Feb 2, 2012 – Singapore’s Manufacturing Sector Continues To Contract For Seventh Straight Month

According to Singapore Institute of Purchasing & Materials Management (SIPMM)’s report in January 2012, the manufacturing sector continued to contract with the Purchasing Managers’ Index (PMI) decreasing to 48.7 points, 0.8 points lower than the preceding month. This was due to a further slowdown in new orders and production output. Electronics sector PMI, on the other hand rose 0.8 points to 50.5 due to a stronger electronics demand.

For press release, please click here.

Jan 31, 2012 – Singapore’s Unemployment Rate Declines To 14-Year Low

According to the “Employment Situation, 2011” report released by the Ministry of Manpower (MOM), unemployment rate fell to a 14-year low in 2011 due to the strong employment creation. However, job losses rose in Q4 2011 as the economy deteriorated. The number of layoffs in Q4 also rose to 3,600, nearly twice the number recorded in Q3. Despite the surge, the overall unemployment rate remained at 2%, unchanged from the last quarter.

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Jan 27, 2012 – Singapore Private Home Prices Up 0.2% In Q4 2011

According to statistics from the Urban Redevelopment Authority (URA), private home prices in Singapore continues to rise moderately for nine consecutive quarters, at a slower pace of 0.2% which was in line with the flash estimates announced earlier. In the core central region and outside the central region, prices of non-landed private residential properties rose 0.5% and 0.6% respectively whereas the prices in the rest of the central region increased marginally by 0.1%.

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Jan 26, 2012 – Singapore Economic Development Board (EDB) Reported A Growth Of 12.6% In Singapore’s Manufacturing Output In December 2011

Singapore’s manufacturing sector grew 12.6% on-year in December 2011 and excluding biomedical manufacturing, the output declined 9.0%. According to the data released by EDB, biomedical manufacturing sector saw a surge of 111.6% on-year due to a strong growth in the pharmaceuticals output with an increase of 121.6%. All others clusters saw a growth on-year except general manufacturing, chemicals and electronics sectors with a decline of 1.1%, 4.6% and 22.8% respectively.

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Jan 25, 2012 – December’s Inflation Up 5.5% On-year

According to the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry Singapore (MTI), Singapore’s inflation rose 5.5% in December, a marginal decrease from the 5.7% inflation in November. The moderation in Consumer Price Index (CPI) was largely contributed to a smaller increase in the private road transport’s cost. Accommodation, on the other hand was the largest contributor to inflation, with an increase of 11% on-year. MAS core inflation, which excludes the cost of private road transport and accommodation was measured at 2.6%, higher than the 2.4% in November.

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Jan 20, 2012 – The Action For Community Enterprise (ACE) To Fund 500 Startups

ACE will be seeding 500 startups to promote entrepreneurship and help aspiring businesses. Under this new ACE Startups programme, first-time entrepreneurs can receive up to S$50,000 to start their business and this will replace the Young Entrepreneurs Scheme for Startups (YES! Startups).

To learn more about the ACE Startups Grant, please click here.

Jan 17, 2012 – Economic Development Board (EDB) Singapore Foresee Investment Commitments To Stay Around 2011 Levels

According to EDB’s review, EDB achieved record investment commitments in 2011 with fixed asset investments reaching S$13.7 billion and EDB expects such investment commitments to continue staying strong in 2012, with the possibility to reach S$15 billion despite the gloomy global economic outlook. EDB reported that such strong assets investments were a result of Singapore’s strong positioning as a Global-Asia hub which attracted companies to base their business here.

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Jan 27, 2012 – Singapore Private Home Prices Up 0.2% In Q4 2011

According to statistics from the Urban Redevelopment Authority (URA), private home prices in Singapore continues to rise moderately for nine consecutive quarters, at a slower pace of 0.2% which was in line with the flash estimates announced earlier. In the core central region and outside the central region, prices of non-landed private residential properties rose 0.5% and 0.6% respectively whereas the prices in the rest of the central region increased marginally by 0.1%.

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Jan 26, 2012 – Singapore Economic Development Board (EDB) Reported A Growth Of 12.6% In Singapore’s Manufacturing Output In December 2011

Singapore’s manufacturing sector grew 12.6% on-year in December 2011 and excluding biomedical manufacturing, the output declined 9.0%. According to the data released by EDB, biomedical manufacturing sector saw a surge of 111.6% on-year due to a strong growth in the pharmaceuticals output with an increase of 121.6%. All others clusters saw a growth on-year except general manufacturing, chemicals and electronics sectors with a decline of 1.1%, 4.6% and 22.8% respectively.

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Jan 17, 2012 – Regulatory Framework For Credit Rating Agencies (CRA) Takes Effect On 17 January 2012

After a consultation paper on the proposed CRA regulatory frame in March 2011, the Monetary Authority of Singapore (MAS) has now implemented a regulatory framework for CRAs. Under this new regulatory framework, the provision of credit rating services will be regulated under the Securities and Futures Act (SFA). Existing CRAs will be given six month to apply for a Capital Markets Services licence that require them to meet minimum capital requirements as well as register and enforce minimum education qualifications for credit analysts.

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Jan 17, 2012 – Private Home Sales In December Are Weighed Down By Additional Buyer’s Stamp Duty (ABSD)

Private home sales in December reached their lowest level in two years due to the introduction of the ABSD. The number of private homes, excluding executive condos (ECs) declined by nearly 63% on-month and 52.6% on-year and according to BT’s analysis, there were around 100 private homes being returned by the buyers. Despite the sharp slowdown in December 2011, a record of 18,920 units (including ECs) were sold in 2011, an increase from 17,344 private homes sold in 2010.

Jan 17, 2012 – Singapore Non-oil Domestic Exports (NODX) Increase By 9% in December 2011

According to the International Enterprise (IE) Singapore, NODX rose by 9% on-year due to a rise in non-electronic NODX which outweighed the decrease in electronic NODX. This increase was mainly in the shipping, pharmaceutical and printing industry. Meanwhile oil domestic exports increased by 30% while non-oil re-exports (NORX) declined by 4.2% on-year in December 2011.

For press release, please click here.

Jan 12, 2012 – Singapore Budget 2012 To Be Released On 17 February 2012

Deputy Prime Minister and Minister for Finance, Mr. Tharman Shanmugaratnam will deliver the Budget Statement for the government’s new fiscal year on Friday, 17 February 2012. A “live” webcast of the Budget delivery will be available at the Singapore Budget Website.

For press release, please click here.

Jan 11, 2012 – Singapore Businesses Are Hit By Recent Changes In Foreign Worker Policies

In the recent surveys done by Singapore Chinese Chamber of Commerce and Industry (SCCCI) and Singapore Business Federation (SBF), close to half the companies polled are concerned with the manpower issues and reported ‘serious’ or ‘very serious’ business repercussions from shrunken foreign labour supply. Construction sector is the worst hit with 70% of contractors being seriously affected and according to the survey by SCCCI, more than half of those polled hope for a review of the foreign worker policy at the upcoming Budget 2012.

Jan 5, 2012 – Practice Direction On Applications For Exemption Under Section 373(5) and 373(7) Of The Companies Act, Cap. 50

Accounting and Corporate Regulatory Authority (ACRA) has issued a Practice Direction on the Applications for Exemptions under Section 373(5) and 373(7) for the Companies Act, Cap.50. This Practice Direction aims to identify the legal requirements and policies relating to financial reporting imposed on foreign companies as well as the conditions imposed by ACRA for such applications.

For full Practice Direction, please click here.

Jan 5, 2012 – Singapore’s Manufacturing Sector Continues To Contract In December 2011

According to Singapore Institute of Purchasing & Materials Management (SIPMM)’s report in December, the manufacturing sector contracted for the sixth straight month, with the Purchasing Managers’ Index (PMI) standing at 49.5 points due to declining demand both locally and overseas. The electronics sector also experienced a contraction with the PMI standing at 49.7 points. It was reported that these weak readings were due to the negative global sentiment.

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Jan 3, 2012 – The National Productivity And Continuing Education Council (NPCEC) Has Identified Four New Sectors To Boost Productivity Drive

NPCEC will include new sectors, namely financial services, accountancy, social services and process construction & maintenance in the programme to raise the annual GDP contribution from 40% to 55%, thus expanding NPCEC’s scope in employment terms from 55% to 60%. It was also reported that boosting productivity is a long-term effort to sustain Singapore’s growth despite the gloomy economic situation and constraints on land and labour resources.

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Jan 3, 2012 – Private Home Prices Continue To Grow Moderately By 0.2% In Q4

According to the Urban Redevelopment Authority (URA)’s flash estimate of the private residential property index, the rate of increase in private residential property prices has continued to moderate for the ninth consecutive quarter to 206.2 points. Prices increased by 0.5% in the Core Central Region and by 0.6% in Outside Central Region whereas no change was observed in the Rest of Central Region.

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Jan 3, 2012 Singapore’s GDP Shrinks In Q4

According to the advance estimates from the Ministry of Trade and Industry (MTI), the economy grew by 3.6% on-year in Q4 as compared to the 5.9% growth in Q3. This was largely due to the slowdown in the manufacturing sector which contracted by 21.7% on-quarter, a huge decline from the 10.1% expansion in Q3. Meanwhile, the economy is estimated to have expanded by 4.8% for the whole of 2011, in line with MTI’s growth forecast of around 5% for the year.

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Dec 30, 2011 – Further Enhancements To Conveyancing Workflow

New measures were implemented by the Ministry of Law on 1 August 2011 to protect conveyancing money by regulating how lawyers can receive and hold such money. As a further enhancement, the Singapore Land Authority’s Electronic Payment Instruction (ePI) service will allow lawyers to notify banks and submit their stamp duty payments to Inland Revenue Authority of Singapore (IRAS) electronically.

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Dec 30, 2011 – Private Lotteries Duty

Any club that conducts private lotteries from 1 April 2011 onwards will have to file Private Lotteries Duty Return (Form PL-R) and Audited Financial Statements. Form PL-R must be submitted by the 14th of each month and for those conducting scheduled one-time lottery, the return has to be filed within 14 days from the lottery date whereas Audited Financial Statements for the year need to be submitted within six months from the club’s financial year end.

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Dec 23, 2011 – Singapore Economic Development Board (EDB) Reported A Decline Of 9.6% In Singapore’s Manufacturing Output

Singapore’s manufacturing sector shrank 9.6% on-year in November and excluding biomedical manufacturing, the output declined 13.5%. According to the data released by EDB, biomedical output also decreased 0.6% on-year while vital electronics, semiconductor and data storage sectors shrank more than 30% on-year. With the festive season, the general manufacturing cluster grew by 3.0% on-year with food, beverages & tobacco segment expanding 7.8% in November.

For press release, please click here.

Dec 23, 2011 – November’s Inflation Of 5.7% Matches August’s Three-Year High

According to the Department of Statistics (DOS), housing, transport and food were the main drivers of November’s inflation as they increase 10%, 11.6% and 3.6% on-year respectively. Excluding accommodation costs, the CPI was 0.5% higher in November 2011. Based on year-on-year, the cost of clothing & footwear and communication dropped 0.6% and 1.8% respectively whereas all other costs rose, including the MAS core inflation which was measured at 2.4%.

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Dec 20, 2011 – International Accounting Standards Board (IASB) Seeks Public Comments On Proposed Amendments To IFRS 10 Consolidated Financial Statements

IASB will be conducting a public consultation the proposed amendments with the aim to clarify the transition guidance in IFRS 10 by confirming when an entity needs to apply IFRS 10. This exercise will run from 20 December 2011 to 21 March 2012.

For press release, please click here.

Dec 19, 2011 – Singapore-Panama Avoidance Of Double Taxation Agreement (DTA) To Enter Into Force

Singapore’s agreement with Panama for the DTA will come into force on 19 December 2011. This agreement is Singapore’s 68th DTA and the Protocol incorporates the internationally agreed standard for the exchange of information for tax purposes upon request.

The full text of the protocol is available here.

Dec 16, 2011 – Singapore’s Exports Increase By 1.6% In November

According to the International Enterprise (IE) Singapore, a rise in the exports was unexpected due to a sharp contraction of 16.3% last month. This increase was mainly due to more shipment on printed matters and pumps which increased 168% and 150% respectively. Pharmaceutical and electronics sales also rose on-year.

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Dec 15, 2011 – Ministry of Manpower (MOM) Reported Strong Employment Growth In Q3

In Q3 2011, total employment grew by 31,900, higher than the gains of 24,900 in Q2 and this increase was mainly from the services sector. Other sectors also projected growth and the seasonally adjusted overall unemployment rate also decreased with long-term unemployment and layoffs of workers remaining low in Q3.

For full report, please click here.

Dec 15, 2011 – Slower Growth Is Expected For The Manufacturing And Financial Services Sectors In 2012

According to the Monetary Authority of Singapore’s (MAS) December Survey of Professional Forecasters, growth is expected to decline in financial services, hotels and restaurants as well as manufacturing sectors by more than 3%. However, construction and wholesale and retail trade clusters are expected to grow marginally at 1.8% and 2.2% respectively.

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Dec 13, 2011 – ComCare Enterprise Fund (CEF) Enhanced To Provide Additional Funding

From January 2012, social enterprises will be able to tap on more grants from the CEF. The enhanced CEF will allow existing social enterprises with proven track records to obtain more funding for their business expansion. Since the launch in 2003, about 80 social enterprises has benefited from the S$10 million funding.

For press release, please click here.

Dec 13, 2011 – Accounting and Corporate Regulatory Authority (ACRA) Revise The Fees For Information Products And Services

With effect from 1 January 2012, there will be a fee adjustment for the information products and subscription services provided by ACRA. This fee adjustment is necessary due to the escalating operating costs.

For press release, please click here.

Dec 9, 2011 – Another $5 Million Is Invested By Inland Revenue Authority Of Singapore (IRAS) In ACAP To Enhance GST Risk Management

GST-registered companies that undertake Assisted Compliance Assurance Programme (ACAP) from 1 April 2012 can look forward to a second tranche of co-funding. ACAP is a solution for companies to proactively self-mange their GST risks and treat tax risk management as part of their corporate governance framework.

For press release, please click here.
For more details on ACAP, please click the following links:
ACAP Incentives.
Co-funding for ACAP.

Dec 7, 2011 – Additional Buyer’s Stamp Duty (ABSD) Introduced To Stabilise The Property Market

ABSD which takes effect on 8 December 2011 is imposed on certain categories of residential property purchases. It will be over and above the current Buyer’s Stamp Duty and will apply to the purchase price or market value of the property. The main objective for ABSD is to promote a sustainable residential property market where prices move in line with economic fundamentals.

For press release, please click here.

Dec 6, 2011 – Singapore’s Manufacturing Shrinks For Fifth Straight Month In November 2011

According to the Singapore Institute of Purchasing & Materials Management (SIPMM), Singapore's manufacturing sector contracted for the fifth straight month with the Purchasing Managers’ Index (PMI) at 48.7 points, a 0.8 decline from the preceding month. A PMI reading under 50 indicates a contraction and this was due to a drop in production output.

For press release, please click here.

Dec 5, 2011 – Employment Rate For Singapore Residents Increases To 78% In 2011

According to the Ministry of Manpower’s (MOM’s) Singapore Workforce 2011 report, the rate of employment among Singapore citizens (aged 25 to 64 years of age) has reached a new high of 78% in 2011, up from 77% in 2010. Nominal incomes also rose with median monthly incomes growing 8.3% on-year to S$3,249 in 2011.

For full report, please click here.

Dec 2, 2011 – Singapore-Mexico Avoidance Of Double Taxation Agreement (DTA) To Enter Into Force

Singapore’s agreement with Mexico for the DTA will come into force on 1 January 2012. The Protocol incorporates the internationally agreed standard for the exchange of information for tax purposes upon request.

The full text of the protocol is available here.

Dec 2, 2011 – Singapore-Qatar Avoidance Of Double Taxation Agreement (DTA) To Enter Into Force

Singapore’s agreement with Qatar for the DTA will come into force on 1 January 2012. The Protocol incorporates the internationally agreed standard for the exchange of information for tax purposes upon request.

The full text of the protocol is available here.

Dec 1, 2011 – Ministry Of Finance (MOF) Seeks Public Comments On Budget 2012

MOF will be conducting a public consultation on Budget 2012, aimed at garnering public view ahead of Budget 2012. Through this exercise, MOF wants to reach out to Singapore and businesses to receive their feedback on issues and suggestions relating to taxes and public spending for Budget 2012.

For press release, please click here.

Nov 30, 2011 – Low Wage Singaporeans To Receive Workfare Special Bonus (WSB) by 1 December 2011

By 1 December 2011, low-wage Singaporeans will have received the second installment of their WSB payment this year. The WSB is part of the $3.2 billion ‘Grow & Share’ Package. WSB is given on top of the regular Workfare Income Supplement (WIS) and is paid in 4 installments over 2011 and 2012 whereby eligible employees will automatically receive their payments fully in cash.

For press release, please click here.

Nov 29, 2011 – Singapore And Canada Enhance Tax Cooperation

Singapore and Canada signed a Protocol to incorporate the internationally-agreed Standard for the exchange of information for tax purposes, upon request, in their standing Agreement for the Avoidance of Double Taxation (DTA). The protocol will enter into force after its ratification by both countries.

The full text of the protocol is available here.

Nov 23, 2011 – Changes to Work Injury Compensation Act (WICA)

Singapore Parliament has passed the amendments to the Work Injury Compensation Act (WICA) which will take effect on 1 June 2012. The key changes are as follows:

- Updating compensation limits;
- Disallowing compensation for work-related fights;
- Expanding scope of compensable diseases;
- Disallowing work-related exclusion clauses;
- Clarifying the liability of employer’s insurer to pay when there are multiple insurance policies;
- Clarifying the timeframe for filing a claim if one wishes to claim under WICA after having filed a common law claim earlier.

For press release, please click here.

Nov 23, 2011 – Inflation Continues To Moderate A Little To 5.4%

According to the Department of Statistics (DOS), the increase was mainly attributed to higher costs of accommodation, food as well as “recreation & others”. Excluding accommodation costs, the CPI was 0.2% higher in October 2011.

Compared with the same period the previous year, the cost of clothing & footwear and communication dropped 0.8% and 1.7% respectively whereas all other costs rose:

- food (+3.5%)
- housing (+9.9%)
- transport (+10.5%)
- education and stationery (+2.3%)
- healthcare (+1.8%)
- recreation and others (+1.3%)

According to the Monetary Authority of Singapore (MAS), the core inflation measure for October 2011, which excludes the cost of accommodation and private road transport, was 0.3% on-month and 2.3% on-year.

