ministry of Trade and Industry are: Singapore Economic Development Board (EDB), International Enterprise Singapore (IE Singapore), and SPRING Singapore.

The schemes are broadly categorised into Loans, Grants, Tax Incentives, Equity Financing and Non-Financial Assistance. There are more than 15 different categories of incentives and grants available for businesses expanding into Singapore. These incentives and grants include the Research Incentive Scheme for Companies (RISC), International/ Regional Headquarters Award, Mergers & Acquisitions Scheme and Land Productivity Grants. More information can be found at their respective websites.

EDB Investments (EDBI)www.edbi.com

EDBI is the corporate investment arm of Singapore’s Economic Development Board. As a strategic investment firm with worldwide presence, EDBI aims to be a value-adding investor for companies looking for growth opportunities within the knowledge and innovation-intensive sectors of Biomedical Services, Clean Technologies, Internet & Digital Media and other strategic industrial clusters with commercial potential. Companies can leverage on EDBI’s resource and experience to expand into Asia and the world through operations in Singapore.

SPRING Start-up Enterprise Development Scheme (SPRING SEEDS)www.spring.gov.sg/entrepreneurship

SPRING SEEDS provides an equity-based co-financing option for Singapore-based start-ups with strong growth potential across international markets through innovative products and/or processes with intellectual content. Start-ups must be incorporated as a Private Limited company for less than 5 years with a paid-up capital between S$50,000 to S$1 million.

Infocomm Business & Engineering Start-up Programme (iBEST) www.infocomminvestments.com

The Infocomm Development Authority of Singapore (IDA) is a statutory board promoting Singapore as a key entrepreneurial and innovation hub for global venture capital (VC)-backed information and communications technology (ICT) start-ups. IDA’s iBEST programme provides development support for ICT enterprises to establish new engineering centres in Singapore, and use Singapore as a launch pad to gain market traction in Asia.

LIVE & PLAYIN SINGAPORE

Snapshot: Average Cost of Living in Singapore (2013 - 2014)

S$1.60Single bus journey or MRT

S$3.30Starting price

for taxis

S$4 - S$6Food prices at hawker centres

S$12Pack of cigarettes

S$3,620Monthly residential

housing rental(3BR outside city centre)

S$135,988Price of a newToyota Corolla

S$130Monthly fee for

fitness clubsper adult

S$600 - S$1,000Monthly cost of keeping a live-in domestic helper

S$40Consultation fee at ageneral practitioner

S$35 - S$100Monthly mobile subscription fee

S$1,000 -S$3,000+

Monthly internationalschool fee

S$500 - S$1,500Monthly full day

childcare services

S$5.50640 ml bottle of beer

S$246 - S$772Monthly local school fee

from primary tojunior college

Read more at www.guidemesingapore.com

LIVE & PLAYIN SINGAPORE


SINGAPORE BUSINESS FEDERATIONLIVE & PLAY IN SINGAPORE


SINGAPORE BUSINESS FEDERATIONLIVE & PLAY IN SINGAPORE

Singapore’s 2nd integrated resort located onthe sourthern island of Sentosa

Resorts World Sentosa Singapore

World’s largest oceanarium

Marine Life Park

World’s largest observation wheel

Singapore Flyer

Houses the 8.6 metres high merlion statue

Merlion Park

Luxury hotel, state-of-the-art convention and exhibition facilities, theatres, and some of the best shopping and dining in

the region

Marina Bay Sands

Top 10 Indoor Gardens of the World

Gardens By The Bay

Learn more about the culture andhistory of Singapore

Images of Singapore

A tropical botanical garden of international renownedflora and fauna

Singapore Botanic Gardens

Culture

Singapore is home to a multicultural population that comprises the Chinese (74.2%), Malays (13.3%), Indians (9.2%), and Eurasians (3.3%). Singapore has adopted one representative language for each of the four major ethnic groups: English, Mandarin, Malay, and Tamil. Malay is the national language of Singapore while English is the common language used and the medium of instruction in schools.

The presence of the varieties of Malay and Mandarin dialects has resulted in an influence over the type of English used in Singapore. Commonly known as ‘Singlish’, this informal English has evolved into a badge of identity for many Singaporeans as it includes words from Malay, Mandarin and Indian languages.

Source: www.yoursingapore.com

Tourism and Recreation

Singapore may be well-known for its economic success but not many are aware of the country’s attractiveness as a place of enjoyment, recreation, and relaxation. Under the façade of a dull and uptight city-state lies one of Asia’s best shopping areas, nightlife hotspots, and tourist attractions.

Read more at www.yoursingapore.com

Singapore Cuisine

Singapore is a food paradise, and Singaporean food is the embodiment of the country’s multiculturalism. Centuries of cultural interaction has made Singaporean cuisine an amalgamation of culinary expertise from the Malay, Chinese, Indian, Peranakan, and Western societies. There are about 6,500 food establishments spanning across the small city-state.


SETTING UPA COMPANY

IN SINGAPORE

SETTING UP A COMPANYIN SINGAPORE


SINGAPORE BUSINESS FEDERATIONSETTING UP A COMPANY IN SINGAPORE

SETTING UP A COMPANY IN SINGAPORE

Types of Business Organisations Available

Business activities may be carried out through a Singapore incorporated company, a branch registered under the Singapore Companies Act, sole proprietorship, partnership, limited liability partnership or limited partnership.

A foreign company may also function in Singapore by establishing a Representative Office.

Singapore Incorporated Company

A Singapore incorporated company is a separate legal entity created under the Companies Act and is independent of its Directors and Shareholders. It is able to own properties, enter contracts, sue and to be sued in its own name. It is also perpetual.

The company may be limited by shares, limited by guarantee or an unlimited company.

Typically, the limited company with share capital is the type of company contemplated by a foreigner interested in investing in Singapore. Such a company may be either a public company or a private company.

Public Company (LTD.)

There are 2 types of public companies in Singapore. The first generally being one which desires to raise capital from the public. It includes all those companies whose shares are listed on the Singapore Exchange Limited (SGX), either on the main board or the secondary board known as Catalist. A company with more than 50 shareholders is a public company even if its shares are not listed on the SGX.

The other type of public company is the company limited by guarantee. It is commonly used by charities or to serve other national or public interests for e.g. not-for-profit organisations.

Private Company (PTE. LTD.)

A private company may be distinguished from a public company by its name which contains the word “Private” (abbreviated to be “Pte.”) or “Sendirian” (a word in Malay and abbreviated to be “Sdn.”).

A private company is a locally incorporated company where the number of shareholders is limited to 50.

The liabilities of the shareholders in respect of its debts or the contribution of assets upon winding up is limited to the amounts they have committed to. It is similar in this nature to the Companies with Limited Liabilities “abbreviated to be LLC”.

A private company may be exempted from audit if the number of shareholders is 20 or below with no beneficial interest being held by another corporation and the revenue is less than S$5 million for the financial year. These companies are known as “Exempted Private Companies” or “EPC”.

Branch

A foreign company which intends to carry on business in Singapore but which does not wish to incorporate a Singapore company may register a branch under the Companies Act with the Accounting and Corporate Regulatory Authority “ACRA”. A branch is classified as a foreign company as it is treated as an extension of the latter. The registration must be completed before the branch commences business.

There must be at least two agents (being natural persons resident in Singapore) who are duly appointed by the company (i.e. head office) by way of a memorandum of appointment.

A foreign company is required to file with ACRA audited Singapore branch accounts and its own audited accounts within two months of the company’s annual general meeting being held. Both sets of accounts are available for inspection by the public on payment of a small fee.

Sole Proprietorship or Partnership

These are the simplest forms of business organisation and are usually more suitable for small-scale businesses. Both the sole proprietor and the partners are subject to unlimited liability with regard to the debts of the business.

Any person who is carrying on business in Singapore either as a sole proprietor or in partnership is required to register with ACRA. However, some forms of businesses, which are carried out by professionals such as architects, engineers and doctors, are instead required to register with their respective professional bodies. If the sole proprietor or every partner of a business firm resides outside Singapore, the business must appoint a Local Manager who is a Singapore citizen, a Singapore permanent resident or a valid employment pass holder.

Limited Liability Partnership (LLP)

An LLP gives the owners the flexibility of operating as a partnership whilst giving them limited liability. It combines the benefits of a partnership with those of private limited companies.

The LLP is a body corporate and has a legal personality separate from its partners. The LLP has perpetual succession. Any change in the partners of a LLP shall not affect its existence, rights or liabilities.

The partners of the LLP will not be held personally liable for any business debts incurred by the LLP. However, a partner may be held personally liable for claims from losses resulting from his own wrongful act or omission. That said, a partner shall not be personally liable for such wrongful acts or omissions by any other partner of the LLP.

An LLP is required to keep accounting and other records which sufficiently explain the transactions and financial position of the LLP.

It is compulsory for an LLP to appoint at least one Local Manager regardless of whether the Partners reside in Singapore.



Limited Partnership (LP)

The LP is different from the LLP as it does not have a separate legal personality from its partners. There is at least one General Partner who is personally liable for the business debts of the LP and one Limited Partner whose liabilities are limited to the agreed contribution. The LP is not perpetual as the registration must be renewed annually. In addition, the LP will be suspended if there is no limited Partner.

If the General Partner resides outside Singapore, the LP needs to appoint a Local Manager.

Representative Office

A foreign office may establish a presence in Singapore by setting up a representative office. The registration of a representative office should be considered when a foreign company wishes to test the business environment in Singapore before making investment decisions. It must confine its activities to market research, feasibility studies, promotional and liaison work on behalf of the parent company.

A representative office is prohibited from carrying on a business in Singapore, as technically it has no legal corporate status in Singapore. Approval for the establishment of a representative office must be obtained from International Enterprise (IE) Singapore.

The approval is valid for one (1) year and renewable up to a maximum of three (3) years.

Should the foreign company decide to establish a permanent legal entity in Singapore, it can register a subsidiary company or a branch.

Note: Representative Offices in banking and insurance need to register with the Monetary Authority of Singapore (MAS) and meet the guidelines and requirements stated.

Upgrading of a Representative Office

Incorporating a private company in Singapore is a simple and quick process completed online with ACRA.

An application must first be made to the Accounting & Corporate Regulatory Authority (ACRA) for the approval of the proposed company’s name. A private company must have the word “Private” as part of its name, inserted immediately before the word “Limited” or abbreviation thereof. A proposed company name will not be approved if it is identical to or resembles the name of an existing entity. Undesirable names will also not be approved.

The minimum required paid-up capital when registering a Singapore company is S$1. The concept of authorised capital is no longer valid.

Furthermore, the company should have a minimum of 1 director and 1 shareholder. At least one director must be a local resident director (Singapore citizen, permanent resident, or Employment Pass holder) who is a natural person and above 18 years of age. There is no restriction on 100% foreign ownership and the shareholders can also be natural persons.

Every company must appoint a secretary within six months from the date of incorporation. The secretary must be a natural person whose principal place of residence is Singapore, A private company may appoint a non-qualified secretary as long as the directors are confident that the appointed secretary has reasonable knowledge of the

regulations. The secretary of a public company must be qualified (i.e. accountant, lawyer or chartered secretary).

Every company must appoint auditors within three months of the date of incorporation, unless exempt from audit requirements, and every company must have a registered office in Singapore.

The following table offers a broad comparison of branch vs. subsidiary.



Entity Name

Branch Subsidiary (Company)

Allowed Activities

Min. Setup Requirement

Limited Liability

Registered Office Yes Yes

Secretary No Yes

Not for the Parent Company Yes; separate legal entity from Holding Company

AuditorYes Yes if there is any element of corporate

shareholding or if revenue exceeds S$5 million

2 local agents 1 shareholder1 resident director

As per the activities of the parent company Can conduct any business activity as it deems profitable

Identical to the Parent company’s name with a suitable suffix – ABC SINGAPORE BRANCH / ABC BRANCH OFFICE SINGAPORE

As per the shareholders’ preference. It can be identical, similar or entirely different

Annual Filing

To file audited branch acounts and Parent company’s Audit Report / Balance Sheet and P&L within 2 months of Parent Company’s AGM or within 7 months’ of Financial Year End

To file the audited financial statements except for EPC. AGM to be held within 6 months after Financial Year End and not more than 18 months after the date of incorporation. This also applies to EPC.

Licenses and Permits

There is no restriction on the types of business that may be undertaken as long as the proposed activities do not contravene the law. However, there are some activities that require special licenses from the government agency responsible for regulating these specific industries. Examples of these activities include construction, operation of hotels, shipping, employment agencies, banks, finance companies, insurance, stock-broking companies, fund management companies and private schools.

Special import licences are also required for goods that the government categorises as being a threat to health, security, safety or social decency.

The licence application process can begin after incorporation of a company or registration of a branch. Applications usually take between two weeks and two months depending on the type of license.

The government has created a common online portal for the application of the various licences and permits - Online Business Licensing Service (OBLS) – to make the process easy for new businesses.

Contributed by: MazarsAn international and integrated organisation specialising

in audit, accountancy, tax, advisory and legal services



The Business Setup Process

Incorporating a Company

Reservation and approval of a name for the company is the first step in the incorporation procedure. This is done by submitting the proposed company name and relevant information online at ACRA’s BizFile website together with payment of the requisite fee.

Once the name is approved, the incorporation information and documents, when ready, can be e-filed with ACRA. The company can commence business once it receives an e-notification of incorporation from ACRA, usually on the same working day of successful e-filing. A hard copy of the certificate of incorporation can be purchased from ACRA for a fee.

A Singapore company can be incorporated with a minimum of one director who must be a natural person of full age* and capacity. If the company has only one director, that director must be ordinarily resident in Singapore. If the Singapore company has more than one director, a minimum of one director needs to be ordinarily resident in Singapore. Likewise, a company needs to have only one shareholder who may be an individual or a corporate entity. There is no restriction on foreign equity participation in a Singapore company. There must be at least one company secretary who is a natural person and has his principal or only place of residence in Singapore. The sole director cannot, at the same time, act as the company secretary. Every company must have a registered office in Singapore to which correspondences may be sent.

The pre-incorporation procedures for the formation of a public limited company are essentially similar to those of a private limited company. The additional documents to be filed with ACRA are a statement in lieu of prospectus and a statutory declaration of compliance by the director that the company has not issued a prospectus.

In addition to the e-notification of incorporation, ACRA will issue a notification stating that the company is entitled to commence business.

*With effect from 1 March 2009, the minimum age to be a director of a company has been lowered from 21 years of age to 18. A person who is 18 years of age and above can also register a business name and form companies or limited liability partnerships.

A public company is required to hold a statutory meeting within a period of not less than one month and not more than three months after the date when the company is entitled to commence business. A copy of the statutory report and the auditors’ report, if any, must be lodged with ACRA at least seven days before the date of the statutory meeting.

Annual Requirements for Companies

Every company must appoint one or more auditors to report to its members on the accounts of the company unless it is dormant or a small exempt private company (EPC). A dormant company refers to a company with no accounting transactions. An EPC is one in which the company has not more than 20 shareholders and none of its shareholders is a corporate entity.

A small EPC is an EPC whose annual revenue does not exceed the prescribed threshold as follows: • Financial year commencing on or after 15 May 2003 with revenue of less than S$2.5 million; or • Financial year commencing on or after 1 June 2004 with revenue of less than S$5 million.

The statutory audit requirement is removed for dormant companies and small EPCs with financial years commencing on or after 15 May 2003. However, these companies are still required to prepare their financial statements in accordance with the Singapore Financial Reporting Standards.

At each annual general meeting (AGM) of the company, the directors of the company are required to present an audited or unaudited (as the case may be) set of financial statements that gives a true and fair view of the company’s affairs in the preceding financial year.

The first AGM of a company must be held within 18 months from the date of its incorporation and thereafter, subsequent AGMs must be held once every calendar year and not more than 15 months after the last AGM. The audited or unaudited accounts (as the case may be) to be laid before the shareholders at the AGM should be made up to a date not more than six months before the date of the AGM.

A private company may dispense with the holding of AGMs. All matters to be done at the AGM, such as laying of accounts and appointment of auditors, can be resolved or done via written resolutions.

Every company is required to file its annual return including where applicable, its audited accounts and/or financial statements in XBRL format with ACRA within one month from the date of holding its AGM.

Registration of a Foreign Company

Procedures

The first step in the registration of a foreign company in Singapore is to seek ACRA’s approval of the name of the corporation. Once the name is approved, the registration papers and information, when ready, can be e-filed with ACRA for the registration of the foreign company.

The following documents must be submitted for registration: • A certified copy of the corporation’s certificate of incorporation in its place of incorporation or origin, or a document of similar effect. • A certified copy of the corporation’s certificate of change of name or a document of similar effect (if applicable). • A certified copy of its charter, statutes, or memorandum and articles of association or other instrument constituting or defining its structure. • A list of its directors stating their names, residential addresses, nationalities, passport numbers, occupations and dates of appointment as directors. • A memorandum of appointment of agents together with an affidavit. There must be at least two agents who must be natural persons resident in Singapore. • Notice of the location of the corporation’s registered office in Singapore to which all communication and notices may be addressed.

The agent of a foreign company is answerable for the execution of all acts and matters required to be done by the foreign company under the Companies Act, Cap. 50. The agent is also personally liable for any penalties imposed on the foreign company for any contravention.



Annual Requirements for Foreign Companies

A foreign company is required to lodge the following documents with the Registrar: • A copy of its balance sheet and such accompanying documents as required to be prepared by the foreign company (i.e. head office accounts); and • A duly audited statement showing its assets used in and liabilities arising out of its operations in Singapore and a duly audited profit & loss account in respect of its operations in Singapore (i.e. branch accounts)

The financial statements of the branch and the company (i.e. head office) are to be e-filed with ACRA within two months from the date of the AGM of the corporation. If the company is not required to hold an AGM in its country of incorporation and to prepare its balance sheet, it shall e-file with the Registrar a balance sheet (in such form and containing such particulars and annexed thereto such documents) as if it were a public company incorporated in Singapore within seven months from the date of its financial year end. The company may, however, apply to the Registrar in writing for an order relieving the foreign company from the requirements of the Companies Act, Cap. 50 relating to the form and content of the accounts or report.

In addition to the annual filing requirements, the branch is required to e-file any changes in the particulars of the foreign company with ACRA, that is, any change of directors and their particulars, change of capital, amendments of its constitution or change of local agent.

Registration of a Limited Liability Partnership (LLP)

To register an LLP, the following information must be submitted to ACRA electronically: • The proposed name of the LLP, its proposed principal activities and registered address. • The name and personal particulars of each partner and if the LLP partner is a corporate entity, the name of the company, registration number, date of registration, registered office, country of incorporation / registration and personal particulars of the authorised representative. • The name and personal particulars of the resident manager.

At least one resident manager has to be appointed and his role is prescribed by the LLP Act. He is answerable for the execution of all acts and matters required to be done by the LLP relating to annual declaration of solvency/insolvency, the publication of name and limited liability, and the registration of changes in the particulars of the LLP. The manager is also personally liable for all penalties imposed on the LLP for any contravention of those sections under the LLP Act unless he satisfies the court hearing the matter that he should not be liable. In addition, the manager is responsible for submission of the LLP’s tax return to the Inland Revenue Authority of Singapore (IRAS).

Note: The Companies (Amendment) Bill was passed in Parliament on 8 October 2014. The amendments in the Companies (Amendment) Bill are expected to come into operation in the second quarter of 2015. Please refer to http://statutes.agc.gov.sg for the latest amendments to the Companies Act when they come into force.

Contributed by: FMG Corporate Services Pte LtdManaging Your Compliance Globally

TAXATIONIN SINGAPORE

TAXATIONIN SINGAPORE


SINGAPORE BUSINESS FEDERATIONTAXATION IN SINGAPORE

Income from 1 January 2013to 31 December 2013

Assessable for taxation inyear of assessment 2014

Income from 1 October 2012to 30 September 2013

Assessable for taxation inyear of assessment 2014

TAXATION IN SINGAPOREThe major types of taxes that affect businesses and companies in Singapore are income tax, goods and services tax, stamp duty, property tax and customs and excise duties. Singapore has no capital gains tax.

The Inland Revenue Authority of Singapore (IRAS) acts on behalf of the Singapore government and its roles are shown in the following diagram:

AdministerTaxes

EnforceTaxes

Represent Singapore onInternational Tax Matterse.g. Tax Treaty Negotiations

AssessTaxes

CollectTaxes

Inland Revenue Authority of Singapore

Income accruing in or derived from Singapore, or received in Singapore from outside Singapore, is subject to income tax in Singapore unless the income is specifically exempt from tax. The types of income subject to tax include income from trade, business, profession or vocation, employment, dividends, interest, rentals, royalties and other gains or profits that are of an income nature.

For taxation purpose, income is assessed on a preceding calendar year basis as follows:

However, companies whose accounts are made up to a date other than December 31 are permitted to adopt the financial year end as their basis period as illustrated in the following example:

There are differences in income tax treatment between a tax resident and a non-tax resident of Singapore. A tax-resident individual is one who is physically present or exercising employment in Singapore (other than a company director) for 183 days or more during the calendar year preceding the year of assessment, or who resides in Singapore except for temporary absences from Singapore that are reasonable and consistent with a residency claim on the grounds of qualitative factors such as a domicile or family present in Singapore. A company is a tax resident in Singapore if control and management of its business are exercised in Singapore. The place of incorporation is irrelevant for the purpose of determining tax residency.

The major advantage of being considered a tax resident of Singapore is the ability to enjoy tax treaty benefits accorded in more than 70 comprehensive double taxation agreements that Singapore has with various countries around the world. Typical tax treaty benefits include reduction of withholding tax rates in respect of dividend, interest and royalty payments to non-residents and the ability to avoid double taxation on cross-border income via the claim for total tax exemption or foreign tax credit relief. Also, certain tax-exemption claims are only accorded to Singapore tax residents such as the exemption of specified foreign-sourced income (e.g. dividends) received in Singapore if the stipulated conditions are met.

Income Tax



Individual Tax and Corporate Tax

Individual Tax

Individuals, regardless of their resident status, are subject to individual income tax on income accruing in or derived from Singapore. On the other hand, individuals’ foreign-sourced incomes are only taxable if the incomes are received in Singapore by residents through a partnership in Singapore.

Business Income

Profits of trades, businesses or professions operating through sole proprietorships, partnerships or limited liability partnerships are not subject to tax at the entity level, but are subject to tax in the hands of the sole proprietors or partners. If the sole proprietor or partner is an individual, the profits from the sole proprietorship, partnership or limited liability partnership will be subject to personal income tax, but if the business structure takes the form of a limited liability company, the profits will be subject to corporate income tax.

Expense Deductions

Revenue expenses that are wholly and exclusively incurred in the production of income are generally tax deductible, unless specifically disallowed under the Singapore Income Tax Act (“SITA”). Capital allowances on qualifying expenditures incurred on fixed assets used for the purposes of the taxpayer’s trade, business or profession may be claimed.

Losses Transferred and Carried Back

Individuals can transfer their unutilised trade losses, capital allowances and donations as well as rental losses to offset against their spouses’ taxable income for the year in question. The current year’s unutilised trade losses and capital allowances may also be carried back by the individuals to offset against their own income for the immediate preceding year of assessment, up to a maximum of S$100,000.

Notwithstanding, it was announced in Budget 2014 that to simplify the individual income tax system, married couples can no longer transfer qualifying tax losses between each other (including under the loss carry-back scheme) with effect from YA 2016. As a transitional concession, qualifying tax losses incurred by a married couple in and before YA 2015 will still be allowed for inter-spousal transfers up till YA 2017, subject to existing rules.

Employment Income

Employment income is deemed sourced in Singapore if the employment is exercised in Singapore.

