Enhancing National Policies
This section describes the most recent investment-specific and investment-related measures per ASEAN member state.
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Singapore
Year Category Sub Category Description 2013 Singapore Investment Climate Singapore’s investment measures Singapore’s pro-business, pro-foreign investment and export-oriented economic policy has helped to encourage FDI to the country. In 2012, the World Economic Forum ranked Singapore first in its Global Enabling Trade Report, for having the most open economy for international trade and investment. Singapore has also topped the World Bank’s Doing Business rankings for the 7th consecutive year since 2007. Singapore regularly reviews its regulations and actively seeks private sector feedback to facilitate business and create an environment that is conducive to economic enterprise.
Singapore’s investment measures, including investment laws, regulations, procedures and administrative rulings of general application, are promptly published or made available online to enable interested persons and other countries to become acquainted with them. Apart from regulatory requirements in some sectors, both local and foreign investors are subject to the same basic laws. Investment measures generally apply to all investors irrespective of nationality.
To date, Singapore has signed investment guarantee agreements (IGAs) with 42 countries. Besides bilateral IGAs, the Multilateral Investment Guarantee Agency (MIGA) which Singapore joined in 1998 offers insurance coverage at the multilateral level against certain non-commercial risks for eligible investors for a premium based on the country and project risk.
To mitigate the effects of international double taxation on its residents engaging in cross-border trade and investment activities, Singapore has concluded agreements for the Avoidance of Double Taxation (DTAs) on a bilateral basis with many countries. To date, Singapore has signed 74 comprehensive DTAs, of which 71 have entered into force.Regulatory reforms Administrative Procedures and Requirements (i). Removal of requirement for law firms to forward the stamp duty certificates for documents lodged electronically at the Singapore Land Authority (SLA). As of 6 Mar 2012, law firms do not have to forward the stamp duty certificate to the SLA as proof that the stamp duty has been paid.
The stamp duty certificate reference number would instead be extracted from SLA’s eLodgment system and transmitted to the Inland Revenue Authority of Singapore (IRAS) daily for the system to verify that stamp duty has been paid. This system verification saves time and effort for lawyers and frees SLA officers to perform other manual checks.
(ii). Single transfers of property made for value and which are in order for registration will be registered on the day of lodgment at no extra cost. As of 1 Apr 2013, the SLA has enabled same-day registration of single transfers of properties made for value on the day of lodgment itself with no extra costs. This shortened the time required for registration of transfers.
(iii). Less restrictive and prescriptive rules and regulations for companies. Following the review of the Companies Act, Singapore’s Ministry of Finance (MOF) indicated that it would introduce amendments and changes to the Act which are more business-friendly. These include a removal of obsolete requirements such as (a) the repeal of Section 170 under the Act requiring approval for assignment of office of director or manager; and (b) the removal of a mandatory maximum age limit of 70 years for directors.
In addition, MOF would also be introducing a framework to facilitate electronic communications by companies. Under the proposed changes, companies would be allowed to use electronic modes for transmissions of certain notices and documents, such as notices of special resolutions, without the need to send physical copies. This would be subject to consent from its shareholders either through their agreement to amend the company Articles’ provisions (implicit consent) or election to receive electronic copies of notices and documents (deemed consent).3.1.2 Transparency (i). Reflect void area in Subsidiary Certificates of Title (SSCT) for strata lots in addition to total strata area. As of 1 Aug 2012, void areas surveyed in strata developments by registered surveyors are reflected in the SSCT issued by the SLA. This would enable prospective buyers to know the actual physical size of a strata lot.
(ii). Greater clarity in the provisions under the Companies Act. The revised Companies Act is intended to provide greater clarification on various issues of concern to the relevant stakeholders, where the Act is currently silent on or does not provide clear provisions. For instance, some of the revisions are intended to provide greater clarity on the following matters: (a) a person who controls the majority of the directors is to be considered a director; (b) a director may resign by giving the company written notice of resignation unless otherwise provided for in the company’s Articles; and (c) explicit provision for a company to use its share capital to pay for expenses, brokerage or commissions incurred in an issue or buyback of shares. Additionally, the revised Act would be providing default positions under the Act unless otherwise provided for in the company’s Articles, such as (a) appointment of director can be made by ordinary resolution passed at a general meeting; and (b) a private company may by ordinary resolution remove any director.2014 Singapore Investment Climate Singapore’s investment measures Singapore’s pro-business, pro-investment and export-oriented economic policy has helped to encourage FDI to the country. In 2014, the World Economic Forum ranked Singapore first in its Global Enabling Trade Report, for having the most open economy for international trade and investment. Singapore has also topped the World Bank’s Doing Business rankings for the 8th consecutive year since 2007. Singapore regularly reviews its regulations and actively seeks private sector feedback to facilitate business and create an environment that is conducive to economic enterprise.
Singapore’s investment measures, including investment laws, regulations, procedures and administrative rulings of general application, are promptly published or made available online to enable interested persons and other countries to become acquainted with them. Apart from regulatory requirements in some sectors, both local and foreign investors are subject to the same basic laws. Investment measures generally apply to all investors irrespective of nationality.
As of July 2014, Singapore has over 40 investment guarantee agreements (IGAs) in force. Besides these IGAs, the Multilateral Investment Guarantee Agency (MIGA) which Singapore joined in 1998 offers insurance coverage at the multilateral level against certain non-commercial risks for eligible investors for a premium based on the country and project risk.
To mitigate the effects of international double taxation on its residents engaging in cross-border trade and investment activities, Singapore has concluded bilateral agreements for the Avoidance of Double Taxation (DTAs) with more than 70 countries.Recent Improvements to Singapore’s investment regime Update on the review of the Companies Act The review of the Companies Act was aimed to build on an efficient and transparent corporate regulatory framework which would support Singapore’s growth as a global hub for businesses and investors. Expected improvements include (i) revisions to the administrative procedures and requirements; and (ii) greater transparency in information provided to investors. Since the launch of the review in 2012, the Ministry of Finance has completed its public consultation exercise in 2013 on the draft Companies (Amendment) Bill, as well as new areas of the Companies Act. The Companies (Amendment) Bill is expected to be passed in 2014. Other Improvements In June 2013, the Singapore Land Authority (SLA) implemented the “Paperless Title” scheme where title in respect of properties mortgaged to participating financial institutions will not be printed upon registration of mortgages in their favour. Under this new scheme, financial institutions will no longer have to keep hardcopy title documents, thus saving on storage and related manpower costs. In addition, there will no longer be the need for financial institutions and their solicitors to apply for replacement titles in the event that they lose their titles. New Investment-related Agreements For the period under review from 2013 to 2014, Singapore signed an IGA with Colombia in July 2013 and concluded an IGA negotiation with Burkina Faso in April 2014. The Agreement between Singapore, and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (ASTEP) was signed in Singapore in November 2013 and came into force on 19 April 2014. Singapore is negotiating with the EU to conclude the investment chapter in the EU-Singapore FTA. Singapore is also currently engaged in FTA negotiations with Turkey, the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP) 2015 Singapore Investment Climate Singapore’s investment measures Singapore’s pro-business, pro-investment and export-oriented economic policy has helped to encourage FDI into the country. In 2014, the World Economic Forum ranked Singapore first in its Global Enabling Trade Report, for having the most open economy for international trade and investment. Singapore has also topped the World Bank’s Doing Business rankings for the 9th consecutive year since 2007. Singapore regularly reviews its regulations and actively seeks private sector feedback to facilitate business and create an environment that is conducive to economic enterprise.
Singapore’s investment measures, including investment laws, regulations, procedures and administrative rulings of general application, are promptly published or made available online to enable interested persons and other countries to become acquainted with them. Apart from regulatory requirements in some sectors, both local and
foreign investors are subject to the same basic laws. Investment measures generally apply to all investors irrespective of nationality.
As of May 2015, Singapore has over 20 free trade agreements (and equivalent) and 41 Bilateral Investment Treaties (BITs) in force. The Multilateral Investment Guarantee Agency (MIGA), which Singapore joined in 1998, also offers insurance coverage at the multilateral level against certain non-commercial risks for eligible investors for a premium
based on the country and project risk.
