Singapore remained one of the most popular destinations for doing business in 2024. During the year, approximately 53,443 new companies were incorporated, including about 4,400 in December alone. These numbers reflect the city-state’s consistent appeal to entrepreneurs and businesses worldwide.
Looking ahead to 2025, Singapore’s business outlook remains positive, a topic we’ll discuss further in this blog post. To maintain a pro-business environment, the government continues to enhance its regulatory framework and introduce new incentives aimed at supporting businesses.
Below, we will review the key regulatory updates from December 2024 that are particularly relevant for business owners. Whether you are running a company in Singapore or planning to establish one, these updates will help you stay informed.
Optimistic Business Outlook in Singapore for Q1 2025
Business sentiment in Singapore reflects cautious optimism for the first quarter of 2025, as the Singapore Commercial Credit Bureau’s (SCCB) Business Optimism Index (BOI) rose for the sixth consecutive quarter. The BOI now stands at +5.45 percentage points, up from +5.06 in Q4 2024 and +4.48 in Q1 2024. Key indicators such as volume of sales, net profits, selling price, and new orders demonstrated improvements both quarter-on-quarter and year-on-year.
Sectoral trends reveal bright spots in construction, transportation, and financial services, where at least four of six indicators remain positive. However, inventory levels in construction dropped to zero, and selling price indicators moderated slightly in transportation and financial sectors. Despite these adjustments, the manufacturing sector showed visible improvement, with five of six indicators in positive territory, compared to just two in the previous quarter.
SCCB Chief Audrey Chia tempered optimism by citing ongoing global trade uncertainties and geopolitical risks. While wholesale trade sentiment showed mixed results, with some indicators declining, overall business confidence stands at a three-year high, positioning Singapore for a hopeful start to 2025.
Overseas Sales Growth in 2024: Insights from the SBF Survey
Singapore businesses experienced a notable increase in overseas sales in 2024, according to a survey conducted by the Singapore Business Federation (SBF). Nearly a third (32%) of businesses reported growth in their overseas markets, up from 22% in 2023. This contributed to a rise in the proportion of companies deriving at least 40% of their revenue from overseas sources, which grew to 56% from 54% in the previous year.
Vietnam, Indonesia, and Thailand emerged as the top markets of interest, each cited by 25%, 25%, and 21% of respondents, respectively. However, interest in Malaysia and China declined, with Malaysia falling by 10 percentage points to 19% and China dropping by 5 percentage points to 17%. Despite these shifts, businesses expressed increasing openness to exploring non-traditional markets, such as the United Arab Emirates and Saudi Arabia, where interest rose by 7 and 6 percentage points, respectively.
Looking ahead, 56% of respondents anticipate further growth in overseas sales over the next year, reflecting optimism despite geopolitical and demand-related challenges. SBF CEO Kok Ping Soon highlighted this trend as a testament to the resilience of Singapore businesses and reiterated SBF’s commitment to providing support, from addressing regulatory barriers to fostering partnerships in international markets.
Bizfile Update: Waiver of Late Filing Penalties for Technical Issues
The Accounting and Corporate Regulatory Authority (ACRA) has acknowledged the challenges faced by users following the launch of the new Bizfile portal on December 9, 2024. Technical issues have affected the filing of statutory transactions, causing concerns among businesses and Corporate Service Providers (CSPs) about missed deadlines. ACRA is actively addressing these issues and has implemented several measures to support affected users.
To alleviate the burden, ACRA has announced that it will waive late-filing penalties for transactions due between December 9 and December 20, 2024, provided they were filed by December 27, 2024. This extension applies to both annual returns and ad hoc filings. Additionally, for users that need to file general lodgements, the transaction date in Bizfile records will reflect the actual date of the transaction.
For urgent or time-sensitive filings, ACRA encourages users to contact its helpdesk for assistance. Video tutorials are also available to guide users through key transactions on the new portal.
