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Doing Business in Singapore

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Foreword 4

oVerVIew oF SINGAPore 5• SingaporeasanEconomicHubandInternationalFinancialCentre• Singapore’sAttractivenessasanInvestmentDestination

CoMMerCIAL eNVIroNMeNT 9• Singapore’sEconomy• IndustriesinSingapore• EmergingBusinesses• SingaporeandTrade• InvestmentActivities• GovernmentPro-businessSchemes

HoUSING, TrANSPorT & edUCATIoN IN SINGAPore 18• Singapore:AGlobalisedCityState• HousinginSingapore• CommutinginSingapore• StudyinginSingapore

TYPeS oF BUSINeSS orGANISATIoNS 27• SoleProprietorshipsandGeneralPartnerships• LimitedLiabilityPartnerships• LimitedPartnerships• Companies• JointVentures• ForeignCompanies• RepresentativeOffices• IncorporatingaCompany• AnnualRequirementsforCompanies• RegistrationofaForeignCompany• RegistrationofaLimitedLiabilityPartnership(LLP)• ComparisonofSoleProprietorships,GeneralPartnerships,LLPsandCompanies

BUSINeSS & reSIdeNTIAL PreMISeS 34• OfficeSpace• TypicalOfficeLeaseTerms• IndustrialSpace• TypicalIndustrialLeaseTerms• ResidentialAccommodation• ForeignersRentingaHomeinSingapore• ForeignersPurchasingPrivatePropertyinSingapore

CoNTeNTS

Doing Business in Singapore2

TAXATIoN IN SINGAPore 48• Introduction• IncomeTax• IndividualTaxandCorporateTax• DividendPayment• WithholdingTax• TransferPricing• GoodsandServicesTax• StampDuty• PropertyTax• CustomsandExciseDuties• EstateDutyandGiftTax• ExchangeControl• TaxIncentives• InternationalAgreements

BANkING 61• IntroductiontotheFinancialLandscapeinSingapore• MonetaryAuthorityofSingapore• CurrencyInterchangeabilityAgreement

LISTING IN SINGAPore 67• TheSingaporeAdvantage• Mainboard• Catalist• ProfessionalHelptoPavetheWay• CostsInvolvedinaListingExercise

FINANCIAL rePorTING & AUdITING 71• TheAccountingProfession• RegulationoftheAccountingProfession• AccountingRecords• FinancialReportingStandards• CompaniesActRequirements

LeGAL 74• LegalFramework• Mergers&Acquisitions• CompetitionAct• HandlingCivilDisputes• IntellectualProperty(IP)LawinSingapore

MANPower 86• EmploymentStandardsandRegulations• SingaporeLabourLegislation• StatutoryBoardContributions• WorkinginSingapore

CoNTeNTS


STArT-UP eCoSYSTeM IN SINGAPore 93• GovernmentalSupport• PrivateSector• MovingTowardstheCommonGoalofCreatinganEntrepreneurialHub• Start-upCommunities,Co-workingSpacesandBeyond• Singapore’sStart-upEcosystemMovingForward

SINGAPore wITHIN ASeAN 98• OverviewofASEAN• ForeignDirectInvestmentinASEAN• ASEANEconomicCommunity

ABoUT rSM INTerNATIoNAL 103

ABoUT rSM IN SINGAPore 104

ACkNowLedGeMeNTS 106

CoNTeNTS


Foreword

Singapore as your Anchor in AsiaSingaporehasbeenconsistentlyrankedamongthemostpreferredcountriesforfinance,businessandcommerce.Thisismainlyduetoitsstrategiclocation,pro-businessenvironmentandstablepoliticalatmosphere.

CredentialsthecitystatehasreceivedincludethirdplacinginIMD’sWorldCompetitivenessYearbook2017andbeingpositionedfourthintheSeptember2017GlobalFinancialCentresIndex.Singaporealsotookthefifthspotamong160countriesintheWorldBank’s2016LogisticsPerformanceIndex.BeingrankedamongthebestintheworldonTransparencyInternational’sCorruptionPerceptionsIndex2016,thenationiswellplacedastheidealchoiceforcompaniestoconsiderexpandingtheiroperationsinto.

NeighbouringAsiancitiescanbeaccessedfromSingaporebyairtravelwithinsevenhours.ThisenablesSingaporetobeanexcellentspringboardforbusinessexpansionintheregion.CompanieslookingtowardsSingaporecaneasilyestablishtheirregionaloroperationalheadquartershereandevenusethislocationasanR&Dandintellectualpropertyplatform.Withlowcorporatetaxandinterestrates,aswellasthepresenceofover80taxtreatieswithothercountries,businesscostsarekeptlow.Thenationalsodoesnothaveforeignexchangecontrols.Thismakesiteasierforinvestorstodealwithforeignexchangerisk.Corporategovernanceriskisalsominimisedwithatransparentgovernmentandtheauthorities’backingtopromoteworld-classpractices.

RSMwelcomesforeigninvestorstosetuptheirbaseinSingaporeanduseitasanintegralpartoftheirexpansionplanstogrowtheirbusinessandoptimisetheiroperations.Withover950staffinSingaporeand320inChina,wehavehelpednumerousforeignbusinessesinareassuchasCross-borderInvestmentAdvisory,InternationalTaxAdvisory,aswellasCompanySetUpinSingaporeandothercountries.OuraffiliationtoRSMInternationalalsofacilitatesconnectionsonaglobalscale.

WehopethisguidewillprovidethenecessaryinsightsintohowyoucanmakethebestuseofwhatSingaporecanoffer.

WelcometoSingapore.Wewelcomeyoutochatwithus.

Chio kian HuatChiefExecutiveOfficerRSMinSingapore


SINGAPore AS AN eCoNoMIC HUB ANd INTerNATIoNAL FINANCIAL CeNTreSingaporeisanislandnationinSoutheastAsia.Despiteitssmallsizewithfewnaturalresources,Singaporehastakenadvantageofitsstrategicgeographicallocationandexcellentconnectivitytobecomeoneoftheleadingeconomicandfinancialcentresintheworld.

Asaneconomichub,Singapore’smajortradingpartnersincludeChina,Malaysia,theEuropeanUnion,theUnitedStates,Indonesia,HongKong,Taiwan,SouthKorea,JapanandThailand.

Singapore’stotalforeignworkforce(excludingforeigndomesticworkers)numberedabout1.13millioninJune20171,anditsmulticulturalpopulationmainlycomprisesChinese,Malays,Indians,andEurasians.English,Mandarin,MalayandTamilarethefourofficiallanguagesinSingapore,withEnglishwidelyusedinbusinessandeducation.

AkeytrendthatisexpectedtooffervastopportunitiesforbusinessesinSingaporeisrapidurbanisationinAsia.TheUnitedNationsprojectsanother2.5billion2peoplecouldbeaddedtourbanpopulationsby2050,withAsiaandAfricaaccountingforcloseto90%oftheincrease.Between2014and2050,Chinaaloneisexpectedtoadd292millionurbandwellers.

Asia’srapidurbanisationwillbringabouthugeinfrastructureneeds.From2010to2020,AsiawillneedtoinvestaboutUS$8trillioninoverallnationalinfrastructureforenergy,transport,telecommunications,waterandsanitation3.

TheriseindisposableincomesandconsumerisminemergingAsianmarketswillalsoofferSingapore-basedbusinesseswithmoreopportunitiestotargetawiderrangeofcustomersegments.

Asaninternationalfinancialcentre,Singaporehasover1,200financialinstitutions–including5local,122foreignand32merchantbanksin20174–thatoffermanyproductsandservicesacrossvariousassetclasses.WithassetsundermanagementatS$2.7trillion(US$1.9trillion)in20165,thebankingsectorisespeciallyimportanttoSingapore’sroleinfinancinglocalandregionalgrowth,forexample,infacilitatinginfrastructuredevelopment.

Inaddition,SingaporeisAsia’slargestandtheworld’sthird-biggest(aftertheUnitedKingdomandUnitedStates)foreignexchangetradingcentre,accordingtoa2016TriennialCentralBankSurveybyBankforInternationalSettlements.ThisgivesfurtherevidenceofSingapore’sincreasingstandingandinfluenceasaglobalfinancialcentre.

Likewise,thecitystatealsogarneredthehighestshort-andlong-termtriple-Acreditratingsfromallthreemajorcreditratingagencies–Standard&Poor’s,Moody’sInvestorsService,andFitchRatings.However,thiscontinueddevelopmentasaregionalandinternationalfinancialcentrealsocomeswithclosesurveillancebySingapore’scentralbank–theMonetaryAuthorityofSingapore–andappropriatepolicyformulation.

1 Foreign Workforce Numbers, Ministry of Manpower (www.mom.gov.sg)2 World Urbanization Prospects, 2014 Revision, United Nations3 Financing Asia’s Infrastructure: Modes of Development and Integration of Asian Financial Markets, 2010, Asian Development Bank Institute4 Monetary Authority of Singapore Annual Report 2016/175 2016 Singapore Asset Management Survey, Monetary Authority of Singapore

oVerVIew oF SINGAPore

http://www.mom.gov.sg


Singapore’sfinancialservicessectorisgovernedbyvariousActsandregulations,suchas:

Monetary Authority of Singapore ActTheMonetaryAuthorityofSingapore(MAS)ActgivesMASthefullauthoritytoregulatethefinancialservicessectorinthecountry.

Banking ActTheBankingActregulatesbanksandrelatedfinancialinstitutionsandtheiractivities,includingthecreditcardandchargecardbusinessofbanksandotherinstitutions,amongothers.

Securities and Futures ActTheSecuritiesandFuturesActregulatesactivitiesandinstitutionsinthesecurities,futuresandderivativesindustry,includingleveragedforeignexchangeandderivativestrading.

regulations against Money Laundering and Financing of TerrorismAmemberoftheFinancialActionTaskForce,Singaporehasestablishedstrictregulationstofightmoneylaunderingandthefinancingofterrorism.

Payment Systems (oversight) ActThePaymentSystems(Oversight)Actprovidesfortheoversightofpaymentsystemsandstoredvaluefacilities,aswellasrelatedmatters.

FormoreinformationontheActsandregulationsabove,visit:http://statutes.agc.gov.sgorwww.mas.gov.sg.

Singapore Quick FactsLandArea(2016) :719.2squarekilometresTotalPopulation(2016) :5.6millionGDP(2016) :S$410.3billion(aboutUS$306.6billion)PerCapitaGDP(2016) :S$73,167(aboutUS$54,675)TotalTrade(2016) :S$870.2billion(aboutUS$650.3billion)TouristArrivals(2016) :16.4millionForeignDirectInvestmentinSingapore(2016) :S$1.36trillion(aboutUS$1.02trillion)

Source: Singapore Department of Statistics

SINGAPore’S ATTrACTIVeNeSS AS AN INVeSTMeNT deSTINATIoNSingapore’spositionasanattractivedestinationforforeigninvestorsisduetofactorssuchas:▪ PoliticalandEconomicStability▪ CorporateGovernanceandTransparency▪ Pro-businessEnvironment▪ CompetitiveTaxRates▪ RobustIntellectualPropertyRegime▪ HighLiteracyRate▪ ExtensiveNetworkofTradeAgreements▪ ExcellentConnectivityandInfrastructure▪ RelativelyHassle-freeImmigrationProcessesforForeignInvestors


http://statutes.agc.gov.sghttp://www.mas.gov.sg/


Political and economic StabilitySingaporeisaparliamentaryrepublic,withthePeople’sActionParty(PAP)asthenation’srulingpoliticalpartysince1959.Since1978,Singaporehasbeenlargelystrike-freeandthenation’speacefulindustrialrelationshaveoftenbeenattributedtoitstripartitemodel.

Establishedin1972toformulatewageguidelinestoensureSingapore’slong-termeconomicgrowth,theNationalWagesCouncil(NWC)isatripartitebodycomprisingrepresentativesfromtheemployers,tradeunionsandgovernment.TheNWCmeetseveryyeartodeliberatewageandwage-relatedmattersandissuesrelatedguidelinesbasedonthetripartiteconsensusreached.

