Singapore remains a top global business hub, consistently ranked among the best countries for ease of doing business, as shown in past World Bank reports. With its growing economy, business-friendly policies and efficient government services, Singapore continues to attract entrepreneurs and corporations. In January 2025 alone, about 3,200 new companies were registered.
In this blog post, we will cover key updates shaping Singapore’s business environment, including Budget 2025, regulatory changes, compliance-related cases, and other developments that may affect your Singapore business.
Singapore’s Economy Expanded by 4% in 2024
Singapore’s economy surpassed forecasts by growing by 4% in 2024. Prime Minister Lawrence Wong highlighted this growth in his New Year message, noting that strong economic performance has led to rising real incomes for workers. Unlike many developed countries facing economic stagnation, Singapore continues to see wage increases that outpace inflation.
Despite global challenges, Singapore remains a stable and competitive economy. The government has focused on strengthening key industries, supporting businesses, and maintaining a strong labor market. This approach has helped sustain growth while ensuring job opportunities for Singaporeans.
Looking ahead, the government will continue efforts to sharpen Singapore’s economic edge while addressing cost-of-living concerns. Budget 2025 is expected to introduce further measures to support businesses and households, ensuring that growth remains inclusive and sustainable.
Budget 2025: More Support for SME Training and Digitalization
Budget 2025 is expected to introduce more funding to help Small and Medium-sized Enterprises (SMEs) invest in training and digitalisation. The Association of Small and Medium Enterprises (Asme) has proposed measures such as streamlined digitalization grants and targeted support for workforce development. These initiatives aim to help businesses stay competitive and adapt to technological changes.
In addition to funding, Asme has suggested policies to support older workers and working parents. This includes subsidies for employee health checkups and other measures that improve workforce well-being. The association also highlighted the challenges that smaller SMEs face in expanding overseas, calling for more flexibility in internationalization efforts.
Finance Minister Lawrence Wong will outline the final details in his Budget 2025 speech on February 18. With these proposed initiatives, the government aims to strengthen SME growth, enhance workforce capabilities, and drive long-term economic resilience.
Workplace Fairness Bill Passed to Strengthen Equal Opportunities
On January 8, 2025, Parliament passed the Workplace Fairness Bill, reinforcing Singapore’s commitment to fair and harmonious employment practices. The bill builds on existing Tripartite Guidelines on Fair Employment Practices (TGFEP) and aims to strengthen protections against workplace discrimination. By codifying key fairness principles into law, the government seeks to ensure that all employees and job seekers are treated equitably in hiring, promotions, appraisals, and other employment decisions.
The bill specifically prohibits adverse employment actions based on protected characteristics, including age, nationality, gender, marital status, caregiving responsibilities, race, religion, language, disability, and mental health conditions. These categories represent over 95% of discrimination complaints received by the Tripartite Alliance for Fair & Progressive Employment Practices (TAFEP) and the Ministry of Manpower (MOM). Companies are also required to implement proper grievance-handling procedures to facilitate fair resolutions at the workplace level.
To see these changes made, the government will use a combination of education and enforcement. MOM and TAFEP will continue promoting workplace fairness through educational programs, while stronger enforcement measures, such as administrative penalties and financial sanctions, will be applied to address severe violations. The bill marks a crucial step in fostering a work culture based on merit, fairness, and inclusivity, ultimately contributing to Singapore’s economic and social stability.
New Law Simplifies Insolvency Process for More Companies
On January 7, 2025, Parliament passed a new law aimed at simplifying and reducing costs for companies undergoing insolvency. The legislation makes permanent the Simplified Insolvency Programme (SIP), introduced during the COVID-19 pandemic. Now known as SIP 2.0, the revised framework expands eligibility to companies with total liabilities of up to S$2 million, significantly widening its reach beyond micro and small enterprises.
SIP 2.0 streamlines corporate debt restructuring and winding-up procedures. For restructuring, companies will only need to submit essential documents instead of adhering to a rigid checklist. Similarly, the winding-up process has been simplified, allowing firms to use a directors’ declaration in place of extensive documentation. Moreover, businesses will only need to publish notifications on the official receiver’s website and Bizfile portal, eliminating the previous requirement to advertise in the government e-Gazette and local newspapers.
To balance efficiency with creditor protection, the initial moratorium period preventing enforcement actions has been reduced from 90 days to 30 days, extendable once by another 30 days. Additionally, creditors with legitimate concerns can apply for judicial review. The government expects that by cutting procedural costs and reducing liquidation expenses, creditors and employees will receive a greater share of recovered assets. SIP 2.0 represents a more cost-effective and business-friendly approach to insolvency, ensuring that financially distressed companies can either restructure or exit the market more efficiently.
Private Sector Advised Against Using NRIC Numbers for Authentication
The government has advised private-sector organizations to stop using National Registration Identity Card (NRIC) numbers for authentication purposes. Minister for Digital Development and Information Josephine Teo stated that while the government had planned to phase out this practice, it first wanted public agencies to make the transition. The private sector is expected to take longer to adjust due to longstanding practices. Organizations that currently rely on NRIC numbers as authentication or default passwords should discontinue this approach as soon as possible.
