Doing Business in Singapore · Doing Business in Singapore GLOBAL VISION ... Companies looking...
Transcript of Doing Business in Singapore · Doing Business in Singapore GLOBAL VISION ... Companies looking...
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Business Advisors to Growing Businesses
Doing Business in Singapore
GLOBAL VISION BACKED BY LOCAL KNOWLEDGE
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Copyright 2017 RSM 1
Foreword 4
oVerVIew oF SINGAPore 5 SingaporeasanEconomicHubandInternationalFinancialCentre SingaporesAttractivenessasanInvestmentDestination
CoMMerCIAL eNVIroNMeNT 9 SingaporesEconomy 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
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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
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SINGAPore wITHIN ASeAN 93 OverviewofASEAN ForeignDirectInvestmentinASEAN ASEANEconomicCommunity
ABoUT rSM INTerNATIoNAL 98
ABoUT rSM IN SINGAPore 99
ACkNowLedGeMeNTS 101
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Foreword
Singapore as your Anchor in AsiaSingaporehasbeenconsistentlyrankedamongthemostpreferredcountriesforfinance,businessandcommerce.Thisismainlyduetoitsstrategiclocation,pro-businessenvironmentandstablepoliticalatmosphere.
CredentialsthecitystatehasreceivedincludethirdplacinginIMDsWorldCompetitivenessYearbook2017andbeingpositionedfourthintheSeptember2017GlobalFinancialCentresIndex.Singaporealsotookthefifthspotamong160countriesintheWorldBanks2016LogisticsPerformanceIndex.BeingrankedamongthebestintheworldonTransparencyInternationalsCorruptionPerceptionsIndex2016,thenationiswellplacedastheidealchoiceforcompaniestoconsiderexpandingtheiroperationsinto.
NeighbouringAsiancitiescanbeaccessedfromSingaporebyairtravelwithinsevenhours.ThisenablesSingaporetobeanexcellentspringboardforbusinessexpansionintheregion.CompanieslookingtowardsSingaporecaneasilyestablishtheirregionaloroperationalheadquartershereandevenusethislocationasanR&Dandintellectualpropertyplatform.Withlowcorporatetaxandinterestrates,aswellasthepresenceofover80taxtreatieswithothercountries,businesscostsarekeptlow.Thenationalsodoesnothaveforeignexchangecontrols.Thismakesiteasierforinvestorstodealwithforeignexchangerisk.Corporategovernanceriskisalsominimisedwithatransparentgovernmentandtheauthoritiesbackingtopromoteworld-classpractices.
RSMwelcomesforeigninvestorstosetuptheirbaseinSingaporeanduseitasanintegralpartoftheirexpansionplanstogrowtheirbusinessandoptimisetheiroperations.Withover950staffinSingaporeand320inChina,wehavehelpednumerousforeignbusinessesinareassuchasCross-borderInvestmentAdvisory,InternationalTaxAdvisory,aswellasCompanySetUpinSingaporeandothercountries.OuraffiliationtoRSMInternationalalsofacilitatesconnectionsonaglobalscale.
WehopethisguidewillprovidethenecessaryinsightsintohowyoucanmakethebestuseofwhatSingaporecanoffer.
WelcometoSingapore.Wewelcomeyoutochatwithus.
Chio kian HuatChiefExecutiveOfficerRSMinSingapore
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SINGAPore AS AN eCoNoMIC HUB ANd INTerNATIoNAL FINANCIAL CeNTreSingaporeisanislandnationinSoutheastAsia.Despiteitssmallsizewithfewnaturalresources,Singaporehastakenadvantageofitsstrategicgeographicallocationandexcellentconnectivitytobecomeoneoftheleadingeconomicandfinancialcentresintheworld.
Asaneconomichub,SingaporesmajortradingpartnersincludeChina,Malaysia,theEuropeanUnion,theUnitedStates,Indonesia,HongKong,Taiwan,SouthKorea,JapanandThailand.
Singaporestotalforeignworkforce(excludingforeigndomesticworkers)numberedabout1.13millioninJune20171,anditsmulticulturalpopulationmainlycomprisesChinese,Malays,Indians,andEurasians.English,Mandarin,MalayandTamilarethefourofficiallanguagesinSingapore,withEnglishwidelyusedinbusinessandeducation.
AkeytrendthatisexpectedtooffervastopportunitiesforbusinessesinSingaporeisrapidurbanisationinAsia.TheUnitedNationsprojectsanother2.5billion2peoplecouldbeaddedtourbanpopulationsby2050,withAsiaandAfricaaccountingforcloseto90%oftheincrease.Between2014and2050,Chinaaloneisexpectedtoadd292millionurbandwellers.
Asiasrapidurbanisationwillbringabouthugeinfrastructureneeds.From2010to2020,AsiawillneedtoinvestaboutUS$8trillioninoverallnationalinfrastructureforenergy,transport,telecommunications,waterandsanitation3.
TheriseindisposableincomesandconsumerisminemergingAsianmarketswillalsoofferSingapore-basedbusinesseswithmoreopportunitiestotargetawiderrangeofcustomersegments.
Asaninternationalfinancialcentre,Singaporehasover1,200financialinstitutionsincluding5local,122foreignand32merchantbanksin20174thatoffermanyproductsandservicesacrossvariousassetclasses.WithassetsundermanagementatS$2.7trillion(US$1.9trillion)in20165,thebankingsectorisespeciallyimportanttoSingaporesroleinfinancinglocalandregionalgrowth,forexample,infacilitatinginfrastructuredevelopment.
Inaddition,SingaporeisAsiaslargestandtheworldsthird-biggest(aftertheUnitedKingdomandUnitedStates)foreignexchangetradingcentre,accordingtoa2016TriennialCentralBankSurveybyBankforInternationalSettlements.ThisgivesfurtherevidenceofSingaporesincreasingstandingandinfluenceasaglobalfinancialcentre.
Likewise,thecitystatealsogarneredthehighestshort-andlong-termtriple-AcreditratingsfromallthreemajorcreditratingagenciesStandard&Poors,MoodysInvestorsService,andFitchRatings.However,thiscontinueddevelopmentasaregionalandinternationalfinancialcentrealsocomeswithclosesurveillancebySingaporescentralbanktheMonetaryAuthorityofSingaporeandappropriatepolicyformulation.
