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A Comprehensive Guide to Investing in Singapore Real Estate
  • NEWSLETTER,SINGAPORE

A Comprehensive Guide to Investing in Singapore Real Estate

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.

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Enhanced Tax Incentives for Single Family Offices in Singapore
  • NEWSLETTER,SINGAPORE

Enhanced Tax Incentives for Single Family Offices in Singapore

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.
AUM of the Fund

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.
multiplier

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.

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Why do Foreign Businesses Choose Singapore Over Other Countries?
  • NEWSLETTER,SINGAPORE

Why do Foreign Businesses Choose Singapore Over Other Countries?

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

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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.

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Singapore Announces New Immigration and Employment Regulations
  • NEWSLETTER,SINGAPORE

Singapore Announces New Immigration and Employment Regulations

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.

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UK and Singapore Tech Ties Strengthened with New Data and AI Agreements
  • NEWSLETTER,SINGAPORE

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

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.

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Ultra-Rich Foreigners Remain Attracted to Singapore Property Market Despite Cooling Measures
  • NEWSLETTER,SINGAPORE

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

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.

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Singapore Seeks Digital Free Trade Agreement with the European Union
  • NEWSLETTER,SINGAPORE

Singapore Seeks Digital Free Trade Agreement with the European Union

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.

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CPTPP Enlarged: Singapore Greets Britain’s Inclusion in Free Trade Agreement
  • NEWSLETTER,SINGAPORE

CPTPP Enlarged: Singapore Greets Britain’s Inclusion in Free Trade Agreement

Singapore warmly welcomed Britain’s recent decision to become the first European country and the 12th member to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

As Britain sets its sights on bolstering its global alliances post-Brexit, the decision to ease company formation in Singapore is a clear signal of intent. With its reputation as a business-friendly destination, Singapore is a natural choice for British firms seeking to expand their global reach. This move is a crucial step towards that end, paving the way for closer ties between the two nations and a bright future for cross-border commerce.

Trade and Industry Minister Gan Kim Yong posted on LinkedIn to congratulate Britain on achieving a “significant milestone” after nearly two years of negotiations, expressing his joy over the country’s inclusion in the trade pact.

Mr Gan added, “The UK’s accession to the CPTPP will provide more business opportunities and make it easier for Singapore companies to navigate the UK market”.

He further stated that this move would enhance the robust bilateral economic partnership between the two nations, supported by multiple agreements such as the UK-Singapore Free Trade Agreement, the UK-Singapore Digital Economy Agreement, and the UK-Singapore Green Economy Framework.

Minister-in-charge of Trade Relations, Mr S. Iswaran, shared a similar view on LinkedIn.

“Singapore remains strongly committed to ensuring that CPTPP remains high-standard, robust and relevant so that it continues to bring benefits to our people and businesses”, Mr Iswaran stated. “I look forward to the UK’s accession to the CPTPP.”

Mr Gan stated that all members of the CPTPP will collaborate towards finalising the accession protocol.

Other members of the CPTPP are Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru and Vietnam.

In a joint ministerial statement, member countries said the CPTPP is “one of the most comprehensive and ambitious trade deals ever concluded”.

“The CPTPP members and the UK are committed to further promoting free trade, open and competitive markets, the rules-based trading system and economic integration in the region and beyond,” they said.

By joining the CPTPP, Britain will enhance its current bilateral free trade agreements with most member countries, providing businesses with additional options for trade terms.

According to British Prime Minister Rishi Sunak’s office, the agreement is the largest trade deal since Brexit, with a combined GDP of £11 trillion (S$18.1 trillion) once Britain becomes a member, which accounts for 15% of the global GDP.

Natalie Black, Britain’s Trade Commissioner for Asia-Pacific, highlighted that as the second-largest member of the CPTPP, Britain’s participation would increase the trade bloc’s combined GDP from its current £9 trillion and offer improved access to 67 million UK consumers.

“CPTPP is one of the world’s most progressive trade agreements, and the UK’s accession will take it from a Pacific agreement to a truly global one,” said Ms Black.

According to a statement released by the British High Commission in Singapore, Kemi Badenoch, the Secretary of State for Business and Trade, expressed the following: “Our accession to CPTPP sends a powerful signal that the UK is open for business and using our post-Brexit freedoms to reach out to new markets, including in the Asia-Pacific region, and grow our economy.

“Joining this influential trade bloc will help us to shape the rules of global trade with like-minded nations and work even closer together on our shared priorities of prosperity, security and free and fair trade.”

Kara Owen, the British High Commissioner to Singapore, reported that trade between Britain and Singapore increased by 24.8% from the previous year, with a total value of £20 billion during the 12 months leading up to September 2022.

“We continue to see very strong interest from UK companies in Singapore and the broader Asia-Pacific region,” said Ms Owen.

“Joining the CPTPP will further strengthen our existing agreements with Singapore to grow trade and investment. We look forward to supporting UK and Singapore companies as they take advantage of all it offers.”

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Singapore’s New Due Diligence Requirements for Corporate Finance Advisers
  • NEWSLETTER,SINGAPORE

Singapore’s New Due Diligence Requirements for Corporate Finance Advisers

By October 1, 2023, corporate finance (CF) advisers in Singapore are required to adopt new due diligence requirements. The objective behind implementing these new requirements is to enhance the quality and standards of corporate finance advisers in the city-state.