For press release, please click here.

Nov 23, 2011 – SMEs To Enjoy Cash Grant For Income Tax For 2011

Parliament has announced that Small and Medium-sized Enterprises (SMEs) will enjoy a cash grant of up to S$5,000 for income tax in 2011.

SMEs can also benefit from the enhanced Productivity and Innovation Credit (PIC) Scheme. The PIC deduction has been raised from 250% to 400%, increasing the cap on qualifying expenditure from S$300,000 to S$400,000 per activity.

Nov 22, 2011 – Domestic Wholesale Trade Increase By 18% On-Year In Q3 2011

According to the Wholesale Trade Index Third Quarter 2011 published by the Department of Statistics (DOS), Singapore’s domestic wholesale trade expanded 18% on-year in the third quarter of 2011 and 5.1% on-year excluding petroleum.

Taken on a seasonally adjusted basis, domestic wholesale trade declined by 1.9% compared to the preceding quarter, and excluding petroleum, decreased 3.5% on-quarter. Within domestic wholesale trade, on-year gains were recorded for the following sectors while all other sectors recorded contractions between 0.6% and 14.6%.

- Petroleum & Petroleum Products (+36.8%)
- General Wholesale Trade (+24%)
- Ship Chandlers & Bunkering (+20.2%)
- Food, Beverages & Tobacco (+12.3%)
- Transport Equipment (+9.3%)
- Chemicals & Chemical Products (+7.8%)

Meanwhile, foreign wholesale trade grew 17.8% on-year and 10.6% excluding petroleum. On a seasonally adjusted basis, foreign wholesale trade expanded 1.6% on-quarter, and excluding petroleum, expanded marginally by 0.3% on-quarter. Within foreign wholesale trade, all sectors recorded on-year gains except for a 8.8% decline in Electronic Components.

For press release, please click here.

Nov 21, 2011 – Key Exports Are Expected To Decline To 2-3%

According to the statistics released by International Enterprise Singapore (IE), the third quarter of 2011 continued to see a deceleration of trade growth. On a year-on-year (y-o-y) basis, Singapore’s total trade grew by 5.4%, a decline from the 7.5% expansion in the last quarter.

Non-oil domestic exports (NODX) shrank 1.1% year-on-year in the third quarter after growing by 1.9% in the previous quarter. Electronics exports’ contraction also deepened to 17% in Q3, after a 14% slide in Q2. Their decline outweighed non-electronic NODX’s growth, which was moderated to 8.3%, following the 12% growth in Q2. Oil domestic exports rose by 54% year-on-year after increasing by 29% in the preceding quarter.

With the latest statistic in Q3, total trade forecast for 2011 is revised downwards to 8-9%. NODX forecast is also expected to drop to between 2 and 3%.

For press release, please click here.

Nov 21, 2011 – SMEIG Seeks Public Comments On Draft Q&As On The IFRS For SMEs

The SME Implementation Group (SMEIG) will be conducting a public consultation on two draft Questions & Answers (Q&As) on the IFRS for Small and Medium sized Entities (SMEs). This exercise will run from 21 November to 31 January 2012.

The topics covered are as follow:

- Whether an entity may choose to apply the recognition and measurement provisions of IFRS 9;
- Whether the recycling of cumulative exchange differences on disposal of a subsidiary is prohibited.

For press release, please click here.

Nov 21, 2011 – Ministry of Trade and Industry (MTI) Expects 2011 GDP Growth To Be Around 5% and 1% to 3% in 2012

Singapore economy grew by 6.1% on a year-on-year basis in the third quarter of 2011, up from 1% in the last quarter. On a seasonally-adjusted quarter-on-quarter annualised basis, the economy grew by 1.9% after a contraction of 6.4% in the previous quarter.

On a year-on-year basis, the manufacturing sector expanded by 14.2%, a significant increase from the 5.6% decline in the preceding quarter. This was largely due to a rebound in biomedical manufacturing output as some companies switched to producing a higher value mix of pharmaceutical products.

Meanwhile, on a year-on-year basis, the construction sector grew marginally by 0.3%, moderating from the 1.5% growth in the earlier quarter. Transport & storage sector grew by 4.2% whereas the financial services sector increased by 10.5%. Supported by healthy visitor inflows, the hotels & restaurants sector and the “other services” industries (which include arts, entertainment and recreation activities) also grew by 5.6% and 4.0% respectively.

On the other hand, the wholesale & retail trade sector saw a year-on-year decline of 0.2%, mainly due to weakening export activities.

For the last quarter of 2011, growth in the Singapore economy is expected to weaken alongside deteriorating external macroeconomic conditions. However, the biomedical manufacturing (BMS) cluster is likely to see a pullback in growth following the strong surge in the third quarter. Activity in the core financial intermediation is expected to moderate while the sentiment-sensitive segments continue to perform poorly. With these various factors, MTI expects the Singapore economy to grow by around 5% in 2011.

With the global economic conditions expected to remain subdued in 2012, Singapore’s externally-oriented sectors such as electronics and wholesale trade are expected to perform poorly while the financial services sector is likely to be affected by the heightened uncertainties in the external environment. Given these factors, MTI expects Singapore economic growth to be between 1% to 3% in 2012.

For press release, please click here.

Nov 17, 2011 – NODX Declined Further By 16% In October 2011

On a year-on-year basis, Singapore's non-oil domestic exports (NODX) contracted by 16%, a further drop from 4.6% decrease in the previous month. Taken on a month-on-month seasonally adjusted (m-o-m SA) basis, NODX reduced by 5.9% in October 2011, following the previous month’s 9.3% decline, due to the contraction in electronic NODX that outweighed non-electronic NODX.

Except for China (+3.1%) and Indonesia (+5.3%), NODX to Singapore's top 10 markets decreased in October 2011:

- US: -51.0%
- EU 27: -31.0%
- Hong Kong: -31.0%
- Taiwan: -19.0%
- Japan: -6.3%
- Malaysia: -6.0%
- South Korea: -4.0%
- Thailand: -1.1%

Meanwhile, Singapore's total trade in October 2011 grew 5.0% on-year, following the 6.9% growth in the previous month. On a month-on-month seasonally adjusted basis, the total trade expanded by 0.9% while the total exports rose marginally by 0.1% with the total imports increasing by 1.8% in October.

For press release, please click here.

Nov 14, 2011 – IASB and FASB Seeks Public Comments On Revised Proposal For Revenue Recognition

The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) will be conducting a public consultation on a revised draft standard to improve and converge the financial reporting requirements of International Financial Reporting Standards (IFRSs) and US General Accepted Accounting Principles (GAAP) for revenue (and some related costs) from contracts with customers. This exercise will run from 14 November 2011 to 13 March 2012.

The proposed standard would improve IFRSs and US GAAP by:

- Providing a more robust framework for addressing revenue recognition issues;
- Removing inconsistencies from existing requirements;
- Improving comparability across companies, industries and capital markets;
- Providing more useful information to users of financial statements through improved disclosure requirements and
- Simplifying the preparation of financial statements by streamlining the volume of accounting guidance.

For press release, please click here.

Nov 2, 2011 – IASB Seeks Public Comments On Proposed Amendment To IFRS 1

The International Accounting Standards Board (IASB) is conducting a public consultation on the proposed amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards. This exercise will run from 1 November to 25 November 2011.

The proposed change will set out how a first-time adopter would account for a government loan with a below-market rate of interest when they transition to IFRSs.

For press release, please click here.

Nov 1, 2011 – Services Companies Expecting Dimmer Business Outlook For Q4 2011

Fewer companies in the services sector are upbeat about the business outlook in the coming months.

According to the quarterly Business Expectations Survey (Services Sector) Fourth Quarter 2011 conducted by the Department of Statistics (DOS), a net weighted 9% of firms were less optimistic about the prospects for the coming six months.

The survey showed that F&B (+51%), retail (+23%) and accommodation (+15%) sectors were more optimistic as they anticipate higher earnings due to holiday season. Other sectors were more moderate:

- Recreation, community and personal (+7%)
- Information and communication (+4%)

On the other hand, companies in other clusters anticipate weaker taking for the next six months.

- Financial and insurance (-36%)
- Real estate (-35%)
- Transport and storage (-14%)
- Business services (-5%)

For press release, please click here.

Nov 1, 2011 – Singapore-Spain Avoidance Of Double Taxation Agreement To Enter Into Force

Singapore’s agreement with Spain for the avoidance of double taxation (DTA) will come into force on 1 February 2012.

The Protocol incorporates the internationally agreed standard for the exchange of information for tax purposes upon request.

The full text of the protocol is available here.

Oct 31, 2011 – A Surge In Quarter 3 Hiring With Festive Period Coming

According to the preliminary figures released yesterday by the Ministry of Manpower (MOM), employers seem to have already started hiring extra workers to cope with the year-end holiday season, with total employment grew by 32,300 in Q3, a big increase from the gains of 24,800 in the last quarter.

Most of the gains in the third quarter of 2011 came from services, which added 21,900 jobs, accounting about two-thirds of the total employment. Manufacturing and construction sector also added 3,500 and 6,600 jobs respectively.

Meanwhile, the overall unemployment rate also fell from a seasonally adjusted 2.1% in June 2011 to 2.0% in September 2011, despite slower economic growth. Overall redundancies remained low at 2,000 workers in Q3, with 1,200 workers being laid off in the services sector, followed by manufacturing with 700 and construction with another 100 workers.

For press release, please click here.

Oct 31, 2011 – Dimmer Business Outlook Expected For The Next 6 Months

Business sentiment in the manufacturing sector is expected to soften in the next six months to March 2012 as global demand weakens with the Euro debt crisis and slower US economic growth.

According to the survey conducted by the Economic Development Board (EDB) which polled almost 400 industrial producers between September and October 2011, a weighted 7% of manufacturers expect business conditions to improve while a weighted 17% foresee deterioration.

The softer business expectation is broad-based as all clusters in the manufacturing sector are more pessimistic in their outlook for the next six months, with the electronics and precision engineering clusters being the least upbeat, with 20% and 19% of the firms in the respective sectors painting a less favourable business outlook.

Transport engineering, on the other hand is the most optimistic with a net weighted balance of 12% expecting a higher output while the rest of the clusters forecasting a lower level of production.

For press release, please click here.

Oct 31, 2011 – MOF and SC’s Responses To The Public Consultation on Customs (Amendment) Bill 2011

A public consultation exercise was conducted from 2 to 23 September 2011 by the Ministry of Finance (MOF) and Singapore Customs (SC) to obtain feedback on the draft Customs (Amendment) Bill 2011.

A total of 21 sets of written comments were received from the public but as they were either queries for clarification or suggestions that are inconsistent with policy and operational objectives, no change was made to the Customs (Amendment) Bill arising from these feedbacks.

For press release, please click here.

Oct 31, 2011 – Stricter Employment Guidelines To Keep Workforce Singaporean

Guidelines on fair employment practices have been beefed up to keep the country’s workforce Singaporean.

The stronger Tripartite Guidelines released yesterday by the Ministry of Manpower (MOM) and the Tripartite Alliance for Fair Employment Practices (TAFEP) include calling employers to make reasonable efforts to attract and consider Singaporeans for job positions, ensuring that the jobs advertised are open to Singaporeans and employers should work closely with educational institution, recruitment agencies and career centres to attract and recruit Singaporeans.

Such a move came in the wake of growing anxiety among Singaporeans of discriminatory practices at the workplace thus with the enhanced guidelines, MOM and TAFEP hope to ensure Singaporeans remain the core of the workforce and a rough measure is two-thirds of the employees on a company’s payroll must be Singaporeans.

Oct 28, 2011 – Singapore Private Home Prices Up 1.3% in Q3

Private home prices in Singapore continues to rise at a slower pace of 1.3% in the third quarter, according to statistics from the Urban Redevelopment Authority (URA).

This was in line with the flash estimates which showed a 1.3% increase as announced earlier. URA said the rate of price increase has moderated for eight straight quarters, since the fourth quarter of 2009.

For the third quarter of this year, non-landed residential properties in the prime city area, or core central region, increased at a slower pace of 0.7% as compared to the 1.6% increase in the previous quarter.

On the other hand, the city fringe areas, or rest of central region (RCR), posted a 1.2% increase whereas the suburban areas, or outside central region (OCR), also showed an increase of 2.1%; both slightly higher than the last quarter.

URA said that the supply of residential units in the pipeline continues to build up with a total of 76,255 uncompleted private residential units, much higher than the 71,111 units in second quarter of 2011. The pipeline supply of 76,255 units was the highest ever recorded since 1999.

For press release, please click here.

Oct 25, 2011 – Manufacturing Output Grew 12.8% On Surge In Pharmaceutical

Singapore's manufacturing output rose 12.8% on a year-on-year basis due to a surge in the biomedical production.

According to the Monthly Manufacturing Performance published by the Singapore Economic Development Board (EDB), it showed industrial production exceeded the market’s forecast of 10.2% growth, as a result of a 92.3% year-on-year jump in pharmaceutical output.

Taken on a year-on-year basis, chemicals also grew 7.4% whereas transport engineering rose by 4.2%.

Meanwhile, output in the other sectors fell on-year:

- General manufacturing (-6.3%)
- Precision engineering (-6.4%)
- Electronics (-26.5%)

For press release, please click here.

Oct 24, 2011 – Inflation Moderates A Little To 5.5%

Singapore's consumer price index (CPI) in September 2011 fell by 0.2% over August 2011 but with the inflation rate at 5.5%, it’s still marked the fourth straight month consumer prices have risen at a pace of over 5% year-on-year.

According to the Department of Statistics (DOS), the decline was mainly attributed to lower costs of private road transport, clothing and footwear as well as “recreation and others”, which more than offset higher costs of food and accommodation.

Compared with the same period the previous year, the cost of communication dropped 2.7% whereas all other costs rose:

- food (+3.1%)
- clothing and footwear (+0.1%)
- housing (+9.6%)
- transport (+11.4%)
- education and stationery (+2.6%)
- healthcare (+2.0%)
- recreation and others (+1.6%)

Excluding accommodation, CPI reduced by 0.3% in September 2011 while on a year-on-year basis, it rose by 4.2%.

According to the Monetary Authority of Singapore, the core inflation measure for September 2011, which does not include the cost of accommodation and private road transport, was 0% on-month and 2.1% on-year.

For press release, please click here.

Oct 21, 2011 – Ministry Of Law Seeks Public Comments On Arbitration Law

Singapore is fast becoming popular, even for foreign firms, to enter into arbitration to resolve disputes out of court. Thus to strengthen Singapore’s competitive edge as a leading arbitration hub, the Ministry of Law will be conducting a public consultation on the proposed amendments to the International Arbitration Act (IAA). This exercise will run from 21 October to 21 November 2011.

The proposed changes include the followings:

- Relax written requirement rule for arbitration agreements;
- Allow Singapore courts to review negative jurisdictional rulings by arbitration tribunals;
- Define the scope of arbitration tribunals’ powers to award interest and
- Provide legislative support for the appointment of emergency arbitrators.

For press release, please click here.

Oct 20, 2011 – Singapore Remains The Easiest Place To Do Business

According to the ‘Doing Business 2012: Doing Business in a More Transparent World’ report published by the World Bank, Singapore remains the easiest place to do business, with the Asian financial centre keeping its title for a sixth straight year. Following closely are Hong Kong, New Zealand, the United States and Denmark and among the major emerging economies, China was ranked 91st, ahead of Russia (120th), Brazil (126th) and India (132nd).

The global report also showed a record for regulatory reforms with 125 governments out of 183 being surveyed, implemented a total of 245 business regulatory reforms, an increase of 13% from last year. These reforms have shown significant results in boosting business conditions, especially for emerging-market and developing economies.

The ‘Doing Business’ report assesses regulations affecting domestic firms in 183 economies and ranks the economies in ten areas of business regulations and the measurement is taken between June 2010 and May 2011.

For press release, please click here.

Oct 18, 2011 – Private Home Sales Up 20.7% In September

According to the statistics released by Urban Redevelopment Authority (URA), private home sales remain strong with 1,631 private homes, excluding executive condos (ECs) being sold, an increase of 20.7% month on month.

The strong sales were mainly driven by developers rolling out new projects, especially in Outside Central Region, where mass-market developments are located. They accounted for 81% of the 1,631 units being sold in September.

In addition, analysis also showed that about 59% of the 1,631 private homes sold in September were priced at $1,000 per square feet or less. Most developers believe that the buying momentum could continue and 2011 may end with almost as many units sold as in 2010.

Oct 17, 2011 – NODX Declined By 4.5% in September 2011

On a year-on-year basis, Singapore's non-oil domestic exports (NODX) contracted by 4.5%, in contrast to the 3.9% increase in the previous month. Taken on a month-on-month seasonally adjusted (m-o-m SA) basis, NODX reduced by 9.3% in September 2011, a drop from the previous month’s 7.2% growth.

This was mainly due to the contraction in non-electronic NODX which outweighed the rise in electronic NODX. On a seasonally adjusted basis, NODX in September 2011 reached S$14 billion, a decrease of S$1 billion as compared to last month.

Except for US (-35.0%), Taiwan (-19%) and Malaysia (-1.3%), NODX to Singapore's top 10 markets grew in Q3 2011:

- Indonesia: +17.7%
- EU 27: +5.0%
- Hong Kong: +5.6%
- Thailand: +15.8%
- China: +4.6%
- South Korea: +8.6%
- Japan: +0.8%

Non-oil retained imports of intermediate goods (NORI) also declined by S$840 million from S$5,645 million in the previous month to reach S$4,805 million in September 2011.

Meanwhile, Singapore's total trade in September 2011 grew 7.0% on-year, following the 9.9% growth in the previous month. On a month-on-month seasonally adjusted basis, the total trade contracted by 3.5% while the total exports rose by 1.4% with the total imports decreasing by 8.6% in September 2011,

For press release, please click here.

Oct 14, 2011 – Ministry of Trade and Industry (MTI) Expects 2011 GDP Growth To Be Around 5%

Singapore economy grew by 5.9% on a year-on-year basis in the third quarter of 2011, an increase from the 1.0% growth in the second quarter. On a seasonally-adjusted quarter-on-quarter, the economy grew by 1.3% after a contraction of 6.3% in the last quarter.

The improved economic performance was mainly due to a pick up in the biomedical manufacturing cluster. On a year-on-year basis, the manufacturing sector expanded by 13.2 % in the third quarter, after decreasing by 5.8% in the previous quarter. The surge in the biomedical manufacturing sector offset the decline in the electronics cluster.

