- Article
- November 21, 2019
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- Newsletter, U.A.E
- November 19, 2019
H.E. Sheikh Mohammed Bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of the Emirate of Dubai, has the vision that justice should be governed quickly and efficiently. Therefore, the UAE Attorney General delivered a new decree on the Penal Order. The Order includes five articles stating the criminal offences and penalties that could be issued by public prosecutors as per their jurisdiction and grades. This Order brings about a number of considerable changes to the administration of criminal justice in the UAE, out of which, the three most important ones are explained as follows:
1. More offences to be managed instantly by public prosecutors
A number of crimes mentioned in the Order might be disposed of by public prosecutors instead of transferring them to the criminal courts. This step is meant to avoid long and complex processes before the criminal courts for reducing the overload of criminal cases in the UAE criminal courts which eventually might enable speeding up the process of criminal justice.
The Order tackles almost 30 offences, counting defamation, bounced cheques offences, traffic, and allows members of the Public Prosecution Department whose grade is not any lower than a senior prosecutor for issuing penal orders.
A limited form of appeal has been included: members of the Public Prosecution Department whose grade is not any lower than a chief prosecutor may change or withdraw any penal order within seven days of the date it was issued. The Case Examination and Follow-up Department in the Attorney General’s office is authorised to deliberate mitigating the penal order and, if suitable, withdraw or substitute a penalty with community service.
2. More sentences will be mitigated
The Order considerably reduces or mitigates a number of sentences instructed under the UAE Penal Code (Law No. 3 of 1987). The Order comprises 20 offences overseen by the Penal Code 18 which includes imprisonment and/or fine. But under the Order, these offences would be now punishable by just a fine which will not go over a recommended limit. The phrasing of Articles 1 and 2 of this Order leave the interpretation to the public prosecutor’s discretion to judge the offences as per the Order’s provisions. Ideally, the public prosecutor may have an option to those provisions or can follow the regular process of transferring offences to the suitable criminal court. It is important to note that the Order is tongue-tied on the criteria that should be practiced by public prosecutors while exercising their prudence.
3. Lower penalties in case of dishonoured cheques
Bounced cheques of an amount lesser than AED 200,000 (circa US$54,500) are considered within the ambit of the Order. Article 3(16) says that fines of AED 10,000 (circa US$27,22) would be applicable to individuals issuing cheques in bad faith, who don’t have sufficient funds and given the cheque amount is over AED 100,000 (circa US$27,229) but not higher than AED 200,000 (circa US$54,500).
The fine amount would be decreased as a pro-rata amount from the bounced cheque. In case the cheque amount is not over AED 50,000 (circa US$13,610), then the fine would be AED 2,000 (circa US$545). But if it’s more than AED50,000 (US$13,610) and doesn’t surpass AED 100,000 (US$27,229), then the fine would be AED 5,000 (circa US$1,360). This offence is punishable under Article 401 of the Penal Code and the criminal would get imprisonment of up to three years or has to pay a fine (between AED 1,000 (circa US$272) and AED 100,00 (circa US$27,229).
If there are multiple cheques relating to the same parties and their collective value is over AED 200,000 (circa US$54,500), then the Public Prosecution Department would combine such offences and would refer them to the Criminal Court.
For a Victim, a Fine is not a Solution
A fine in case of a dishonoured cheque is a criminal punishment; however it is not essentially a solution to the victim creditor. The public prosecution would directly implement any fine imposed using the accessible enforcement measures. This would leave the creditor with no solution rather than filing a civil suit for gaining a judgment compelling the debtor for paying the cheque amount.
Ideally, creditors should opt for the normal civil proceedings. Per the Civil Procedure Law (Law No. 11 of 2015) and the Executive Regulations of the Civil Procedure Law No. 57 of 2018, any creditor has the privilege to ask for adjudication of its application on a summary basis (that is before the fast-track court) by presenting a claim categorising the dishonoured cheque as a debt instrument. But, many UAE courts that are discarding this approach and rather preferring to study the merits of the claims instead of concluding them on a summary basis, results in a lengthier procedure. The Dubai Civil Courts usually ends up dealing with such claims on a summary basis.
Deterrent Penalties
It has become apparent that cheques do play an important role in the national economy, as majority of transactions involve a cheque. Thus, it is imperative that law enforcement must uphold integrity and reliability of cheques as an authentic method of payment. So it is vital to apply stern penalties to offenders or else, its reliability would be prejudiced.