To mitigate the effects of international double taxation on its residents engaging in cross-border trade and investment activities, Singapore has bilateral agreements for the Avoidance of Double Taxation (DTAs) with more than 70 countries in force.Recent Improvements to Singapore’s investment regime Update on the review of the Companies Act The Companies Act was amended in Oct 2014 to reduce regulatory burden on companies, provide for greater business flexibility and improve the corporate governance
landscape in Singapore. This covers the largest number of proposed reforms since the enactment of the Companies Act in 1967. Significant amendments include: (i) introducing a
“small company” concept to determine audit exemption, which will reduce compliance costs for at least 25,000 small companies; (ii) removing the one-share-one-vote restriction
for public companies, which will give about 800 non-listed public companies greater flexibility in raising capital, and give investors a wider range of investment opportunities; (iii) requiring a foreign company to appoint at least one locally-resident agent/ authorised representative instead of the current two; (iv) introducing a new multiple-proxies regime, which will allow for more active participation at general meetings by indirect investors; and (v) extending disclosure requirements currently applicable to directors of non-listed companies to Chief Executive Officers (CEOs) of such companies. The proposed amendments will be implemented in two phases: (i) first phase beginning on 1 Jul 2015 for about 40% of the over 200 amendments; and (ii) second phase beginning in Q1 2016 for the remaining amendments.Amendment of the Land Titles Act Effective 15 Aug 2014, the Singapore Land Authority (SLA) introduced several legislative changes to the Land Titles Act which sought to improve the laws on land administration to provide greater clarity, consistency and greater operational efficiency. For example, the provisions relating to the surrender and reissuance of title to land (whether registered or unregistered, whether subject to mortgage or charge, and whether of the same or different tenure) have been streamlined and simplified to a single process. Other Improvements In August 2014, as part of SLA’s on-going process review to better serve their customers, SLA dispensed with the requirement of a statutory declaration to correct erroneous particulars such as names, ID number etc., in the land register. This simplified
process reduces cost for property owners.
Following the successful completion in May 2014 of the pilot trial of the Paperless Titles project with DBS Bank Ltd, SLA has now extended the Paperless Titles Scheme to all financial institutions and statutory boards. To-date, there are four financial institutions and
two statutory boards on the scheme. Several other financial institutions have also expressed interest in joining the scheme.New Investment-related Agreements For the period under review from 2014 to May 2015, Singapore signed Bilateral Investment Treaties with Burkina Faso and Cote d’Ivoire in August 2014. The Agreement between Singapore, and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (ASTEP) came into force on 19 Apr 2014. The Investment Protection Chapter of the EU-Singapore FTA (EUSFTA) was initialed in May 2015. Singapore is currently engaged in the following FTA negotiations: an FTA with Turkey; the Trans-Pacific Partnership (TPP) Agreement; and the Regional Comprehensive Economic Partnership (RCEP) Agreement. 2016 Singapore Investment Climate Singapore’s investment measures Singapore continues to maintain a pro-business and pro-investment economic policy. This has encouraged foreign direct investment (FDI), a key pillar of Singapore’s
overall economic strategy. According to the World Bank’s Doing Business 2016 Report, Singapore ranked as the easiest country worldwide in which to do business, topping the rankings for the 11th consecutive year. Meanwhile, in 2015, the World Economic Forum continued to rank Singapore at the top of its Global Enabling Trade Index for having the most open economy for international trade and investment, and second overall most competitive economy globally.
FDI inflows into Singapore have remained consistently stable in recent years, with total stock FDI in Singapore’s corporate sector reaching SG$1,025 billion at the end of 2014,an increase of 18.0 per cent from 2013. Direct Equity Investment in 2014 comprised SG$939 billion or 92 per cent of total FDI in Singapore, with Net Lending from Foreign Direct
Investors accounting for the remaining SG$86 billion or 8%.
Singapore continues to adopt investment-friendly public policies. This includes upholding a strong and transparent legal framework – crucial for protecting contractual agreements. This has contributed to a stable and predictable investment climate. Judicial proceedings affecting foreign investors in Singapore are wholly independent and the
government does not interfere with any judicial proceedings or decisions made. Singapore’s open investment regime does not require approval or a screening system for FDI. Apart from regulatory requirements in selected sectors, foreign investors are subject to the same basic laws as local investors, and enjoy no restrictions on reinvestment or repatriation of earnings or capital. Foreign investors are also not required to enter into joint ventures.
In line with promoting a favourable and conducive investment climate, transparency and ensuring ease of doing business remain important for Singapore. Singapore’s investment measures, including investment laws, regulations, procedures and administrative rulings of general application, are promptly published or made available online to enable interested persons and other countries to become acquainted with them. The application for, and obtaining licenses and permits (including multiple licenses), are transparent and easily accessible via the online licensing portal i.e. the Online Business Licensing Service (OBLS).
As of May 2016, Singapore has 41 investment guarantee agreements (IGAs) in force. Besides these IGAs, the Multilateral Investment Guarantee Agency (MIGA) which Singapore joined in 1998 provides political risk insurance and credit enhancement guarantees against certain non-commercial risks for eligible investors for a premium based on country and project risk.
To mitigate the effects of international double taxation on its residents engaging in cross-border trade and investment activities, Singapore has bilateral agreements for the Avoidance of Double Taxation (DTAs) with 80 countries, in force.Recent Improvements to Singapore’s investment regime Update on the review of the Companies Act The Companies Act was amended in Oct 2014 to reduce the regulatory burden on companies, provide for greater business flexibility and improve the corporate governance landscape in Singapore. Significant amendments are as follows: (i) introduced a “small company” concept to determine audit exemption, which reduced compliance costs for at least an additional 25,000 small companies; (ii) removed the one-share-one-vote restriction for public companies, giving about 800 non-listed public companies greater flexibility in raising capital, and gave investors a wider range of investment opportunities; (iii) required a foreign company to appoint at least one locally-resident agent/ authorised representative instead of the current two; (iv) introduced a new multiple-proxies regime, allowing for more active participation at general meetings by indirect investors; and (v) extending disclosure requirements currently applicable to directors of non-listed companies to Chief Executive Officers (CEOs) of such companies. The amendments were implemented in two phases: (i) the first phase beginning on 1 July 2015 for about 40% of the over 200 amendments; and (ii) the second phase beginning on 3 January 2016 for the remaining amendments.
Foreign investors that choose to incorporate a Singapore company under the Companies Act will benefit from the amendments under the Company (Amendment) Act 2014. Foreign companies that seek to register or are already registered with the Accounting and Corporate Regulatory Authority (ACRA) under the Companies Act also benefit from amendments to the Company (Amendment) Act 2014, including reduced compliance costs, and an option for directors and authorised representatives of foreign companies to indicate their alternate address instead of a residential address.Update on the Review of the Business Registration Act The Business Registration Act was repealed and replaced with the new Business
Names Registration Act, which took effect on 3 Jan 2016. The amendments have simplified
the process for the registration of persons and their business names, and reduced the
regulatory burden on business owners. Significant amendments are as follows: (i) exempted
individuals who conduct businesses in Singapore under only their full names from
registering with the ACRA; and (ii) allowed registration/renewal of business names for up to
three years instead of just one year.Improvements to administrative procedures and requirements The BizFile4, an online filing and information retrieval system operated by ACRA, was
revamped and replaced by Bizfile+ on 3 Jan 2016. Significant improvements include (i) the
streamlining of fee structure where over a hundred ad hoc transactions, previously charged
under a pay-per-use model, are now free of charge; and (ii) the introduction of two
additional services – Trade mark registration with Intellectual Property Office of Singapore
(IPOS) and online licence application with LicenceOne. With these two additional services,
business owners can apply for Trade mark or licences with government agencies
expeditiously and with less hassle.
With the BizFile+, transactions have also been redesigned to streamline processes.
Most transactions related to updating information on individuals and entities, are now
consolidated to simplify the process. New features of the BizFile+ portal also include a guided assistant for users to explore the characteristics of different types of business
entities and a personalized dashboard which provides a summary view of all transactions
and statuses.
To facilitate the adoption of solar energy through market and regulatory framework
enhancements, the Energy Market Authority (EMA) of Singapore has implemented a series
of pro-business enhancements following a review of the solar regulatory framework.
Enhancements include (i) the launch of the Central Intermediary Payment (CIS) scheme; (ii)
the streamlining of metering requirements for solar photovoltaic (PV) owners (1MWac and
above); and (iii) the addition of a one-stop solar PV portal for consumers on Singapore
Power’s website, which was implemented in 2015. Electricity consumers, including
businesses, can now take advantage of this suite of measures when making investment
decisions on solar generation in Singapore. A key intended outcome is to facilitate the entry
of additional solar generation in Singapore by reducing the cost of deployment in Singapore
and reducing the administrative requirements for such assets to be integrated into the
electricity market in Singapore.