Meanwhile, both the construction and services producing sectors grew by 0.4% and 3.6% respectively on a year-on-year basis in the third quarter.

With the weak global economic conditions, the growth is expected to be weighed down especially for the electronics sector, due to the easing of global electronics demand. The financial services sector could also be dampened by the heightened economic and financial uncertainties.

For press release, please click here.

Oct 12, 2011 – Almost Half Of Tax Suggestions Are Accepted

The Ministry of Finance (MOF) has accepted for implementation 23 out of the 55 suggested changes to the draft Income Tax (Amendment) Bill 2011, after a public consultation exercise conducted from 11 July to 1 August 2011.

The accepted suggestions will be incorporated into the revised Income Tax (Amendment) Bill 2011.

Some of the key changes include:

- An expanded list of qualifying equipments under the Productivity and Innovation Credit (PIC) scheme;
- Amendments to the provisions to ensure that tax deductions will be computed on the correct amount of recharges by the holding company and the amount payable by the employees and
- Clearer definitions for companies that are eligible for tax benefits for making voluntary Medisave contributions for self-employed individuals.

For press release, please click here.

Oct 11, 2011 – Singapore Employment Rate Is Among The World’s Highest

Singaporeans have one of the highest employment rate internationally, with almost eight in ten working-age Singaporeans holding jobs last year, according to a government paper.

In the latest findings conducted by Ministry of Manpower’s (MOM) research and statistic department and the Singapore Department of Statistics, 77% of Singaporeans in the 25-64 age group were employed last year, surpassing the other Asian newly-industralising economies (NIEs) and many advanced economies. With the strong economic recovery, the jobless rate for Singaporean citizens was 3.1% in June 2011, on a seasonally-adjusted basis, a decline from a high 4.5% during the economic recession in 2009.

However, an exception was observed among the older population aged 55 to 64 where the employment rate for them fell behind countries like Japan, South Korea and the United States. In addition, the proportion of employed older women also remains lower than in many countries despite gains over the last decade.

For full report, please click here.

Oct 10, 2011 – SIC Seeks Public Comments On Proposed Amendments To The Singapore Code On Take-Overs And Mergers

The Securities Industry Council (SIC) will be conducting a public consultation on the proposed amendments to the Singapore Code on Take-overs and Mergers to keep pace with market innovation and international practices. This exercise will run from 10 October to 7 November 2011.

The key proposals in the paper include the following:

- To set out the circumstances where SIC may order compensation and clarify the sanctions which SIC may impose for breaches of the Singapore Code;
- To explicitly require disclosure of the holdings of offeree company shares of the offeror which have been charged as security, borrowed or lent;
- To clarify when shareholders voting together at a general meeting would be regarded as parties acting in concert;
- For the purpose of the definition of “associate”, to lower the threshold for disclosure of dealings during an offer period by holders of sizable stakes in the offeree company from 10% to 5% and
- To require disclosure of dealings in long options and derivatives during the offer period by persons holding 5% or more in the offeree company.

For press release, please click here.

Oct 10, 2011 – Singapore-Uzbekistan Avoidance Of Double Taxation Agreement To Enter Into Force

Singapore’s agreement with Uzbekistan for the avoidance of double taxation (DTA) will come into force on 1 November 2011.

The Protocol incorporates the internationally agreed standard for exchange of information into the standing DTA.

The full text of the protocol is available here.

Oct 6, 2011 – IE Singapore Deepen Economic Ties With Latin America

Despite the uncertainties in the global economy, Singapore-based companies are still stepping up engagement with the thriving Latin America. In the first eight month of 2011, Singapore’s bilateral trade with Latin America rose 38% over the same period in 2010 to reach $25.9 billion.

To further deepen the economic ties, International Enterprise (IE) Singapore signed a Memorandum of Understanding (MOU) with the Development Bank of Latin America (CAF) at the Latin Asia Business Forum that was held yesterday.

CAF, a multilateral development bank which comprises 19 member countries in Latin America, the Caribbean and Europe is one of the largest sources of public financing in Latin America.

The agreement will establish greater collaboration between Singapore and CAF’s member countries by providing a platform for them to exchange experiences in urban solutions, energy, trade facilitation and electronic government services.

For press release, please click here.

Oct 3, 2011 – Work Permit Fees To Increase From December 2011

The administrative fees for most work passes in Singapore will be increased from 1 December 2011 after a review done by the Ministry of Manpower (MOM).

This increase in fees is to be in line with the government’s financial principle that the full cost of providing a public service should be borne by users of the service rather than taxpayers in general.

The key changes are:

- Application fees for employment pass, S pass and work permit will be increased from $10 to $20;
- Issuance fees for employment pass and S pass will be increased to $120 and $70 respectively and it will be charged per transaction instead of per year and
- Existing subsidy of $20 for employers who request for issuance or renewal of work permits online will be withdrawn.

Application and issuance fees for other passes will generally be adjusted to align with the employment pass, S pass and work permit.

For press release, please click here.

Oct 3, 2011 – Singapore Private Home Prices Continue To Rise Moderately In Q3

According to the flash estimate from the Urban Redevelopment Authority (URA), private home prices in Singapore has continued to rise at a slow pace of 1.3% in the third quarter.

The property price index stood at 205.7 points in the third quarter, a rise of 2.7 points from 203.0 points in previous quarter.

URA said the rate of price increase has moderated for eight straight quarters, since the fourth quarter of 2009.

For the third quarter of this year, non-landed residential properties in the prime city area, or core central region, increased by 0.8% whereas the city fringe areas, or rest of central region, posted a 1.1% increase. Suburban areas, or outside central region, also showed an increase of 2.1%.

For press release, please click here.

Sep 30, 2011 – Half Of 22 GST Suggestions Are Accepted

The Ministry of Finance (MOF) has accepted for implementation 11 of the 22 suggested changes to the draft Goods and Services Tax (Amendment) Bill 2011, after a public consultation exercise conducted from 8 July to 28 July 2011.

The accepted suggestions will be incorporated into the revised Goods and Services Tax (Amendment) Bill 2011 or IRAS’ e-tax guides.

Some of the key changes include:

- A new scheme for “approved marine customers” to buy or rent zero-rated goods for use or installation on internationally bound commercial ships;
- Expansion of scope for zero-rating of repair and maintenance services and easing of compliance requirements for the marine industry;
- Enhancement and extension of the Approved Contract Manufacturer and Trader (ACMT) Scheme to include qualifying biomedical contract manufacturers;
- New zero-rating relief for specified supplies made to overseas persons for goods kept in ‘approved specialised warehouses’ in Singapore and
- Expansion of scope for recovery GST on goods imported on behalf of overseas persons.

For press release, please click here.

Sep 28, 2011 – SMEIG Seeks Public Comments On Five Draft Q&As For The IFRS For SMEs

The SME Implementation Group (SMEIG) will be conducting a public consultation on the five draft Questions & Answers (Q&As) on the IFRS for SMEs. This exercise will run from 28 September to 30 November 2011.

The five draft Q&As include the following topics:

- Application of the IFRS for SMEs for financial periods ending before the IFRS for SMEs was issued;
- Interpretation of ‘undue cost or effort’ and ‘impracticable’;
- Jurisdiction requires fallback to full IFRSs;
- Departure from a principle in the IFRS for SMEs and
- Prescription of the format of financial statements by local regulation.

For press release, please click here.

Sep 28, 2011 – Singapore's Population Hits 5.18 Million

According to official data released by the Singapore Department of Statistics, Singapore's population has reached 5.18 million as at end-June 2011.

There were 3.79 million residents, of whom 3.26 million were Singapore citizens and 530,000 were permanent residents.

Singapore's total population growth registered a growth rate of 2.1 per cent due to increases in the number of citizens and non-residents. The number of Singapore citizens grew by 0.8% between 2010 and 2011, comparable to the annual growth rate of 0.8% to 1.1% registered between 2005 and 2010. Growth in the number of non-residents rose to 6.9% to 1.39 million as compared to 1.31 million in 2010. On the other hand, the number of permanent residents declined by 1.7% to 532,000 in 2010.

Singapore's resident population grew older as well, with the median age of the resident population rising from 37.4 years in 2010 to 38.0 years this year.

The old-age support ratio (number of persons aged 15-64 years per elderly aged 65 years and over) for the resident population is 7.9 for this year, a decline from 8.2 in 2010.

As for ethnic composition, the statistics remain the same as last year with Chinese forming 74% of the resident population while the Malays and Indians took up 13% and 9.2% of the population share respectively.

For full report, please click here.

Sep 28, 2011 – Singapore Information Technology Is The Most Competitive in Asia-Pacific

According to the latest edition of Economist Intelligence Unit’s (EIU) IT Industry Competitive Index, Singapore rose six places to clinch the world’s third most competitive and Asia-Pacific most competitive economy in information technology.

Such a huge move was highly attributed to Singapore’s strong R&D environment, support for the IT industry as well as vast improvement in human capital.

The EIU index assesses 66 countries over a series of indicators and they include: overall business environment, IT infrastructure, human capital, research and development (R&D), legal environment and public support for industry development.

Sep 27, 2011 – MAS Seeks Public Comments On Proposed Changes to The Regulatory Regime For Fund Management Companies

Monetary Authority of Singapore (MAS) will be conducting a public consultation on the proposed changes and additional proposals to enhance the Regulatory Regime for Fund Management Companies. This exercise will run from 27 September to 26 October 2011.

Some of the proposed amendments include the following:

- Development of a risk management framework over the fund management operations;
- Annual independent audits for FMCs and
- Introduction of a new Capital Markets and Financial Advisory Services (CFMAS) examination.

For press release, please click here.

Sep 26, 2011 – Manufacturing Grew 21.7% On-Year in August

Singapore's manufacturing output rose 21.7% on a year-on-year basis whereas on a month-on-month basis, the rise was 3.9%.

According to the Monthly Manufacturing Performance published by the Singapore Economic Development Board (EDB), an expansion of 145.8% on-year in the biomedical manufacturing has cushioned Singapore from a technical recession. This biomedical jump was attributed to the strong growth in the pharmaceuticals segment.

Taken on a year-on-year basis, precision engineering also grew 4.1% whereas transport engineering rose by 1.2%.

Meanwhile, output in the other sectors fell on-year:

- Chemicals (-1.2%)
- General manufacturing (-8.0%)
- Electronics (-21.9%)

For press release, please click here.

Sept 24, 2011 – Cost of living in Singapore up 5.7% year-on-year

Inflation in August jumped more than expected, rising 5.7 per cent compared with a year ago, the Department of Statistics.

This was faster than a 5.15 per cent forecast by economists polled by Reuters. Compared with July, inflation inched higher, at 0.7 per cent.

Higher costs of accommodation, private road transport and food were responsible for the year-on-year increase. Accommodation costs reflect a higher imputed rental for owner-occupied homes and does not affect the expenditure of the households. Private road transport costs rose due to the increase in COE premiums.

Clothing and footwear and communication costs were the only two categories that registered year-on-year falls. Excluding accommodation, inflation was 4.4 per cent.

Sept 15, 2011 – Job slowdown in second quarter but layoffs remain low

As the number of jobs created slowed down in the second quarter, Singapore's unemployment rate increased in June to reach 2010 levels of 2.1 per cent.

However, the number of layoffs remained low and job vacancies stayed healthy, noted the Ministry of Manpower in its quarterly labour market report.

Total employment grew by 24,800 from April to June this year, down from 28,300 from January to March but comparable to the 24,900 jobs created in April to June last year.

The services industry continued to contribute to the bulk of jobs created, adding 20,200 jobs in the second quarter.

Sept 8, 2011 – Singapore economy is second most competitive in the world

Singapore has cinched second position for global competitiveness and maintained its lead among Asian economies in the latest World Economic Forum (WEF) survey.

The Republic moved up one place from last year to inch past Sweden, but failed to edge out Switzerland for the top spot. Survey respondents rated the country:

- top for public trust of politicians and transparency in policymaking
- top for the efficiency of its goods market and development of its financial market, and second for the efficiency of its labour market
- having the most efficient legal framework for businesses to settle disputes

However, the survey found that Singapore still has to work on building its capacity for innovation. It also identified the top problems of doing business here - inflation, restrictive labour regulations and inadequately educated workforce.

The WEF survey assesses countries over several indicators like Government efficiency and business environment. The rankings are then calculated from public data and an in-house Executive Opinion Survey which polls over 15,000 respondents in 142 countries.

For the full report, please click here.

Sept 6, 2011 – Singapore's inflation to remain high over next few months

Singapore's inflation rate may come in above 5% for the next few months due to rising housing and transport expenses.

The high cost of buying cars will also add to the upward pressure on the consumer price index (CPI), said the Monetary Authority of Singapore (MAS). July's inflation accelerated to over 5.4% on-year.

However, the central bank is maintaining its forecast of 4% - 5% inflation for the whole year.

Meanwhile, Singapore's gross domestic product (GDP) growth is projected to grow 5% - 6% in Q2 2011 despite weaker economic growth in US and Europe.

To download the full report, please click here.

Sept 2, 2011 – MOF And Singapore Customs invite the public to give feedback on changes to The Customs Act

The Ministry of Finance and Singapore Customs are conducting a public consultation on the draft Customs (Amendment) Bill 2011. The public consultation will run from 2 September to 23 September 2011.

Some of the main amendments being considered for the Customs (Amendment) Bill 2011 are as follows:

a) Changes to enhance the customs enforcement regime:

• Enhance penalties for contraband tobacco offenders to increase deterrence; and
• Extend liability to the person who furnishes incorrect information to another person for making customs declarations.

b) Changes to facilitate the sharing of information among domestic public agencies:

• Allow disclosure of information collected under the Customs Act to domestic public agencies for the investigation and prosecution of offences under domestic laws and to safeguard national security, public health and safety.

c) Changes arising from ongoing reviews of the customs regime that seek to improve customs administration or to clarify existing customs legislation:

• Introduce a summons system for minor customs offences;
• Allow the appointment of agents for the recovery of duties to reduce administrative costs and aid timely recovery;
• Allow retention of trade documents in image systems instead of retaining paper documents; and
• Miscellaneous changes to give greater legal clarity and to align provisions within the Customs Act with current operations.

For press release, please click here.

Aug 29, 2011 – 3,500 SMEs To Benefit From SPRING's S$320M Innovation Fund

SPRING Singapore has committed S$320 million over the next 5 years to support SMEs in driving innovation.

About 3,500 SMEs can potentially benefit from SPRING Singapore's Technology Innovation Programme (TIP).

The programme is to help local companies make use of technological innovations that add value to their business model, operations or products/services. Qualifying companies can tap on a 50-70% subsidy on qualifying costs.

Till date, 2,500 SMEs have benefited from funding in various forms from SPRING Singapore.

To learn more about TIP, please click here.

Aug 24,2011 – Inflation Grew 5.4% On-Year In July 2011

Singapore's consumer price index (CPI) rose by 5.4% on-year in July 2011.

According to the Department of Statistics (DOS), this was because of higher on-year costs for:

- transport (+11.5%)
- housing (+9.5%)
- food (+3%)

Excluding accommodation, the inflation rate would have been 4.2%.

On-month, the CPI in July 2011 rose 1.5% because of higher costs for:

- housing (+3.2%)
- transport (+2.7%)
- food (+0.2%)

According to the Monetary Authority of Singapore, the core inflation measure for July 2011 – which does not include the cost of accommodation and private road transport – was 0.5% on-month and 2.2% on-year.

For press release, please click here.

Aug 17, 2011 – Stricter Requirements For Employment Pass Holders By January 2012

Requirements for new and existing Employment Pass (EP) holders will be tightened from 1 January 2012 by the Ministry of Manpower (MOM).

1. Q1 Pass:

- The single qualifying salary of S$2,800 will be removed.
- Applicants who are young graduates must earn at least S$3,000 and have 'good' educational qualifications.
- Older applicants must earn a higher salary in line with their work experience.

2. P2 Pass: the current qualifying salary of S$4,000 will be increased to S$4,500.

3. P1 Pass: no change in qualifying salary of S$8,000.

MOM will phase in the new criteria over the next 2 years.

- EPs expiring on or after 1 July 2012 will be subject to these new requirements.
- EPs that expire before 1 January 2012 will receive a one-time renewal of up to two years (based on the criteria before July 2011).
- EPs that expire between 1 January 2012 and 30 June 2012 will get a one-time renewal of up to a year.

Employers can use MOM's self-assessment tool to check if their employees can meet the new criteria.

The revised criteria for EPs are in place to reduce Singapore's dependence on foreign workers and to maintain the proportion of foreign workers to about one third of the Singapore workforce.

For press release, please click here.

Aug 15, 2011 – Private home sales up 17% in July

The prospect of a significant downward move in Singapore private property prices appears remote, regardless of government moves to cool the market.

Private home sales in July jumped 17 per cent to 1,386 units.

However, analysts said buyers snapped up properties before this month's traditionally slow Hungry Ghost season.

More representative is the half year mark - with some 9,400 private homes sold. This is down 5 per cent from the same period last year.

This means it is unlikely that private home sales figures can surpass last year's.

Although sales are expected to slow, analysts said home buyers waiting for prices to come down will be disappointed.

Aug 10, 2011 – Growth Forecast for Singapore In 2011 Revised Downward To 5-6%

The Ministry of Trade and Industry (MTI) has revised the growth forecast for Singapore to 5-6%, lower than the initial projection of 5-7%.

This comes as the global financial market remains turbulent. Debt-plagued Europe, the sluggish US economy and Japan's recovery from this year's devastating earthquakes have slowed down global economic growth.

The volatile financial market and weak US and EU economies could impact Singapore's economic growth, and MTI cautioned that a technical recession may occur.

Singapore's own economic growth has slowed in recent months. The Singapore economy grew 0.9% on-year in the second quarter of (Q2) 2011, but dipped 6.5% on-quarter.

This was due to a slowdown across most sectors. Wholesale and retail trade remained flat, and there was modest growth in the construction (1.5%) and business services sectors (2.2%). Manufacturing contracted 5.9% on-year in Q2 2011.

Financial services meanwhile grew 10% on-year. Hotels and restaurants continued to post growth and expanded 6.4% on-year.

For press release, please click here.

Aug 10, 2011 – NODX Grew 2.1% On-Year In Second Quarter Of 2011

Singapore's non-oil domestic exports (NODX) increased a modest 2.1% on-year in the second quarter of (Q2) 2011, significantly down from 12% in the previous quarter.