Salaries, wages, leave pay, commissions, bonus, gratuity, pension, perquisites or allowances paid or granted, whether in money or otherwise, in respect of the employment exercised in Singapore, are generally subject to tax in Singapore.

Benefits-in-kind (i.e. benefits provided in lieu of cash) provided by employers are taxable in the hands of the employees unless they are specifically exempt from tax or covered by the administrative concessions granted by the IRAS. Fringe benefits such as education allowance, provision of accommodation, home leave passage and cars, long-service awards, and overseas pension contributions are generally taxable.

In respect of housing benefits, if a cash allowance is paid to the employee to meet his housing cost, the full allowance is considered a taxable income. But if the employer provides a furnished accommodation to the employee, the assessable benefit is computed

based on certain prescribed formulas/rates. With effect from the year of assessment 2015, the housing benefits provided in a place of residence or serviced apartments not within a hotel building will generally be taxed based on the annual value of the rented property.

An employee can claim certain revenue expenses — such as subscriptions to a professional body as well as travelling and entertainment expenses — that are incurred in the course of exercising his employment for tax deduction against his employment income. The onus is on the employee to prove to the satisfaction of the IRAS that the expenses in question are necessarily incurred in the discharge of his employment duties.

Not Ordinarily Resident (NOR) Scheme

An individual may qualify for the NOR scheme for any year of assessment if the following conditions are satisfied: • The individual is a tax resident of Singapore for that year of assessment, and • The individual was not a tax resident of Singapore for the three years of assessment before that year of assessment.

Once the application is approved, the qualifying individual will be granted NOR status for five consecutive years of assessment with the following benefits, subject to certain conditions and capping limits: • Taxability of employment income based on time apportionment of Singapore employment income by reference to time spent in Singapore on business, and/or • Tax exemption of employer’s contributions to non-mandatory overseas social security schemes or pension funds (available only to non-Singapore citizens/non-Singapore permanent residents).

Personal Reliefs

Resident individuals are entitled to claim personal reliefs such as the following if certain prescribed conditions are met: • Earned income relief ranging from S$1,000 to S$8,000 depending on the age of the taxpayer. • Spouse relief of S$2,000 if the spouse was living and supported by the taxpayer and the spouse’s annual income did not exceed S$4,000 in the previous year. • Child relief of S$4,000 per child if the unmarried child maintained by the taxpayer is below 16 years of age or studying full time and did not have an annual income of more than S$4,000 in the previous year. • Relief on employee’s compulsory contributions to the Singapore Central Provident Fund. • Life insurance relief on annual insurance premiums paid for life assurance policies. (The total quantum of the individual’s employee CPF contribution and life insurance relief should not exceed S$5,000.) • Course fee relief of up to S$5,500. • Foreign maid levy relief of twice the amount of the domestic foreign worker levy paid in the previous year on one foreign domestic worker. (Applicable only to married female taxpayer /separated, divorced or widowed female taxpayer who had children living with her and on whom she could claim child relief.)

Central Provident Fund (CPF) Contributions

Contributions to the CPF are mandatory for employees who are either citizens or permanent residents of Singapore.

In most cases, the employee’s CPF contribution is based on 5% to 20% of his gross emolument depending on his age. The employer is also required to contribute a corresponding 7.5% to 17% to the employee’s CPF account. The monthly ordinary wage ceiling for CPF contributions is S$5,000.



With effect from 1 January 2016, the monthly CPF salary ceiling will be increased from S$5,000 to S$6,000.

Both the employee and employer are entitled to claim tax deduction for the contributions made so long as the contributions are within statutory limits.

Employee Share Option Plans

Taxation of Personal Investment Income

Any gains or benefits arising from employee share options in relation to Singapore employment are taxable when the share options are exercised. The taxable gain is generally the difference between the open market price of the share on the date of exercise (or date when the selling restriction is lifted, if applicable) and the price paid by the employee for the shares (i.e. exercise price). Expatriates with unexercised share options who are ceasing employment or leaving Singapore permanently are subject to deemed exercise rules under certain circumstances.

Singapore-sourced investment income, such as rental and loan interest, is generally taxable. However, interest on deposits with approved banks or licensed finance companies in Singapore that is derived on or after 1 January 2005 is tax-exempt. Dividends received from Singapore resident companies are also tax-exempt in Singapore.

All foreign-sourced incomes received in Singapore are not subject to tax in Singapore, unless the income is received by resident individuals through a partnership in Singapore.

Tax Resident versus Non-tax Resident Individual Comparison

Income tax rates

Personal reliefs and rebate

Singapore-sourcedemloyment income

Foreign-sourced incomereceived in Singapore

Board directors’ fees/remuneration

Tax treaty benefits Yes No

Tax-exempt

Special rules available for foreign-sourced income received through partnerships in Singapore

Tax-exempt

Taxable Not taxable if arising from short-term employment in Singapore that does not exceed 60 days in the basis period

Applicable Not applicable

Progressive tax rates ranging from 0% to 20%(0% to 22% with effect from year of assessment 2017)

15% or progressive resident rates (whichever results in the higher tax amount) for employment income (except for board directors’ fees / remuneration)

Progressive tax rates ranging from 0% to 20%(0% to 22% with effect from year of assessment 2017)

20%

Tax Resident Non-tax Resident



Filing of Individual Income Tax Returns

Personal income tax returns must be submitted by individuals to the IRAS by April 15 of each tax year. For example, employment income earned by an individual for the calendar year ending 31 December 2014 is to be reported in the year of assessment 2015 income tax return, which will be due for filing on 15 April 2015.

Married couples are required to file their income tax returns separately.

Payment of Income Tax

Generally, there is no requirement for employers to withhold income taxes from an individual employee’s monthly salary.

Once an individual files his income tax return, the IRAS will raise a notice of assessment to the individual to collect the amount of tax due. The tax due in the notice of assessment must be paid within a month from the date of the notice of assessment, notwithstanding any objection. Taxpayers may request for the amount of tax due to be settled by monthly instalments (up to a maximum of 12 instalments), subject to IRAS’s approval.

If the taxpayer does not agree with the tax assessed in the notice of assessment, the taxpayer may lodge a notice of objection with the IRAS within 30 days from the date of the notice of assessment.

Cessation of Employment in Singapore and Departure from Singapore

Non-Singapore citizens ceasing employment in Singapore or departing Singapore for a period of more than three months (unless the employee is required in the course of his employment to leave Singapore at frequent intervals) are subject to tax clearance. A written notice is to be lodged to the IRAS about the employee’s cessation/departure and salary withholding has to be done by the employer until tax clearance is issued by the IRAS. The notice must be made at least one month before the cessation of employment/departure of the employee.

Table of Individual Income Tax Rates

Resident individual personal income tax rates are as follows:

Chargeable IncomeS$

On the first 20,000On the next 10,000

-2

-200


-3.50

200350


-7

5502,800


-11.5

3,3504,600


-15

7,9506,000

On the first 160,000On the next 40,000*

-17

13,9506,800

On the first 200,000*

On the next 120,000*

-18

20,75021,600

On the first 320,000*

Excess over 320,000*

-20

42,350-

Tax Rate%

Tax PayableS$

Non-resident individuals deriving employment income (apart from board directors’ fees and remuneration) are taxed at a flat rate of 15% or the resident rates above, whichever gives rise to a higher tax payable. Non-resident individuals deriving directors’ fees and remuneration and other sources of income are taxed at 20%.

Corporate Tax

Income of a company (whether tax resident or not) that is accrued in or derived from Singapore or received in Singapore from outside Singapore is subject to corporate income tax, unless the income is specifically exempt from tax under the SITA.

Corporate Income Tax Rate

The prevailing corporate income tax rate is 17% with a partial tax exemption on normal chargeable income (excluding Singapore franked dividends) of up to S$300,000 as follows: • 75% exemption on the first S$10,000 of normal chargeable income; and • 50% exemption on the next S$290,000 of normal chargeable income.

Accordingly, the effective tax rate on the first S$300,000 of normal chargeable income is close to 8%. The balance of chargeable income in excess of S$300,000 would then be fully taxable at the prevailing rate of 17%.

*The marginal tax rates will be increased after the S$160,000 chargeable income bracket, ranging from 18% to 22% with effect from year of assessment 2017.



Start-up Companies

Subject to the following conditions, resident start-up companies (excluding investment holding companies and property development companies incorporated after 25 February 2013) are granted tax exemption on normal chargeable income (excluding Singapore franked dividends) of up to S$300,000 for their first three consecutive years of assessment upon incorporation as follows: • 100% exemption on the first S$100,000 of normal chargeable income; and • 50% exemption on the next S$200,000 of normal chargeable income.

The effective tax rate on the first S$300,000 of chargeable income is therefore close to 6%.

The prescribed conditions for the tax exemption scheme are as follows: • The company must be incorporated in Singapore; • The company must be a tax resident in Singapore for that year of assessment; and • The company has no more than 20 shareholders throughout the basis period for that year of assessment where: a. all the shareholders are individuals beneficially and directly holding the shares in their own names; or b. at least one shareholder is an individual beneficially and directly holding at least 10% of the issued ordinary shares of the company.

Corporate Income Tax Rebate

All companies (regardless of their tax residency) are entitled to a 30% corporate income tax rebate for each year of assessment from 2013 to 2015 (capped at S$30,000) and each year of assessment from 2016 to 2017 (capped at S$20,000). The rebate does not apply to income of a non-resident company that is subject to final withholding tax.

Expense Deductions and Capital Allowances Claim

Revenue expenses that are wholly and exclusively incurred in the production of income are generally tax deductible, unless specifically disallowed for tax.

Book depreciation charges are not deductible for tax purposes. Capital allowances are instead granted on qualifying capital expenditures incurred on fixed assets used for the purposes of the taxpayer’s trade, business or profession. Qualifying capital expenditure incurred on small-value items and certain specific fixed assets (e.g. computer and computer-related equipment) may be fully written off in the year incurred, while other qualifying fixed assets are generally written off on a straight-line basis over three years.

The writing down allowance for qualifying intellectual property rights is usually granted over five years on a straight line basis. Land intensification allowance (LIA) may be claimed on qualifying expenditure incurred for the construction of a qualifying building or structure, if the said expenditure is incurred on or after 23 February 2010 up to the completion date of the construction or renovation/extension of the approved LIA building or structure, subject to conditions.

Balancing adjustments must be made when the fixed assets are sold or under certain circumstances, such as when the qualifying asset ceases to belong to the taxpayer or permanently ceases to be used for the taxpayer’s trade, business or profession.

Tax Exemption on Specific Foreign-sourced Income

A Singapore-resident company may enjoy tax exemption for its foreign-sourced dividends, foreign-branch profits and foreign-sourced service income (i.e. income where the services are rendered in the course of the taxpayer’s trade, business or profession through a fixed place of operation in a foreign jurisdiction) received in Singapore if the following conditions are met: • In the year when the income is received in Singapore, the headline tax rate of the foreign jurisdiction from which the income is received is not less than 15%; • The income is subject to tax in the foreign jurisdiction; and • The IRAS is satisfied that the tax exemption would be beneficial to the Singapore-resident company.

Tax Exemption on Gains of Equity Investment Disposals

The Singapore government has introduced a “safe-harbour” rule whereby gains derived from equity disposals during the period 1 June 2012 to 31 May 2017 by a qualifying divesting company will not be taxed if the following conditions are met: • The shareholding interest in the investee company is at least 20%; • The shares in question had been held for at least 24 months before their disposals; and • The gains did not arise from a disposal of shares of a preferential nature or shares with redeemable or convertible features, or shares in an unlisted investee company that is in the business of trading or holding Singapore immoveable properties (other than the business of property development).

Foreign Tax Credit

A Singapore-resident company may be entitled to claim foreign tax credit in respect of the foreign tax suffered on the foreign-sourced income received and subject to tax in Singapore. The computation of the foreign tax credit is on a source-by-source and country-by-country basis.

With effect from the year of assessment 2012, a Singapore-resident taxpayer, subject to conditions, can elect for the foreign tax credit pooling system whereby the foreign taxes paid (including any underlying tax, where applicable) on any items of the foreign-sourced income will be “pooled” together. The amount of foreign tax credit to be granted will be computed on an aggregate basis, rather than a source-by-source and country-by-country basis. The foreign tax credit is capped at the lower of the aggregate foreign taxes paid on all the streams of foreign income and the pooled Singapore tax payable on the aggregate foreign income.

Unabsorbed Capital Allowances, Trade Losses and Donations

Companies may carry forward their unabsorbed capital allowances, trade losses and donations for offset against future taxable income provided at least 50% of their ultimate shareholders and their respective shareholdings are the same as at certain relevant comparison dates. For the utilisation of unabsorbed capital allowances, there must also be no change in trade from which the allowances arose.

Unabsorbed donations can only be carried forward for up to five years for offset against the taxpayer’s future taxable income.

Companies may also choose to carry back their current year’s unabsorbed trade losses and capital allowances of up to S$100,000 to offset against the assessable income of the immediate preceding year of assessment.



Group Relief

Under the group relief system, a company within a group (the transferor) is allowed to transfer its current-year unabsorbed trade losses, capital allowances and donations for offset against the current year’s assessable income of another company (the claimant) within the same group.

To qualify for the group relief, both the transferor and claimant must be Singapore-incorporated companies, belong to the same group of companies on the last day of the basis period and have the same financial year end. The transferor and claimant companies are considered members of the same group if at least 75% of the total number of issued ordinary shares in one company are beneficially held, directly or indirectly, by the other, or at least 75% of the total number of issued ordinary shares in each of the two companies are beneficially held, directly or indirectly, by a third Singapore-incorporated company.

Filing of Estimated Chargeable Income and Corporate Income Tax Return

Every company has to submit an estimated chargeable income (ECI) to the IRAS within three months from the end of the company’s financial year. Companies must also submit their corporate income tax returns to the IRAS by November 30 each tax year.

To illustrate, a company with a financial year ended 31 December 2014 must file its year of assessment 2015 ECI and corporate income tax return to the IRAS by 31 March 2015 and 30 November 2015 respectively.

Payment of Corporate Income Tax andObjection to Assessments Raised

Upon receipt of the notice of assessment from the IRAS, the tax due in the notice of assessment must be paid within a month from the date of the notice of assessment unless payment by instalments has been arranged, notwithstanding any objection. A maximum of 10 instalments may be obtained to settle the tax payables, subject to the IRAS’s approval.

If the taxpayer does not agree with the tax imposed in the notice of assessment, the taxpayer may lodge a notice of objection with the IRAS within 30 days from the date of the notice of assessment. With effect from 1 January 2014, the IRAS, as an administrative concession, has extended the deadline to file a notice of objection from 30 days to two months from the date of the notice of assessment.

Productivity and Innovation Credit (PIC)

The PIC scheme was introduced to encourage businesses to invest in innovation and increase productivity. It applies to qualifying expenditures incurred for the years of assessment 2011 to 2018.

Under the scheme, businesses can enjoy 400% tax deductions /allowances for qualifying spending of up to S$400,000 in each of the following qualifying activities for each year of assessment from 2011 to 2018:

Acquisition & In-licensing ofIntellectual Property Rights

Registration of IntellectualProperty Rights

Research & Development

Acquisition or Leasing of InformationTechnology and Automation Equipment

Training of Employees

Investments in Design ProjectsApproved by DesignSingapore Council

Qualifying Activities

In lieu of the tax deduction/allowance benefits, businesses have the option to convert up to S$100,000 of their total qualifying expenditure (subject to a minimum expenditure of S$400) in all six qualifying activities into a non-taxable cash payout for each year of assessment in question. For the years of assessment 2013 to 2018, the cash conversion rate is 60%.

PIC+ Scheme

The PIC+ scheme is available to support qualifying small and medium enterprises that make more substantive investments to transform their businesses and incur PIC qualifying expenditures beyond the PIC combined cap of S$1,200,000 applicable for the relevant three years of assessments from year of assessment 2013 to 2015, and year of assessment 2016 to 2018 respectively.

Under the PIC+ scheme, from year of assessment 2015 to 2018, qualifying small and medium enterprises that invest in the six qualifying activities under the PIC scheme will continue to enjoy 400% tax deductions/allowances on an additional S$200,000 in expenditure for each qualifying activity per year of assessment. This will bring the expenditure cap of qualifying small and medium enterprises from S$400,000 to S$600,000 per qualifying activity per year of assessment.

Dividend Payment

Dividend payments made to non-resident shareholders are not subject to Singapore withholding tax. Furthermore, dividends paid by Singapore resident companies are tax-exempt in Singapore in the hands of the shareholders.

Withholding Tax

There is a requirement to withhold tax when certain specified payments, such as interest, royalty and service fees (in respect of services performed in Singapore), are made to non-Singapore tax residents. The domestic withholding tax rates are generally 15%, 10% and 17% for interest, royalty and service fee payments respectively. The rates may be reduced under the provisions of existing tax treaties between Singapore and the relevant countries.



Starting from 1 July 2012, the tax withheld must be paid to the IRAS by the 15th day of the second month following the date of payment to the non-Singapore tax resident. Late-payment penalties will be imposed if the tax withheld is not remitted to the IRAS on time.

Goods and Services Tax

Goods and services tax (GST) is a broad-based tax on local consumption and chargeable on goods and services sold in Singapore as well as goods imported into Singapore.

A supply of goods or services made in Singapore is subject to GST at the prevailing standard rate of 7% unless the supply is zero-rated (i.e. GST at 0%) or exempt under the GST Act. Standard-rated supplies comprise sale of goods or services supplied in Singapore, while the provision of international services and exports is mainly zero-rated. Exempt supplies consist of the sale and lease of residential properties as well as the supply of financial services and investment in precious metals.

A person must register for GST if his taxable supplies for the last 12 months exceeded S$1 million or if he expects to make taxable supplies exceeding S$1 million in the next 12 months. However, a person may apply for GST registration on a voluntary basis even if his taxable supplies are not expected to exceed S$1 million.

Notwithstanding that there is an obligation to register for GST, the person may apply for exemption from GST registration if he is making wholly or substantially zero-rated supplies.

A GST-registered person is able to claim the GST incurred on his business expenses as an input tax credit, subject to conditions.

GST-registered traders may apply for certain GST schemes (such as Major Exporter Scheme, Group Registration) to help reduce GST compliance costs and/or mitigate cash flow problems.

Stamp Duty

Stamp duty is payable only in relation to the acquisition or disposal of property, lease/tenancy of property and transfer of shares/stocks. Stamp duty exemption/relief is available on certain transactions such as corporate restructuring and mergers, subject to conditions.

Property Tax

Payable by all property owners, property tax is a tax on immoveable properties, calculated based on a percentage of the annual value of the properties.

Property tax is levied based on 10% of the annual value of the immoveable commercial or industrial property. For owner-occupied residential property, the property tax rate is on a progressive basis depending on the annual value of the property. The property tax rates for owner-occupied residential properties are as follows:

On the first

On the next

On the next

On the next

On the next

On the next

On the next

On the next

AV in excess of

Annual ValueS$

8,000

47,000

5,000

10,000

15,000

15,000

15,000

15,000

130,000

Tax Rates from1 January 2014

%

0

4

5

6

7

9

11

13

15

Tax rates from1 January 2015

%

0

4

6

6

8

10

12

14

16

Annual ValueS$

Tax Rates from1 January 2014

%

Tax rates from1 January 2015

%

On the first 30,000 10 10

On the next 15,000 11 12

On the next 15,000 13 14

On the next 15,000 15 16

On the next 15,000 17 18

AV in excess of 90,000 19 20

Property tax rates for non-owner-occupied residential properties are as follows:

Customs and Excise Duties

In Singapore, customs and excise duties are imposed principally on intoxicating liquors, tobacco products, motor vehicles and petroleum products based on certain prescribed rates.

Estate Duty and Gift Tax

There are no estate duties (for deaths after 15 February 2008) or gift taxes in Singapore.

Exchange Control

There are generally no exchange control restrictions in Singapore.

Note: All information contained in this article is correct as of 1 March 2015. Readers should not rely solely on this article for their tax planning or fulfilment of regulatory obligations within or outside Singapore. Readers should consult their own professional tax advisors who are familiar with their specific situation for advice before making any decisions on their investments.

Contributed by: RSM Chio Lim LLPBusiness Advisors to Growing Businesses



Tax Incentives

Singapore has a wide range of tax incentives to encourage investments by foreign investors and domestic businesses. Such incentives, either in the form of income tax exemption or concessionary tax rates, are used to induce or facilitate certain activities or business deemed desirable for Singapore society and economy.

Tax incentives in Singapore are generally categorised into statutory and discretionary incentives.

Statutory incentives refer to incentives that do not require approvals from the government agencies and are available to businesses of all industries in the form of enhanced tax deductions or allowances, subject to meeting conditions. Examples include enhanced deductions /allowances under Productivity and Innovation Credit (PIC), enhanced deductions for Research and Development (R&D) expenses, marketing and promotion expenses, mergers and acquisition allowances, writing down allowances on qualifying intellectual property rights, etc. Businesses are to self-assess their eligibility, and claim through their annual corporate tax return submission with Inland Revenue Authority of Singapore (IRAS).

Discretionary incentives on the other hand are administered and granted by the relevant government agencies which include the

Requirements Benefits

Approvinggovernment

agencyIncentive

EDB

Pioneer industries/ Pioneer ServicesCompanies

Projects that are very strategic and result in the creation of desirable industries in Singapore (i.e. creation of new technologies / skill / knowledge that raise the overall industry standard)

Tax exemption on qualifying profit, for 5 to 15 years

EDB

Development &Expansion Incentive(DEI)

Reduced tax rate from 5% to 15% on incremental qualifying activities profit, for a period up to 10 years with provision for extensions up to a maximum total relief period of 20 years

Projects that generate significant economic spin-off for Singapore

EDB

Regional Headquarters(RHQ)

Reduced tax rate of 15% on incremental income from qualifying HQ activities (RHQ), for 3 years with provision for extension for an additional 2 years

Company which provides corporate support of headquarters-related services and busines expertise on regional basis (RHQ); must exceed the stipulated requirements

EDBInternationalHeadquarters(IHQ)

Reduced tax rate (as low as 0%) on qualifying income HQ activitites (IHQ), for a period of 5 years with provision for extension

Company that commits to substantially exceed the minimum criteria for the RHQ award

IE Singapore

Global TraderProgramme

Reduced tax rate of either 5% or 10% on qualifying trade income, depends on the commitment levels, for 5 years with provision for extension

Company which carries on international trading, procurement, distribution and transportation of qualifying commodities and products with good track record; intends to use Singapore as its regional base for its principal offshore trading activities

A) Manufacturing, trading and services

Economic Development Board (EDB), International Enterprise Singapore (IE Singapore), Maritime and Port Authority of Singapore (MPA) and Monetary Authority of Singapore (MAS). The incentives are available to a broad spectrum of industries (including manufacturing, shipping, trading, financial services sectors, etc.) and granted to companies whose business activities reflect the direction in which the government plans to steer economic and technology development. They usually come in the form of tax exemption and preferential tax rates for a period of 5 to 10 years, and may be renewable. The requirements for tax incentives are dependent on the facts and merits of each case submitted with the relevant government agency. The specific conditions, level of support and duration of the incentive are based on negotiation with the relevant government agency on a case-by-case basis. Often, the government agencies will review the qualitative and quantitative factors of each application, including the level of Singapore business spending commitment (including fixed asset commitments) during the incentive qualifying period, the level of incremental headcount (including quality of people hired) in Singapore and revenue to be achieved in Singapore, as well as the scope of activities undertaken by the company to be in line with the intended development of Singapore economy.