1 Foreign Workforce Numbers, Ministry of Manpower (www.mom.gov.sg)2 World Urbanization Prospects, 2014 Revision, United Nations3 Financing Asias 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
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http://www.mom.gov.sg
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SingaporesfinancialservicessectorisgovernedbyvariousActsandregulations,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
SINGAPoreS ATTrACTIVeNeSS AS AN INVeSTMeNT deSTINATIoNSingaporespositionasanattractivedestinationforforeigninvestorsisduetofactorssuchas: PoliticalandEconomicStability CorporateGovernanceandTransparency Pro-businessEnvironment CompetitiveTaxRates RobustIntellectualPropertyRegime HighLiteracyRate ExtensiveNetworkofTradeAgreements ExcellentConnectivityandInfrastructure RelativelyHassle-freeImmigrationProcessesforForeignInvestors
oVerVIew oF SINGAPore
http://statutes.agc.gov.sghttp://www.mas.gov.sg/
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Political and economic StabilitySingaporeisaparliamentaryrepublic,withthePeoplesActionParty(PAP)asthenationsrulingpoliticalpartysince1959.Since1978,Singaporehasbeenlargelystrike-freeandthenationspeacefulindustrialrelationshaveoftenbeenattributedtoitstripartitemodel.
Establishedin1972toformulatewageguidelinestoensureSingaporeslong-termeconomicgrowth,theNationalWagesCouncil(NWC)isatripartitebodycomprisingrepresentativesfromtheemployers,tradeunionsandgovernment.TheNWCmeetseveryyeartodeliberatewageandwage-relatedmattersandissuesrelatedguidelinesbasedonthetripartiteconsensusreached.
Corporate Governance and TransparencyHighcorporategovernancestandardsplayanimportantpartinmaintainingSingaporespositionasaninternationalfinancialcentre.TheMonetaryAuthorityofSingapore(MAS)andSingaporeExchange(SGX)havesharedoversightofcorporategovernanceoflistedcompaniessinceSeptember2007.SingaporealsohasarevisedCodeofCorporateGovernanceissuedbytheMASinMay2012.WhilecompliancewiththeCodeisnotmandatory,listedcompaniesarerequiredundertheSGXListingRulestodisclosetheircorporategovernancepracticesandexplaindeviationsfromtheCodeintheirannualreports.
SingaporeisrankedfirstworldwideintheTransparencyofgovernmentpolicymakingindicatorinWorldEconomicForumsTheGlobalCompetitivenessReport2016-2017.Italsorankedamongtheworldsleastcorruptcountriesinthereport,takingthirdplaceundertheIrregularpaymentsandbribesindicator.
Pro-business environmentSingaporehasbeenrecognisedforitsconducivepro-businessenvironment.AccordingtotheWorldBanksDoingBusiness2017:EqualOpportunityforAllreport,Singaporerankedsecondworldwideintermsoftheeaseofdoingbusiness.
Thecountryalsohasthesecond-mostcompetitiveeconomyintheworld,supportedbyfactorssuchasitsworld-classinfrastructureandstrongfocusoneducation,accordingtoWorldEconomicForumsTheGlobalCompetitivenessReport20162017.
Competitive Tax ratesSingaporesgovernmentbelievesinkeepingtaxratescompetitiveforbothcorporationsaswellasindividuals.SuchapolicyaimstomaintainSingaporesattractivenessasaforeigninvestmentdestinationandencourageentrepreneurship.
robust Intellectual Property regimeSingaporecameinfourthworldwideinintellectualproperty(IP)protection,accordingtoWorldEconomicForumsTheGlobalCompetitivenessReport20162017.ItsrobustIPregimeisbuiltonatrustedlegalsystemandstrongIParbitrationcapabilities.TosupportIPdisputeresolutioninAsia,Switzerland-basedWorldIntellectualPropertyOrganizationestablishedanArbitrationandMediationCentreinSingapore,itsonlycentreoutsideGeneva.
High Literacy rateFiguresbySingaporeDepartmentofStatisticsshowedthatSingaporehadaliteracyrateof97%amongresidentsaged15yearsandolderin2016.
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extensive Network of Trade AgreementsSingaporehasanextensivenetworkofFreeTradeAgreements(FTAs)inAsia.TheseincludebilateralFTAsandASEANregionalFTAs(refertoSingaporewithinASEANsectionofthisguideformoredetails)withkeyeconomiessuchasAustralia,China,India,JapanandtheUnitedStates.
excellent Connectivity and InfrastructureSingaporeisoneoftheworldstoptransportationhubsforseaandaircargo.Connectedtomorethan600portsinover120countries,Singaporeisthebusiestportintheworldintermsofshippingtonnage,withanaverageof140,000vesselcallsannually.
SingaporesChangiAirportisamongtheworldsbusiestinternationalairports,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
oVerVIew oF SINGAPore
http://www.contactsingapore.sg/giphttp://www.contactsingapore.sg/giphttp://www.mom.gov.sgmailto:MKTG%40RSMSingapore.sg?subject=http://www.RSMSingapore.sg
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CoMMerCIAL eNVIroNMeNT
SINGAPoreS eCoNoMYSingaporehasahighlydevelopedfree-marketeconomythatdependsheavilyonexports.In2016,itrecordedaGDPofS$410.3billion(aboutUS$305.3billion),up0.5%year-on-year.ItspercapitaGDPisalsoamongthehighestintheworldatS$73,167(aboutUS$54,000)in2016.
Singapores 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%
Source: Singapore Department of Statistics
INdUSTrIeS IN SINGAPoreAerospace engineeringSingaporeisthemostcomprehensiveaerospacehubforMaintenance,RepairandOverhaul(MRO)inAsia,accountingforaquarteroftheregionsMROoutput.Itsexistingcapabilitiesinprecisionengineeringandelectronicsalsosupportproductionofcomplexaero-enginecomponents.
SingaporesSeletarAerospaceParkprovidesaconduciveenvironmentforaerospacecompaniestooperateandcollaborate.
Clean energyThereisastrongfocusonsolarenergyinSingapore,givenitsstrategiclocationinthetropicalsunbeltandstrongsemiconductorcapabilities.Otherareasoffocusincludewindenergy,biomass,tidalenergy,smartgrids,greenbuildings,energyefficiencyandcarbonservices.
MajorenergyplayershavesetupoperationsinSingapore,attractedbyfactorssuchasitsstrongcapabilitiesinelectronics,precisionengineeringandchemicals,massmanufacturingknow-how,androbustintellectualpropertyprotectionregime.
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ChemicalsSingaporeisoneoftheleadingenergyandchemicalindustryhubsintheworld.ManyoftheworldsleadingenergyandchemicalcompanieshaveoperationsonSingaporesJurongIsland,whichhasattractedmorethanS$35billion(aboutUS$26billion)worthofinvestments.