Taken on a seasonally adjusted on-quarter basis, NODX declined 1.9% in Q2 2011.

Electronic NODX decreased 14.4% on-year in Q2 2011, following a decline of 7.2% the previous quarter. Non-electronic NODX saw flat growth on-year but increased 4.1% on-quarter in Q2 2011.

Except for Hong Kong (-18.7%), Japan (-0.7%), the US (- 2.4%) and Malaysia (-1.4%), NODX to Singapore's top 10 markets grew in Q2 2011:

- EU27: +8.5%
- Taiwan: +8.5%
- China: +7.1%
- Thailand: +3%
- Indonesia: +2.3%
- Korea: +0.6%

Meanwhile, Singapore's total trade in Q2 2011 grew 7.5% on-year, following the 12% growth in the previous quarter. Total trade in the first half of 2011 grew by 9.6%. The expansion was due to increases in both oil and non-oil trade. Total exports grew 6.8% and total imports grew 8.4% 2Q 2011.

For press release, please click here.

Aug 3, 2011 – MOF invites the public to give feedback on changes to the Stamp Duties Act

The Ministry of Finance will be conducting a public consultation on 8 proposed legislative amendments in the draft Stamp Duties (Amendment) Bill 2011. This exercise will run from 3 to 23 August 2011.

The draft Stamp Duties (Amendment) Bill 2011 implements 2 tax changes announced in Budget 2011. The changes are:

- Extension of stamp duty relief to private companies that convert to Limited Liability Partnerships; and
- Removal of most $2 and $10 nominal and fixed stamp duties on documents.

The draft Stamp Duties (Amendment) Bill 2011 also provides for 6 changes identified from regular reviews of the stamp duty regime to improve stamp duty administration. The changes include:

- Alignment of the stamp duty relief for qualifying mergers and acquisitions (M&As) more closely to the conditions in the income tax allowance for qualifying M&As; and
- Provision for the Minister to waive conditions for any relief, remission or exemption of stamp duty.

For press release, please click here.

Jul 30, 2011 – Unemployment up to 2.1% in second quarter

Singapore's unemployment crept up to 2.1 per cent in the second quarter of this year, from a three-year low of 1.9 per cent in the previous quarter.

The Manpower Ministry, in releasing preliminary estimates, said the rise came as a result of slower job creation.

The 22,800 jobs created between April and June represented a 19 per cent fall from the previous quarter and is a second consecutive quarter-on-quarter decline in employment growth.

The services sector alone accounted for the drop, with new jobs in that sector falling from 26,500 to 18,800. Job creation picked up speed in the other two sectors - manufacturing and construction.

The Ministry estimates that 81,300 Singapore residents were unemployed as of June this year, up from 54,300 in March.

The figure reflects "the increase in job seekers as tertiary graduates entered the labour market and students sought employment during the mid-year school vacation", it said.

Jul 30, 2011 – The Singapore Department of Statistics has released the Q3 Business Expectations for the Services Sector

An overall net weighted balance of 19% of firms in the services sector is optimistic about the business prospects for the period of Jul - Dec 2011 compared with Jan - Jun 2011. This magnitude is slightly larger than the net weighted balance of 17% recorded for Apr - Sep 2011. However, it is smaller than the net weighted balance of 33% registered for Jul - Dec 2010.

For full report, please click here.

Jul 25, 2011 – Singapore's June inflation up 5.2% on-year

Singapore's Consumer Price Index (CPI) in June rose 5.2 per cent year-on-year. This was in line with market expectations, and higher than the 4.5 per cent rise in May.

The upward cost pressures were concentrated in the usual sectors of transport, housing and food.

A rise in accommodation costs and electricity tariffs pushed up housing costs by 8.8 per cent. The cost of transport increased by 10.4 per cent because of more expensive cars and petrol, while food prices rose 3.1 per cent on-year. Education and stationery costs moved up 3.3 per cent and healthcare cost increased by 2.3 per cent.

Core inflation - which excludes more volatile items such as accommodation and transport - rose 2.3 per cent year-on-year. On a month-on-month basis, headline CPI slipped 0.2 per cent, while core inflation remained unchanged.

And headline inflation is not expected to moderate at least until the end of the year.

For press release, please click here.

Jul 22, 2011 – MAS Revises Inflation Forecast For 2011 Upward To 4-5%

The Monetary Authority of Singapore (MAS) revised its inflation forecast for 2011 to between 4% and 5%, up from the previous 3% to 4%.

According to MAS, this is due to higher costs for accommodation and private vehicles as rental and COE prices have both surged.

The core inflation forecast for 2011 is expected to be between 2% and 3%, unchanged from the previous estimation.

To keep a lid on inflation, which is higher than the historic average of 1.7%, MAS said it would monitor inflationary pressures and key export markets.

Meanwhile MAS also said that the forecasted growth rate for Singapore in 2011 remains at 5% to 7%.

Jul 22, 2011 – Singapore private home prices up 2% in Q2

Private home prices in Singapore rose at a slower pace of 2 per cent in the second quarter, according to statistics from the Urban Redevelopment Authority (URA).

This was in line with the flash estimates which showed a 1.9 per cent increase as announced earlier.

The property price index stood at 203 points in the second quarter. In the previous quarter, the price index grew 2.2 per cent to 199.1 points.

URA said the rate of price increase has moderated for seven straight quarters, since the fourth quarter of 2009.

For the second quarter of this year, non-landed residential properties in the prime city area, or core central region, increased by 1.6 per cent.

The city fringe areas, or rest of central region, posted a 1.1 per cent increase. Suburban areas, or outside central region, also showed an increase of 1.7 per cent.

URA said that the supply of residential units in the pipeline continues to build up.

There was a total of 71,111 uncompleted private homes at the end of the second quarter. This was higher compared to the 68,887 units in the first quarter.

Jul 19, 2011 – Singapore-Albania avoidance of double taxation agreement comes into force

Singapore’s agreement with Albania for the avoidance of double taxation (DTA) came into force on 19 July 2011.

The agreement is Singapore’s 67th DTA and will encourage and facilitate cross-border trade and investment between Singapore and Albania, by providing greater clarity on taxing rights and minimising the scope of double taxation between the two nations. Amongst other provisions, the DTA provides for tax exemption in the country of source on profits derived from the operations of ships or aircraft in international traffic and lower withholding tax rates for interest and royalties. The DTA also includes the internationally agreed Standard for the exchange of information for tax purposes upon request.

The full text of the protocol is available here. The Protocol will enter into force after its ratification by both countries.

Jul 15, 2011 – Private home sales in June drop 25% on-month

Sales of private homes fell 25 per cent in June from a month earlier, according to data released by the Urban Redevelopment Authority (URA).

A total of 1,182 private residential units were sold last month, down from 1,575 units in May.

The month-on-month dip came about despite an increase in launches in June. A total of 1,614 units were launched in June, up from 1,215 in May.

Analysts said the lower transaction volumes were due to seasonal June holidays effect. The government's plans to increase public housing and the weak global economy also dented buying sentiment.

Private homes in the Outside Central Region (OCR) accounted for 833 of the units sold in June, compared with 227 units in the Rest of Central Region (RCR) and 122 units in the Core Central Region (CCR).

Including Executive Condominiums (ECs), the total sales in June would have been higher, at 1,394 units.

Jul 14, 2011 – Economic Growth Eased in Second Quarter 2011

Based on advance estimates, the economy grew by 0.5 per cent on a year-on-year basis, down from the 9.3 per cent growth in the previous quarter. On a seasonally-adjusted quarter-on-quarter annualised basis, the economy contracted by 7.8 per cent, compared to the 27.2 per cent expansion in the previous quarter.

The moderation in growth reflected a slowdown across many sectors. On a year-on-year basis, the manufacturing sector declined by 5.5 per cent in the second quarter of 2011, after expanding by 16.4 per cent in the previous quarter. On a sequential basis, the sector contracted by an annualised rate of 22.5 per cent, a sharp reversal from the strong growth of 96.6 per cent in the preceding quarter. This largely reflected a decline in the biomedical manufacturing cluster, as some companies switched to producing a different value-mix of active pharmaceutical ingredients during the quarter. Output in the electronics cluster also fell, partly due to an easing in global demand for semiconductor chips.

MTI will release in August 2011 the preliminary GDP estimates for the second quarter, including performance by sectors, sources of growth, inflation, employment and productivity in its Economic Survey of Singapore.

For press release, please click here.

Jul 12, 2011 – Economists forecast weak Q2 GDP growth

A relatively weak GDP growth for Singapore is being forecast for the second quarter this year.

According to market consensus, the economy is expected to have grown just one percent year-on-year in the second quarter. Quarter-on-quarter, it is expected to have contracted 2.6 percent.

Although this will make it Singapore's slowest growth in two years, economists say it will not be a cause for panic.

The Singapore economy started the year strongly, with the GDP growing 8.3 percent on-year in the first three months.

But the story for the second quarter will be much less rosy, partly due to high base effects and a soft patch during that period.

Jul 12, 2011 – Singapore ranked 8th most expensive city for expats

Singapore has entered the top 10 list of Mercer's 2011 cost of living survey, moving up two spots to be ranked the 8th most expensive city for expatriates. Angola's capital, Luanda, has retained the unenviable title of the world's most expensive city for expatriates, narrowly edging out Tokyo, according to the survey recently published.

At the other end of the scale, the Mercer group's study named the Pakistani port Karachi as the least expensive city, with living around three times cheaper than in Luanda.

New entries in the top 10 list of the costliest cities in the world for expatriates are Singapore (8), up from 11, and Sao Paolo (10), which has jumped 11 places since the 2010 ranking.

The most expensive city in Asia is Tokyo (2), followed by Osaka (6). Singapore (8) has joined the list of the world's top 10 most expensive cities in the world due to the strengthening of the Singapore Dollar and the substantial increase in housing costs.

Jul 11, 2011 – MOF Invites The Public To Give Feedback On Changes To The Income Tax Act

The public is invited to share feedback on the proposed changes to the draft Income Tax (Amendment) Bill 2011.

The proposed amendments to the Income Tax Act (“ITA”) principally relate to the changes announced in the 2011 Budget Statement. The key changes include the following:

- Enhancement of the Productivity and Innovation Credit (“PIC”) Scheme to further encourage pervasive innovation and raise productivity efforts by increasing the amount of tax deductions and improving the PIC qualifying conditions;
- One-off corporate tax rebate of 20% up to $10,000; or SME Cash Grant of up to $5,000 to help companies with rising cost;
- Introduction of the Foreign Tax Credit (“FTC”) Pooling System to allow businesses to pool their tax credits for foreign tax suffered so as to simplify tax compliance and reduce their tax payable on the remitted foreign income;
- Introduction of the Maritime Sector Incentive (“MSI”) to enhance and streamline all existing maritime tax incentives under an umbrella incentive; and
- Changes to personal income tax rate structure for resident individuals.

For press release, pls click here.

Jul 8, 2011 – MOF Seeks Public Feedback On Proposed Changes To GST Act

The public is invited to share feedback on the proposed changes to the Goods and Services Tax (GST) Amendment Bill.

According to the Ministry of Finance (MOF), amendments in the draft GST (Amendment) Bill are aimed at lowering the cost of GST compliance for the marine, biomedical and logistics sectors.

Some of the changes for the marine sector include:
- allowing qualifying marine entities to buy or rent GST-free goods provided these are used on commercial ships that only travel internationally
- making repair and maintenance services GST-free for qualifying ships
- easing GST-compliance for ships that dock temporarily in Singapore

In the biomedical sector, the changes include:
- allowing qualifying contract manufacturers to disregard GST on services for failed or excess production
- recovering GST on goods bought locally and used in the process of contract manufacturing
- allowing GST reliefs for clinical trial materials imported into Singapore

For press release, pls click here.

Jul 1, 2011 – Rate of increase of private residential property prices falls further in 2nd quarter 2011

According to URA's flash estimate of the private residential property index for 2nd Quarter 2011, the rate of increase in private residential property prices has fallen for the 7th consecutive quarter since 4th Quarter 2009.

Based on the flash estimate, prices rose from 199.1 points in 1st Quarter 2011 to 202.8 points in 2nd Quarter 2011. This represents an increase of 1.9%, compared with 2.2% in the previous quarter.

Prices of non-landed private residential properties increased by 1.6% in Core Central Region and Outside Central Region, and 1.2% in Rest of Central Region in the quarter. In comparison, in 1st Quarter 2011, prices of non-landed private residential properties increased by 1.1% in Core Central Region, 2.0% in Rest of Central Region and 3.1% in Outside Central Region.

For press release, pls click here.

Jun 24, 2011 – Inflation Up 4.5% On-Year In May 2011

The consumer price index (CPI) rose by 4.5% on-year in May 2011 and 0.6% compared with the previous month.

Excluding the cost of accommodation, the CPI in May rose 3.3% on-year but fell slightly by 0.2% when compared to April 2011. According to the Department of Statistics (DOS), higher costs for housing, transport and food led to the higher CPI.

Compared with the same period the previous year, the cost of communication dropped 0.3%. All other costs rose:

- housing (+8.1%)
- transport (+7.5%)
- education and stationery (+3.2%)
- food (+2.8%)
- healthcare (+2.6%)
- recreation and others (+1.2%)
- clothing and footwear (+0.6%)

Compared with the same period last year, CPI for this January to May increased 4.9%.

According to the Monetary Authority of Singapore, the core inflation measure – which does not include the cost of accommodation and private road transport – fell 0.1% on-month and 2.1% on-year.

For press release, please click here.

Jun 24, 2011 – Singapore and India enhance tax cooperation

Singapore and India signed a Protocol to incorporate the internationally-agreed Standard for the exchange of information for tax purposes, upon request, in their standing Agreement for the Avoidance of Double Taxation.

The full text of the protocol is available here. The Protocol will enter into force after its ratification by both countries.

Jun 16, 2011 – Singapore unemployment hits lowest rate in 3 years

According to the Ministry of Manpower (MOM), Singapore's unemployment rate fell to its lowest rate in three years amid healthy economic growth.

The overall unemployment rate fell from a seasonally adjusted 2.2 per cent in December 2010, to 1.9 per cent in March 2011.

Total employment rose by 28,300 in the first quarter of 2011, down from the seasonal high gains of 33,900 in the fourth quarter of 2010, which MOM said was driven by year-end hirings for the festive season. An estimated 54,300 residents were unemployed in March 2011.

Most of the gains in the first quarter of 2011 came from services, which added 26,500 jobs. All services industries expanded their workforce, led by community, social and personal services (9,000), professional services (4,400) and wholesale and retail trade (3,400).

MOM also said job vacancies rose substantially by 32 per cent over the year to 49,300 in March 2011. However, after adjusting for seasonality, job vacancies rose by 17 per cent over the quarter to 54,000, a new high since comparable series started in March 2006.

Nominal average monthly earnings rose by 8.5 per cent over the year, accelerating from the growth in the preceding four quarters. After factoring in inflation, real average monthly earnings rose by 3.2 per cent. This was slightly lower than the growth of 3.4 per cent in the previous quarter, but was still higher than the 2.1 per cent to 2.8 per cent climb in the first three quarters of 2010.

Jun 15, 2011 – Singapore and Uzbekistan enhance tax cooperation

Singapore and Uzbekistan signed a Protocol to incorporate the internationally-agreed Standard for the exchange of information for tax purposes, upon request, in their standing Agreement for the Avoidance of Double Taxation.

The full text of the protocol is available here. The Protocol will enter into force after its ratification by both countries.

Jun 8, 2011 – Singapore economy set to grow 6.2% in 2011

Private sector economists have upgraded their outlook for Singapore's economic growth to 6.2 per cent for the full-year 2011.

This is an upgrade from the 5.7 per cent forecast in the previous poll of economists by the Monetary Authority of Singapore, released in March.

But while the numbers may be looking up, experts said with looming challenges at the horizon, it is not the time to get distracted by headline figures.

Singapore's economy in the first quarter got a shot in the arm from sectors such as pharmaceutical, lifting economists' forecast for the year ahead.

But experts said the revision is based on past results and this does not stop Singapore from catching a cold from challenges that lie in the external market.

Private sector economists have downgraded their forecast for construction which experts said could be on the back of tightening measures aimed at the property market, and wholesale and retail trade. However, forecasts have been upgraded for the manufacturing, financial services and hotels & restaurants sectors for this year.

For the second quarter of 2011, analysts said they expect the economy to expand by two per cent in comparison to 3.4 per cent in the previous survey.

Looking ahead into 2012, the respondents forecast GDP growth to be at 5.5 per cent, while CPI inflation is expected to come in at 2.5 per cent.

Jun 8, 2011 – New tax rules for Islamic finance

The Government will issue new income tax rules for Islamic finance products.

The new regulations, to be issued by the Ministry of Finance, will cover financing agreements based on financing through partnership agreement, project financing and the interbank placement of funds.

This is so that syariah-compliant products are not at a disadvantage compared with conventional products in terms of tax treatment, in order to encourage more such products in Singapore.

Speaking at the Second World Islamic Banking Conference Asia Summit at Pan Pacific Hotel, Minister for Trade and Industry also identified three challenges for Islamic finance: the standardisation and harmonisation of standards, strengthening of legal and regulatory regimes, and the supply of Islamic finance-conversant professionals in finance and accounting.

May 30, 2011 – Private home prices up slightly in April

Private non-landed home prices in Singapore rose slightly in April according to the Singapore Residential Price Index by the National University of Singapore (NUS).

It rose one per cent to an overall index value of 162.4 points.

The index covers only sale of completed homes in the central and non-central regions.

The rise in April comes after the index recorded a 0.2 per cent increase in February and March.

In January, new property cooling measures were introduced in the form of tighter rules over the seller's stamp duties.

The index is also split into two sub indices for the central and non-central regions. The central area rose 0.8 per cent. Non-central properties rose 1.1 per cent.

May 27, 2011 – Manufacturing sees 1st dip in 17 months

Singapore's manufacturing output in April 2011 fell by 9.5% on-year, reversing the 22% on-year growth in March.

According to the Monthly Manufacturing Performance published by the Singapore Economic Development Board (EDB), the contraction was due to the drop in biomedical manufacturing output.

Biomedical manufacturing fell 22.6% on-year, pulled down by the 23.6% drop in the pharmaceuticals segment. Excluding biomedical manufacturing, overall output in April fell 0.5%.