Corporate Governance and TransparencyHighcorporategovernancestandardsplayanimportantpartinmaintainingSingapore’spositionasaninternationalfinancialcentre.TheMonetaryAuthorityofSingapore(MAS)andSingaporeExchange(SGX)havesharedoversightofcorporategovernanceoflistedcompaniessinceSeptember2007.SingaporealsohasarevisedCodeofCorporateGovernanceissuedbytheMASinMay2012.WhilecompliancewiththeCodeisnotmandatory,listedcompaniesarerequiredundertheSGXListingRulestodisclosetheircorporategovernancepracticesandexplaindeviationsfromtheCodeintheirannualreports.

Singaporeisrankedfirstworldwideinthe“Transparencyofgovernmentpolicymaking”indicatorinWorldEconomicForum’s“TheGlobalCompetitivenessReport2016-2017”.Italsorankedamongtheworld’sleastcorruptcountriesinthereport,takingthirdplaceunderthe“Irregularpaymentsandbribes”indicator.

Pro-business environmentSingaporehasbeenrecognisedforitsconducivepro-businessenvironment.AccordingtotheWorldBank’s“DoingBusiness2017:EqualOpportunityforAll”report,Singaporerankedsecondworldwideintermsoftheeaseofdoingbusiness.

Thecountryalsohasthesecond-mostcompetitiveeconomyintheworld,supportedbyfactorssuchasitsworld-classinfrastructureandstrongfocusoneducation,accordingtoWorldEconomicForum’s“TheGlobalCompetitivenessReport2016–2017”.

Competitive Tax ratesSingapore’sgovernmentbelievesinkeepingtaxratescompetitiveforbothcorporationsaswellasindividuals.SuchapolicyaimstomaintainSingapore’sattractivenessasaforeigninvestmentdestinationandencourageentrepreneurship.

robust Intellectual Property regimeSingaporecameinfourthworldwideinintellectualproperty(IP)protection,accordingtoWorldEconomicForum’s“TheGlobalCompetitivenessReport2016–2017”.ItsrobustIPregimeisbuiltonatrustedlegalsystemandstrongIParbitrationcapabilities.TosupportIPdisputeresolutioninAsia,Switzerland-basedWorldIntellectualPropertyOrganizationestablishedanArbitrationandMediationCentreinSingapore,itsonlycentreoutsideGeneva.

High Literacy rateFiguresbySingaporeDepartmentofStatisticsshowedthatSingaporehadaliteracyrateof97%amongresidentsaged15yearsandolderin2016.



extensive Network of Trade AgreementsSingaporehasanextensivenetworkofFreeTradeAgreements(FTAs)inAsia.TheseincludebilateralFTAsandASEANregionalFTAs(referto“SingaporewithinASEAN”sectionofthisguideformoredetails)withkeyeconomiessuchasAustralia,China,India,JapanandtheUnitedStates.

excellent Connectivity and InfrastructureSingaporeisoneoftheworld’stoptransportationhubsforseaandaircargo.Connectedtomorethan600portsinover120countries,Singaporeisthebusiestportintheworldintermsofshippingtonnage,withanaverageof140,000vesselcallsannually.

Singapore’sChangiAirportisamongtheworld’sbusiestinternationalairports,servingmorethan100airlinesthatflytosome380citiesinabout90countriesandterritoriesworldwide.Airfreightmovementsattheairporttotalled1.97milliontonnesin2016.

Thereisalsoawiderangeofstate-of-the-artconventioncentres,exhibitionhallsandmeetingvenuesinSingaporeforvariousneeds.SomemajorvenuesincludeSuntecSingaporeConventionandExhibitionCentre,SingaporeEXPO,andRafflesCityConventionCentre.

relatively Hassle-free Immigration Processes for Foreign Investors EligibleinvestorswhowishtosetupabusinessinSingaporemayapplyfortheSingaporepermanentresidencestatusthroughtheGlobalInvestorProgramme(GIP).FormoreinformationabouttheGIP,visit:www.contactsingapore.sg/gip.

IssuedtoeligibleforeignentrepreneurswhowishtostartanewbusinessinSingapore,theEntrePasshasavalidityperiodofoneyearforanewpassorfirstrenewalandtwoyearsforsubsequentrenewals.FormoreinformationabouttheEntrePass,visit:www.mom.gov.sg.

Contributed by:rSM8WilkieRoad#03-08WilkieEdgeSingapore228095Tel: +6565337600Fax:+6565387600Email:[email protected]:www.RSMSingapore.sg


http://www.contactsingapore.sg/giphttp://www.contactsingapore.sg/giphttp://www.mom.gov.sgmailto:MKTG%40RSMSingapore.sg?subject=http://www.RSMSingapore.sg


CoMMerCIAL eNVIroNMeNT

SINGAPore’S eCoNoMYSingaporehasahighlydevelopedfree-marketeconomythatdependsheavilyonexports.In2016,itrecordedaGDPofS$410.3billion(aboutUS$305.3billion),up0.5%year-on-year.ItspercapitaGDPisalsoamongthehighestintheworldatS$73,167(aboutUS$54,000)in2016.

Singapore’s GdP Composition by Sector (2016)

Construction5%

OwnershipofDwellings4.4%

Information&Communications4.2%

Accommodation&FoodServices2.2%

Utilities1.5%

Transportation&Storage7.6%

BusinessServices15.8%

Wholesale&RetailTrade14.2%

Finance&Insurance13.1%

OtherServices12.2%

Manufacturing19.6%


INdUSTrIeS IN SINGAPoreAerospace engineeringSingaporeisthemostcomprehensiveaerospacehubforMaintenance,RepairandOverhaul(MRO)inAsia,accountingforaquarteroftheregion’sMROoutput.Itsexistingcapabilitiesinprecisionengineeringandelectronicsalsosupportproductionofcomplexaero-enginecomponents.

Singapore’sSeletarAerospaceParkprovidesaconduciveenvironmentforaerospacecompaniestooperateandcollaborate.

Clean energyThereisastrongfocusonsolarenergyinSingapore,givenitsstrategiclocationinthetropicalsunbeltandstrongsemiconductorcapabilities.Otherareasoffocusincludewindenergy,biomass,tidalenergy,smartgrids,‘green’buildings,energyefficiencyandcarbonservices.

MajorenergyplayershavesetupoperationsinSingapore,attractedbyfactorssuchasitsstrongcapabilitiesinelectronics,precisionengineeringandchemicals,massmanufacturingknow-how,androbustintellectualpropertyprotectionregime.


ChemicalsSingaporeisoneoftheleadingenergyandchemicalindustryhubsintheworld.Manyoftheworld’sleadingenergyandchemicalcompanieshaveoperationsonSingapore’sJurongIsland,whichhasattractedmorethanS$35billion(aboutUS$26billion)worthofinvestments.

Consumer BusinessSingaporeiswell-positionedtosupportconsumerbusinessesininnovationandregionalgrowthstrategiesduetoitscentrallocationinAsia,strongscientificandbrandmanagementcapabilities,aswellasconducivebusinessenvironment.

InstituteonAsianConsumerInsightconductsresearchandeducationprogrammestohelpininnovatingbrandsandproductstomeetAsianconsumers’needs.

Content & MediaSingapore’scontentandmediasectorconsistsofvariousindustries,includingmediaowners,games,animation,visualeffectsandpublishing.Favourablefactorsforcontentandmediacompaniesincludethenation’sworld-classtalent,developedinfrastructureandresearchcapabilities.Withitsstrongintellectualpropertylawsandmultilingualtalentpool,Singaporeisalsoanideallocationforcreatinganddeployingnewcontent.

electronicsSingaporeisachoicelocationforelectronicscompaniestocreateandmanagenewmarkets.Thecountryishometo:▪ nineoftheworld’stop15fablesssemiconductorcompanies;▪ sixoftheworld’stopintegrateddevicemanufacturers;▪ theworld’stopthreeharddiscmediamanufacturers;and▪ fouroftheworld’stopfiveelectronicsmanufacturingservicesproviders.

energySingaporeisAsia’sleadingoiltradinghubaswellasanoilandoilproductpricingcentreintheregion.ItisalsotheleadingbulkliquidslogisticshubinAsiaandamajormarinebunkeringcentre.

Cities, Infrastructure & Industrial SolutionsSingaporeisaleadingone-stophubforengineeringsolutionsandhometoagrowingnumberofglobalengineeringdesignfirms.Nineoftheworld’stop10controlandautomationcompaniesalreadyhaveasignificantpresenceinthecountry.

environment & waterThereareabout180watercompaniesinSingaporethatrepresenttheentirevaluechainfromupstreamcomponentplayers,OriginalEquipmentManufacturers(OEMs)andsystemintegratorstodownstreamEngineering,ProcurementandConstruction(EPC)playersandprojectdevelopers.

Thecountryalsonurturestheenvironmentalindustry,whichincludesenvironmentalconsultancy,wastemanagementandpollutioncontrol.

HealthcareSingapore’sstandardofmedicalpracticeranksamongthebestintheworld.Therearestrategicpartnershipopportunitiesforhealthcareserviceproviderstodevelopandtestinnovativehealthcaresolutionsandsystems.



International Non-Profit organisationsSingaporeishometoabout140InternationalNon-ProfitOrganisations(INPOs),andiswell-positionedtosupportthemasafinancialhubwithstrengthsinlogisticsandtelecommunications.

Infocomm ServicesSingaporeisrankedfirstworldwideinnetworkreadiness,accordingtotheWorldEconomicForum’s“TheGlobalInformationTechnologyReport2016”.Itsexcellentinfrastructure,strongintellectualpropertyprotectionregime,goodconnectivityandeasyaccesstoglobaltalentattractinfocommservicescompaniestothecountry.

Infocomm ProductsLeadinginfocommproductcompanieshavesetuptheirglobalandregionalheadquartersinSingapore,coveringthefullvaluechainfromresearchanddevelopmentandsupplychainmanagementtomanufacturing,logisticsandsharedservices.

SomekeyproductsmanufacturedinSingaporeincludemission-criticalandsecurecomputingproductssuchashigh-endservers,ATMs,point-of-salessystems,networkingequipmentandsmartcards.

Logistics & Supply Chain ManagementSingaporeisatrustedandreliablesupplychainhubwithhighlyefficientcustomsandbusiness-friendlyimport/exportprocedures.

Itsseaandairportsarereadilyaccessiblethroughawell-planneddomesticroadnetwork.Singapore’sworld-classandspecialisedinfrastructureincludestheAirportLogisticsParkofSingapore,theChangiInternationalLogisParkandtheBanyanLogisPark.

Marine & offshore engineeringSingaporebuildsmorethan50%oftheworld’shigh-specificationoilrigsandhascloseto70%oftheglobalmarketfortheconversionoffloatingproductionstorageandoffloadingunits,accordingtotheSingaporeEconomicDevelopmentBoard.

Medical TechnologySingaporeisAsia’sleadinglocationformedicaltechnology,withcommercial-scaleplantssetupbyover30medicaltechnologycompaniestoproducemedicaldevicesfortheregionalandglobalmarkets.

Singapore’smedicaltechnologysectorcontributedaboutS$10billioninoutputin2015andS$70millionhasbeencommittedundertheSectorSpecificAcceleratorprogrammetoencouragetheformationandgrowthofmedicaltechnologystart-upsinthecountry.

Pharmaceuticals & BiotechnologyMorethan30oftheworld’sleadingbiomedicalsciencescompanieshaveoperationsinSingapore.

SomelocalbiomedicalresearchinstitutesincludetheBioinformaticsInstitute,BioprocessingTechnologyInstitute,GenomeInstituteofSingapore,andInstituteofBioengineeringandNanotechnology.

Precision engineeringSingapore’sprecisionengineeringindustrycomprisescompaniesthatrangefromcontractmanufacturerstofullsolutionproviderswithdesign,prototyping,productionandsupplychainmanagementcapabilities.



Professional ServicesMNCsfromawiderangeofindustriesandgeographieshaveestablishedtheirregionalorglobalheadquartersinSingapore,whichhasalsodrivendemandforprofessionalservices.

Source: Singapore Economic Development Board

eMerGING BUSINeSSeSAutomotiveAlmostallmajorOriginalEquipmentManufacturersandTier1automotivesuppliersuseSingaporetooverseetheirregionaloperations.

Singapore’sstrengthsinelectronics,info-communicationsandmechanicalengineeringalsosupportgrowthofrelatedautomotiveresearchanddevelopment.

Safety & SecuritySingaporeEconomicDevelopmentBoardpartneredwiththeMinistryofHomeAffairs(MHA)toformtheSafetyandSecurityIndustryProgrammeOfficetopromotethisindustryinSingapore.