A summary of the commonly considered discretionary tax incentives is set out in the table below:



Requirements Benefits

Approvinggovernment

agencyIncentive

EDB

Finance &Treasury Centre (FTC)

Approved companies which provide finance and treasury services to related and associated companies outside Singapore

Reduced tax rate of 10% on income derived from undertaking qualifying activities and providing qualifying services to approved network companies, for a period of 5 to 10 years

EDBFinancial Sector Incentive (FTC)

Reduced tax rate of 5%, 10% or 12% on income derived from qualifying activities

Financial institutions which perform high-growth and value added financial activities

EDB

Singapore ResidentFund

Tax exemption on qualifying investment income

Specified income derived from designated investments by an approved company, incorporated and resident in Singapore but not wholly owned by Singapore investors, arising from funds managed by Singapore based fund administrator

EDB

Enhanced Tier Fund Enhanced tax exemption on qualifying investment income

Approved fund , with a minimum fund size of SGD 50 million at the point of application, derives income and gains on designated investments

IE SingaporeApproved Venture Reduced tax rate of 0% to 10% on qualifying

income, for a period of 5 to 10 yearsIncome derived from approved venture capital funds or venture capital fund management companies

B) Financial Sector

B) Shipping Sector

MPA

- MSI-AIS - Tax exemption on qualifying shipping income, for a period of 5 to 10 years - MSI-SSS - Reduced tax rate of 10% on the incremental income on qualifying approved shipping-related support services such as ship broking, forward freight agreement (FFA) trading, ship management, ship agency, freight forwarding and logistics services; and corporate services rendered to qualifying approved related parties who are carrying on the business of shipping-related activities, for a period of 5 years - MSI-ML - Reduced tax rate of 5% or 10% on qualifying leasing income, for a period of 5 years

International ship owners or operators which establish their commercial shipping operations in Singapore / use Singapore as their capital and funding base to finance their vessels or sea containers / shipping conglomerates to set up their corporate service functions in Singapore

Maritime Sector Incentive (MSI):

- Approved International Shipping (MSI-AIS) Award

- Shipping Related Support Services (MSI-SSS) Award

- Maritime Leasing (MSI-ML) Award

Note: The above is not an exhaustive list and serves as general guidance only. Readers should not rely solely on the above when deciding on their investments into or from Singapore.

Contributed by: BDOAudit.Tax.Advisory.



Overview of International Agreements in Singapore

International agreements attract trade and investment to Singapore, creating opportunities locally for Singapore companies. They also facilitate business expansion and trade in foreign jurisdictions, allowing Singapore companies to grow their business both in the region and globally.

Singapore’s strong plethora of international agreements has led to its being named the best business environment in Asia Pacific and the world by the Economist Intelligence Unit, Country Forecasts Report in 20142. It was also recognised as the second most competitive city in the world according to the Global Competitiveness Report 2013 – 2014 by the World Economic Forum3.

When doing business in and from Singapore, you can leverage the various international agreements including the Avoidance of Double Taxation Agreements (DTAs), Free Trade Agreements (FTAs) and Investment Guarantee Agreements (IGAs).

DTAs

International double taxation of income increases the tax suffered on foreign income, which discourages cross-border movements of investment, technology and expertise – items which are vital to economic growth. A DTA signed between Singapore and a treaty country aims to relieve the double taxation of income earned in one country by a tax resident of the other country, while providing for exemption or reduction of tax on certain types of foreign income. It also serves to reduce taxation disputes by distinguishing the taxing rights of Singapore and the treaty country on the various sources of foreign income.

Singapore has in place 76 full-force DTAs, eight DTAs which have been signed but yet to be ratified and nine limited treaties4.

Of note, Singapore has in place full force DTAs with most of its key trading partners, such as Malaysia, China, Indonesia, Australia, Japan and South Korea.

Singapore tax-resident companies wishing to exercise provisions of Singapore’s DTAs in foreign jurisdictions are usually required to produce a certificate of residence (COR) to the relevant tax authorities. The COR for Singapore tax-resident companies can be obtained from the Inland Revenue Authority of Singapore.

FTAs

A FTA is a legally binding agreement between Singapore and the treaty country to reduce or eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of both parties5. FTAs provide for tariff reductions and improved market access, investment and intellectual property protection, mutual recognition of standards and qualification and opportunities for tenders in government-restricted areas in treaty countries. These broaden Singapore companies’ global trading outreach and enhance their cost competitiveness in treaty countries. For example, Singapore’s key FTAs helped Singapore-based companies save over S$700 million and S$1.1 billion in tariffs in 2009 and 2010, respectively6.

Singapore has in place 21 FTAs with 32 trading partners7. Unlike DTAs which are bilateral in nature, FTAs are often signed on a multilateral basis, which have the advantage of holding more parties to a single set of trading rules. Since its first FTA under the ASEAN Free Trade Area in 1993, Singapore has signed a raft of FTAs with key trading blocs including the European Union-Singapore FTA in December 2012. Companies which wish to leverage Singapore’s FTAs can further enquire with International Enterprise Singapore.

IGAs

The protection of investors’ interests, both inbound and outbound, boosts investors’ confidence to open up business and investment opportunities. To promote greater investment flows, Singapore has signed IGAs with various treaty countries.

An IGA provides a legal framework between Singapore and the treaty country setting out investment norms and protection when investing in the other country. The usual provisions of an IGA include the principle of fair and equitable treatment; the principle of non-discrimination compensation in the event of expropriation; free transfer of funds; and investor-state dispute settlement mechanism7.

Singapore currently has 41 IGAs in force. These include IGAs concluded with ASEAN countries, China, the United States of America, the United Kingdom and the United Arab Emirates. Companies seeking more information about Singapore’s IGAs can approach the Ministry of Trade and Industry Singapore.

Contributed by: KPMG in SingaporeTier 1 Firm for Tax Advisory and Transfer Pricing (2015)

and Transactional Tax (2014) – International Tax Review. Best Advisor for Taxation Services – Euromoney Real

Estate Awards 2014.

2http://www.edb.gov.sg/content/edb/en/why-singapore/about-singapore/facts-and-rankings/rankings.html3http://www.edb.gov.sg/content/edb/en/why-singapore/about-singapore/facts-and-rankings/rankings.htm4http://iras.gov.sg/irasHome/page.aspx?id=8125http://www.fta.gov.sg/sg_fta.asp6http://www.mti.gov.sg/MTIInsights/Documents/app.mti.gov.sg/data/article/25542/doc/FA_2011Q2.pdf 7http://www.iesingapore.gov.sg/trade-from-singapore/international-agreements

BUSINESSPROCESS OUTSOURCING (BPO)

BUSINESSPROCESS

OUTSOURCING (BPO)

T�� R�� S��: B�� P�� O��Business Process Outsourcing (“BPO”) is fast becoming a key business strategy, delivering sustainable competitive advantage through optimal utilisation of the company’s manpower resources. Typically, BPO involves contracting with a third-party service provider of a specific business service to outsource certain back-office functions.

BPO owes its origins to manufacturing firms outsourcing large segments of supply chain management to third-party service providers, thereby transforming fixed cost into variable cost.

The rewards to the company, after embarking on outsourcing, can be measured in terms of a few key deliverables, namely: • Cost-savings and better cost control • Increased flexibility and the ability to respond quickly to environmental changes • Removal of key-man risk • Assurance of qualified manpower resources

All of which are intertwined.

Cost savings is a primary concern to many businesses and can take many forms. For example, when high value capital expenditure investments are being considered, say when purchasing a payroll software engine, such costs can be mitigated by taking advantage of the lower cost software subscription model (SaaS) offered by many payroll service providers. Purchasing a robust software engine for in-house processing could set the company back by tens of thousands of dollars, not to mention the additional thousands in annual software maintenance charges. Outsourcing the payroll typically only entails paying a nominal monthly processing fee, which includes payroll software usage.

Cost management is also another major concern for businesses. Outsourcing allows the company to manage costs better because the relevant fixed costs become variable costs once the processed is outsourced. Again, in the case of outsourced payroll for example, the fees charged by the service providers are generally pegged to the actual headcount processed, so when headcount drops significantly, the fees also correspondingly drop. On the other hand, the outright purchase of the payroll software engine is a sunk cost, regardless of headcount changes. This point also illustrates the flexibility gained from outsourcing - outsourcing the payroll enables the company to respond to changes in the operating environment quickly and effectively without being burdened with fixed costs.

When weighing the merits of processing a back-office function in-house versus outsourcing it, direct cost is not the only consideration in the cost equation. Many companies fail to take into account the indirect costs.

Illustration A

Company A (the newly incorporated Singapore subsidiary of a European company in the life-style sector) has decided to prepare its accounts in-house instead of outsourcing it. As the company adopts a lean headcount policy and wishes to contain costs, the responsibility of

preparing the accounts will fall on the shoulders of a fairly junior and inexperienced accountant. To facilitate the accounting work, the company intends to invest in accounting software. Below is a comparison of the costs incurred by the company and the potential savings, if they outsourced the accounts preparation from the beginning.

Savings (pm)Cost Element In-house (pm) Outsourced (pm)

S$3,071Total Cost S$5,271 S$2,200

Outsourcing fees (5) Nil S$2,200

Staff salary andbenefits (1)

S$3,722 Nil

Overheads (2) S$744 Nil

Depreciation-accountingsoftware (3)

S$555 Nil

Softwaremaintenancecharge (4)

S$250 Nil

Assumptions:(1) Basic salary at S$2,500 pm plus bonus, employer CPF and medical/insurance benefits (2) Rental, utilities, IT cost, etc, computed at 20% of (1)(3) Software cost of S$20,000 depreciated over 36 months(4) Based on 15% of software purchase price(5) Approximately 100 accounting transactions per month

In a talent-hungry operating environment, businesses are constantly battling for limited resources. Even after securing that prized staff, there is still the constant worry of attrition and key-man risk. Outsourcing back-office functions provides companies access to a wealth of experienced professional help on demand, without the worry of having to retain that headcount. Typically staffed by a highly trained pool of professionals, outsource service providers also alleviate the concern that smaller companies may have about gaining access to the right kind of help.

Illustration B

Company B (the Singapore subsidiary of a US Listed company in the Information Technology sector) used to process its payroll in-house for a number of years. Over that period of time, due to the lack of proper training and inexperience, the payroll officer incorrectly treated commissions as Ordinary Wages instead of Additional Wages, resulting in a significant shortfall in CPF contributions, in excess of several hundred thousand dollars. This surfaced when the payroll officer resigned and the company decided to outsource instead of hiring a new staff. The service provider alerted the company of the incorrect treatment and resultant shortfall and assisted the company to undertake a voluntary disclosure to CPF Board. Due to the extended timeframe over which there were CPF under-contributions, the interest penalties levied upon the company by CPF Board also came up to several hundred thousand dollars.

These are hard lessons to be learnt on the benefits of outsourcing.

Outsourcing is commonplace amongst the multinationals, who are more compliance and control focused and who would generally be more

SINGAPORE BUSINESS FEDERATIONBUSINESS PROCESS OUTSOURCING (BPO)



SINGAPORE BUSINESS FEDERATIONFOREWORD


SINGAPORE BUSINESS FEDERATIONBUSINESS PROCESS OUTSOURCING (BPO)

concerned about headcount being utilised in revenue producing roles than in a back-office function. But outsourcing is quickly gaining acceptance with the SMEs as well. From the above illustrations, the reasons are evident.

The added value proposition that outsourcing brings to the table leverages on the following key points: • Adding structure and control to the existing processes • Ensuring accuracy & regulatory compliance • Turning fixed cost into variable cost • Reducing the dependency on internal resources • Reducing processing cost • Allowing for more efficient planning and utilisation of businesses resources • Allowing greater focus on core competencies • Helping to implement better control over the timing, flow and quality of information between the company’s various stakeholders

BusinessTransformation

Services

HumanResource

Consulting

RecruitmentOutsourcing

Services

AccountingServices

BPO

FinanceServices

PayrollServices

CustomerSupportServices

TechSupportServices

BPO

ContactCentre

Services

Contributed by: Boardroom LimitedLeading provider of business solutions with an

established presence in Australasia

Back Office Outsourcing Front Office Outsourcing

Focusing on its core activities allows the company to channel its energies and resources into revenue generating activity, mitigate manpower related issues, and reduce compliance risks. Back-office functions such as payroll, accounting, recruitment, etc, may be non-core activities but that does not lessen their importance as critical business functions which deserve proper attention and due care in the good hands of outsource professionals.

FINANCIALREPORTING & AUDITING

FINANCIALREPORTING &

AUDITING


SINGAPORE BUSINESS FEDERATIONFINANCIAL REPORTING & AUDITING

FINANCIAL REPORTING & AUDITING

The Accounting Profession

With some 28,000 members, the Institute of Singapore Chartered Accountants (ISCA) is the national body representing the accounting profession in Singapore. ISCA was officially appointed as the administrator of the Singapore Qualification Programme (Singapore QP) on 1 April 2013 by the Singapore Accountancy Commission. Candidates who successfully complete the Singapore QP will be conferred the globally recognised Chartered Accountant of Singapore — CA (Singapore) — designation.

Regulation of the Accounting Profession

Singapore’s Accounting and Corporate Regulatory Authority (ACRA) administers the Companies Act and Accountants Act. Pursuant to this, it monitors directors’ compliance with approved accounting standards and requirements in connection with the preparation and filing of statutory financial statements required under the Companies Act. ACRA also ensures that public accountants, who perform statutory audits, audit these financial statements in compliance with relevant auditing and quality control standards.

The Registrar of Public Accountants of ACRA licenses and registers accountants who wish to practise as public accountants. ACRA also handles practice monitoring and disciplinary matters, as well as regulates the professional conduct of public accountants.

Accounting Records

All companies incorporated under the Companies Act must keep books of accounts that sufficiently explain the transactions and financial position of the company. The records must also enable true and fair financial statements to be prepared from time to time. Companies can choose their financial year end.

The books may be kept either at the company’s registered office or at another place that is considered by the directors to be appropriate. If the books are kept outside Singapore, sufficient records must be maintained in Singapore to facilitate the preparation and/or audit of financial statements that accurately reflect the company’s financial position.

The accounting records must be kept for a minimum of five years from the end of the financial year in which the transactions or operations to which the records relate were completed.

Financial Reporting Standards

Singapore’s Financial Reporting Standards (FRS) are prescribed and issued by the Accounting Standards Council (ASC), which issues accounting standards applicable to both the corporate and non-corporate sectors.

While the ASC tracks closely the introduction of new International Financial Reporting Standards (IFRS) for possible application in Singapore,

it will also take into account the local economic and business circumstances and context, as well as the entity to which the accounting standards would apply.

The FRS issued by the ASC are closely modelled on as well as largely aligned and compliant with the IFRS, except for certain modifications to the interpretations of financial reporting standards, effective dates and transitional provisions.

Compliance with FRS is a statutory requirement whereby any non-compliance amounts to a breach of the Companies Act by the directors.

Public-listed companies are subject to financial statement and disclosure requirements as prescribed by the Singapore Exchange (SGX).

The ASC, in November 2010, adopted the IFRS for SMEs as the Singapore Financial Reporting Standard for Small Entities (SFRS for Small Entities). This is intended to provide an alternative financial reporting framework for small entities. The SFRS for Small Entities is effective for financial reporting periods beginning on or after 1 January 2011.

The SFRS for Small Entities adopts similar applicability criteria under the IFRS for SMEs for identifying a small entity. A small entity is one that: • Does not have public accountability; and • Publishes general purpose financial statements for external users.

However, the SFRS for Small Entities introduces an additional element to the definition above. To be defined as a small entity, the business must also satisfy at least two of the three following quantitative criteria: • Total annual revenue of not more than S$10 million; • Total gross assets of not more than S$10 million; and • Total number of employees does not exceed 50.

Companies Act Requirements

The Companies Act requires that an audited set of a company’s financial statements, prepared no more than six months before every Annual General Meeting (AGM), must be distributed to all shareholders and presented at the meeting. Generally, if a company incorporated in Singapore has one or more subsidiaries, it must prepare consolidated financial statements unless it meets certain criteria as provided for in FRS 110 Consolidated Financial Statements.

A complete set of financial statements comprises: • a statement of financial position; • a statement of profit or loss and other comprehensive income; • a statement of changes in equity; • a cash flow statement; • explanatory notes; and • other information where required under FRS 1 Presentation of Financial StatementsThe financial statements must be accompanied by the directors’ and auditors’ reports. The directors must also declare that the financial statements show a true and fair view and that it is reasonable to believe the company can reasonably pay its debts as they become due.


SINGAPORE BUSINESS FEDERATIONFINANCIAL REPORTING & AUDITING

A branch of a foreign company has to e-file its audited financial statements, as well as the audited financial statements of the foreign company, with ACRA within two months from the AGM date of the foreign company.

Appointing Auditors

The Companies Act requires every company, including branches of foreign companies, to appoint one or more auditors qualified for appointment under the Accountants Act to report on the company’s financial statements. This requirement does not apply to those exempted in accordance with the provisions in the Companies Act (see Audit Exemption below).

The auditor(s) has to be appointed within three months of the company’s incorporation and is responsible for ascertaining whether proper books of accounts have been kept and whether the financial statements agree with the company’s records. Following this, the auditor(s) will report to shareholders at the AGM on the trueness and fairness of the financial statements.

Audit Exemption

The following companies that meet specific provisions in the Companies Act may be exempted from audits of their financial statements. However, they are still required to prepare financial statements (and consolidated financial statements where applicable) that comply with the Companies Act and FRS.

Small Exempt Private Companies

An Exempt Private Company (EPC) with not more than S$5 million in revenue for a financial year is exempted from appointing auditors and audit requirements. An EPC is a private company where there is no beneficial interest in its shares held directly or indirectly by any corporation and that does not have more than 20 members. Revenue is defined according to the statutory accounting standards, i.e. the FRS.

Dormant Companies

A dormant company is exempted from appointing auditors and audit requirements if it has been dormant either (a) from the time of its formation or (b) since the end of the previous financial year. A company is considered dormant during a period in which no accounting transaction occurs and the company ceases to be dormant when such a transaction occurs. For this purpose, transactions arising from the following are disregarded:

• Taking of shares in the company by a subscriber to the memorandum • Appointment of company secretary • Appointment of auditor • Maintenance of a registered office • Keeping of registers and books • Fees, fines or default penalties paid to ACRA

Note: The Companies (Amendment) Bill was passed in Parliament on 8 October 2014. The amendments in the Companies (Amendment) Bill are expected to come into operation in the second quarter of 2015. Please refer to http://statutes.agc.gov.sg for the latest amendments to the Companies Act when they come into force.

Contributed by: RSM Chio Lim LLPBusiness Advisors to Growing Businesses

BANKING

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Introduction to the Financial Landscape in Singapore

BANKING IN SINGAPORE

Singapore has been recognised globally as an attractive business city state. It was ranked by US-based Research Institute Business Environment Risk Intelligence (BERI) in 2014-I (April 2014) as the city with the greatest investment potential. It was also named by the World Bank as the world’s easiest place to do business for two consecutive years in 2013 and 2014.

It is easy to see Singapore’s allure as a place to conduct business. The country’s supportive government policies, educated and adaptable labour force, and clear business regulations are among the reasons why regional and global companies are setting up operations in the city state. Importantly, Singapore has a robust banking system that is well capitalised to support the growth ambitions of businesses, both big and small.

At present, there are more than 200 banks in Singapore, of which three are local banks, namely United Overseas Bank Group (UOB), Development Bank of Singapore (DBS) and Oversea-Chinese Banking Corporation (OCBC). These financial institutions offer a comprehensive suite of financial solutions and services including cash management services, treasury and investment, corporate loans, trade finance and insurance.

Setting up a Business Account in Singapore

A business current account is one of the essential banking services one would need to establish first when starting a business, whether it is a sole proprietorship, partnership or company. Making a decision on a business current account can be difficult given the many different types available in the market. Before opening a local business account, you should consider the following: • Convenience (location of branches, ATM network etc) • Account features such as minimum balance to be maintained, fall-below fee, and early account closure fee • Additional services such as business internet banking, phone banking, email alerts, SMS alerts and their respective set up fees.

What you need when Opening a Business Account

When opening a business current account, all signatories to the account must be present with their original identification documents at the point of application to avoid unnecessary delays. Additional documents may be requested by banks on a case-by-case basis. Banks may also conduct searches on the company that may result in non-refundable fees. In addition, banks reserve the right to reject the business account application without disclosing any reason.

The table below is a guide to the documents generally required by banks for opening a business account in Singapore.

SoleProprietorship

Partnership/Limited Partnership/

Limited Liability Partnership

PrivateLimited

Company

LimitedCompany

RegisteredOverseas

Certified True Copyof Memorandum &Article ofAssociation

X X

Certificate of incorporation or equivalent document

X

ManagementCorporations

ProfessionalPractice

Business ProfileSearch X X X X X

Society/Clubs/Associations

Resolution X X X X X

Completed AccountOpening Form X X X X X X X

Certified true copiesof NRIC/Passport ofall authorisedsignatories/Directors/Shareholders/Partners/Office Bearers

X X X X X X X



Cash Management Services

Efficient cash management will have a positive impact on your overall business performance. Banks offer a myriad of cash management services that can help you run your business more efficiently and effectively. To ensure you are adopting the right strategy and using the right solutions, it is important to first understand your company’s short- and long-term working capital needs.

Various cash management services include: 1) Payments & Collections Services • Local Fund Transfers via MEPS, GIRO & FAST • Direct Debits • Telegraphic Transfers • Cheque issuance, Cashier’s Order & Demand Drafts • Bulk Payment and Payroll

2) Self Service Banking via: • Internet Banking • Phone Banking • ATM or Cash Deposit Machine

Other cash management services such as cash sweeping, cash pooling and escrow services are also available to help you manage your company’s liquidity efficiently.

Do consider the various options above to decide which combination of services can help you better manage your business.

Note: Businesses should consult their bank on the types of cash management services available.

Corporate Credit Facilities

As a business owner, you can take advantage of a wide array of credit facilities offered by banks in Singapore to help you manage your company’s cash flow, seize a business opportunity or finance your expansion plans.

When applying for credit facilities in Singapore, approval is subject to the individual bank’s internal credit guidelines. The factors for consideration include a company’s financial track record and payment history. Depending on the amount and types of credit facilities, banks may require a company to put up securities such as property or deposits as collateral.

Credit facilities offered by banks may include:

1) Working Capital Financing • Unsecured Business Term Loan • Overdraft

SoleProprietorship

PrivateLimited

Company

LimitedCompany

RegisteredOverseas

ManagementCorporations

ProfessionalPractice

Society/Clubs/Associations

Partnership/Limited Partnership/

Limited Liability Partnership

Professional Practising Certificate X

FATCA* Form X X X X X X X

Certified True Copy ofMinutes of Meetingof ManagementCommittee

X

Certified True Copy ofBy-Laws of Society/Association/Clubs

X

2) Asset-based Financing • Business Property Loan – Loans to purchase or refinance commercial/industrial properties • Machinery and Equipment Financing • Commercial Vehicle Financing • Factoring

3) Trade Finance • Import Letter of Credit • Import Documentary Collection • Shipping Guarantee • Trust Receipt/Import Invoice Financing • Standby Letter of Credit • Export Letter of Credit Confirmation • Export Letter of Credit Discounting/Negotiation • Banker’s Guarantee

Note: Businesses should consult their bank on the types of credit facilities available.

Business Insurance

Expanding a business is just as important as protecting it. Business insurance is one way to manage a company’s operational risks, including the loss of key personnel. In Singapore, banks typically partner insurance companies to offer business insurance — commonly known as bancassurance — to their customers.

Business insurance can be broadly categorised into two areas, namely, general insurance and life insurance.