Taken on a seasonally-adjusted on-month basis, manufacturing output dropped by 16.3% and 6.2% excluding the biomedical sector. Output in these other sectors also fell on-year:
- General manufacturing (-8.3%)
- Electronics (-8%)
- Chemicals (-5.3%)

Meanwhile, precision engineering grew 28.5% on the back of strong demand for machinery and systems which surged 64.6% on-year. Transport engineering also grew 6.3%.

Overall, the manufacturing sector grew 7.7% on-year in the first four months of 2011.

Click here for the full press release from the EDB.

May 25, 2011 – Foreign home buyers hit record in Q1

Foreign home buyers snapped up 16 per cent of all private homes sold in the first quarter - the highest quarterly percentage since data became available in 1995.

Experts say the high foreign proportion in the market is because such buyers have been less affected by the rounds of cooling measures which have muted local interest.

The overseas impact has been telling, according to the DTZ Research report that contains the new buying figures. Its analysis of caveats lodged for both new and secondary sales found that foreigners bought 1,028 units in the three months to March 31. That 16 per cent share of the market tops the previous record of 15 per cent - or 784 units - in the fourth quarter of 2007.

Foreigners were also active in the last quarter of last year when they bought 1,092 units, accounting for 13 per cent of the market.

Demand from permanent residents (PRs) remained stable at 13 per cent in both quarters. DTZ said Chinese buyers - including permanent residents - also set a record, accounting for 24 per cent of purchases made by non-Singaporeans in the quarter. They have overtaken Malaysians for the first time.

May 24, 2011 – Singapore inflation slows to 4.5% in April

Singapore’s inflation rate dipped below 5 per cent for the first time this year, with April's consumer price index (CPI) at 4.5 per cent on a year-on-year basis, the Department of Statistics Singapore revealed.

Compared to a month ago, April's CPI rose 0.3 per cent over March.

Led by higher prices of cars and petrol, transportation costs increased by 11.7 per cent. Housing cost moved up 5.1 per cent, owing to higher accommodation costs and electricity tariffs. Food prices rose 2.9 per cent mainly due to more expensive prepared meals and ingredients.

The Monetary Authority of Singapore's core inflation rate, which excludes the costs of accommodation and private road transport, stands at 2.2 per cent for the year.

Click here for the full press release from the Department of Statistics.

April 25, 2011 – Singapore CPI for March 2011 up 5% from last year

Singapore’s consumer price index (CPI) in March 2011 increased by 5% compared to the same month last year, following a similar rise in consumer prices in February, driven by higher costs of transport, housing and food.

The core inflation measure tracked by the Monetary Authority of Singapore (MAS) – which excludes accommodation and private transport costs – rose 1.8% in March 2011 compared to March 2010.

Click here for the full press release from the Department of Statistics.

April 20, 2011 – Singapore General Election set for May 7

Singaporeans will go to the polls on Saturday, May 7. The Polling Day has also been declared a public holiday. Candidates have to submit their nomination papers on the Nomination Day of April 27, and then will have nine days to campaign. In this year’s General Election (GE), a new one-day cooling-off period will kick in from the eve of May 6. During this time, no campaigning and mass rallies are allowed, giving voters time to reflect before casting their votes. The coming GE will see an increase in the number of constituencies and voters. There will be 87 wards ( 12 single-member constituencies, two four-member GRCs, 11 five-member GRCs and two six-member GRCs) up from 84 currently. Close to 2.35 million Singaporeans are eligible to vote in the coming polls, up 7% from the last election in 2006, and 13% from back in 2001. More than a quarter of all voters this year are between 21 and 34 years old, with about 200,000 of these being able to vote for the very first time.

Held every five years, this will be Singapore’s 14 th GE. The last GE held in 2006 was the first time since 1988 that the ruling People’s Action Party (PAP) did not automatically return to power, when 47 of 84 seats were contested by the opposition who eventually won two seats.

April 14, 2011 – Singapore's GDP grows 8.5% in Q1

The Singapore economy expanded by 8.5% on a year-on-year basis in Q1 2011, compared to the 12% growth in 4Q 2010, according to advance estimates by The Ministry of Trade and Industry (MTI). Click here to see the press release from MTI.On a seasonally-adjusted quarter-on-quarter annualised basis, the economy grew by 23.5%, representing a 3.9% improvement from the previous quarter. Growth was led by the manufacturing sector, namely the electronics and precision engineering clusters, which benefitted from a pick-up in business investment in the region.

Gross Domestic Product at 2005 Prices

*Advance Estimates

April 14, 2011 – Singapore tightens monetary policy by raising exchange rate band

Singapore announced a tightening of monetary policy in a bid to keep a lid on inflation as data showed the economy grew an annual 8.5% in Q1 2011. The Monetary Authority (MAS) will re-centre the exchange rate policy band upwards to ensure price stability in the medium term while keeping growth on a sustainable path. Click here to see the twice-yearly Monetary Policy Statement by MAS. The re-centering will be below the prevailing level of the Singapore dollar Nominal Effective Exchange Rate and there will be no change to the slope and width of the band.

This will translate to a gradual appreciation of Singapore dollar. Singapore is the latest Asian economy to tighten monetary policy to curb inflationary pressures, following China, India, Vietnam and the Philippines. [MORE]

The Singapore dollar rose to a high of $1.2452 against the greenback after the announcement but analysts said the policy may likely see the Sing dollar trade at between 1.20 and 1.21 by year-end.

Jan 13, 2011 – Census of Population 2010 shows foreigner numbers mirror economic figures

• PR proportion grew steadily, bolstering Singapore’s ageing population and impacting trends here
• Non-resident numbers responded fastest and most drastically to the economy, growing when the economy went well, and slowing during crisesThe first of three Census 2010 data releases from the Singapore Department of Statistics shows that over the past 10 years, Singapore’s population trends have followed economic ones.Permanent Residents (PRs), as a proportion on Singapore’s resident population, grew from 8.8 per cent to 14.3 per cent over the last decade.With most PRs from 2000 to 2010 falling into the economically active age bracket of 20 to 50, they helped mitigate the rapid ageing of Singapore’s population. They have also boosted the overall education profile. Yet data also shows PRs are having fewer babies than citizens.Meanwhile, the number of non-residents – those who are neither citizens nor PRs – responded the fastest and most drastically to economic change.When the economy did well, their numbers grew quickly. From June 2007 to June 2008, for instance, they contributed 4.2 percentage points to the 5.5 per cent total population growth over the period.When the economy faltered, the flow of non-residents into the country slowed. Between June 2001 and June 2001, when the economy plunged, there was an outflow of non-residents even though the total population increased by 0.9 per cent.See image of trends here.Overall, the Census showed that Singapore’s population grew by 26 per cent over the last decade, numbering 5.08 million as of June 2010.The number of citizens grew by 8 per cent to 3.2 million – two-thirds of the total population.Among the non-citizens, the number of PRs grew by 88 per cent to 541,000. Non-resident numbers increased by 73 per cent to 1.3 million.Source: The Business Times; The Straits Times.For the press release on Census of Population 2010 “Statistical Release 1 - Demographic Characteristics, Education, Language and Religion” released by the Singapore Department of Statistics, click here.

For the full report, “Census of Population 2010 Advance Census Release” from the Department of Statistics, click here.

Solid wage growth, strong corporate profits and a sizzling property market all point to record revenues, which could hit nearly $50 billion, up from $38 billion in 2009, they said yesterday.This means that this year, the Government could have a considerable war chest for helping people - especially lower-income earners - cope with the effects of an expected rise in consumer prices, as reflected in the inflation rate, they said.This is a dramatic reversal from an official government estimate of a $3 billion deficit, made in February last year.

Source: The Straits Times

The construction industry bagged contracts worth $25.7 billion in 2010, a 14 per cent jump from 2009.The Building and Construction Authority (BCA) projects construction demand this year to value between $22 billion and $28 billion, and the private sector is expected to account for about 45 per cent of this.Private sector residential construction demand is projected to moderate but commercial construction demand is likely to be underpinned “by a buoyant office space demand and a vibrant retail sector”, said BCA.While the outlook is promising, challenges remain. Market players believe tender prices will increase on the back of rising material and labour costs. The industry will also have to keep pace with the productivity movement.

Source: The Business Times; The Straits Times

Developers’ outlook for the property sector turned rosier in Q4 last year, with more developers predicting higher prices for new residential launches.Preliminary findings from the Real Estate Sentiment Index (RESI) point to improved sentiment from Q3, when the industry was still coming to terms with the impact of property market cooling measures introduced on Aug 30.Based on survey responses so far, the Future Sentiment Index – where respondents rate overall property market conditions over the next 6 months – rose to 5.7 in Q4 from 4.8 in Q3.In Q4, 60 per cent of respondents believed that unit prices would be moderately higher, compared to 12 percent in Q3. Some 76 per cent of respondents in Q4 also expected moderately or substantially more units to be launched, compared with 44 per cent in Q3.

Source: The Business Times

12 Jan 2011 - Integrated resorts net $420m revenue for govt in 8 mths Singapore ’s two integrated resorts (IRs) have generated $420 million in betting taxes and GST on business receipts for the government within just eight months of operation. Between April and November last year, the IRs also collected $130 million in casino entry levies – both annual and daily passes – for the Singapore Totalisator Board. These figures were revealed for the first time by Second Finance Minister Lim Hwee Hua in Parliament yesterday. Revenues collected by the government form the IRs flow into the Consolidated Fund. Mrs Lim said that the fund is not earmarked for specific purposes. Instead, it goes towards funding the Government budget as a whole. This provides the flexibility to channel the money to areas with the “greatest needs and strategic priority”. Source: Business Times, The Straits Times

12 Jan 2011 - Bill on rehiring workers over 62 yrs passed

The Parliament has passed new laws to make it mandatory for companies to offer workers re-employment beyond the statutory retirement age of 62. From next January, workers who turn 62 must be offered an option to work for another three years, if they are medically fit and show satisfactory job performance. The onus is on employers to put in place re-employment practices in their HR policies, including a proper performance appraisal system and a fair assessment of medical fitness. But re-employment need not be for the same job or on the same terms. Employers can exercise flexibility, provided the re-employment offer terms are reasonable. If the employer is unable to offer a job to the retiree, there will be a one-time Employment Assistance Payment to help the worker until he finds another job. The recommended payment is up to 3 months of the worker’s salary but not more than $10,000. Companies should also talk to employees on their re-employment options at least 6 months before they reach 62. The intent of the new Retirement and Re-employment Act is to give older workers who want to work, the right to continue to be gainfully employed. 20,000 will be affected by the new law next year. Source: Channel News Asia, The Straits Times.

12 Jan 2011 - District 10 luxury homes fetch record prices

More than $2 billion worth of property changed hands in District 10 alone last year, which roughly covers the areas from Grange Road to Sixth Avenue. This includes a bungalow in the prime district at Leedon Park that fetched a record $61.4 million in December last year, or $1,467 per sq ft (psf) for the 41,853 sq ft site. More than 30 of the nearly 300 transactions in the district involved properties costing at least $20 million. The costliest in per-square-footage terms was a 24,183 sq ft Nassim Road property that was sold for $43.53 million in August ($1,800 psf). In fact, few properties in District 10 cost less than $1,000 psf. However the costliest landed properties in Singapore are to be found on Sentosa Island where sites are said to have changed hands for more than $2,400 psf. A bungalow at Paradise island reportedly changed hands in June for $36 million. And unlike most other landed property sites in the country which are freeholod, those on Sentosa are on a 99-year leases and foreigners face no restriction in buying.

Source: Today

3 Jan 2011 - Pace of Growth Improved in Fourth Quarter 2010

Economic activity in Singapore picked up in the fourth quarter of 2010. According to advance estimates, the economy expanded by 12.5 per cent on a year-on-year basis in the fourth quarter of 2010, improving from the 10.5 per cent growth in the third quarter. On a seasonally-adjusted quarter-on-quarter annualised basis, the economy grew by 6.9 per cent, an upturn from the contraction of 18.9 per cent in the previous quarter.For the whole of 2010, the economy is estimated to have expanded by 14.7 per cent, in line with MTI’s growth forecast of around 15 per cent for the year.Economic growth in the fourth quarter was primarily underpinned by a strong expansion in the manufacturing sector, led by the biomedical manufacturing cluster, which saw a strong rebound in pharmaceutical output.

Source: Ministry of Trade and Industry. Click here for the full press release.

3 Sept 2010 - Manufacturing Sector Shrinks First Time In 16 Months

Singapore’s manufacturing sector shrank in August 2010 – the first time after 15 months of consecutive growth.

Widely seen as a proxy for economic growth, the Purchasing Manager’s Index (PMI) registered a reading of 49.4 in August. This is a dip from 52.2 in July. A reading above 50 indicates growth, while a reading under 50 indicates contraction.

The decline in August was due to an overall fall in new orders, new export orders, production output and employment. Stocks of finished goods went into expansion mode, while imports and input prices grew, but at a slower pace, according to the Singapore Institute of Purchasing Materials Management that compiles this monthly index.

Singapore's economy expanded a blistering 18.8% in the second quarter from a year earlier, accelerating from 16.9% in the first quarter. The government expects the economy to grow 13%-15% for the full year.

31 Aug 2010 - Singapore's population hits 5.08m

Singapore's population now stands at 5.08 million as at end-June, according to official data released by the Singapore Department of Statistics.

There were 3.77 million residents, of whom 3.23 million were Singapore citizens and 540,000 permanent residents.

Singapore's total population growth registered a lower growth rate of 1.8 per cent, reflecting the slower growth in the number of permanent residents and non-residents over the past year. The number of permanent residents grew by 1.5 per cent in 2010, down from at least 6 per cent growth per year between 2005 and 2009. Growth in the number of non-residents also slowed to 4.1 per cent in 2010, down from the peaks of 15 per cent in 2007 and 19 per cent in 2008.

Meanwhile, the number of Singapore citizens grew by 0.9 per cent between 2009 and 2010, comparable to the annual growth rate of 0.8 to 1.1 per cent registered between 2005 and 2009.

Singapore's resident population grew older as well, with the median age of the resident population rising from 34.0 in 2000 to 37.4 this year.

However, the data shows that the inflow of permanent residents 'slowed' the pace of ageing.

The old-age support ratio (number of persons aged 15-64 years per elderly aged 65 years and over) for the resident population is 8.2 for this year, higher than the old-age support ratio of 7.2 for the citizen population. The decline in the old-age support ratio among the resident population between 2000 and 2010 was also slower than that for the citizen population.

As for ethnic composition, Chinese formed 74 per cent of the resident population this year, while the Malays and Indians took up 13 per cent and 9.2 per cent of the population share respectively.

30 Aug 2010 - Measures to cool property market

The Government announced the following measures to maintain a stable and sustainable property market:

a) Increase the holding period for imposition of Seller’s Stamp Duty (SSD) from the current one year to three years.

b) For property buyers who already have one or more outstanding housing loans at the time of the new housing purchase:

i. Increase the minimum cash payment from 5% to 10% of the valuation limit; and
ii. Decrease the Loan-to-Value (LTV) limit for housing loans granted by financial institutions regulated by MAS to these buyers from the current 80% to 70%.

The measures will take immediate effect on 30 August 2010.

The Government's objective is to ensure a stable and sustainable property market where prices move in line with economic fundamentals. The property market is currently very buoyant. While the rate of price increase of private residential properties has moderated in the last 3 quarters, prices have still increased significantly by 11% in the first half of 2010, and price levels have now exceeded the historical peak in the second quarter of 1996.

While Singapore has enjoyed strong economic growth in the first half of 2010, our economic growth is expected to moderate in the second half of the year. There are also still uncertainties in the global economy. Should economic growth falter and the market corrects, property buyers could face capital losses, with implications on their own finances and the economy as a whole. Moreover, the current low global interest rate environment will not continue indefinitely, and higher interest rates could have severe implications for buyers who have overextended themselves. Therefore, the Government has decided to introduce additional measures now to temper sentiments and encourage greater financial prudence among property purchasers.

For press release, please click here.

25 Aug 2010 - S'pore tops IPR record

Singapore has the best record when when it comes to protecting intellectual property rights (IPR) in Asia and Indonesia the worst, a survey of expatriate business people.

Indonesia was given the worst score of 8.5 out of a maximum 10 points compared to 11 other Asian economies in the survey by Hong Kong-based Political and Economic Risk Consultancy (Perc). The survey polled 1,285 expatriate managers between June and mid-August. Zero is the best possible score.

More advanced economies fared better, with Singapore heading the list with 1.5, followed by Japan (2.1), Hong Kong (2.8), Taiwan (3.8) and South Korea (4.1). At the other end of the scale, Vietnam was second worst at 8.4, China scored 7.9, the Philippines 6.84, India 6.5, Thailand 6.17 and Malaysia 5.8.

Indonesia 'has passed new laws that should improve protection of intellectual property, but those rules are not enforced effectively at all, and piracy levels in Indonesia remain among the highest in the world'.

The rankings largely reflect studies by the global software industry, which is alarmed by the easy availability of pirated movies and software in Asian cities despite governments' pledges to crack down.

23 Aug 2010 - July inflation up 3.1%

Higher transport, housing and food costs pushed consumer prices up by 3.1 per cent in July from a year ago.

Cars and petrol were the main items contributing to the 10.7 per cent spike in transport costs, according to data released by the Singapore Department of Statistics.

Housing costs rose by 2.7 per cent because of higher electricity tariffs and accommodation cost, while food prices went up by 1.5 per cent, arising from dearer prepared meals, vegetables, fresh seafood, meat and poultry, as well as rice and cereals.

Excluding accommodation costs, the consumer price index was 3.8 per cent higher in July than a year ago.

For the first seven months of the year, consumer prices have moved up by 2.1 per cent, compared to the same period in 2009.

On a month-on-month basis, inflation rose by 1.3 per cent over June, due to higher housing, transport as well as clothing and footwear costs.

In June, Singapore's inflation rate exceeded most analysts' expectations and hit a 14-month high, climbing 3.2 per cent from a year ago.

For press release from Singapore Department of Statistics, please click here.

19 Aug 2010 - CPF interest rate stays at 2.5%

Central Provident Fund (CPF) members will continue to receive interest of 2.5 per cent a year on their Ordinary Account savings from Oct 1 to Dec 31.

CPF Board noted that the interest rate derived from those of major local banks from May 1 to July 31 this year worked out to be 0.41 per cent a year.

The higher 2.5 per cent interest rate will be paid, as the CPF Act provides for a minimum annual rate of 2.5 per cent.

