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NEWSLETTER,SINGAPORE

The Rapid Rise of Single-Family Offices Amid Wealth Revolution in Asia

August 14, 2024

In recent years, Asia has witnessed a remarkable surge in the popularity of single-family offices (SFOs). This marks a transformative evolution in the region’s wealth management industry. Particularly, this shift has been fuelled by the rapid expansion of private capital markets while major Asian economies witnessed robust growth. Affluent families have realized the increasing need for professional wealth management. Naturally, single family office in Singapore is undergoing a steady growth.

Expanding Private Capital Markets

The private capital markets in the Asia Pacific region have experienced unprecedented growth over the last decade. This has been particularly driven by a mix of strategic investments and economic resilience. In this region, private capital expanded at an impressive 13% CAGR between 2013 and 2023. This growth rate outpaces that of other global regions, which demonstrates the burgeoning role of Asia in the global financial ecosystem. Family offices have been instrumental in this rise, channelling significant investments into private markets and fostering a culture of strategic wealth management.

Wealth Accumulation in Asia

While mainland China has seen substantial wealth accumulation, Southeast Asia has also emerged as a key player in the economic expansion of the region. Over the past decade, countries such as Singapore, Indonesia, Thailand, and Vietnam have experienced notable economic growth. This has been fuelled by factors like foreign direct investment, urbanization, and development of infrastructure. Factors like foreign direct investment and urbanization also contribute to the growth of wealth. Naturally, this economic boom has created a sustainable environment for wealth accumulation. Wealthy families are looking for professionals to manage their finances.

The Need for Professional Wealth Management

As Asian families continue to grow their wealth, the need for sophisticated wealth management solutions becomes evident. The projected wealth transfer from baby boomers to future generations is estimated to be around $20 trillion in the coming decade. This has intensified the demand for professional governance frameworks. SFOs are increasingly adopting best practices from institutional investors. These include robust risk management, transparent reporting, and stringent compliance standards. This institutionalized approach to wealth management and asset preservation is rapidly reshaping the family office landscape in Asia.

Government Support and Regulatory Frameworks

Government policies and regulations in key Asian financial centers have further intensified the growth of SFOs. For instance, Singapore has streamlined regulations with attractive tax incentives. This makes it a global hub for family offices. By the end of 2023, Singapore had more than 1,400 SFOs, thanks to government initiatives that support training programs. Other aspects fuelling the growth of SFOs included global networking and philanthropic endeavours.

Similarly, Hong Kong has implemented measures to position itself as a leading destination for family offices. These include tax concessions, the Capital Investment Entrant Scheme, and talent development initiatives. A comprehensive service provider network has also been developed in Hong Kong. Besides, Hong Kong’s development of art storage facilities and philanthropic centres further enhances its appeal to wealthy families looking for a supportive ecosystem for their financial and philanthropic activities.

Beyond traditional wealth management, SFOs in Asia are embracing a broader vision. This includes asset diversification, sustainability, impact investment, and philanthropy. As wealthy families continue to align their investments with values, the focus increasingly shifts towards sustainable and socially responsible assets.

Philanthropy has become a central theme in the SFO landscape. Many families are leveraging their resources and expertise to drive significant social change. As they establish philanthropic foundations to support educational initiatives and tackle environmental challenges, SFOs are playing a crucial role in strengthening philanthropy across Asia.

The Future of Wealth Management in Asia

As Asia continues to consolidate its position on the global economic stage, family offices are set to play an increasingly pivotal role in strengthening the wealth potential of the region. SFOs are preserving wealth and reshaping the future of wealth management in Asia. The rise of family offices marks the dawn of a new era in which wealth is managed with a long-term and impact-driven perspective.

Now that you know why Singapore is the ideal hub for your family office, it’s time to contact professionals like the IMC Group for comprehensive consultancy solutions.

NEWSLETTER,SINGAPORE

Singapore Records Surge in Global M&A Activity Amid Economic Stability

July 10, 2024

The robust financial resilience of Singapore and renewed confidence among investors is evident from its emergence as a bustling hub for global mergers and acquisitions (M&A) this quarter. The sound economic condition of the country is complemented by its political stability. The past few days alone have seen significant transactions, including a $1.75 billion investment by a Singtel-KKR consortium in ST Telemedia (STT) Global Data Centres, which out-bided global investors. Even more deals are expected, with major international players eyeing tie-ups and acquisitions. Backed by specialized Mergers & Acquisitions Advisory Services in Singapore from experts, top global brands are bracing up for these profitable transactions.