Following the successful completion in May 2014 of the pilot trial of the Paperless
Titles project with DBS Bank Ltd, the Singapore Land Authority (SLA) has now extended the
Paperless Titles Scheme to all financial institutions and statutory boards. To-date, there are
now six financial institutions and two statutory boards (Housing & Development Board and
the Central Provident Fund Board) on the scheme. Several other financial institutions have
also expressed interest in joining the scheme. With the extended Paperless Titles Scheme,
more financial institutions are able to save on storage and manpower costs as they no
longer have to safekeep title documents. Financial institutions can also benefit from the
removal of the risk of loss of titles, thus eliminating the costs of obtaining replacement
titles.
In August 2015, the Land Dealings Approval Unit (LDAU) of SLA also launched an e-
Application portal for foreign persons to apply, via the Internet, for approval to purchase
restricted residential property as defined under the Residential Property Act. The final
phase, which will apply to property developers, will be launched at the end of 2016. This
portal has streamlined the LDAU’s internal work processes and applicants to submit
applications quickly and efficiently.Other Improvements Singapore has progressively opened the retail electricity market to competition by
lowering contestability thresholds. In July 2015, EMA further lowered the contestability
threshold from 4,000 kWh to 2,000 kWh. This empowered more consumers with the option
to buy electricity packages with different prices and services from a variety of retailers,
instead of only being able to purchase electricity from Singapore Power Services (SPS) at the
regulated tariff. 5 EMA also proactively reaches out to businesses to raise their awareness of
retail contestability.Transparency of information for foreign investors As part of Singapore’s efforts to proactively share energy data and meet users’
needs, EMA released the ‘Singapore Energy Statistics report in June 2015 (4 months ahead
of schedule) in order to meet industry’s increasing demands for timely energy statistics. The
energy statistics closely follows the recommendations of the International Energy Agency
(IEA) and United Nations Statistics Division (UNSD). The report can be downloaded from the
Singapore government’s first-stop data hub.6 Thus far, there has been positive reception
from key International Organisations (IOs) such as IEA, Asia Pacific Energy Research Center
(APERC) and ASEAN Center of Energy (ACE) as well as industry. Positive feedback has also
been received for EMA’s Energy Dashboards, which allows for user-interactivity to better
understand Singapore’s energy landscape through statistics.
In addition, EMA has sought industry feedback on a proposed suite of measures to
facilitate power generation investments for the future. These include having EMA
periodically put out more information to aid investment decisions; enhancements to the
regulatory framework governing licensees’ generation plans; and a land allocation
framework for new generation assets. In December 2015, EMA released a consultation
paper on “Preparing for future power generation investments in Singapore”. EMA is
currently reviewing the feedback received during the consultation before finalising the next
steps. The intended outcome of these measures is to provide more information on the
outlook for power generation investors in Singapore to make informed decisions, thereby
providing more certainty for industry. The proposed land allocation framework also aims to
reduce the entry barriers for new investors by streamlining the processes required for such
investors, therefore facilitating investment decisions.Update on Singapore’s Investment-related Agreements Between 2015 to May 2016, Singapore signed two Free Trade Agreements (FTAs):
the Turkey-Singapore Free Trade Agreement (TRSFTA) in November 2015 and the Trans-
Pacific Partnership (TPP) Agreement in February 2016 – both of which include an investment
chapter. In addition, Singapore also recently completed IGA negotiations with Nigeria and
Rwanda in May and June 2016 respectively. Singapore is currently engaged in the following FTA and IGA negotiations: the Regional Comprehensive Economic Partnership (RCEP)7
Agreement, the ASEAN-Hong Kong Free Trade Agreement, and BITs with Tanzania,
Mozambique, Kenya Qatar, Maldives and Kazakhstan.2017 Singapore’s Investment Climate Singapore’s investment measures Singapore continues to maintain a pro-business and pro-investment economic policy. This has encouraged foreign direct investment (FDI), a key pillar of Singapore’s overall economic strategy. According to the World Bank’s Doing Business 2017 Report, Singapore ranked as the second easiest country worldwide in which to do business. Meanwhile, in 2016, the World Economic Forum continued to rank Singapore at the top of its Global Enabling Trade Index for having the most open economy for international trade and investment for the fifth consecutive time, and second overall most competitive economy globally.
FDI inflows into Singapore have remained consistently stable in recent years, with total stock FDI in Singapore’s corporate sector reaching SG$1,255.5 billion at the end of 2015, an increase of 12.8 per cent from 2014. Direct Equity Investment in 2015 comprised SG$1,151.8 billion or 92 per cent of total FDI in Singapore, with Net Lending from Foreign Direct Investors accounting for the remaining SG$103.8 billion or 8%.
Singapore continues to adopt investment-friendly public policies. This includes upholding a strong and transparent legal framework – crucial for protecting contractual agreements. This has contributed to a stable and predictable investment climate. Judicial proceedings affecting foreign investors in Singapore are wholly independent and the government does not interfere with any judicial proceedings or decisions made. Singapore’s open investment regime does not require approval or a screening system for FDI. Apart from regulatory requirements in selected sectors, foreign investors are subject to the same basic laws as local investors, and enjoy no restrictions on reinvestment or repatriation of earnings or capital. Foreign investors are also not required to enter into joint ventures.
In line with promoting a favourable and conducive investment climate, transparency and ensuring ease of doing business remain important for Singapore. Singapore’s investment measures, including investment laws, regulations, procedures and administrative rulings of general application, are promptly published or made available online to enable interested persons and other countries to become acquainted with them. The application for, and obtaining licenses and permits (including multiple licenses), are transparent and easily accessible via the online licensing portal i.e. LicenceOne.
As of Jun 2017, Singapore has 40 investment guarantee agreements (IGAs) in force. Besides these IGAs, the Multilateral Investment Guarantee Agency (MIGA) which Singapore joined in 1998 provides political risk insurance and credit enhancement guarantees against certain non-commercial risks for eligible investors for a premium based on country and project risk.
To mitigate the effects of international double taxation on its residents engaging in cross-border trade and investment activities, Singapore has bilateral agreements for the Avoidance of Double Taxation (DTAs) with 96 countries.Recent Improvements to Singapore’s Investment Regime Companies (Amendment) Act 2017 To ensure that Singapore’s corporate regulatory regime continued to stay robust and supported Singapore’s growth as a global hub for businesses and investors, the Ministry of Finance (MOF) and Accounting and Corporate Regulatory Authority (ACRA) conducted a review of the Companies Act in 2016. This review culminated in the Companies (Amendment) Bill 2017 and Limited Liability Partnerships (Amendment) Bill, which were passed in Parliament on 10 Mar 2017.
Companies, including small and medium enterprises (SMEs) will benefit from these changes. In particular, the compliance cost will be reduced for private companies that will be exempted from holding annual general meetings (AGMs), subject to specified safeguards. To reduce the administrative burden, the timelines for companies to hold AGMs and file annual returns will also be simplified. These changes are expected to take effect in early 2018.
The Companies (Amendment) Act 2017 also reforms the legislative framework for companies and foreign companies, including provisions to introduce an inward re-domiciliation regime in Singapore. This allows foreign corporate entities to transfer their registration to Singapore, instead of setting up subsidiaries. This is expected to take effect later this year.
To uphold Singapore’s reputation as a trusted financial hub, the ownership and control of business entities will be made more transparent, with all companies and limited liability partnerships (LLPs), unless exempted, required to obtain and maintain beneficial ownership information. There are also changes to Singapore’s corporate rescue and restructuring processes to better support the conduct of international debt restructuring. These changes took effect from 31 Mar 2017.
In addition, the legal requirement for companies and LLPs to use common seals has been removed with effect from 31 Mar 2017. This further streamlines the process for registering a business in Singapore.Improvements to Procedures and Requirements relating to Property Ownership The Singapore Land Authority (SLA) has been actively moving towards making property transactions a paper-free process, and several improvements to the procedures and requirements relating to property ownership have been implemented over the past year.