Deployment Plan

From October 1, 2023, all corporate advisory engagements in Singapore must comply with the due diligence requirements. In anticipation of this, MAS has advised CF advisers to begin formulating and executing policies that align with these new requirements.

To whom do the new requirements for business conduct apply?

The following are subject to the new conduct requirements:

  1. Banks that have obtained licenses, merchant banks, and finance companies are not required to hold a capital market services (CMS) license
  2. Individuals or entities who possess a CMS license and provide advice on corporate finance; or
  3. Persons who provide advice on corporate finance, including those who are representatives of options a) and b)

Requirements are related to the overall conduct of business activities

Under Notice SFA o4-N21, one of the newly introduced requirements for business conduct is this.

Dealing with conflicts of interests

Corporate finance advisers must avoid conflicts of interest with their clients. If they can’t mitigate material disputes, they must stop advising on that transaction or decline new projects.

To protect price-sensitive information its directors or personnel receive, a CF adviser should implement policies, controls, and procedures, including limited access to sensitive information and separating roles of those involved in corporate finance.

Policies, controls, and procedures must be implemented by a CF adviser to protect sensitive information received by its personnel, including limited access based on necessity and separating corporate finance advice from other roles.

The CF adviser should have policies, controls, and procedures to prevent insider trading and clear reporting lines for issue escalation with representative oversight.

Requirements for due diligence in general

The CF advisor is responsible for performing due diligence with reasonable care, which involves verifying the accuracy and completeness of statements and confirmations made by customers or others involved in the transaction.

The corporate finance advisor should also oversee any new information during the transaction that may question the credibility of the initial information received.

Providing guidance to listing applicants regarding their regulatory obligations

The CF advisor must inform listing applicants about their responsibilities under Singapore’s Securities and Futures Act, as well as their obligations upon admission to the Singapore Stock Exchange.

The corporate finance adviser must conduct background checks on listing applicant’s key personnel, directors, group entities, and controlling shareholders as per the notice.

Corporate finance advisers in Singapore must examine the physical assets of listing applicants and conduct interviews with significant stakeholders such as creditors and key suppliers. In the case of material issues, the adviser must scrutinize supporting documents such as invoices, contracts, and title deeds. They may also gather information from public record databases or delegate the relevant checks and reviews to a third party.

When appointing a third-party service provider, the corporate finance adviser must ensure that the third party’s due diligence meets satisfactory standards and quality.

The corporate finance advisor’s foremost responsibility is to ensure the Singapore Stock Exchange’s suitability of the listing applicant. This includes verifying the completeness of the listing application information and assessing the qualifications of the applicant’s directors in managing the business. The CF advisor plays a vital role in upholding due diligence requirements.

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India’s SME-Friendly Budget Creates Profitable Opportunities for Singaporean Businesses, Reports Singapore Chamber
  • India, NEWSLETTER,SINGAPORE

India’s SME-Friendly Budget Creates Profitable Opportunities for Singaporean Businesses, Reports Singapore Chamber

The future of small businesses in Singapore and India is looking brighter than ever! The SICCI has hailed India’s SME-friendly budget for 2023-24, paving the way for exciting new collaborations and growth opportunities. Joining forces for company formation in Singapore and India, the possibilities are endless for both nations’ dynamic small business sectors.

Which sectors in India are expected to benefit the most from the budget?

The sectors that are expected to benefit the most from India’s SME-friendly budget are infrastructure, healthcare, education, and agriculture. These sectors have been given significant attention in the budget, with a considerable amount of funds allocated to their development.

Neil Parekh, the Chairman of SICCI, expressed his optimism about the target of Saptarishi announced by India’s Finance Minister Nirmala Sitharaman. He highlighted the potential for green growth, leveraging youth power, and promoting the development of the financial sector.

He stated that our team looks forward to collaborating closely with our counterparts in India to drive growth and innovation in the SME sectors of both countries.

He praised the SME-friendly budget and stated that the first step would be to reach out to the leadership of ASSOCHAM (The Associated Chambers of Commerce and Industry of India), with whom they have already signed an MoU, to expand further their areas of cooperation outlined in the Indian Budget 2023-2024.

He noted that the proposed 30 international skill centres would be set up across various states to provide skill training for youth to pursue global opportunities.

The SICCI sees excellent potential in collaborating with our Indian counterparts to transfer technology, expertise, and talent to equip the younger generation in India with the skills and knowledge to seize global opportunities. The proposed international skill centres, especially in sectors such as green technology, IT and digital technology, and healthcare, where skilled professionals are in high demand, present excellent opportunities for cooperation.

He also expressed his interest in tourism development in India, stating that SICCI is keen to connect state governments with officials from the Singapore Tourism Board and Enterprise Singapore to exchange the best practices for developing the sector. This collaboration will bring benefits to the citizens of India and global tourists.

With India’s economy projected to grow by 7% in 2023, the SICCI and its members are poised to seize many exciting opportunities, including forming companies in India and collaborating with Singapore for business growth. The 99-year-old Indian business group with over 550 members eagerly anticipates the potential for innovation and expansion highlighted by Parekh, the group’s leader.

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