According to the Singapore country head of Bank of America, Singapore has emerged as the centre of gravity for M&A activities in Southeast Asia. The sentiment towards large, transformative inbound M&A from Singapore is increasingly turning positive. Naturally, this sentiment is fuelling confidence for the latter half of 2024 and into 2025.

Since April, the value of deals involving companies based in Singapore has soared to $23.8 billion. This marks a 102% jump from the second quarter of 2023.

Strategic Significance and Economic Outlook

The surge in the number of M&A activities is not only about the number of deals but also their strategic significance. With these large transactions, Singapore further consolidates its position as a key business hub in Southeast Asia. The country is attracting an impressive volume of foreign investment directly from international corporations. Notable transactions include the KKR-led STT data centre deal and the sale of a majority stake in Singapore’s Fullerton Health.

According to experts, many of these deals have been taking shape since mid- to late-2023. This reflects the long-term confidence of investors in the macroeconomic environment in the country. They are keen to invest in promising assets in Singapore, eyeing a strong growth trajectory in the country. The latest survey of the Monetary Authority of Singapore reveals that the economy of the country is projected to expand by 2.4% in 2024. Besides, the benchmark Straits Times Index has risen over 8% since it hit its low last October, which further reflects the confidence among investors.

Notable M&A Deals in Singapore

Some of the recent M&A transactions in Singapore include:

OCBC Bank moving closer to taking full control of Great Eastern Holdings with a $1.4 billion offer
Shell acquiring liquefied natural gas trader Pavilion Energy from Temasek
French industrial group Seche Environment announcing its acquisition of hazardous industrial waste collector ECO Industrial Environmental Engineering for $605 million

The strategic importance of Singapore in the global M&A landscape is evident from these high-profile deals. As investor sentiment improves and economic indicators remain favorable, Singapore is poised to maintain its position as a leading destination for M&A activities in Southeast Asia.

For successful global players, the IMC Group continues to be the first choice as a leading consultant offering transaction advisory services in Singapore. With professionals on the side, global businesses can confidently engage in M&A activities.

NEWSLETTER,SINGAPORE

Singapore’s Path to Net Zero: Incentives and Ecosystem for Green Enterprises

June 12, 2024

With the climate change crisis intensifying all around the globe, different countries are committing to ambitious sustainable targets. Singapore, one of the global business hubs, stands out with its initiative to achieve net zero emissions by 2050. This is a formidable goal for a small island nation with limited land and natural resources.

The government has developed its Singapore Green Plan 2030, which defines the blueprint of concrete sustainability targets for the next decade. According to this plan, by 2026, the country aims to reduce the amount of waste sent to landfill per capita each day by 20%. The plan also seeks to increase the output of solar energy, while Singapore is likely to turn 80% of its buildings by 2030. Enterprises bracing up for Singapore company formation, therefore, need to align their strategies to these sustainability goals. Over the years, Singapore has turned into an attractive destination for eco-friendly businesses. For enterprises incorporated in Singapore, it’s essential to seek professional support from experts to ensure compliance.

Creating a Sustainable Ecosystem in Singapore

Singapore, popularly referred to as the ‘Green City’, offers a robust commercial infrastructure that supports eco-conscious businesses. Currently, the country is prioritizing the development of green buildings, reducing waste, and adopting clean energy solutions. With most of its buildings turning green by 2030, Singapore eyes an 80% improvement in energy efficiency compared to the levels in 2005. Eco-friendly businesses operating in the country have the privilege to choose from a wide range of green options.

Green Tech Industry in Singapore

Singapore has put in consistent efforts to achieve peak energy efficiency, incorporating green technologies. While the country has limited natural resources, the Research, Innovation, and Enterprise Plan (RIE2025) of the Singapore government supports enterprises embracing sustainable practices. Businesses minimizing waste by switching to additive manufacturing can qualify for certain privileges. Moreover, businesses developing sustainable solutions can access abundant resources in Singapore, thanks to its government initiatives. Enterprises can also collaborate with the government, academic institutions, and other businesses to spearhead the green tech industry in the country.

