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Online News Sources
The Straits Times: http://straitstimes.asia1.com.sg/
The Business Times: http://business-times.asia1.com.sg/
Singapore News: http://singaporenews.net/
Business Environment
Company law and securities regulation are undergoing changes as new
legislation is being brought into force or being updated. The Monetary
Authority of Singapore is the regulator for the banking, insurance,
securities and futures industries. Under the Business Registration Act,
any person who wants to start a company or business in Singapore must
first register with the Registrar of Companies and Businesses. Overseas
companies may open a representative office as a temporary facility or
register as a branch of a foreign company. A branch of a foreign
company in Singapore must appoint two local agents in Singapore to
represent the company. Foreign companies must file an annual report and
audited accounts of its Singapore branch. The Companies Act requires
companies to have at least two directors, one of whom must be an
ordinary resident. Private companies are locally incorporated companies
with 50 or less shareholders. Public companies are locally incorporated
companies where the number of shareholders can be more than 50 members
and the company may raise capital by offering shares and debentures to
the public.
A business firm is either a sole-proprietorship or a partnership.
Individuals and companies registering business firms need not be
Singaporeans or incorporated in Singapore. But in all cases, the
manager of a business firm must be a Singapore resident. Partnerships
may have between two and twenty partners. If there are more than twenty
partners, the business entity must be registered as a company under the
Companies Act, Cap.50.
Taxes
The general corporate income tax rate is 20% from the 2004
financial year. From assessment year 2002 onwards, a partial exemption
is granted to the first S$100,000 of chargeable income. The exemption
is not available for Singapore dividends, income already under a
concessionary rate and income such as interest, rent and royalties
derived by non-resident companies that is subject to a final
withholding tax. A concessionary tax rate of 10% or lower is available
for entities engaged in certain offshore activities, including those
under the financial sector incentive scheme, offshore banking, offshore
leasing, offshore insurance and reinsurance, offshore global trading,
international art and antique dealers, credit rating agency, cyber
trading, finance and treasury centres and operational headquarters
companies. Shipping enterprises transporting outbound passengers, mail,
livestock or goods from Singapore are exempt from tax.
In his February 2005 Budget, Prime Minister and Minister for
Finance, Lee Hsien Loong announced a phased cut in income tax and a
series of new tax incentives designed to boost Singapore as the
“premier wealth management center” in Asia. To further grow this
industry, start-up fund managers will be given a 12 month grace period
to meet the requirement that 80% of share capital must come from
foreign investors under the tax incentive scheme and foreign charitable
trusts will be given tax exemption on foreign income earned, without
restrictions on expenditure levels or where the funds are spent.
To deepen and broaden capital markets, the Government will confer a
10% income tax rate on approved companies in securities borrowing and
lending, including intermediaries. The Commodity Derivative Trading
incentive will also be enhanced, with a concessionary tax rate of 5% on
qualifying income from trading exchange-traded commodity derivatives.
To attract more Real Estate Investment Trust (REIT) listings, stamp
duty on the instruments of transfer of Singapore properties into REITs
to be listed, or already listed on the SGX, will be waived for a
five-year period. Most of the qualifying preconditions for tax
transparency will also be removed. To attract foreign non-individual
investors to the REIT market, the withholding tax on REIT distributions
will be lowered from 20% to 10% for a five-year period.
For individuals government has reduced the top marginal personal
income tax rate from 22% to 20% by 2007. Marginal tax rates for all
other brackets are also being reduced correspondingly.
Stock Exchange
The Singapore Exchange Limited (SGX) was inaugurated on 1 December
1999, following the merger of two established financial institutions -
the Stock Exchange of Singapore (SES) and the Singapore International
Monetary Exchange (SIMEX). It is Asia-Pacific's first demutualised and
integrated securities and derivatives exchange. As at July 2005, there
were 638 listed companies with a market capitalisation of over S$423
billion.
Listed companies and securities market operations are regulated by
the Monetary Authority of Singapore and come under the recently enacted
Securities and Futures Act and the Financial Advisors Act. The
legislation is expected to be phased in over the course of the next few
years.
Key Contacts
Singapore Exchange Ltd.
2 Shenton Way
#19-00 SGX Centre 1
Singapore 068804
Tel: (65) 6236 8888
Fax: (65) 6535 6994
Internet: www.sgx.com
Monetary Authority of Singapore
10 Shenton Way MAS Building
Singapore 079117
Tel: (65) 6225 5577
Fax: (65) 6229 9491
Internet: www.mas.gov.sg
Registry of Companies and Businesses
10 Anson Road
#05-01/15 International Plaza
Singapore 079903
Tel: (65) 6325 3731
Fax: (65) 6225 1676
Internet: www.gov.sg/rcb/information
Key Stats
Country Information: Singapore became an independent republic in
1965 after separating from the federation of Malaysia. Prior to joining
the federation in 1959, Singapore was a UK crown colony.
