NEWSLETTER,SINGAPORE Archives

NEWSLETTER,SINGAPORE

A Comprehensive Guide to Understanding ESG Principles in Singapore

February 13, 2024

With the business environment booming in Singapore, the focus on Environmental, Social, and Governance (ESG) principles has intensified significantly in recent years. The need for ESG reporting Singapore is such that forward-thinking entities are working with professional teams to ensure compliance. The country is known for its robust business infrastructure and commitment to sustainability. It stands at the forefront of the ESG movement, showing the way from the front.

In this edition of our newsletter, we will take you through a journey where you can explore ESG practices in Singapore in detail. Get familiarized with the regulatory framework, emerging trends, and the essential roles businesses should play to comply with ESG guidelines. We have presented you with further insights into sustainable finance and stakeholder engagement.

ESG in Singapore: Why does it matter to Businesses?

ESG principles in Singapore serve as a guide for commercial entities, incorporating environmental, social, and governance factors into their operations and decision-making processes. In Singapore, complying with these principles is not just a trend but a fundamental aspect of corporate governance.

For new and established businesses in Singapore, creating an ESG strategy is crucial. With professional support from established players in the industry, entities can formulate these tactics.

At the heart of Singapore’s commitment to sustainability lies a robust regulatory framework designed to incentivize and enforce ESG practices. Key regulatory bodies such as the Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) have introduced guidelines and initiatives to promote transparency and accountability among corporations. Singapore continues to enhance its corporate governance landscape, with improvements seen across various sectors according to the “Governance and Transparency Index 2021”. This demonstrates the dedication of the country to fostering a culture of transparency and accountability.

Emerging Trends of ESG Principles in Singapore

The adoption of ESG principles in Singapore has witnessed a surge in recent years. This has largely been driven by factors like increasing investor scrutiny, changing consumer preferences, and regulatory norms. Businesses operating in different verticals of the industry are embracing sustainability initiatives. They consider them as a moral requirement, along with a strategic advantage for businesses.

According to a recent study, 84% of the surveyed companies in Singapore incorporated ESG principles into their business strategies. Most of these entities seek ESG advisory services from professional companies to remain on track. A majority of investors stated that they would pay a premium for companies with strong ESG performance. This demonstrates the correlation between sustainability and financial performance.

Innovation and Technology

Innovation and technology play a pivotal role in the context of sustainability. The thriving business ecosystem in Singapore for research institutions and startups is witnessing groundbreaking solutions to address environmental challenges. These guidelines further promote social equity and enhance governance practices. One notable example is the collaboration between the National University of Singapore (NUS) and various industry partners to develop sustainable solutions for waste management. The Circular Economy Innovation Network (CEIN) and other similar initiatives foster better collaboration and innovation to drive sustainable development.

Thanks to ESG software implementation, businesses can now adhere to the prescribed principles and stay ahead.

Sustainable Finance

In recent years, sustainable finance has emerged as a key factor for ESG integration in Singapore. This provides financial institutions with tools and frameworks to support environmentally and socially responsible investments. As a top player in the financial hub, Singapore has positioned itself at the forefront of this movement.

The MAS has also introduced initiatives such as the Green Finance Action Plan and the Sustainability Linked Loan Grant Scheme to promote sustainable finance practices among financial institutions and corporates. All these efforts are channelling capital towards sustainable projects and businesses while managing environmental and social risks.

Stakeholder Engagement

Effective stakeholder engagement is essential for the successful implementation of ESG principles. In Singapore, businesses are increasingly recognizing the importance of engaging stakeholders. These include investors, employees, customers, and communities.

Studies reveal that 68% of investors in Singapore prioritize stakeholder engagement as a critical factor while evaluating the ESG performance of a company. This marks the growing importance of building trust and transparency through meaningful stakeholder dialogue.

The evolving landscape in Singapore explains the value of ESG advisory services from professional teams.

Why is ESG Advisory Services Crucial for Businesses in Singapore?

Considering the importance of accurate ESG reporting Singapore, successful businesses are turning to experienced experts for comprehensive assistance. The IMC Group continues to be a reliable partner for ESG advisory. With proactive measures and strategic initiatives, this company helps its clients uphold the highest standards of corporate governance. The professionals also assist corporates in ESG software implementation to streamline their operations in Singapore. A holistic understanding of regulatory frameworks and emerging trends can mitigate risks and open up fresh opportunities for growth and innovation.