Singapore’s Talent Pool Driving its Green Economy

As a leader in sustainable development in the region, Singapore recognizes the importance of a skilled workforce for a sustainable future. In this country, academic institutions are offering sustainability courses, so that graduates with adequate skills can tap for green jobs. Working adults can also undergo training through sustainability-related programs to acquire transferable green skills. Thus, they can gain competence in crucial aspects like green finance, green engineering solutions, and managing carbon footprint. In Singapore, eco-friendly businesses have access to a pool of talented professionals having proper knowledge and skillsets. Thus, the thriving green economy continues to consolidate in the country, with its reliable pool of talent.

Green Projects Incentives from the Government

The government in Singapore is leaving no stone unturned as the country aims to achieve its net zero emissions target. To make the green transition an achievable goal, the government has come up with generous incentives, ranging from tax benefits to cash grants.

Tax Benefits

The Refundable Investment Credit (RIC) was introduced in Singapore’s Budget in 2024. For investing sizable amounts in projects with decarbonization goals, businesses are eligible to receive a tax credit. This tax credit can be offset against the payable corporate tax income. It will be awarded only on qualifying expenses like manpower costs, capital expenditures, logistics and freight costs, and intangible asset costs. If any tax credit remains unutilized, the company will receive a cash refund within four years. Foreign enterprises doing business in Singapore can significantly benefit from these provisions.

Financing Schemes and Cash Grants

Different government agencies in Singapore are committed to supporting sustainable businesses in the country. These enterprises are eligible for cash grants that cover various business expenses. For instance, the Resource Efficiency Grant for Emissions (REG(E)) co-funds expenditures for industrial facility projects for verifiable and measurable mitigation of carbon. The government has set a benchmark of at least 500 tonnes of carbon footprint reduction per annum for businesses to qualify for this grant, which would cover around 50% of the qualifying costs. This Grant helps businesses cover a part of their expenses incurred to adhere to mandates related to climate.

The REG(E) was first introduced in 2022 for local companies in the retail, food manufacturing, and food services sectors. During the 2024 Budget, it was extended to other sectors like data centres, maritime, and construction.

The Sustainability Reporting Grant helps businesses with at least S$100 million annual revenue prepare their first sustainability report. It will cover up to 30% of the qualifying cost, while the government capped the amount at S$150,000 per company. For SMEs, a new program will be launched to streamline the path to preparing their first sustainability reports. It will cover as much as 70% of the eligible costs for the first year and 50% for the two subsequent years.

Often, establishing a start-up company in Singapore comes with obligations to meet sustainability goals. Startups and businesses can seek loans up to S$50 million from the Enterprise Financing Scheme – Green to support green projects.

What Should Businesses Expanding to Singapore Do?

Businesses expanding to Singapore often need to invest in new materials, technologies, and processes to comply with the stringent sustainability goals in the country. In the short run, no significant cost savings may be visible. However, enterprises benefit from increased profitability over the long run, along with enhanced brand reputation.

Here’s what businesses expanding to Singapore must do:

Seek funding: Acquire support from the Enterprise Financing Scheme to support upcoming green projects.
Cost-effective approach: Take advantage of tax credits and grants on expenses incurred on adopting sustainable practices.
Position the brand as a leader: Establish the company as a frontrunner in the green economy to attract eco-conscious investors and customers.

During Singapore company formation, forward-thinking businesses seek comprehensive professional support from the IMC Group. With experts guiding them through the complex regulatory norms and helping in maximizing government funding, tax benefits, and credits, businesses can confidently achieve their sustainability goals.

NEWSLETTER,SINGAPORE

Singapore Leads Investment in Data Centres Amid AI Boom

June 11, 2024

As advancements in artificial intelligence (AI) continue to drive innovation globally, investors in Asia are particularly focussing on data centres. Data centres are essential to support ongoing advancements in AI and data science. This interest has fuelled a competitive effort to build data centres in building data centres among investors in Singapore. Particularly, global businesses are interested in company formation in Singapore to acquire and manage data centres.