- Article, India
- November 18, 2019
Do you wonder what is meant by value investing? Let’s take an example to understand this better. You and your friend buy a new television. You feel that your television is a better value buy than your friend’s because you got a good discount. However, it’s important to note that both of you might define value in a different way. Your friend might feel that her television is a value buy as it is a brand she likes and it has the latest features for the same price.
Likewise, the investors who do ‘value’ investing could have varying reasons for thinking that a particular stock is a ‘value’ buy for them. To define it, ‘Value Investing’ means selecting stocks that are trading at a lower price than their intrinsic value. Basically, you are choosing stocks that are undervalued.
The best value investors
Usually the mutual fund experts or managers who manage multiple stocks on a day to day basis are the best investors whom we could emulate. Mostly, fund managers abide by the value investing approach for managing their funds and all of them would define value in their own way. Even though all ‘value’ fund managers buy the stocks which they feel are actually worth a lot more than their current price, they wouldn’t agree on what is called as ‘good’ value. So, how do these definitions differ? Read on to find out.
The differences
Suppose there are two fund managers – A and B, who handle the best equity-diversified funds. Both of these are large-cap funds that invest money in large, blue-chip companies where the managers are following value investing. However, last year, A’s fund surpassed B’s fund. Wonder why? The reason is because of the difference in how they define value. A’s strategy was to pick stocks with strong fundamentals but they were being traded at a huge discount as compared to their intrinsic value. As per A, that is value investing. B also did value investing in his own way. He researched a lot and picked stocks that were trading lower as compared to others. This is also value investing. So, both the Mutual Fund managers followed value investing; however, their definitions of value were very diverse. That is why their funds performed in a different way.
Value investing styles
Relative
The relative value investing style or method is when the fund managers do a comparison of a stock’s price ratios to a particular benchmark. Examples are ratios like price-to-earnings ratio, price-to-sales ratio, price-to-book value ratio, etc. So in this case, the value is relative to a benchmark or standard. In case a stock is getting traded at a lower price when compared to an index, it is called to be undervalued. In this scenario, the benchmark could include any of the following:
- The Stock’s Historical Price Ratios – If a stock’s price is being traded at a lower price than its historical price ratio, then it is undervalued. Mostly, these stock prices are lower because of some ‘bad news’ or may be ‘negative vibes’ which might be floating in the market.
- The Industry or Sub-sector – When a stock is being traded at a much lower price as compared to other stocks in the same industry, then it is considered as undervalued. Thus, it’s important to make sure that the company’s fundamentals are strong, similarly as its competitors, who are trading at a high price.
- The Market – The benchmark mostly used by value investors is the broad market index or the market. A company which has strong fundamentals might go down as the overall industry could be in a bad phase. This scenario is common in cyclical industries like IT and consumer durables. For example, a few years ago, IT company stocks went down heavily because of the rupee appreciation and the panic that it would adversely affect the margins in the IT companies. However, fund managers took this as a buying opportunity.
Absolute
Absolute value investing is when the investors are not comparing a stock’s price to any set benchmark. Instead, they analyse the company’s worth in absolute terms. They buy the stock in case it’s trading at a lower price than this absolute value. These type of investors find a company’s value by means of factors like the company’s assets, its balance sheet, and growth projections, instead of competitors. They also examine if any private buyers, like other firms, have already invested in the stock.
Stay out of the box The major point to note here is that value investing is not falling for the bandwagon effect. In case there is some stock in which most people are investing in, then usually, a value investor would avoid it. Value investors like Warren Buffet have amassed so much wealth by not following the herd mentality. A value investor understands the real value of a stock and how he can benefit by investing in it when people are ignoring it.
- India, Newsletter
- November 14, 2019
Global accountancy network MGI Worldwide, headquartered in the UK, and association CPAAI (CPA Associates International),with its headquarters in the US, have announced that they will be merging on 1 January 2020 to create a new organisation with 257 member firms around the world.
The deal, finalised recently in Dubai, UAE, will create an organisation with revenues approaching $1 billion, placing it in 16th position in the current global accountancy network ranking. Both organisations have been active for more than 60 years in their markets and combined will offer clients access to almost 9,000 professionals in almost 100 countries. The merger will also offer member firms greater resources, access to more expertise in new jurisdictions, a wider range of services and stronger brand recognition. Global quality assurance will be available to CPAAI firms as they join the MGI Worldwide network. The two groups’ well-established markets, with CPAAI especially strong in the US, China and Mexico and MGI Worldwide with a greater global reach, are highly complementary.