Throughthiscollaboration,platformsarecreatedwherebycompaniescanworkwiththepublicsectorthroughpublic-privatepartnershipsontheirinnovativesolutionsinaliveoperationalenvironmentinSingapore.

Natural resourcesSingaporeaimstobeanervecentrethatplaysapartinfulfillingglobaldemandforaquaculture,agriculture,metalsandminerals.

Lifestyle Products & ServicesGrowinglifestylebusinessesinSingaporeincludethoserelatingtoart,collectibles,performingartsandsports.

roboticsSingapore’smanufacturingindustryhasthehighestrobotdensityintheworldafterSouthKorea,with488robotsper10,000employeesin2016.About90%oftherobotsareinstalledinSingapore’selectronicsindustry,whichhasincreaseditsnumberofrobotinstallationssignificantlyinrecentyears.

SpaceEstablishedbythegovernmentin2013,theOfficeforSpaceTechnologyandIndustryservesasthedesignatedofficetodevelopSingapore’sspaceindustry.

Sources: Singapore Economic Development Board and International Federation of Robotics



SINGAPore ANd TrAdeTradingishighlyimportanttoSingapore’seconomy.AccordingtotheWorldTradeOrganization,Singapore’stradetoGDPratiowas168.5%(2014–2016).Mostimportsenterthecountryduty-free.

Singapore’stotaltradeatcurrentpricesamountedtoS$870.2billion(aboutUS$647.5billion)in2016.

Singapore’s Merchandise Trade Performance at Current Prices (2006–2016)

2006 20102008 2012 20152007 2011 20142009 2013 2016Year

S$billion

200

600

1000

400

800

1200

Total Trade

Total exports

Total Imports


Top Trading PartnersChinawasSingapore’slargesttradingpartnerin2016,followedbyMalaysia,theEuropeanUnion,theUnitedStatesandHongKong.OthermajortradingpartnersincludeIndonesia,Taiwan,SouthKorea,JapanandThailand.

Singapore’s Top Trading Partners in 2016 (Share of Total Merchandise Trade)

HongKong

EuropeanUnion

UnitedStates

Malaysia

China

7.4%

10.7%

8.3%

10.8%

13.5%

Source: Economic Survey of Singapore 2016, Ministry of Trade and Industry



Global Maritime HubSingaporeisaglobalmaritimehubstrategicallylocatedatthesoutherntipoftheMalayPeninsula.Connectedto600portsinover120countries,Singaporeisthebusiestportintheworldintermsofshippingtonnage,withmorethan130,000vesselcallseachyear.MorefactsandfiguresaboutSingapore’spositionasaglobalmaritimehubarehighlightedbelow.

Facts and Figures▪ Morethan5,000maritimeestablishmentscontributingabout7%toSingapore’sgrossdomesticproduct,andemployingmorethan170,000personnel

▪ Hometoabout140oftheworld’stopshippinggroups▪ Topbunkering(shiprefuelling)portintheworld,withmorethan45milliontonnesofbunkersliftedin2015▪ Commandsabout70%shareoftheworld’sjack-uprig-buildingmarketand70%oftheglobalFloatingProductionStorageandOffloadingplatformsmarket

▪ MaritimeandPortAuthorityofSingaporeoffersassistanceinsettingupamaritimebusinessaswellasinexpandingexistingoperations

▪ SingaporeRegistryofShipsamongtop10largestregistriesintheworldandcurrentlyhasover4,500vesselsregisteredwithit

▪ 30.59millionTEUs(Twenty-footEquivalentUnits)ofcontainershandledbyPSASingaporein2016

Sources: Maritime and Port Authority of Singapore and PSA Singapore

Free Trade and other AgreementsFreeTradeAgreements(FTAs)mayallowSingapore-basedexportersandinvestorstoenjoyvariousbenefitssuchastariffconcessions,preferentialaccesstocertainsectors,fasterentryintomarketsandIntellectualProperty(IP)protection.

Singapore’s Involvement in FTAs▪ ASEANregionalFTAs(referto“SingaporewithinASEAN”sectionofthisguideformoredetails)▪ Australia(SAFTA)▪ China(CSFTA)▪ CostaRica(SCRFTA)▪ EuropeanFreeTradeAssociation(ESFTA)▪ GulfCooperationCouncil(GSFTA)▪ HashemiteKingdomofJordan(SJFTA)▪ India(CECA)▪ Japan(JSEPA)▪ NewZealand(ANZSCEP)▪ Panama(PSFTA)▪ Peru(PeSFTA)▪ RepublicofKorea(KSFTA)▪ Trans-PacificStrategicEconomicPartnership(TPSEP)▪ Turkey(TRSFTA)▪ UnitedStates(USSFTA)

Source: International Enterprise Singapore



AsatJuly2017,Singaporealsohasmorethan80doubletaxationagreements(DTAs)and40investmentguaranteeagreements(IGAs).MoreinformationontheseisfoundintheTaxationsectionofthisguide.

INVeSTMeNT ACTIVITIeSForeign direct Investment in SingaporeForeignDirectInvestment(FDI)inSingaporetotalledapproximatelyS$1.36trillionin2016,up7.7%fromthepreviousyear.Ofthis,S$1.22trillion,orabout90%,wereintheformofdirectequityinvestment.TheremainingS$141billion,or10%,werenetlendingfromforeigndirectinvestors.ThegrowthofFDIinSingaporeinrecentyearsisshownbelow.

FdI in Singapore (2012-2016)

20132012 20152014 2016Year

S$billion

600

800

1100

1200

1300

1400

1000

700

900

1500

500


Singapore’s direct Investment AbroadSingapore’sdirectinvestmentabroadincreased8.8%year-on-yeartoreachS$764.7billionin2016.



Singapore’s direct Investment Abroad (2012-2016)

20132012 20152014 2016Year

S$billion

350.0

450.0

600.0

650.0

700.0

750.0

550.0

400.0

500.0

800.0

300.0


Top 10 destinations for Singapore’s direct Investment Abroad in 2016 (S$ billion)

CaymanIslands

BritishVirginIslands

India

Australia

UnitedKingdom

HongKong

Malaysia

Indonesia

Luxembourg

China

34.7

40.0

36.3

40.6

43.7

52.8

42.1

52.7

64.2

123.5




GoVerNMeNT Pro-BUSINeSS SCHeMeSSingapore’sgovernmentoffersvariousschemestosupportbusinessesinthecountry.SomeoftheseschemesareadministeredbytheSingaporeEconomicDevelopmentBoard(EDB)andSPRINGSingapore,bothstatutoryboardsundertheMinistryofTradeandIndustry.

EDB’scorporateinvestmentarm,EDBI,investsingloballycompetitivecompanieswithhigh-growthpotential,especiallythoseinthebiomedicalsciences,information&communicationtechnology,andsmart&sustainabletechnologysectors.FormoreinformationaboutEDBI,visitwww.edbi.com.

Othergovernmentbodies,suchasInternationalEnterprise(IE)SingaporeandInfo-communicationsMediaDevelopmentAuthority(IMDA),alsosupporteligiblebusinesses.

Somepro-businessgovernmentschemesinSingaporeareshowninthefollowingtable.Moreinformationcanbefoundonthegovernmentbodies’respectivewebsites.

edBwww.edb.gov.sg

SPrING Singaporewww.spring.gov.sg

Ie Singaporewww.iesingapore.gov.sg

Inland revenue Authority of Singapore

www.iras.gov.sg

▪ ResearchIncentiveSchemeforCompanies

▪ TrainingGrantforCompany

▪ ProductivityGrant▪ PioneerCertificateIncentive

▪ DevelopmentandExpansionIncentive

▪ Finance&TreasuryCentreIncentive

▪ LandIntensificationAllowance

▪ AircraftLeasingScheme

▪ Innovation&CapabilityVoucher

▪ CapabilityDevelopmentGrant

▪ SMELoans▪ StartupSG

▪ MarketReadinessAssistanceGrant

▪ GlobalCompanyPartnershipGrant

▪ InternationalMarketingActivitiesProgramme

▪ WageCreditScheme▪ DoubleTaxDeductionforInternationalisationScheme

Sources: Singapore Economic Development Board, SPRING Singapore, International Enterprise Singapore, and Inland Revenue Authority of Singapore

Contributed by:rSM8WilkieRoad#03-08WilkieEdgeSingapore228095Tel: +6565337600Fax:+6565387600Email:[email protected]:www.RSMSingapore.sg


http://www.edbi.comhttp://www.edb.gov.sghttp://www.spring.gov.sghttp://www.iesingapore.gov.sghttp://www.iras.gov.sgmailto:MKTG%40RSMSingapore.sg?subject=http://www.RSMSingapore.sg


HoUSING, TrANSPorT & edUCATIoN IN SINGAPore

SINGAPore: A GLoBALISed CITY STATeSingaporepossessesatotallandareaof719.9squarekilometres,housesapopulationof5.64million,andisknownforhavingoneofthehighestpopulationdensitiesintheworld.Thecountryhasnonethelessachievedahighqualityofliving.GlobalhumanresourceconsultingfirmMercerrankedSingaporeasthemostliveablecityinAsiaonits2017QualityofLivingIndex,basedonvariousfactorssuchasthepolitical,socialandeconomicenvironments,medicalandhealthconsiderations,andeducation.

Thecitystatehasasignificantforeignpopulation,with71%comprisingcitizensandpermanentresidents(PRs),and29%non-residents.Themetropolitancityhasadiversemixofcultures,withpeopleofvariousnationalitiesworkingindifferentindustries.

TheSingaporeeconomyhasevolvedgreatlyinthelastfivedecades.ItbeganwithindustrialisationafterSingapore’sindependencein1965.Asacountrywithnonaturalresources,alow-skilledlabourforce,andpoorinfrastructure,ithadtheuphilltaskofconvincingforeigninvestorsthatitwasagoodplaceforbusiness.Throughtheyears,thegovernmentcontinuedtoplayacriticalroleinsteeringtheeconomy.Variousstrategieswerecrucial,inparticular,diversifyingtheeconomyanddevelopingnewenginesofgrowth,continuouslyseekingtomovethemanufacturingsectortowardshigh-valueaddedindustries,astrongemphasisonmanpowerdevelopmentthrougheducationandtraining,andembracingglobalisation.

Today,Singaporehasoneofthehighestgrossdomesticproductspercapitaintheworld.Itremainswellregardedasatriple-A-ratedeconomywithconsistentgrowth,asoundandstablelocationforbusinessexpansion,andaconduciveenvironmentforinvestments.Italsopridesitselfasawell-establishedfinancialhubforAsia.ThegovernmentcontinuestoexplorenewenginesofgrowthtodiversifyanddrivetheeconomytotakeSingaporethroughthenextphaseofgrowth.

HoUSING IN SINGAPoreHousing Types in SingaporeInSingapore,about80%ofallhouseholdsresideinpublichousingflats,andtheother20%stayinprivatelandedandhigh-risenon-landedresidentialproperties.Thehomeownershiprateamongresidenthouseholdsishighat91%asat2016.

Publichousingdevelopmentsserveasapillarofnation-buildingbypromotingsocialmobility,socialintegrationandsharedexperiences.ThesepublichousingflatsplannedbytheHousingandDevelopmentBoard(HDB),otherwiseknownasHDBflats,arelocatedinhousingestatesequippedwithawiderangeofretailandotheramenities–suchasparksandchildren’splaygrounds–toservethedailyconvenienceandlifestyleneedsofresidents.

ThevarioustypesofHDBflatsarelistedinthefollowingtable.