In June 2017, the “Paperless Title” scheme was extended to all financial institutions licensed by the Monetary Authority of Singapore (MAS). In other words, titles in respect of properties mortgaged or charged to all MAS-licensed financial institutions and government agencies will not be printed upon registration of the mortgage. This saves storage and manpower costs as there is no longer the need to safe-keep title documents, which in turn eliminates the risk of lost or damaged titles or fraudulent use of titles.
SLA also launched the MyProperty portal in August 2016. This is an online service that allows property owners with a 2nd Factor Authentication (2FA) SingPass to view and download the land titles and plans of the properties they own, including properties they have bought that are pending legal completion. Previously, property owners had to purchase a copy of the titles and/or plans. They will now be able to do so for free through MyProperty.
SLA also dispensed with the need for property owners to submit hardcopies of the Total Discharge of Mortgage or Total Discharge of Charge (TDM/TDC) forms. These forms can now be signed digitally by officers of financial institutions anytime, anywhere through the Singapore Titles Automated Registration System e-Lodgment (STARS ELS).
The Land Dealings Approval Unit (LDAU) e-Applications portal was also fully implemented in 2016. This portal enables foreign persons and foreign entities to apply, via the Internet, for approval to purchase restricted residential property, as defined under the Residential Property Act. LDAU’s internal work processes are streamlined with this portal, and applicants have a quick, convenient and efficient way to submit and monitor their applications.Improvements to Procedures and Requirements relating to Intellectual Property As part of the Intellectual Property Office of Singapore’s (IPOS) commitment to encourage innovation and creativity in our Singapore intellectual property landscape, it introduced a series of fee revisions with effect from 1 April 2017. Businesses now enjoy cost savings when they file for patent and trade mark protection in Singapore, through lowered application fees. IPOS observed an increase in the number of trademark applications using pre-approved database descriptions since the implementation of this fee revision.
In collaboration with the Singapore Network Information Centre (SGNIC), IPOS also introduced a Domain Name Reservation Programme that came into effect on 9 June 2016. Under this Programme, each completed intellectual property application for a trademark, patent or design on IPOS’ IP2SG e-service system is eligible for a free “.sg” or “.com.sg” domain name, subject to adherence of domain rules of registration. Local and foreign applicants (individual or company) are able to search and reserve available domain names through IP2SG, thus resulting in time and cost savings.Update on Singapore’s Investment-related Agreements Between May 2016 to June 2017, Singapore concluded the third review of the Singapore-Australia Free Trade Agreement. In addition, Singapore signed Bilateral Investment Treaties (BITs)/Investment Guarantee Agreements (IGAs) with Nigeria and Mozambique, and also concluded BIT/IGA negotiations with Kenya, Tanzania and Kazakhstan. Singapore is currently engaged in the following negotiations: the Regional Comprehensive Economic Partnership (RCEP) Agreement, the ASEAN-Hong Kong FTA, the Sri Lanka-Singapore FTA, the Eurasian Economic Union-Singapore FTA, reviews of the Agreement between New Zealand and Singapore on a Closer Economic Partnership, and BITs/IGAs with Maldives and Myanmar. 2018 Singapore’s Investment Climate Singapore’s investment measures Singapore continues to maintain a pro-business and pro-investment economic policy. This has encouraged foreign direct investment (FDI), a key pillar of Singapore’s overall economic strategy. According to the World Bank’s Doing Business 2017 Report, Singapore ranked as the second easiest country worldwide in which to do business. Meanwhile, in 2016, the World Economic Forum continued to rank Singapore at the top of its Global Enabling Trade Index for having the most open economy for international trade and investment for the fifth consecutive time, and second overall most competitive economy globally.
Singapore continues to adopt investment-friendly public policies. This includes upholding a strong and transparent legal framework – crucial for protecting contractual agreements. This has contributed to a stable and predictable investment climate. Judicial proceedings affecting foreign investors in Singapore are wholly independent and the government does not interfere with any judicial proceedings or decisions made. Singapore’s open investment regime does not require approval or a screening system for FDI. Apart from regulatory requirements in selected sectors, foreign investors are subject to the same basic laws as local investors, and enjoy no restrictions on reinvestment or repatriation of earnings or capital. Foreign investors are also not required to enter into joint ventures.
In line with promoting a favourable and conducive investment climate, transparency and ensuring ease of doing business remain important for Singapore. Singapore’s investment measures, including investment laws, regulations, procedures and administrative rulings of general application, are promptly published or made available online to enable interested persons and other countries to become acquainted with them. The application for, and obtaining licenses and permits (including multiple licenses), are transparent and easily accessible via the online licensing portal i.e. LicenceOne.
As of May 2018, Singapore has 40 investment guarantee agreements (IGAs) in force. Besides these IGAs, the Multilateral Investment Guarantee Agency (MIGA) which Singapore joined in 1998 provides political risk insurance and credit enhancement guarantees against certain non-commercial risks for eligible investors for a premium based on country and project risk.
To mitigate the effects of international double taxation on its residents engaging in cross-border trade and investment activities, Singapore has 84 comprehensive Double Taxation Agreements (DTA) and 7 limited DTAs in force.Recent Improvements to Singapore’s Investment Regime Amendments to the Competition Act To ensure the effective investigation and adjudication of anti-competitive activities, and ease of compliance with the Competition Act (Act), the Competition and Consumer Commission of Singapore (CCCS) has made the following amendments to the Act, which entered into force on 16 May 2018:
a. Included a new Section 55A (Confidential advice by Commission on anticipated mergers) into the Act which allows a party to an anticipated merger to apply to CCCS for its confidential advice on whether the transaction is likely to infringe Section 54 (Mergers) which prohibits mergers that substantially lessen competition. The new section codifies the process that previously only existed in the Competition Commission of Singapore (CCS) Guidelines on Merger Procedures 2012 and provides businesses with more certainty that this process will be available to them if they satisfy the conditions in Section 55A.;
b. Included two Sections 60A(1A) and 60A(1B) (Commitments) of the Act which codify the CCCS’s previous practice of permitting undertakings to offer voluntary commitments (which were not enforceable in Court) to remediate the competition concerns identified by CCCS such as an abuse of dominant position or agreements which prevent, restrict or distort competition. This would benefit businesses by providing them with a formal mechanism to voluntarily address anti-competitive conduct and avoid financial penalties. The new Sections 60B(1A) and (1B) (Commitments) also makes it clear that if commitments are accepted by CCCS, the CCCS must make a decision that there is no infringement.; and
c. Made amendments to Section 63 (Power when conducting investigation) of the Act which will benefit businesses as CCCS would be able to conduct inspections in a shorter time and minimise disruption to their operations. Previously, CCCS enforcement officers could only ask for explanations of documents found on the premises during inspections and had to issue separate notices to businesses when its officers wanted to ask persons on the premises general questions about the case. The amendments allow CCCS enforcement officers entering any premises to orally examine any individual on the premise, and require the production of a document at such a time and place, and in such form and manner, as may be required.Incorporation of Workman Injury Compensation Insurance (WICI) into Accounting and Corporate Regulatory Authority online business registration process. As part of the Accounting and Corporate Regulatory Authority’s (ACRA) commitment to contribute towards making Singapore the best place for business, ACRA has incorporated the Workman Injury Compensation Insurance (WICI) into the ACRA online business registration process. Under the Ministry of Manpower’s Work Injury Compensation Act (WICA), it is compulsory for employers to purchase the WICI for employees when they start a business. From Nov 2017, business owners can now apply for WICI from an insurance provider (National Trade Union Congress (NTUC) Income) (via ACRA’s online Bizfile+ system) immediately after completing the online business registration process. This reduces the need for employers to expend extra time purchasing the WICI. Increase annual revenue threshold for filing of Form C-S and Waiver of Requirement to File Estimated Chargeable Income (ECI) Increase annual revenue threshold for filing of Form C-S
From YA 2017, the Inland Revenue Authority of Singapore (IRAS) increased the annual revenue threshold for filing of Form C-S from S$1 million to S$5 million. The Form C-S, a simplified 3-page income tax return, has fewer fields to complete compared to the Form C. Additionally, qualifying small companies are not required to submit financial statements and tax computation as these will be declared in the Form C-S. Some of the qualifying conditions for the Form C-S include, the company having to be incorporated in Singapore and having an annual revenue of $5 million. This increase in annual revenue threshold for the filing of Form C-S would reduce the compliance cost on smaller companies as they no longer need to file the Form C-S.