Consumer BusinessSingaporeiswell-positionedtosupportconsumerbusinessesininnovationandregionalgrowthstrategiesduetoitscentrallocationinAsia,strongscientificandbrandmanagementcapabilities,aswellasconducivebusinessenvironment.
InstituteonAsianConsumerInsightconductsresearchandeducationprogrammestohelpininnovatingbrandsandproductstomeetAsianconsumersneeds.
Content & MediaSingaporescontentandmediasectorconsistsofvariousindustries,includingmediaowners,games,animation,visualeffectsandpublishing.Favourablefactorsforcontentandmediacompaniesincludethenationsworld-classtalent,developedinfrastructureandresearchcapabilities.Withitsstrongintellectualpropertylawsandmultilingualtalentpool,Singaporeisalsoanideallocationforcreatinganddeployingnewcontent.
electronicsSingaporeisachoicelocationforelectronicscompaniestocreateandmanagenewmarkets.Thecountryishometo: nineoftheworldstop15fablesssemiconductorcompanies; sixoftheworldstopintegrateddevicemanufacturers; theworldstopthreeharddiscmediamanufacturers;and fouroftheworldstopfiveelectronicsmanufacturingservicesproviders.
energySingaporeisAsiasleadingoiltradinghubaswellasanoilandoilproductpricingcentreintheregion.ItisalsotheleadingbulkliquidslogisticshubinAsiaandamajormarinebunkeringcentre.
Cities, Infrastructure & Industrial SolutionsSingaporeisaleadingone-stophubforengineeringsolutionsandhometoagrowingnumberofglobalengineeringdesignfirms.Nineoftheworldstop10controlandautomationcompaniesalreadyhaveasignificantpresenceinthecountry.
environment & waterThereareabout180watercompaniesinSingaporethatrepresenttheentirevaluechainfromupstreamcomponentplayers,OriginalEquipmentManufacturers(OEMs)andsystemintegratorstodownstreamEngineering,ProcurementandConstruction(EPC)playersandprojectdevelopers.
Thecountryalsonurturestheenvironmentalindustry,whichincludesenvironmentalconsultancy,wastemanagementandpollutioncontrol.
HealthcareSingaporesstandardofmedicalpracticeranksamongthebestintheworld.Therearestrategicpartnershipopportunitiesforhealthcareserviceproviderstodevelopandtestinnovativehealthcaresolutionsandsystems.
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International Non-Profit organisationsSingaporeishometoabout140InternationalNon-ProfitOrganisations(INPOs),andiswell-positionedtosupportthemasafinancialhubwithstrengthsinlogisticsandtelecommunications.
Infocomm ServicesSingaporeisrankedfirstworldwideinnetworkreadiness,accordingtotheWorldEconomicForumsTheGlobalInformationTechnologyReport2016.Itsexcellentinfrastructure,strongintellectualpropertyprotectionregime,goodconnectivityandeasyaccesstoglobaltalentattractinfocommservicescompaniestothecountry.
Infocomm ProductsLeadinginfocommproductcompanieshavesetuptheirglobalandregionalheadquartersinSingapore,coveringthefullvaluechainfromresearchanddevelopmentandsupplychainmanagementtomanufacturing,logisticsandsharedservices.
SomekeyproductsmanufacturedinSingaporeincludemission-criticalandsecurecomputingproductssuchashigh-endservers,ATMs,point-of-salessystems,networkingequipmentandsmartcards.
Logistics & Supply Chain ManagementSingaporeisatrustedandreliablesupplychainhubwithhighlyefficientcustomsandbusiness-friendlyimport/exportprocedures.
Itsseaandairportsarereadilyaccessiblethroughawell-planneddomesticroadnetwork.Singaporesworld-classandspecialisedinfrastructureincludestheAirportLogisticsParkofSingapore,theChangiInternationalLogisParkandtheBanyanLogisPark.
Marine & offshore engineeringSingaporebuildsmorethan50%oftheworldshigh-specificationoilrigsandhascloseto70%oftheglobalmarketfortheconversionoffloatingproductionstorageandoffloadingunits,accordingtotheSingaporeEconomicDevelopmentBoard.
Medical TechnologySingaporeisAsiasleadinglocationformedicaltechnology,withcommercial-scaleplantssetupbyover30medicaltechnologycompaniestoproducemedicaldevicesfortheregionalandglobalmarkets.
SingaporesmedicaltechnologysectorcontributedaboutS$10billioninoutputin2015andS$70millionhasbeencommittedundertheSectorSpecificAcceleratorprogrammetoencouragetheformationandgrowthofmedicaltechnologystart-upsinthecountry.
Pharmaceuticals & BiotechnologyMorethan30oftheworldsleadingbiomedicalsciencescompanieshaveoperationsinSingapore.
SomelocalbiomedicalresearchinstitutesincludetheBioinformaticsInstitute,BioprocessingTechnologyInstitute,GenomeInstituteofSingapore,andInstituteofBioengineeringandNanotechnology.
Precision engineeringSingaporesprecisionengineeringindustrycomprisescompaniesthatrangefromcontractmanufacturerstofullsolutionproviderswithdesign,prototyping,productionandsupplychainmanagementcapabilities.
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Professional ServicesMNCsfromawiderangeofindustriesandgeographieshaveestablishedtheirregionalorglobalheadquartersinSingapore,whichhasalsodrivendemandforprofessionalservices.
Source: Singapore Economic Development Board
eMerGING BUSINeSSeSAutomotiveAlmostallmajorOriginalEquipmentManufacturersandTier1automotivesuppliersuseSingaporetooverseetheirregionaloperations.
Singaporesstrengthsinelectronics,info-communicationsandmechanicalengineeringalsosupportgrowthofrelatedautomotiveresearchanddevelopment.
Safety & SecuritySingaporeEconomicDevelopmentBoardpartneredwiththeMinistryofHomeAffairs(MHA)toformtheSafetyandSecurityIndustryProgrammeOfficetopromotethisindustryinSingapore.
Throughthiscollaboration,platformsarecreatedwherebycompaniescanworkwiththepublicsectorthroughpublic-privatepartnershipsontheirinnovativesolutionsinaliveoperationalenvironmentinSingapore.
Natural resourcesSingaporeaimstobeanervecentrethatplaysapartinfulfillingglobaldemandforaquaculture,agriculture,metalsandminerals.