Typical Sizes and Common Features of different Types of HdB Flats

Type of HdB FlatTypical Size

(in square metres)Common Features

StudioApartments(SA) 35and45

▪ Designedtomeettheneedsofelderlyresidents▪ Soldon30-yearleases▪ Canaccommodateaone-ortwo-memberhouseholdcomfortably

▪ Eachflatissoldinready-to-occupycondition

2-roomflats 45

Eachflatcomeswith:▪ Livingareathatmaybesubdividedintoanextraroom,ifneeded

▪ Kitchen▪ Onebedroomwithanattachedbathroom▪ Storeroom-cum-apartmentshelter

3-roomflats 60-65

Eachflatcomeswith:▪ Livingarea▪ Kitchen▪ Onemasterbedroomwithattachedbathroom▪ Oneotherbedroom▪ Commonbathroom▪ Serviceyardand▪ Storeroom-cum-apartmentshelter

4-roomflats 90

Eachflatcomeswith:▪ Livingarea▪ Diningarea▪ Kitchen▪ Onemasterbedroomwithattachedbathroom▪ Twootherbedrooms▪ Commonbathroomsand▪ Storeroom-cum-apartmentshelter

5-roomflats 110

Eachflatcomeswith:▪ Livingarea▪ Diningarea▪ Kitchen▪ Onemasterbedroomwithanattachedbathroom▪ Twootherbedrooms▪ Commonbathroom▪ Storeroom-cum-apartmentshelter



Type of HdB FlatTypical Size

(in square metres)Common Features

3Genflats 115

Eachflatcomeswith:▪ Livingarea▪ Diningarea▪ Kitchen▪ Onemasterbedroomwithanattachedbathroom▪ Anadditionalbedroomwithattachedbathroom▪ Twootherbedrooms▪ Commonbathroom▪ Storeroom-cum-apartmentshelter

Executiveflats 130

Eachflatcomeswith:▪ Livingarea▪ Diningarea▪ Kitchen▪ Mainbedroomwithattachedbathroom▪ Twoadditionalbedrooms▪ Commonbathroomand▪ Storeroom-cum-apartmentshelter

Thereisadditionalspaceforastudyroom.ThiscanbeeasilyconvertedintoasmalllivingroomoraTV-viewingcorner.

Someexecutiveflatscomeequippedwithabalconyaswell.

Source: Housing and Development Board (HDB)

Inadditiontotheconventionalpublichousingdevelopments,thegovernmentintroducedtwootherschemes.Hybridprivate-publichousingdevelopmentsknownasExecutiveCondominiums(ECs)werefirstbuiltin1996tocatertomiddle-incomeindividualswhoseearningsexceedthemaximumlimittoqualifyforsubsidisedpublichousingbutwhomaynotbeabletoaffordprivateproperty,wherepriceswerebeyondreachformanyinabuoyantmarket.Startingoutwithapublicdevelopmentstatus,ECswilleventuallyattainprivateresidentialstatusafter10yearsfromtheirdateofcompletion.TheDesign,Build,&SellScheme(DBSS)wasintroducedin2005,whereflatsweredevelopedbyprivatedeveloperstooffermoredesignsandchoicesforpublichousingtomeettheaspirationsofhigher-incomepublicflatbuyers.

TherearevariousschemesunderwhichSingaporecitizenscanpurchaseapublichousingflat,anddifferenteligibilityconditionsapplyundereachscheme.Ingeneral,marriedcouplesabovetheageof21andsinglepersonsabovetheageof35areeligibletopurchaseapublichousingflat.

PrivatehousingdevelopmentsinSingaporeincludethefollowing:▪ Landedproperties(detachedhouses,semi-detachedhousesandterraces)▪ Non-landedproperties(Privatecondominiumsandapartments)



CoMMUTING IN SINGAPore Transport Network TravellingbypublictransportinSingaporeisfairlyconvenientwitharelativelywell-developedpublictransportationnetwork.Thegovernmenthasinvestedheavilyincontinuouslyimprovingthevariousmodesofpublictransport,withtheLandTransportAuthorityspearheadingpoliciestostrengthenurbanmobility.ThethreemainmodesofpublictransportaretheMassRapidTransit(MRT),busesandtaxis.Eachtypeofpublictransportservestocatertothedifferentneedsofcommuters,rangingfromcosttoconvenience.AccordingtoastudyconductedbyconsultingcompanyCredo,thepublictransportationsysteminSingaporeisoneofthemostcost-efficientintheworld.

Mass rapid Transit and Light rail Transit Systems ThemostcommonformofpublictransportinSingaporeistheMRTtrainsystem,whichservicesanaveragedailyridershipof3.1million.Withfivemainlinesrunningatpresent,atotalrailnetworklengthof170.8kilometresand106stationsintotal,theMRTisoneofthemostcommonwaysforcommuterstotraveltovariouspartsofSingapore.ItisalsoespeciallyconvenienttotraveltodowntownareassuchasOrchardRoadandtheCentralBusinessDistrict.

AfurtherextensionofthelocalrailsystemistheLightRailTransit(LRT),whichformsthelightrailcomponentofSingapore’srailnetwork.Firststartedin1999tosupportthegovernment’saimoffacilitatingintra-towntravel,LRTsystemshavebeendevelopedinselectedlargetownstofacilitategreateraccessibilitybeyondtowncentres,improvecommutingexperiencefromMRTstationsandminimiseroadtrafficcongestion.

Public Bus System Complementingthetrainsystemisthediversepublicbusnetwork,whichisprovidedbytwooperators,SBSTransitandSMRT.Morethanthreemillionridesarerecordedonadailyaveragebasis,reflectingthereliabilityandimportanceofthebusnetworkinprovidingcommuterswithaconvenientexperienceandconnectivity.

Together,theMRTandbussystemsformacomprehensivepublictransportnetworkinSingapore.

Taxi System Morethan25,000taxisplytheroadsofSingapore,withapproximately954,000tripsmadedailyonaverage.Taxisgenerallyallowcommuterstoreachtheirdestinationsdirectlywithinarelativelyshortertime,albeitatahighercost.Atpresent,therearesixmajortaxicompaniesoperatingtheirfleetsinSingapore:▪ ComfortTaxi▪ CityCab▪ SMRTTaxis▪ Transcab▪ PremierTaxis▪ PrimeTaxi

Private Hire Cars Inrecentyears,privatehirecarcompanieslikeUberandGrabhavealsoenteredthelocalmarket.Withfewerregulationsgoverningtheprivatehirecarsector,driverswhocouldnotmeetthestringentrequirementsofthetaxiindustryhaveturnedtowardstheprivatehirecarsectorinstead.Suchdriverstypicallyofferthesameservicesasataxi,butatalowercost.Asaresult,theyaregainingpopularityamongbothlocalsandforeigners.



STUdYING IN SINGAPoreSingapore’seducationsystemfallsunderthepurviewoftheMinistryofEducation(MOE).Itisrenownedforitsemphasisonbroad-basedandholisticcurricula,andhasreceivednumerousinternationalaccolades.ThemediumofinstructioninmainstreamschoolsisEnglishandthefollowingdiagramshowsanoverviewofvariousstagesofeducationinSingapore.

Stages of education in Singapore

Post-secondary (one to three years)17 to 19 years old

▪ JuniorColleges/CentralisedInstitute▪ Polytechnics▪ InstituteofTechnicalEducation▪ SpecialSchools1

▪ IntegratedProgramme3

▪ SpecialisedIndependentSchools4

▪ PrivateSchoolsandInstitutions5

Secondary (Four to five years)13 to 16 years old

▪ SecondarySchools▪ SpecialSchools1

▪ SpecialisedSchools2

▪ IntegratedProgramme3

▪ SpecialisedIndependentSchools4

▪ PrivateSchoolsandInstitutions5

Primary (Six years)Seven to 12 years old

▪ PrimarySchools▪ SpecialSchools1

Pre-school (Three years)Four to six years old

University (Three to four years)20 to 23 years old

Note: 1 Special schools cater for students with special needs, such as those with visual or hearing impairments/disabilities. 2 Specialised schools offer customised programmes for students who are inclined towards hands-on and practical learning. 3 The integrated programme combines secondary and junior college education into one programme. 4 Specialised independent schools are for students with specific talents in areas such as maths, science, arts and sports. 5 Private schools and institutions offer their own curricula.



ranking of Singapore’s education System by Accolades

ranked by How Singapore’s education System is ranked

PrIMArY edUCATIoN

WorldEconomicForum’sGlobalCompetitivenessReport2016-2017

▪ Qualityofprimaryeducationrankedfourthoutof138countries▪ Topinenrolmentforprimaryeducation,achievinguniversalprimaryeducation

HIGHer edUCATIoN (SeCoNdArY & TerTIArY edUCATIoN)

WorldEconomicForum’sGlobalCompetitivenessReport2016-2017

▪ Qualityofeducationsystemrankedsecondoutof138countries▪ Rankedfirstamong138countriesinthequalityofmathsandscienceeducation

TerTIArY edUCATIoN

2018QuacquarelliSymonds(QS)WorldUniversityRankings

▪ NanyangTechnologicalUniversity(NTU)–rankedthetopuniversityinAsiaand11thworldwide

▪ NationalUniversityofSingapore(NUS)–rankedsecondinAsiaand15thworldwide

Sources: World Economic Forum, Quacquarelli Symonds (www.topuniversities.com)

Singaporehasachievedalmostuniversaleducationacrosstheprimaryandsecondaryschoollevels.ThemainstreamormosttypicalrouteforaSingaporestudentbeginswiththreeyearsinpre-schoolfromtheageoffourtosixyearsold,followedbysixyearsofcompulsoryprimaryeducationfromsevento12yearsold.Thenthestudentspendsfourtofiveyearsinasecondaryschoolfrom13to16/17yearsofage.

Aftersecondaryeducation,studentshavetheoptiontoenteraJuniorCollege(JC),polytechnicorInstituteofTechnicalEducation(ITE).Next,thegraduatingstudentsinJCsorpolytechnicsmaychoosetoproceedtofurtherstudiesinalocaluniversity(alsobasedoneligibility)orcommencetheirworkinglife.

Primary educationPrimaryeducationisasix-yearcourseofeducationtypicallycommencingwhenachildhasreachedsixyearsofage.Since2003,primaryeducationhasbeenlegislatedascompulsoryforallSingaporecitizensabovetheageof6,withtheexceptionofchildrenwhochoosetoattenddesignatedschools,aregrantedtheexemptionforhome-schooling,orhavespecialneedsduetophysical/intellectualdisability.

PrimaryeducationculminatesinaPrimarySchoolLeavingExamination(PSLE),whichallstudentsmusttake.Theirgradesinthisexaminationwilldeterminethesecondaryschoolstheyareeligibletoenrolfor.However,since2004,theMOEhasintroducedtheDirectSchoolAdmission–Secondary(DSA-Sec)ExercisethatisconductedbeforethereleaseofthePSLEresults.Differentschoolsmayconsiderdifferentcriteriasuchassportingabilityorothertalents,whichisintendedtoconsideramorediverserangeofachievementsandtalentsinstudentsseekingplacementintheschoolofchoice.Itservesasanalternativeavenueforprimaryschoolstudentstobeconsideredforadmissiontosecondaryschools.StudentswhohaveoptedforaschoolundertheDSA-SecExercisemustachievePSLEresultsthatwouldenablethemtobeeligibleforadmissiontoacourseofferedbytheirchosenDSA-Secschools.


http://topuniversities.com


RegistrationforprimaryschoolisconductedfromJunetoSeptembereveryyear.Therearemorethan180primaryschoolsofferingdifferentnumbersofvacancies,andtheinformationwillbemadeavailablepubliclybeforetheapplicationperiodcommencesinJune.

option for Home-schoolingSpecialexemptionwillhavetobeappliedforhome-schooling,andwillonlybegrantediftheparentsareabletosatisfyMOEthattheywillbeabletoachievethetwoobjectivesofCompulsoryEducation(CE):▪ Givethechildacommoncoreofknowledgethatwillprovideastrongfoundationforfurthereducationandtrainingtopreparehim/herfortheknowledge-basedeconomy;and

▪ Helptobuildnationalidentityandcohesion.

Hence,theapplicationforhome-schoolingwillrequireparentstofurnishinformationonthecurriculumandeducationaloutcomesofthehome-schoolingprogramme,andindicatehowthechildwillreceiveinstructioninNationalEducation(NE).AchildgrantedexemptionfromCEtobehome-schooledhastoattemptthePSLEinfoursubjectsatStandardLevel(English,MotherTongue,Mathematics,Science)whenhe/sheisabove11yearsold,butbeforereaching15yearsofage,andmeetthePSLEbenchmarkscorefortheyear.ThechildisalsorequiredtosittheNEquizbeforetakingthePSLE.

Secondary educationSecondaryschoolsplacestudentsintheExpress,Normal(Academic),orNormal(Technical)coursesaccordingtohowtheyperforminthePSLE.Eachprogrammeisintendedtocatertodifferentlearningabilitiesandinterests.