In the Asia-Pacific region, data centres have emerged as the preferred alternative asset for REITs (real estate investment trusts). Between the first quarters of 2023 and 2024, there has been a spike in the share of investors prioritizing data centre investments, with the figure surging from 29% to 33%.

Booming Data Centre Economy and Acquisitions by Singaporean Investors

A report evaluates the activities of Singaporean REITs in the data centre sector. Due to a moratorium on data centre construction within Singapore, restrictions have been imposed on domestic investment opportunities. Naturally, investors in Singapore are exploring international prospects.

Last March, Keppel Corporation acquired a partially constructed data centre from Mitsui Fudosan in Tokyo. The company put their trust in the robust growth of the public cloud market in Japan, which is projected to hit the $34 billion (£27.2 billion) milestone by 2028.

In another significant move, less than a year ago, MapleTree Industrial Trust purchased a data centre facility in Osaka for $378 million (£302.6 million). The CEO of MapleTree explained the strategic value of this acquisition, focusing on the prospects of diversifying their presence of data centres in Japan. The CEO also stated that this expansion falls in line with their goals to enhance their footprint in the resilient data centre sector which looks promising for growth.

With AI and eCommerce booming, the acquisition was a strategic move by MapleTree as the company made an inroad into the Japanese market.

Wondering why set up business in Singapore? The surge in data centre investments and the robust support from the government explain why forming a company in Singapore can be advantageous.

According to an expert, data centres accounted for just 1.4% of the REIT universe in Asia in 2022. This segment consisted of two dedicated REITs in Singapore. The expert pointed out that real estate investors in Asia are increasingly turning their attention to data centres. However, no new data centre REIT was listed in 2022 due to challenges in the equity market segment. Currently, several existing REITs are investing in data centres.

Professional Support for Company Formation in Singapore

For companies looking to establish their presence in Singapore, the IMC Group continues to be a trusted partner. This group of professionals streamlines the process of Singapore company Incorporation through its strategic insights, extensive networks, and expertise. The experts also provide invaluable support to businesses as they navigate the stringent regulatory frameworks in Singapore and access investment opportunities.

NEWSLETTER,SINGAPORE

Key Aspects Global Enterprises Must Consider Before Incorporating Companies in Singapore

May 14, 2024

As Singapore continues to thrive as a global business hub, forward-thinking enterprises are looking to scale their commercial footprint in the country. As many as 9,000 Indian enterprises have expanded their operations in this dynamic hotspot of business. Besides benefitting from the conducive business environment in the country, the Singapore company incorporation process is easy.

In this edition, we will discuss some strategic considerations for global enterprises before venturing into company formation in Singapore. We have comprehensively evaluated the regulatory and legal aspects in Singapore, along with the prerequisites for forming a company in the country. Along with these, we have comprehensively discussed the tax obligations and priorities like access to talent.

The Legal and Regulatory Landscape in Singapore

Singapore has several regulatory bodies that define how its business ecosystem should operate. These include:

Monetary Authority of Singapore (MAS): MAS is the apex body overseeing financial services in the country as well as its central bank. MAS plays a pivotal role in regulatory oversight.
Inland Revenue Authority of Singapore (IRAS): IRAS governs all tax-related matters in the country, serving as the national tax administrator.
Accounting and Corporate Regulatory Authority (ACRA): ACRA serves as the national regulator for business entities, ensuring compliance and transparency.
Singapore Exchange (SGX): SGX is the stock exchange of Singapore, which oversees the regulatory aspects related to public listings.

Essential Requirements Before Incorporating a Company in Singapore

As a business owner, you might be wondering how to set up a local company in Singapore.

Before incorporating a company in Singapore, businesses need to get themselves registered with the ACRA. Here’s the step-by-step process.

The first stage involves choosing and submitting a unique name for your business. Business owners can choose from private limited companies, public companies, and unlimited companies, among other structures.
The next step requires the company to appoint at least one director and secretary each. This is a mandatory step for every registered company in Singapore.
One of the key benefits for foreign enterprises expanding to Singapore is that the country doesn’t impose any limitations on foreign capital limits. The minimum paid-up capital for a private limited company stands at S$1 for both domestic and foreign entities.
Businesses also need a registered office address in Singapore which the public can access during business hours.
Businesses are also required to register at least one principal business activity with ACRA, with the provision to declare up to two primary activities in most cases.

