Singapore continues to be a leading global business hub, consistently ranking among the top nations for ease of doing business, as highlighted by the World Bank’s Doing Business reports. Known for its pro-business policies and seamless government services, Singapore remains a magnet for entrepreneurs and corporations alike. Reflecting its popularity, approximately 4,400 new companies were established in Singapore in November 2024 alone. In this blog post, we will explore recent updates and initiatives shaping Singapore’s business landscape, including regulatory changes, new government programs, and key developments that impact businesses.
Singapore Projects 2025 Growth at 1-3%, Raises 2024 Forecast to 3.5%
Singapore’s Ministry of Trade and Industry (MTI) has updated its economic forecasts, projecting growth of 1%-3% for 2025 while revising the 2024 forecast upward to approximately 3.5%. This adjustment reflects a better-than-expected performance in the first three quarters of 2024, with the third quarter alone showing a year-on-year growth rate of 5.4%, revised from an earlier estimate of 4.1%. This marked the strongest quarterly growth since late 2021.
MTI attributes the upgrade to resilience in sectors such as manufacturing, wholesale trade, and finance. Notably, manufacturing rebounded sharply, with an 11% year-on-year expansion in Q3, led by the global electronics upturn. Meanwhile, outward-oriented services such as wholesale trade and digital solutions also saw steady growth. However, tourism-related and consumer-facing sectors, including retail and food services, remain weighed down by slower international recovery and increased outbound travel by local residents.
Looking ahead to 2025, MTI anticipates stable growth in manufacturing and trade-related services, supported by global demand for electronics and firm orders in sectors such as aerospace and offshore engineering. However, global uncertainties, including potential trade tensions and inflationary pressures, remain a risk. These factors together have led to a cautious yet optimistic outlook for Singapore’s economy in the coming year.
Businesses Optimistic About Next Six Months
Singaporean companies are cautiously optimistic about the coming six months, as highlighted in the latest Business Times-Singapore University of Social Sciences Business Climate Survey. For the first time in nearly two years, sales expanded in Q3 2024, with a net balance of 6%, up eight points from the previous quarter. This improvement signals the end of a seven-quarter contraction phase in sales, driven by stronger overseas performance and probably bolstered by Singapore’s export-led recovery.
However, profitability remains a challenge. The profit net balance continued to contract at -10%, reflecting persistently high business costs. Rising labour expenses, including increases in S-Pass and Employment Pass salary thresholds, are expected to add further pressure. Financial and business services, along with the commerce sector, were the exceptions, showing optimism and profit gains during Q3.
Across the region, businesses have expressed strong confidence in Indonesia, which now ranks alongside Singapore as the top market for growth opportunities. Indonesia’s appeal has been reinforced by the new Prabowo administration and robust economic prospects. Malaysia also remains a key focus, supported by high-tech investment growth and infrastructure projects such as the Johor-Singapore Rapid Transit System Link. Despite global uncertainties, businesses anticipate continued recovery in external-oriented sectors, positioning the economy for steady growth in the months ahead.
New BizFile Portal Launches on 9 December 2024
The Accounting and Corporate Regulatory Authority (ACRA) launched its updated BizFile portal on December 9, 2024. The new platform is designed to make filing transactions simpler and more efficient for businesses in Singapore.
The portal has a refreshed look with easy-to-use navigation features, allowing users to file transactions quickly. It combines registry filing services, business information products, and API services in one convenient location online. The portal also improves filing accuracy and data quality while strengthening personal data protection with a new Contact Address requirement.
Businesses can also access data more easily through the portal to help with their growth. For guidance on using the updated features, including FAQs and video tutorials, visit the BizFile website.
Changes to Data Protection Officer (DPO) Registration
As of December 1, 2024, the registration of Data Protection Officers (DPOs) on ACRA’s BizFile+ portal is no longer available. This change will remain in effect until further notice.
Organisations that need to register a new DPO or update existing DPO details can now do so through the Personal Data Protection Commission (PDPC) website. An online form for these updates is available at this page.
For more information or assistance, organisations are encouraged to visit the PDPC website.
Simplified Penalty Framework for Ad Hoc Lodgments
Since 9 December 2024, ACRA has implemented a simplified two-tier penalty framework for late ad hoc lodgments. This framework applies to all types of entities, including Singapore-incorporated companies, Variable Capital Companies (VCCs), Limited Liability Partnerships (LLPs) and Limited Partnerships.
New Penalty Structure
- Late filings within 3 months of the due date: S$50 penalty.
- Late filings beyond 3 months: S$200 penalty.
This framework applies to ad hoc lodgments due on or after 9 December 2024. For lodgments due before this date, the existing eight-tier penalty framework will remain in place. Annual lodgments will continue to be subject to the current two-tier penalty structure.