The deal was agreed by members at the time of the MGI Worldwide global annual general meeting in Dubai, UAE – with many making use of the latest technology to vote and take part in the debate via live-streaming. Clive Viegas Bennett, CEO of MGI Worldwide, said: “This merger greatly strengthens the already solid market positions of both organisations and the resources for our member firms. Our new global and regional management team will be unbeatable. “For members, our coming together will bring a wide range of new benefits, access to more business opportunities, wider geographical scope and significant knowledge and technology exchange. “The merger will help us not only retain the excellent firms within our existing organisations but also attract new members who are looking for a different approach and greater support from a global international network.”
Michael Parness, the President of CPAAI, added: “Our organisation and MGI Worldwide have a lot of shared values, a similar client base and business DNA, so this merger makes sense in a world that is becoming ever more interconnected. “Clients remain at the heart of all members firms’ objectives and the merger ensures that they will be able to call on the expertise and support they need – regardless of where they operate in the world. “We are very excited about what the future holds for our newly formed organisation and we cannot wait to start developing new strategies and connections so that we can grow and flourish in this competitive marketplace.”
The new group will be co-chaired by Roger Isaacs, the Chairman of MGI Worldwide and Jim Holmes, the Chairman of CPAAI. Clive Viegas Bennett will serve as Chief Executive Officer, with Michael Parness as Chief Operating Officer.
The organisation plans to hold more regional meetings for its members in North America, Latin America, Europe, UK & Ireland, Africa, Asia, Australasia and the Middle East, to keep them abreast of technical and business developments, exchange business and expertise and deepen their strong regional structure.
To find out more about each organisation and the merger, please visit www.cpaai.com and www.mgiworld.com
- Newsletter, Saudi Arabia
- November 12, 2019
Saudi Arabia had announced multiple reforms in eight sectors which were being supervised by the World Bank.
Last week, there was an inauguration of the World Bank report on “Ease of Doing Business” in Saudi Arabia where various senior government officials, international diplomats, leading entrepreneurs and media was present. The presentation quality and the content were impressive.
The Commerce and Investment Ministry, led by Maid Al-Qasabi, was the main reason of these accomplishments in coordination and collaboration with other ministries. The World Bank report on “Ease of Doing Business” in Saudi Arabia was created on the basis of interviews with almost 50,000 international private-sector executives, who had found the Kingdom and made the utmost progress in the area of start-ups.
With regards to indicators, the Kingdom has come out with distinct rankings. For example, for setting up a new business, the Kingdom stood at the 38 position. It took the 28 ranking for receiving various permits, 18 place for electricity access, 19th position for property registrations, and the third rank for safeguarding minority investors. But, it slipped down a bit in regard to trading across borders (86 place), tax payments (57 position), enforcing contracts (51 rank), and resolving insolvency issues (168 place).
The result of this report has been mentioned is in the mainstream of the Saudi Vision 2030 mission, which aims to rely lesser on oil-based revenues and alongside implement the above-mentioned reforms to enhance revenues also from non-oil sectors and economic drivers. To go to the next level of reforms, Saudi Arabia should improve transparency even further, encourage fair competition and even better governance.
Though there is some degree of perplexity in the private sector of the country, which is still facing challenges in operating or establishing new businesses. Therefore, Saudi National Competitiveness Centre (NCC) should lay more emphasis on making the local sector completely aware of these improvements and how to take advantage from them in an effective and quick manner.
The announcement of this report is very timely with just a week for the Future Investment Initiative (FII) conference to happen and with various high-stature governmental delegations participating from the US, India, and Switzerland. It should offer more assurance in foreign direct investments (FDI) in various sectors in the nation.
The country and entrepreneurs should take advantage of the country’s rankings, while inviting international collaborations and partners to gain benefit from the new investment opportunities in Saudi Arabia.
- India, Newsletter
- November 12, 2019
India’s Prime Minister Modi recently attended the celebrations that marked 50-year of the Aditya Birla group in Bangkok this week. While addressing that gathering, he has invited global companies, industrialists and businesses to come and invest in India. Emphasising on innovations and start-ups, he said that the international companies and businesses would be received with open arms in the country.
The Prime Minister also mentioned that India has enhanced its ranking by moving up the ladder in the World Bank’s Ease of Doing Business. Now, the time is very suitable for company formation in India. He said that India is now going after the aim of becoming a five-trillion dollar economy by the year 2024. Mr. Modi also pointed that India’s GDP was approximately 2-trillion dollars when the government led by him took over in the year 2014; however, in just 5 years, it has now reached much higher at 3 trillion dollars.