Guide to Incorporating Your Business in Singapore: Essential Checklist

Tax Benefits and Obligations for Businesses in Singapore

The tax framework in Singapore operates under two primary scenarios.

In case the income is generated from a country outside Singapore like foreign entities or other branches, it will be taxed at 17% on the chargeable income. This norm works unless the business is granted a relief under the Economic Expansion Incentives Act or other applicable concessions.

Different types of taxes like income tax, GST, stamp duty, and withholding tax are levied as a part of the tax ecosystem in Singapore. All these taxes are charged at different rates.

Accessing Talent Pool in Singapore

The Employment Act of 1968 governs the employment landscape in Singapore. Foreign workers looking to find employment in Singapore need to obtain a work permit from the Ministry of Manpower in the country. Here are some of the commonly used passes in the country:

Employment Pass for managers, professionals, and executives meeting certain competency and salary criteria
Overseas Network and Expertise Pass for highly skilled individuals or high-salary professionals
EntrePass for investors establishing their ventures in the country
S Pass for mid-level skilled workers
Work Permit for foreign workers in particular sectors

Professional Assistance to Register a Private Company in Singapore

While forward-thinking ventures look to expand their operations in Singapore, navigating through the legal and tax complexities is challenging. The IMC Group continues to be your trusted partner as you brace up to register private limited company Singapore. With professionals on your side during the crucial process of company incorporation, you can confidently expand your venture to the dynamic business ecosystem in Singapore.

NEWSLETTER,SINGAPORE

Family Offices in Singapore Go For Nature-Friendly Investments

May 13, 2024

An interesting investment trend reveals that single family offices in Singapore are increasingly showing interest in supporting eco-friendly investments. This marks a significant shift in financing strategies to ensure sustainability. Traditionally, nature conservation efforts in Singapore were designed by philanthropic organizations and governments. However, with wealth management companies serving high-net-worth families supporting such investments, the importance of environmental sustainability comes to the forefront along with financial returns.

Global Calls for Nature Conservation Financing

Over the last decade, the United Nations has been urging governments, financial institutions, and the private sector to step up in financing nature conservation. During Ecosperity Week, leaders emphasized redirecting financial flows towards activities that restore, sustain, and protect nature. Top family offices have taken initiatives to scale up regenerative agriculture and protect biodiversity. The IMC Group leads from the front, setting benchmarks in driving such investments.

Some of the leading family offices in Singapore are also focussing on driving investments that enhance ocean health. For instance, plant-based proteins and seaweed farming are some of the potential investment avenues recommended by these groups. Their commitment to sustainability is evident from the fact that they are mobilizing funds from affluent families for essential environmental purposes.

A Change in Mindset through Sustainable Investments

Established family offices in Singapore work with a profit-with-purpose philosophy. They visualize impact investments as a powerful tool to bring about positive changes at large scales. Their approach corresponds to the growing momentum in impact investing across Southeast Asia. A new generation of investors and entrepreneurs are driving this trend with sustainability in their mindset.

Even stock values reveal that companies with strong ESG scores outperform others, demonstrating the importance of sustainable investments.

Singapore as an Emerging For Sustainable Financing

In recent years, Singapore has emerged as a preferred hub for collaborations and partnerships in sustainable financing. Thanks to the consistent inflow of investment and talent, the financial and associated sectors in Singapore are poised to drive sustained innovation and growth. The commitment of Singapore extends to a push for a green economy. Reports reveal that private wealth managers are recommending investments in technologies that cut emissions and protect ecosystems. The goal is to generate revenue through investments focussed on nature. This falls in line with global efforts to address pressing issues like the loss of biodiversity and climate change.

The rise of impact investing also showcases a broader trend towards responsible finance. ESG considerations play a crucial role in driving investment decisions. As governments and institutions around the world come up with disclosures on climate and nature-related risks, investors are increasingly drawn to sustainable assets. These investments ensure a positive impact on the environment while delivering impressive financial returns.