StudentsintheExpressstreamwilltaketheGCECambridge‘O’Levelexaminationsattheendoffouryears,whilestudentsintheNormal(Academic)andNormal(Technical)streamwilltaketheGCE‘N’levelexaminationattheendoffiveyears.Theirresultsintheseexaminationswillbeanimportantadmissioncriterionconsideredbyvariouspost-secondaryinstitutions.

Therearemorethan150secondaryschoolswithdifferentannualenrolmentsinSingapore.

Junior Colleges and Centralised InstituteStudentshavethreeoptionsforpost-secondaryeducation:Pre-universityeducation(inJuniorColleges(JCs)oracentralisedinstitute),Polytechnic,orInstituteofTechnicalEducation(ITE).

Pre-universityeducationpreparesstudentsfortheGCE‘A’LevelExaminationattheendofatwo-yearJCorthree-yearcentralisedinstitutecourse.

PolytechnicsTherearecurrentlyfivepolytechnicsinSingapore,eachofferingmorethan35courses.Thiseducationpathwayistypicallymorepractice-centred,andseekstotrainstudentsinrelevantandspecificskillsfortheworkplace.

Integrated Programmes for Secondary and Post-secondary educationSince2004,theMinistryofEducationintroducedIntegratedProgrammes(IPs)inselectedsecondaryschoolsandJCs,whichgiveacademicallystrongstudentstheoptiontochooseanintegratedsecondaryandJCeducationwheresecondaryschoolpupilscanproceedtotheJCwithouttakingtheGCE‘O’LevelExaminations.Thetimefreedupfromnothavingtoprepareforthe‘O’LevelExaminationswillallowthosewhoareacademicallystrongertoengageinbroaderlearningexperiencesthroughagreaterrangeofacademicandnon-academiccurricula.TheIPsleadtoeitherthe‘A’LevelExaminations,InternationalBaccalaureate,orotherdiplomas,dependingontheprogrammeofferedbytheschoolofchoice.



School of the Arts (SoTA)Setupin2004,SOTAisSingapore’sfirstnationalpre-tertiaryspecialisedartsschooltoofferasix-yearuniqueintegratedartsandacademiccurriculumforyouthsaged13to18.ItcomesundertheambitoftheMinistryofCulture,CommunityandYouth(MCCY)insteadoftheMinistryofEducation.

Theadmissionprocessisdifferentfromthattypicaltosecondaryschoolsorintegratedprogrammes.Theselectionprocessinvolvesacognitiveexercise,audition,personalinterview,andportfolioreview.

Itisopento:▪ CurrentPrimary6studentswhoaresittingforPSLEin2014(DSA-Secondarycategory)▪ StudentswhowillcompletetheequivalentofaPrimary6educationby2014(DSA-Secondary,Non-MOEcategory)

▪ CurrentSecondary4ExpressandSecondary5Normal(Academic)StreamstudentswhoaretakingtheGCE‘O’LevelExaminationsin2014(DSA-JCcategory)

FormoreinformationonadmissionintoSOTA,visit:www.sota.edu.sg.

Institute of Technical education (ITe)TheITEoffersatechnicaleducationtrack,andcouldpavethewayforhigherleveltrainingatthepolytechnicsbasedoneligibility,shouldstudentsdecidenottoentertheworkforceyet.

LASALLe College of the Arts and Nanyang Academy of Fine Arts (NAFA)Theseareprivateinstitutionsprovidingpost-secondaryeducationinthearts.Bothofferpubliclyfundeddiplomaprogrammes,andalsoreceivegovernmentfundingforselecteddegreeprogrammesofferedinpartnershipwithreputableoverseasuniversities.

University educationTherearefiveautonomousuniversitiesinSingapore,namely:▪ NanyangTechnologicalUniversity(NTU)▪ NationalUniversityofSingapore(NUS)▪ SingaporeInstituteofTechnology(SIT)▪ SingaporeManagementUniversity(SMU)▪ SingaporeUniversityofTechnologyandDesign(SUTD)

TheNTUandNUSareSingapore’smostestablisheduniversitiesandwellregardedinternationally.Theotherthreeuniversitiesaremorespecialisedandhaveasmallerenrolmentcohortannuallythantheothertwo.Forexample,SMUoffersabusiness-focusedcurriculum,SUTDfocusesontechnology-intensive,designeducationinengineeringandarchitecture,andtheSIToffersindustry-focusedprogrammesforthegrowthsectorsoftheSingaporeeconomy.

Agraduatemedicalschool,Duke-NUSGraduateMedicalSchoolSingapore,wasalsocreatedthroughapartnershipbetweenDukeUniversitySchoolofMedicineandNUStoincreaseSingapore’scapacitytodevelopavibrantbiomedicalhub.

Apartfromthefiveautonomousuniversities,thereisalsoaprivateuniversity,SingaporeInstituteofManagement(SIM),whichprovidesuniversityeducationforworkingprofessionalsandadultlearners.Inaddition,thereareseveralotherbranchcampusesofwell-regardedforeigntertiaryinstitutionslocatedlocally.


http://www.sota.edu.sg


Foreign System Schools (FSS)Althoughthepublicschoolsystemoffersahighqualityeducationframework,someexpatriatesmaypreferenrollingtheirchildreninForeignSystemSchools(FSS).ThismayespeciallybethecaseforstudentswhohavenotusedEnglishasthemediumofinstructionpriortocomingtoSingapore.

Therearecurrentlymorethan30FSSimportedfromvariouscountriesthatfollowdifferenteducationsystemsoftencongruentwiththoseofferedinthehomecountry.AsstipulatedbytheImmigrationandCheckpointsAuthority,allforeigners,exceptDependant’sPass/ImmigrationExemptionOrderholders,whowishtostudyinanFSSarerequiredtoapplyforaStudent’sPass.Since20June2011,FSSregisteredwiththeCouncilforPrivateEducation(CPE)needtobeawardedwithEduTrustcertificationtoofferschoolplacementforinternationalstudents.Student’sPassapplicationswillbeacceptedonlyiftheyareforinternationalstudentswhoareenrolledinanEduTrust-certifiedFSS.

Note: The views expressed in this article are based on regulatory requirements as at 25 October 2017.

Contributed by:knight Frank Pte Ltd10CollyerQuay#08-01OceanFinancialCentreSingapore049315Tel: +6562221333Fax:+6562229305Email:[email protected]:www.KnightFrank.com.sg


mailto:enquiry%40knightfrank.com.sg?subject=http://www.knightfrank.com.sg%0D


SoLe ProPrIeTorSHIPS ANd GeNerAL PArTNerSHIPSAllsoleproprietorshipsandpartnershipsmustberegisteredwiththeAccountingAndCorporateRegulatoryAuthority(“ACRA”)undertheBusinessRegistrationAct,Cap32.ACRAmustbenotifiedofanychangesintheparticularsoftheproprietor,managerorpartnersofbusinessfirmswithintheprescribedtimeline.

Soleproprietorshipsandgeneralpartnershipsarenotcorporatebodies;i.e.soleproprietorsandpartnersofpartnershipshaveunlimitedliabilityforthedebtsandobligationsthatarisefromthebusinesses.

LIMITed LIABILITY PArTNerSHIPSALimitedLiabilityPartnership(LLP)mustberegisteredwithACRAundertheLimitedLiabilityPartnershipsAct2005.

AnLLPisessentiallyapartnershipwithlimitedliability.Itisabodycorporateandhasalegalpersonalityseparatefromthatofitspartners.ThepartnersofanLLPhavelimitedliabilityforthedebtsandobligationsincurredbytheLLP.AnLLPhasperpetualsuccessionandanychangeinthepartnersofanLLPwillnotaffectitsexistence,rightsandliabilities.AnLLPcansueandbesuedinitsownname.Itcanacquire,own,holdanddeveloppropertyandincurdebts.

LIMITed PArTNerSHIPSALimitedPartnership(LP)isnotaseparatelegalentity.AnLPmusthaveatleasttwopartnerswithatleastonegeneralpartnerandonelimitedpartner.AgeneralpartnerisliableforalldebtsandobligationsoftheLPwhilstalimitedpartnerisnotliableforthedebtsandobligationsoftheLPbeyondhisagreedcontribution.LimitedpartnersdonottakepartinthemanagementoftheLPandhavenoauthoritytobindtheLP.

Anindividualoracorporationmaybeageneralpartneroralimitedpartner.

CoMPANIeSAlimitedliabilitycompanyisthemostcommonformofbusinessentityinSingapore.AlimitedcompanyisincorporatedundertheCompaniesAct,Cap.50andregisteredwithACRA.Alimitedcompanymaybelimitedbysharesorlimitedbyguarantee.Acompanymayberegisteredasaprivatecompanyifitdoesnothavemorethan50shareholdersanditsArticlesofAssociationrestricttherighttotransfershares.Otherwise,thecompanymustberegisteredasapubliccompany.

Acompanyisabodycorporateandhasaseparatelegalpersonalityfromitsshareholders.Thecompanycansueandbesuedinitsownname.Itcanownpropertyandincurdebts.Theliabilityoftheshareholders,ifany,islimitedtoanyamountunpaidontheirshares.Whenthesharesarefullypaid-up,theshareholdershavenofurtherliabilitytocontributetowardsthedebtsofthecompany.

JoINT VeNTUreSAjointventuremaytaketheformofequityinvestmentinalimitedliabilitycompany,limitedliabilitypartnershiporgeneralpartnership.Jointventuresaregovernedbythelawsofcompanies,limitedliabilitypartnershipsorgeneralpartnerships,asappropriate.

TYPeS oF BUSINeSS orGANISATIoNS


ForeIGN CoMPANIeSAforeigncompanythatwishestoestablishaplaceofbusinessorcarryonbusinessinSingaporemaysetupabranch.AsubsidiaryisanewlegalentityincorporatedundertheCompaniesAct,Cap.50whilstabranchisanextensionofacompanyincorporatedelsewhere(i.e.theheadoffice).AforeigncompanyorabranchistoberegisteredwithACRAundertheCompaniesAct,Cap.50.

WhetheranoverseascorporationisdeemedtobecarryingonbusinessthroughabranchinSingaporedependsonthenatureoftheactivitiesproposed.TodeterminewhethertheproposedactivitieswillrequiretheregistrationofaSingaporebranch,itisadvisabletoobtainadvicefromprofessionals.

rePreSeNTATIVe oFFICeSAforeigncompanymayestablisharepresentativeofficeinSingaporetoundertakemarketresearchandfeasibilitystudiesonbehalfoftheparentcompany.Arepresentativeofficeisnotpermittedtoengageinbusiness,concludecontracts,andopenornegotiateanylettersofcredit.ApprovalfortheestablishmentofarepresentativeofficemustbeobtainedfromInternationalEnterpriseSingapore.

INCorPorATING A CoMPANYReservationandapprovalofanameforthecompanyisthefirststepintheincorporationprocedure.ThisisdonebysubmittingtheproposedcompanynameandrelevantinformationonlinetotheAccountingandCorporateRegulatoryAuthority(“ACRA”)togetherwithpaymentoftherequisitefee.

Oncethenameisapproved,theincorporationinformationanddocuments,whenready,canbee-filedwithACRA.Thecompanycancommencebusinessonceitreceivesane-notificationofincorporationfromACRA,usuallyonthesameworkingdayofsuccessfule-filing.AhardcopyofthecertificateofincorporationcanbepurchasedfromACRAforafee.

ASingaporecompanycanbeincorporatedwithaminimumofonedirector,whomustbeanaturalperson.EverycompanymusthaveatleastonedirectorwhoisordinarilyresidentinSingapore.Likewise,acompanycanhaveaminimumofoneshareholderwhomaybeanindividualoracorporateentity.ThereisnorestrictiononforeignequityparticipationinaSingaporecompany.

TheremustbeatleastonecompanysecretarywhoisanaturalpersonandhashisprincipaloronlyplaceofresidenceinSingapore.Thesoledirectorcannot,atthesametime,actasthecompanysecretary.EverycompanymusthavearegisteredofficeinSingaporetowhichcorrespondencemaybesent.

Thepre-incorporationproceduresfortheformationofapubliclimitedcompanyareessentiallysimilartothoseofaprivatelimitedcompany.TheadditionaldocumentstobefiledwithACRAareastatementinlieuofprospectusandastatutorydeclarationofcompliancebythedirectorthatthecompanyhasnotissuedaprospectus.

Inadditiontothee-notificationofincorporation,ACRAwillissueanotificationstatingthatthecompanyisentitledtocommencebusiness.