General insurance seeks to protect the business’s liabilities and may include the following: • Fire & Extraneous Perils • Public Liability • Work Injury Compensation • Money (in transit and in premises) • Business Interruption • Personal Accident • Electronic Equipment • Fidelity Guarantee • Glass • Burglary

Life insurance, on the other hand, seeks to protect the lives of the business’s key personnel. Business needs may include: • Business Loan Protection • Keyman Protection • Shares Buy-Sell Arrangement

*FATCA: Foreign Account Tax Compliance Act

Capital controls instituted by China that prohibits RMB from flowing abroad and vice versa are being liberalised to facilitate the adoption of RMB internationally. The pace of liberalisation has accelerated from 2009 and we expect the pace to be rapid in coming years.

One Currency, Two Systems

Key Milestones in RMB Internationalisation

To promote internationalisation of the RMB, the Chinese government had introduced the offshore RMB market. CNH refers to RMB that are held offshore, i.e. outside of Mainland China, while CNY refers to RMB that are held onshore. Yuan is a unit of RMB, for example RMB100 can be expressed as 100 yuan.

While RMB is essentially one currency, its onshore and offshore usage is subject to different regulatory restrictions and it trades at two different foreign currency exchange rates. Unlike CNY, CNH interest rates and foreign currency exchange rates are market-driven and less subject to the regulations set by the Chinese government.

Offshore RMB (CNH) can be bought and sold, borrowed and lent, and transferred between any parties outside of China without any restrictions by the Chinese government. Generally, dealing with CNH is similar in dealing with other fully liberalised currencies such as USD, EUR and GBP. Businesses can easily convert offshore RMB into another currency and vice versa. Businesses can also obtain offshore RMB loans or place offshore RMB deposits without regulatory restrictions.

While there are no restrictions on the transfer of RMB between offshore parties, there are transfer restrictions between onshore and offshore parties. Offshore RMB can be remitted to parties in China but it has to be supported by eligible transactions such as trade settlement and capital injection.



8IMF, World Bank and UOB Global Economics and Market Research 9CEIC and UOB Global Economics and Market Research10SWIFT

Renminbi – Rise with the New Global Currency

Renminbi – Becoming a Global Currency

Renminbi (“RMB”), official name of the Chinese currency, has seen rapid adoption by businesses for their trade, settlement and investment activities globally. China is currently the largest trading nation and the second-largest economy in the world. We anticipate that by 2030, China’s economy would have expanded to US$28 trillion, just shy of the US economy’s size of US$29 trillion, but would have exceeded Eurozone’s economic size of about US$20 trillion by then8.

The rise of China, coupled with the establishment of ASEAN Economic Community (AEC) from 2015, is expected to provide new catalysts for growth in Southeast Asia. China’s share of ASEAN’s total trade has more than doubled from 5% in 2000 to 14% in 2010 and to 16% share or US$405 billion in 2013 . With closer integration and relation with ASEAN through trade and investment channels, China’s share could reach 24% or US$1.5 trillion by 20309.

RMB is now used for around 11% of global cross-border payments with China and Hong Kong - a sharp rise compared with about 2% to 8% seen in the last three years. RMB is among the most used currencies globally for trade finance – it overtook the Euro in 2013 for 2nd position. For world payments globally, RMB is currently ranked as 7th most used currency, climbing from 13th and 20th position in January 2013 and January 2012 respectively10.

With China’s growing economic dominance and its continuous currency and capital liberalisation, RMB is or will become an important business currency. Singapore, as a major international financial center, provides RMB access for global businesses. Outside of China and Hong Kong, Singapore is ranked 1st among all offshore RMB centres for RMB payments as at June 2014.



The offshore Renminbi market

The offshore RMB market has expanded significantly in recent years due to several factors. Since the onset of global financial crisis in 2008, global economic attention gravitated from western world to Asia, especially China. Coupled with currency and capital liberalisation by the Chinese government and the establishment of offshore RMB clearing centres around the world; economic and financial activities in RMB recorded phenomenal growth, propelling RMB into its current 7th position as the world’s most used currency.

In 2010, interbank borrowing and lending market for RMB was established outside of Mainland China. Through the interbank market, banks around the world are able to facilitate their customers’ needs for offshore RMB deposits and loans. Today, major financial centres with RMB clearing, such as Hong Kong, Singapore and United Kingdom, offer a suite of financing and hedging instruments in RMB that companies and financial institutions can readily access.

Key Milestones

2002Wealth Investment: Launch of Qualified Foreign Institutional Investor (QFII) programme, allowing foreign investors to bring foreign currency to access stock markets in China within permitted quota. A similar programme, RMB QFII (RQFII), was launched in 2011 that allows foreign investors to use offshore RMB to invest in stocks and bonds in China.

2003Offshore Clearing: Hong Kong was established as the first offshore RMB clearing centre. A clearing centre is used for holding and paying RMB outside of mainland China. Thereafter, clearing centres were established within ten years in Macau, Taipei and Singapore. Offshore RMB deposits and trade settlement began to flourish during this period. We are expecting about 15 clearing centres by end 2015.

2006 Wealth Investment: Launch of Qualified Domestic Institutional Investor programme, allowing Chinese investors to access overseas financial products

2009

Cross-Border Trade Settlement: Launch of pilot programme for designated enterprises in Shanghai and four southern cities to settle trade debt in RMB with Hong Kong, Macau and ASEAN countries. In 2010, pilot programme was extended to 20 other provinces and cities, including Beijing, Tianjin and Xingjiang. Further, current account settlement (including services) in RMB is allowed with any country in the world. In 2011, programme was extended to whole nation. In 2012, scheme expanded beyond designated enterprises to cover any enterprises with export and import scope in its business licences.

2011

Capital Account: Clear rules and application process announced for Foreign Direct Investment (FDI) using offshore RMB to facilitate foreign investors’ direct investment into Mainland China.

Capital Account: Launch of Overseas Direct Investment trial programme to facilitate Chinese investors using RMB to invest in overseas enterprises or projects.

Wealth Investment: Launch of RQFII programme in Hong Kong with initial RMB20bn quota. In subsequent years, the programme was extended to UK, Singapore, France and then to other countries.

2012 Cross-Border Trade Settlement: Full liberalisation for RMB trade settlement by export and import enterprises.

2013

Offshore Clearing: Singapore began offshore RMB clearing and it became an important hub to settle trade finance and treasury related activities in RMB.

Wealth Investment: Singapore was granted RMB50bn quota under RQFII which allows institutional investors to use offshore RMB to invest in Chinese stocks and bonds.

FTZ: Launch of Shanghai Pilot Free Trade Zone. It is a test bed for major financial and economic reforms. Within the zone, RMB can be converted freely for investment and financing, foreign investors can invest freely without entry barriers for service industries such as finance, shipping, business services and entertainment, and RMB can be used for cross-border transactions by enterprises.

2014

Currency Direct Trading: Launch of direct currency trading between RMB and SGD in the interbank market. Businesses benefit from cheaper conversion cost without having to convert through USD.

Through Train: Launch of Shanghai-Hong Kong Stock Connect, allowing two-way Mainland Chinese and Hong Kong investors to trade shares listed on each other’s market.



What it means for businesses

With internationalisation of the RMB, you will find it easier to do business with and/or in China. The table below shows what you can do now in RMB:

Transactions What Can Be Done

Bank Accounts

• Overseas companies can open RMB accounts with banks that can provide RMB Account services outside China11. • Overseas companies with a legal entity in China can open a standard bank account in China for maintaining onshore RMB. • Overseas companies without a legal entity in mainland China can open non-resident accounts in China for maintaining onshore RMB11.

Trade Payment forGoods and Services

• Overseas companies can freely settle trade with each other using offshore RMB • Overseas companies can freely settle trade with mainland China companies using onshore or offshore RMB. These Chinese companies are required to have export and import scope in their business licences.

Capital Injection into China (FDI)

• There are many forms of foreign invested enterprises (FIEs) such as wholly owned foreign enterprises (WOFEs), foreign-invested partnership, equity or cooperative joint ventures and joint stock companies. WOFEs are preferred by investors due to simpler approval procedure and full management control. • Investors can remit offshore funds (including offshore RMB) to investee companies as capital contributions. • FIEs incorporated in special or free trade zones, such as Tianjin-Eco City, Suzhou Industrial Park and Shanghai Pilot Free Trade Zone, may be subjected to lesser restrictions in certain activities such as offshore borrowing and cross border pooling.

Offshore Loans and Bonds

• Overseas companies can borrow offshore RMB from banks outside of China that can provide RMB Account services. • Overseas companies can issue CNH Bonds which are sold to investors outside of China. These bonds are called Lion City bonds in Singapore, Dim Sum bonds in Hong Kong, Formosa bonds in Taiwan and various other names in other countries. • FIEs can borrow in RMB or in foreign currencies from related parties or banks outside of China but the amount of such foreign debt is limited by ‘borrowing gap’. For FIEs in special or free trade zones, it may possibly have higher foreign debt capacity than dictated by ‘borrowing gap’.

11In certain circumstances, client can hold onshore RMB in their accounts with banks outside of China. Such balances are deemed as onshore RMB if the banks are maintaining equivalent RMB balances onshore. Likewise for RMB held with banks in China, it will be deemed as offshore RMB if these banks maintain equivalent balances offshore.



Trade settlement in Renminbi

Today, the RMB is increasingly used in cross-border trade settlement with China. Companies are starting to realise the benefits of using the RMB as a business currency.

How to do it • Open an offshore RMB account with a bank that provides RMB account services to facilitate your trade transactions • Engage your Chinese suppliers/buyers and get them to quote in RMB • Consult your bank to assist you with telegraphic transfer or trade financing

Benefits • Gain access to more Chinese suppliers when you use their currency • Enjoy preferential pricing from your Chinese suppliers when you quote in RMB • Optimise your exchange rate risk management and reduce FX conversion cost

Business expansion in Renminbi

Overseas companies having business operations in China through their foreign invested enterprises can make effective use of RMB to support its business expansion.

How to do it • Its FIEs can finance from banks in China (onshore RMB) or bank outside of China (offshore RMB). It is usually cheaper to borrow from offshore but borrowing amount is limited by “borrowing gap”. • Overseas companies can borrow offshore RMB from banks outside China and inject funds into its FIEs in the form of equity (see special note below on capital injection) or intercompany loan. Such intercompany borrowing by its FIEs is subject to “borrowing gap”. • For FIEs in special or free trade zones, there is more flexibility in determining the maximum amount of its foreign debt.

Benefits • Participate in China’s growth story by growing your onshore operations • Manage your currency risk by matching borrowing currency with revenue and expenses • Benefit from competitive funding cost as offshore funding tends to be cheaper onshore funding • Offshore funding can be important alternative funding source, especially during tightened credit conditions in onshore market

Remitting dividends/Profits in Renminbi

FIEs can remit dividend and payouts to its foreign investors without requiring case-by-case approval. Withholding tax of 5% applies to payments to countries with double taxation agreements (DTAs) with China, such as Singapore, UK, and Hong Kong. Withholding tax of 10% applies to counties without DTAs.

How to do itThe transfer of an RMB dividend payment offshore can be done without requiring case-by-case approval. You can approach any commercial bank in China that is qualified to process cross-border trade settlement to arrange for the remittance of RMB dividend payment offshore.


Product Type

Remittance

Account

Deposit

Product

Remittance

Offshore RMBCurrent Account

Offshore RMBFixed Deposit

Features

• Interest-bearing account • No minimum balance • No initial deposit

• Earn interest • Favorable exchange rates

• Make and receive RMB payments to and from China • Make and receive RMB payments to and from rest of the world • Buy/sell offshore RMB • Buy/sell onshore RMB for eligible trade transactions

How to do it?

The process is the same as the usual account opening for other foreign currencies.

For remittance with foreign exchange (FX) conversion using an onshore (CNY) rate:To be compliant with MAS regulations, CNY (onshore) rate conversion is only allowed for trade transactions with sale/purchase of goods that are delivered to/from China or with a trading company located in China. The transaction must also be made before or after three months from the payment due date depending on whether it is a sale or purchase of goods.

To ensure compliance with the above, the following supporting documents (where applicable) will be required: • Customs declarations • Relevant export or import document, such as bill of lading, delivery orders • Financial documents such as letters of credit • Commercial documents such as a sales contract • Documents evidencing insurance and freight charges for eligible cross-border trade

Outward remittancesNo supporting document is required for outward remittances without FX conversion. For transactions with FX conversion using an offshore (CNH) rate, a supporting document is not required. Please indicate the reason for making the payment in the ‘payment details’ field in the Telegraphic Transfer Application form, for e.g., ‘payment for purchase of computer’, ‘capital injection’.

Inward remittancesTo receive offshore and onshore funds, quote the following standard settlement instructions:

The process is similar to placement of fixed deposit for other foreign currencies.

Paymentreceived from:

Payment Instruction(to be given to sender)

Mainland ChinaICBC SingaporeBIC: ICBKSGSGCLRCNAPS No. 102100099988

ICBC Singapore(BIC: ICBKSGSGCLR)Correspondent Bank:ICBC (Asia) Hong Kong,BIC: UBHKHKHH

Hong Kong andrest of the World

ICBC Singapore(BIC: ICBKSGSGCLR)Correspondent Bank:Bank Sinopec BIC: SINOTWTP

Taiwan


Banking services to help your RMB business

Banks with established RMB operations can provide essential products and services to facilitate your RMB business needs. Using services provided by UOB as an example, the table below shows the main services required by overseas companies.



Product Type Product Features How to do it?

Trade Trade Financing • Issue Letters of Credit • Advise Letters of Credit • Negotiate Letters of Credit • Transferable Letters of Credit • Export Documentary Collections • Import Documentary Collections • Banker’s Guarantee • Provide customers with FX rates for settlement of trade transactions

Consult the bank to learn more about RMB trade financing.

ForeignExchange

Foreign Exchange • FX spot • FX forward (deliverable) • Non-deliverable forward • FX options • Cross currency swap

Usage of these FX instruments in RMB is the same as FX instruments in other currencies. These instruments provide hedging against currency mismatch between your funding and assets or between receipts and expenditure.

Note: All information shown above is only for general reference. Businesses should consult their bank for its latest fees and requirements.

Contributed by United Overseas BankShape your future in Asia with the region’s leading bank

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LEGAL IN SINGAPORE

Singapore’s Legal Framework

Singapore is a sovereign republic, with a legal system based on the English common law. The legal system comprises three major sources of law, derived from the Constitution, legislation and judge-made Law (often referred to as case law or common law).

The foundation to the legal system in Singapore is provided by the Constitution which lays down the supreme law of the land and provides basic framework for the three organs of state which constitutes the executive; the legislature and the judiciary.

• The executive includes the positions of the Elected President, the Cabinet (Prime Minister and Ministers) and the Attorney -General. • The legislature comprises the Elected President and Parliament and is the legislative authority responsible for enacting legislation. The President’s assent is required for all bills passed by Parliament. • The judiciary consists of the Supreme Court and the Subordinate Courts. The head of the judiciary is the Chief Justice.

Legislation refers to acts enacted by Parliament and subsidiary legislation made by relevant authorities pursuant to the powers given to them by the constitution. The common law on the other hand is not codified or set out in statutes but are judgements delivered by the Courts of Singapore. Once a case has been decided it will be binding on any future cases with similar facts and issues depending on the hierarchy of the deciding court. Generally, decisions of a higher Court would bind cases heard in the lower Courts.

Competition Act

Enacted in 2004, the Competition Act aims to enhance the competitiveness of the economy of Singapore by prohibiting certain anti-competitive business activities. Given that the intent of the Act is to regulate the conduct of market players, all business entities (including foreign, domestic and government-owned entities) are required to comply with the Competition Act.

There are mainly three types of activities prohibited under the Competition Act. The first type of activity is making agreements, decisions and practices that prevent, restrict or distort competition in Singapore. An example of such activities is agreeing with competitors to fix prices, limit the volume of productions or share markets. However, certain agreements are exempted from the provisions of the Competition Act. For example, vertical agreements entered into between two of more businesses (where each business operates at a different level of the production or distribution chain) are generally not considered as anti-competitive agreements under the Competition Act.

The second type of activity is the abuse of a dominant position. Though being dominant is not against the law, when a dominant player in a market uses its power to unduly restrict competition, such an action may be considered as abuse. Abusive tactics may include exclusive

dealing, where the dominant player binds other businesses into working exclusively with itself, or predatory pricing, where the dominant player sets extremely low prices to drive competitors out of the market.

The third type of activity is a merger that substantially lessens competition within any market for goods and services in Singapore. For example, when the merged entity has and/or will have a market share of 40% or more, a merger may be considered to be anti-competitive. Also, when the merged entity has and/or will have a market share of between 20% and 40% and the post-merger combined market share of the three largest firms will be 70% or more, the merger may likely be anti-competitive.

The Competitive Commission of Singapore (“CCS”) has the powers to investigate and adjudicate anti-competitive activities and to enforce the Competition Act. In particular, CCS will focus on activities that have appreciable adverse effect on competition in Singapore. CCS may launch a formal investigation, where it has reasonable grounds for suspecting that the Competition Law has been infringed. Among other powers, CCS is empowered to issue a written notice to require businesses to provided documents and information, and to enter any premises (with or without a warrant) to carry out inspections.

Arbitration

Arbitration is a form of alternative dispute resolution between parties outside the courts by a neutral tribunal comprising one or more persons, called arbitrators, by whose decision the parties agree to be bound by. The agreement to refer disputes to arbitration is usually provided for in a contract. If no such agreement exists, the dispute cannot be referred to arbitration.

There are several key points to consider if arbitration or litigation is preferred in any particular case.

• a neutral jurisdiction; • matters to be kept confidential; • the decision-maker to have specialised knowledge and skills; • a judgement to be enforceable in multiple jurisdictions; or • a flexible process.

• both parties are based in Singapore; • no confidentiality is required; • there is no need for the decision -maker to have specialised knowledge or skills; or • a judgement to be enforced in Singapore.

Arbitrate whenthere is a need for:

Litigate before localcourts when:

Singapore has revised its International Arbitration Act in 2012, which is based on the Model Law on International Commercial Arbitration adopted by the United Nations Commission on International Trade Law. One of the objectives of this International Arbitration Act is to give effect to the New York Convention and Enforcement of Foreign Arbitral Awards.



Parties are generally free to choose the procedure for arbitration in Singapore, including the rules which apply. However, the procedures they select must comply with any applicable mandatory rules and public policy requirements of the law of the place of arbitration. Below is a typical arbitration process.

Oral Hearings

Closing Submission

Award

Response tothe Notice

of Arbitration

Appointment ofthe Tribunal

Notice ofArbitration

Preliminaryconference with the

Tribunal

Filing of Pleadings

Filing of WitnessStatements

Merger and Acquisitions

2014 was a flourishing year for mergers and acquisition ("M&A") in Singapore. The M&A Attractiveness Index 2013 published by the Cass Business School had ranked Singapore as the third most attractive place for M&A worldwide, after the United States and South Korea. According to a Thomson Reuters report of the recently concluded year, Singapore saw a sharp increase in M&A deals with 450 worldwide announced M&A deals with a rank value of US$ 35.6893 billion as compared to 368 deals in 2013 valued at US$12.4623 billion.

A survey by Deloitte exploring growth strategies in Southeast Asia indicates that 50% of Singaporean-based companies look to M&A for growth, and cross-border deals are expected to increase, with a focus on emerging markets such as Indonesia and Myanmar. Singapore presently enjoys a conducive landscape for growth via M&A, and the Singapore Budget 2015 has reiterated the Singapore Government’s intention to spur M&As activity by extending an increase in tax allowances and other benefits.

Sources:http://www.cass.city.ac.uk/__data/assets/pdf_file/0007/206683/MARC-M-and-A-Attractiveness-Index-2013.pdfhttp://share.thomsonreuters.com/general/PR/MA-4Q14-%28E%29.pdfhttp://www2.deloitte.com/content/dam/Deloitte/sg/Documents/tax/sg-tax-budget-commentary-2015.PDF

Dispute Resolution in Singapore

There are several options for resolving commercial disputes in Singapore, for instance, litigation, mediation and arbitration. This article focuses on the parties’ obligations to disclose relevant documents as part of the litigation process.

The litigation process in Singapore begins with either an issue of a Writ of Summons (“Writ”) or an Originating Summons. The latter is used where required by statute, or if the dispute is concerned with matters of law where there is unlikely to be any substantial dispute of fact. If the value of the claim exceeds S$250,000.00, the action has to be commenced in the High Court of Singapore. The Magistrates’ Courts and District Courts (part of the State Courts of Singapore) hear claims where the amounts in dispute do not exceed S$60,000.00 and S$250,000.00 respectively.

After the Writ is served on the defendant, the defendant has 8 days thereafter to indicate that he or she wish to contest the claim by filing a Memorandum of Appearance. If the Writ is served out of jurisdiction, the defendant has 21 days to enter an appearance. The defendant has another 14 days thereafter to file a Defence or a Defence to Counterclaim.

Subsequently, the plaintiff has another 14 days to serve on the defendant his or her response to the Defence (either a Reply or a Reply and Defence to Counterclaim).

The Writ, Defence and Reply are collectively referred to as pleadings. Generally, pleadings are deemed closed 14 days after service of the Reply. A number of interlocutory applications may be taken up by either party to the proceedings thereafter. The plaintiff can apply for summary judgment if, for instance, he believes that the defendant is unable to raise any triable issues. The defendant can take up an application to strike out the plaintiff’s action if, for instance, the defendant believes that the Writ does not disclose any reasonable cause of action. After these interlocutory applications are resolved and the action is to proceed to trial, parties will be required to disclose relevant documents in their possession, custody, or power as described below.

Discovery in legal proceedings

One of the processes during legal proceedings is “discovery”. This process involves the disclosure and production of documents held or controlled by the parties that are relevant to the issues in dispute. The obligation to disclose relevant documents is an obligation that continues throughout the legal proceedings.

Parties are required to disclose (a) all documents which party have relied or will rely on, (b) all documents which could adversely affect one’s case or the other parties’ case, and (c) all documents which could support the other parties’ case. In other words, even adverse or potentially adverse documents must be disclosed.

The contents of privileged documents need not be disclosed to the counterparty. Such documents include communications with your solicitors and/or documents created for the purpose of your solicitors giving you legal advice or for the purpose of your receiving legal advice from your solicitors. In Singapore, legal advice given by in-house legal counsel to their companies’ management or staff is covered by this privilege. In addition, privilege can generally be claimed over any documents made for the sole or dominant purpose of a lawsuit.

The importance of disclosing all relevant documents is sometimes not appreciated by litigants. Poor discovery could very well undermine one’s case at trial. For instance, if a particular piece of document is only produced late in the proceedings, the evidence may well be rejected by the Court on the basis that the document ought to have been disclosed earlier during discovery.

Failure to provide proper discovery can also lead to the extreme consequences, in which the appellate court chooses to set aside the trial judge decision and to order a retrial, as seen in Teo Wai Cheong v Crédit Industriel et Commercial [2011] SGCA 13. In this case, the Court of Appeal concluded that the first High Court Judge’s findings of facts could well have been different if certain evidence (which was not disclosed) was placed before the High Court, and thus ordered a retrial. The decision of the second High Court Judge also went on appeal, and the decision of the second Court of Appeal is reported as Teo Wai Cheong v Crédit Industriel et Commercial and another appeal [2013] 3 SLR 573. The second Court of Appeal made several pertinent observations on litigants’ discovery obligations, including the point that in-house legal teams are expected to make reasonable inquiries and to initiate elementary steps to understand what exactly the company’s discovery obligations are.

The term “documents” has a broad definition and includes not only papers, but anything in which information is recorded. Documents which must be considered for disclosure include computer printouts, e-mail, internal memorandums, photographs, plans, drawings, video and sound recordings, microfilm records as well as computer databases.