The Indian Prime Minister also said that his government has done some noteworthy work in various fields, one being in taxation. In today’s times in India, the impact and support of painstaking taxpayers is treasured. He said that India is now one of the most people-friendly tax regimes and is dedicated to improving it further. He also mentioned that his government has worked hard to end the middleman culture and incompetence by bringing in Direct Benefit Transfer (DBT) system.
Mr. Modi also said that India is giving specific focus on improving connectivity with Thailand and all other Association of Southeast Asian Nations (ASEAN) countries as per its Act East Policy.
He anticipated that the direct connectivity between the ports of Thailand’s West coast and India’s East coast will enhance their economic partnership. He also said that his government’s steps and initiatives like ‘Swacch Bharat Mission’ (Clean India Campaign) and Smart City programme provide wonderful opportunities for improving this partnership.
While addressing the event, Kumar Mangalam Birla, the Chairman of the Aditya Birla Group, also said that India’s Prime Minister Modi has improved the country’s stature throughout the world. He said Mr. Modi has started various welfare schemes and now India is the third-largest nation globally in the start-up ecosystem after the US and China.
So if you want to know more about how to register a private limited company in India, please get in touch with us and we would be happy to assist you.
- Newsletter, Saudi Arabia
- November 12, 2019
Saudi Arabian General Investment Authority (SAGIA) and the Saudi Ministry of Commerce and Investment have recently implemented new regulations that will affect the processing of many government services offered to companies. This article outlines the newly adopted regulations requiring compliance with International Standard Industrial Classification of All Economic Activities (ISIC) and looks at how they will impact business operations of companies operating in Saudi Arabia going forward.
Business activities & ISIC compliance
All of the Management Consulting Activities have been shifted to Ministry of Commerce and Investment (MoCI) under the professional sector and directly licensed by MoCI now.
The grace period granted by the SAGIA and the MoCI to update business activities of all companies established in Saudi Arabia has elapsed and such companies must now, as a matter of priority, amend their business activities to comply with the ISIC. The following considerations should also be noted:
- The normal course of operations shall not be affected or jeopardized since companies should be able to provide the same scope of licensed activities in Saudi Arabia after complying with the ISIC.
- The licensing officials will only apply the equivalent ISIC codes against the relevant currently approved business activities in respect of each company as may be deemed necessary to ensure the continued performance of the same licensed business activities in Saudi Arabia.
- SAGIA does not currently charge any regulatory fees for the ISIC amendments of the Foreign Investment Licenses (FIL), noting that the expenses usually incurred are of two thousand Saudi Arabian Riyals (SAR 2,000) for each respective FIL.
In addition, one of the major recent developments under the ISIC is the licensing of the management consulting activities. All of the Management Consulting Activities have been shifted to MoCI under the professional sector and are now directly licensed by them.
At this stage, SAGIA will only be licensing “high management consulting services” which shall fall under SAGIA’s Services sector (the High Management Consulting Activities). The High Management Consulting Activities should mostly allow the performance of general consultancy services that are not classified under MoCI’s professional sector and without specializing in specific services, which include the accounting, taxation, management, economical, educational, translation and/or security sectors.
Scope of application and implications
These recent requirements by SAGIA and MoCI will apply to all companies registered in Saudi and significant implications include the following:
- Established companies in Saudi, to the extent required, must amend their FILs, Articles of Association and/or Bylaws (as the case may be) and Commercial Registration Certificates (the Constitutional Documents) in accordance with the ISIC.
- Companies previously licensed by SAGIA to undertake any Management Consulting Activities must amend their Constitutional Documents to either reflect the approved High Management Consulting Activities or discuss with their respective Saudi legal advisors the available structuring options under the professional sector (if applicable).
- Based on our recent interaction with SAGIA and MoCI, the substantive regulatory services, which include the renewal and/or amendment of the Constitutional Documents and appointment/dismissal of managers, will not be provided to companies that are not compliant with the ISIC. The officials will first request the respective company to amend its business activities in accordance with the ISIC (including the Management Consulting Activities) prior to processing any applications submitted to either SAGIA or MoCI.
Required action
The Constitutional Documents of companies must be reviewed and amended to reflect the ISIC requirements applied by SAGIA and MoCI.
- Newsletter, Singapore
- November 12, 2019
The last decade has been good for Asia as wealth has been created at a remarkable pace. This has resulted in the expansion and spurt of family offices in Singapore and Asia which are basically set up to assist the ultra-high net worth (UHNW) families to handle their wealth and also to help organise for the handover of wealth to the next generation.