Increase annual revenue threshold for Waiver of Requirement to File Estimated Chargeable Income (ECI)
From Jul 2017 onwards, IRAS also increased the annual revenue threshold for Waiver of Requirement to File Estimated Chargeable Income (ECI) from S$1 million to S$5 million. All companies are required to submit their ECI 3 months after the end of each financial year, unless they meet the waiver conditions. The other condition (i.e. ECI before exempt amount is NIL for the YA) remains unchanged. With the annual revenue threshold for ECI waiver increased from S$1 million to S$5 million, it would reduce the compliance cost on smaller companies as they will no longer have to submit the ECI.Improvements to Singapore’s Energy Sector for Companies and Consumers In line with the Energy Market Authority’s (EMA) goals to promote effective competition in the energy sector, ensure a reliable and secure energy supply, and develop a dynamic energy sector in Singapore, the EMA has launched three initiatives in 2017.
The first is the launch of the Regulatory Framework for the electricity and gas sectors in Singapore on Oct 2017. The Framework sets out the objective and principles of a Sandbox and provides guidance to the Applicant on the application process and the information which have to be furnished to EMA. This Sandbox allows the industry to experiment with innovative solutions in a live environment temporarily within boundary conditions, without being subjected to the prevailing regulatory requirements. The aim of this initiative is to promote innovation and allows the EMA to assess the impact of new products and services before deciding on the appropriate regulatory treatment.
The second initiative is the Enhanced Central Intermediary Scheme which allows companies with embedded generation capacity (either intermittent or non-intermittent generation sources) of up to 10MW to get paid for injecting excess electricity into the grid. Implemented on Oct 2017, such companies are not required to register with the wholesale electricity market, which requires daily settlement, compliance with the wholesale electricity market rules, one-time registration fee of $5,000, and recurring annual fee of $10,000. Instead, these companies can register with SP Group, who will sell the electricity generated in the wholesale electricity market on their behalf, and pass the payment through to them. This reduces regulatory compliance cost and provides more options for these companies to manage electricity requirements.
Finally, in a bid to facilitate the increased adoption of renewable energy in Singapore, the EMA has on Jun 2017 streamlined the registration process for consumers generating solar electricity for self-consumption.Update on Singapore’s Investment-related Agreements Between Jul 2017 to May 2018, Singapore concluded the Sri Lanka-Singapore Free Trade Agreement (FTA), the ASEAN-Hong Kong FTA, and the ASEAN-Hong Kong Investment Agreement. Singapore signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership on 8 March 2018. In addition, the bilateral investment treaty (BIT) between Singapore and Iran entered into force on 28 February 2018. Singapore is currently engaged in negotiations on the Regional Comprehensive Economic Partnership (RCEP) Agreement, the Eurasian Economic Union-Singapore FTA, the Pacific Alliance-Singapore FTA, and also BITs/IGAs with Indonesia, Myanmar and Argentina. Singapore is also engaged in reviews of the Agreement between New Zealand and Singapore on a Closer Economic Partnership, and the China-Singapore FTA. 2019 Singapore’s Investment Climate Singapore’s investment measures Singapore continues to maintain a pro-business and pro-investment economic policy. This has encouraged foreign direct investment (FDI), a key pillar of Singapore’s overall economic strategy. In the 2019 iteration of the World Bank’s annual “Doing Business” report, Singapore maintained its position as the second easiest country worldwide in which to do business. Additionally, Switzerland-based think-tank IMD World Competitiveness Centre has ranked Singapore as the world’s most competitive economy in 2019 for its yearly ranking of 63 economies due to, amongst other things, Singapore’s conducive business environment and advanced technological infrastructure.
FDI inflows into Singapore have remained consistently stable in recent years, with total stock FDI reaching S$1,568.0 billion at the end of 2017, an increase of 15.7 per cent from the previous year. Direct equity investment in 2017 comprised S$1,413.8 billion, or 90 per cent of total FDI in Singapore, with net lending from foreign direct investors accounting for the remaining S$154.1 billion, or 10.0 per cent.
Singapore continues to adopt investment-friendly public policies. This includes upholding a strong and transparent legal framework – crucial for protecting contractual agreements. This has contributed to a stable and predictable investment climate. Judicial proceedings affecting foreign investors in Singapore are wholly independent and the government does not interfere with any judicial proceedings or decisions made. Singapore’s open investment regime does not require approval or a screening system for FDI. Apart from regulatory requirements in selected sectors, foreign investors are subject to the same basic laws as local investors, and enjoy no restrictions on reinvestment or repatriation of earnings or capital. Foreign investors are also not required to enter into joint ventures.
In line with promoting a favourable and conducive investment climate, transparency and ensuring ease of doing business remain important for Singapore. Singapore’s investment measures, including investment laws, regulations, procedures and administrative rulings of general application, are promptly published or made available online to enable interested persons and other countries to become acquainted with them. The application for, and obtaining licenses and permits (including multiple licenses), are transparent and easily accessible via the online licensing portal i.e. LicenceOne.
As of May 2019, Singapore has 40 investment guarantee agreements (IGAs) in force. Besides these IGAs, the Multilateral Investment Guarantee Agency (MIGA) which Singapore joined in 1998 provides political risk insurance and credit enhancement guarantees against certain non-commercial risks for eligible investors for a premium based on country and project risk.
To mitigate the effects of international double taxation on its residents engaging in cross-border trade and investment activities, Singapore has bilateral agreements for the Avoidance of Double Taxation (DTAs) with 86 countries, in force.Recent Improvements to Singapore’s Investment Regime Amendments to the Companies Act To keep Singapore business-friendly and competitive, the following legislative amendments to the Companies Act entered into force on 31 August 2018:
a. For companies with financial year end (FYE) ending on or after 31 August 2018, the timeline for holding Annual General Meetings (AGMs) and filing annual returns is now aligned with the company’s FYE; and
b. Private companies are now exempted from holding AGMs if they send their financial statements to members within 5 months after their FYE and no member has requested for an AGM.
Further, to reduce administrative burden and improve ease of doing business, the Accounting and Corporate Regulatory Authority (ACRA) has simplified the process of filing annual returns for solvent exempt private companies and private dormant relevant companies. Most of the information in the Annual Return form will now be pre-filled for these companies, and such companies need only verify that the information is correct before submission.Enhancement of the Singapore Titles Automated Registration System (STARS) eLodgment system In June 2018, the Singapore Land Authority (SLA) enhanced the STARS eLodgment system to enable law firms to download the softcopy of updated titles under the Paperless Titles scheme the next day after new instruments have been registered. Law firms may now download the softcopy of updated titles up to four times within 21 days from the date the new instruments are registered, from the STARS eLodgment system, instead of having to collect the hardcopy title physically at the SLA. This latest enhancement to the STARS eLodgment system will streamline the process whereby land transactions are conducted and increase the efficiency of law firms involved in conveyancing and real estate work. Update on Singapore’s Investment-related Agreements Between May 2018 and May 2019, Singapore concluded negotiations on a new bilateral investment treaty (BIT) with Myanmar and signed 4 new BITs with Kazakhstan, Indonesia, Rwanda, and Kenya respectively. Singapore also signed the European Union (EU)-Singapore Free Trade Agreement (EUSFTA) and the EU-Singapore Investment Protection Agreement (EUSIPA) on 19 October 2018.
In addition to the above, Singapore upgraded the Agreement between New Zealand and Singapore on a Closer Economic Partnership (NZSCEP) and the China-Singapore Free Trade Agreement (CSFTA), and signed the Fourth Protocol to Amend the ASEAN Comprehensive Investment Agreement (ACIA) and the First Protocol to Amend the ASEAN-Japan Comprehensive Economic Partnership (AJCEP).
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which was ratified by Singapore on 19 July 2018, also entered into force on 30 December 2018.
Singapore is currently engaged in negotiations on a BIT with Ghana, as well as on the Regional Comprehensive Economic Partnership (RCEP) Agreement, the Eurasian Economic Union (EAEU)-Singapore Free Trade Agreement, the MERCOSUR-Singapore Free Trade Agreement and the Pacific Alliance (PA)-Singapore Free Trade Agreement. Negotiations for the review of the ASEAN-Australia-New Zealand Free Trade Agreement are also ongoing.2020 Singapore’s Investment Climate Singapore’s investment measures Singapore continues to maintain a pro-business and pro-investment economic policy. This has encouraged foreign direct investment (FDI), a key pillar of Singapore’s overall economic strategy. In the 2020 iteration of the World Bank’s annual “Doing Business” report, Singapore maintained its position as the second easiest country worldwide in which to do business. Additionally, Switzerland-based think-tank IMD World Competitiveness Centre has ranked Singapore as the world’s most competitive economy in 2019, for the second year in a row, due to Singapore’s conducive business environment and advanced technological infrastructure.