NEWSLETTER,SINGAPORE

Strategic HR Trends 2024: Singapore’s Path Forward

February 1, 2024

Recognized as a hub of ingenuity and a forward-thinking business milieu, Singapore provides an intriguing setting to delve into the constantly changing HR panorama. We are on the verge of commencing a spellbinding odyssey through the pivotal patterns that will reshape the realm of employment in the City of the Lion.

2024 HR Trends in Singapore

Remote Work: Expanding Horizons

Distant employment is not merely a fad; it signifies a transformative change in our perspective of the work environment. Recent occurrences have thrust this methodology into the forefront. By 2024, remote employment will cease to be optional; instead, it will form the fundamental basis of HR approaches, providing unmatched adaptability and entry to an extensive pool of skilled individuals. Integrate team-building pursuits for remote settings that will nurture a sense of unity and guarantee that individuals working remotely are linked with their peers and have equitable chances for advancement.

AI in Recruitment

Advanced AI algorithms rapidly analyzing CVs and identifying exceptional candidates, liberating HR experts to focus on strategic initiatives. Come 2024, Recruitment driven by artificial intelligence will serve as the enchanted tool that simplifies hiring procedures, rendering them swifter, more effective, and ultimately more triumphant.

Unity in Diversity

Celebrating diversity will be a priority, and the commitment to inclusion will be unwavering. Organizations will strive to establish environments where every employee feels appreciated, irrespective of their background, gender, or orientation.

Hybrid Work Mastery Initiatives: Achieving Balance

The traditional office, previously a daily necessity, will evolve into an optional workspace. Businesses will design hybrid work setups, enabling employees to manage both in-office and remote work, preserving the essence of collaboration while providing the flexibility to work from any location.

Shaping Tomorrow's Workforce Skills

In 2024, Singapore’s dedication to lifelong learning becomes even more pronounced. Employers will actively endorse skill development, including payroll services, by offering chances for upskilling and reskilling and addressing skill gaps through career development opportunities. This guarantees that their workforce stays not only competitive but also ahead of the curve. Begin with advanced learning management systems, streamlining training and development to ensure an efficient and user-friendly process.

Leadership Development: Shaping Future Leaders

Robust leadership will serve as the guiding beacon steering organizations through the winds of change. Businesses will allocate resources to leadership development, refining the skill sets necessary to navigate the ever-evolving business landscape.

Eco-Friendly HR Approaches: Guiding Sustainability

At the heart of HR practices, sustainability will prevail. Enterprises will embrace environmentally conscious policies and promote sustainable behaviours among their staff, guaranteeing that the future workplace is not only productive but also environmentally aware.

Employee Well-being

In 2024, the focus is not solely on business; it revolves around people. Employee well-being will take center stage in HR practices. Companies will dedicate resources to initiatives that prioritize mental and physical health and financial well-being, acknowledging that a content and healthy workforce is also productive.

Digital Onboarding Insights

Conventional initiation procedures will yield to digital methods, amplifying effectiveness and guaranteeing a hospitable reception for incoming staff members.

HR and Blockchain: Ensuring Trustworthy Transactions

The use of blockchain technology will transform HR, validating employee credentials, maintaining data integrity, and bolstering the reliability of HR procedures.

Advanced Data Analytics

In 2024, HR professionals will possess greater proficiency in data utilization. Advanced analytics will act as the guiding light, assisting HR professionals in making well-informed decisions related to hiring, employee engagement, and performance evaluations.

Intelligent Workplace Technology: Enhancing Work Experience

Human Resources will utilize smart office technology to establish an environment that fosters productivity and enhances employee comfort.

Future-Focused HR Analytics Insights

Anticipatory HR analytics will enable organizations to anticipate talent requirements and implement proactive measures to tackle workforce challenges, gaining a competitive advantage.

Building an Employer Brand: Attracting and Retaining Premier Talent

Establishing a strong employer brand will be a strategic focus to draw in and keep top-tier talent.

Versatile Work Arrangements: Powering Innovation

Amidst a complex environment, flexible work arrangements with cross-functional teams will serve as the catalyst for innovation and effective problem-solving.

Encouraging Belonging: Workplace Resource Groups

Affinity groups for employees will promote diversity and inclusion, ensuring that each employee senses being an essential part of the team.

Gaming for Growth: The Fun Path to Educational Success

Education will adopt gamification, transforming training into a captivating journey for employees, resulting in an enjoyable and productive equilibrium between work and personal life.

Mental Health Support

Emotional wellness will become a focal point as a primary concern. Companies will provide therapeutic support, stress mitigation initiatives, and establish environments free of judgment, nurturing mental well-being.