Population (2005 est.,): 4,425,720 (including resident foreigners).
Ethnic groups: Chinese 77%, Malays 14%, Indians 8%. Malay is the
national language. Chinese, English, and Tamil are official languages.
English is used by government.
Capital: Singapore (country is a city-state)
Currency: US$1 = S$1.67 Singapore dollar (September 2005)
Legal System
Singapore has a High Court, a Court of Appeal, and
subordinate courts. The High Court exercises original criminal and
civil jurisdiction in serious cases as well as appellate jurisdiction
from subordinate courts. The chief justice, senior judge, and six
judges are appointed by the president. Appeals from the High Court are
heard by the Court of Appeal. The right of appeal to the Privy Council
in London was abolished effective April 1994.
Government
Parliamentary republic. Singapore has a president as
chief of state, and a unicameral parliament headed by a prime minister
and a cabinet. The president is elected for a six-year term and
exercises powers over legislative appointments, government budgetary
affairs, and internal security matters. The prime minister is the head
of government. The prime minister is the leader of the political party
or coalition of parties having the majority of seats in 90-member
parliament. Parliament consists of 84 members elected by universal
suffrage and six members nominated by the president. The maximum term
of any one parliament is five years. A constitutional provision
requires there must be at least three sitting opposition members, even
if fewer than three are elected. Nominated members enjoy the same
privileges as elected members but cannot vote on constitutional matters
or expenditures of funds. Voting is compulsory in elections.
Executive (uppercase indicates the family name of the individual)
President: Sellapan Ramanathan Nathan (S.R. Nathan)
Prime minister: Lee Hsien Loong
Politics
People's Action Party (PAP), Workers' Party (WP),
Singapore Democratic Alliance, Singapore Democratic Party, Democratic
Progressive Party. In the last general election on 4 November 2001 the
governing People's Action Party (PAP) won 82 seats and 75.3% of the
vote. The Workers' Party won one seat. The Singapore Democratic
Alliance won one seat. The next election is due to be held by March
2007. The last presidential elections were held on 29 August 2005.
President Nathan was sworn in for a second term on 1 September 2005.
Economy
Singapore, a highly developed and successful free market economy,
enjoys a remarkably open and corruption-free environment, stable
prices, and a per capita GDP equal to that of the Big 4 West European
countries. The economy depends heavily on exports, particularly in
electronics and manufacturing. It was hard hit in 2001-03 by the global
recession, by the slump in the technology sector, and by an outbreak of
Severe Acute Respiratory Syndrome in 2003, which curbed tourism and
consumer spending. The government hopes to establish a new growth path
that will be less vulnerable to the external business cycle and will
continue efforts to establish Singapore as Southeast Asia's financial
and high-tech hub. Fiscal stimulus, low interest rates, a surge in
exports, and internal flexibility led to vigorous growth in 2004, with
real GDP rising by 8 percent.
Labour Force ( Dec 2004)
2.2 million. Unemployment rate: 3.7%
Government Accounts (2004-2005 budget)
Operating revenues:
S$27.81 billion); total expenditure:S$29.22 billion). The budget
forecasts a total deficit of S$0.44 billion. The Government expects to
run a modest overall budget surplus of $210 million in FY2005, after
taking into account all the tax changes, projected income from
investment of reserves, and special transfers announced in the Budget
Statement.
Public Holidays (2005)
1 January (New Year's); 9-10 February
(first and second days of Chinese New Year); 2 February (Monday after
Hari Raya Haji); 25 March (Good Friday); 1 May (Labour Day); 22 May
(Vesak Day); 9 August (National Day); 1 November (Deepavali); 3
November ( Hari Raya Puasa); 25 December (Christmas Day).
Time Zone
GMT plus 8 hours. There is no summer time clock change
Financial Year : 1 April - 31 March
Restaurant Guide
We recommend:
Raffles Grill
Address: 1 Beach Road (Historic District)
Tel: (6) 337 1886
E-mail: raffles@raffles.com
Imperial Herbal Restaurant
41 Seah Street
Singapore 188396
Tel: +65 6337 0491
Cantonese cuisine.
L'Aigle d'Or
83 Duxton Street
Singapore 089540
Tel: +65 6227 7678
French cuisine.
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