Lifestyle Products & ServicesGrowinglifestylebusinessesinSingaporeincludethoserelatingtoart,collectibles,performingartsandsports.
roboticsSingaporesmanufacturingindustryhasthehighestrobotdensityintheworldafterSouthKorea,with488robotsper10,000employeesin2016.About90%oftherobotsareinstalledinSingaporeselectronicsindustry,whichhasincreaseditsnumberofrobotinstallationssignificantlyinrecentyears.
SpaceEstablishedbythegovernmentin2013,theOfficeforSpaceTechnologyandIndustryservesasthedesignatedofficetodevelopSingaporesspaceindustry.
Sources: Singapore Economic Development Board and International Federation of Robotics
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SINGAPore ANd TrAdeTradingishighlyimportanttoSingaporeseconomy.AccordingtotheWorldTradeOrganization,SingaporestradetoGDPratiowas168.5%(20142016).Mostimportsenterthecountryduty-free.
SingaporestotaltradeatcurrentpricesamountedtoS$870.2billion(aboutUS$647.5billion)in2016.
Singapores Merchandise Trade Performance at Current Prices (20062016)
2006 20102008 2012 20152007 2011 20142009 2013 2016Year
S$billion
200
600
1000
400
800
1200
Total Trade
Total exports
Total Imports
Source: Singapore Department of Statistics
Top Trading PartnersChinawasSingaporeslargesttradingpartnerin2016,followedbyMalaysia,theEuropeanUnion,theUnitedStatesandHongKong.OthermajortradingpartnersincludeIndonesia,Taiwan,SouthKorea,JapanandThailand.
Singapores 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
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Global Maritime HubSingaporeisaglobalmaritimehubstrategicallylocatedatthesoutherntipoftheMalayPeninsula.Connectedto600portsinover120countries,Singaporeisthebusiestportintheworldintermsofshippingtonnage,withmorethan130,000vesselcallseachyear.MorefactsandfiguresaboutSingaporespositionasaglobalmaritimehubarehighlightedbelow.
Facts and Figures Morethan5,000maritimeestablishmentscontributingabout7%toSingaporesgrossdomesticproduct,andemployingmorethan170,000personnel
Hometoabout140oftheworldstopshippinggroups Topbunkering(shiprefuelling)portintheworld,withmorethan45milliontonnesofbunkersliftedin2015 Commandsabout70%shareoftheworldsjack-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.
Singapores Involvement in FTAs ASEANregionalFTAs(refertoSingaporewithinASEANsectionofthisguideformoredetails) 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
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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
Source: Singapore Department of Statistics
Singapores direct Investment AbroadSingaporesdirectinvestmentabroadincreased8.8%year-on-yeartoreachS$764.7billionin2016.
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Singapores direct Investment Abroad (2012-2016)
20132012 20152014 2016Year
S$billion
350.0
450.0
600.0
650.0
700.0
750.0
550.0
400.0
500.0
800.0
300.0
Source: Singapore Department of Statistics
Top 10 destinations for Singapores 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
Source: Singapore Department of Statistics
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GoVerNMeNT Pro-BUSINeSS SCHeMeSSingaporesgovernmentoffersvariousschemestosupportbusinessesinthecountry.SomeoftheseschemesareadministeredbytheSingaporeEconomicDevelopmentBoard(EDB)andSPRINGSingapore,bothstatutoryboardsundertheMinistryofTradeandIndustry.
EDBscorporateinvestmentarm,EDBI,investsingloballycompetitivecompanieswithhigh-growthpotential,especiallythoseinthebiomedicalsciences,information&communicationtechnology,andsmart&sustainabletechnologysectors.FormoreinformationaboutEDBI,visitwww.edbi.com.
Othergovernmentbodies,suchasInternationalEnterprise(IE)SingaporeandInfo-communicationsMediaDevelopmentAuthority(IMDA),alsosupporteligiblebusinesses.
Somepro-businessgovernmentschemesinSingaporeareshowninthefollowingtable.Moreinformationcanbefoundonthegovernmentbodiesrespectivewebsites.
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
CoMMerCIAL eNVIroNMeNT
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
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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.ItbeganwithindustrialisationafterSingaporesindependencein1965.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,arelocatedinhousingestatesequippedwithawiderangeofretailandotheramenitiessuchasparksandchildrensplaygroundstoservethedailyconvenienceandlifestyleneedsofresidents.
ThevarioustypesofHDBflatsarelistedinthefollowingtable.
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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
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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)
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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),whichformsthelightrailcomponentofSingaporesrailnetwork.Firststartedin1999tosupportthegovernmentsaimoffacilitatingintra-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.
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STUdYING IN SINGAPoreSingaporeseducationsystemfallsunderthepurviewoftheMinistryofEducation(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.
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ranking of Singapores education System by Accolades
ranked by How Singapores education System is ranked
PrIMArY edUCATIoN
WorldEconomicForumsGlobalCompetitivenessReport2016-2017
Qualityofprimaryeducationrankedfourthoutof138countries Topinenrolmentforprimaryeducation,achievinguniversalprimaryeducation
HIGHer edUCATIoN (SeCoNdArY & TerTIArY edUCATIoN)
WorldEconomicForumsGlobalCompetitivenessReport2016-2017
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,theMOEhasintroducedtheDirectSchoolAdmissionSecondary(DSA-Sec)ExercisethatisconductedbeforethereleaseofthePSLEresults.Differentschoolsmayconsiderdifferentcriteriasuchassportingabilityorothertalents,whichisintendedtoconsideramorediverserangeofachievementsandtalentsinstudentsseekingplacementintheschoolofchoice.Itservesasanalternativeavenueforprimaryschoolstudentstobeconsideredforadmissiontosecondaryschools.StudentswhohaveoptedforaschoolundertheDSA-SecExercisemustachievePSLEresultsthatwouldenablethemtobeeligibleforadmissiontoacourseofferedbytheirchosenDSA-Secschools.
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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.
StudentsintheExpressstreamwilltaketheGCECambridgeOLevelexaminationsattheendoffouryears,whilestudentsintheNormal(Academic)andNormal(Technical)streamwilltaketheGCENlevelexaminationattheendoffiveyears.Theirresultsintheseexaminationswillbeanimportantadmissioncriterionconsideredbyvariouspost-secondaryinstitutions.
Therearemorethan150secondaryschoolswithdifferentannualenrolmentsinSingapore.
Junior Colleges and Centralised InstituteStudentshavethreeoptionsforpost-secondaryeducation:Pre-universityeducation(inJuniorColleges(JCs)oracentralisedinstitute),Polytechnic,orInstituteofTechnicalEducation(ITE).