Impact of the Changes
Most companies, LLPs, and limited partnerships will benefit from lower penalties under this new framework for ad hoc filings. However, businesses such as partnerships and sole proprietorships will face higher penalties for late registration renewals, as these make up the bulk of late lodgments in this category. ACRA emphasises that it’s important to renew in a timely way to avoid operating with an expired registration.
Appeals for Penalty Waivers
Entities that cannot afford to pay a penalty due to financial constraints can appeal to ACRA, providing supporting evidence for consideration.
To avoid penalties and enforcement actions, all entities are encouraged to ensure that filings and renewals are completed on time.
Singapore to Share Crypto Asset Data Under New Tax Initiative
Singapore has strengthened its role in global tax cooperation by committing to the Crypto-Asset Reporting Framework (CARF), an initiative aimed at enhancing tax transparency for crypto assets. This commitment was made on 26 November 2024 at the 17th Global Forum Plenary Meeting in Asunción, Paraguay, alongside 60 other jurisdictions.
Key Developments
- Automatic Exchange of Information:
Singapore will begin sharing tax-relevant information on crypto assets with other jurisdictions under CARF. Exchanges are expected to start by 2027 or 2028. - New Agreements Signed:
Singapore has signed:- The CARF Multilateral Competent Authority Agreement (CARF MCAA) for automatic sharing of tax data on crypto assets.
- An Addendum to the Multilateral Competent Authority Agreement on Financial Account Information (CRS MCAA), introducing stricter due-diligence and reporting standards for financial accounts.
- Global Collaboration:
Major financial hubs, including France, Germany, Japan, the UK, and the US, have also committed to CARF, reinforcing global efforts to address tax challenges in the crypto sector.
Singapore and New Zealand Agree on Arbitration for Tax Disputes
Singapore and New Zealand have signed a Competent Authority Arrangement (CAA) to implement arbitration provisions under the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The arrangement was finalized on 18 and 21 November 2024.
Under this agreement, taxpayers can request that issues remaining unresolved from a Mutual Agreement Procedure (MAP) case be submitted to an arbitration panel after two years. This ensures timely and efficient resolution of tax disputes, strengthening certainty for cross-border transactions.
The full text of the CAA is included as Annex B to the Singapore-New Zealand Double Tax Agreement (DTA) and can be accessed on the Inland Revenue Authority of Singapore website.
MOM Suspends Licences of Employment Agencies Over Misconduct
The Ministry of Manpower (MOM) has suspended the licences of two Singapore employment agencies: Global Recruiters Private Limited and SDI Global Private Limited. This action aims to protect jobseekers from misconduct by these agencies, which were involved in overseas job placements.
Investigations revealed that both companies collected agency fees from jobseekers before securing employment, a violation of the Act. Employment agencies are prohibited from charging fees upfront, even for overseas placements. MOM is taking enforcement actions against these contraventions.
Jobseekers are reminded not to pay agency fees until they are successfully placed in a job, with a fee cap of no more than two months’ salary. Suspicious practices, such as early fee collection or overcharging, can be reported confidentially via MOM’s “Report an Infringement” eService.
Maybank Launches Sustainability Programme for SMEs
Maybank Singapore has introduced the “myimpact SME” programme, aimed at helping Small and Medium-sized Enterprises (SMEs) adopt sustainable practices. This initiative offers solutions ranging from advisory services to financing and is part of a Maybank Group–wide effort implemented across Singapore, Malaysia, Indonesia, the Philippines, and Cambodia.
The programme features partnerships with nine organizations, including sustainability consultants, solar panel specialists, and providers of cloud accounting software. SMEs can access tools such as Gprnt, an enhanced ESG reporting solution, and ESGpedia, which helps calculate carbon emissions. These tools align with requirements from the Singapore Exchange and international frameworks. Participants can also enjoy discounts on ESG training and solar panel installations.
Additionally, Maybank’s HERpower initiative offers targeted support for women entrepreneurs through networking events, workshops, and fee waivers, reinforcing the bank’s commitment to gender diversity and inclusivity.
Wage Support of Up to S$72,000 for Overseas Staff Assignments
Workforce Singapore (WSG) has launched the Overseas Markets Immersion Programme (OMIP) to help businesses expand internationally. Companies can receive up to S$72,000 in wage support per employee, covering 70% of salary and overseas allowance, capped at S$5,000 and S$3,000 monthly, respectively, for up to nine months. Eligible employees must earn a fixed monthly salary of at least S$4,000 and participate in a structured career development plan with measurable short-term goals.
WSG has allocated S$16 million for the programme, aiming to assist more than 100 companies and up to 250 employees within two years. The Singapore Business Federation (SBF) will partner with WSG to guide businesses on internationalisation and training plans. Employees will gain experience in roles such as regional business development and market analysis, while benefiting from in-market training and networking with international peers.
The initiative is designed to enhance the capability of Singapore’s workforce to manage overseas operations and navigate diverse business environments, offering businesses valuable resources to support their global growth ambitions.
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