NRIC Numbers to Be Removed from Bizfile Searches Following Security Lapse
ACRA has announced the it is removing National Registration Identity Card (NRIC) numbers from the “people search” function on the Bizfile portal. This decision follows a security lapse that revealed full NRIC numbers in search results, raising public concerns about data privacy. The updated search function, expected to launch next week, will exclude NRIC numbers from the displayed results.
ACRA CEO Chia-Tern Huey Min apologized for the incident, citing a misunderstanding with the Ministry of Digital Development and Information (MDDI) over new guidelines on masked NRIC numbers. The lapse occurred following a December 9, 2024, update to the portal, which unmasked those numbers, contrary to previous privacy measures.
While NRIC numbers will no longer appear in search results, users needing detailed information can purchase reports as permitted under laws administered by ACRA, including the Companies Act. This service ensures continued access to necessary business information, while balancing that need with privacy concerns.
New Stockpiling Rules and Stricter Food Safety Penalties Announced
Singapore is set to implement stricter food safety penalties and a new stockpiling framework under the proposed Food Safety and Security Bill (FSSB). Introduced in Parliament on November 12, 2024, by the Ministry of Sustainability and the Environment, the Bill aims to strengthen food safety regulations, ensure public health, and address food security challenges. The Singapore Food Agency (SFA) outlined three objectives: consolidating food-related legislation, bolstering the safety framework, and addressing emerging food supply risks.
A key feature of the Bill is the introduction of a Minimum Stockholding Requirement (MSR). This framework, which replaces existing stockpiling schemes like the rice stockpile program, allows the government to expand stockpiling to other essential food items if necessary. The MSR offers flexibility in managing food security during supply disruptions and provides clear compliance mechanisms for food importers. Additionally, local farms will be required to implement farm management plans to mitigate risks related to food safety, disease control, and sustainable production.
The Bill also proposes heightened penalties for food safety breaches, with tiered fines based on severity. It extends food safety regulations to include not only the sale but also the donation and free distribution of food. Key food distributors, such as importers and processors, will be required to maintain traceable records to support timely recalls when needed. The maximum penalties will apply to egregious violations, while repeat offenders may face license disqualification. Consumers will also benefit from more flexible import limits for personal consumption, supporting the overarching goal of a robust and adaptable food safety regime.
Proposed Law to Strengthen Workplace Fairness and Introduce Penalties
Singapore has introduced the Workplace Fairness Bill in Parliament, aimed at enshrining non-discriminatory practices in employment and implementing penalties for violations. This is the first of two bills under the Workplace Fairness Legislation (WFL) expected to take effect in 2026 or 2027. The Bill prohibits adverse employment decisions based on protected characteristics such as age, nationality, sex, marital status, race, religion, disability, and mental health conditions. These protections cover all stages of employment, from hiring to dismissal. Exceptions will be made for genuine occupational requirements, ensuring flexibility for specific business needs such as language fluency or health and safety considerations.
Employers will be required to establish grievance-handling processes to address disputes internally. The Ministry of Manpower (MOM) emphasizes that these processes must maintain confidentiality and inform employees of outcomes, while also protecting whistleblowers from retaliation. Employees who experience discrimination may seek assistance from unions or the Tripartite Alliance for Dispute Management if internal resolutions are inadequate. The Bill also mandates that employment practices align with the Fair Consideration Framework, including job advertisement requirements on MyCareersFuture, to ensure fair access to opportunities for locals. Small firms with fewer than 25 employees will initially be exempt but must still adhere to existing tripartite guidelines.
To enforce compliance, the Bill introduces penalties based on the severity of breaches. Errant employers may face corrective orders, administrative fines, or court-imposed sanctions for serious violations. MOM emphasizes an education-first approach to foster workplace harmony but includes these penalties as deterrents. The legislation has gained support from unions and employer organizations like the National Trades Union Congress and the Singapore National Employers Federation, which view it as balancing fairness with operational flexibility. Employers, especially smaller firms, are encouraged to proactively review and improve their practices to align with the WFL’s objectives of fostering inclusive and cohesive workplaces.