Pre-universityeducationpreparesstudentsfortheGCEALevelExaminationattheendofatwo-yearJCorthree-yearcentralisedinstitutecourse.
PolytechnicsTherearecurrentlyfivepolytechnicsinSingapore,eachofferingmorethan35courses.Thiseducationpathwayistypicallymorepractice-centred,andseekstotrainstudentsinrelevantandspecificskillsfortheworkplace.
Integrated Programmes for Secondary and Post-secondary educationSince2004,theMinistryofEducationintroducedIntegratedProgrammes(IPs)inselectedsecondaryschoolsandJCs,whichgiveacademicallystrongstudentstheoptiontochooseanintegratedsecondaryandJCeducationwheresecondaryschoolpupilscanproceedtotheJCwithouttakingtheGCEOLevelExaminations.ThetimefreedupfromnothavingtopreparefortheOLevelExaminationswillallowthosewhoareacademicallystrongertoengageinbroaderlearningexperiencesthroughagreaterrangeofacademicandnon-academiccurricula.TheIPsleadtoeithertheALevelExaminations,InternationalBaccalaureate,orotherdiplomas,dependingontheprogrammeofferedbytheschoolofchoice.
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School of the Arts (SoTA)Setupin2004,SOTAisSingaporesfirstnationalpre-tertiaryspecialisedartsschooltoofferasix-yearuniqueintegratedartsandacademiccurriculumforyouthsaged13to18.ItcomesundertheambitoftheMinistryofCulture,CommunityandYouth(MCCY)insteadoftheMinistryofEducation.
Theadmissionprocessisdifferentfromthattypicaltosecondaryschoolsorintegratedprogrammes.Theselectionprocessinvolvesacognitiveexercise,audition,personalinterview,andportfolioreview.
Itisopento: CurrentPrimary6studentswhoaresittingforPSLEin2014(DSA-Secondarycategory) StudentswhowillcompletetheequivalentofaPrimary6educationby2014(DSA-Secondary,Non-MOEcategory)
CurrentSecondary4ExpressandSecondary5Normal(Academic)StreamstudentswhoaretakingtheGCEOLevelExaminationsin2014(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)
TheNTUandNUSareSingaporesmostestablisheduniversitiesandwellregardedinternationally.Theotherthreeuniversitiesaremorespecialisedandhaveasmallerenrolmentcohortannuallythantheothertwo.Forexample,SMUoffersabusiness-focusedcurriculum,SUTDfocusesontechnology-intensive,designeducationinengineeringandarchitecture,andtheSIToffersindustry-focusedprogrammesforthegrowthsectorsoftheSingaporeeconomy.
Agraduatemedicalschool,Duke-NUSGraduateMedicalSchoolSingapore,wasalsocreatedthroughapartnershipbetweenDukeUniversitySchoolofMedicineandNUStoincreaseSingaporescapacitytodevelopavibrantbiomedicalhub.
Apartfromthefiveautonomousuniversities,thereisalsoaprivateuniversity,SingaporeInstituteofManagement(SIM),whichprovidesuniversityeducationforworkingprofessionalsandadultlearners.Inaddition,thereareseveralotherbranchcampusesofwell-regardedforeigntertiaryinstitutionslocatedlocally.
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Foreign System Schools (FSS)Althoughthepublicschoolsystemoffersahighqualityeducationframework,someexpatriatesmaypreferenrollingtheirchildreninForeignSystemSchools(FSS).ThismayespeciallybethecaseforstudentswhohavenotusedEnglishasthemediumofinstructionpriortocomingtoSingapore.
Therearecurrentlymorethan30FSSimportedfromvariouscountriesthatfollowdifferenteducationsystemsoftencongruentwiththoseofferedinthehomecountry.AsstipulatedbytheImmigrationandCheckpointsAuthority,allforeigners,exceptDependantsPass/ImmigrationExemptionOrderholders,whowishtostudyinanFSSarerequiredtoapplyforaStudentsPass.Since20June2011,FSSregisteredwiththeCouncilforPrivateEducation(CPE)needtobeawardedwithEduTrustcertificationtoofferschoolplacementforinternationalstudents.StudentsPassapplicationswillbeacceptedonlyiftheyareforinternationalstudentswhoareenrolledinanEduTrust-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
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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.
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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.Acopyofthestatutoryreportandtheauditorsreport,ifany,mustbelodgedwiththeRegistraratleastsevendaysbeforethedateofthestatutorymeeting.
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ANNUAL reQUIreMeNTS For CoMPANIeSEverycompanymustappointoneormoreauditorstoreporttoitsmembersontheaccountsofthecompanyunlessitisdormantorasmallcompany.Adormantcompanyreferstoacompanywithnoaccountingtransactions.
Witheffectfrom3January2016,adormantcompanyisexemptfrompreparingfinancialstatementsif:a. Itisnotlisted(ornotasubsidiaryofalistedcompany);b. Dormantfortheentirefinancialyear;andc. TotalassetsofthecompanymustbelessthanS$500,000.Foraparentcompany,theconsolidatedtotal
assetsofthegroupatanytimewithinthefinancialyearmustnotexceedS$500,000.
Theintroductionofthesmallcompanyconceptiseffectivefromthefinancialyearcommencingonorafter1July2015.Toqualifyasasmallcompany,acompanymustbeaprivatecompanythatfulfilsatleasttwoofthefollowingthreequantitativecriteriaineachoftheimmediatepasttwofinancialyears:
a. TotalannualrevenueofnotmorethanS$10millionb. TotalassetsofnotmorethanS$10millionc. Numberofemployeesofnotmorethan50
Ateachannualgeneralmeeting(AGM)ofthecompany,thedirectorsofthecompanyarerequiredtopresentanauditedorunaudited(asthecasemaybe)setoffinancialstatementsthatgivesatrueandfairviewofthecompanysaffairsintheprecedingfinancialyear.
ThefirstAGMofacompanymustbeheldwithin18monthsfromthedateofitsincorporationandthereafter,subsequentAGMsmustbeheldonceeverycalendaryearandnotmorethan15monthsafterthelastAGM.Theauditedorunauditedaccounts(asthecasemaybe)tobelaidbeforetheshareholdersattheAGMshouldbemadeuptoadatenotmorethansixmonthsbeforethedateoftheAGM.
AprivatecompanymaydispensewiththeholdingofAGMs.AllmatterstobedoneattheAGM,suchaslayingofaccountsandappointmentofauditors,canberesolvedordoneviawrittenresolutions.