Freelance Ecosystem Expedition: Navigating Integration

The freelance landscape isn’t merely a passing phenomenon; it represents a transformative shift. Singapore will wholeheartedly welcome independent workers, presenting increased chances for project-oriented employment setups and cultivating a collaborative ethos between permanent staff and freelancers.

Securing the Cyber Landscape: Advanced Training Strategies

Given the increase in remote work, cybersecurity training becomes crucial for safeguarding sensitive data and ensuring secure online operations.

Virtual Learning Realities: Navigating the Future of Training

Cutting-edge training approaches, such as programs utilizing virtual reality, are set to envelop employees in interactive learning encounters, enhancing both the engagement and effectiveness of training sessions.

Customized Rewards: Personalized Benefits Packages

The advantages will be as distinctive as the employees themselves. Highly adaptable benefit packages will address varied employee requirements, nurturing loyalty and job contentment.

Conclusion: Mapping Your HR Path

The 2024 HR trends in Singapore are more than just passing fads; they serve as keys to unlock a future filled with boundless opportunities. From the evolution of remote work to AI-driven recruitment and initiatives promoting diversity and inclusion, these trends embody a dynamic and inclusive vision for the workplace. To prosper in this constantly evolving landscape of industry trends affecting business performance, adopt these trends and navigate your way to success by enhancing positive employee experiences for a transformative impact on your business, including payroll services.

Thank you for being a part of this exciting journey into the future of HR digital transformation in Singapore. The adventure is only just beginning, and the most promising moments lie ahead for you as business leaders!

NEWSLETTER,SINGAPORE

Strategic Insights and Regulatory Updates on Singapore Fund Management

January 11, 2024

On October 24, MAS launched a comprehensive public consultation to streamline the regulatory norms for fund managers. The proposed changes involve phasing out the Registered Fund Management Companies (RFMC) regime. This is a crucial move to reinforce regulatory oversight and enhance the standards of the industry.

Introduced in 2012, the RFMC regime succeeded the Exempt Fund Managers (EFMs) regime. It went a long way in enhancing regulatory oversight. MAS is proposing that existing RFMCs re-register as Licensed Fund Management Companies (LFMCs), to align with current industry standards and cater to accredited or institutional investors (A/I LFMCs).

Transitioning Process and Key Changes

Existing RFMCs interested in becoming A/I LFMCs will be required to submit a detailed form within a prescribed application window. This form will specify their assets under management and confirm their commitment to adhere to regulatory requirements established for A/I LFMCs.

RFMCs can continue their operations as usual during the transition period. MAS will retain the SGD 250 million limit on managed assets and a maximum of 30 accredited or institutional investors for RFMCs. RFMCs opting for this transition will not incur any application fees. This will facilitate a smooth transition and encourage the participants of the market to adapt to the evolving regulatory norms.

According to MAS, the RFMC regime has helped in the transition from the EFM regime. A number of RFMCs have become A/I LFMCs, and new entrants are willing to carry out management in Singapore. They are not interested in applying to be RFMCs, but A/I LFMCs.

Next Steps

Participants of the industry can provide their valuable feedback and insights on these proposed changes to MAS till December 31. This brings an opportunity for stakeholders to contribute to regulatory adjustments to further refine them.

At the IMC Group, we understand the significance of staying informed and engaged in regulatory discussions. We encourage our partners to actively participate in the consultation process. This ensures that they can consider diverse perspectives in shaping the future of fund management in Singapore.

NEWSLETTER,SINGAPORE

A Comprehensive Guide to Investing in Singapore Real Estate

December 12, 2023

In a recent survey carried out by CBRE, Singapore emerged as the third most preferred destination for cross-border real estate investment in the Asia-Pacific region in 2022. With the real estate industry in Singapore looking promising, it presents lucrative opportunities amidst stability and resilience. Being a forward-thinking investor, you might be thinking about how to start real estate business in Singapore. Whether you are considering your first real estate venture or happen to be a seasoned investor, this newsletter will help you gain the essential knowledge to make strategic decisions.

Singapore has emerged as a prime hub for global investors to put their money into real estate. The government of Singapore came up with a strategic approach while combating the challenges posed by the Covid-19 pandemic. As a result, the country’s real estate industry has witnessed a steady increment in property prices. Along with its strong global commercial infrastructure, the booming real estate market positions the country as a promising and secure investment destination, where you can capitalize on mid- to long-term benefits.