Enhanced Corporate Incentive Scheme with BEPS 2.0-Compliant Tax Rates
Singapore has introduced updates to the Development and Expansion Incentive (DEI) scheme under the Economic Expansion Incentives Act. These changes address global corporate tax reforms, particularly the Base Erosion and Profit Shifting (BEPS) 2.0 initiative, which sets a global minimum tax rate of 15% for large Multinational Enterprises (MNEs) with annual group revenue exceeding €750 million (S$1.1 billion). To ensure Singapore’s continued competitiveness, a new 15% concessionary tax rate tier has been added for qualifying MNEs, complementing the existing 5% and 10% rates. This allows large MNEs impacted by BEPS 2.0 to continue benefiting from the DEI scheme while maintaining compliance with international tax standards.
Additional amendments expand eligibility and flexibility under the DEI scheme. Non-headquarters service companies, such as those in payment technologies, artificial intelligence, and aircraft maintenance, can now receive DEI awards for up to 40 years, double the previous maximum tenure of 20 years. Moreover, the Minister for Trade and Industry will gain authority to prescribe eligible projects for Investment Allowance (IA) benefits through regulations, allowing faster adaptation to economic shifts. These changes aim to attract investments that align with Singapore’s strategic priorities, focusing on projects that generate quality jobs and contribute to long-term economic growth.
Despite these incentives, Singapore remains judicious in granting them. The DEI is only offered when economic agencies determine that an investment would not occur in Singapore without the incentive and that it provides net economic benefits. While these updates reflect Singapore’s adaptability in the face of global tax reforms, the government has no plans for a comprehensive overhaul of the Economic Expansion Incentives Act. Instead, Singapore continues to refine its tools for investment attraction, ensuring alignment with its economic strategies while maintaining compliance with global tax standards.
Proposed Bill to Simplify and Reduce Costs for Company Insolvency
A new Insolvency, Restructuring, and Dissolution (Amendment) Bill has been introduced in Parliament to provide businesses with a simpler and more cost-effective framework for insolvency. This proposed legislation seeks to make permanent key features of the Simplified Insolvency Programme, which is set to end on January 28, 2026. It focuses on streamlining processes for debt restructuring and company winding-up while expanding access to the programme by introducing a single eligibility criterion: companies with total liabilities not exceeding S$2 million. This change eliminates the previous requirements for thresholds related to revenue, creditor count, employees, and estimated asset value, allowing a wider range of companies to benefit.
To further ease participation, the Bill simplifies application procedures. For the restructuring programme, companies will initially need to submit only key supporting documents, with additional documents required only if requested by insolvency practitioners. For winding-up applications, companies with incomplete records can rely on directors’ declarations to confirm eligibility. Strict enforcement measures are proposed to deter false declarations, ensuring the integrity of the programme. Additionally, the Bill introduces some administrative efficiencies, such as consolidating a variety of creditor classes into a single voting group for debt repayment plans, and involving the courts only in specific contested cases.
The Bill also addresses cost reduction in the winding-up programme by removing mandatory publication in government gazettes and newspapers, limiting notifications to the Ministry of Law’s website. Other notable updates include shortening the initial moratorium period for restructuring from 90 to 30 days, making the process more time-efficient. Companies that fail to restructure successfully will be ineligible to apply again for five years. By lowering costs, reducing administrative burdens, and improving access, the revamped insolvency framework aims to provide businesses, particularly smaller enterprises, with a practical and efficient solution to address financial distress.
How We Can Help
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At CorporateServices.com, we are committed to delivering efficient and professional support to help your business thrive in Singapore. Contact us today to learn more about how we can assist you.ployment Passes and other visas. With our expert guidance and efficient services, you can focus on growing your business while we handle the complexities. Contact us today to get started!
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