The Board added that the concessionary interest rate for mortgage loans with the Housing Board - which is pegged at 0.1 percentage point above the CPF interest rate for the Ordinary Account - will also remain at 2.6 per cent a year, from Oct 1 to Dec 31.

Also, an extra 1 per cent interest will continue to be paid on the first $60,000 of the combined balances of a member's Ordinary, Special, Medisave and Retirement Accounts - with up to $20,000 from the Ordinary Account.

The income earned from the extra interest will go into the member's Special or Retirement Account to boost retirement savings.

17 Aug 2010 -S'pore exports slow in July

More signs are pointing to slowing growth in the second half of the year.

Exports grew at a slower than expected pace in July as Singapore shipped fewer electronics and pharmaceuticals than in June, according to figures from IE Singapore.

Compared to a year ago, July exports grew 18 per cent after expanding 28.5 per cent in June. Economists had expected 20.1 per cent growth. Electronic shipments rose 26 per cent in July from a year ago, after a 44 per cent increase in June, and non-electronics grew 14 per cent after rising 21 per cent in the previous month.

On a month-on-month basis, exports fell a third straight month, declining 3.9 per cent in July from June, after contracting 0.1 per cent in June from May.

Shipments grew at a slower pace to all of Singapore's top ten markets except to the US, where it rose 30 per cent from a year ago, after not growing in June.

11 Aug 2010 - Beef up record keeping

Companies face a crackdown from the taxman next year if their books are not in tip-top shape.

The tougher approach is part of a wide-ranging campaign to help businesses, particularly small and medium-sized enterprises (SMEs), keep good records, including invoices, tax receipts, accounting schedules and bank statements.

Of the 750 individually run operations and small businesses audited last year, 75 per cent did not keep proper records.

One measure, which will come into effect late next year, involves imposing a fine on those who do not keep good records.

At present, businesses that do not file tax returns, or keep poor records, face fines of up to $1,000, but the penalty has rarely been imposed on the latter offence as many were given a second chance.

However the penalty for not keeping good records will be more widely enforced at the tail-end of next year, to give companies time to improve.

10 Aug 2010 - S'pore trade up 28% in Q2

Singapore’s total external trade rose 28 per cent in the second quarter from a year ago, following the 27 per cent increase in the previous quarter.

On a seasonally adjusted quarterly basis, total trade expanded by 4.7 per cent in the April to June period, after the 9 per cent surge in the earlier quarter.

Non-oil domestic exports (NODX) grew by 9 per cent in the second quarter, after a growth of 8.3 per cent in the first quarter.

From a year ago, NODX went up 28 per cent, following the previous quarter's rise of 23 per cent, on higher shipments of both electronic and non-electronic NODX.

Electronic domestic exports rose by 34 per cent in the second quarter, following a growth of 30 per cent in the earlier quarter.

The level of total trade reached S$228 billion in the second quarter of the year, while total exports and total imports expanded by 29 and 27 per cent respectively, from the same period a year earlier.

IE Singapore attributed the total trade's rise in the second quarter to increases in both oil and non-oil trade.

Oil trade grew by 47 per cent year-on-year in the second quarter, after the previous quarter's 58 per cent rise. Non-oil trade climbed by 22 per cent in 2Q, following the 19 per cent expansion in Q1.

All top 10 NODX markets expanded in the second quarter, with China, European Union and Hong Kong being the biggest contributors, with NODX to these countries growing by 43 per cent, 30 per cent and 42 per cent respectively.

For the remainder of 2010, IE Singapore said the weakening of the Euro against the currencies of key trading partners and sluggish domestic demand in the United States and the Europe Union is expected to dampen world trade in the second half year. Therefore IE Singapore is maintaining the projection for Singapore's total trade growth for this year at between 17 and 19 per cent, and the forecast for NODX growth at between 17 and 19 per cent.

10 Aug 2010 - Q2 GDP up 18.8%

Singapore’s economy expanded less than initially estimated in the second quarter as manufacturing growth slowed.

Gross domestic product grew by 18.8 per cent from a year ago, stronger than the 16.9 per cent growth in the first quarter.

On a seasonally adjusted quarter-on-quarter annualised basis, GDP grew by 24 per cent for the second quarter, following a surge of 45.7 per cent in the earlier quarter.

Ministry of Trade and Industry (MTI) said will maintain the GDP growth forecast for 2010 at 13 to 15 per cent.

Manufacturing output expanded by 44.5 per cent in the three months through June, from a year ago. This is less than the preliminary estimate of 45.5 per cent. Growth was led by the biomedical manufacturing and electronics clusters, which increased production of higher value active pharmaceutical ingredients and semiconductor chips. The construction sector grew by 11.5 per cent, supported by an increase in public sector construction activities.

Services grew a revised 11.2 per cent in Q2 from the same period last year.

The wholesale and retail trade sector expanded by 18.9 per cent on the back of strong global trade flows, while the financial services sector grew by 10.2 per cent due to increased foreign exchange trading activities and domestic bank lending.

Hotels and restaurants sector as well as other services industries also saw double-digit growth rates of 10.4 per cent and 12.9 per cent respectively, bolstered by higher visitor arrivals and activities in the new Integrated Resorts.

MTI said real GDP grew by 17.9 per cent in the first half of the year, compared to 2.8 per cent in the earlier quarter.

On the outlook for the second half, MTI said the global economy is expected to remain on a modest recovery path, 'albeit one that will continue to ease for the rest of the year.'

29 Jul 2010 - Growth pace to slow

The strong pace of growth seen in the first half year is not expected to be sustained and will moderate to a more sustainable rate, said the Monetary Authority of Singapore (MAS).

Growth is likely to have peaked at the middle of this year, and will moderate to a more sustainable rate, as external demand slows after the post-crisis bounce from stimulus measures and inventory effects wane worldwide.

MAS also warned of risks from the worsening debt woes in Europe. 'If the crisis in Europe worsens, financial contagion spreads and the functioning of the international credit markets becomes impaired, downside risks to global growth could intensify,' said the report. 'Singapore's growth could then be dampened through trade and financial markets channels.'

Although the outlook of the industrialised economies remains uncertain, Mr Heng told reporters that said there is sufficient momentum from the Asian economies and domestic industries that 'will continue to support Singapore's economic activitiy at a high level' for the rest of the year.

MAS maintains that the Singapore economy is set to expand by 13 to 15 per cent for this year as growth is supported by a broad range of industries that will remain 'largely intact' this year.

But it expects inflation, which reached 3.1 per cent in the second quarter, to rise for the rest of the year, averaging between 2.5 and 3.5 per cent because of higher car and commodity prices from a year ago.

Despite the higher inflation forecast, the current monetary policy stance of a modest and gradual appreciation of the currency policy band remains appropriate.

For press release, pls click here.

23 Jul 2010 - Singapore and China enhance tax cooperation

Singapore and China signed a protocol to incorporate in their standing Agreement for the Avoidance of Double Taxation (DTA) the internationally agreed Standard for the exchange of information for tax purposes upon request.

The protocol was signed in Beijing by Mr. Moses Lee, Commissioner of Inland Revenue, and Mr Wang Li, Deputy Commissioner of the State Administration of Taxation.

The full text of the protocol is available. The protocol will enter into force after its ratification by both countries.

For more details on the protocol, please click here.

23 Jul 2010 - Private home prices up

Private home prices rose 5.3 per cent in the second quarter, compared with 5.6 per cent in the first quarter, said the Urban Redevelopment Authority.

Non-landed home prices climbed 5 per cent in the second quarter, compared with 4.9 per cent in the previous quarter.

In the landed home segment, prices rose by a slower rate of 6.2 per cent in the second quarter, compared with 8.3 per cent in the first.

Prices of detached, semi-detached and terrace houses rose by 6.8 per cent, 6 per cent and 5.6 per cent respectively.

The other property sectors also saw prices increases in the second quarter.

Office prices were up 4.6 per cent, shop prices up 3.9 per cent and prices of industrial properties up 5.7 per cent.

14 Jul 2010 - Sing$ rises on GDP outlook

The Singapore dollar rose to the strongest level in three weeks after the government raised its 2010 economic growth forecast, fuelling speculation the central bank will keep an appreciation policy to curb inflation.

The city-state's currency advanced the most this month after Singapore announced gross domestic product expanded at a 26 per cent annual pace in the second quarter following the biggest surge in the previous three months since at least 1975.

Intel Corp, the world's biggest chip maker, reported record sales for last quarter, supporting gains in regional stocks and currencies.

The Singapore dollar rose 0.5 per cent to $1.3751 against the greenback as of 9.47am, according to data compiled by Bloomberg. It reached $1.3733, the highest level since June 21. The currency has climbed 2 per cent this year, the fourth-best performance among Asia's 10 most-traded currencies outside of Japan.

The economy will expand between 13 per cent and 15 per cent in 2010, up from an earlier forecast for growth of as much as 9 per cent. The median estimate in a Bloomberg News survey of 14 economists is for 10.7 per cent growth.

14 Jul 2010 - World's fastest growing economy

Singapore looked set to become the world's fastest-growing economy, increasing the attractiveness of the city state's stocks and putting pressure on policy makers to check inflation with a stronger currency.

Gross domestic product of Singapore will rise 10.8 per cent in 2010, according to the median of 13 estimates before the July 14 second- quarter GDP report.

The new forecast, up sharply from earlier predicted 7-9 per cent growth, outstrips estimates of around 10 per cent growth in regional powerhouse China and came despite lingering worries over the US economy and Europe's debt crisis.

An acceleration in pharmaceutical output and the opening of two casino resorts boosted growth in the first half, the result of Singapore's efforts to diversify sources of expansion beyond electronics exports. The push to bolster services may sustain the economy and support investment that spurred the island's benchmark stock index to outperform counterparts in China, Taiwan, Japan and Australia this year.

Singapore's benchmark stock index has climbed 28 per cent in the past year, more than Hong Kong's Hang Seng and Taiwan's Taiex, while the Shanghai benchmark has fallen 22 per cent.

3 Jul 2010 - Foreign worker levy to rise

Invest in productivity instead of relying on foreign workers, is the government's response to the issue of the foreign worker levy hike, raised at a dialogue session between a panel of Ministers and the local business community. Companies here are also being encouraged to invest in innovation and technology to increase productivity in order to grow their business.

The Australian construction worker was cited as an example in the successful blending of technology and mechanisation, and was shown to be more productive and efficient than the average Singaporean worker.

The issue of foreign labour has been a hot topic in Singapore. Many Singaporeans have expressed worry over the increased job competition from foreign workers and the recent influx with local businesses growing more reliant on foreign labour. Foreign worker levies serve to control the number of foreign workers in Singapore.

Starting July 1, levy rates for most Work Permit holders will increase by between $10 and $30 per month. They range from $150 to $470.

Rates for S-Pass holders, which are workers with mid-level skills, will at least double from the current rate of $50 per month. Foreign worker levies will be raised gradually over the next three years to complement the Government's efforts to boost the productivity of firms.

2 Jul 2010 - Home prices still strong

Private home prices increased by 5.2 per cent in the second quarter, compared with 5.6 per cent in the first, according to flash estimates released by the Urban Redevelopment Authority (URA).

Separately, Housing Board's flash estimate on the second quarter resale price index shows an increase of 3.8 per cent, up from the 2.8 per cent gain in the earlier quarter.

The URA also gave the flash estimates for prices of non-landed homes in three geographical regions.

Prices of non-landed private homes rose by 5.1 per cent in the core central region of Singapore, 4.5 per cent in the city fringes and 5.7 per cent in the suburban areas.

Prices of non-landed private homes rose by 5.1 per cent in the core central region of Singapore, 4.5 per cent in the city fringes and 5.7 per cent in the suburban areas.

Flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter, supplemented by information on the number of new units sold.

20 May 2010 - S'pore Q1 GDP up 38.6%

Singapore’s economy expanded at a faster pace in the first quarter, growing sharply by an annualised 38.6 per cent from the previous three months, as rising global demand boosted manufacturing and the opening of the Sentosa casino spurred tourism.

From a year ago, the economy grew 15.5 per cent in the first quarter, compared with the median estimate for a 13.7 per cent gain.

The Ministry of Trade and Industry said it will maintain the GDP growth forecast for this year at 7 to 9 per cent.

The strong momentum seen in the first quarter was broad-based, led by the manufacturing sector which expanded by 32.9 per cent on a year-on-year basis, said MTI in a statement.

Except for transport engineering, all other manufacturing clusters showed robust growth. The electronics cluster enjoyed the strongest growth, underpinned by strong global demand for semiconductor chips. The construction sector also grew by 13.7 per cent on a year-on-year basis, reflecting continued growth in public sector construction activities.

The services producing industries grew by 10.9 per cent in the first quarter of 2010. This was due to a broad-based expansion in all services sectors. In particular, financial services grew 18.1 per cent while wholesale and retail trade grew 17.7 per cent on a year-on-year basis.

On the outlook for the rest of the year, MTI noted that the US economic recovery is becoming more broad-based.

'Signs of a labour market recovery, coupled with improving business conditions, suggest that private demand in the US will continue to improve. Growth in key Asian economies, including China, will also likely remain buoyant on account of robust domestic demand, intra-regional trade and fiscal stimulus measures,' it said

But it cautioned that developments in recent weeks suggest that downside risks have also intensified, pointing to the heightened market anxiety over the possibility of a sovereign debt default in Europe.

'While policymakers in the EU have introduced timely and forceful interventions to reduce the downside risk in the near term, significant uncertainties remain beyond the immediate horizon. Second, there continues to be concerns over excessive asset price inflation in emerging Asia,' it added.

'Should investor sentiments wane or if more monetary tightening measures are introduced, sharp asset price corrections could follow.'

19 May 2010 - Fewer get PR, citizenship

Fewer foreigners were granted permanent residency or citizenship here since the Government tightened eligibility requirement late last year.

Fresh figures released by Senior Minister of State (Home Affairs and Law) showed that there has been a slowdown in the past 12 months.

Between April last year and the end of March this year, there were 46,300 new PRs and 19,300 new citizens.

The numbers that Associate Professor Ho provided to the House were lower when seen against previously released figures of the number of applications approved for the whole of last year.

Those figures showed there were 59,500 new PRs approved last year, down from 79,200 in 2008. As for new citizens, the figure last year was 19,900 compared to 20,500 for the whole of 2008.

7 May 2010 - Changes in accounting industry

Singapore’s accountancy industry is facing a major shake-up after the Government accepted all the recommendations of a committee set up to look at transforming the sector.

The wide-ranging recommendations were proposed as part of the plan to more than double the accountancy sector's contribution to gross domestic product, from 0.4 per cent in 2008 to 1 per cent over the next decade.

Number-crunching is a fast-growing market, with the Asia-Pacific accountancy services market valued at US$30.8 billion (S$43 billion) in 2008 and forecast to reach US$38.3 billion by 2013.

Now that the Finance Ministry has accepted the broad recommendations, the next step will be to decide on the members of the pro tem council - likely by July - to spearhead the implementation.

Many of the proposals will be rolled out in parallel and will take the better part of the next few years.

1 May 2010 - CPF rate to go up 1%

The Government has given the go-ahead to raise employers' contribution rate to the Central Provident Fund by 1 per cent to 15.5 per cent announced Singapore Prime Minister.

This will be ramped up in two stages - 0.5 per cent in September, to be paid into the Medisave Account, and 0.5 per cent in the Special Account next March.

With the increase, which is in response to a recent labour movement's call for a partial restoration of the employers' CFP contribution rate to workers in the wake of an exceptionally strong economic growth of 13 per cent in the first quarter, the overall CPF contribution will go up to 35.5 per cent.

The total CPF contribution rate can be expected to hit a maximum of 36 per cent in a year or two if the economy continues to perform. This means employers contributing 16 per cent and employees continuing to contribute 20 per cent.

The CPF is fundamental to Singapore's system of social safety nets as it gives each worker an individual savings account, to see to the housing, medical and retirement needs for himself and his family.

After a three-point cut in 2003 and then a partial restoration in 2007, the employer's rate now stands at 14.5 per cent - and on a reduced salary ceiling of $4,500. This brought the overall contribution rate to the current 34.5 per cent, of which 23 per cent goes into the Ordinary Account (for workers aged 35 and below), 5 per cent into Special Account and 6.5 per cent goes into the Medisave account (higher for older workers).

19 Apr 2010 - Low wage workers get new centre for employment-related assistance

Low wage casual and contract workers can now receive employment-related assistance under one roof.

A new centre for contract and casual workers has been set up by the National Trades Union Congress (NTUC).

Located at the Employment and Employability institute (e2i), the centre provides training assistance and job referrals from the institute.

In addition, workers get direct assistance from NTUC's Unit for Contract and Casual Workers (UCCW) at the centre.

UCCW has also introduced a new personal achievement card programme to help these workers prepare and update their resume.

This is because many of them are unable to develop one for themselves due to their low educational level and computer literacy.

The labour union hopes to reach out to 20,000 workers through the new centre this year.

16 Apr 2010 - Restore bosses' CPF contribution

To help workers save for the future, the labour movement is calling on the Government to restore employers' Central Provident Fund (CPF) contributions fully or partially.

Given the strong recovery of the economy, healthy outlook for the rest of the year and low unemployment, this is a good opportunity to consider some form of CPF restoration.

Singapore's economy grew by 13.1 per cent in the first quarter from a year ago. This is the largest jump in 16 years.

Following the Sars crisis in 2003, the employers' CPF contribution rate was cut from 16 to 13 per cent. It was partially restored to 14.5 per cent in 2007, following calls from NTUC. Employees put in 20 per cent, so total CPF contributions stand at 34.5 per cent.

There is scope to increase the employers' CPF contribution rate by 1.5 per cent, making a total of 36 per cent. In 2003, the labour movement had set a target of keeping the CPF contribution rate between 30 and 36 per cent. However there was a need to save more for retirement and health care in the future, so CPF restorations should be considered when conditions are right.

15 Apr 2010 - ACRA unveils new initiatives

The Accounting and Corporate Regulatory Authority (ACRA) announced several new initiatives as an impetus for locally incorporated companies to comply with the corporate regulatory requirements as well as to acknowledge firms which have made the effort to comply.

For a start, ACRA will focus on the preparation of the annual financial statements, the holding of Annual General Meeting (AGM) and the filing of the Annual Returns (AR).

It encourages prompt filing of financial statements and the AR as this enables interested stakeholders, government agencies and the business community to obtain up-to-date information on the company and its financial state of health. While these three requirements are important disclosure requirements, ACRA has found this to be the top breach on the list of non-compliance by companies in Singapore.