Everycompanyisrequiredtofileitsannualreturnincludingwhereapplicable,itsauditedaccountsand/orfinancialstatementsinXBRLformatwithACRAwithin30daysafteritsAGM.
reGISTrATIoN oF A ForeIGN CoMPANYProceduresThefirststepintheregistrationofabranchofaforeigncompanyinSingaporeistoseekACRAsapprovalofthenameofthecorporation.Oncethenameisapproved,theregistrationdocumentsandinformation,whenready,canbee-filedwithACRAtoregistertheSingaporebranchoftheforeigncompany.
UndertherequirementsoftheCompaniesAct,Cap.50,aSingaporebranchmusthaveatleastoneauthorisedrepresentativewhomustbeordinarilyresidentinSingapore.
TheauthorisedrepresentativeofaforeigncompanyisanswerablefortheexecutionofallactsandmattersrequiredtobedonebytheforeigncompanyundertheCompaniesAct,Cap.50.Theauthorisedrepresentativeisalsopersonallyliableforanypenaltiesimposedontheforeigncompanyforanycontravention.
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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,themanagerisresponsibleforsubmissionoftheLLPstaxreturntotheInlandRevenueAuthorityofSingapore(IRAS).
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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 MinimumTwoMaximum20(exceptforprofessionalfirms)
MinimumTwoNomaximumnumberofpartners
MinimumOnedirectorandoneshareholder(whomaybethesameperson)
Perpetualsuccession
No No Yes Yes
Liabilityofowners/shareholders
Soleproprietorhasunlimitedliabilities
Partnershaveunlimitedliabilities
Notpersonallyliablefortheconductofotherpartners,transactionsorliabilitiesoftheLLPunlessitisforhisownwrongfulactsornegligence
Limitedtheshareholderisnotliableforthedebtsofthecompany
Internalstructure Completeflexibility Completeflexibility Completeflexibility Ownermanagementdivide
Auditedaccountsrequirement
No No No Yes(exceptforexemptprivatecompanywithturnoverlessthanS$5millionordormantcompanyasdefinedintheAct)
Filingoffinancialstatements(and/orfinancialstatementspreparedinXBRLformat)withACRA
No No No Yes(withsomeexceptions)
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Sole Proprietorships
General Partnerships
LLPs Companies
Filingofannualreturn
No No No Yes
Annualdeclarationofsolvency
No No Yes Yesanexemptprivatecompanyneedstoprovidesolvencystatement
CompliancewithFinancialReporting
Standards
No No NoLegislationdoesnotprescribetheaccountingstandardstobeused.TheLLPActmandatesproperrecordkeepingofaccountstoenablethetrueandfairviewofaccountstobepresented
Yes
Appointmentofamanagerwhois
ordinarilyresidentinSingapore
Yes Yes Yes NA
Appointmentofacompany
secretarywhoisordinarilyresidentin
Singapore
NA NA NA Yes
Incometax Wherethesoleproprietorisanindividual,hisincomefromthesoleproprietorshipwillbetaxedbasedonpersonalincometaxrate
Whereapartnerisanindividual,hisshareofincomefromthegeneralpartnershipwillbetaxedbasedonpersonalincometaxrate
Whereapartnerisanindividual,hisshareofincomefromtheLLPwillbetaxedbasedonpersonalincometaxrate
Corporatetaxrateof17%
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Sole Proprietorships
General Partnerships
LLPs Companies
Terminationofbusiness
SimplefileanoticeofterminationofbusinesswithACRAuponpaymentofaprescribedfee
SimplefileanoticeofterminationofbusinesswithACRAuponpaymentofaprescribedfee
Complexmustundergolegalproceduresofwindingup;professionalchargeswillbeincurred;strikeoffapplicationisavailableiftheconditionsstipulatedbyACRAcanbemet
Complexmustundergolegalproceduresofwindingup;professionalchargeswillbeincurred;strikeoffapplicationisavailableiftheconditionsstipulatedbyACRAcanbemet
Note: Information stated in the table above is correct as at the date of publication.
Contributed by:FMG Corporate Services Pte Ltd8WilkieRoad#03-01WilkieEdgeSingapore228095Tel: +6565337600Fax:+6565947855Email:[email protected]:www.FMG.com.sg
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mailto:css%40fmg.com.sg%20?subject=http://www.FMG.com.sg
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oFFICe SPACeSingaporehasatotalofficespacesupplyof84.41millionsquarefeet,with46%locatedwithintheCentralBusinessDistrict(CBD)precinctthefinancialandcommercialhubofSingapore.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.
ArisingfromthegovernmentsinitiativetodecentralisethecommercialcentresinSingapore,newbusinessprecinctsarebeginningtodevelopinregionalcentresinrecentyears.TheMetropolis,atwin-towerofficedevelopmentwithintheBuonaVistabusinessprecinct,hasmanagedtoattracthigh-profileestablishedbusinesstenantstosetuptheirbasesthere.Meanwhile,manycompanieshavealsorelocatedtheirback-endoperationstobusinessparksinareassuchasMapletreeBusinessCityandChangiBusinessPark.
Otherconsiderationsincludecustomersexpectations,proximitytosuppliersandlocationofkeycompetitors.
AccessibilityEasyaccessibilitytopublictransport,especiallytrainservices,iscriticalinstaffrecruitmentandretention.Atthesametime,itisimportanttohaveeatingplacesandotheramenitieswithincloseproximitytobusinesslocations.
Building SpecificationsThefacadeofthebuildingisimportantforbusinesseswherecorporateimageiscritical.Thebuildingspowersupplycapacity,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.
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TYPICAL oFFICe LeASe TerMSrentalTherentalrateisusuallyquotedasgrossrent,comprisingabaserentandservicechargepaidmonthlyinadvance.TherentalissubjecttotheGoodsandServicesTax(GST)thatistobebornebythetenant.
Service ChargeTheservicechargerangesfromS$1.00toS$1.40persquarefootandisgenerallyincludedinthegrossrent.Generally,servicechargecoversairconditioningduringnormalofficehours,buildingmanagementandmaintenanceofcommonareasinthebuilding.Thisissubjecttoadjustmentsiftherearechangesinthemaintenancecostandsuchincreasesarepayablebythetenants.
Security depositAsecuritydepositisusuallypayableuponconfirmationoftheleaseandrefundablewithoutinterestattheendofthelease.Thesecuritydepositistypicallyequivalenttothreemonthsgrossrent,orequivalenttosixmonthsgrossrentfortenantswithapaid-upcapitaloflessthansixmonthsgrossrent.Theexactamountissubjecttonegotiation.Abankersguaranteemaybeusedasanalternativetoacashdeposit,subjecttonegotiation.
