Singapore continues to be a top choice for entrepreneurs worldwide, thanks to its business-friendly policies and stable economic environment. In October alone, 4,641 new companies were registered, reinforcing the city-state’s position as a hub for new ventures. This update provides an overview of recent regulatory changes relevant to business owners, highlighting new developments and guidelines impacting various industries. Whether you’re just starting out or managing an established business, staying informed on these updates can support compliance efforts and help you seize opportunities in this thriving market.

Singapore Economy Exceeds Expectations with 4.1% Growth in Q3

Singapore’s strong economy continues to attract entrepreneurs from around the world. According to the Ministry of Trade and Industry’s report on October 14, Singapore’s economy grew by 4.1% year-on-year in Q3 2024, surpassing expectations and improving on the previous quarter’s 2.9% growth. This is the highest growth rate since Q3 2022, driven by gains in key sectors like manufacturing and construction. On a quarterly basis, GDP rose by 2.1%, a notable increase from Q2’s 0.4%, reflecting steady economic momentum.

Manufacturing was a major contributor, expanding by 7.5% year-on-year, reversing from the 1.1% drop seen in Q2. Most manufacturing clusters saw growth, biomedical manufacturing being the only exception. Quarter-on-quarter, manufacturing increased by 9.9%, showing a strong recovery. Construction also rose by 3.1% year-on-year, a slower rate than in Q2, supported by public-sector projects. The services sector grew by 3.3% year-on-year, with wholesale, retail, transportation, and storage collectively expanding by 3.5%. Other sectors such as finance, information and communications, and professional services grew by 4.3%, a slightly slower pace than in Q2. This Q3 data suggests that Singapore’s economy remains on a resilient path and, despite global challenges, could end up surpassing expectations for 2024.

Strengthening Singapore’s Regulatory Framework: ACRA Releases 2023/2024 Report

Singapore’s corporate sector remains one of the most attractive and business-friendly worldwide, thanks in large part to the proactive work of its primary regulator, the Accounting and Corporate Regulatory Authority (ACRA). In October, ACRA released its 2023/2024 Annual Report, which outlines efforts to enhance Singapore’s regulatory framework for Corporate Service Providers (CSPs), companies, and Limited Liability Partnerships (LLPs). Key updates to legislation include measures to curb misuse of nominee directorships and to improve transparency around beneficial ownership. These measures were initially proposed in 2021 and shaped by extensive feedback from the CSP sector and broader business community.

A core focus for ACRA has been building a trusted business environment by collaborating closely with CSPs to strengthen their capacity to fight the misuse of corporate entities. This includes initiatives to reinforce the role of CSPs as gatekeepers in preventing the illicit use of companies and LLPs. ACRA emphasizes that maintaining high standards in these areas is vital not only to uphold integrity but also to enhance Singapore’s appeal as a safe and dependable place to conduct business.

ACRA has also played a key role in Singapore’s Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) efforts. As a member of the Inter-Ministerial Committee (IMC) led by Minister Indranee Rajah, ACRA has been actively involved in reviewing and updating Singapore’s AML and CFT framework. This ongoing collaboration with government agencies includes strengthening market monitoring and intelligence to better detect and address suspicious activities. These enhanced measures will help keep Singapore at the forefront of preventing financial crime and safeguarding its corporate regime from abuse.

Introduction of Singapore’s New Contact Address System

As Singapore’s national business registry, ACRA has traditionally made the residential addresses of company officers publicly accessible. However, by the end of 2024, ACRA will implement a new system where only a designated contact address will appear in public records, replacing residential addresses. Officers may still use their residential address if they wish, but the current alternate address regime will be phased out. This shift is meant to protect personal data while maintaining the level of transparency necessary for regulatory compliance.

To support this transition, ACRA will automatically convert any existing alternate address in its records to the officer’s new contact address. For individuals who don’t have an alternate address, their registered residential address will be converted to serve as the contact address. Residential addresses will still be required for ACRA’s internal records but will no longer be visible to the public. This change will apply only to new filings and documents submitted after the system’s launch date.

This updated contact address system strikes a balance between corporate transparency and individual privacy, addressing the need for enhanced data protection within the corporate landscape. For a deeper look into this topic, see our previous detailed blog post on Introduction of the Contact Address.

Mandatory Appointment of Data Protection Officers for Companies

Under Singapore’s Personal Data Protection Act (PDPA), all businesses that handle personal data, including employee information, are required to appoint a Data Protection Officer (DPO). This requirement applies across all industries and company sizes, ensuring that entities comply with data protection laws and manage sensitive information responsibly. The role of the DPO is crucial for establishing strong data protection policies and safeguarding personal data within an organization.

The Personal Data Protection Commission (PDPC) issued a reminder to all businesses in Singapore to appoint a DPO by September 30, 2024. As of now, all newly registered entities handling personal data are expected to have a DPO in place. While registration of the DPO with the PDPC is voluntary, it is encouraged, as it allows companies to receive important updates and regulatory notices from the PDPC.

ACRA to Launch Updated Bizfile+ Portal on 9 December 2024

ACRA will officially launch its updated Bizfile portal on 9 December 2024, replacing the current BizFile+ system. The new platform is designed to enhance the user experience, offering a range of eServices for business registration, updates, annual filings, and data retrieval in a more seamless way. The upgrade aims to simplify the filing and information access processes for companies and corporate service providers.

To ensure a smooth transition, ACRA will suspend all online services from 8 p.m. on 4 December until 8 a.m. on 9 December 2024 to migrate data to the new Bizfile platform. This service disruption will include the weekend of 7–8 December, and users will not be able to access or submit any transactions during this period. To minimize inconvenience, ACRA has extended the filing deadline to 16 December 2024 for any filings originally due 4–9 December, with no late penalties applied.