Once the relevant documents have been identified, the documents



should be preserved in their existing form and no amendments or redactions should be made. Documents which are potentially relevant to the dispute should not be destroyed or marked in any way. The importance of keeping relevant documents intact is highlighted by the High Court in K Solutions Pte Ltd v National University of Singapore [2009] 4 SLR(R) 254. In this case, the Judge opined that if the party disclosed that he once had certain documents but it was established that he had deliberately destroyed them so as to put the documents out of reach of the other party, the Court might order that the action be dismissed or, as the case might be, an order that the defence be struck out and judgment be entered accordingly.

Even if the documents stored in electronic forms (including documents and emails) are deleted and/or destroyed, litigants ought to be aware that these documents may still be retrieved and/or recovered with the assistance of computer forensic experts.

It is therefore pertinent that businesses and individuals make a conscious effort to preserve documentary evidence so as to assist in either the prosecution of a claim or its defence. The Court gives due weight to documentary evidence in preference to verbal evidence because the former is more reliable and not subject to whether the witness’ recollection of the events is complete or accurate.

Listing in Singapore

There are many reasons why a company may decide to go for a public listing. Access to capital, increased liquidity, unlocking shareholder value and improved global profile and prestige are just some of the reasons. Choosing the right stock exchange to list on is therefore very important to achieving the goals that the company intends to achieve upon its listing.

Advantages of listing in Singapore

Singapore is ranked as one of the best places in the world to do business for the past 7 years12. It has positioned itself as the wealth management hub of Asia. It is recognised as a dynamic global financial hub with estimated total assets of more than US$2.4 trillion under management. This provides ready funding for the growth of international companies seeking to raise capital in Singapore both at IPO and subsequent follow-ons. During the credit crunch in 2009, SGX listed companies raised over US$15 billion in follow-on funding from the capital markets, one of the highest secondary fund-raising efforts in Asia that year13.

There are currently over 760 listed companies on the Singapore Exchange Securities Trading Limited (“SGX-ST”) with approximately 40% of those being foreign listings14, thus making the SGX-ST a very international exchange.

The SGX-ST also has two boards on which a company may list. The Mainboard caters to more established companies who meet certain quantitative requirements. The sponsor-supervised board (“Catalist”) does not have minimum quantitative requirements and caters more to young, fast growing companies. Sponsors are qualified professional companies experienced in corporate finance and compliance advisory work. The key benefits of listing on Catalist include (i) faster time to market; (ii) easier subsequent fundraising, acquisitions and disposals; and (iii) ongoing Sponsor guidance.

All this, combined with the SGX-ST’s reputation as a recognised, regulated exchange providing a fair, orderly and transparent market for the trading of securities, make the SGX-ST an attractive option for both local and international investors and an important avenue for Singapore and foreign companies to raise long- term capital.

Listing Requirements

The following help the SGX-ST maintain a stringent but market-oriented, disclosure-based regulatory regime that is reputed for its efficiency, market transparency and integrity.

Main Board Catalist

Quantitative Criteria

A company applying for admission to SGX Catalist need not meet any minimum operating track record, profit or share capital requirement but will need to engage a sponsor that will assess the suitability of the company for listing and thereafter, prepare them for listing.

Although there are no quantitative requirements for listing on Catalist, the directors and Sponsors of companies listing on Catalist must state, without a profit forecast, that in their reasonable opinion, the working capital available to the company is sufficient for the present requirements and for at least 12 months after listing.

Criteria 1Minimum consolidated pre-tax profit (based on full year consolidated audited accounts) of at least S$30 million for the latest financial year and has an operating track record of at least three years.

Criteria 2Profitable in the latest financial year (pre-tax profit based on the latest full year consolidated audited accounts), has an operating track record of at least three years and has a market capitalisation of not less than S$150 million based on the issue price and post-invitation issued share capital.

Criteria 3Operating revenue (actual or pro forma) in the latest completed financial year and a market capitalisation of not less than S$300 million based on the issue price and post-invitation issued share capital. Real Estate Investment Trusts and Business trusts that meet the market capitalisation test but do not have historical financial information may apply under this rule if they are able to demonstrate that they will generate operating revenue immediately upon listing.

12The Economist Intelligence Unit13SGX website14SGX website



Main Board Catalist

Moratorium on Promoters15

Public Float Requirements

Number of Shareholders

Directors and Management

Resident Independent Directors

Financial Reporting

Not allowed to sell entire shareholding for 6 months after listing and 50% or more for the next 6 months

Criteria 1 and 2 – Not allowed to sell entire shareholding for 6 months after listing.

Criteria 3 – Not allowed to sell entire shareholding for 6 months after listing and 50% or more for the next 6 months.

12-25% of enlarged share capital in public hands, depending on market capitalisation after listing.

15% of enlarged share capital in public hands.

At least 500. At least 200.

At least 2 independent directors must be resident in Singapore. At least one independent director must be resident in Singapore.

1. The directors and executive officers should have appropriate experience and expertise to manage the group's business. The character and integrity of the directors, management and controlling shareholders will also be considered.2. The issuer's board must have at least two non-executive directors who are independent and free of any material business or financial connection with the issuer.3. A foreign issuer must have at least two independent directors.4. An Audit Committee is required.

Companies may prepare their financial statements in compliance with (i) Singapore Financial Reporting Standards; (ii) International Financial Reporting Standards; or (iii) US Generally Accepted Accounting Principles.

Miscellaneous

Whilst Catalist admissions are usually faster because the admission process is slightly different, the time to market for all listings is typically 9 months to 15 months depending on how ready the listing group is and how extensive its group of companies is.

Key professional parties in a listing exercise include the Issue Manager / Sponsor, Legal Counsel(s), Auditors, Business Advisors and Public Relation Consultant.

Contributed by: Colin Ng & Partners LLPEstablished in 1988, CNP is a full-service law firm with a

talent for cross-border business.

15Controlling shareholders and their associates and executive directors with an interest of 5% or more at the time of listing.

BUSINESS &RESIDENTIAL

SPACE SOLUTIONS

BUSINESS &RESIDENTIAL

SPACE SOLUTIONS


SINGAPORE BUSINESS FEDERATIONBUSINESS & RESIDENTIAL SPACE SOLUTIONS

BUSINESS SPACE SOLUTIONS

Serviced Office Solutions

If you are seeking a workspace that gives you flexibility but can't afford a substantial capital outlay, then a serviced office solution may be the answer.

What is a serviced office?

Unlike a blank office unit with which you are free to furnish as you like (once the landlord hands you the keys of course), serviced offices come already complete with all the usual fittings required to run most businesses.

In land-scarce Singapore, the cost of setting up a business in the CBD area is considerably high. In recent times, there is an increasing number of serviced offices opening up in the city fringe areas packed with accessibility and not to mention a wide range of amenities. Serviced offices located in the city fringe areas are priced at a lower cost, suitable for businesses seeking better value. At the barest minimum, serviced offices offer a workstation accompanied with administrative support services such as answering calls, handling mail, housekeeping, etc.

Is a serviced office for you?

Serviced offices come in a variety of configurations, but most are set up such that you can move in, unpack and start running your business immediately. Therefore, serviced offices are suitable for business owners who do not wish to spend too much time and resources on setting up an office. Because of their lower start-up cost and quick turnover, serviced office is an affordable option suitable for entrepreneurs or part-time business owners. The additional support services included helps a business owner by providing printing, telephone and messaging, mail, fax and courier services under one roof. Business owners can have better control over business overheads while saving on staff costs for admin personnel. It is also common for serviced offices to come with shared use of meeting rooms, pantry and lounge areas. Most centres offer a plethora of centralised services, including secure 24/7 access and security as well as in-house IT support.

Serviced offices are also suitable for varied uses; long-term offices, temporary offices while their office is under-going renovation, project offices, branch offices and day offices. The bottom line is, serviced offices offer a high degree of flexibility.

What does a serviced office typically comes with?

There are varied options on the market and the level of amenities, fittings and support services included is dependent on the package of your choice. This provides a high degree of flexibility, as you will be able to choose exactly what you need. Peruse the following list for an idea of

what a serviced office provides. • A distinguished business address• Centralised management of mail, fax and courier services• Receptionist and guest welcoming areas • On-site centre manager and experienced support team • Printers, fax machines, scanners, copiers and essential office equipment • High-speed broadband Internet access using LAN Cable and WiFi • In-house IT maintenance and support • 24x7 access and security with CCTV surveillance• Office furniture including worktables, executive chairs, mobile pedestals and filing cabinets• Voice conferencing-capable digital telephones and dedicated telephone numbers with call answering in your company name• Fully furnished conference/meeting and video conferencing rooms• Fully stocked pantries • Daily housekeeping services

What is the pricing structure of a serviced office?

The pricing strategy of a serviced office suite differs in the market. Most serviced office operators’ charge a basic license fee and add-ons are charged based on a pay-per-use basis. Others charge an all-in rate, inclusive of telephone and Internet and other requirements. Compared to a traditional office that quotes based on a per square foot and bare unit basis, the charges for a fully furnished serviced office suite is dependent on the number of persons per room or room size and enjoy all the facilities provided by the serviced office provider.

Virtual Office Solutions

A virtual office is the most brilliant solution for businesses that desires the benefits of a physical office but not the space. Having a virtual office means that they can obtain a business address and a full-time receptionist to answer calls and handle mail at a low-cost. In addition, they may have access to hot-desking and meeting rooms on a pay-as-you-go basis. Acquiring a virtual office allows business owners to work anywhere, anytime and yet maintain their professional image. Additional monthly ad-hoc services can be easily setup if required. Another benefit from a virtual office is the smooth transition to a serviced office when the business grows and requires a physical space.

Cost Effective

Finances are crucial especially for start-up companies and a virtual office will make a big difference to your outgoings as compared to the costs associated with leasing a traditional office space. To rent a traditional office, a business owner will be looking at fixed overheads such as rental fees, telephone and internet subscription charges and administrative support personnel to take care of. A virtual office is only at the fraction of the price of renting a physical desk at a serviced office.



Professional Business Address

The most basic virtual office package will incorporate a professional business address. A professional address will alleviate the privacy as well as security concerns of running your business. Also, it provides business owners with a professional mailing address that they can use for receiving and delivering mails without the negative connotations of using a PO Box.

Answering and Forwarding Services

If you opt for a virtual office call answering service, it will mean that your business calls will be answered by professional receptionists who will either transfer your calls to your mobile directly or they can take messages which will be forwarded to you via Email. Mail can also be forwarded to an alternate address, saving you precious time of picking them up yourself.

Hot-desking

Depending on your needs, some virtual office packages consist of a number of hot-desking hours. This can be used should you require the use of a physical office occasionally.

Meeting Room/Video-conferencing Room Rental

Being a virtual office user enables the booking of meeting rooms at an affordable rate. These meeting rooms come inclusive with hot beverages and the usage of Internet, projector screens and whiteboards. Video-conferencing is an additional service a virtual office provides, enabling you to communicate across borders in a professional meeting room setting.

Expansion

For start-ups and foreign companies that are interested to expand into new markets, a virtual office provides this possibility at a low capital cost with low risk.

Contributed by: GreenHub Suited OfficeSuited Offices for Born Global Firms



Commercial Real Estate Solutions

Commercial real estate is any non-residential property that is exclusively used for business activity such as stores, malls and office buildings. As a clear standout within Asia for commercial business opportunities, Singapore’s commercial real estate is a varied and prominent market. Finding the right commercial real estate solution is the vital first step when setting up operations in Singapore.

Overview of Landscape

Singapore’s active commercial sector means the island-wide vacancy rate ended the year relatively low, only at 4.7%. This indicates relatively high competition for the prime commercial spaces, and this is a trend expected to continue in the coming months. However, when negotiating long-term strategies, the variable nature of the commercial segment should be acknowledged. The possibility of a more deteriorating outlook for the financial services industry and the energy industry may bring about a lessening of the rental rate increases that have recently be seen. As such, possibly at the end of 2015 and into 2016, businesses venturing into Singapore could take advantage of these lessening prices.

Indeed, for how globally recognised a commercial hub Singapore is, in fact their prices are extremely competitive. This is shown by in fact Singapore is only the Asia-Pacific region’s eighth most expensive business hub for prime office rents. Globally Singapore stands at the 14th most expensive for local office space. This fact should be particularly taken note of by potential investors and businesses looking to set up a foothold in Singapore’s commercial industry. Taking the third quarter of 2014 as an example, rents per sq. ft were on average US$112.90. The office segment of Singapore’s commercial property market particularly drove competition this past year, driven by progressively lessening of supply and rental increases as a result. The retail market in Asia is also highly active, due to the increased spending power of the younger generation, the rapid growth in middle-class families and the sustained pace of urbanisation across the continent. An increase in consumer spending in 2015 is very possible, creating even more opportunity for new business ventures into Singapore.

Latest developments

In the last quarter of 2014, Singapore dominated the commercial property investment activity in Southeast Asia, accounting for 66% of the combined investment volume within Singapore, Malaysia and Thailand. It was the office sector that led the investment activity throughout 2014, accounting for 30% (US$5.2 billion) of the total property investment arena. Significant office transactions this past year that pushed the activity of this sector included TripleOne Somerset and OUE Bayfront, both incredibly successful and profitable acquisitions for the companies involved.

The prominence of the office sector was shown by the decline in activity overall of the real estate industry in the last quarter of 2014 being directly correlated to the slowing down of the activity of the office sector. However, for the year as a whole it was the sector driver in terms of real estate sales. While investors were attracted by the expected rental appreciation, investment activity was constrained by limited stock and yield gap in pricing expectations between sellers and buyers.

Direct commercial property investments in Asia Pacific surged by 40 percent to US$42 billion (S$56.14 billion) in Q4 2014 on a quarterly basis, bringing the full year volume to US$128 billion (S$171.08 billion). Singapore’s central locality and it being a major business hub, not just in Asia, but worldwide, means they remain a prominent business market and will so for the foreseeable future.

Future plans of Singapore

Singapore’s office market will continue to attract investors due to the expected rental growth this coming year. Limited availability of office space will continue through 2015, with the continuing trend of rising rentals in response to the low vacancy rates. Relief is only expected when the next wave of significant new office space comes in the second quarter of 2016. As time gets closer to this future supply and word spreads, rentals rates are expected to lessen later in 2015, but until then we anticipate further rental growth, particular in the next few months at the start of 2015.

For investors looking at the Asia Pacific region as a whole, while Chinese investment may continue to dominate the headlines targeting all regions across the Asia Pacific, it is Singapore that remains the dominant player. Singapore has recognised the increasing demand and has put in place strategies to meet this strong investment demand. This as discussed will come to the fore and be completed at the start of 2016.

Industrial Real Estate Solutions

When setting up operations in Singapore, finding the right real estate solution for your business is the vital first step. Industrial space in Singapore refers generally to non-commercial, non-retail business space. This includes high-rise factories, warehouses, and business park and science park space. Singapore’s industrial real estate solutions are varied and expansive, with opportunities available for any possible business venture in this vibrant business hub.

Overview of Landscape

The industrial real estate industry in Singapore is expected to have a mixed outlook for this year. There will be higher resiliency from properties with longer tenures as they are in limited supply since the Government has halved the maximum tenure of industrial sites sold under its land sales programme from 60 to 30 years. There will continue to be stiff competition for properties with 30 year tenures in response to this and the Government’s emphasis on their industrial land sales programme in recent years. While properties with shorter tenures are in this respect more vulnerable, they still should be considered for more cost-effective solutions. Indeed, industrial property prices are expected to drop by around 3% this coming year. This will herald in a more budget-focused business arena with greater possibilities of more economical industrial retail solutions for new companies entering into Singapore. Industrialists are expected to remain cost sensitive and therefore take longer to evaluate their business space needs. This is strongly recommended for Singapore’s current industrial retail market.

With the backdrop of the fragile global economic outlook that continues to weigh on Singapore’s manufacturing sector, Singapore’s industrial landscape will remain prominent globally, however on a local level there will be more complex financial decisions to be made.

Latest developments

Singapore’s industrial sector is incredibly active and accounted for US$1.2 billion (S$1.59 billion) of the property deals during the last quarter of 2014, that is, 41% of the property market in Singapore. Even so, owners of multi-tenanted industrial spaces tended to lower their rental expectations in the last quarter of 2014 due to the fierce competition for qualified tenants. Specifically, a trend seen in the last quarter was how rents of ground-floor factory space dropped only by 1.6%, whereas rent of upper-floor premises dropped by 2.4%. It should be noted however that the average monthly gross rent of prime conventional ground-floor premises grew by 1.2% for the whole of the year. This was an increase from 0.8% in 2013. This is in contrast to the compression of rents of upper-floor premises that shrank overall by 4.6% last year, in contrast to it remaining unchanged in 2013. At the end



of the year ground floor rentals stood at an average of $2.53 psf, with upper-floor premises being $2.07 psf on a quarterly basis. These trends should be considered carefully when choosing the specific location of your industrial premises.

In terms of conventional warehouse space, this past year saw a continuous trend with every passing quarter of average monthly gross rents of both ground-floor and upper-floor premises dropping by between 1-2%. At the end of the year ground floor premises stood at an average of $2.49 psf and upper-floor premises at $1.96 psf. This was an overall drop across the year of 4.2% and 7.5% respectively. This identifies a key investment opportunity for new companies now wanting to venture into the Singapore market. In comparison, prices are less competitive within rentals for business parks that saw annual progressive growth in monthly rents. However, with the overall growth being only 1.5%, these industrial premises should not be overlooked as still a cost-effective option if they are the best solution to your business needs.

For Singapore’s conventional factory spaces, the most expensive industrial real estate area, ground and upper-level prime spaces were going for the significant capital of S$863 per sqft and S$736 per sqft on average, respectively. Equally demanding was warehouse spaces, where ground and upper-floor spaces were worth an average of S$663 per sqft and S$587 per sqft, respectively.

Future plans within Singapore

Looking ahead to this coming year, we expect that rents of multi-tenanted conventional industrial real estate to decline further simply due to mounting supply pressures. In addition, those companies who are looking for immediate availability for industrial space of at least 100,000 sqft may struggle initially in finding a suitable premise this year.

While rents for multi-tenanted real estate properties may continue to ease due to the increased stated supply pressures, we expect that rents for properties with higher building specifications could see some relative increases in prices. These would include properties that may be tightening in supply, such as those located within business parks as well as independent high-spec buildings. Unless the gap in price expectations between buyers and sellers can be bridged, transaction activity in the strata-titled industrial property sales segment is likely to remain passive below the 2000-unit level.

For businesses looking to establish themselves in Singapore, they will want to take advantage of this expected downward pressure on overall industrial property prices.

Contributed by: LHN Group Pte LtdCreating Productive Environments. Generating Values.



The Ideal Location

The ideal location for your industrial business depends on the nature of your intended activities, for instance, manufacturing, logistics, research and development or shared services. While the obvious choices are locations close to suppliers, transport hubs, or knowledge communities, it is important to note that under the Master Plan 2008, industrial land use zones are classified as: a. Business Park; b. Business 1 (B1); c. Business 2 (B2).

Business Park

These are areas set aside for non-pollutive industries and businesses that engage in high technology, research and development, high value-added and knowledge-intensive activities. Examples include Changi Business Park, International Business Park, one-north comprising Biopolis, Fusionopolis and Mediapolis, and the Singapore Science Park.

Business 1 (Light industrial)

These are areas for industry and warehouse uses for which the relevant authority (National Environment Agency) does not impose a nuisance buffer greater than 50m. B1 spaces such as Techplace I, Techplace II and Techlink require building specifications (floor loading, floor to ceiling height, power supply allocation) that are suitable for industries such as electronics and infocomm technology (ICT).

Business 2 (Heavy industrial)

These are areas for industry and warehouse uses whereby the relevant authority (National Environment Agency) will impose a nuisance buffer greater than 50m and within health and safety buffers. Industries like food preparation and manufacturing, data centres and heavy equipment assembly will generally fall under this category.

Determining your Business Space Requirements

Next, as most industrial space in Singapore are in multi-storey buildings, it is important to determine the technical space requirements for your business activities. For example, data centres tend to have specific infrastructure requirements, such as high floor-to-ceiling height, more ancillary space for back-up power generators and dual electrical feed from two power substations. Wet lab research and development activities require spaces with provisions for ductwork and floor traps. Manufacturers using heavy machinery require spaces with higher floor loading, higher clear ceiling height for hoisting equipment, and loading bays.

Having such information on hand will allow the landlords to identify an appropriate space for your operations. If your company has short to mid-term expansion plans, you may want to take those expansion plans into consideration. Expanding within the same premises will give you the advantage of maximising operational efficiency.

Options for Business Space Financing

Depending on your business strategy, capital and financing needs, you can opt to either lease, or purchase and own the space.

Leasing can be a preferred option for businesses looking to better utilise their cash to finance business activities rather than real estate. Leasing ready-built facilities will allow you to start your operations quickly. Ready-built facilities are generally available for lease for three years with an option to renew for another three years based on prevailing market rental rates. Flexible lease tenures may also be available, for example, a five-year lease with an option to renew for three or more years.

Besides ready-built facilities, companies may also opt for greenfield build-to-suit solutions. These are solutions where a developer builds the new facility on a turnkey basis according to the company’s specifications and structures a long-term lease.

Partnering a Reliable Landlord

In Asia, it is also important to find the right landlord to be your business space solutions partner. A landlord with a proven track record in serving a diverse clientele of corporate customers – multinational corporations, leading Asian companies and small & medium enterprises across different industries – demonstrates its ability to service a broad range of businesses of different sizes.

Besides strong financials, a reliable landlord should also possess the right capabilities to ensure your operational success. These include strong facilities management capabilities, good customer service solutions, and readily-available customer service platforms.

If your company has plans for regional expansion, partnering a landlord with a strong portfolio of real estate solutions in Asia can be an advantage, giving you ready access to a wide variety of space solutions across different markets.

Contributed by: Ascendas Pte LtdAsia’s leading provider of business space solutions with

more than 30 years of experience



JTC’s Next Generation Industrial Facilities

JTC Corporation (JTC) is the lead government agency responsible for the development of industrial infrastructure to support and catalyse the growth of industries and enterprises in Singapore. Landmark projects by JTC include the Jurong Industrial Estate; the Jurong Island for energy and chemical industries; business and specialised parks such as Airport Logistics Park of Singapore, International Business Park, Changi Business Park, Seletar Aerospace Park, CleanTech Park and Tuas Biomedical Park; a new work-live-play-learn development called one-north; and the Jurong Rock Caverns, Southeast Asia’s first commercial underground storage facility for liquid hydrocarbons. JTC also develops next generation industrial facilities such as JTC Surface Engineering Hub @ Tanjong Kling, JTC MedTech One @ MedTech Hub and JTC Food Hub @ Senoko, which incorporate innovative features and shared infrastructure to enable industrialists to start their operations quickly and enhance productivity.

These are some of JTC’s latest developments to support industries and enterprises in Singapore.

Seletar Aerospace Park

Seletar Aerospace Park spans 320 hectares of purpose-built land and infrastructure, including the Seletar Airport. The integrated aerospace park is home to 45 companies engaged in a wide range of activities including maintenance, repair and overhaul (MRO) of aircrafts and components, manufacturing and assembly of aircraft engines and components, business and general aviation and training and R&D.

Companies at the Seletar Aerospace Park stand to benefit from economies of scale and increased efficiency. The park’s shared infrastructure and close proximity to suppliers, customers and partners within a tight-knit aerospace business community also give a significant boost for new industry collaborations.

Following the good response to the ready-built facilities at JTC Aviation One and JTC aeroSpace, JTC is developing the 11-storey JTC Aviation Two to provide more space for SMEs specialising in parts supply management and MRO of aircraft components. It is also expanding JTC aeroSpace by adding another seven units of land-based factories to complement the existing eight units.

Tuas Biomedical Park

Tuas Biomedical Park is a world-class manufacturing hub, hosting process development and manufacturing operations of major pharmaceutical, biotechnology and medical technology companies. Located at the western tip of Singapore, the 280-hectare park is home to leading global biomedical companies which have invested in commercial-scale facilities in Singapore.