What Makes Singapore A Prime Investment Hub for Real Estate Investors?

A plethora of factors fuelled the real estate boom in Singapore, positioning it as a prime hub for global investors.

Sophisticated digital infrastructure: Singapore boasts edge-cutting digital infrastructure, a crucial aspect defining efficiency and connectivity for modern investors.
Competitive workforce: The country has a workforce known for its competitiveness and diversity. For businesses seeking a skilled pool of talent, Singapore has emerged as a top investment destination.
Expanding Central Business District: Singapore’s Central Business District has been consistently expanding, further strengthening the country’s position as a regional centre of business and wealth. For savvy investors, it holds immense potential for returns.
Work-life balance: The typical Singaporean lifestyle is defined by the much-needed work-life balance. This makes it a preferred destination for both expatriates and residents.
Low crime rate: Given that safety is paramount, the country boasts a negligible crime rate. Thus, a secure environment helps businesses and investors thrive.
Political and economic stability: With political and economic stability ensuring a peaceful environment for residents and businesses, investors are drawn towards the country for secure deals.
Strong dollar value: The Singaporean dollar has been performing pretty well compared to other currencies. This makes it a preferred hub for investment in the long run, particularly in the real estate segment.
Regulation of financial institutions: In Singapore, financial institutions remain under the scrutiny of the authorities. This serves as a source of confidence for investors, who trust the financial ecosystem in the country while investing in real estate.

Your Guide to Residential Real Estate Investment in Singapore

This guide through the crucial steps will help you make an informed decision before channelling your funds into the sector.

1. Preliminary Considerations

In the first place, investors should have a clear understanding of their preferences and investment goals. While it’s imperative to evaluate the market and the economic conditions in the market, the process turns out to be a painstaking one.

2. Hiring a Professional Team

Consulting one of the trusted agent works wonders, provided the professional addresses your interests, not the sellers’. Identifying investment hot spot for wealthy foreigners in Singapore is crucial, and having a professional agent to guide you largely helps. Besides, it’s advisable to consult an experienced real estate lawyer, who can help you identify the potential pitfalls of the property and understand necessary legal aspects. In case financing is a part of your plan, make sure to loop in a financial adviser.

3. Structure your Real Estate Purchase

At this stage, it’s imperative to consult your lawyer regarding the ownership structure. These experts can also help you optimize your tax planning and make significant savings. The stamp duty implications and costs largely depend on your residency and citizenship. Get these aspects clarified by the professionals.

4. Get Financial Advice

Do you want to get your new property in Singapore finances through a bank loan? It’s imperative to explore all your funding options. Reach out to financial advisors to get potential valuations and evaluate your loan options. Accordingly, you can communicate with your lawyer, real estate agent, and financial adviser.

5. Choosing your Property

Prioritizing your investment goals, choose between apartments and land in Singapore. It’s crucial to understand the concepts of leasehold and freehold properties along with their respective tenures and implications. Investors should prioritize the benefits of purchasing the property during the construction process or after it is ready for possession.

6. Focus on the Buying Process

When you start looking for a viable property in Singapore to purchase, establish a strong support team. Hire a proactive real estate lawyer to carry out the necessary due diligence on the property. The last thing you would want is to land in legal trouble with the necessary papers not in place.

7. Get Tax Advice

While you may remain obsessed with the property-buying process, it’s easy to overlook taxation norms. It’s advisable to consult reputed tax professionals for valuable advice on tax structuring and optimizing your investment. It’s crucial to understand the implications of stamp duty on the type and value of your property.

8. Securing your Investment

Once you are done with the property purchase formalities, make sure to get it insured to secure your asset. If you are investing in the property for rental income, negotiate terms with tenants to make the most of your investment. As a landlord, it’s wise to stay abreast of your responsibilities and liabilities.

Professional Support Matters during Property Investments in Singapore

The real estate market in Singapore presents a wealth of opportunities for those looking to invest wisely. The IMC Group continues to be your trusted partner for Singapore company incorporation, besides providing professional advice regarding taxation and finance. Supporting you at every step, we provide valuable insights and personalized solutions for your real estate ventures in Singapore.

NEWSLETTER,SINGAPORE

Enhanced Tax Incentives for Single Family Offices in Singapore

November 13, 2023

In a move to encourage higher investment in social and environmental causes, the Monetary Authority of Singapore (MAS) has updated its guidelines for SFOs (Single Family Offices) looking for tax incentives under the Section 13O and Section 13U schemes. These changes are likely to benefit your single family office in Singapore, fetching you better tax incentives and shift the focus to develop sustainable investment practices.