The Monetary Authority of Singapore (MAS) hinted that between the years 2015 and 2017, the total number of family offices based in Singapore had multiplied four times. Though there is lack of official data which confirms the real number of family offices established in Singapore, the industry has seen a constant and stable growth in the years 2018 and 2019.
Singapore has been one of the preferred private banking and wealth management hubs for families in Asia, and it is thus a natural choice for setting up family offices.
Singapore is also a top choice because of its political stability, its highly educated, professional and efficient work force and a robust financial sector. It is surely advantageous that a good percentage of its proficient workforce has fluency in more than one language. This is because Singapore is a multi-cultural society and the education system there has always laid a lot of stress on its bilingual educational policy. Various UHNW families in this region usually feel more at home and comfortable in Singapore because of its culturally sensitive and global-minded workforce helping them with investment management and also on sensitive subjects like property planning needs.
Though most of the family offices based in Singapore are set up by Asian families, but there are many European and American families also who are opening their family offices in Singapore because they want to use Singapore as a doorway for their investments in Asia.
Service range provided
The main services offered by family offices based in Singapore are usually investment management or financial advisory. Since the growing Asian wealth reaches the inflexion point for inter-generational wealth evolution, many a times family office mandates also involve supporting with consolidating family governance and doing required arrangements to enable a smoother transition.
As the investments range across multiple countries or family members who dwell in various parts of the world, there is a rising consciousness of cross-border tax, legal, and regulatory challenges and for family offices to help the families to have a thorough plan for these matters.
In case where hiring a full-time in-house adviser is not possible or appropriate, then there are many international advisers based in Singapore who can help and guide family officers. Nowadays, family offices also invest a lot of time in arranging data and gathering information for families to comply with the dynamic regulatory and filing requirements internationally.
With regards to the range of investments, certain family offices have a primary task to handle the financial portfolio investments conservatively so as to stabilise the higher risks that they are exposed to in their domestic jurisdiction. However, some other family offices are operated like investment banks and also act as advisers to the chief family members. They assist in giving professional advice on a variety of matters such as how to handle the strategic listed stake in the founding business, find apt business opportunities which could be complementary to the existing businesses or otherwise, and assist in creating joint ventures or other club deals with various strategic partners. Though the family offices are based in Singapore, the several deals and investments they deliberate and do could be anywhere around the globe.
Singapore is an attractive destination to these family offices as it is a conducive place where one can actually expand and grow their business operations. It is reasonably simple to do business in this country, and there is a variety of liberal tax incentives that are available for sectors which the Government is wanting to foster. Proper structuring can usually be done efficiently, gaining from multiple tax and investment treaty networks which Singapore has to offer.
Family offices can also participate in offering a philanthropy advisory service and assisting in developing more well-thought-out and strategic policies for various families and their foundations. Asian families are gradually giving more meaningful amounts to several international philanthropic causes. Family offices enable in bringing a more professional attitude to the philanthropic projects and endeavours of the family. They could also offer administrative support to the family foundations or handle the funds that are donated to the foundations. It is important to note that not all family foundations handled by the family offices based in Singapore have to be registered as a Singapore charity; however, they may be designed to be eligible for such registration if it is advantageous to get registered. Income and profits of a registered charity in Singapore gets a tax exemption and some specific donations can eligible for a very substantial tax deduction of 250 percent for the donor.
- Newsletter, U.A.E
- November 12, 2019
Dubai is now taking measures to control or limit the number of state enterprises to lend more support towards the expansion of the private sector entities and enable their economic growth. To help with the already underway efforts by the governments to re-assess the function of both the public and private sectors, all the state-run businesses or enterprises would now only be set up to enable fulfilling national security or any governmental need. The government would only mediate and interfere in scenarios where the private sector is not capable of offering the services or goods required or wherever the government might attain a better result.
The higher committee is currently managing the demand and supply projections and giving guidance on sectors where private companies can possibly handle additional responsibilities. Besides this, new government entities are also expected to function without governmental prejudice, to help reduce any additional gain over private-sector partners.
The positive approach of the government in providing a level playing field for the UAE’s private sector, assisting to enable fair competition for all the big players in the market. There is still hope that with this new attitude and viewpoint, the private sector will be able to create newer jobs and company registration in Dubai, while also helping to enhance economic development in this region. So, if you aim for best company formation in UAE and need professional advice or guidance for the same, please get in touch with us and we would be glad to help.