Lease PeriodTheleaseperiodistypicallythreeyearsorfiveyearswithanoptiontorenewatarenttobeagreedorreviewedaccordingtotheprevailingmarketrate.Formultiplefloortenanciesoranchortenants,longerleasesmaybenegotiated.
InsuranceTenantsarerequiredtotakeuppublicliabilityinsurance.
renovation depositTenantsarerequiredtoplacearenovationdepositwiththelandlordtocoveranydamagescausedtothecommonareasduringtherenovationperiod.Thisdepositisrefundedwithoutinterestuponcompletionoftherenovationworks.
Legal FeeItiscommonpracticethattenantsbearthelandlordslegalcostsinrelationtothepreparation,negotiationandexecutionoftheleasedocument.
Stamp dutyStampdutyisataxoncommercialandlegaldocuments,whichrecordandgiveeffecttotransactions.Itispayablebythetenantsonleases.
Property TaxPropertytaxispayablebythelandlord.However,whenthereisanincreaseinthepropertytaxduringtheleaseterm,landlordsreservetherighttopassontheincreasetotenants.
rent-free and Fitting out PeriodsDependingonthesizeofthepremisesandprevailingmarketconditions,therent-freeandfittingoutperiodcanrangefromonemonthtothreemonths.Mostlandlordswillwaivethepaymentofservicechargeduringthisperiodalthoughtheremaybeexceptions.
UtilitiesTenantsarerequiredtobearthecostofmakingtheirownsupplyarrangementsandutilitiesconnections.
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Air ConditioningOfficehoursairconditioningistypicallyprovidedwithintheservicechargewhereasafterofficehoursairconditioningischargeableonausebasis.Tappingthebuildingsairconditioningsystemforauxiliaryairconditioningisalsochargeableonausebasis.Generally,thenormalofficehoursarefrom8amto6pmonweekdaysand8amto1pmonSaturdays.
ParkingSeasonparkinglotsaretypicallyallocatedtotenantsbasedonthetotalarealeasedatamonthlychargeofapproximatelyS$150toS$250forbuildingsoutsidetheCBDandS$300toS$500forbuildingsinsidetheCBD,excludingGoodsandServicesTax(GST).
MaintenanceTenantsaretypicallyresponsiblefortherenovation,repairandcleaningoftheunitsinterior.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.
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Thisissubjecttochangesinthemaintenancefee.Anycostincreaseispayablebythetenant.
Security depositTheamountofsecuritydepositpayabledependsonthetotalleaseterm.Foraone-yearleaseterm,theamountofsecuritydepositwillbeonemonthgrossrent.Foratwo-yearleaseterm,twomonthsofsecuritydepositwillberequired.Insomecases,landlordsmayrequestuptosixmonthsofsecuritydeposit.Thesecuritydepositisrefundablewithoutinterestattheendofthelease,subjecttothetermsandconditionsofthelease.Abankersguaranteemaybeanalternativetocashdeposit,subjecttonegotiation.
Lease PeriodTheleaseperiodisusuallytwoorthreeyearswiththeoptiontorenewforanotheronetothreeyearsbasedonprevailingmarketrates.Forleaseofasizeablearea,landlordsareopentolongerleases,subjecttonegotiation.
Insurance and Fitting out depositThroughoutthedurationofthelease,thetenantwillberequiredtomaintainadequateinsurancecoverageforfireandperilprotection.Thepremiumdiffersfrombuildingtobuilding.
Itisalsocommonpracticefortenantstolodgearenovationdepositwiththelandlordtocoverthecostsofrectifyinganydamagecausedbythecontractortocommonareasofthebuilding.
Thedeposit,afterthedeductionofcostsforrectification(ifany),willberefundedtothetenantuponcompletionoffittingout.
renovation CostsRenovationcostsaredependentontheclientsspecificationsandnatureofbusiness.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.
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Stamp dutyStampdutyisachargeleviedonalldocumentsthatareofficiallystampedbythegovernmentauthority.Itisapplicabletodocumentspertainingtotheleaseandnormallybornebythetenants.Thedutypayableisdependentonthesizeoftheleasetransaction.
Sellers Stamp dutyOn11January2013,thegovernmentannouncedthatasellersstampduty(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,repairandcleaningoftheunitsinterior.Maintenanceandrepairstotheexterioroftheunit,suchasthecommonareas,arecarriedoutbytheownersortheManagementCorporation(formulti-ownerbuildings).
reinstatementNormally,reinstatement(orrestoringtheunittoitsoriginalcondition)isrequireduponterminationofthelease.Thisistobediscussedandagreeduponbybothpartiesatthestartofthenegotiationandwillbeindicatedinthetenancyagreement.Itiscommonmarketpracticeforthetenanttorestoretheunittothebare/originalconditionunlessotherwisestated.
Assignment of LeaseAssignmentortransferofleasereferstothetransferofestates,rights,titleandinterestinthepropertyfromtheassignor(seller)totheassignee(buyer).Thispolicyensuresthatindustrialistswhohaveleasedindustriallandbasedontheirproposedbusinessplansremaincommittedforasustainedandreasonableperiodoftime,whilealsoallowinglesseestoexitongroundsofgenuinebusinessreasons.
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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)
Leaseswith30yearsremaining fiveyearsfromdateoflegalcompletionofassignment
Leaseswith>30yearsremaining 10yearsfromdateoflegalcompletionofassignment
Allthird-partyfacilityproviderlessees Leaseswith30yearsremaining 10yearsfromdateoflegalcompletionofassignment
Collectively,tooccupyatleast50%GFAandeachtooccupyminimally1,500squaremetres
Source: Jurong Town Corporation (JTC)
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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,anislandapproximately20minutesdrivefromtheCBD.
ForeIGNerS reNTING A HoMe IN SINGAPoreLease PeriodTheleaseperiodforresidentialunitsinSingaporeisusuallytwoyearswithanoptiontorenew.Therentfortheinitialleasetermisusuallyfixedandwillberenegotiatedatprevailingmarketrateswhentheoptiontorenewisexercised.Leasesforaone-yearperiodareoccasionallyavailable.
Adiplomatic(orbreaklease)clauseisincludedintheleaseandexercisableafter12monthsofatwo-yearlease.Forleaseperiodsofoneyear,landlordsprefernottohaveadiplomaticclausealthoughincertaincases,itispossibletonegotiateforasix-monthdiplomaticclause.Forpre-terminationofthelease,thetenantisrequiredtogivetwomonthsnoticeorpaytwomonthsrentinlieutothelandlord.
