Below are the highlights of key developments that shaped Singapore’s economic and regulatory landscape in June, including a new AI talent scheme with the United States, renewed capital markets cooperation with China, innovative economic projects with Malaysia, and enhanced anti-money laundering measures. These initiatives reflect Singapore’s commitment to maintaining its competitive edge and ensuring sustainable growth in an ever-evolving global economy.
Singapore and the US to Launch New AI Talent Scheme
Singapore and the United States have taken a significant step to strengthen their ties in the field of Artificial Intelligence (AI) with the launch of a new AI Talent Bridge initiative. Announced on June 5, 2024, this initiative aims to support the development of AI skills among youth, women, and future leaders. The programme builds upon the existing US-Singapore partnership for women in tech, which began in June 2022, and is a collaborative effort led by US Commerce Secretary Gina Raimondo and Singapore’s Minister for Communications and Information, Josephine Teo.
At the announcement event, Raimondo emphasized the commitment to providing equal access to AI skills, highlighting the importance of inclusivity in the rapidly evolving tech landscape. This initiative comes as US companies continue to invest heavily in Singapore’s digital economy, with commitments expected to exceed S$50 billion in the coming years. Teo noted the robust confidence US firms have shown in Singapore’s AI and digital sectors, which is expected to significantly boost the local economy and enhance AI capabilities among Singaporean workers.
In addition to talent development, the Ministry of Communications and Information (MCI) and the US Department of Commerce (DOC) will deepen their cooperation on AI governance and safety. This collaboration aims to establish standards and frameworks to ensure the ethical development and deployment of AI technologies. Both countries recognize the opportunities and challenges presented by AI, and are committed to working together on best practices and safety measures to foster trust and mitigate risks associated with AI proliferation.
Singapore and China to Deepen Cooperation in Capital Markets Activities
Singapore and China have reaffirmed their commitment to strengthening their partnership in capital markets through the 8th Bilateral MAS-CSRC Roundtable. Held on June 14, 2024, this annual event brought together leaders from the Monetary Authority of Singapore (MAS) and the China Securities Regulatory Commission (CSRC) to discuss and enhance their supervisory cooperation and collaboration in capital markets activities. The roundtable was co-chaired by MAS’ Deputy Managing Director (Financial Supervision), Ms. Ho Hern Shin, and CSRC’s Vice Chairman, Mr. Chen Huaping.
During the roundtable, MAS and CSRC exchanged insights on various regulatory frameworks, including those related to securities offerings and listings, as well as developments in sustainability disclosure requirements for listed companies. Both parties also delved into the regulation of derivatives markets within their respective countries. This dialogue underscores the commitment of both nations to maintaining robust regulatory standards and fostering transparency in their capital markets.
One of the key highlights of the roundtable was the exploration of potential collaboration between Singaporean and Chinese exchanges. This includes initiatives such as index collaboration, which aims to strengthen cross-border capital market activities. Ms. Ho emphasized the importance of this annual platform for mutual learning and collaboration, expressing optimism for increased connectivity and participation between Chinese and Singaporean financial institutions in each other’s markets. This deepened cooperation is expected to enhance the integration and efficiency of the capital markets in both countries, benefiting investors and businesses alike.
New Economic Projects to be Launched by Singapore and Malaysia
Singapore and Malaysia are embarking on new economic projects to enhance their bilateral relationship. During his first official visit to Malaysia, Singapore Prime Minister Lawrence Wong highlighted the continuity in strategic engagement and the exploration of new collaboration opportunities. At a joint press conference with Malaysian Prime Minister Anwar Ibrahim on June 12, 2024, both leaders emphasized their commitment to resolving long-standing issues and pursuing innovative projects.
Key projects discussed include the Johor-Singapore Special Economic Zone (SEZ), aimed at boosting economic activity and connectivity between the two regions. This initiative is expected to enhance the flow of people, goods, and investments, benefiting both nations. The Johor Bahru-Singapore Rapid Transit System Link was also highlighted as a promising project to improve transportation links and economic integration.
In addition to these infrastructure projects, the leaders addressed other significant bilateral issues such as water, airspace, and maritime boundaries. Prime Minister Anwar emphasized the importance of resolving these issues to strengthen bilateral ties. Both leaders are committed to strategic direction and progress, planning to review developments at the upcoming Leaders’ Retreat in Malaysia later this year. New ideas, such as sending Singaporean teachers to Malaysia, exemplify the innovative approaches both countries are considering to enhance cooperation.
Economists Maintain 2.4% Growth Forecast for Singapore’s Economy
Economists have maintained their growth forecast for Singapore’s economy at 2.4% for 2024, according to a recent survey published by the Monetary Authority of Singapore. Despite this stable overall forecast, expectations for specific sectors have shifted. Manufacturing is now anticipated to play a smaller role, with growth forecasts for the sector revised down to 1.6% from the previous 4%. This adjustment reflects the sluggish industrial production performance in the early months of the year.