CleanTech Park (CTP) is Singapore’s first eco-business park, which provides a conducive environment and strong base for forward-looking corporations that embrace clean technology and environmental sustainability. The park also provides a platform for industry to test-bed and showcase building and estate-level solutions.

JTC CleanTech One @ CTP is the first multi-tenanted building in CTP. The iconic building provides specialised business park, laboratory and office space for key local and international clean technology R&D companies. So far, more than 80% of the 37,500 sqm space has been taken up by clean technology companies and research institutes.

JTC CleanTech Two @ CTP is specially designed to support heavy R&D, prototyping activities and remanufacturing. Located next to JTC CleanTech One, the six-storey building offers 22,300 sqm of laboratory space, workshop space and office units, and has an occupancy rate of more than 60%.

Innovative Ready-built Facilities

To help industrialists increase their productivity, improve operational efficiency and reduce their operating costs, JTC is rolling out next generation industrial facilities to meet the needs of specialised clusters like surface engineering, biomedical, medical technology and clean technology. Some of these facilities come with shared infrastructure and services to support companies’ operations, reduce their business costs and enhance their competitiveness.

JTC BioMed One is an 8-storey facility that will serve as an epicentre for the biomedical community with a vendors’ hub for service providers, as well as shared facilities and amenities for the community. The facility will be a naturally ventilated, multi-tenanted B2 industrial building.

MedTech Hub

Located at the gateway of Tukang Innovation Park, the 7.4-ha MedTech Hub is Singapore’s first dedicated development for the medical technology industry and is set to host an integrated ecosystem of local and international medtech companies.

The nine-storey multi-tenanted JTC MedTech One is the first building in MedTech Hub. Offering 38,000 sqm of core and shell space, the building will house medical device manufacturers, suppliers and service providers under one roof. It also offers shared services like sterilisation and warehousing and logistics services to support the industry.

CleanTech Park



• JTC Surface Engineering Hub @ Tanjong Kling – This is a first-of-its-kind multi-tenanted industrial development in Singapore to integrate the entire value chain of companies within the surface engineering industry. The project comes with a centralised wastewater treatment plant to enable companies, many of whom are SMEs, to save upfront and operational costs, and swiftly start their operations. It has 63 units with a total gross floor area of 27,000 sqm.

• JTC Space @ Tanjong Kling – This next-generation standard factory development located at Buroh Street is specially developed to help companies reduce business costs and improve land productivity. With three levels of manufacturing space, companies can now operate on a smaller footprint, thereby reducing the land area needed. The development’s unique feature is its structural provisions which provide flexibility for companies to install their preferred choice of materials handling systems that best cater to their operational needs.

• JTC Space @ Tampines North – This development is designed to be future-ready with vibration-sensitive space to meet the needs of new and emerging industries. The building comes with high technical specifications, such as higher floor loading and ceiling height, and wider corridor space to meet the needs of SMEs in heavier manufacturing activities. Targeted for completion by 2016, the development leverages on passive design for natural ventilation and lighting to reduce energy use and cost.

• JTC Chemicals Hub @ Tuas View – This development will come with safety-compliant features, such as enhanced fire protection systems to facilitate safe handling of chemicals, and share facilities, such as fire-water retention tanks, and a centralised foam system. These features will provide companies with a plug-and-play environment reduce their upfront capital investments and shorten their set-up time. The Hub, which comprises a three-storey production block and a five-storey annex block for R&D activities and ancillary offices, has a gross floor area of 26,000 sqm. The development is targeted for completion by 2016.



• JTC FoodHub @ Senoko – This project offers food companies the competitive advantage with a shared integrated cold room cum warehouse that will enable them transform their supply chain practices and facilitate productivity improvements through the aggregation of demand for delivery services. With the shared facility, companies can lower their capital investment; enjoy better economies of scale and lower cost of operations. The development is targeted for completion by 2017.

For more information on JTC and its products and services, please visit www.jtc.gov.sg.

Contributed by: JTC CorporationThe government agency responsible for the

development of industrial infrastructure to support and catalyse the growth of industries and

enterprises in Singapore.

The Difference between Commercial and Industrial Business Space Solutions in Singapore

In Singapore, “commercial” and “industrial” space can be distinguished based on the classification of such properties by the Urban Redevelopment Authority (“URA”) under the Master Plan zonings.

Commercial

“Commercial” properties would include developments for offices and shopping centres.

Industrial

“Industrial” properties can be further categorised into “Business 1”, “Business 2” and “Business Parks”.

Business 1 (“B1”) developments are intended to be used for industry, warehouse, utilities and telecommunication uses where the nuisance buffer is 50m or less.

Business 2 (“B2”) developments are intended to be used for industry, warehouse, utilities and telecommunication uses where the nuisance buffer is more than 50m but still within health and safety buffers.

B1 and B2 space is subject to the “60-40 rule”. That is, a predominant component of minimum 60% of the total floor area must be used for core industrial uses, while an ancillary component of maximum 40% of the total floor area is permitted for supporting uses16.

Core industrial uses allowed in B1 and B2 developments include: • Main industrial activities (eg. manufacturing, production, assembly, warehousing, storage, servicing, repair, workshop, utilities) • E-business activities (eg. telecommunications, data farm/ data centre, internet service provider). Call centres can be located in Business Park and B1 developments, but not in B2 developments. • Software development (eg. software design, customisation & maintenance, software application provider) • Core media activities (eg. production services which require technical facilities such as studios & high-tech production software/hardware)

It is important to note that businesses that use software to conduct business electronically, for example in marketing and consultancy work, and non-core media activities will now be regarded as commercial uses17. These activities should be located in commercial premises and will no longer be allowed within the 40% ancillary component of industrial developments.

Ancillary supporting uses would include ancillary office, industrial canteen, circulation space and M&E areas.

Business Parks are intended to be used for non-pollutive industries that engage in high technology, research and development, high value-added and knowledge-intensive activities.



16That is, a predominant component of minimum 60% of the total floor area must be used for core industrial uses, while an ancillary component of maximum 40% of the total floor area is permitted for supporting uses.17It is important to note that businesses that use software to conduct business electronically, for example in marketing and consultancy work, and non-core media activities will now be regarded as commercial uses.



S/N LocationOffice

Category Land Area (sqm) Median Rent ($/psf)

1

2

3

4

Central Area

Central Area

Category 1

100 & Below 9.53

>100 - 200 10.00

>200 - 500 10.25

>500 - 1,000 9.12

>1,000 10.00

5.85100 & Below

6.21>100 - 200

6.47>200 - 500

7.00>500 - 1,000

6.30>1,000

4.40100 & Below

4.57>100 - 200

5.42>200 - 500

4.50>500 - 1,000

6.10>1,000

3.10100 & Below

NA>100 - 200

3.44>200 - 500

NA>500 - 1,000

NA>1,000

Category 2

Fringe Area

Outside CentralRegion

Central Area – It comprises the following 11 Planning Areas: Outram, Museum, Newton, River Valley, Singapore River, Marina South, Marina East, Straits View, Rochor, Orchard and Downtown Core.

Fringe Area – This is the area within Central Region, excluding the Central Area. It comprises the following 11 Planning Areas: Bukit Merah, Bukit Timah, Queenstown, Kallang, Bishan, Marine Parade, Geylang, Toa Payoh, Tanglin, Novena and Southern Islands.

Outside Central Region – It refers to the planning areas which are outside the Central Region (which comprises the following 22 Planning Areas: Downtown Core, Orchard, Marina East, Marina South, Museum,

Newton, Outram, River Valley, Rochor, Singapore River, Straits View, Bishan, Bukit Merah, Bukit Timah, Geylang, Kallang, Marine Parade, Novena, Queenstown, Southern Islands, Tanglin and Toa Payoh).

Category 1 Office Buildings – Category 1 office buildings are defined as those located in core business areas in Downtown Core and Orchard Planning Area which are relatively modern or recently refurbished, command relatively high rentals and have large floor plate size and gross floor area.

Category 2 Office Buildings – These are the remaining office buildings which are not included in Category 1 office buildings.

Rental Rates for Commercial and Industrial Business Space Solutions Across Singapore

Office space rental18 for Q4 2014 are as follows:

18https://www.ura.gov.sg/realEstateIIWeb/comm/rentalOffice/search.action



Industrial space rental19 for Q4 2014 are as follows:

Postal District

3

5

12

13

14

16

19

20

Floor Area (sqm)Level 1 Level 2 or higher

Median Rent ($/psf) Median Rent ($/psf)

<100 * *

100 - <200 2.20 2.86

200 - <300 3.40 1.85

300 - <1,000 * 2.10

>=1,000 * *

<100 * *

100 - <200 2.10 1.80

200 - <300 * 1.38

300 - <1,000 * 2.00

>=1,000 * *

<100 * *

100 - <200 2.15 1.90

200 - <300 2.20 1.83

300 - <1,000 * 1.85

>=1,000 * *

<100 * *

100 - <200 1.95 1.94

200 - <300 2.05 1.75

300 - <1,000 2.56 1.89

>=1,000 * *

<100 * *

100 - <200 2.81 2.13

200 - <300 2.63 1.95

300 - <1,000 1.95 1.74

>=1,000 * *

<100 * *

100 - <200 * *

200 - <300 * 1.50

300 - <1,000 * *

>=1,000 * *

<100 * *

100 - <200 * 1.96

200 - <300 * 2.03

300 - <1,000 * 1.70

>=1,000 * *

<100 * *

100 - <200 2.10 1.89

200 - <300 * 1.75

300 - <1,000 2.00 1.75

>=1,000 * *

19http://cwapps.jtc.gov.sg/applications/IndustrialStatistics/Rentalstatistics.aspx



03 - Queenstown, Tiong Bahru,04 - Telok Blangah, Harbourfront,05 - Pasir Panjang, Hong Leong Garden, Clementi New Town,12 - Balestier, Toa Payoh, Serangoon,13 - MacPherson, Braddell14 - Geylang, Eunos,16 - Bedok, Upper East Coast, Eastwood, Kew Drive,17 - Loyang, Changi,18 - Tampines, Pasir Ris,19 - Serangoon Garden, Hougang, Punggol20 - Bishan, Ang Mo Kio,22 - Jurong,23 - Hillview, Dairy Farm, Bukit Panjang, Choa Chu Kang,25 - Kranji, Woodgrove,26 - Upper Thomson, Springleaf27 - Yishun, Sembawang

Office Space Solutions in Singapore

Leasing Office Space in Singapore

Letter of Intent

Based on your requirements, your real estate agent will assist you to shortlist suitable office space for viewing. After you have had the site inspections and zoomed in on the most appropriate office space, the next step would be to prepare your Letter of Intent for the landlord.

The Letter of Intent indicates your interest in the property, and should also state the key lease terms such as dates of possession and commencement of lease, the lease term, gross rent and other essential information. Do note that if the landlord is a Goods and Services Tax (“GST”) registered entity, you will also need to pay GST on the gross rent.

Letter of Offer

Upon receiving the Letter of Intent, the landlord will conduct due diligence on your company’s business profile, paid-up capital and whether you have the necessary approvals, licences and permits from all relevant authorities to carry out your business operations in Singapore. After the landlord is satisfied with your company’s financial standing and the general terms of lease have been agreed upon, the landlord will issue to you a Letter of Offer along with the specimen Tenancy Agreement for your execution. The specimen Tenancy Agreement will include standard terms and conditions relating to the obligations of landlord and tenant.

If you wish to vary the terms and conditions in the Letter of Offer and/or Tenancy Agreement, you must propose the amendments to the landlord at this stage. However, do note that most landlords in Singapore have their own standard lease documentation to which they are unlikely to make major amendments.

To confirm your acceptance to the lease terms, you will be required to sign the Letter of Offer and return the same to the landlord together

Postal District

23

25

26

27

Floor Area (sqm)Level 1 Level 2 or higher

Median Rent ($/psf) Median Rent ($/psf)

<100 * *

100 - <200 * 2.19

200 - <300 * *

300 - <1,000 * *

>=1,000 * *

<100 * *

100 - <200 * 1.35

200 - <300 1.70 1.00

300 - <1,000 * 1.60

>=1,000 * *

<100 * *

100 - <200 * *

200 - <300 * 1.74

300 - <1,000 * *

>=1,000 * *

<100 * *

100 - <200 1.95 1.47

200 - <300 1.85 1.34

300 - <1,000 * 1.42

>=1,000 * *

22

<100 * *

100 - <200 2.35 2.24

200 - <300 * 1.65

300 - <1,000 2.23 *

>=1,000 * *



with the security deposit (which is typically 3 months for a lease term of 3 years) and stamp duty for the Tenancy Agreement. Market practice in Singapore also dictates that a 1 month's advance gross rent is paid to the landlord at this stage.

Upon you signing the Letter of Offer and furnishing to the landlord the security deposit and advance rent, the office space will be secured and you will be contractually bound by the lease terms. The landlord will then proceed to stamp the Letter of Offer and return to you a copy of the Letter of Offer together with the stamp duty certificate.

Tenancy Agreement

After your acceptance of the Letter of Offer, the landlord will furnish to you a Tenancy Agreement for your execution. The Tenancy Agreement is drafted based on the same key lease terms specified in the Letter of Offer. Do note that the industry practice is that the landlord’s solicitor’s legal fee in relation to the preparation of the Tenancy Agreement is also borne by you.

Taking Possession and Fitting-Out

After the Tenancy Agreement has been duly signed and you have made all necessary payments such as security deposit and advance gross rent, the landlord will then allow you to take possession of the property on the date of possession indicated in the lease documentation.

You can then proceed to carry out fitting-out works. Do note that you need to submit all plans and specifications for your proposed works to the landlord and relevant authorities for approval before you can proceed with your renovation. Once your fitting-out works is completed, you can then commence your business operations.

A professional and experienced real estate agent will offer you sound advice throughout the process of leasing commercial space in Singapore, and help to make that transition into your new office so much smoother.

Purchasing Office Space in Singapore

While many office buildings in Singapore are held under single owner-ship of real estate developers, private funds and Real Estate Investment Trusts, there are also quality strata office units inside and outside of the CBD which are available for sale.

Owner-Occupiers

For business owners who can afford to buy strata office space, it often makes more sense to buy rather than lease. When you buy your own office space, you are shielded against rent increases and you do not have to worry about volatile office leasing costs. Particularly for businesses exposed to longer investment horizons (such as companies in the shipping, oil and gas industries), purchasing strata office space for owner-occupation is preferred over a leasing model. You are safe in the knowledge that your business will not be disrupted in the future because of rent increases and/or office relocation which is beyond your control. As a property owner, you also get to enjoy any real estate capital appreciation which is not available if you are a mere tenant.

Commercial buildings located in prime locations such as the core CBD are dominated by single owners, and it is rare to find a strata-titled office building in the core CBD which is available for sale. To owner-occupiers, when strata office units in such a building does come along for sale, these prove to be very popular as they are of an affordable quantum and gives the owner-occupier buyer the aforementioned benefits he would not otherwise have enjoyed as a tenant to an institutional landlord.

Investors

Strata office units are increasingly popular with investors due to the following reasons. Firstly, the low interest rate environment has provided ample liquidity to the financial system and encouraged investors to take advantage of low borrowing costs to invest in strata office space.

Secondly, an increased supply of quality strata office units in recent years has given investors the opportunity to diversify their investment portfolio. Project launches offering small-format offices with cost-effective unit sizes and affordable quantum have given investors the chance to venture beyond the stock market, financial products and residential real estate. It also helps that there are more strata-titled office buildings which come with value-added features and lifestyle amenities such as swimming pools and gyms.

Thirdly, government cooling measures targeted at the residential real estate market has also resulted in capital flow into the commercial real estate market. The absence of taxes such as the Seller’s Stamp Duty and Additional Buyer’s Stamp Duty for strata office units has increased the attractiveness of this asset class. Strata office units generally also provide higher rental yield vis-à-vis residential units, making investing in them all the more sweeter.

Residential Property in Singapore

Freehold – Estate in fee simple, Estate in perpetuity

The fee simple estate is the largest estate one can have in land. It amounts in practice to absolute ownership. A new estate has been created by the State Lands Act, namely the estate in perpetuity, which also has the characteristic of being unlimited in duration. However, the practice of granting freehold land in Singapore in the 1800s and early 1900s was eventually discontinued.

Leasehold

Previously, long leases (eg. 856 / 947 / 999 years) were granted by the state. Presently, land is granted on leasehold basis with the lease term of 30 / 60 / 99 years, governed by Rule 10 of the State Lands Rules under the State Land Act (Chapter 314).



STAGE 1Vendor & Purchaser Negotiate the Terms of the Contract: • Option to Purchase (OTP) must have: • Purchase Price • Vacant Possession / With Tenancy • Stakeholder Clause (Singapore Academy of Law OR Vendor's Law Firm's Conveyancing ("CVY") Account) • Completion Date

STAGE 2Pre-Contract Stage: • Purchaser makes a payment of 1% (option money) in exchange for the OTP that is signed by the Vendor. • Time Limit: Purchaser has 14 days to exercise the OTP • After granting the OTP, the Vendor cannot issue another OTP to any other party until the current OTP expires.

STAGE 3Contract Stage: • Purchaser exercises the OTP (within the option period of 14 days) in the manner prescribed in the OTP by: • Making payment of the balance 4% (to stakeholder); AND • Returning the duly signed Acceptance Copy of the OTP to the Vendor or the Vendor's solicitors before 4pm on the date of expiry of the option. • Once the OTP is exercised, the contract is legally binding. • Should the Purchaser fails to exercise the OTP before its expiry, the OTP will lapse. • The Vendor is entitled to forfeit the Purchaser's option money and is free to resell the property to other parties.

STAGE 4Completion: • On the date fixed for completion, the Purchaser pays balance 95% (usually via Cashier's Order) in exchange for Instrument of Transfer & the keys to the property.

Purchasing a Private Residential Property in Singapore

Costs Associated with Purchase/Mortgage of Private Residential Property

• Stamp Duty on Purchase of Private Residential PropertyStamp duty is a tax on the document used in relation to the property purchase e.g. OTP.

If the OTP is exercised in Singapore, the Acceptance to the OTP has to be stamped within 14 days of the exercise of the OTP.

If the OTP is exercised outside Singapore, the Acceptance to the OTP has to be stamped within 30 days of its receipt in Singapore.

BUYERS’STAMP DUTY

(BSD)

Purchase by IndividualsBSD = (3% x Price) - $5,400

Purchase byNon-Individuals

BSD = (3% x Price) -$5,400

ADDITIONALBUYERS’

STAMP DUTY(ABSD)

1st PropertySC = 0%

SPR = 5%FR = 15%

2nd PropertySC = 7%

SPR = 10%FR = 15%

3rd PropertyOnwardsSC = 10%

SPR = 10%FR = 15%

1st PropertyOnwards

Non-Individuals =15%

SC=Singapore Citizen; SPR=Singapore Permanent Resident; FR=ForeignerSource: ERA Research

• Stamp Duty on MortgageThe stamp duty on mortgage is subject to a maximum of $500/-. • Legal FeesThese comprise disbursements and the professional fees paid the purchaser’s solicitors. • Disbursements:These are expenses incurred in making searches (on the property, the parties and title) and payments made on behalf of the purchaser by the solicitors. • Solicitor’s Professional Fees:There are several sets of solicitors' costs payable by the purchaser of a property:

Professional fees charged by the purchaser’s solicitors a) for work on the purchase b) for work on the mortgage documentation (if the purchaser takes a loan from a Bank) c) for work on the CPF withdrawal (if the purchaser withdraws funds from his CPF account)

Professional fees charged by the Bank's solicitors (if the purchaser takes a loan)

Professional fees charged by the CPF Board's solicitors (if the Buyer withdraws CPF savings)

Contributed by: ERA Realty Network Pte LtdSingapore’s largest real estate agency with

more than 5,800 agents

STAGE 1Landlord & Tenant Negotiate the Terms of the Tenancy: • Tenant uses the Letter of Intent (LOI) to propose his terms for the Landlord's consideration: • Monthly Rent • Start Date & Duration of Lease • Diplomatic Clause • Tenant's Request - fully / partially furnished, etc.

STAGE 2Pre-Contract Stage: • Tenant presents the LOI for the Landlord's consideration together with a goodfaith deposit equivalent to 1 month's gross rent. • Time Limit: Landlord has minimum of 3 days to accept / reject the tenant's proposal. • Upon accepting the Tenant's LOI, the Landlord will bank in the goodfaith deposit and will then prepare a Draft Tenancy Agreement (TA) for the tenant's perusal and signature. • The TA must be executed before the lease commences.

STAGE 3Contract Stage: • Upon executing the TA, the Tenant pays the Landlord a security deposit of 2 months (usually). • The security deposit shall be returned to the Tenant free from interest at the end of the tenancy, subject to any deductions deemed necessary reinstatement or any breaches by the Tenant. • The goodfaith deposit paid earlier shall be taken as the 1st month's rent. • The TA is a legally binding contract. • The tenant shall pay for the stamp duty on the tenancy agreement. • The TA must be stamped within 14 days of execution.

Leasing a Private Residential Property in Singapore

BRANDING &MARKETING

YOUR BUSINESS IN ASIA

BRANDING & MARKETINGYOUR BUSINESS

IN ASIA


SINGAPORE BUSINESS FEDERATIONBRANDING & MARKETING YOUR BUSINESS IN ASIA

BRANDING & MARKETING YOUR BUSINESSIN ASIA

Leveraging on Singaporeas a Brand and Communication Hub

The rapid growth of Singapore over the past 50 years has earned the nation a global reputation for economic success and strong governance. This Singapore "brand" has come to represent trustworthiness, economic success and reliability for business people around the world. Today, Singapore is home to over 7,000 multinational corporations, about half of whom have regional or global headquarters here. They operate in a pro-business environment with transparent legislation, strong infrastructure, political stability and attractive tax regimes. Last year, FrieslandCampina, which is behind brands such as Friso, opened a development centre focusing on dairy-based beverages and infant nutrition products for Asians. Unilever, which has made Singapore its global headquarters for brands that include Clear, LifeBuoy, Lux and Pond's, chose to work with Singapore-based agency Arcade, together with Lowe and Partners, for its Clear shampoo global campaign. Last year, Unilever also opened Four Acres Singapore, an $80 million leadership training facility - the company's first global leadership development centre - which will train 900 leaders from around the world each year. It will draw on Singapore institutions such as Insead and the Singapore Management University for insights into how Asians buy. Singapore's strong digital marketing sector is also helping brands navigate cyber channels. The Republic already handles the bulk of the region's digital marketing work. About 80 per cent of the work done by the 6,500 people in the growing communication sector also has regional scope.

Over the years, Singapore has also been taking active steps to position itself as an Intellectual Property (IP) Hub in Asia. In this innovation-driven globalised economy, IP has become an important driver of growth. The growth of the IP sector is especially apparent in Singapore, giving the marked expansion in IP activities and the compelling tax regime for the commercialisation and exploitation of IP. Singapore's legal framework for IP protection is well-recognised internationally. In the 2013-2014 Global Competitiveness Report, the World Economic Forum rated Singapore as having the best IP protection regime in Asia.

Last year, the Singapore Government unveiled an Intellectual Property Hub Master Plan to develop Singapore as a "Global Intellectual Property Hub in Asia" over the next decade. This ambitious plan is well supported by a robust legal framework for IP. Singapore also offers a supportive tax framework to companies that develop or acquire IP, and a large number of multinationals representing a wide range of industries have located their research and development (R&D) and IP-related activities in Singapore.

Singapore is a welcoming hub for international brands that seek to establish a base in Asia or specifically Southeast Asia. With the rise of competing products and service providers, it is imperative that businesses are able to distinguish their brands among their competitors.