FDI inflows into Singapore have remained consistently stable in recent years, with total stock FDI reaching S$1,736.8 billion at the end of 2018, an increase of 10.8 per cent from the previous year. Direct equity investment in 2018 comprised S$1,590.0 billion, or 92 per cent of total FDI in Singapore, with net lending from foreign direct investors accounting for the remaining S$146.8 billion, or 8.0 per cent.
Singapore continues to adopt investment-friendly public policies. This includes upholding a strong and transparent legal framework – crucial for protecting contractual agreements. This has contributed to a stable and predictable investment climate. Judicial proceedings affecting foreign investors in Singapore are wholly independent and the government does not interfere with any judicial proceedings or decisions made. Singapore’s open investment regime does not require approval or a screening system for FDI. Apart from regulatory requirements in selected sectors, foreign investors are subject to the same basic laws as local investors, and enjoy no restrictions on reinvestment or repatriation of earnings or capital. Foreign investors are also not required to enter into joint ventures.
In line with promoting a favourable and conducive investment climate, transparency and ensuring ease of doing business remain important for Singapore. Singapore’s investment measures, including investment laws, regulations, procedures and administrative rulings of general application, are promptly published or made available online to enable interested persons and other countries to become acquainted with them. The application for, and obtaining licenses and permits (including multiple licenses), are transparent and easily accessible via the online licensing portal i.e. LicenceOne.
As of May 2020, Singapore has 40 investment guarantee agreements (IGAs) in force. Besides these IGAs, the Multilateral Investment Guarantee Agency (MIGA) which Singapore joined in 1998 provides political risk insurance and credit enhancement guarantees against certain non-commercial risks for eligible investors for a premium based on country and project risk.
To mitigate the effects of international double taxation on its residents engaging in cross-border trade and investment activities, Singapore has bilateral agreements for the Avoidance of Double Taxation (DTAs) with 88 countries, in force.Recent Improvements to Singapore’s Investment Regime Variable Capital Companies The Variable Capital Companies framework was established by the Variable Capital Companies Act 2018 on 15 January 2020. The Variable Capital Company (VCC) is a new corporate structure which provides for flexibility in the issuance and redemption of shares. Fund managers may use the new VCC to structure their investment funds in Singapore and pay dividends out of capital. Variable Capital Companies Grant Scheme (VCCGS) In line with the launch of the VCC, the Monetary Authority of Singapore (MAS) has also launched a Variable Capital Companies Grant Scheme (VCCGS) under the Financial Sector Development Fund (FSDF) to co-fund qualifying expenses paid to Singapore-based service providers for work done in Singapore, in relation to the incorporation or registration of a VCC. Under the VCCGS, qualifying fund managers may seek 70% co-funding of expenses incurred for legal services, tax services and administration or regulatory compliance services, capped at $150,000 per VCC. The VCCGS is currently open for application until 15 January 2023. Simplification and Streamlining of Online Annual Return (AR) Filing With effect from 27 December 2019, the online annual return form which is compulsory for all companies to file, has been simplified and streamlined to reduce administrative burden and improve ease of doing business. Most of the information in the annual return form is now pre-filled based on information provided in previous annual return filings and annual return filers need only verify the pre-filled information. In addition, the user interface for the annual return form has been enhanced with a more intuitive layout and fewer pages/steps to update or review the information. Readiness for Fourth Industrial Revolution (4IR) The World Economic Forum’s (WEF) Readiness for the Future of Production Report comprises two main components, namely Structure of Production and Drivers of Production. The Report noted that Singapore has a strong institutional framework and future-oriented approach when it comes to transformation of production systems to incorporate new technologies and enhance efficiency. While Singapore was ranked 11th for Structure of Production, the report placed Singapore 2nd for Drivers of Production.
The Smart Industry Readiness Index (SIRI) and its accompanying Assessment Matrix was launched in November 2017 by the Singapore Economic Development Board (EDB) to help manufacturers take the first step on their transformation journey. SIRI identifies three fundamental building blocks of Industry 4.0 (Technology, Process and Organisation) and seeks to help companies architect their own Industry 4.0 roadmap. Using SIRI, companies are able to evaluate the current Industry 4.0 readiness of their facilities and plan accordingly to revamp their production systems to incorporate new technologies. The Assessment Matrix of SIRI in turn helps companies to start, scale and sustain their Industry 4.0 transformation. On 22 October 2019, the Manufacturing Transformation Insights Report was launched to provide all stakeholders within the industrial sector with a benchmark to assess and compare their Industry 4.0 maturity levels against those of their peers in the same industry.Update on Singapore’s Investment-related Agreements On 24 September 2019, Singapore signed a new bilateral investment treaty (BIT) with Myanmar. Singapore and the Eurasian Economic Union (EAEU) also signed the EAEU-Singapore Free Trade Agreement (EAEUSFTA) Framework Agreement and the non-Services and Investment Agreement on 1 October 2019. The EAEUSFTA will cover market access for trade in goods via reduction of tariff and non-tariff barriers, as well as other areas that facilitate trade such as competition, customs cooperation e-commerce, environment, government procurement and intellectual property. In addition, Singapore has signed a Services and Investment Agreement with Armenia. Services and Investment Agreements are currently being negotiated with Belarus, Kazakhstan, Kyrgyzstan and Russia.
Singapore also signed the Protocol to Amend the Agreement between New Zealand and Singapore on a Closer Economic Partnership (ANZSCEP) on 17 May 2019 to upgrade the ANZSCEP. The European Union (EU)-Singapore Free Trade Agreement (EUSFTA) and China-Singapore Free Trade Agreement (CSFTA) Upgrade Protocol have also entered into force on 21 November 2019 and 16 October 2019 respectively.
Additionally, Singapore signed the Digital Economy Partnership Agreement (DEPA) with Chile and New Zealand on 12 June 2020, and concluded negotiations with Australia on the Singapore Australia Digital Economy Agreement (SADEA) on 23 March 2020. Singapore is currently in negotiations with the Republic of Korea on a Korea-Singapore Digital Partnership Agreement (KSPDA).2021 Singapore’s Investment Climate Singapore’s investment measures Singapore continues to maintain a pro-business and pro-investment economic policy. This has encouraged foreign direct investment (FDI), a key pillar of Singapore’s overall economic strategy. In the 2020 iteration of the World Bank’s annual “Doing Business” report, Singapore maintained its position as the second easiest country worldwide in which to do business. Additionally, Switzerland-based think-tank IMD World Competitiveness Centre has ranked Singapore as the world’s 5th most competitive economy in 2021, due to Singapore’s conducive business environment and advanced technological infrastructure.
FDI inflows into Singapore have remained consistently stable in recent years, with total stock FDI reaching S$1,912.3 billion at the end of 2019, an increase of 10.5 per cent from the previous year. Direct equity investment in 2018 comprised S$1,836.6 billion, or 96 per cent of total FDI in Singapore, with net lending from foreign direct investors accounting for the remaining S$75.7 billion, or 4.0 per cent.
Singapore continues to adopt investment-friendly public policies. This includes upholding a strong and transparent legal framework – crucial for protecting contractual agreements. This has contributed to a stable and predictable investment climate. Judicial proceedings affecting foreign investors in Singapore are wholly independent and the government does not interfere with any judicial proceedings or decisions made. Singapore’s open investment regime does not require approval or a screening system for FDI. Apart from regulatory requirements in selected sectors, foreign investors are subject to the same basic laws as local investors and enjoy no restrictions on reinvestment or repatriation of earnings or capital. Foreign investors are also not required to enter into joint ventures.
In line with promoting a favourable and conducive investment climate, transparency and ensuring ease of doing business remain important for Singapore. Singapore’s investment measures, including investment laws, regulations, procedures and administrative rulings of general application, are promptly published or made available online to enable interested persons and other countries to become acquainted with them. Access to information on government e-services such as applications for obtaining licenses and permits (including multiple licenses) are transparent and easily accessible via the government’s GoBusiness portal.