Additional points to note:

Certain eServices will be temporarily unavailable starting 20 November and 27 November until the launch on 9 December.
The ACRA iShop, API Marketplace, and API Mall will be offline from 4 to 9 December, though business information can still be purchased through authorized Information Service Providers.
Corporate Service Providers are advised to complete their filings and transactions by 8 p.m. on 4 December to avoid having to reapply in the new system, as incomplete transactions will not carry over.

New eGIRO Service from DBS and IRAS for Streamlined Tax Payments

On 8 October 2024, DBS and the Inland Revenue Authority of Singapore (IRAS) launched the eGIRO service, offering a fast, paperless method for both individual and corporate taxpayers to set up GIRO for tax payments. Available through IRAS’ myTax Portal, the eGIRO system reduces processing time from weeks to just minutes, simplifying tax payments for over two million users in Singapore. This marks IRAS as the first statutory board to integrate DBS’s eGIRO service, making tax payments quicker and more convenient.

Previously, corporate taxpayers faced a lengthy three-week wait for paper-based GIRO processing, and individual taxpayers were limited to eGIRO with only two banks. The new solution, which now includes seven participating banks, allows more taxpayers to complete their GIRO applications online, without manual forms or the need to enter bank details repeatedly. Taxpayers can use eGIRO for major tax payments like Individual Income Tax, Corporate Income Tax, GST, Property Tax, and Withholding Tax, with confirmation received almost instantly after applying.

The eGIRO service also offers taxpayers the option of up to 10 interest-free monthly installments for Corporate Income Tax and up to 12 for Individual Income and Property Taxes, making tax management simpler and more flexible. DBS and IRAS continue to partner in enhancing Singapore’s digital ecosystem for public services, highlighting their shared goal to make digital transformation accessible and beneficial for all.

IRAS Clarifies Income Declaration Requirements for Influencers

On 25 October 2024, the Inland Revenue Authority of Singapore issued guidance for influencers, such as content creators, artistes, and key opinion leaders, on how to declare income accurately, covering both monetary and non-monetary earnings. According to IRAS, all income — including non-monetary benefits such as sponsorships or gifts — must be declared for tax purposes. Non-monetary benefits valued under S$100 for one-time personal use or testing are exempt from declaration, while those above S$100 must be fully declared and are subject to tax.

Key points include the requirement to declare recurring benefits and those given to an influencer’s family or friends, regardless of their value. Typical taxable non-monetary benefits include event sponsorships (such as weddings or birthdays), travel, and renovations.

To help influencers and other taxpayers navigate these guidelines, IRAS has made resources available on its website and social media. For further clarification, influencers can reach out to IRAS through its website.

MOM Adopts National Wages Council’s Wage Flexibility Guidelines

On 10 October 2024, the Singapore Government accepted the 2024/2025 National Wages Council (NWC) guidelines, focusing on supporting fair and sustainable wage growth amid ongoing economic development. Singapore’s labour market showed continued growth in early 2024, with stable job vacancies and a 3% rise in labour productivity. However, strong nominal wage growth has created near-term cost pressures for businesses, underscoring the importance of a balanced approach to wage adjustments and productivity.

In response, the NWC recommends that employers adopt a Flexible Wage System (FWS) to handle fluctuating business conditions. This system allows for swift wage adjustments during downturns to maintain operations and save jobs, with wage restoration during recovery to retain talent. Employers seeking guidance on implementing FWS can consult resources from the Tripartite Alliance for Fair & Progressive Employment Practices.

The guidelines also emphasize the importance of uplifting lower-wage workers. The Progressive Wage Model (PWM) and Progressive Wage Credit Scheme, introduced in 2022, provide co-funding for wage increases, helping businesses support lower-wage workers sustainably. The Government, in partnership with NWC and tripartite groups, remains committed to advancing wage growth that benefits workers and aligns with productivity, ensuring Singapore’s workforce remains competitive.

Government Allocates Additional S$440 Million to Deep-Tech Investments

The Singapore Government has announced an additional S$440 million in funding to boost its investment in deep-tech startups. This funding will go into the Startup SG Equity scheme, part of Singapore’s S$28 billion Research, Innovation and Enterprise (RIE) 2025 strategy. The scheme, overseen by Enterprise Singapore (EnterpriseSG) and the Singapore Economic Development Board (EDB), supports deep-tech startups by co-investing alongside local and international investors. The funding aims to spur private-sector participation in deep-tech ventures, which can be challenging and costly but have high growth potential.

The expanded scheme will now cover companies in their early stages of growth and raise the government’s maximum equity investment cap per company to S$12 million from the previous S$8 million. This broadened support includes seed to Series B and C funding rounds, making it easier for deep-tech startups to access funds throughout their early growth stages. According to Deputy Prime Minister Heng Swee Keat, this expansion addresses the critical need for a supportive ecosystem that fosters innovation and competitiveness in Singapore’s tech sector.

To further support the startup ecosystem, Singapore is introducing several new initiatives, such as “Stage One,” launching in early 2025. This program will help startups build a base in Singapore and connect with global markets. Additionally, Open Innovation Challenges (OICs) are being introduced, encouraging companies to find innovative solutions in areas like artificial intelligence, sustainability, and advanced manufacturing. As part of its ongoing commitment to global partnerships, Singapore is also expanding the Global Innovation Alliance (GIA) network to the Netherlands, providing Singaporean startups with new market opportunities in Europe.

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