Have a look at the key policy updates and their respective implications.

Minimum Assets Under Management (AUM)

Currently, the minimum AUM for the 13O Scheme stands at S$20 million while applying. This has to be maintained throughout the incentive period, eliminating any grace period
At S$50 million, the minimum AUM for the 13U Scheme remains unchanged while applying as well as the period throughout incentives
The updated norms highlight the need for SFOs to have a financial buffer in their plans. This ensures that they can fulfill the criteria even when markets remain volatile

Investment Professionals (IPs)

The 13O Scheme makes it mandatory for an SFO to use at least two IPs, where there should be at least one non-family member IP
IPs in Singapore should hold relevant qualifications for fund management and maintain tax residency
According to the 13U Scheme requires at least three IPs, including one non-family member IP

These requirements related to staffing enhance the professionalism of SFOs. Besides, they help in creating job opportunities in the local wealth management industry.

Minimum Spending Requirement

According to the 13O Scheme, local business expenses should be at least S$200,000 per financial year. This is subject to the Tiered Spending Requirement Framework
According to the 13U Scheme, at least S$500,000 has to be spent on local businesses in a financial year, also subject to the same framework

The tiered framework ensures that SFOs contribute to the local economy, thereby enriching the business landscape in Singapore.

Tiered Spending Requirement Framework

This framework encourages SFOs to progressively invest more in local businesses, aligning their strategies with Singapore’s economic development goals. Have a look at the Tiered Spending Requirement Framework.

Capital Deployment Requirement (CDR)

Under the updated guidelines, funds must allocate at least 10% of their AUM or S$10 million for particular local investments
The list of eligible investments has been expanded to include climate-related projects and blended finance structures that involve substantial participation from Singapore-licensed/registered financial institutions
Multipliers have been introduced to incentivize certain investments, helping SFOs meet the Capital Deployment Requirement and facilitating their contributions to the local economy.

These newly introduced guidelines aim to make the 13O and 13U Schemes more flexible for Single Family Offices. This will foster an environment conducive to sustainable investments and economic growth. Besides, they promote a higher degree of professionalism within the SFO sector. In the process, Singapore further solidifies its position as a dynamic hub for family officers, emerging as a leader in responsible wealth management.

With Singapore’s SFOs growing popularity, you may partner with one of the trusted companies like the IMC Group to make the most of the opportunities. Professionals can help you maximize your tax incentives as you grow your single family office in the country.

NEWSLETTER,SINGAPORE

Why do Foreign Businesses Choose Singapore Over Other Countries?

October 10, 2023

Singapore has long held its status as a premier destination for international companies. Whether it’s an international expansion or setting up company headquarters, the country has been the focal point for commercial ventures across ASEAN and Asia. The favorable legal and tax regimes largely shape the country’s status as a preferred investment destination in Asia. Singapore boasts a highly integrated financial system, besides being one of the most investor and business-friendly countries in the world. Forward-thinking businesses rightly seek professional assistance for company formation in Singapore to fast-track the process.

Singapore’s financial system is deeply integrated with the global market, positioning the country as a strategic gateway to some of the largest combined free trade areas through ASEAN. This includes free trade agreements (FTAs) in ASEAN-Hong Kong, ASEAN-China, and ASEAN-India.

However, there’s much more for businesses in store in Singapore beyond financial perks and tax incentives. Let’s explore the aspects that make Singapore an ideal destination for businesses.

The Geographic Advantage

Singapore boasts a prime location in the heart of Southeast Asia, located between Indonesia and Malaysia. This strategic positioning provides seamless access to transport and trade links across the region. Being centrally located, Singapore continues to be an alluring destination to some of the most rapidly expanding and vibrant markets of the world.

For investors looking forward to capitalizing on the opportunities in the ASEAN markets, Singapore offers a seamless pathway to business. Thanks to its competitive tax environment, efficient setup procedures, and seamless supply chains, the country stands out as a global destination for investment. In recent years, Singapore has even surpassed traditional regional choices like Malaysia.

Interestingly, the Port of Singapore ranks among the best-connected and busiest global seaports. It connects 120 countries through more than 600 ports across the world. Besides, the Singapore Changi Airport continues to be one of the largest transport hubs in Asia. It handles more than 68 million passengers and over two million tons of air freight annually.

Singapore’s multicultural society, with various cultural and linguistic connections to ASEAN members, delivers a strategic advantage to the country. In Singapore, English is the primary working language. This fosters effective communication with investors from all over the world.