Apubliccompanyisrequiredtoholdastatutorymeetingwithinaperiodofnotlessthanonemonthandnotmorethanthreemonthsafterthedatewhenthecompanyisentitledtocommencebusiness.Acopyofthestatutoryreportandtheauditors’report,ifany,mustbelodgedwiththeRegistraratleastsevendaysbeforethedateofthestatutorymeeting.



ANNUAL reQUIreMeNTS For CoMPANIeSEverycompanymustappointoneormoreauditorstoreporttoitsmembersontheaccountsofthecompanyunlessitisdormantorasmallcompany.Adormantcompanyreferstoacompanywithnoaccountingtransactions.

Witheffectfrom3January2016,adormantcompanyisexemptfrompreparingfinancialstatementsif:a. Itisnotlisted(ornotasubsidiaryofalistedcompany);b. Dormantfortheentirefinancialyear;andc. TotalassetsofthecompanymustbelessthanS$500,000.Foraparentcompany,theconsolidatedtotal

assetsofthegroupatanytimewithinthefinancialyearmustnotexceedS$500,000.

Theintroductionofthe“smallcompany”conceptiseffectivefromthefinancialyearcommencingonorafter1July2015.Toqualifyasasmallcompany,acompanymustbeaprivatecompanythatfulfilsatleasttwoofthefollowingthreequantitativecriteriaineachoftheimmediatepasttwofinancialyears:

a. TotalannualrevenueofnotmorethanS$10millionb. TotalassetsofnotmorethanS$10millionc. Numberofemployeesofnotmorethan50

Ateachannualgeneralmeeting(AGM)ofthecompany,thedirectorsofthecompanyarerequiredtopresentanauditedorunaudited(asthecasemaybe)setoffinancialstatementsthatgivesatrueandfairviewofthecompany’saffairsintheprecedingfinancialyear.

ThefirstAGMofacompanymustbeheldwithin18monthsfromthedateofitsincorporationandthereafter,subsequentAGMsmustbeheldonceeverycalendaryearandnotmorethan15monthsafterthelastAGM.Theauditedorunauditedaccounts(asthecasemaybe)tobelaidbeforetheshareholdersattheAGMshouldbemadeuptoadatenotmorethansixmonthsbeforethedateoftheAGM.

AprivatecompanymaydispensewiththeholdingofAGMs.AllmatterstobedoneattheAGM,suchaslayingofaccountsandappointmentofauditors,canberesolvedordoneviawrittenresolutions.

Everycompanyisrequiredtofileitsannualreturnincludingwhereapplicable,itsauditedaccountsand/orfinancialstatementsinXBRLformatwithACRAwithin30daysafteritsAGM.

reGISTrATIoN oF A ForeIGN CoMPANYProceduresThefirststepintheregistrationofabranchofaforeigncompanyinSingaporeistoseekACRA’sapprovalofthenameofthecorporation.Oncethenameisapproved,theregistrationdocumentsandinformation,whenready,canbee-filedwithACRAtoregistertheSingaporebranchoftheforeigncompany.

UndertherequirementsoftheCompaniesAct,Cap.50,aSingaporebranchmusthaveatleastoneauthorisedrepresentativewhomustbeordinarilyresidentinSingapore.

TheauthorisedrepresentativeofaforeigncompanyisanswerablefortheexecutionofallactsandmattersrequiredtobedonebytheforeigncompanyundertheCompaniesAct,Cap.50.Theauthorisedrepresentativeisalsopersonallyliableforanypenaltiesimposedontheforeigncompanyforanycontravention.



Annual requirements for Foreign CompaniesAforeigncompanyisrequiredtolodgethefollowingdocumentswiththeRegistrar:▪ Financialstatementsmadeuptotheendofitsfinancialyeartogetherwithadeclarationintheprescribedform(i.e.headofficeaccounts);and

▪ AdulyauditedstatementshowingitsassetsusedinandliabilitiesarisingoutofitsoperationsinSingapore,adulyauditedprofit&lossaccountinrespectofitsoperationsinSingaporeandastatementofthenameoftheauditor(i.e.branchaccounts)

ThefinancialstatementsoftheSingaporebranchandthecompany(i.e.headoffice)aretobee-filedwithACRAwithin60daysafterthedateoftheAGMofthecorporation.IfthecompanyisnotrequiredtoholdanAGMinitscountryofincorporationandtoprepareitsbalancesheet,itshalle-filewiththeRegistrar,financialstatementsinsuchformandcontainingsuchparticularsasthedirectorsofthecompanywouldhavebeenrequiredtoprepareorobtainiftheforeigncompanywereapubliccompanyincorporatedinSingapore,withinacertainprescribeddeadline.Thecompanymay,however,applytotheRegistrarinwritingforanorderrelievingtheforeigncompanyfromtherequirementsoftheCompaniesAct,Cap.50relatingtotheformandcontentoftheaccountsorreport.

Inadditiontotheannualfilingrequirements,theSingaporebranchisrequiredtoe-fileanychangesintheparticularsoftheforeigncompanywithACRA,thatis,anychangeofdirectorsandtheirparticulars,changeofcapital,amendmentsofitsconstitutionorchangeofauthorisedrepresentative.

reGISTrATIoN oF A LIMITed LIABILITY PArTNerSHIP (LLP)ToregisteranLLP,thefollowinginformationmustbesubmittedtoACRAelectronically:▪ TheproposednameoftheLLP,itsproposedprincipalactivitiesandregisteredaddress▪ ThenameandpersonalparticularsofeachpartnerandiftheLLPpartnerisacorporateentity,thenameofthecompany,registrationnumber,dateofregistration,registeredoffice,countryofincorporation/registrationandpersonalparticularsoftheauthorisedrepresentative

▪ Thenameandpersonalparticularsoftheresidentmanager

AtleastoneresidentmanagerhastobeappointedandhisroleisprescribedbytheLLPAct.HeisanswerablefortheexecutionofallactsandmattersrequiredtobedonebytheLLPrelatingtoannualdeclarationofsolvency/insolvency,thepublicationofnameandlimitedliability,andtheregistrationofchangesintheparticularsoftheLLP.ThemanagerisalsopersonallyliableforallpenaltiesimposedontheLLPforanycontraventionofthosesectionsundertheLLPActunlesshesatisfiesthecourthearingthematterthatheshouldnotbeliable.Inaddition,themanagerisresponsibleforsubmissionoftheLLP’staxreturntotheInlandRevenueAuthorityofSingapore(IRAS).



CoMPArISoN oF SoLe ProPrIeTorSHIPS, GeNerAL PArTNerSHIPS, LLPs ANd CoMPANIeS

Sole Proprietorships

General Partnerships

LLPs Companies

Legislation BusinessRegistrationAct,Cap.32

BusinessRegistrationAct,Cap.32

LimitedLiabilityPartnershipsAct2005

CompaniesAct,Cap.50

Legalstatus Notalegalperson Notalegalperson Alegalperson(canenterintocontracts,holdproperty,sueandbesuedandexistirrespectiveofchangeofpartners)

Alegalperson(canenterintocontracts,holdproperty,sueandbesuedandexistirrespectiveofchangeofshareholders)

Numberofowners/shareholders

One Minimum–TwoMaximum–20(exceptforprofessionalfirms)

Minimum–TwoNomaximumnumberofpartners

Minimum–Onedirectorandoneshareholder(whomaybethesameperson)

Perpetualsuccession

No No Yes Yes

Liabilityofowners/shareholders

Soleproprietorhasunlimitedliabilities

Partnershaveunlimitedliabilities

Notpersonallyliablefortheconductofotherpartners,transactionsorliabilitiesoftheLLPunlessitisforhisownwrongfulactsornegligence

Limited–theshareholderisnotliableforthedebtsofthecompany

Internalstructure Completeflexibility Completeflexibility Completeflexibility Owner–managementdivide

Auditedaccountsrequirement

No No No Yes(exceptforexemptprivatecompanywithturnoverlessthanS$5millionordormantcompanyasdefinedintheAct)

Filingoffinancialstatements(and/orfinancialstatementspreparedinXBRLformat)withACRA

No No No Yes(withsomeexceptions)





LLPs Companies

Filingofannualreturn

No No No Yes

Annualdeclarationofsolvency

No No Yes Yes–anexemptprivatecompanyneedstoprovidesolvencystatement

CompliancewithFinancialReporting

Standards

No No No–Legislationdoesnotprescribetheaccountingstandardstobeused.TheLLPActmandatesproperrecordkeepingofaccountstoenablethetrueandfairviewofaccountstobepresented

Yes

Appointmentofamanagerwhois

ordinarilyresidentinSingapore

Yes Yes Yes NA

Appointmentofacompany

secretarywhoisordinarilyresidentin

Singapore

NA NA NA Yes

Incometax Wherethesoleproprietorisanindividual,hisincomefromthesoleproprietorshipwillbetaxedbasedonpersonalincometaxrate

Whereapartnerisanindividual,hisshareofincomefromthegeneralpartnershipwillbetaxedbasedonpersonalincometaxrate

Whereapartnerisanindividual,hisshareofincomefromtheLLPwillbetaxedbasedonpersonalincometaxrate

Corporatetaxrateof17%





LLPs Companies

Terminationofbusiness

Simple–fileanoticeofterminationofbusinesswithACRAuponpaymentofaprescribedfee

Simple–fileanoticeofterminationofbusinesswithACRAuponpaymentofaprescribedfee

Complex–mustundergolegalproceduresofwindingup;professionalchargeswillbeincurred;strikeoffapplicationisavailableiftheconditionsstipulatedbyACRAcanbemet

Complex–mustundergolegalproceduresofwindingup;professionalchargeswillbeincurred;strikeoffapplicationisavailableiftheconditionsstipulatedbyACRAcanbemet

Note: Information stated in the table above is correct as at the date of publication.

Contributed by:CorpServe8WilkieRoad#03-08WilkieEdgeSingapore228095Tel: +6565337600Fax:+6565947855Email:[email protected]:www.CorpServe.com.sg


mailto:Info%40CorpServe.com.sg%20?subject=http://www.CorpServe.com.sg


oFFICe SPACeSingaporehasatotalofficespacesupplyof84.41millionsquarefeet,with46%locatedwithintheCentralBusinessDistrict(CBD)precinct—thefinancialandcommercialhubofSingapore.Localandforeignbanks,multinationalcorporations,andestablishedprofessionalservicesfirmsareattractedtotheCBDprecinctbecauseofitsestablishedbusinessenvironmentandeasyaccesstopublictransportationandamenities.Apartfromthesekeysectors,technologyfirmshavealsobeenseenexpandingtheirfootprintwithintheCBDinrecentyears.

TomanagecongestionwithintheCBDprecinct,theSingaporegovernmenthasalsoannouncedplanstodevelopalternativebusinesshubsoutsidetheCentralAreasuchastheJurongLakeDistrict,PayaLebarCentralandBuonaVista.Suchbusinesshubslargelycatertocompanieswithdifferentbusinessneeds.

Apartfromconventionalofficespace,firmscanconsiderco-workingcentres2,whichhavebeenseenexpandingaggressivelywithintheCBD,alongOrchardRoadandeventheone-northprecinctinrecentyears.Thesespacesareaffordableoptionsforstart-upstobelocatedclosetopartnersandclientele.Co-workingcentresarealsopopularamongcorporationsthatneedtomanagemultidisciplinaryprojectteamsduetotheirflexibleoccupancytermsandinnovativeenvironments.

Duringyoursearchforofficepremises,youmaywishtotakenoteofthefollowing:

LocationThechoiceoflocationlargelydependsonindividualbusinessobjectives,needsandactivities.Forexample,financialinstitutionsgenerallychoosetostaywithinthefinancialcommunityatRafflesPlaceorMarinaBay,whileinsuranceandshippingcompaniesareclusteredaroundtheTanjongPagararea.

Arisingfromthegovernment’sinitiativetodecentralisethecommercialcentresinSingapore,newbusinessprecinctsarebeginningtodevelopinregionalcentresinrecentyears.TheMetropolis,atwin-towerofficedevelopmentwithintheBuonaVistabusinessprecinct,hasmanagedtoattracthigh-profileestablishedbusinesstenantstosetuptheirbasesthere.Meanwhile,manycompanieshavealsorelocatedtheirback-endoperationstobusinessparksinareassuchasMapletreeBusinessCityandChangiBusinessPark.