- Newsletter, Singapore
- November 12, 2019
Singapore has been a preferred centre for establishing regional headquarters for carrying out business opportunities throughout Asia and ASEAN. The country got the status of a favoured investment hub and business destination in Asia mainly because of its simplified legal and tax procedures and because it’s one the most investor and business-friendly places in the world. Also, its financial system is very integrated with global financial markets, which acts as a bonus for company formation in Singapore.
This business setting has helped global investors to take benefit of Singapore’s approach to some of the biggest combined free trade sectors through ASEAN, including ASEAN-Hong Kong, ASEAN-China, and ASEAN-India free trade agreements (FTAs).
However, there are several other factors that help in making Singapore one of the best places for firms that want to start their business operations in the region.
Easy and well-organised set up process
If you are wondering on how to start a business in Singapore, you must know that the business processes and legal regulations in the country are quite easy and transparent, which means that most of the information that any business might require is usually available online. Hence, it becomes easier for global decision-makers to know more about the domestic market when they decide to enter it.
Businesses who have decided to set up their office here can use Bizfile, which is an electronic filing system combining all the tax and business needs in a single form, thus lessening the need to spend extra time and effort at various service centres. Bizfile is handled by the Accounting and Corporate Regulatory Authority (ACRA), which is the statutory body accountable for the supervising new companies getting formed in Singapore.
Another benefit is that the effort, cost and time spent in setting up in Singapore is comparatively lesser. Foreign entrepreneurs can pay US$254 (S$300) to register a company through Bizfile and it costs about US$10 (S$15) for registering the company’s name. The good part is that usually the applications are processed on the same business day; but, the process can also take anywhere between 14 days to two months if they are to be reviewed by any government agencies.
The well-organised and cost-effective nature of corporate set up in Singapore has amounted to over 37,000 global companies and almost 7,000 multinationals working in the country. This is also one of the reasons why the city-state is always positioned among the top three economies world-wide and in the Ease of Doing Business report.
Favourable tax environment
Singapore’s positive tax regime is globally recognized for permitting entrepreneurs and businesses to enjoy low tax rates and various types of tax relief – via incentives, exemptions from specific incomes and comprehensive tax treaty networks.
Singapore’s corporate tax regime is supposedly one of the most attractive and best in Asia. Entrepreneurs can take benefit of the flat 17 percent corporate income tax rate for any profits they make over S$300,000 (US$217,000) and it is 8.5 percent for profits that go up to S$300,000 (US$217,000).
Additionally, as the Singaporean tax system functions on a territorial basis, businesses are not taxed on most of the globally-sourced incomes (like incomes from dividends or from branch profits) that are sent into Singapore; as long as they are paying tax in the source country at a rate of minimum 15 percent. Another benefit is that there is no capital gains tax in the country.
Robust DTA and FTA networks
One of the major advantages of setting up a holding company in Singapore is the country’s network of 24 FTAs and 85 double taxation agreements (DTAs).
There are mainly two types of DTAs operational in Singapore – comprehensive and limited. Comprehensive DTAs include all income types and permit exchanging of tax information; however, restricted DTAs cover income which is derived from shipping and air transport.
These DTAs also comprise treaties done with ASEAN’s 10 member states, which are, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam; thus offering companies with a better competitive edge while entering this market.
Besides, this country also boasts of exclusive access to the biggest combined free trade sectors due to its multiple agreements with ASEAN and its FTAs with countries such as China, India, Hong Kong, and the EU. Singapore is also in the process of negotiating new FTAs in collaboration with the Eurasian Economic Union (EAEU) and Pacific Alliance-Singapore.
Singapore – an easy entry into ASEAN
Singapore is well-positioned to assist the investors to steer through the challenges and newer opportunities offered by ASEAN markets. For example, its effective setup processes, integrated supply chains and competitive tax environment have enabled Singapore to move ahead of conventional holding locations in the region, like Malaysia, and give competition to well-established international investment centres such as Hong Kong.
But there are many softer factors that place Singapore as one of the best and ideal places for companies that want their regional headquarters to grow and expand into ASEAN and Asia.
People of this country share multiple cultural and linguistic connections along with ASEAN members, while English is their main working language. Its highly-skilled and professional workforce is armed to act as an intermediary for investments coming in Asia while communicating to the best of their ability with global investors.
Singapore’s significance as a management hub for getting into the ASEAN markets is now growing in importance, more than ever.
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