Brands are also the most valuable thing that companies as diverse as Apple and Coca-Cola own, often worth much more than property and machinery. They account for more than 30 per cent of the stock market value of companies in the S&P 500 Index. Ikea is today synonymous with clever design affordable to the masses, just as Volkswagen is a superior wagon for the common folk. If building a brand is important, how does one go about it? Branding is more than just marketing. Branding experts tell us that while advertising is an important part of building a brand, it is only a small part. The key still lies in understanding and defining how one delivers value to customers. How this value is defined depends on the space a business operates in. In the consumer space, perhaps unsurprisingly, customers expect good brands to embody a combination of quality, reliability, safety, design and customer experience. But even in the business-to-business (B2B) space, branding counts for a lot. A recent global survey found that business customers, too, evaluated the brand strengths of their primary and secondary suppliers. How much a supplier cared about honest, open dialogue with its customers and society, whether it acted responsibly across its supply chain, and whether it had a high level of specialist expertise, all mattered significantly to B2B companies.

Managing a brand then is about market positioning. For a start, aspiring multinationals looking to build a good brand will have to let go of a traditional aversion to investment in intangible assets and be willing to think over the longer horizon that brand building requires. It calls for a significant increase in investments in marketing, design, and research and development (R&D). Companies planning to go global with a strong brand will also need to foster innovation, because truly great brands lead by selling what they have developed themselves rather than just copying what other businesses do.

The market of consumerism often places strong emphasis on personality branding. The key between personality and personal brand lies in the image projection. Let us take a look at the footwear market. A long time favourite of local grown brand Charles and Keith is an example of how personality branding shapes consumers' preference for the products. Consumers tend to associate brands with a perception. They tend to think of how people would perceive them when they consume a particular good or service. We are living in a brand-conscious era where consumers may have certain self-identity association to the products they consume. The key is to understand how your brands can help consumers to enhance their image perception and beyond.

While BreadTalk did not invent the Pork Floss Bun, it has made Pork Floss Bun a signature dish of theirs and widely copied by their competitors. It has become a must have item in almost every bread and bakery shops in Singapore. BreadTalk was founded by the unassuming George Quek. BreadTalk’s success is its ability to revolutionise a stable but unglamorous industry by making visiting bakery a fashionable thing to do while making lots of money. BreadTalk Group is currently listed in Singapore Stock Exchange. It sell a wide range of bread, cakes, buns and pastries through a chain of retail outlets in Singapore as well as Malaysia, Indonesia, China and etc.

Ya Kun Kaya Toast with a history dated back to the 1940s of the simple breakfast delicacy of toast bread with a sip of the enduring “kopi” aroma, conveys a story that reflects its past journey to present



development. This shows how a compelling story can elevate individual business to become a well-loved heritage brand by imaginary differentiation.

A strong brand identity differentiates Singapore from the rest of their competitors. Japan is known for its hardworking workforce, China for its abundant, cheap labour and Germany for its science and technology base. Singapore has long cultivated a reputation for an efficient workforce, but that is clearly no longer a sufficiently unique factor. Branding presents an untapped opportunity to distinguish and strengthen our competitive advantages.

Already a city with one of the highest quality of living standards in the world, Singapore continues to step up efforts to attract, develop and retain talent.

A key initiative to supporting the Home for Talent strategy is the Leadership Initiatives, Networks and Knowledge (LINK) talent and leadership ecosystem. Through LINK, Singapore aims to bring together the supply and demand for talent development needs. Supply-side players include leading business schools and professional services firms while demand-side players include corporate universities and talent control towers - strategic human capital functions - of sophisticated companies which are at the forefront of HR practices looking to better manage and develop their talent so as to drive business growth in Asia.

Anchoring the ecosystem is the Human Capital Leadership Institute, a national centre of excellence as well as an integrator across the LINK ecosystem by bringing together best-in-class thought leadership, faculty and insights on successfully doing business in Asia and the associated implications for leadership and human capital strategies.

Putting in place an overarching brand proposition that encapsulates Singapore’s attributes as a talent destination would help align the messages of Singapore’s various government agencies, create opportunities for synergy with other Singapore branding efforts and importantly, would deliver a consistent message to the intended audience. Collectively, consistency in messaging, experience and perceptions of Singapore as a talent destination is crucial to winning mindshare in the long term.

Branding a country as a talent destination is a challenging and long-term undertaking. Singapore’s history is replete with examples of how the foresight of our economic planners has borne fruit over time, for example, the land reclamation of the Jurong Island, the decentralisation of the city centre and the building of satellite towns throughout Singapore. Likewise, growing the promise of a brand that will attract global talent needs time, but the results are long-lasting and far-reaching. Singapore does not have the luxury of allowing market forces to dictate the shape of our economy. Successful branding as a talent destination is one of the ways we can be proactive in shaping how the rest of the world perceives our economic status and viability.

Contributed by: Louken GroupAsia Brand Growth and Communication Partner



Effective Marketing Channels in Asia: Integration at its Best

The Internet has changed the marketing equation drastically over the past few years. With the constant evolving technology and the increasing reliance on digital and social media, many businesses have witnessed the need to review their marketing channels to suit the changes in consumer behaviour. Some companies call for a complete focus on digital marketing, while some persist on continuing with only the traditional route.

Traditional & New Marketing Channels

A brand’s success can be determined by the sales generated, the level of brand awareness and the public’s perception of the brand and there are three key factors that contribute to this success - Engagement, Communication and Interaction. Traditional media such as the dailies, magazines, out-of-home advertisements, events and roadshows have proven to be successful sales driver, reaching eyeballs, engaging targeted audiences, raising brand awareness and correcting brand perceptions. However, there is one missing element, the ability to quantify and analyse data conveniently and swiftly.

A common problem faced by many brands when using traditional marketing channels is the lack of statistics that can be very useful and timely in helping to refine the next phase of marketing. This is the power of the digital marketing channels where real-time statistics can be easily obtained to reflect the success of the marketing campaign.

According to a Norton survey conducted in 2012, it was found that Singaporeans spend an average of 66 hours a week connected to the Internet. Singaporeans are increasingly spending their time browsing the Web (15 hours/week) and socialising online (12 hours/week) among other activities. This calls for a need for businesses to establish a strong digital presence, encouraging many brands to leverage on e-commerce platforms and corporate websites to create additional income source i.e. online sales. In addition, businesses are also aware of the power of incorporating Google Search Engine marketing, Search Engine Optimisation (SEO), and Social Media Marketing to complement their existing marketing strategy in order to fulfil their marketing objectives and enhance the overall effectiveness of the marketing strategy by fostering customer engagement and brand communications with the target audience.

A good example that shows how engagement has generated positive results is Facebook. Facebook has pioneered the perception of digital marketing since its launch in 2004. The creation of Facebook marked the start of the social media era where connectivity, interaction, engagement became the fundamental elements of a social media strategy’s success. As compared to traditional marketing methods where customers are fed with information, information exchange has evolved into a two-way affair: businesses have come to realise the importance of effective customer engagement while customers have the appropriate channel for self-expression.

However, the usage of certain social media channels such as Facebook may not be effective in markets like China. The strict regulations placed on internet usage and resistance of western-influenced marketing channels have created the need for an alternative social media and digital marketing strategy. Baidu replaces Google as the top search engine tool, Weibo replaces blogs and WeChat replaces WhatsApp and Facebook as the preferred social media applications.

The Dilemma: Go Digital or Traditional?

There are various marketing channels available in Asia. Is the digital or traditional marketing channel more effective for your business?

In 2013, Simon Kahn, Google Asia Pacific’s Chief Marketing Officer spoke in an interview on the idea of multiple touch points and ways to effectively use them to your brand’s advantage. “Humans do multiple things. You are going to miss out if you just focus on one element. There are so many touch points in any given day where you have the opportunity to talk to consumers.” Therefore, integrating a marketing mix that comprises both digital and traditional media might be a good choice to make.

Integration: The Best of Both Worlds

Integrated Marketing is the application of consistent brand messaging across traditional and digital marketing channels utilising different promotional methods to reinforce each other. In short, it is about looking at the full picture and giving the target audience a consistent experience across all platforms and touch points.

Here’s come the challenge - ensuring that the brand identity remains consistent across platforms, and visualising how it will be like when all things come together. The keyword in the integrated marketing approach is thus staying interconnected. Keeping this in mind, it is crucial to understand each client’s needs and analyses the behaviour of the target audience before developing suitable marketing channels for the marketing campaign to ensure message continuity and channels suitability in maintaining consistency and interconnectivity. The main objective lies in achieving a holistic brand ROI.

It is interesting to see how sparks are created as digital and traditional marketing channels complement each other. One example is how the use of social media influencers have helped in driving crowd to roadshows, showing how hype created on the digital sphere translates to actual crowd in real life. The digital sphere also serves as a good tool for constant brand recall even when the roadshow is over. This helps in ensuring message consistency and acts as a constant brand reminder throughout the campaign.

The shorten attention span of audience and the change in behaviour have been a challenge to many marketers. Hence, it is important to use the integrated marketing approach to enable brands to achieve their marketing success. The integrated marketing approach is marketing at its best.

Contributed by: Four Media Pte LtdThe Four Dimensional Integrated Marketing Agency

in Singapore

SINGAPORETO ASEAN

SINGAPORETO ASEAN


SINGAPORE BUSINESS FEDERATIONSINGAPORE TO ASEAN

SINGAPORE TO ASEANASEAN is a 10-member geopolitical and economic organisation comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. Formed in 1967, ASEAN aims to accelerate economic growth, social progress and cultural development among its members while maintaining peace and stability within the region.

Singapore provides companies with easy access into the Southeast Asian market. As a founding member of ASEAN, Singapore enjoys close economic and diplomatic relations with fellows ASEAN members.

ASEAN Statistics

Land area (sq. km) 4.46 MillionTotal population (2011) 600 MillionCombined Nominal GDP (2012) US$2.3 TrillionTotal trade (2011) US$2.4 Trillion

Latest ASEAN Developments

AEC 2015

Impact of AEC

Asia is undoubtedly driving the global economy and ASEAN is the buzz word among international businesses and investors. The significance of the Association of Southeast Asian Nations (ASEAN) as an economic bloc will amplify when the ASEAN Economic Community (AEC) becomes a reality by the end of next year. The AEC will create a unified market and production base facilitating free movement of goods, services, investments, capital and skilled manpower. The ten member countries have identified twelve sectors for prioritised integration. The integrated efforts and developmental plans will ensure equitable economic development for member states in different stages of economic development. More importantly the development of a competitive economic region will integrate ASEAN members in the global supply chain networks by harmonising free trade commitments with their trading partners and embracing global standards and best practices. In anticipation of big payoff business investors are weighing up the potential impact of AEC. When ASEAN’s position in the global supply chain gets reinforced with the AEC, businesses will have to synchronise themselves for the new opportunities and intensified competition.

Redesigning operations for a seamless production base

Each member state of the economic union has its own competitive advantage, which the manufacturing businesses can capitalise on to achieve the best outcomes. The near zero tariff on almost all goods and the diminishing non-tariff barriers will transform the region into a

seamless production base for international manufacturers. With its world-class infrastructure and ports, Singapore is an ideal hub for R&D and logistics, whilst countries like Myanmar or Indonesia who benefit from natural resources and labour can be the manufacturing base. Such strategic redesign of the operations would result in better design, enhanced IP protection, cheaper manufacturing and efficient distribution of their goods.

Change the game plan for an expanded unified market

Singapore businesses that were stifled by the small local market will now have access to a huge consumer base of over 600 million. A significant segment of the consumer base bears similar demographics and belongs to the consumerist middle class. While large companies will be able to adapt themselves quickly to the bigger market, SMEs have to plan their business structures for expansion. They have to explore the alternatives on hand such as direct subsidiaries, franchising and licensing or mergers and acquisitions for quick expansion and consolidation of consumer base. Simultaneously, they have to strategically plan their resources, operations and procedures to tap in to the growth opportunity. Building strong brands and creating distinct value is crucial to drive sales beyond their traditional markets.

Brace up for the intensified competition

A larger market also brings with it new and increased competition. Companies must brace themselves for the change. In order to tackle or overtake their competitors, product manufacturers and service providers must adapt their services and products to the bigger market and equip themselves in terms of capacity, logistics, distribution and CRM. They must strategise their game plans by factoring in the direct and indirect competitors from the economic bloc. They must fortify their inherent strengths by protecting their business identities, innovations and technological knowhow through trademarks and IP registrations. Instead of a direct faceoff with competition smaller companies must look for means of reaping synergies through alliances and partnerships.

Corporate governance to tap on enhanced access to capital

Besides free flow of goods and services, the economic integration will also facilitate free flow of investments. It is believed that ASEAN has already evolved into a single investment destination, with the work underway for capital market integration; this will drive the growth of ASEAN focused funds and attract international investors. It will also stimulate more retail investor participation in the region. The integration will pave the way for cross listing and easier access to capital. However businesses must adhere to high standards of governance and compliance in order to attract investors and retain confidence. Singapore has played a key role in capital formation for ASEAN businesses as evident from the listings in the local stock exchange.



Corporate structuring and Tax considerations

AEC will create preferential market access within the economic bloc for goods and services originating in ASEAN and also facilitate preferential access to the rest of the Asia Pacific region. In order to leverage the access businesses must pay close attention to corporate structuring. Holding company and supply chain structures have to be properly organised in order to enjoy this privilege.

Singapore has the lowest corporate tax among all ASEAN member states; as a result companies may attempt to shift their profits to Singapore. This may result in tax revenue loss for other counterparts in the economic union. It must be noted that Singapore has measures, in the form of Transfer Pricing (TP) guidelines, in place to counter such evasive practices. Accordingly companies must follow the arm’s-length principle that requires related parties to transact as if they are unrelated parties. Recently Singapore proposed an update to its TP guidelines requiring companies to prepare and maintain contemporaneous documents relating to all TP transactions. Again businesses must pay close attention to corporate structuring and provisions of Double Taxation Agreements (DTA’s) with trading partners.

Workforce Matters

One important element of the AEC is the free Movement of Natural Persons (MNP); however this is limited to skilled labour. MNPs cover business visitors who engage in business without seeking employment, traders and investors, intra-corporate transferees who are employees of MNCs that move their staff across borders, and professionals. The Mutual Recognition Arrangement (MRA) will set the grounds for recognition of professional accreditation of one member state to be recognised across all other member states. It must be noted that the MNP clauses will not override the immigration or employment laws of the member state.

In the context of Singapore where there is a tight labour market with the onset of strict regulations to protect the employment interest of the locals, the AEC will bring little respite. While Singapore has always remained opened to skilled labour in order to meet the needs of its rapid economic growth against stunted population growth, it has recently unrolled strict immigration and employment laws to prevent foreign competition for the local workforce on account of lower wages. Only intra-company transfers will be facilitated through the AEC provisions.

Intra-corporate transferees include employees at the level of managers, executives and specialists of companies that provide services within Singapore through a branch, subsidiary, or affiliate established in Singapore. In order to qualify the transferees must have worked in their firms outside Singapore for at least one year. Entry for these intra-corporate transferees is limited to a two-year period and this may be extended for up to three additional years each time for a total term not exceeding eight years. These intra-corporate transferees will still be subject to Singapore’s prevailing Employment Pass (EP) regime, which requires applicants to earn at least S$3,300, and possess relevant qualification, experience and skills.

Although AEC will not match up initially with its European counterpart we believe it will be a constant work in progress and evolve into a strong union with significant economic, social, negotiating prowess.

Contributed by: Hawksford Singapore Pte Ltd Singapore's Leading Incorporation, Immigration,

Accounting and Fiduciary Services Firm

No import & export dutiesNo sales tax

No luxury taxNo VAT

Easy immigration & working visa proceduresEasiness to obtain land & property titles100% ownership for selected industries

Investment allowanceTax exemptions

Indirect tax reliefsUnrestricted employment of expatriates

Relaxed foreign exchange controls

Expanding into Iskandar Malaysia

Iskandar is located just north of Singapore. It features 5 development zones and 2,200 km2 of land. The cost of industrial land and labour is approximately 10-20 times lower in Iskandar than in Singapore, despite having increased over the past six years. These factors offer savings to businesses as they complement Singapore as a favourable business location.

Businesses can site their headquarters and higher value functions in Singapore whilst tapping on Iskandar for manufacturing and production operations. Since 2006, Singapore companies have set up over 300 manufacturing projects in Iskandar and it is forecasted to reach its tipping point after the completion of key catalyst developments and infrastructure developments. Such developments include improving intercity connectivity with the proposed Rapid Transit System (RTS) and Kuala Lumpur-Singapore High-Speed Rail (HSR). The growing economic landscape and increasing establishment of facilities such as malls and hotels make Iskandar the next destination of choice for business services.



Expanding into Batam, Bintan and Karimun Free Trade Zone (BBK FTZ)

The BBK FTZ is a special economic zone situated in the islands of Batam, Bintan, and Karimun of the Province of the Riau Islands in Indonesia; 3 islands closest to the south of Singapore. The BBK FTZ has been historically linked to Singapore as a manufacturing base for Singapore companies since the 1990s with the formation of the SIJORI (Singapore-Johor-Riau) growth triangle.

With only an hour’s ferry ride away from Singapore, companies can set up head offices and distribution offices in Singapore and manufacturing plants in the BBK FTZ, while enjoying business benefits offered by both regions.

Invest in ASEAN

Overview

The Kingdom of Cambodia is the 6th most populous country in the world. The country has been faring well in terms of economic development, with an average growth of 6% in recent years. In addition, foreign investment and international trade have increased following an improved economic environment.

Business advantages

• Increasing emphasis on regional integration of local economy • Large and affordable labour pool • Relatively stable economic growth and political climate • Applicable for Tax on Profit (ToP) exemption for up to nine years20

CAMBODIA



BRUNEI DARUSSALAM

Overview

Brunei was the only Malay state in 1963 to choose to remain a British dependency rather than join the Malaysian Federation. The country became independent in 1984 and has one of the highest standards of living in the world due to its large reserves of oil and gas.

Business advantages

• Politically and economically stable • No history of natural disasters or terrorism related incidents • Tax exemptions e.g. no personal income tax, sales tax, export tax etc.

20KPMG. (August 2013). Cambodia Tax Profile. Phnom Penh: KPMG Cambodia Ltd.

Area: 5770 km²Population (2013): 417,784Capital: Bandar Seri BegawanGDP (2013): US$16.1 billionLiteracy rate (2011): 96.9% Official language: MalayPrincipal religion: Islam

Area: 181,035 km²Population (2013): 15.1 millionCapital: Phnom PenhGDP (2013): US$15.2 billionLiteracy rate (2012): 73.9%Official language: KhmerPrincipal religion: Thearavada Buddhism



21The sectors include: Basic metals; Petroleum refining and related products; engineering industries; renewable resources; communications equipment. Taken from Indonesia-investments.com

Overview

Indonesia is the world’s 4th most populous country. It is a founding member of ASEAN, as well as a member of the G-20 group of major economies. Endowed with an abundance of natural resources, Indonesia has the 17th largest economy in the world (in terms of nominal GDP).

Business advantages

• Tax incentive in the form of 30% tax investment allowance • Tax holiday in the form of an exemption or reduction in income tax will be given for 5 to 10 years in selected sectors21

• Carryforward of losses up to 10 years is allowed

INDONESIA

Area: 1,919.440 km²Population (2013): 249.9 millionCapital: JakartaGDP (2013): US$863.3 billionLiteracy rate (2012): 92.8%Official language: IndonesianPrincipal religion: Islam

Overview

Laos is a country rich in mineral resources. In recent years, burgeoning demand for its metals resulted in the rapid acceleration of its economy. In 2013, it was granted full membership in the World Trade Organisation (WTO). It is also a member of the Asia-Pacific Trade Agreement (APTA), the East Asia Summit and La Francophonie.

Business advantages

• Reduced tax rates available for companies that establish investment agreements with the Government of Laos • Materials imported from import substitution are eligible for reductions on special duty

LAOS

Area: 236,800 km²Population (2013): 6.77 millionCapital: VientianeGDP (2013): US$11.14 billionLiteracy rate (2012): 73%Official language: LaoPrincipal religion: Buddhism



Overview

Since independence in 1957, Malaysia has seen remarkable economic development, with its GDP growing at an average of 6.5% per annum for the last 50 years. It is the 3rd largest market economy in Southeast Asia and the 29th largest in the world.

Business advantages

• Direct and indirect incentives are granted with reductions in various taxes and duties • Attractive regional hub for services • Strong industrial base for foreign eletrical and electronics MNCs • Indigenous oil and gas sources priced affordably

MALAYSIA

Overview

Myanmar is rich in oil, natural gas and mineral resources. Trade ties between Myanmar and other countries have been improving recently, with China and India being key trade partners. Western countries like USA and the EU have also eased most of the trade sanctions on Myanmar since 2012.

Business advantages

• Over 30 foreign banks have opened representative offices /agencies in Myanmar • Stabilising political and economic climate with an emphasis on international integration • Employees are said to be very respectul in general and follow company protocols well

MYANMAR

Area: 329,847 km²Population (2013): 29.7 millionCapital: Kuala LumpurGDP (2013): US$312.4 billionLiteracy rate (2012): 93.1%Official language: MalaysianPrincipal religion: Islam

Area: 676,578 km²Population (2013): 53.25 millionCapital: NaypyidawGDP (2013): US$53.14 billionLiteracy rate (2012): 93%Official language: BurmesePrincipal religion: Buddhism



Overview

Singapore has seen rapid economic expansion since its independence in 1965, earning it recognition as one of the Four Asian Tigers. As one of the world’s major commercial hubs, it has the 4th biggest financial centre and 1 of the 5 busiest port.

Business advantages

• Placed highly in international rankings for education, healthcare and economic competitiveness • 2nd freest economy in the world • Corruption is among the lowest in the world • Multitude of tax incentives granted for various aspects i.e. real estate, equipment, R&D and innovation etc.

SINGAPORE

Overview

The Philippines is the 7th most populated country in Asia, and the 12th most populated country in the world. Its economy is in transition, with more emphasis being placed on services and manufacturing in recent years.

Business advantages

• Simplified imports, exports and customs procedures • Income tax holiday or a 4-year exemption from corporate income tax which is extendable for up to 8 years • Open economy that grants 100% foreign ownership in almost all industries

THE PHILIPPINES

Area: 716.1 km²Population (2013): 5.4 millionCapital: -GDP (2012): US$370.1 billionLiteracy rate (2012): 96%Official language: English, Malay, Tamil, Standard MandarinPrincipal religion: Buddhism, Islam, Hinduism, Christianity

Area: 300,000 km²Population (2013): 98.4 millionCapital: ManilaGDP (2012): US$272 billionLiteracy rate (2012): 95.4%Official language: FilipinoPrincipal religion: Christianity

Overview

Thailand saw rapid economic expansion between 1985 and 1996, causing it to join the ranks of the newly industrialising countries. Among the ten ASEAN countries, Thailand ranks 2nd in quality of life. With its large population and increasing economic leverage, it is now a middle power both in the region and in the world.

Business advantages

• Competitive labour and rental costs • Large domestic consumer market • Attractive production base for international companies

THAILAND



Overview

After unification in 1975, Vietnam took progressive steps to integrate itself into the global economy. By 2000, it had established diplomatic relations with most nations. Also, its economic growth rate has been among the highest in the world since 2000, allowing it to have the highest Global Growth Generators Index among 11 major economies in 2011.