As of May 2021, Singapore has 43 investment guarantee agreements (IGAs) and bilateral investment treaties (BITs) in force. Besides these IGAs, the Multilateral Investment Guarantee Agency (MIGA) which Singapore joined in 1998 provides political risk insurance and credit enhancement guarantees against certain non-commercial risks for eligible investors for a premium based on country and project risk.
To mitigate the effects of international double taxation on its residents engaging in cross-border trade and investment activities, Singapore has in force bilateral agreements for the Avoidance of Double Taxation (DTAs) with 88 countries.Recent Improvements to Singapore’s Investment Regime Updates to the Singapore Land Authority’s MyProperty portal The Singapore Land Authority’s MyProperty portal (launched in 2016) provides property owners the convenience to access information on their property online, such as their title deeds and boundary plans. In June 2020, two new services were implemented in the MyProperty portal, which allow property owners to now (a) update their correspondence addresses online; and (b) subscribe to MyProperty alerts to receive alerts wherever a transaction has been lodged against their property. Sustainable Bond Grant Scheme (SBGS) he Monetary Authority of Singapore (MAS) launched a Green Bond Grant Scheme (GBGS) in June 2017 to help issuers offset the additional costs of issuing green bonds as compared to conventional bonds, and promote the adoption of internationally accepted standards. Since then, two rounds of enhancements were made to reflect evolving market developments and best practices.
a. In January 2019, the scope of GBGS was renamed the Sustainable Bond Grant Scheme (SBGS) and expanded to include social and sustainability bonds.
b. In November 2020, the scope of SBGS was expanded to include sustainability-linked bonds, and to cover the post-issuance costs of engaging independent sustainability assessment and advisory service providers to obtain external reviews or reports.Green and Sustainability-Linked Loan Grant Scheme (GSLS) The first of its kind globally, MAS’ Green and Sustainability-Linked Loan Grant Scheme (GSLS) was launched in November 2020 to encourage businesses to take up green and sustainability-linked loans. The GSLS defrays the expenses of engaging independent service providers to validate the green and sustainability credentials of the loan. The GSLS also encourages banks to develop green and sustainability-linked loan frameworks to make such financing more accessible to small and medium-sized enterprises (SMEs). These frameworks support the financing of circular economy projects, renewable energy, energy efficiency activities, and promote sustainable supply chain practices of SMEs and large corporates. Catastrophe Bonds / Insurance-Linked Securities (ILS) MAS launched its Insurance-linked securities (ILS) Grant Scheme in 2018 to encourage ILS issuances. . The scheme was extended for another 2 years until 31 December 2022 given strong interest in ILS issuance. The ILS Grant Scheme seeks to fund up to 100 per cent of upfront ILS bond issuance costs in Singapore and promote such issuances domestically. Financial Sector Technology and Innovation Grant Scheme (FSTI) In Aug 2020, MAS announced that it will commit S$50 million over the next three years under the enhanced Financial Sector Technology and Innovation Grant Scheme (FSTI) to accelerate technology and innovation-driven growth in the financial sector. The funding can be used to support proofs-of-concept, innovation labs, industry-wide utilities, and technology platforms focused on Green FinTech. A new merit-based tiered funding mechanism will replace the previous flat 50 per cent funding support for qualifying project cost and a higher level of funding can be granted to projects which demonstrate stronger merits. Green Finance Action Plan (GFAP) Launched in October 2020, the GFAP aims to support a sustainable Singapore and to facilitate Asia’s transition to a sustainable future. The plan focuses on MAS’ efforts to:
Strengthen the financial sector’s resilience to environmental risks by setting out MAS’ supervisory expectations and incorporating climate scenarios into industry stress tests;
Develop green financial solutions and markets for a sustainable economy to defray additional expenses related to obtaining external reviews and verification for green and sustainability-linked bonds and loans;
Harness technology to enable trusted and efficient sustainable finance flows by identifying and supporting promising Green FinTech solutions; and
Build knowledge and capabilities in sustainable finance.GoBusiness – Single Digital Touchpoint for Businesses to Interact with the Government From 1 Apr 2021, information from multiple government agencies that is needed to start a new business has been consolidated in the new GoBusiness portal, which aims to provide a single digital touchpoint for businesses to transact with the Government. The GoBusiness portal is expected to (a) reduce the need for new business owners to have to refer to and cross-validate information across multiple government websites; and (b) enable businesses to start faster and with reduced consulting costs. New notable features of the GoBusiness portal include:
A “Start-Up Guide”, which provides recommendations and step-by-step information for new business owners; and
An “e-Advisor for Starting a Business” and “e-Advisor for Business Structure”, which respectively guides users on starting a business and selecting the right business structure.Ask ADA – Chatbot for Singapore’s Unique Entity Number (UEN) website From Feb 2021, Singapore’s Unique Entity Number (UEN) website has implemented a chatbot named “Ask ADA” (i.e. the Accounting and Corporate Regulatory Authority (ACRA) Digital Assistant) that utilizes Google Dialogflow to interact with users in a lifelike and conversational manner and improve user experiences. Ask ADA is intended to answer customer enquiries, reduce manual intervention by officers and the need for businesses to continuously review FAQ content regarding UENs. The ACRA IRAS Seamless Filing Initiative In line with Singapore’s Smart Nation initiative to help SMEs stay relevant and competitive, ACRA and the Inland Revenue Authority of Singapore (IRAS) have partnered with corporate secretarial software providers under the Seamless Filing Initiative to co-create a new digital solution that allows smaller companies to prepare and file annual and tax returns with ACRA and IRAS seamlessly through Application Programming Interfaces (APIs). With the new digital solution, it now takes approximately half an hour (compared to nine hours if done manually) to prepare and file Annual Returns with financial statements in Simplified XBRL format with ACRA, and Corporate Income Tax Return (Form C-S) with IRAS. Errors are also minimized because submissions are automatically generated within the digital solution and filed seamlessly with both ACRA and IRAS. New XBRL Filing Requirements for Companies ACRA has streamlined the XBRL filing format to reduce the compliance burden on companies that are required to file XBRL format financial statements with ACRA. The new streamlined format, which is mandatory from 16 May 2021, removes a significant amount of data elements smaller companies are required to file (approximately 50%-70% fewer data elements to file), which saves businesses time and effort. At the same time, the new format also collects more significant data points that provide a more complete comparison of the filing company’s financial health against others in the same industry. 2022 Singapore’s Investment Climate Singapore’s investment measures Singapore continues to maintain a pro-business and pro-investment economic policy. This has encouraged foreign direct investment (FDI), a key pillar of Singapore’s overall economic strategy, to continue to flow into Singapore notwithstanding global disruptions caused by the pandemic and geopolitical instability. In the 2022 iteration of the Institute for Management Development (IMD) World Competitiveness Ranking, Singapore was ranked as the world’s third most competitive economy, improving from fifth position in 2021. Notably, the survey gave Singapore top scores in the sub-factors of domestic economy, international trade and technological infrastructure. IMD attributed Singapore’s high ranking to substantial improvements in employment, public finance, and productivity and efficiency.
FDI inflows into Singapore have remained consistently stable in recent years, with total stock FDI reaching S$2,141.8 billion at the end of 2020, an increase of 11.3 per cent from the previous year. Direct equity investment in 2020 comprised S$2,063.7 billion, or 96 per cent of total FDI in Singapore, with net lending from foreign direct investors accounting for the remaining S$78.1 billion, or 4.0 per cent.
Singapore continues to adopt investment-friendly public policies. This includes upholding a strong and transparent legal framework – crucial for protecting contractual agreements. This has contributed to a stable and predictable investment climate. Judicial proceedings affecting foreign investors in Singapore are wholly independent and the government does not interfere with any judicial proceedings or decisions made. Singapore’s open investment regime does not require approval or a screening system for FDI. Apart from regulatory requirements in selected sectors, foreign investors are subject to the same basic laws as local investors, and enjoy no restrictions on reinvestment or repatriation of earnings or capital. Foreign investors are also not required to enter into joint ventures.
In line with promoting a favourable and conducive investment climate, transparency and ensuring ease of doing business remain important for Singapore. Singapore’s investment measures, including investment laws, regulations, procedures and administrative rulings of general application, are promptly published or made available online to enable interested persons and other countries to become acquainted with them. The application for, and obtaining licenses and permits (including multiple licenses), are transparent and easily accessible via the online licensing portal i.e. GoBusiness Licensing.