Instead of resorting to court action, ACRA first encourages voluntary compliance through various non-penal measures and public education to emphasise the importance of these requirements and to promote the improvement of internal systems and processes. The ACRA is also implementing the Colour-coded Compliance Rating and Certificate of Compliance to recognise companies with a good record, the End of Financial Year (FY) Reminder Letters to give companies earlier reminders, and a Shorter Extension of Time (EOT) to reduce delays.

It will also release a new Directors' Handbook later this year. It is a practical hands-on guidebook to provide new or aspiring directors on the know-how in performing their statutory duties, thus promoting a higher level of corporate compliance and a heightened appreciation of good governance in companies, especially among the smaller ones.

For press release, please click here.

14 Apr 2010 - Inflation to rise up to 3.5%

The Government expects Singapore's inflation to rise between 2.5 and 3.5 per cent this year, slightly higher than the earlier 2 to 3 per cent forecast.

The Ministry of Trade and Industry on announced the revised projection for inflation, in view of the strong economic recovery in the first quarter, prompting it to raise growth forecast for 2010 from from 4.5 to 6.5 per cent to 7 to 9 per cent.

At the same time, the Monetary Authority of Singapore (MAS) also tightened its monetary policy by recentreing its Singapore dollar policy band upwards and by shifting its policy to modest and gradual appreciation for the currency.

The MAS said inflation averaged 0.6 per cent in the first two months, rising from -0.3 per cent and -0.8 per cent in the last two quarters of 2009 respectively. On a sequential basis, consumer price inflation has trended higher since the third quarter of last year, largely due to the rise in global commodity prices and private road transport costs.

"These two factors will continue to drive headline inflation rates up for the rest of 2010," said MAS in a statement. Meanwhile, other domestic sources of inflationary pressures, though subdued presently, could be expected to emerge in the coming quarters.

MAS added that the labour market has tightened, with the seasonally adjusted resident unemployment rate falling from 5 per cent in September last year to around its pre-crisis rate in December. "Wage growth will begin to pick up this year, while commercial rentals are also likely to rise given improved economic conditions. Overall CPI inflation in 2010 is projected to be between 2.5 and 3.5 per cent, slightly higher than the 2 to 3 per cent," it said.

14 Apr 2010 - S'pore set to grow 7-9%

The Ministry of Trade and Industry (MTI) revised the growth forecast for Singapore economy to between 7 and 9 per cent for 2010 from the earlier 4.5 to 6.5 per cent, after an exceptionally strong first quarter led by manufacturing.

Advance estimates indicate that Singapore's GDP expanded by 13.1 per cent in Q1 from a year ago. On a seasonally adjusted quarter-on-quarter annualised basis, its GDP grew by 32.1 per cent.

Growth was powered by the manufacturing sector, which expanded by 139 per cent in the first quarter, compared to the contraction of 29 per cent in the fourth quarter of 2009.

MTI attributed the sharp improvement in performance to the robust expansion of electronics production underpinned by a strong recovery in global semiconductor chip sales; and a stronger than-expected surge in biomedical manufacturing output.

The construction sector grew by 11.3 per cent from a year ago in the first three months, compared to last year, supported by sustained public sector civil engineering activities and an increase in the number of residential construction projects.

The services producing industries also expanded, registering a year-on-year growth of 8.4 per cent. Expansion was driven largely by wholesale trade, which improved on the back of sharp increases in exports of electronic goods. Growth in transport and storage, hotels and restaurants as well as financial and business services also contributed to improved performance for the services sector.

For more details on the press release, please click here.

13 Apr 2010 - SMEs to get more help

Small and medium enterprises (SMEs) will soon benefit from more targeted programmes by the Government to help them increase their productivity.

The Workforce Development Agency (WDA) will be providing SMEs more funding support for productivity-related courses and will work with SPRING Singapore to develop productivity-related training programmes. These include customised workshops and diagnostic tools to help SMEs implement productivity measures. Details are expected in May.

Other areas of focus include:

- Strengthening the national skills qualification framework, where the Workforce Skills Qualification system will now be recognised as a national credential
- Expanding the Continuing Education and Training (CET) system
- Encouraging low-wage and older workers to go for more training
- Stepping up enforcement against errant employers and foreign workers
- Strengthening the ministry's partnership with unions and employers

MOM will also be setting up a S$73 million one-stop customer service centre in Bendemeer Road by 2012, bringing its services relating to foreign manpower and workplace safety and health all under one roof.

7 Apr 2010 - Polytechnics help SMEs with R&D

Small and medium-sized enterprises (SMEs) will now be able to work with researchers from more polytechnics to increase their research and development (R&D) efforts and capabilities.

Under the Growing Enterprises with Technology Upgrade (GET-Up) programme, four Centres of Innovation in local polytechnics will second their researchers to SMEs for up to 2 years. The companies will have access to the research facilities at the polytechnics and will also get consultation services to help them develop long-term plans to increase their innovation and productivity.

The four centres are Food Innovation Resource Centre at Singapore Polytechnic, Centre of Innovation for Electronics at Nanyang Polytechnic, Ngee Ann Polytechnic's Marine & Offshore Technology Centre of Excellence, and Environment & Water Technology Centre.

The Agency for Science, Technology and Research (A*Star), the Economic Development Board, International Enterprise Singapore and Spring Singapore launched GET-Up in 2003 and since then, some 290 companies have worked with 298 A*Star researchers.

Read more details on the Technology for Enterprise Capability Upgrading Initiative (T-UP) scheme under the GET-Up programme.

6 Apr 2010 - Singapore, Costa Rica ink FTA

Singapore and Costa Rica signed a broad-based and comprehensive Free Trade Agreement, which will reduce and remove trade barriers, strengthening bilateral economic ties.

The FTA was signed by Costa Rica's Foreign Trade Minister Marco Ruiz and Singapore's Senior Minister of State for Trade & Industry and Education S. Iswaran. It will create opportunities for businesses from both countries to expand their networks in each other's markets.

The key outcomes for the pact include tariff elimination for all products, increased trade facilitation, a liberalising framework that encourages trade, a commitment to fair competition and a framework for cooperation in wide-ranging areas.

Singapore and Costa Rica launched negotiations for the bilateral deal on Dec 2, 2008, during an official here by Costa Rican President Oscar Arias Sanchez. Formal FTA negotiations started in April last year and concluded after four rounds of talks.

IE Singapore will organise seminars and workshops to inform companies how they can take advantage of the trade agreement when it is about to enter into force.

Costa Rica is Singapore's eighth largest trading partner in Latin America, with last year's total trade valued at S$413.7 million, while Singapore is Costa Rica's second largest trading partner in South-east Asia and largest destination for Costa Rican intelligent cards and medical prosthesis in the region.

For more details on the free trade agreement, please click here.

5 Apr 2010 - Government extends business grant

A government grant to help businesses better cater to families has been extended for three more years.

The Ministry of Community Development, Youth and Sports has set aside another $2 million for the Businesses for Families Grant, said the Business for Families Council (BFC).

The additional funds would be useful for businesses that wish to attract families. It signals the Government's on-going commitment to help businesses create a pro-family environment for Singapore and reaffirms the Government's goal in making Singapore the best place for families and children.

The Businesses for Families Grant, previously known as the Pro-Family Business Grant, provides funding to firms that wish to put in place measures to welcome families as customers. Businesses can apply for funding support to help defray costs incurred in infrastructure, training and business consultancy to make their business more family-friendly.

Since it was introduced in 2007, 30 businesses have received funding support under the grant. The scheme was also enhanced in January to allow firms to claim up to 70 per cent, instead of just half, of the cost incurred for adopting family-friendly measures for customers.

30 Mar 2010 - More than 100,000 employers to receive $460 million from the first extended payment of Jobs Credit

More than 100,000 employers, who employ about 1.4 million local workers, will receive another $460 million as the first extended payment of the Jobs Credit on 31 March 2010.

Eligible employers will receive a notification letter by 24 March 2010 from the Inland Revenue Authority of Singapore (IRAS), informing them of the amount of Jobs Credit they will receive in the first extended payment.

The Jobs Credit scheme, which was introduced as part of the Resilience Package in Budget 2009, has been extended for six months with graduated payments of 6% of wages in March and 3% in June 2010, respectively.

The final payment of Jobs Credit to be made in June 2010 will be computed based on employees on the CPF payroll for the month of April 2010 . Employers must make their CPF contributions for January to April 2010 in order to qualify for the final Jobs Credit payment. They have up to 14 May 2010 to do so. There will be no extension of the CPF contribution deadline for Jobs Credit payments.

As the Jobs Credit scheme will cease after the final payment in June 2010, any enquiry or claim for Jobs Credit must be submitted to IRAS by 31 August 2010.

30 Mar 2010 - Strong demand for private homes in Q1 2010

Demand for new homes in the first quarter of this year more than doubled that of the fourth quarter of 2009.

This is despite the introduction of another set of property curbs in February.

The property consultancy said this showed the resilience of residential demand from both owner-occupiers and investors.

Nevertheless, the property measures seemed to be effective in weeding out short term speculators.

Based on caveats lodged to date, about a third of the buyers in the first quarter of 2010 were HDB upgraders.

Foreigners bought around 23.5 per cent of the new homes in the first quarter, the top three groups being Indonesians, Malaysians and Chinese.

On the whole, home prices in the first quarter rose about 2 to 5 per cent over the fourth quarter of 2009.

25 Mar 2010 - New home price index

A new property index that tracks condominium prices and gives timely updates on non-landed private properties may lead to trading in more sophisticated financial products like property derivatives.

Created by the National University of Singapore Institute of Real Estate Studies, the Singapore Residential Price Index follows month-on-month price movements of more than 350 condominium and private-apartment projects that have obtained temporary occupancy permits, across 26 postal districts.

It functions much like the Straits Times Index for shares but instead of following certain stocks, the SRPI is based on the transacted prices of a selected basket of completed non-landed private homes.

The only other index that tries to get a grip on the property market is one put out by the Urban Redevelopment Authority, but that is only published quarterly.

It is compiled based on all types of private home transactions and is intended to provide a broad indication of price trends.

23 Mar 2010 - S'pore inflation rises in Feb

Singapore's inflation rose for a second month in February due to higher food and transport costs.

The consumer price index rose 1 per cent from a year earlier, and was up by 0.6 per cent from January on a seasonally adjusted basis, said the Department of Statistics.

Food prices rose by 0.7 per cent in February due to dearer prepared meals, fresh seafood and chilled pork during the Chinese New Year period, while communication cost rose 2.2 per cent mainly from higher internet subscription fees.

Excluding accommodation costs, the CPI went up by 0.5 per cent last month.

Compared to a year ago, inflation was up by 1 per cent, reflecting higher costs of transport, food and education.

Transport cost surged by 7.6 per cent from a year ago because of higher car and petrol prices, while food prices crept up by 1.2 per cent.

Singapore last month lowered its inflation forecast for this year to 2-3 per cent from the previous 2.5 to 3.5 per cent due to a rebasing of the consumer price index.

For full report from Department of Statistics, please click here.

17 Mar 2010 - Singapore Feb exports up 23%

Singapore said that its key non-oil domestic exports (NODX) saw strong growth in February, bolstered by improved demand from the European Union and Asian markets.

The 23 percent jump to 11.9 billion Singapore dollars was better than analysts' projections of a 18.4 percent rise and followed January's 20.5 percent increase.

The International Enterprise Singapore (IE Singapore) said in its monthly report that NODX to the European Union grew an annual 35.3 percent in February, while shipments to Japan rose 33.9 percent and grew 38.9 percent to Hong Kong.

NODX to the country's top 10 markets, including the European Union, Japan and the US, all posted growth in February, the data from the trade promotion agency showed.

The city-state's economy, worth 257 billion Singapore dollars, is highly dependent on overseas demand, meaning it is vulnerable a global slowdown.

Singapore's NODX figures are widely monitored as they provide an indication of how the trade-led economy is performing.

The government in February upgraded its 2010 growth outlook to 4.5-6.5 percent from 3.0-5.0 percent amid signs the global economy was recovering from a slowdown.

15 Mar 2010 - Jobless rate falls to 2.1%

The Singapore labour market showed resilience and grew for the first time amid an economic recession in 2009, with overall unemployment rate falling to 2.1 per cent last December.

It weathered the 2009 recession better than previous downturns, supported by the Resilience Package and concerted tripartite efforts to save jobs.

Employment rebounded in the second half of the year, with employment gains for residents while the foreigners' share fell, according to a labour market report for 2009 released by the Ministry of Manpower.

Total employment in 2009 grew by 37,600 or 1.3 per cent last year despite the economy contracting by 2.2 per cent. Local employment rose by 41,800 or 2.2 per cent, with most gains in the fourth quarter, propelled by hiring in the services sector for the year-end festivities and integrated resorts.

Employment only started to fall in the first quarter, three quarters after gross domestic product (GDP) started declining in the second quarter of 2008. This was unlike previous downturns in 2001 and 1997/98 when employment lagged GDP by two quarters, said the report.

With strong employment growth in the last quarter, the overall unemployment rate fell from a seasonally adjusted 3.4 per cent in September to 2.1 per cent in December. As the economy emerged from the recession, redundancies fell for the third successive quarter to 2,220 in Q4, returning to to pre-recession quarterly levels.

For labour market report for 2009 released by the Ministry of Manpower, please click here.

10 Mar 2010 - Economists raise 2010 growth outlook for Singapore

Economists have upped their growth outlook for Singapore as the city-state's key industries continue to rebound from last year's recession, according to a central bank poll.

The Monetary Authority of Singapore's survey of 20 private-sector economists showed they see average growth of 6.5 per cent this year, higher than the previous forecast of 5.5 per cent in December.

They also raised their outlook for the island-state's major industries including manufacturing, which is now predicted to expand an annual 9.7 per cent from the previous forecast of 6.3 per cent.

Wholesale and retail trade is seen growing 8.4 per cent instead of 7.0 per cent while construction is tipped to expand 8.9 per cent, from a previous projection of 7.1 per cent.

The government in February upgraded its 2010 economic growth outlook to 4.5 - 6.5 per cent from 3.0 - 5.0 per cent. Singapore's economy contracted 2.0 per cent last year due to the global economic downturn.

23 Feb 2010 - Singapore Budget 2010 at a glance

Singapore expects a smaller budget deficit for the fiscal year starting April 1, 2010. The government will, however, increase spending to raise productivity.

The government expects a basic budget deficit of $7.2 billion, or 2.6 percent of GDP, for the fiscal year beginning April 2010, down from an estimated $8.5 billion, or 3.3 percent of GDP, this fiscal year.

Following are highlights of the budget:

$5.5 BLN TO RAISE PRODUCTIVITY

Singapore will commit S$1.1 billion a year over the next five years in the form of tax benefits, grants and training subsidies to support the national effort to raise productivity.

$1.5 BLN TO HELP GROWING COMPANIES

The government will mobilise up to S$1.5 billion of growth capital by seeding a range of funds over 10 years. Up to half the money will come from government coffers.

FOREIGN WORKER LEVY

The government will increase the levy on low-skilled foreign workers over three years. The levy on work permit holders will be raised by S$10 to S$30 per worker per month on July 1, 2010, and will average about S$100 over three years. However, the dependency ratios, which is the number of foreigners a firm can employ for every local on its payroll and which varies by industry, will remain unchanged.

'PROGRESSIVE' PROPERTY TAX

The government will introduce a 'progressive' property tax on owner-occupied homes with a top rate of 6 percent of the property's annual value - which is a figure set by the government based on the estimated net annual rent the property can command. Non-owner-occupied residential properties will continue to be taxed at a flat rate of 10 percent of annual value.

WAGE SUBSIDY

The government will top up the wages of lower-paid Singaporean workers, those who make S$1,700 a month or less, by between S$150 and S$400 a month, with older workers getting a larger wage subsidy.

INCENTIVES FOR SPECIFIC INDUSTRIES

The government renewed tax incentives for real estate investment trusts and aviation maintenance, repair and overhaul to promote these industries.

NO TAX REBATES

Singapore did not extend property and income tax rebates.

JOB CREDITS

The government will cut and eventually phase out a subsidy paid to employers to encourage them to hire or retain Singapore citizens or permanent residents.

For press release, please click here.

22 Feb 2010 - Measures to cool property market

In September last year, the Singapore Government introduced a set of measures to temper the exuberance in the private residential market. The Government has continued to monitor the property market closely. While the September 2009 measures helped to cool the property market, there are recent signs that it is starting to heat up again.

Demand for private housing units has spiked sharply in January this year. The number of units sold by developers in January was triple that in December 2009 and was the highest monthly total since September 2009. Prices have also increased sharply in the second half of 2009, at a faster rate compared to previous rebounds from the troughs of property cycles, and the price increase has continued in January. Mortgage lending has also increased steadily by around 12% year-on-year through 2009.

While the current level of speculative activity in the market is still lower than what it was at the height of the property market boom, and overall price levels are below the previous peak, there is a risk that the market could overheat in the next few months, fuelled by low global interest rates and positive sentiments associated with the economic recovery.

Any excessive exuberance will make the property market vulnerable to the continuing risks in the global economy. Should growth turn out weaker than expected, property buyers and speculators could face capital losses as the market corrects. Conversely, if the recovery stays on course, interest rates will eventually rise and drive up financing costs with severe implications for those who have overextended themselves.

Therefore, the Government has decided to introduce calibrated measures now to temper sentiments and pre-empt a property bubble from forming. We will tighten the supply of credit to the housing market to encourage greater financial prudence among property purchasers. The Government prefers to take small steps early, rather than be forced to impose more drastic measures after a bubble has formed.

The Government announced the following measures to ensure a stable and sustainable property market:

a) Introducing a Seller’s Stamp Duty (SSD) on all residential properties and residential lands that are bought after today and sold within 1 year from the date of purchase; and
b) Lowering the Loan-to-Value (LTV) limit to 80% for all housing loans provided by financial institutions regulated by the Monetary Authority of Singapore (MAS)
The measures will take effect on 20 February 2010.

The Government will continue to monitor the property market closely and will introduce additional measures if required later, to promote a stable and sustainable property market.

For press release from MAS, please click here.

19 Feb 2010 - Singapore ups 2010 growth

Singapore's economy, which contracted 2 per cent last year, is expected to grow at 4.5 to 6.5 per cent this year, adding to evidence of a sustained regional recovery.

The Ministry of Trade and Industry (MTI) gave the revised GDP growth forecast in a statement. The earlier prediction was for the economy to grow 3 to 5 per cent in 2010.