Otherconsiderationsincludecustomers’expectations,proximitytosuppliersandlocationofkeycompetitors.

AccessibilityEasyaccessibilitytopublictransport,especiallytrainservices,iscriticalinstaffrecruitmentandretention.Atthesametime,itisimportanttohaveeatingplacesandotheramenitieswithincloseproximitytobusinesslocations.

Building SpecificationsThefacadeofthebuildingisimportantforbusinesseswherecorporateimageiscritical.Thebuilding’spowersupplycapacity,airconditioningsystems,internetconnectivity,cablemanagement,securitysystem,carparkprovisions,andotherfeaturesarealsoimportantconsiderations.

1 Statistics of office space as at 2Q 20172 Co-working space is defined as a shared office environment that is not employed exclusively by a single organisation.

BUSINeSS & reSIdeNTIAL PreMISeS


TYPICAL oFFICe LeASe TerMSrentalTherentalrateisusuallyquotedasgrossrent,comprisingabaserentandservicechargepaidmonthlyinadvance.TherentalissubjecttotheGoodsandServicesTax(GST)thatistobebornebythetenant.

Service ChargeTheservicechargerangesfromS$1.00toS$1.40persquarefootandisgenerallyincludedinthegrossrent.Generally,servicechargecoversairconditioningduringnormalofficehours,buildingmanagementandmaintenanceofcommonareasinthebuilding.Thisissubjecttoadjustmentsiftherearechangesinthemaintenancecostandsuchincreasesarepayablebythetenants.

Security depositAsecuritydepositisusuallypayableuponconfirmationoftheleaseandrefundablewithoutinterestattheendofthelease.Thesecuritydepositistypicallyequivalenttothreemonths’grossrent,orequivalenttosixmonths’grossrentfortenantswithapaid-upcapitaloflessthansixmonths’grossrent.Theexactamountissubjecttonegotiation.Abanker’sguaranteemaybeusedasanalternativetoacashdeposit,subjecttonegotiation.

Lease PeriodTheleaseperiodistypicallythreeyearsorfiveyearswithanoptiontorenewatarenttobeagreedorreviewedaccordingtotheprevailingmarketrate.Formultiplefloortenanciesoranchortenants,longerleasesmaybenegotiated.

InsuranceTenantsarerequiredtotakeuppublicliabilityinsurance.

renovation depositTenantsarerequiredtoplacearenovationdepositwiththelandlordtocoveranydamagescausedtothecommonareasduringtherenovationperiod.Thisdepositisrefundedwithoutinterestuponcompletionoftherenovationworks.

Legal FeeItiscommonpracticethattenantsbearthelandlord’slegalcostsinrelationtothepreparation,negotiationandexecutionoftheleasedocument.

Stamp dutyStampdutyisataxoncommercialandlegaldocuments,whichrecordandgiveeffecttotransactions.Itispayablebythetenantsonleases.

Property TaxPropertytaxispayablebythelandlord.However,whenthereisanincreaseinthepropertytaxduringtheleaseterm,landlordsreservetherighttopassontheincreasetotenants.

rent-free and Fitting out PeriodsDependingonthesizeofthepremisesandprevailingmarketconditions,therent-freeandfittingoutperiodcanrangefromonemonthtothreemonths.Mostlandlordswillwaivethepaymentofservicechargeduringthisperiodalthoughtheremaybeexceptions.

UtilitiesTenantsarerequiredtobearthecostofmakingtheirownsupplyarrangementsandutilitiesconnections.



Air ConditioningOfficehoursairconditioningistypicallyprovidedwithintheservicechargewhereasafterofficehoursairconditioningischargeableonausebasis.Tappingthebuilding’sairconditioningsystemforauxiliaryairconditioningisalsochargeableonausebasis.Generally,thenormalofficehoursarefrom8amto6pmonweekdaysand8amto1pmonSaturdays.

ParkingSeasonparkinglotsaretypicallyallocatedtotenantsbasedonthetotalarealeasedatamonthlychargeofapproximatelyS$150toS$250forbuildingsoutsidetheCBDandS$300toS$500forbuildingsinsidetheCBD,excludingGoodsandServicesTax(GST).

MaintenanceTenantsaretypicallyresponsiblefortherenovation,repairandcleaningoftheunit’sinterior.Thelandlordcarriesoutmaintenanceandrepairsontheexteriorsoftheunit,includingthebuildingprovisionsandcommonareas.

reinstatementTenantsaretypicallyrequiredtorestoreandreinstatetheirofficepremisestoitsbareandoriginalconditionuponexpiryofthelease.

INdUSTrIAL SPACeIndustrialbuildingsinSingaporearecarefullyplannedandlocatedinmajorindustrialestatesspreadacrossthecountry.Itiscommonforindustrialspacesthatcatertocleanindustriestobelocatedinthecentralandfringeareas.Incontrast,industrialspacesthatsupportheavyindustrialusescanbetypicallyfoundintheoutskirtsofSingaporeasaformofpollutioncontrolmeasure.ExamplesofheavyindustrialestatesincludeJurong,whichisthelargestestatesituatedatthewesternpartoftheisland,SenokotothenorthandChangi,whichisneartheairportattheeasternendofSingapore.JurongTownCorporation(JTC)isthemaingovernmentagencyinSingaporetospearheadtheplanning,promotionanddevelopmentoftheindustriallandscape.TheHousing&DevelopmentBoard,whichalsomanagessomeoftheindustrialspacesinSingapore,willtransferitsindustrialportfolioentirelytoJTCbythefirstquarterof2018.

Therearerestrictionsandcovenantsforthetypeofindustrialactivitiesthatcanoperateineachestate.Generally,therearemorerulesandregulationsforindustrialspacescateringtoheavyindustries,comparedwithcleanindustries.Eachlocationhasitsadvantagesdependingonyourspecificneedsandtrade.Aprofessionalpropertyagent,suchasKnightFrank,shouldbeabletoassistyouinyoursiteselection.

TYPICAL INdUSTrIAL LeASe TerMSrentalTherentalrateisusuallyquotedasgrossrent,comprisingabaserentplusservicecharge.Rentispaidmonthly.GSTispayabletoallGST-registeredlandlords.Thebaserentmayvaryaccordingtothetypeofusage,locationandbuildingspecifications.

Service ChargeTheservicechargeusuallyrangesfromS$0.30toS$0.40persquarefootofthegrossrentfornon-airconditionedspacesandapproximatelyS$0.70toS$0.80persquarefootofthegrossrentforairconditionedspaces.Itcoversmanagementandmaintenanceofcommonareasinthebuilding.



Thisissubjecttochangesinthemaintenancefee.Anycostincreaseispayablebythetenant.

Security depositTheamountofsecuritydepositpayabledependsonthetotalleaseterm.Foraone-yearleaseterm,theamountofsecuritydepositwillbeonemonthgrossrent.Foratwo-yearleaseterm,twomonthsofsecuritydepositwillberequired.Insomecases,landlordsmayrequestuptosixmonthsofsecuritydeposit.Thesecuritydepositisrefundablewithoutinterestattheendofthelease,subjecttothetermsandconditionsofthelease.Abanker’sguaranteemaybeanalternativetocashdeposit,subjecttonegotiation.

Lease PeriodTheleaseperiodisusuallytwoorthreeyearswiththeoptiontorenewforanotheronetothreeyearsbasedonprevailingmarketrates.Forleaseofasizeablearea,landlordsareopentolongerleases,subjecttonegotiation.

Insurance and Fitting out depositThroughoutthedurationofthelease,thetenantwillberequiredtomaintainadequateinsurancecoverageforfireandperilprotection.Thepremiumdiffersfrombuildingtobuilding.

Itisalsocommonpracticefortenantstolodgearenovationdepositwiththelandlordtocoverthecostsofrectifyinganydamagecausedbythecontractortocommonareasofthebuilding.

Thedeposit,afterthedeductionofcostsforrectification(ifany),willberefundedtothetenantuponcompletionoffittingout.

renovation CostsRenovationcostsaredependentontheclients’specificationsandnatureofbusiness.Theycanvarysignificantlydependingonthenatureoftherenovationworks.However,theaveragerenovationcostsforancillaryofficespaceareasareasfollows:▪ BudgetRange:approximatelyS$60persquarefootarea▪ MediumRange:approximatelyS$80persquarefootarea▪ HighRange:approximatelyS$100persquarefootareaormore

Thesecostscomprisepartitions,falseceilings,airconditioning,simplefurniture,aswellasdesignerandprofessionalconsultantfees.Therenovationperiodmaylastfromtwoweeks(forspaceofabout1,000squarefeet)tothreemonths(forspaceofmorethan10,000squarefeet).

rent-free and Fitting out PeriodDependingonthesizeofthepremisesandprevailingmarketconditions,therent-freeandfittingoutperiodcanrangefromonetothreemonthsandissubjecttonegotiations.

Legal FeeItisadvisableforthetenanttoengagealawyerforadviceonalllegalmatterspertainingtothetenancyagreementandthecostisbornebythetenant.

Property TaxPropertytaxisusuallypayablebythepropertyowner.However,therearecaseswhereitispassedontothetenants.



Stamp dutyStampdutyisachargeleviedonalldocumentsthatareofficiallystampedbythegovernmentauthority.Itisapplicabletodocumentspertainingtotheleaseandnormallybornebythetenants.Thedutypayableisdependentonthesizeoftheleasetransaction.

Seller’s Stamp dutyOn11January2013,thegovernmentannouncedthataseller’sstampduty(SSD)wouldbeimposedonindustrialpropertiesthatareboughtoracquiredonandafter12January2013andsoldordisposedofwithinthreeyears.TheamountofSSDpayableshallbecomputedbasedonthefollowingrates:▪ Holdingperiodofoneyear:15%ofpriceormarketvalue,whicheverishigher▪ Holdingperiodoftwoyears:10%ofpriceormarketvalue,whicheverishigher▪ Holdingperiodofthreeyears:5%ofpriceormarketvalue,whicheverishigher

Industrialpropertiesacquiredbefore12January2013willnotbesubjecttoSSD.

UtilitiesFixturesforlightingsandwatersupply(ifany)withintheunitaretypicallyprovidedbyowners,butthetenantshallpayfortheutilitychargesofelectricityandwaterconsumedwithintheunit.Thetenantortheinteriordesignerwillberequiredtomakearrangementsfortheconnectionofutilities.Chargesincurredforconnectionandconsumptionarebornebythetenantthroughadirectaccountwiththeutilitiescompany.Utilitiessuchaselectricity,waterandgasareprovidedbySPServices.

TelecommunicationservicesareprovidedbycompaniessuchasSingtel,StarHubandM1.

ParkingSeasonparkinglotsareallocatedtotenantsaccordingtothetotalarealeasedatamonthlyseasonchargeofapproximatelyS$80toS$120formulti-tenantedfactories.Thisappliestostand-alonefactoriestoo.Carscanalsobeparkedinneighbouringbuildingsorpublicmulti-storeycarparks.Curb-sidecouponparkingisalsoavailableincertainareas.

MaintenanceTenantsareresponsiblefortherenovation,repairandcleaningoftheunit’sinterior.Maintenanceandrepairstotheexterioroftheunit,suchasthecommonareas,arecarriedoutbytheownersortheManagementCorporation(formulti-ownerbuildings).

reinstatementNormally,reinstatement(orrestoringtheunittoitsoriginalcondition)isrequireduponterminationofthelease.Thisistobediscussedandagreeduponbybothpartiesatthestartofthenegotiationandwillbeindicatedinthetenancyagreement.Itiscommonmarketpracticeforthetenanttorestoretheunittothebare/originalconditionunlessotherwisestated.

Assignment of LeaseAssignmentortransferofleasereferstothetransferofestates,rights,titleandinterestinthepropertyfromtheassignor(seller)totheassignee(buyer).Thispolicyensuresthatindustrialistswhohaveleasedindustriallandbasedontheirproposedbusinessplansremaincommittedforasustainedandreasonableperiodoftime,whilealsoallowinglesseestoexitongroundsofgenuinebusinessreasons.



Third Party Facility Assignment of LeasePreviously,newJTClessees(bothindustrialistsandthird-partyfacilityproviders)werenotallowedtoassignorselltheirpremisesuntiltheyhavefulfilledtheinvestmentperiod,whichistypicallythreeyears.Witheffectfrom15November2013,theAssignmentofLeasepolicywasrevisedtobetterrespondtotherecenttrendsintheindustriallandmarket.TherevisionsintheassignmentprohibitionperiodandminimumoccupationperiodareapplicabletoallnewandrenewedcontractsforJTCfacilitiesonlease,aswellasnewassignmentsissuedfrom15November2013.