As of May 2022, Singapore has 43 investment guarantee agreements (IGAs) in force. Besides these IGAs, the Multilateral Investment Guarantee Agency (MIGA) which Singapore joined in 1998 provides political risk insurance and credit enhancement guarantees against certain non-commercial risks for eligible investors for a premium based on country and project risk.
To mitigate the effects of international double taxation on its residents engaging in cross-border trade and investment activities, Singapore has signed Avoidance of Double Taxation Agreements (DTAs), limited DTAs and Exchange of Information Arrangements (EOI Arrangements) with around 100 jurisdictions.Recent Changes to Singapore’s Investment Regime Amendments to the Companies Act With effect from 30 May 2022, companies are required to enter into their Register of Nominee Directors, information received from nominee directors (including any updates) within 7 days after receiving the information. Foreign companies are required to update their Register of Members within 30 days following any changes. The new timelines are implemented in accordance with amendments to the Companies Act following the passing of the Corporate Registers (Miscellaneous Amendments) Bill on 10 January 2022. Improvements to Ada – Chatbot for Singapore’s Unique Entity Number (UEN) Website The Accounting and Corporate Regulatory Authority (ACRA) has launched new improvements to Ada, a chatbot that is accessible on its website, to address queries on business registration related issues. Using Ada, businesses can now also get advice on the purchase of business information products, or to renew or cease their business registration via the chat interface. Ada is the first virtual assistant to be enabled with Corppass authentication and leverages English-based natural language processing and predictive analytics to serve businesses better. ACRA will progressively introduce more content and services through Ada. New Features Launched on GoBusiness Portal The GoBusiness portal is a convenient one-stop online platform which connects business owners to various government e-services and resources. In 2022, a new GoBusiness Dashboard was launched with new features to streamline online transactions with the government and reduce the need for new business owners to cross-validate information across multiple government websites. New notable features of the GoBusiness portal include:
An e-Advisor which allows users to see whether their brand name is available as a trade mark or social medial handle.
Enhancements to the e-Advisor for Government Assistance which provide improved recommendations and auto-filled forms.
Seamless integration with the Business Grants Portal (BGP) which provides direct links to recommended BGP grants for users to apply without having to login to the BGP again.Simplification and Streamlining of Online Filing for Select Financial Institutions With effect from 27 September 2021, the Monetary Authority of Singapore (MAS) has introduced the Key Appointment Holders (KAH) e-Service module which enables selected financial institutions in Singapore to (i) lodge their KAH applications electronically via a standardised form; (ii) receive and respond to MAS’ queries within the KAH e-Service module; and (iii) track all applications submitted. Prior to the e-KAH system, KAH applications and correspondences between MAS and financial institutions were done via email. There was also no centralised platform for financial institutions to track the status of the applications that were submitted. 2023 Singapore’s Investment Climate Singapore’s investment measures Singapore continues to maintain a pro-business and pro-investment economic policy. This has encouraged foreign direct investment (FDI), a key pillar of Singapore’s overall economic strategy, to continue to flow into Singapore notwithstanding global disruptions caused by the pandemic and geopolitical instability. In the 2023 iteration of the Institute for Management Development (IMD) World Competitiveness Ranking, Singapore was ranked as the world’s fourth most competitive economy, dropping one position from third in 2022. The drop, according to IMD was mainly due to a slight decline in the government efficiency factors coupled with several aspects of management practices like the agility of companies, entrepreneurship and social responsibility of companies. Nonetheless, Singapore performed well across all competitive factors, ranking third in economic performance, seventh in government efficiency and eighth in business efficiency. Notably, Singapore improved in international investment, climbing up a position from fifth in 2021 to fourth in 2022. Singapore also showed significant progress in the sub-factors of employment, productivity and efficiency, and labour market.
FDI inflows into Singapore have remained consistently stable in recent years, with total stock FDI reaching S$2,479.0 billion at the end of 2021, an increase of 15.5 per cent from the previous year. Direct equity investment in 2021 comprised S$2,372.5 billion, or 96 per cent of total FDI in Singapore, with net lending from foreign direct investors accounting for the remaining S$106.5 billion, or 4.0 per cent.
Singapore continues to adopt investment-friendly public policies. This includes upholding a strong and transparent legal framework – crucial for protecting contractual agreements. This has contributed to a stable and predictable investment climate. Judicial proceedings affecting foreign investors in Singapore are wholly independent and the government does not interfere with any judicial proceedings or decisions made. Apart from regulatory requirements in selected sectors, foreign investors are subject to the same basic laws as local investors and enjoy no restrictions on reinvestment or repatriation of earnings or capital. Foreign investors are also not required to enter into joint ventures.
In line with promoting a favourable and conducive investment climate, transparency and ensuring ease of doing business remain important for Singapore. Singapore’s investment measures, including investment laws, regulations, procedures and administrative rulings of general application, are promptly published or made available online to enable interested persons and other countries to become acquainted with them. The application for, and obtaining licenses and permits (including multiple licenses), are transparent and easily accessible via the online licensing portal i.e. GoBusiness Licensing.
As of May 2023, Singapore has 43 investment guarantee agreements (IGAs) in force. Besides these IGAs, the Multilateral Investment Guarantee Agency (MIGA) which Singapore joined in 1998 provides political risk insurance and credit enhancement guarantees against certain non-commercial risks for eligible investors for a premium based on country and project risk.
To mitigate the effects of international double taxation on its residents engaging in cross-border trade and investment activities, Singapore has signed Avoidance of Double Taxation Agreements (DTAs), limited DTAs and Exchange of Information Arrangements (EOI Arrangements) with around 100 jurisdictions.Recent Changes to Singapore’s Investment Regime Amendments to the Companies, Business Trusts and Other Bodies (Miscellaneous Amendments) Act 2023 As part of the Ministry of Finance (MOF) and ACRA’s regular review of the Companies Act (CA), the Companies, Business Trusts and Other Bodies (Miscellaneous Amendments) Bill was passed in the Parliament on 9 May 2023 and took effect on 1 July 2023. The amendments were made to promote a more pro-business environment whilst upholding market confidence and safeguarding public interest. The key legislative changes include:
a. Strengthen the Regulatory Framework
i. Refinements to the compulsory share acquisition framework whereby shares held by persons connected with a person (an offeror) are excluded from the computations of the 90 per cent threshold for the compulsory acquisition under section 215 of the Companies Act (CA), to provide greater protection to minority shareholders.
ii. Increasing the penalties imposed for the failure to prepare and table financial statements in compliance with the Accounting Standards.
b. Enhance the Ease of Doing Business
i. Enhance the regime for disqualification under section 155A of the CA by:
1. Reducing length of automatic disqualification for first-time offenders from 5 years to 3 years; and
2. Empowering the Registrar to grant leave to disqualified directors, in addition to directors’ existing right to seek leave from the High Court.
ii. Apply Multiple Proxies Regime to Schemes of Arrangement (SOA) meetings by removing the one proxy rule in section 181(1B) of the CA.
iii. Remove restriction of certain companies to hold land under sections 23(2)-(5) of the CA.
c. Facilitate Digitalisation
i. Allowing companies to hold fully virtual and hybrid meetings
ii. Require companies to accept proxy instructions given by electronic meansNew Features Launched on GoBusiness Portal The GoBusiness portal is a convenient one-stop online platform which connects business owners to various government e-services and resources. In 2023, an Events Proposal Box was launched to allow event organisers to propose unique concepts for collaboration with the government or seek government endorsements for regulatory approvals. Currently, only proposals for Sporting and Meetings, Incentives, Conferences and Exhibition (MICE) events are accepted. The Events Proposal Box, together with an e-adviser for Events, will be part of the Guide for Organising Events. This guide is a new events page which provides organisers tools to navigate the process of organising events in Singapore and access relevant application forms for licenses and permits directly, streamlining the enquiry and application process. Additional improvements to ACRA’s online system ACRA introduced its new and improved digital chatbot, “Ask Ada” in March this year, replacing ACRA’s previous chatbot, “Ask Jamie” to help customers with their queries on a wider range of topics. Some key features include guiding customers to make payments and carry out transactions, such as business renewal or business cessation, on the online portal itself. This is part of ACRA’s measures to simplify and streamline administrative procedures for customers.
12. Enhancements were made to Bizfile+, ACRA’s business registral and eForms in May. More eServices were enhanced to further safeguard customers’ personal information making it easier to access information and eServices on Bizfile+.
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