The survey highlights that finance, rather than manufacturing, is expected to be the main driver of economic growth. The finance sector’s growth is predicted to be supported by an increase in credit demand due to anticipated easing in global interest rates. Other sectors expected to perform well include wholesale and retail trade, as well as accommodation and food services. In contrast, the outlook for construction remains less optimistic, mirroring the dimmer expectations for manufacturing.
Inflation forecasts have also been adjusted. The median forecast for headline inflation has been lowered to 2.8% from 3.1%, while the forecast for core inflation remains at 3%. These expectations align with official government forecasts, which predict GDP growth of 1-3% and headline and core inflation between 2.5-3.5% for 2024. Despite the sector-specific adjustments, the overall economic outlook for Singapore remains cautiously optimistic, supported by resilient end-demand fundamentals and potential positive spillovers from China’s economic policies.
DBS Launches Internationalization Programme to Help Singapore Businesses Expand Globally
DBS has launched a new internationalization programme, Bridging Business Horizons, aimed at assisting 1,000 businesses in Singapore and the region to enter new markets over the next 12 months. This initiative, launched on June 3, 2024, is supported by the Singapore Business Federation (SBF) and Enterprise Singapore (EnterpriseSG). The programme will focus on discovering new market opportunities, developing and executing entry strategies, and deepening onshore networks, with free registration for participating businesses.
The programme will engage businesses through a series of networking sessions and workshops. These sessions will offer advisory services to help companies enhance their export competitiveness by leveraging Singapore’s free trade agreements. Additionally, DBS will provide localized engagements in key markets such as China, Hong Kong, India, Indonesia, and Taiwan. Businesses will also have access to financing solutions from DBS and resources from SBF and EnterpriseSG to scale their operations.
According to the latest SBF National Business Survey, 57% of Singapore’s businesses are keen on overseas expansion, particularly in Southeast Asia. However, these businesses face challenges such as market volatility, higher business costs, and limited resources. The new DBS programme aims to address these issues by promoting a collaborative approach among businesses. As DBS group executive and Singapore country head Han Kwee Juan emphasized, the goal is to encourage Singapore businesses to “go out as a pack” and support each other in the process.
MAS Releases Updated National Risk Assessment on Money Laundering
On June 20, 2024, Singapore MAS published its updated Money Laundering (ML) National Risk Assessment (NRA) as part of ongoing efforts to strengthen its anti-money laundering (AML) regime. This update, a decade after the last ML NRA in 2014, synthesizes risks observed by Singapore’s supervisory and law enforcement agencies, the Suspicious Transaction Reporting Office (STRO), feedback from private sector entities, and foreign authorities. It aims to address evolving risks such as the abuse of legal persons, virtual assets, and environmental crime ML, ensuring timely risk mitigation across relevant stakeholders.
Singapore’s position as an international financial center and trading hub exposes it to significant ML risks. The updated ML NRA highlights that fraud, particularly cyber-enabled fraud by criminal syndicates, constitutes the primary ML threat. Other key threats include foreign predicate crimes such as organized crime, corruption, tax crimes, and trade-based money laundering. Common ML typologies involve illicit funds flowing through bank accounts, misuse of shell companies, and investment in high-value assets like real estate and precious stones. The banking sector, including wealth management, poses the highest ML risks due to its exposure to large volumes of transactions and high-risk customers.
The updated ML NRA calls for targeted measures to address these identified risks, ensuring Financial Institutions (FIs) and Designated Non-Financial Businesses and Professions (DNFBPs) remain vigilant and strengthen their risk-based controls. Among DNFBPs, Corporate Service Providers (CSPs) and sectors like real estate, casinos, and precious stones are noted for higher ML risks. Digital Payment Token (DPT) service providers also present significant risks due to the increasing exploitation of virtual assets. Singapore remains committed to evolving its AML regime, with the updated ML NRA findings guiding efforts to sensitize FIs and DNFBPs to emerging ML risks and enabling timely detection and enforcement of illicit activities.
Considering Establishing Your Business in Singapore?
At CorporateServices.com, we are your reliable partners in setting up your business presence in Singapore, a global financial hub known for its strong regulatory framework and conducive business environment. As Singapore strengthens its regulatory landscape and international cooperation, our extensive range of Singapore incorporation services guarantees a smooth and compliant entry into this dynamic market.
About CorporateServices.com
Headquartered in Singapore, CorporateServices.com, empowers global entrepreneurs with information and tools necessary to discover Singapore as a destination for launching or relocating their startup venture and offers a complete range of company incorporation, immigration, accounting, tax filing, and compliance services in Singapore. The company combines a cutting-edge online platform with an experienced team of industry veterans to offer high-quality and affordable services to its customers. Contact Us if you need assistance with setting up a new Singapore company or if you would like to transfer the administration of your existing company to us.
Share this Post