Thenewchangesareasfollows:

Assignment Prohibition Period (i.e. duration in which lessee is not allowed to assign)

Third-partyfacilityproviderlesseesinnewthird-partybuild-and-leasecontracts

Duringinvestmentperiodandfiveyearsthereafter

Third-partyfacilityproviderswhohavepurchasedJTCfacilitiesfromthesecondarymarket(i.e.newassignmentcontracts)

Leaseswith≤30yearsremaining▪ fiveyearsfromdateoflegalcompletionofassignment

Leaseswith>30yearsremaining▪ 10yearsfromdateoflegalcompletionofassignment

Allthird-partyfacilityproviderlessees Leaseswith<fiveyearsremaining

Source: Jurong Town Corporation (JTC)

Minimum occupation Period and Gross Floor Area for Anchor TenantsWitheffectfrom15November2013,theminimumoccupationperiodfornewanchortenantsintheThird-PartyBuildandLeaseSchemehasalsobeenlengthenedtoatleastfiveyears,dependingontheleaseterm.

Thenewchangesareasfollows:

Minimum occupation Period(i.e. duration in which anchor

tenant is required to operate on the premises)

Minimum Gross Floor Area (GFA) (i.e. space that anchor tenants

are required to occupy)

Anchortenantsinnewthird-partybuild-and-leaseprogramme

Duringinvestmentperiodandfiveyearsthereafter

Collectively,tooccupyatleast50%GFAandeachtooccupyminimally1,500squaremetres

Anchortenantsinnewsale-and-leasebackprogramme

Leaseswith≤30yearsremaining▪ fiveyearsfromdateoflegalcompletionofassignment

Leaseswith>30yearsremaining▪ 10yearsfromdateoflegalcompletionofassignment

Collectively,tooccupyatleast50%GFAandeachtooccupyminimally1,500squaremetres

Source: Jurong Town Corporation (JTC)



reSIdeNTIAL ACCoMModATIoNTheresidentialmarketinSingaporeisverydiverseandoffersavarietyoflifestyleoptionsrangingfromcityandsuburbanlivingtohigh-risehousingandlandedhomes.Thesepresentmanychoicesthatcatertoyoungworkingprofessionalsaswellasfamilies.

MostcondominiumsinSingaporeareequippedwith24-hoursecurityandfacilitiessuchasgyms,swimmingpools,barbecuepits,andplaygrounds.Landedresidentialpropertiesarealsoavailableforlease,butwillnothavesuchfacilities.Therearenorestrictionsonforeignownershipofcondominiums.However,thepurchaseoflandedpropertiesbyaforeigner(individualorcompany)issubjecttowrittenpermissionfromtheLandDealingsApprovalUnit.

Primeresidentialdistricts9,10and11remainamongthetopchoicesforforeigninvestorsandexpatriatesrelocatedtoSingapore.AttractionsinthesedistrictsincludetheprimeshoppingbeltofOrchardRoad,famousinternationalandlocalschools,aswellasHollandVillageandDempsey,whicharethefavouriteF&Benclavesforbothexpatriatesandlocalsalike.Overtheyears,theMarinaBay,ShentonandTanjongPagarareas,whicharelocatedwithintheCentralBusinessDistrict(CBD),havegrowninpopularitylargelyduetogovernmentinitiativesinenhancingtheattractivenessoftheCBDasalive,workandplayarea.ThelastfewyearsalsosawthecompletionofanumberofluxurycondominiumsandungatedlandedhomessituatedinSentosa,anislandapproximately20minutes’drivefromtheCBD.

ForeIGNerS reNTING A HoMe IN SINGAPoreLease PeriodTheleaseperiodforresidentialunitsinSingaporeisusuallytwoyearswithanoptiontorenew.Therentfortheinitialleasetermisusuallyfixedandwillberenegotiatedatprevailingmarketrateswhentheoptiontorenewisexercised.Leasesforaone-yearperiodareoccasionallyavailable.

Adiplomatic(orbreaklease)clauseisincludedintheleaseandexercisableafter12monthsofatwo-yearlease.Forleaseperiodsofoneyear,landlordsprefernottohaveadiplomaticclausealthoughincertaincases,itispossibletonegotiateforasix-monthdiplomaticclause.Forpre-terminationofthelease,thetenantisrequiredtogivetwomonths’noticeorpaytwomonths’rentinlieutothelandlord.

rentalTherentalisusuallyquotedasgrossrental,whichcomprisestherent,maintenancefeeandfixtures&fittings.Themarketstandardforprovisionoffixtures&fittingsincludesafullyfittedkitchen(Hood,hob,fridge,washer,dryerandoven.Microwaveanddishwasherareoptional),lights,curtains,wardrobesandawaterheater.Theinclusionofsoftfurnishingsissubjecttonegotiation.RentisusuallypaidonamonthlybasisandtheprevailingGSTrateof7%ispayablebythetenantifthelandlordisGST-registered.

Security depositAgrossrentoftwomonthsispayablebythetenanttothelandlorduponendorsementoftheTenancyAgreement.Thisisrefundable(interest-free)tothetenantuponterminationoftheleaseandsubjecttodueperformanceofthetermsandconditionsoftheleasebythetenant.Abanker’sguaranteeisnotacceptable.



UtilitiesUtilitycharges,suchaselectricity,waterandgas,arebornebythetenant.TheserviceproviderfortheseutilitiesisSPServices.

Car ParkMostresidentialdevelopmentsprovideforcarparking.However,somemixedresidentialdevelopmentswithretail/officespacemayhavelimitedcarparkingspaceavailableforresidents.

Stamp duty for LeaseStampdutyispayablebythetenant.Witheffectfrom22February2014,thestampdutyforleasewithanaverageannualrentaboveS$1,000haschanged.Detailsofthestampdutyareasfollows:

Before 22 February 2014:

Lease / Tenancy rates

(a)WhereaverageannualrentdoesnotexceedS$1,000 Exempted

(b)WhereaverageannualrentexceedsS$1,000:

ForeveryS$250orpartthereofoftheaverageannualrentforleaseterm:

Uptooneyear S$1

Morethanoneyearanduptothreeyears S$2

Morethanthreeyearsorforanindefiniteterm S$4

Source: Inland Revenue Authority of Singapore (IRAS)

on and after 22 February 2014:

Lease / Tenancy rates

(a)WhereaverageannualrentdoesnotexceedS$1,000 Exempted

(b)WhereaverageannualrentexceedsS$1,000:

Leaseperiodoffouryearsorless0.4%oftotalrentfortheperiodofthelease

Leaseperiodofmorethanfouryearsorforanindefiniteterm0.4%offourtimestheaverageannualrentfortheperiodofthelease

Source: Inland Revenue Authority of Singapore (IRAS)

Legal FeeItisadvisablefortenantstoengagealawyertoadvisethemonalllegalmatterspertainingtothetenancyagreementandthecostisbornebythetenant.



ForeIGNerS PUrCHASING PrIVATe ProPerTY IN SINGAPoreForeign ownership of residential Properties in SingaporePublicHousingFlatsForthepurchaseofpublichousing,certainregulationsexistforforeignhomebuyers.HDBflatsaresubsidisedpublichousingthatforeignersaregenerallynoteligibletopurchase.Thereare,however,exceptionsunderthefollowingcircumstances:▪ TopurchaseanewHDBflat:

• AtleastoneSingaporeancitizeninthefamilynucleus▪ Topurchaseaflatontheresalemarket:

• AtleastoneSingaporeancitizeninthefamilynucleus• AtleasttwoSingaporepermanentresidentsinthefamilynucleus,orengagedtobemarried

▪ TopurchaseECs,foreignersmaybuyresaleECsintheopenmarketfromtheeleventhyearaftercompletionoftheECprojectwhenitisprivatised.

PrivatePropertiesUndertheResidentialPropertyActof1973,aforeignpersoncannotacquireorpurchaserestrictedresidentialpropertyunlessheobtainspriorapprovaloftheMinisterofLaw.Restrictedpropertyincludes:▪ Vacantresidentialland▪ Landedpropertyi.e.detachedland,semi-detachedhouse,terracehouse(includinglinkedhouseortownhouse)

▪ LandedpropertyinstratadevelopmentsthatarenotapprovedcondominiumdevelopmentsunderthePlanningAct

However,aforeignpersonisnotrestrictedfromacquiringthefollowing:▪ Anyapartmentwithinabuilding▪ AnyunitinanapprovedcondominiumdevelopmentunderthePlanningAct▪ Aleaseholdestateinrestrictedresidentialpropertyforatermnotexceedingsevenyears,includinganyfurthertermthatmaybegrantedbywayofanoptionforrenewal

InlightofvariousmeasuresrestrictingforeignersfrompurchasingpropertiesinSingapore,apopularhotspothasemerged:SentosaCove.SinceAugust2004,foreignershavebeenallowedtopurchaselandedpropertiesonSentosaCove.Suchpurchasesarefurtherfacilitatedbytheabsenceofanyminimumoccupationperiodimposedontheforeignbuyer.Nevertheless,suchpurchaseswouldbesubjecttorestrictions–thepropertymustbeowner-occupiedandtheforeignhomebuyerisonlyallowedtoownonerestrictedresidentialpropertyatanyonetimeinSingapore.TheseforeignhomebuyersalsohavetoseekapprovalfromtheLandDealings(Approval)UnitofSingaporeLandAuthorityfortheirSentosaCovepurchases,althoughtheprocessisquickercomparedwithconventionalapprovals.

LoansAsatJune2013,theMonetaryAuthorityofSingapore(MAS)introducedaTotalDebtServicingRatio(TDSR)framework,witharefinementofLoan-to-Value(LTV)ruleson11March2017.ThedebtservicingframeworkappliestoborrowersseekingtotakepropertyloansorcreditfacilitiessecuredbypropertyfromanybankinSingapore.



Thedetailsofthenewframeworkareasfollows:

Framework requirements details

Total debt Servicing ratio (TdSr)

Overview

▪ TheTDSR,givenbytheformulabelow,cannotexceed60%.

MonthlytotaldebtobligationGrossmonthlyincome

▪ Appliestoborrowerswhoareapplyingforcreditorre-financingfacilitiesforthepurchaseofpropertyorwherethefacilityisotherwisesecuredbyproperty

▪ CoverspropertiesinandoutsideofSingapore▪ DoesnotapplytomortgageequitywithdrawalloanswithLoan-to-Value(LTV)ratioequaltoorbelow50%

Monthlytotaldebtobligations

▪ Takeintoconsiderationborrowers’outstandingpropertyandnon-propertydebtobligationswhencomputingmonthlytotaldebtobligations

▪ Applyaspecifiedmedium-terminterestrateof3.5%forhousingloansand4.5%fornon-residentialpropertyloan,ortheprevailingmarketinterestrate,whicheverishigher,tothepropertyloanthattheborrowerisapplyingforwhencalculatingtheTDSR

Grossmonthlyincome

▪ GrossmonthlyincomeexcludingCPFemployercontribution▪ 30%‘haircut’forvariableincome,e.g.bonuses,commissions,allowances,rental

▪ Canincludecertaineligiblefinancialassets,subjecttohaircutsandanamortisationscheduleover48monthsforconversioninto“incomestreams”

Exemption

▪ Re-financingloanbyborrowerswhoareowneroccupiersand:• Theoptiontopurchasewasgrantedpriorto29June2013• Theresidentialpropertyistheonlypropertyownedbytheborrower

• Nootheroutstandingpropertyloanintheborrower’sname▪ Bridgingloans,underwhichanybalanceoutstandingshallberepaidwithinsixmonths,areexemptedfromtheTDSRrequirements

▪ ExcludemonthlyrepaymentofexistingresidentialpropertyloanswhencomputingtheTDSRfortheHDBflatorexecutivecondominiumtobeboughtdirectlyfromdeveloper

x100%



Framework requirements details

Application of Loan-to-Value Limits

Mortgagorofpropertyloans

▪ Borrowersnamedonapropertyloanarealsotobethemortgagorsoftheresidentialpropertyforwhichtheloanistaken

▪ BorrowersaresubjecttoTDSRassessment

Guarantorofpropertyloans

“Guarantors

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