At the same time, private organizations may still collect partial NRIC numbers for identification purposes. The guidelines on this practice remain unchanged for now and will only be updated after a public consultation. Teo clarified that while NRIC numbers serve as unique identifiers, they should not be mistaken for authentication tools. Misuse of NRIC numbers can create security risks, particularly when used to access personal data or services. To enhance data protection, the government wants to reduce reliance on NRIC numbers in both the public and private sectors..
The recent incident in which the Accounting and Corporate Regulatory Authority (Acra) displayed full NRIC numbers on its Bizfile portal sparked public concern. Teo called this an unfortunate lapse that led to unnecessary anxiety. She reiterated that NRIC numbers remain personal data and should be protected accordingly. Organizations that collect NRIC numbers must notify individuals that they are doing so, seek consent, and ensure they handle this information securely. Moving forward, businesses are encouraged to explore alternative forms of identification, such as mobile numbers, to verify individuals without compromising security.
New SkillsFuture Portal Helps Jobseekers Identify Key Skills
A new online portal by SkillsFuture Singapore (SSG) aims to help jobseekers identify in-demand skills and career transition opportunities. The Jobs-Skills Portal, launched on January 22, consolidates all job and skills-related resources into a single platform. It features six interactive dashboards that provide insights into role-specific skills, career mobility, and emerging job requirements. Minister of State for Education Gan Siow Huang highlighted that the portal serves as a planning tool for individuals to bridge their skills gaps and explore career growth opportunities.
The platform is also valuable for companies and human resources professionals, allowing them to monitor changes in job requirements and workforce needs. Employers can use the data to guide manpower planning and employee training strategies. One of the key features, the Job Requirements Dashboard, helps job-seekers understand the top skills and digital tools required for various roles. Another key tool, the Skills and Job Mobility Dashboard, provides insights into career transitions by highlighting roles with strong growth potential and the necessary skills for such moves.
SSG also released the latest edition of its Skills Demand for the Future Economy Report, identifying priority skills in the green, digital, and care economies. The report highlights 71 consistently high-demand skills, such as data analytics in the care sector, software design in digital industries, and carbon management in the green economy. Additionally, 37 skills that were moderately transferable in 2024 have now become highly transferable, reflecting broader industry adoption. The report aims to help employers align their workforce needs with industry trends, while also guiding individuals in making informed decisions about upskilling and career development.
Bizfile Update: Late Filing Penalties Waived Until 15 March 2025
Recently some Bizfile users have faced difficulties in filing their documents. ACRA issued a note that they appreciate users’ patience as they work on addressing these challenges.
As part of ongoing efforts to assist businesses, ACRA will continue to waive late filing penalties for statutory filings due between 9 December 2024 and 28 February 2025. The extended deadline for these filings is now 15 March 2025. This waiver applies to annual returns, ad hoc filings, and general lodgements, including those related to shares transactions. The date of the transaction recorded in Bizfile will reflect the actual date of the general lodgement.
For businesses needing guidance on filing key transactions in the new Bizfile system, ACRA has provided video tutorials with step-by-step instructions. Companies are encouraged to review these resources to ensure compliance and avoid unnecessary delays in their filings.
Accounting Compliance Matters: Director Fined $22,400
On 10 January 2025, the State Court fined Sin Kwong Wah Andrew, an executive director and CEO of SGX-listed Miyoshi Limited, a total of S$22,400 for failing to recognize a S$16 million impairment loss in the company’s financial statements for the financial year ending 31 August 2019.
The issue came to light when ACRA selected Miyoshi’s audited financial statements for review under the Financial Reporting and Surveillance Programme. Investigations revealed that Miyoshi had obtained an independent valuation confirming the impairment but failed to adjust its financial statements accordingly. This resulted in a material misstatement of Miyoshi’s net assets and financial health. If the impairment had been recognized, the company’s loss before tax would have increased more than 30 times, and total assets would have decreased by 19%.
ACRA emphasizes the duty of directors to provide accurate and reliable financial information. Non-compliance with accounting standards undermines investor confidence and transparency. Directors are reminded that failing to meet financial reporting obligations can result in significant penalties, with fines reaching up to S$250,000 for violations under the Companies Act.
Tax Evasion Penalties: Director Jailed and Fined Over $341,000
On 6 January 2025, Tee Siew Gim, a 63-year-old partner of Hock Hin Undertaker and sole proprietor of Eternal Life Bereavement Services, was sentenced to 21 weeks’ jail and ordered to pay a penalty of S$341,327.75 along with a S$3,000 fine for tax evasion and failure to register for Goods & Services Tax (GST).
Tee was found guilty of making false entries in income tax returns for Year of Assessment (YA) 2018 and YA2019, resulting in undercharged taxes of S$101,630.24. In addition, he failed to register Hock Hin Undertaker for GST despite exceeding the S$1 million revenue threshold for four consecutive quarters ending 31 March 2014. As a result, he was penalized S$36,437.03 for GST non-compliance.
IRAS has been actively investigating tax violations in the funeral industry since 2019, auditing over 65 businesses and recovering more than S$3 million in taxes and penalties. Businesses are reminded to monitor their taxable turnover and ensure timely GST registration. Those who fail to register must still pay GST on past transactions, face penalties, and may be fined up to S$10,000. IRAS encourages businesses to voluntarily disclose past tax errors, as such disclosures may be considered a mitigating factor in enforcement actions.
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