The highly skilled local workforce in Singapore acts as intermediaries for investments in Asia. This ensures a smooth market entry for international businesses, along with optimal profit maximization. No wonder, why Singapore continues to strengthen its position as a key business and management hub in Southeast Asia.

Guide to Incorporating Your Business in Singapore: Essential Checklist

Tax Incentives for International Businesses in Singapore

Singapore welcomes companies with a wide array of fiscal and non-fiscal incentives to strengthen economic development in the country. Applicants need to fulfill stringent criteria, commit to specific investment levels and introduce cutting-edge skills and technology. These incentives aim to promote innovation and economic growth in the country. In return, Singapore offers privileges like reduced corporate income tax rates. The country has several schemes in place like Double Tax Deduction for Internationalization, Start-Up Tax Exemption Scheme, Progressive Wage Credit Scheme, and more. Besides, businesses can tap sector-specific incentives if they operate in industries like tourism, maritime, or biotechnology. To fully benefit from these incentives, it’s imperative to understand the compliance requirements, eligibility criteria, and application procedures.

So, if you aren’t sure about how to set up a local company in Singapore, it’s logical to seek professional support from established companies.

Favorable Corporate Tax Regime in Singapore

Singapore’s corporate tax regime is among the best in Asia. For commercial profits, it features a corporate income tax rate of flat 17%. The territorial tax system ensures that companies are not taxed on most types of foreign-sourced income. However, they need to pay at least 15% tax at the source country. Besides, international businesses operating in Singapore need not pay any capital gains tax, further positioning the country as an outstanding destination for investment.

A Network of Agreements

One of the paramount advantages of running an international business in Singapore is the extensive network of nearly 100 double taxation agreements (DTAs). The country also has 24 free trade agreements (FTAs) in place which are both limited and comprehensive. They cover different types of income and facilitate tax information exchange. The presence of FTAs with ASEAN member states enhances the country’s competitiveness in the vast market.

The FTAs of Singapore also extend to India, Hong Kong, ASEAN, China, and the EU. Moreover, the country is actively negotiating new FTAs with the Pacific Alliance-Singapore and the Eurasian Economic Union (EAEU).

The Ease of Doing Business

The transparent business and legal regulations in Singapore ensure ready access to essential information online. This simplifies the process of exploring the market for overseas decision-makers. Singapore has consistently benefitted from this transparency and efficiency, earning top rankings in global reports like the World Economic Forum’s Global Competitiveness Report and the World Bank’s Ease of Doing Business report.

From establishment to dissolution, bureaucratic procedures for companies can be executed online through BizFile, ACRA’s (Accounting and Corporate Regulatory Authority) portal for online business filing.

Robust Intellectual Property Protection

Singapore continues to demonstrate high standards of commitment when it comes to safeguarding intellectual property (IP) rights with its transparent legal system. The Intellectual Property Office of Singapore (IPOS) shoulders the responsibility of overseeing this aspect. The country also boasts a specialized IP court and the only office of the World Intellectual Property Organization (WIPO) outside Geneva, the WIPO Arbitration and Mediation Center. Singapore’s Copyright Act, Patent Act, and Trademark Act are in place to streamline global businesses.

The IMC Group, consisting of an expert team of professionals, offers comprehensive Singapore company registration for foreigners assistance. Reach out to us to benefit from a rapid and hassle-free market entry, ensuring legal compliance, and stride ahead with your business.

NEWSLETTER,SINGAPORE

Singapore Announces New Immigration and Employment Regulations

August 14, 2023

The Singapore government has introduced several changes to the country’s immigration and employment regulations that will impact organizations in 2023 and beyond.

A new points-based system will govern employment passes for foreign professionals starting September 2023. Applicants will need to meet salary thresholds and pass an assessment considering qualifications, diversity, skill shortages and other factors.

Meanwhile, enhanced workplace guidelines aim to promote fairness and prevent discrimination. Employers must make employment decisions based solely on job requirements and not pressure staff to join non-work activities.

New anti-discrimination legislation expected in 2024 will prohibit bias based on age, race, disability and other attributes during recruitment and employment. Penalties for non-compliant employers may include fines, corrective orders and compensation to victims.

On the benefits front, paternity and infant care leave will be increased from January 2024. The monthly salary ceiling for employer CPF contributions will also be raised in phases starting September 2023.