Sustainable Investments with Family Offices in Singapore

Leading family offices in Singapore are poised to spearhead significant changes in the investment landscape. As sustainability emerges as a core aspect of investment strategies, financial institutions, family offices, and government bodies are likely to collaborate to maximize the impact of eco-friendly investments.

The IMC Group continues to be a trusted partner specializing in private client and family advisory services in Singapore. With professional advisors around, affluent families in the country can make strategic investment decisions for a sustainable cause to make the planet more resilient for future generations.

NEWSLETTER,SINGAPORE

Singapore Continues to be the World’s Best Business Environment for 15 Years

April 15, 2024

Singapore has been on the top of the list as the global leader in terms of offering the most conducive business environment for the fifteenth straight year. Known for its sophisticated commercial infrastructure, supportive business environment, skilled workforce, and global connectivity, the country continues to attract wealth creators and entrepreneurs.

Despite its lack of natural resources and a limited domestic market, Singapore has overcome economic crises in 1997 and 2008. Currently, it boasts one of the most stable economies in the world. The country has witnessed the generation of consistent surpluses with no foreign debt and high revenue for the government. As Singapore stands tall as a global economic hub, forward-thinking foreign players continue to establish their commercial identities in the country.

The Economist Intelligence Unit’s (EIU) recent rankings for the second quarter of 2023 reveal that Singapore is likely to offer the best global business environment for the next five years. While countries like Canada and Denmark closely follow, Singapore remains ahead in the race through continuous innovation. With this consistent excellence, the country will dominate the global list for the 16^th consecutive year.

What Sets Singapore Apart for Business Enthusiasts?

In this edition, let’s explore the factors that set Singapore apart for global business enthusiasts.

1. Strategic Geographic Advantage

Singapore is located close to major markets like China and Japan. Thus, it gains easy access to more than 3 billion consumers. Its bustling port, one of the world’s busiest, and the extensive connectivity of the Changi International Airport make it an ideal hub for business ventures. Currently, more than 20 million people use this airport. This provides a strategic reach to business minds to the global business hub.

2. Tax-Friendly Policies

In Singapore, the corporate income tax rate of 17%, is the lowest in the world. The country has a well-structured tax framework that lures businesses. International players look forward to capitalizing on financial advantages and riding the growth opportunities in Singapore.

3. Financial Power

The seamless accessibility to the international business community makes Singapore one of the most well-planned financial centers in the Asian market. With revolution in technology, the country is witnessing a surge in its financial power. According to rankings published by the GFCI, Singapore occupies the third position on the list of vibrant financial hubs in the world. Only London and New York enjoy better positions compared to Singapore.

4. Conducive Business Environment

In terms of ease of doing business, Singapore is one of the leading nations in the world. According to the World Bank, it currently occupies the second position amidst ongoing business tensions. Naturally, business enthusiasts find a safe haven in Singapore.

5. Transparent Regulations and Permits

The authorities in Singapore have streamlined the process of obtaining business permits in the country. With professional support from established companies and transparent processes, forming a company in Singapore is relatively easy.

6. No Double Taxation

In a strategic move to bolster international business, Singapore has signed bilateral tax treaties with more than 50 countries to prevent double taxation. This benefit passes on to entities from different countries engaged in international business in Singapore.

7. World-Class Infrastructure

The sophisticated business infrastructure in Singapore meets global standards. This establishes a solid foundation for businesses across different industries, ranging from biotechnology to fintech and logistics and green initiatives.

8. Skilled Workforce

With a pool of highly skilled and diverse talent, Singapore offers businesses access to a productive workforce. This is essential for sustained growth and success for any business.

9. Incentives

Singapore offers a wide range of incentives to businesses, ranging from tax exemptions and financing schemes to investment allowances. These perks further empower businesses in different sectors to innovate and thrive in Singapore.

Get Professional Help for Company Formation in Singapore

With the startup ecosystem in Singapore looking robust, entrepreneurs are willing to make the most of the business-friendly environment in Singapore. The IMC Group is one of the most revered teams of professionals offering comprehensive assistance for company formation in Singapore. It’s logical to have an experienced team on your side for accurate guidance and mentorship as you expand to this vibrant business hub in Southeast Asia.

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.

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