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.Abankersguaranteeisnotacceptable.
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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.
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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,suchpurchaseswouldbesubjecttorestrictionsthepropertymustbeowner-occupiedandtheforeignhomebuyerisonlyallowedtoownonerestrictedresidentialpropertyatanyonetimeinSingapore.TheseforeignhomebuyersalsohavetoseekapprovalfromtheLandDealings(Approval)UnitofSingaporeLandAuthorityfortheirSentosaCovepurchases,althoughtheprocessisquickercomparedwithconventionalapprovals.
LoansAsatJune2013,theMonetaryAuthorityofSingapore(MAS)introducedaTotalDebtServicingRatio(TDSR)framework,witharefinementofLoan-to-Value(LTV)ruleson11March2017.ThedebtservicingframeworkappliestoborrowersseekingtotakepropertyloansorcreditfacilitiessecuredbypropertyfromanybankinSingapore.
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Thedetailsofthenewframeworkareasfollows:
Framework requirements details
Total debt Servicing ratio (TdSr)
Overview
TheTDSR,givenbytheformulabelow,cannotexceed60%.
MonthlytotaldebtobligationGrossmonthlyincome
Appliestoborrowerswhoareapplyingforcreditorre-financingfacilitiesforthepurchaseofpropertyorwherethefacilityisotherwisesecuredbyproperty
CoverspropertiesinandoutsideofSingapore DoesnotapplytomortgageequitywithdrawalloanswithLoan-to-Value(LTV)ratioequaltoorbelow50%
Monthlytotaldebtobligations
Takeintoconsiderationborrowersoutstandingpropertyandnon-propertydebtobligationswhencomputingmonthlytotaldebtobligations
Applyaspecifiedmedium-terminterestrateof3.5%forhousingloansand4.5%fornon-residentialpropertyloan,ortheprevailingmarketinterestrate,whicheverishigher,tothepropertyloanthattheborrowerisapplyingforwhencalculatingtheTDSR
Grossmonthlyincome
GrossmonthlyincomeexcludingCPFemployercontribution 30%haircutforvariableincome,e.g.bonuses,commissions,allowances,rental
Canincludecertaineligiblefinancialassets,subjecttohaircutsandanamortisationscheduleover48monthsforconversionintoincomestreams
Exemption
Re-financingloanbyborrowerswhoareowneroccupiersand: Theoptiontopurchasewasgrantedpriorto29June2013 Theresidentialpropertyistheonlypropertyownedbytheborrower
Nootheroutstandingpropertyloanintheborrowersname Bridgingloans,underwhichanybalanceoutstandingshallberepaidwithinsixmonths,areexemptedfromtheTDSRrequirements
ExcludemonthlyrepaymentofexistingresidentialpropertyloanswhencomputingtheTDSRfortheHDBflatorexecutivecondominiumtobeboughtdirectlyfromdeveloper
x100%
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Framework requirements details
Application of Loan-to-Value Limits
Mortgagorofpropertyloans
Borrowersnamedonapropertyloanarealsotobethemortgagorsoftheresidentialpropertyforwhichtheloanistaken
BorrowersaresubjecttoTDSRassessment
Guarantorofpropertyloans
GuarantorswhoarestandingguaranteeforborrowersotherwiseassessedbyfinancialinstitutionsatthepointofapplicationforthehousingloananddonotmeettheTDSRthresholdforapropertyloanaretobebroughtinasco-borrowers.
Income-weighted
averageageforloantenure
provision
Inthecaseofjointborrowers,theincome-weightedaverageageofborrowerswillbeusedwhenapplyingtherulesonloantenure.
Sources: Monetary Authority of Singapore, Knight Frank Research
Limitations on Loan-to-Value (LTV) ratioInJanuary2013,MASloweredtheLTVlimitsforhousingloanstoindividualswithoneoutstandinghousingloanfrom60%to50%,andfrom60%to40%forindividualswithtwoormoreoutstandinghousingloans.LoanswithlongertenuresfacedeventighterLTVlimits.TheLTVlimitforhousingloanstonon-individualswasalsoreducedto20%.
Interest ratesTherearetwotypesofinterestratesbeingofferedbybanksfloatingratesandfixedrates.
However,banksmayofferamixtureoffloatingandfixedratesfordifferentsituations.Thereisusuallyaminimumloanperiodofthreeyearsi.e.apenaltywillbeimposedonearlyredemption.
Interestratesandmortgagepackagesvaryfrombanktobank.Ifyouarebuyingthepropertyunderacompanysname,theinterestratewillbeapproximately0.5%to1%higherperannum(dependingontheloanamount,marketconditionsandratesofferedbydifferentbanks),comparedwithbuyingunderapersonalname.
Payment TermsPaymenttermsvarywhenpurchasingfromdevelopersorfromprivateindividualownersasshownbelow.
Purchase of Private Properties from Housing developersDevelopersnormallyofferprogressivepaymentschemesfollowingthestagesofconstruction.
Purchase of Private Properties from Individual owners Private Treaty
event Payment to be Made Time Frame for Payment
IssueofOptiontoPurchase Bookingfee,usually1%ofthepurchaseprice
UponissuanceoftheOptiontoPurchase
UponexercisingOptiontoPurchase Deposit,usually4%ofthepurchaseprice
WithintwoweeksfromissuanceofOptiontoPurchase
Completionofpurchase,sellerhandskeysovertopurchaser
Remaining95%ofthepurchaseprice SixtoeightweeksfromthetimetheOptiontoPurchaseisexercised
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Stamp duty and Legal FeeFrom12January2013onwards,foreignerswhowanttoacquirearesidentialpropertyinSingaporehavetopayanAdditionalBuyersStampDuty(ABSD)of15%onthehigherofthetotalpurchasepriceormarketvaluation.ThisABSDcomesontopofthestandardBuyersStampDuty(BSD).TheBSDisimposedonthehigherofthetotalpurchasepriceormarketvaluation.AquicksummaryoftheABSDandBSDisshowninthetablebelow:
BSd and ABSd rates for Citizens, Singapore Permanent residents (Prs) and Foreigners
Profile of Buyer BSd ratesABSd rates
(from 12 January 2013)
Foreignerbuyingresidentialproperty
1%ofthefirstS$180,000
2%ofthenextS$180,000
3%oftheremainder
15%
Sing