These changes warrant a review of hiring practices, workplace policies and benefits management to ensure compliance and minimize legal risks. Tapping external expertise can help organizations successfully adapt to the evolving regulations.

With extensive experience enabling Employment Passes in Singapore, IMC Group is well positioned to advise companies on immigration compliance. Contact IMC today to learn more about aligning your foreign workforce strategies with the new immigration rules.

NEWSLETTER,SINGAPORE

UK and Singapore Tech Ties Strengthened with New Data and AI Agreements

July 12, 2023

The UK and Singapore have committed to jointly advancing government use of data and emerging technologies. Two new Memorandums of Understanding (MoUs) were signed this week during UK Deputy Prime Minister Oliver Dowden’s visit to Singapore.

The agreements between the UK’s Department for Science, Innovation and Technology and Singapore’s Ministry of Communications and Information and Smart Nation and Digital Government Office aim to deepen research and regulatory cooperation. They build on the UK-Singapore Digital Economy Agreement and Free Trade Agreement, supporting the £11.4 billion in annual services trade between the nations.

Deputy Prime Minister Dowden said: “Emerging technologies like AI present opportunities and challenges for all countries. By cooperating on research, regulation and government use, we can deliver better public services. The UK and Singapore are tech leaders, and these agreements will strengthen that position and boost trade and investment.”

Singapore Minister for Communications and Information Josephine Teo commented: “These MoUs build on our recent deals in digital trade, identities and cybersecurity. The speed and rigor of our collaboration shows our strategic alignment on the digital economy, AI, future communications and data.”

The MoUs will enable “tangible benefits for businesses and people,” she said.

UK Technology Secretary Chloe Smith added: “Agreements like these drive the PM’s vision of the UK as a leading tech nation, especially in fast-evolving areas like AI. As advanced tech economies, the UK and Singapore will benefit greatly from close cooperation on new technologies and data use.”

The Emerging Technologies MoU commits to

Sharing experiences implementing new infrastructure like 5G to improve connectivity.
Promoting AI business partnerships and replicating ‘trustworthy’ AI.
Aligning AI technical standards.
NHS and Singapore research on using AI to enhance healthcare.

The Data Cooperation MoU commits to:

Increasing digital trade and sharing data use best practices to improve government efficiency.
Establishing an intergovernmental dialogue on data regulation, protection and transfer.
Sharing research on using data to deliver better public services and growth.
Developing standards for publishing anonymised government data to enable global cooperation.
Sharing best practices for government and public-private data management.

Together, the MoUs position the UK and Singapore as leaders in data-driven tech and governance. With rapid digitalisation and an exponential rise in cross-border data flows, establishing models of open yet secure data access and use is crucial.

These agreements indicate a shared commitment to navigating the frontiers of emerging tech and establishing a governance blueprint for the digital age. By openly exchanging lessons learned and forging a joint vision of responsible data and AI advancement, the UK and Singapore can set standards for optimising the benefits of technology in government and business.

At this watershed moment, data and AI partnerships between advanced and trusted nations are pivotal. The UK-Singapore partnership serves as a model for ethical digital cooperation and governance on a global scale.

To learn more about data, AI, technology partnerships, and steps to incorporate a company in Singapore, contact IMC Group. As leaders in forging and facilitating multinational technology collaborations, IMC is well-positioned to provide strategic counsel and support in identifying, negotiating, and implementing impactful global data and AI alliances.

NEWSLETTER,SINGAPORE

Ultra-Rich Foreigners Remain Attracted to Singapore Property Market Despite Cooling Measures

June 13, 2023

Singapore has recently doubled the additional buyer’s stamp duty (ABSD) for foreign buyers of residential property from 30% to 60% in a bid to dampen investment demand. However, experts believe that this measure will not significantly deter ultra-rich foreigners from investing in Singapore’s property market in the long term.

The latest round of property cooling measures has raised concerns among foreign buyers, with some questioning if the 60% ABSD rate is the final increase. Experts acknowledge that the higher ABSD rate may initially discourage foreign buyers looking to settle in Singapore. However, they believe that they will eventually “come to terms with it, bite the bullet and move on.”

According to the Urban Redevelopment Authority, foreign buyers accounted for 6.9% of property purchases in Singapore in the first quarter of 2023, up from 3.1% during the same period last year. Minister for National Development Desmond Lee has defended the ABSD increases as a “pre-emptive measure” to curb both local and foreign investment demand in the residential market.