Business advantages

• Growing consumer market, especially for the middle class • Large and young workforce coupled with an increase in disposable income • Increasing economic freedom following transition to a market-oriented economy • Preferential CIT rates of 10% and 20% available for 15 years and 10 years respectively

VIETNAM


Area: 513,120 km²Population (2013): 67 millionCapital: BangkokGDP (2012): US$387.3 billionLiteracy rate (2012): 93.5%Official language: ThaiPrincipal religion: Buddhism

Area: 331,210 km²Population (2013): 89.71 millionCapital: HanoiGDP (2012): US$171.4 billionLiteracy rate (2012): 94%Official language: VietnamesePrincipal religion: Buddhism

CONTRIBUTORS


SINGAPORE BUSINESS FEDERATIONASCENDAS

ABOUT ASCENDAS PTE LTD

Ascendas is Asia’s leading provider of business space solutions with more than 30 years of experience. Based in Singapore, Ascendas has built a strong regional presence and serves a global clientele of over 2,400 customers in 26 cities across 10 countries including Singapore, China, India, Malaysia, South Korea and Vietnam.

Ascendas specialises in master planning, developing, managing and marketing IT parks, industrial & logistics parks, business parks, science parks, hi-specs facilities, office and retail spaces. Leveraging on its track record and experience, Ascendas has introduced new business space concepts such as integrated mixed development and solutions which seamlessly combine high-quality business, lifestyle, retail and hospitality spaces to create conducive human-centric work-live-play-learn environments. Its flagship projects include the Singapore Science Park and Changi City at Changi Business Park in Singapore, International Tech Park Bangalore in India and Ascendas-Xinsu in Suzhou Industrial Park, China. Ascendas provides end-to-end real estate solutions, assisting companies across the entire real estate process.

In November 2002, Ascendas launched Singapore’s first business space trust, Ascendas Real Estate Investment Trust (A-REIT), and in August 2007, Ascendas India Trust (a-iTrust) was listed as the first Indian property trust in Asia. In July 2012, Ascendas listed Ascendas Hospitality Trust (A-HTRUST), which comprises a portfolio of quality hotels in Australia, China, Japan and Singapore. Besides managing listed real estate funds, Ascendas also manages a series of private funds with commercial and industrial assets across Asia.

61 Science Park Road, #04-01 The Galen Singapore Science Park II Singapore 117525

Tel: +65 6508 8686Fax: +65 6774 9842Email: [email protected]

Website: spacetobe.com.sg / ascendas.com


SINGAPORE BUSINESS FEDERATIONA.S. LOUKEN GROUP

ABOUT A.S. LOUKEN GROUP

Founded in 2000, Louken Group provides a holistic suite of innovative brand and business growth solutions to help enterprises in Asia become market leading brands of tomorrow. With a 75 man-strong team, we operate out of our corporate headquarters in Singapore with branch/partner offices in Malaysia, Indonesia, China, Philippines, Vietnam and Hong Kong. We are also further networked to another 22 countries through our alliance network, the Ebeltoft Group.

Operating under Louken Group are 7 entities, namely: • A. S. Louken, providing Brand Growth Strategies such as Market Research, Brand Development, and Creative Design • Altiply, providing IP Consulting, Franchising & Licensing Development, and Franchise Sales & Marketing • Louken Academy, providing Training and Education • ALPlay, providing Customer Service Training • Addito, providing Digital Solutions services • A. S. Louken Tag, providing Advertising services • Clickr Media, providing Digital Marketing Services

Over the last 15 years, we have been privileged to work with over 1,000 brands across 10 countries in Asia. They include many local household names such as Paradise Group, BreadTalk Group, Charles & Keith, Jean Yip, and Tangs. Internationally, we have worked with Steinway Pianos (Germany), Metro Group (Malaysia), Ben & Jerry’s (USA), Galeries Lafayette (France), Sony (Japan), and Philips Lighting (Netherlands). We have also had the privilege to work with associations such as HomeTeam NS, Singapore Jewelers’ Association, and the Association of Small and Medium Enterprises.

Our works are recognised by the numerous awards clinched over the years. They include Marketing Magazine’s Top 10 Brand Agency of the Year Award, Junior Chambers International’s Outstanding Young Persons’

2 Alexandra Road, #06-04 Delta House, Singapore 159919

Contact Person: Luke Lim, Group Chief Executive OfficerTel: +65 6299 0338Email: [email protected]

Website: www.aslouken.com

Award and several Design Awards. We have also clinched the title of Number 1 Local Brand Agency 4 times.

In 2010, we published “Secrets of the Little Red Cow”, a book encapsulating the journeys of many local businesses in Singapore.


SINGAPORE BUSINESS FEDERATIONBDO LLP

ABOUT BDO LLP

BDO Singapore is a full-service audit, tax and advisory firm across a wide spectrum of industries. As a member of the fifth-largest consulting and accounting network in the world, we have over 1,328 offices and a combined professional staff of close to 60,000 across 151 countries worldwide. As a professional firm, we provide tailor-made solutions with our world-class expertise and globally-minded tax, business and finance individuals across the globe.

From a start-up in 1972, we have grown to be one of the leading and highly-respected accounting and business consulting firms in Singapore. BDO LLP is at its optimum, offering you the best of both worlds - a strong local presence in Singapore with the support, opportunities and resources of being part of cohesive global network.

BDO Singapore has a unique combination of international strength and local excellence. Our distinctive reputation for building close personal relationships with our clients is built upon our commitment that what matters to them matters to us. Service excellence is at the heart of what we do and our mission is to be a spontaneous leader in exceptional client service.

21 Merchant Road, #05-01, Singapore 058267

Contact Person: Roger Loo, Director of MarketingTel: +65 6829 9604Fax: +65 6774 9842Email: [email protected]

Website: www.bdo.com.sg


SINGAPORE BUSINESS FEDERATIONBOARDROOM LIMITED

ABOUT BOARDROOM LIMITED

Headquartered in Singapore, Boardroom Limited is a listed company with over 44 years of illustrious history. We have forged strong regional corporate relationships and strategic alliances. In fact, we have helped over 5,500 companies succeed in Asia. You could be next. Boardroom possess an indelible footprint in Australasia with offices in Singapore, Australia, China, Hong Kong, and Malaysia, as well as an extensive partner network in Asia to help your business realise its maximum potential. We care for your success. We serve as your partners, acting for you. We take care of all your back office functions, hence freeing your resources for strategic use. Let us be your trusted partner with the right connections to help you seamlessly integrate into these countries and beyond. Our professionals are well-versed in the law, local regulations, culture, and challenges of conducting business in the region, assisting you to successfully navigate the unique political and cultural landscapes. We welcome you on board and will help your business take flight.

50 Raffles Place #32-01 Singapore Land Tower Singapore 048623

Contact Person: Kymberlie Chong, Associate Director of Business DevelopmentTel: +65 6230 9506Email:[email protected]

Website: www.boardroomlimited.com


ABOUT COLIN NG & PARTNERS LLP

Established in 1988, Colin Ng & Partners LLP (CNP) is a full-service law firm with a talent for cross-border business. With close to 100 staff, including 50 lawyers, and a strong network of international contacts, the firm has the capability to deliver legal solutions in Singapore and beyond.

We make knowing our clients’ businesses is our business and pride ourselves in providing innovative, yet practical and valuable advice.

CNP is consistently recognised as being amongst the top law firms in Singapore by leading legal publications such as Asia Pacific Legal 500, International Financial Law Review 1000, Chambers and Partners and AsiaLaw Profiles.

We focus on business involving Asia, in particular Cambodia, China, Hong Kong SAR, India, Indonesia, Japan, Malaysia, Mongolia, Myanmar and the Philippines, as well as Singapore. Our lawyers are qualified in a number of jurisdictions as well as in Singapore and advise on cross-border transactions under English law.

The firm is a member of Interlaw, a network of high quality corporate, commercial independent law firms located in more than 100 cities worldwide.

With strong contacts in all the foreign jurisdictions where our clients do business, CNP is well-placed to meet the ever increasing need for practical and effective legal services in Singapore and for cross-border business in Asia and beyond.

Core Products/Services

Our area of expertise include banking & finance, capital markets, corporate & M&A, commercial, employment, funds, insolvency & restructuring, intellectual property &

36 Carpenter StreetSingapore 059915


Contact Person: Lisa Theng, Managing PartnerTel: +65 6349 8711Email: [email protected]

Website: www.cnplaw.com

SINGAPORE BUSINESS FEDERATIONCOLIN NG & PARTNERS

technology, litigation & arbitration, private clients, real estate, regulatory & compliance and regional cross-border transactions.


SINGAPORE BUSINESS FEDERATIONERA REALTY NETWORK

ABOUT ERA REALTY NETWORK

ERA Realty Network Pte Ltd is Singapore’s largest real estate agency with a salesforce of more than 5,800 agents registered with Singapore’s real estate industry regulator, the Council for Estate Agencies (CEA).

Since its inception in 1982, ERA has been the industry leader in pioneering real estate concepts, initiatives, training, technology, products and services that its Customers most want and need.

Over these 33 years, ERA has excelled in serving the real estate needs of the hundreds of thousands of sellers, buyers, landlords and tenants in Singapore and internationally.

Various independent consumer research studies have ranked ERA as the Number 1 Most Preferred Brand as well as the Most Influential Real Estate brand; amongst a host of other accolades.

Today, the ERA brand has “top-of-the-mind” awareness amongst the Consumers of the various market segments that it serves.

ERA’s corporate culture - “One ERA, Stronger Together!” is the lifeblood that flows throughout the organisation. By working together, ERA’s agents achieve much more than by working alone.

ERA’s sterling performance as the market leader in the private residential primary and secondary market sales, leasing as well as public housing resale and leasing bears testimony of ERA’s commitment to be 1st in Service, 1st in Results and 1st in Customer Satisfaction.

ERA is an international real estate franchise with over 32,000 brokers and agents in over 2,300 offices in 46 states of USA and 34 countries and territories throughout the world.

ERA@Mountbatten Square 229, Mountbatten Road #03-01 Singapore 398007

ERA@Zhong Shan Park 18, Ah Hood Road Level 8 Singapore 329983

ERA@SLF Building 510, Thomson Road #14-01 Singapore 298135

ERA@600 Toa Payoh 600, Lorong 4 Toa Payoh #02-03A Singapore 319515

Contact Person: Jack Chua, Chief Executive OfficerTel: +65 62262000Email: [email protected]

Website: www.era.com.sg

ERA’s Singapore office is the headquarters of ERA operations in the Asia Pacific region that currently comprises a network of ERA offices in China, Indonesia, Japan, Korea, Malaysia, Taiwan and Thailand. ERA Singapore holds the master franchise for the ERA brand for 18 countries in the Asia Pacific region.


ABOUT FMG CORPORATE SERVICES PTE LTD

FMG Corporate Services Pte Ltd (FMG) provides Singapore and foreign investors with one-stop professionalism, convenience and peace of mind to set up and do business in Singapore. As one of Singapore’s largest corporate secretarial services provider, we take care of the non-core but critical corporate compliance matters for you, so you may focus on your business.

We have more than 20 years’ experience specialising in formation of entities, as well as providing corporate secretarial & compliance and advisory services to businesses and companies. Our wide experience extends to acting as company secretaries to public companies, to help them meet reporting and disclosure requirements promptly.

Our expertise covers the following areas:

• Formation of Entities • Corporate Secretarial & Compliance (such as advising clients on corporate secretarial best practices and corporate governance, as well as acting as de facto in-house company secretary for Singapore OHQs and RHQs in managing their set-up, structures and statutory compliance globally) • Advisory (such as application for business licences, assistance in pre-IPO restructuring work and client due diligence support work)

8 Wilkie Road, #03-01 Wilkie EdgeSingapore 228095


Contact Person: Maureen Low,DirectorTel: +65 6594 7817Email: [email protected]

Website: www.FMG.com.sg

SINGAPORE BUSINESS FEDERATIONFMG CORPORATE SERVICES PTE LTD


ABOUT GREENHUB SUITED OFFICE

Conceived since 2012 in Singapore, GreenHub provides not just your average serviced office, but the tranquil, green environment conducive for the success of the born global firm, companies with the capability to instantly internationalise from inception. It is an environment where creativity and thought strives. An environment where one can concentrate on running one’s business and not concern oneself with the unnecessary. Put simply, an environment where business meets innovation and convenience.

Here at GreenHub, we are driven by our belief that the provision of a suitable environment is crucial for our customers’ success. This is manifested through our service philosophy, innovative environment, and result-driven purpose and has allowed us to provide the eco-system needed to leapfrog global companies, so that clients can focus solely on growing and expanding their business both locally and internationally. Currently, GreenHub steps up its presence in Singapore, Jakarta and other ASEAN countries.

Headquartered in Singapore, we have centres strategically situated at the fringe of Singapore’s Central Business District, it is accessible by Mass Rapid Transit (MRT) as well as various major highways. GreenHub is an ideal environment for companies looking to set up their corporate headquarters or temporary work spaces in Singapore. Enjoy the convenience while yearning for a conducive and unreserved tranquil business environment.

With our first overseas branch in Jakarta, GreenHub Suited Office is located in Kuningan and at the fringe of Sudirman’s business district at Kota Kasablanka. The new Casablanca flyover directly in front of the office links to various major destinations.

Level 2, Unit 8, 10 Raeburn Park, Singapore 088702

Tel: +65 6692 8022Email: [email protected]

Website: www.greenhub.com.sg

SINGAPORE BUSINESS FEDERATIONGREENHUB SUITED OFFICE


SINGAPORE BUSINESS FEDERATIONHAWKSFORD SINGAPORE

ABOUT HAWKSFORD SINGAPORE PTE LTD

Hawksford is a successful, international, independent wealth structuring, funds and corporate services provider. Our clients range from small and large corporates to ultra-high net worth individuals.

We help clients to meet all of the statutory compliance requirements and relieve the administrative burdens associated with administrating and managing a company; this allows clients to focus on running and growing their business. In addition, we also provide fiduciary services and complete solutions for corporate governance.

Ultimately, we pride ourselves on our top quality, friendly service, which provides clients with value for money. Our people are highly experienced and well trained and we have invested heavily in the best technology to ensure we deliver when we say we will, we can meet a clients’ business needs, we clearly present options and we communicate clearly and concisely. We also aim to be transparent on the fees we charge and provide practical advice to clients.

Our Services include:

• Company Formation & Fiduciary Services • Tax & Accounting • Immigration • Business Licenses • Start-Up Assistance

To learn more about doing business in Singapore and the services that our group offers, please visit our website at www.guidemesingapore.com.

16 Raffles Quay #33-03Hong Leong Building Singapore 048581

Contact Person: Jacqueline Low,Chief Operating OfficerTel: +65 6222 7445Email: [email protected]

Website: www.guidemesingapore.com


ABOUT JTC CORPORATION

JTC Corporation (JTC) is the lead government agency responsible for the development of industrial infrastructure to support and catalyse the growth of industries and enterprises in Singapore. Landmark projects by JTC include the Jurong Industrial Estate; the Jurong Island for energy and chemical industries; business and specialised parks such as Airport Logistics Park of Singapore, International Business Park, Changi Business Park, Seletar Aerospace Park, CleanTech Park and Tuas Biomedical Park; a new work-live-play-learn development called one-north; and the Jurong Rock Caverns, Southeast Asia’s first commercial underground storage facility for liquid hydrocarbons. JTC also develops next generation industrial facilities such as JTC Surface Engineering Hub @ Tanjong Kling, JTC MedTech One @ MedTech Hub and JTC Food Hub @ Senoko, which incorporate innovative features and shared infrastructure to enable industrialists to start their operations quickly and enhance productivity.

The JTC Summit, 8 Jurong Town Hall Road, Singapore 609434


Website: www.jtc.gov.sg

SINGAPORE BUSINESS FEDERATIONJTC CORPORATION


SINGAPORE BUSINESS FEDERATIONKPMG

ABOUT KPMG IN SINGAPORE

KPMG in Singapore is a member firm of the KPMG global network of professional services firms providing Audit, Tax and Advisory services. KPMG member firms operate in 155 countries and collectively employ over 162,000 people across a range of disciplines. We contribute to the effective functioning of international capital markets and we support reforms that strengthen the markets’ credibility and social responsibility. Drawing on industry insight and technical knowledge, our professionals assist clients in their pursuit of business growth, enhanced performance, governance and compliance objectives.

16 Raffles Quay, #22-00 Hong Leong Building, Singapore 048581

Contact Person: Chiu Wu Hong, Head of Enterprise Incentive AdvisoryEmail: [email protected]: +65 6213 2569

Contact Person: Harvey Koenig, Partner, Enterprise Incentive AdvisoryEmail: [email protected]: +65 6213 7383

Website: www.kpmg.com.sg


ABOUT LHN GROUP

Established as a Space Resource Optimisation Company in 1991, LHN Group (‘LHN’) focuses on creating productive environments for Small and Medium Enterprises (SMEs) and Born-global Companies. Taking unused and under-utilised Industrial, Commercial and Residential spaces, we enhance and transform them into leasable space. LHN further add values by managing and coordinating the building, security and facilities management activities, providing tenants with a safe and conducive environment to work in and achieve maximum returns from their business. As part of our space optimisation business, we also provide professional car park management services through intelligent use of technology to manage car parks in the compound of our properties and outside our properties for government entities and private enterprises. Additionally, LHN’s vast experience at managing a diverse range of properties has also produced a company well-versed in the art of space optimisation for any space. As such, all spaces leased out by LHN have been carefully developed to bring about maximum value for tenants. Today, we managed spaces aggregated at around 4.5 million square feet. Guided by its core values of prudence, efficiency and accountability, LHN follows a simple maxim – to ensure better rental value for tenants by only leasing out spaces that are productive and can be fully utilised.

Going forward, LHN remains committed to being a space resource optimisation company that generates value and is driven by technology. LHN recognises that its success is an outcome of its tenants’ success. As such, it will continue to make every effort to ensure that all value is extended to them.

Our other business groups include Facilities Management Group and Logistics Group.

10 Raeburn Park #02-18, Singapore 088702


Website: www.lhngroup.com

SINGAPORE BUSINESS FEDERATIONLHN GROUP


SINGAPORE BUSINESS FEDERATIONMAZARS LLP

ABOUT MAZARS LLPMazars is an international, integrated and independent organization. Our integrated partnership spans five continents and enables us to offer local expertise, coordinated on a local or a global basis. We are also a founding member of the Praxity alliance, which extends our service coverage to 33,400 professionals in 97 countries.

Mazars in Singapore specialises in audit, accounting, tax and consultancy services. Our clients benefit from the combined expertise of 160 Singapore-based professionals and our international team of 14,000 professionals in 73 countries.

To support our International Clients we offer Chinese, French and US Desks. Our language capabilities include English, French, Japanese, Mandarin, Bahasa Indonesian, Bahasa Malay, Cantonese, Dutch, Filipino, Italian, Spanish, Tamil and Vietnamese.

Mazars’ unique integrated model is dedicated to guaranteeing responsiveness and consistent quality of service to our clients. We are one global partnership, sharing cohesive values that bind different cultures.

133 Cecil Street#15-02 Keck Seng TowerSingapore 069535

Contact Person: Tah Wee Han, Director, Head of ConsultingTel: +65 6224 4022Fax: +65 6225 3974Email: [email protected]

Website: www.mazars.sg


ABOUT RSM CHIO LIM LLP

RSM Chio Lim LLP is the largest accounting and business advisory group outside the Big 4 in Singapore, with a staff strength of over 850 in Singapore and 320 across six key cities in China. Established for more than 25 years, our reputation is built on technical competence, proactive client servicing and a commitment to uncompromising integrity, professionalism and high standards of service.

We are one of the first accounting firms in Singapore to be ISO 9001:2008 certified in 1997. Since 2006, we have been ranked as a leading tax firm in Singapore in “World Tax”, a Euromoney guide to the world’s leading tax firms. We are also a leading player in the IPO market as Reporting Accountants.

RSM Chio Lim LLP is the Singapore member of RSM International, the world’s seventh largest network of independent accounting and consulting firms, with 732 offices in 112 countries.

We assist foreign investors keen on investing in this region by: • Hand-holding and assisting them to manage, negotiate and enter the desired markets • Providing advice on regulatory, financial and tax issues • Facilitating the process of setting up business here

Core Products/Services • Cross-border Investment Advisory • International Tax Advisory • Business Solutions -- Accounting & Advisory, Business Process Outsourcing, Company Formation, Compliance & Advisory, IT Solutions & Advisory, Payroll & HR Advisory, Recruitment • Corporate Advisory • Governance, Risk & Consulting • Mergers & Acquisitions Advisory • Public Accounting

8 Wilkie Road,#03-08 Wilkie EdgeSingapore 228095


Contact Person: Valencia Teo,Director, Group Marketing & CommunicationsTel: +65 6594 7813Email: [email protected]

Website: www.RSMChioLim.com.sg

SINGAPORE BUSINESS FEDERATIONRSM CHIO LIM

Country & Industry Specialisations • China Practice • Japan Desk • Indonesia Desk • Food & Beverage • Funds & Capital Markets • Healthcare & Pharmaceutical • Legal & Professional Services • Logistics • Non-Profit Organisations • Oil & Gas • Real Estate & Construction • Retail


SINGAPORE BUSINESS FEDERATIONUNITED OVERSEAS BANK

ABOUT UNITED OVERSEAS BANK

United Overseas Bank Limited (UOB) is a leading bank in Asia with a global network of more than 500 offices in 19 countries and territories in Asia Pacific, Western Europe and North America. Since its incorporation in 1935, UOB has grown organically and through a series of strategic acquisitions. In Asia it operates through its head office in Singapore and banking subsidiaries in China, Indonesia, Malaysia, Thailand and the Philippines, as well as branches and representative offices.

UOB is rated among the world’s top banks: Aa1 by Moody’s and AA- by Standard & Poor’s and Fitch Ratings respectively.

UOB provides a wide range of financial services including personal financial services, private banking, business banking, commercial and corporate banking, transaction banking, investment banking, corporate finance, capital market activities, treasury services, brokerage and clearing services, asset management, venture capital management and insurance.

Head Office:80 Raffles Place UOB Plaza Singapore 048624www.UOBGroup.com

For information pertaining to company incorporation,tax/legal and cross-border expansion, contact: FDI AdvisoryEmail: [email protected]

For cash management and trade finance information, contact: Transaction BankingTel: +65 6530 2100 or 1800-226 6121Email: [email protected]

For treasury solutions for hedging and investment, contact: Global Market SalesTel: +65 6709 8888 Email: [email protected]

For cash management and financing information for SMEs, contact: Business BankingTel: +65 6539 2669/ +65 6539 8968Email: [email protected]


SINGAPORE BUSINESS FEDERATIONUSEFUL WEBSITES

About Singapore

Singapore infomap www.singapore.sgVisit Singapore www.visitsingapore.com.sgSingapore Tourism Board www.stb.gov.sgSingapore Online Street Directory www.streetdirectory.comChangi Airport Singapore www.changiairport.com.sg

Singapore Government

Singapore government online portal www.gov.sgMinistry of Trade and Industry www.mti.gov.sgMinistry of Foreign Affairs Singapore www.mfa.gov.sgOnline application of immigration visa and passes www.ica.gov.sgOnline government services www.ecitizen.gov.sgMonetary Authority of Singapore www.mas.gov.sgEconomic Development Board www.edb.gov.sgInternational Enterprise Singapore www.iesingapore.gov.sgSPRING Singapore www.spring.gov.sg

Business Information

Singapore Business Federation www.sbf.org.sgEnterpriseOne www.enterpriseone.gov.sgSingapore Customs www.customs.gov.sgSingapore Free Trade Agreements www.fta.gov.sg

Business Statistics and Directories

Singapore Business Directory www.eguide.com.sgSingapore Commercial Directory www.yellowpages.com.sgSingapore Department of Statistics www.singstat.gov.sg

Manpower

Ministry of Manpower www.mom.gov.sg

News and Media

AsiaOne www.asiaone.comChannel News Asia www.channelnewsasia.comThe Business Times www.thebusinesstimes.com.sgThe Straits Times www.thestraitstimes.com