Foreign buyers who are considering purchasing residential property in Singapore to establish roots and contribute to the economy may initially think twice about investing due to the increased ABSD rate. However, instead of looking towards other cities, some may even consider applying for permanent residency sooner than planned, primarily because Singapore is viewed as a safe and comfortable environment.

Singapore’s reputation as a safe haven is a major draw for foreign investors. The country’s excellent infrastructure, education system, and public services make it an attractive destination for ultra-rich individuals looking to relocate their families. Despite the 60% ABSD rate, experts predict that demand for Singaporean property will remain strong in the long term.

The initial reaction to the ABSD increase is expected to result in a temporary dip in demand over the next three months. However, ultra-high net-worth individuals will likely still invest in Singapore’s property market once they have adjusted to the new rates.

While foreign buyers currently represent a small proportion of property purchases in Singapore, their presence can have a significant impact on the market. Increased demand from foreign investors can lead to spillover effects on the surrounding market, and changes to the ABSD rate can trigger chain reactions.

However, there are concerns about the potential consequences of a major market correction, which could threaten the integrity of the financial system and have widespread implications for the economy. To mitigate these risks, the Singaporean government will need to carefully manage its property cooling measures and remain vigilant to market changes.

Conclusion

It’s crucial for investors to stay informed and make strategic decisions. If you’re considering investing in Singapore’s property market or looking into Singapore company incorporation, reach out to the experts at IMC Group for professional advice and guidance tailored to your specific needs. Let IMC Group’s experienced team help you navigate through the complexities of the market and maximise your investment potential in Singapore.

NEWSLETTER,SINGAPORE

Singapore Seeks Digital Free Trade Agreement with the European Union

June 13, 2023

Singapore aims to commence negotiations for a digital free trade agreement with the European Union (EU) this year. This development follows a non-binding digital partnership agreed upon in February between the two parties, with Singapore’s Minister-in-charge of Trade Relations S Iswaran indicating that both sides are identifying projects to pursue through the partnership. The initiative is expected to improve the interoperability of digital markets and policy frameworks, ultimately allowing businesses and consumers to transact online at lower costs. This digital trade agreement could significantly influence Singapore company incorporation and expand opportunities for new company setups in Singapore.

The EU-Singapore Digital Partnership (EUSDP) serves as a critical first step towards a bilateral digital trade agreement. Iswaran, who also holds the position of Singapore’s transport minister, stated that such an agreement would provide citizens and businesses with the clarity and legal certainty required to confidently participate in the digital economy. The negotiations for the digital trade agreement are anticipated to begin during Sweden’s Presidency of the EU Council in the first half of 2023. This builds on the existing Singapore-EU bilateral free trade agreement, known as the EU-Singapore Free Trade Agreement (EUSFTA), which came into force in November 2019.

The EUSFTA was the first of its kind between the EU and a member state of the Association of Southeast Asian Nations (ASEAN). It is considered a template for a broader future trade pact with regional economies. While an EU-ASEAN agreement remains a long-term ambition, a future EU-Singapore digital trade agreement could act as a stepping stone for closer region-to-region connectivity. Following partnerships with Japan and South Korea, the EU’s digital partnership with Singapore is the third such agreement with a key Asian trading partner.

The EUSDP seeks to facilitate research and regulatory cooperation in areas such as 5G and 6G adoption, artificial intelligence (AI) governance, and semiconductor supply chain resilience. It also aims to establish common rules on cross-border data flows, electronic invoicing, and payments, thus granting small and medium-sized enterprises (SMEs) more open access to overseas markets. However, data privacy differences between Singapore’s Cross-Border Privacy Rules (CPBR) and the EU’s General Data Protection Regulation (GDPR) may pose challenges in reaching a binding agreement.

For businesses looking to expand into Southeast Asia, the potential EU-Singapore digital trade agreement signals a favourable environment for Singapore company incorporation. The agreement aims to enable seamless integration between the EU, Singapore, and the rest of the region, promoting growth and expansion for companies seeking new opportunities. As the digital partnership progresses, the prospect of a digital free trade agreement could significantly enhance the appeal of a new company set up in Singapore, offering a strategic foothold in the region and fostering stronger trade relations with the EU. By partnering with experienced consultancies like IMC Group, businesses can navigate the complexities of the incorporation process and tap into expert insights, unlocking the full potential of this thriving market and seizing the boundless opportunities that lie ahead in Singapore’s vibrant and interconnected digital landscape.

Outsourcing

Business Admin & Finance

Organizational Support

Ongoing Support

Accounts

Financial Insights

Tax Solutions

Corporate Complaince

Blog