The economy expanded by 4 per cent in the fourth quarter of 2009, from a year ago, after growing by 0.6 per cent in the previous quarter. On a seasonally adjusted quarterly annualised basis, Singapore's GDP contracted by 2.8 per cent in the fourth quarter, said MTI.

The services sector grew by 6.6 per cent in the fourth quarter, compared to 8.2 per cent growth in the third quarter. The trade- and tourism-related sectors posted the strongest gains compared to the previous quarter. The financial sector, however, contracted from the previous quarter, in part due to declines in the fund management and stockbroking segments.

The manufacturing sector contracted by 29 per cent in Q4, reversing from the 25.6 per cent expansion in the third quarter. This decline was mainly due to a contraction in the output of the biomedical manufacturing and transport engineering clusters. Growth in the electronics and chemicals clusters strengthened on the back of continued recovery in global trade.

On the outlook for 2010, Asia is expected to experience a strong recovery this year. But the recovery in the G3 economies, is expected to be weaker, largely supported by fiscal stimulus measures and inventory accumulation in the first half of the year.

The outlook for the second half of the year remains uncertain. Private final demand in the G3 may remain weak, as there are still few indications that non-policy induced private demand is gaining strength.

The Ministry of Trade and Industry expects the Singapore economy to grow by 4.5 to 6.5 per cent in 2010. This upgrade from the earlier 3 to 5 per cent forecast largely reflects increased strength in the near term growth momentum.

For press release on Performance of the Singapore Economy for 2009, please click here.

17 Feb 2010 - Roaring start for home sales

Sales of private homes in Singapore got off to a roaring start for 2010, rising for the first time in six months.

The number of transactions for January was 1,476, up from 481 units sold in December, according to fresh data from the Urban Redevelopment Authority.

The new data showed that demand was moving towards the prime areas, as predicted by property analysts recently. About half, or 699 units sold were located in the core central region.

Four projects - Cube 8, RV Edge, The Shore Residences and Urban Suites - launched more than 100 units each in January at a median price above $1,000 psf.

These four projects chalked up the most sales in January, making up 33 per cent of the total sales for the month.

The spread of the property market boom towards higher-end homes was seen at Urban Suites, where 88 units sold at a median of $2,506 psf.

12 Feb 2010 - Casino tax

With the opening of the two Integrated Resorts (IRs), Marina Bay Sands and Resorts World Sentosa in Singapore and casinos within being operational.

The casino tax is a new tax introduced to levy tax on the casinos’ gross gaming revenue.

Find out more on:

- How casino tax is computed (Gross Gaming Revenue, casino tax rates...)

- Filing and paying casino tax .

11 Feb 2010 - Sharp fall in office rents

Singapore saw the steepest decline in office rents across 25 Asia-Pacific cities, but remains the third most costly office site after Tokyo and Hong Kong.

Grade A office occupancy costs in Singapore fell to US$53.78 (S$76) per sq ft per year in the fourth quarter of last year, down about 46 per cent from US$97.30 psf in the same period in 2008, said Colliers International's latest Asia-Pacific office market overview. Costs are projected to stabilise at US$53.19 psf this year.

Hong Kong, which saw yearly Grade A occupancy costs fall 24.2 per cent from US$104.14 psf to US$78.92 psf, registered the next highest fall in office rents. The same costs in Tokyo slipped to US$101.39 psf, down from US$128.50 psf a year ago.

The gap in rents between Singapore and the top two most expensive cities - Tokyo and Hong Kong - has since widened to 88.5 per cent and 46.7 per cent respectively, from 32.1 per cent and 7 per cent previously, said the report.

With Asia-Pacific leading the world out of recession, the competitive office rent in Singapore now offers businesses a compelling reason to invest in or locate their operations here.

9 Feb 2010 - Accountancy sector poised for a shake-up

The Committee to Develop the Accountancy Sector (CDAS) has put up 10 proposals for Singapore to become a leading global accountancy hub over the next 10 years:

Accountancy Firms

1. Encourage some 500 small and medium practices to consolidate through a 2-year programme, with grants to cover post-merger integration costs and join regional/global network alliances.

2. Liberalise ownership rules for accounting firms, from the current two-thirds to a simple majority of public accountants, and recognise international practical experience for registration of public accountants.

3. Review the current S$5 million audit exemption threshold, which may reduce the pool of audit clients..

Accountancy Sector

4. Establish a Singapore Accountancy Council to steer the move towards the global accountancy vision.

5. Establish an Accountancy Sector Development Fund.

6. Set up an Accountancy Research Centre.

7. Transform the Institute of Certified Public Accountants of Singapore (ICPAS) into a global professional accountancy body, including review of its constitution.

8. Develop Singapore into a leading Asia-Pacific accountancy services centre.

Training & Development

9. Develop Singapore into a centre for professional development of Chief Financial Officers, internal audit and risk management specialists, tax and valuation experts.

10. Develop a globally-recognised postgraduate practice-focused professional accountancy qualification.

CDAS was formed by the Ministry of Finance at the end of 2008 to review the accountancy sector. It completed its review in November 2009 and is currently finetuning the 10 proposals following public feedback.

4 Feb 2010 - Singapore and Japan enhance tax cooperation

Singapore and Japan signed a protocol to incorporate the new internationally agreed Standard for the exchange of information for tax purposes upon request in their standing Agreement for the Avoidance of Double Taxation (“DTA”) on 4 February 2010.

The protocol was signed in Singapore by Mr. Moses Lee, Commissioner of Inland Revenue, and His Excellency Mr. Makoto Yamanaka, Japan’s Ambassador to Singapore.

The protocol will enter into force after its ratification by both countries. For full text of the protocol, please click here.

1 Feb 2010 - Economic Strategies Committee submitted bold and innovative blueprint for Singapore's future

The Economic Strategies Committee (ESC)completed its work and has submitted the report of its key recommendations to the Prime Minister.

A vibrant and distinctive global city – open and diverse, the best place to grow and reach out to a rising Asia, and a home that provides an outstanding quality of life for our people. This is what the recommendations of the Economic Strategies Committee aim to achieve for Singapore.

To sustain Singapore’s development as well as ensure that growth is inclusive, the Committee recommends that we make skills, innovation and productivity the basis for economic growth. This will drive a broad-based increase in living standards for all our citizens.

7 Key Strategies:

1. Growing through skills and innovation
2. Anchor Singapore as a Global-Asia Hub
3. Build a Vibrant and Diverse Corporate Ecosystem
4. Make Innovation Pervasive, and Strengthen Commercialisation of R & D
5. Become a Smart Energy Economy
6. Enhance Land Productivity to Secure Future Growth
7. Build a Distinctive Global City and an Endearing Home

For Summary of ESC Key Recommendations, please click here.

For main report, please click here.

1 Feb 2010 - Sharp Q1 growth seen

The Singapore economy may grow by 8.4 per cent in the first quarter, a survey on business climate has predicted.

The BT-UniSIM survey, polled 149 firms on their business outlook for the next six months, and their sales, orders and profits in the last quarter of 2009. Now in its 15th year, the business prospects indicator has proven to be closely correlated to Singapore's gross domestic product growth in the following quarter.

Survey director Chow Kit Boey expects a GDP growth of between 7.3 and 8.4 per cent, based on the upbeat business prospects outlook from businesses across the board.

The business prospects indicator saw a dramatic turnaround in the latest poll, with a 45 per cent net balance (the difference between the proportion of optimistic firms and those that were not) compared to 91 per cent of firms with pessimistic outlook in the last poll.

In terms of actual business performance in Q4 last year, more firms reported better sales, profits and orders than in the previous quarter.

Business optimism rose for all types of firms, especially among the large and foreign-owned ones. Better business performance was also reported for both domestic and overseas business activities.

29 Jan 2010 - Singapore and Costa Rica Conclude Negotiations on Free Trade Agreement

Singapore and Costa Rica have successfully concluded negotiations on a Free Trade Agreement (FTA) after 4 rounds of talks.

Both sides agreed to launch FTA negotiations on 2 December 2008, during the official visit to Singapore by the President of Costa Rica, Dr Oscar Arias Sanchez. The first round of negotiations was held in April 2009. Singapore and Costa Rica will sign the FTA once domestic processes are completed.

Under the agreement, Singaporean and Costa Rican companies will enjoy greater access to each other’s markets. Both Singapore and Costa Rica have committed to full product coverage for tariff elimination - Singapore will grant immediate duty free access for all imports from Costa Rica, while Costa Rica would eliminate tariffs for 90.6% of its tariff lines upon entry into force of the agreement. The tariffs on the remaining products would be eliminated over a period of 10 years, with possibility of accelerated tariff elimination.

The conclusion of the Singapore-Costa Rica FTA is a sign of the warming bilateral economic relations between both countries, and provides a platform to grow our bilateral trade and investments even further.

For press release, please click here.

26 Jan 2010 - Singapore inflation up 0.2% in 2009

Singapore's consumer price index (CPI) edged 0.2% on-year in 2009 mainly due to higher food and healthcare costs. This was lower than the 6.5% increase posted in 2008.

Food prices rose 2.3% as a result of more expensive cooked food, rice, fresh pork and fish, while hospital fees, dental treatment charges and medical insurance premiums drove healthcare costs up 2.9%.

Clothing and footwear costs also increased 1.1% while education and stationery were 0.3% dearer. However housing, recreation, and transport and communication costs dipped between -2.4% to -0.1%.

Meanwhile, December CPI went up by 0.1% on-year. Although the subdued figures surprised industry observers, they marked an end to 8 months of negative year-on-year readings since April.

For press release, please click here.

21 Jan 2010 - S'pore 2nd-freest economy again

Singapore remains the world's second-freest place to do business, according to the 2010 Index of Economic Freedom.

Hong Kong edged out the Republic for the 16th consecutive year to top the rankings, compiled by The Heritage Foundation, a conservative Washington- based think tank, and The Wall Street Journal.

Australia and New Zealand grabbed third and fourth spot respectively.

The United States, however, saw its standing dented: it is placed at No. 8, down two places from a year ago. That means the US has lost its claim to being an unrestricted economy.

The rankings are based on criteria that include economic openness, trade, the efficiency of domestic regulators and the rule of law.

Singapore retained its second- place ranking despite a relatively poor score in the financial freedoms category.

The index authors described last year as a mixed, sometimes nightmarish, time for economic freedoms. Several of the world's top economies - including China, Britain and the US - floundered because of 'unsuccessful attempts to spend their way to prosperity'.

The index's premise is that a higher degree of economic freedom yields higher levels of prosperity and per-capita income.

The index showed that half of the world's major economies curtailed economic freedoms to some extent last year. Britain also fell in this year's index, to 11th out of the 179 countries graded.

Meanwhile, China, a relative laggard on the economic-freedom charts with a ranking of 140, saw its score drop because of 'significant declines' in investment and labour freedoms.

Cuba, Zimbabwe and North Korea rounded out the bottom of the list.
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19 Jan 2010 - S'pore's exports recovering

Singapore's exporters are shaking off the last effects of the recession and are firmly in the ascendant again.

Data released by International Enterprise Singapore shows that non-oil domestic exports (Nodx) jumped 26.1 per cent last month from a year ago, following an 8.7 per cent increase in November.

Last month's bumper trade figures improve Singapore's full-year export balance sheet and mean total Nodx shrank by 10.6 per cent last year, which is in line with the Government's forecast of a 10 per cent to 11 per cent decline.

Exports account for two-thirds of gross domestic product (GDP) and the Republic is dependent on a revival in shipments overseas to fuel recovery.

The Government had predicted up to a 13 per cent shrinkage and some private sector economists had pencilled in a 17.5 per cent export slump.

During the depths of the recession last January, exports plunged 34.7 per cent.

For press release, please click here.

11 Jan 2010 - Singapore and Slovenia Sign Avoidance of Double Taxation Agreement

Singapore and Slovenia signed an Agreement for the avoidance of double taxation (“DTA”).

The DTA was signed in New York by both countries’ Permanent Representatives to the United Nations.

The DTA will help boost bilateral trade and investment by minimising the double taxation of income that may occur as a result of cross-border economic activities between both countries. Amongst other provisions, the DTA includes the internationally agreed Standard for the exchange of information for tax purposes upon request, provides for lower withholding taxes for dividends, interest and royalties, and sets out permanent establishment rules.

The full text of the DTA is available on the Inland Revenue Authority of Singapore’s (IRAS) website. The DTA will enter into force after its ratification by both countries.

5 Jan 2010 - Private home prices surge

Private home prices shot up 7.3 per cent in the final three months of last year, allowing 2009 to finish in positive territory after a horror start.

Flash estimates indicated that prices overall increased by 1.7 per cent last year and it was all down to the final, frantic six months.

The 7.3 per cent jump in the October to December period built on a stellar 15.8 per cent surge in the third quarter - the biggest quarterly rise in 28 years and one that ended 12 dismal months of price decline.

'In a bad year, we still managed to show a 1.7 per cent rise in prices. There's certainly optimism in the Singapore property market,' said Cushman & Wakefield managing director Donald Han.

That low overall figure is a stark reminder of how last year shaped up as a year of two halves, with dire results early on and a surge in the second six months.

Mass market housing was the star segment with record levels reached.

For press release, please click here.

4 Jan 2010 - Sharp dip in Q4 GDP

Singapore’s economy shrank a bigger-than-expected 6.8 per cent on a seasonally adjusted and annualised basis in the fourth quarter, raising expectations the central bank may not start tightening policy until later in the year.

Economists have been expecting the central bank to shift towards tighter policy at its next meeting in April by allowing a gradual appreciation of the Singapore dollar, but a shaky recovery from recession could mean policy will be on hold.

GDP in the October-December period grew 3.5 per cent from a year earlier, the second quarterly growth after three quarters of annual contraction. Growth was smaller than expected as manufacturing weakened, the advance data showed.

On a seasonally adjusted and annualised basis, manufacturing shrank 38.4 per cent from the previous quarter, while construction grew 4.3 per cent and service industries expanded 7.2 per cent.

GDP fell 2.1 per cent in 2009, largely in line with economists' forecasts. The government expects growth for this year of 3 to 5 per cent.

For press release, please click here

2 Jan 2010 - Job losses minimised in 2009

THE list of casualties wasn't as long as you might have expected from the worst global downturn since the 1929 Great Depression. By the time 2009 ended, about 20,000 workers had been laid off here, according to the National Trades Union Congress (NTUC).

And that's less than the numbers in the previous two crashes - 29,080 during the 1998 Asian financial crisis and 25,840 during the 2001 Sars outbreak.

The jobless rate climbed to 3.4 per cent in September 2009 - still 'full employment' by most standards, and only half the 6.2 per cent peak in September 2003.

While the world economy in 2009 sank to the depths reached in 1929, it didn't stay down for long.

Recovery this time around was quick - thanks to governments worldwide acting as one to pump out massive sums of money to prop up tottering financial systems. The worst was over by June 2009 - barely nine months after Lehman Brothers' crash that sent the global economy over the edge.

The Singapore economy turned around in the second quarter, posting its first growth after four straight quarters of decline.

The recovery in employment, as usual, lagged economic recovery in general. But signs of a pick-up in hiring started to surface in June. Figures from the Ministry of Manpower show that in the July-September quarter, more than enough jobs were created to wipe out the job losses of the first two quarters.

It was a far cry from just six months earlier, when ministers, union chiefs and economists were warning of massive job losses ahead.

Now, with things looking up, they are dancing to a more upbeat tune - and even looking at higher pay and bonuses in an anticipated state of high employment. The changed mood is reflected in the labour movement, which recently declared victory in staving off record lay-offs and unemployment.

29 Dec 2009 - Govt loan schemes to offer cushion for another year

Despite the economic recovery, business can still count on a helping hand from the government in 2010.

The Ministry of Trade and Industry (MTI) announced that the government will extend for another year the financing schemes under the Special Risk-Sharing Initiative (SRI) and the enhancements to existing financing schemes that were introduced at the onset of the global economic downturn.

The extension will, however, be on revised terms. This is to take into account improvements in the global economic situation and the Singapore economy. With this extension, the government expects to support up to $8.4 billion of new loans through schemes like the Bridging Loan Programme (BLP), Loan Insurance Scheme (LIS), Local Enterprise Finance Scheme (LEFS) and Micro Loan Programme (MLP), till end-January 2011.

The SRI and the enhanced business financing schemes have catalysed more than 14,000 loans worth about $8 billion since December 2008 - 5.5 times more compared to the year prior to the changes. Of the schemes offered, BLP is the most popular, making up 42 per cent of the number of loans given, and 45 per cent of the quantum of loans.

The revised terms for BLP include the reduction of the loan quantum from $5 million to $2 million, and a shorter loan tenure from four years to two years.

For press release, please click here.

18 Dec 2009 - New Singapore-Ukraine Avoidance Of Double Taxation Agreement Ratified

Singapore and Ukraine have completed the procedures to bring into force their Agreement for the Avoidance of Double Taxation (“DTA”) that was signed in January 2007. The DTA provisions shall apply to income derived on or after 1 January 2010.

The DTA will encourage and facilitate cross-border trade and investment between Singapore and Ukraine through the lowering of tax barriers, and providing greater clarity on taxing rights between the two nations. Amongst other provisions, the DTA lowers the withholding tax rates for dividends, interest and royalties. The new withholding tax rates for interest and royalties are 10% and 7.5% respectively, while the withholding tax rates for dividends are 5% or 15%, depending on the shareholding structure.

For full text of the protocol, please click here.

18 Dec 2009 - $900m Jobs Credit payout

The fourth payment of Jobs Credit will be paid to more than 100,000 bosses, employing about 1.4 million local workers by Dec 24.

Eligible employers will get a notification letter and the amount they will receive by Dec 22 from the Inland Revenue Authority of Singapore (IRAS), said a statement from the Ministry of Finance.

The Jobs Credit Scheme was introduced as part of the Resilience Package in Budget 2009 in response to the global economic crisis. With the economy now having stabilised, the Government announced in October it will phase out the Jobs Credit Scheme by providing another two, stepped-down payments in March and June next year.

The two additional payments, which will cost the Government $675 million, will be at stepped down rates as follows:

* March 2010 payment, based on 6 per cent of salary of employees on the payroll in January 2010.
* June 2010 payment, based on 3 per cent of salary of employees on the payroll in April 2010.

The first additional payment to be made in March will be computed based on employees on the CPF payroll for the month of January 2010. Employers must make their CPF contributions for October to December 2009 in order to qualify for this first extended payment of Jobs Credit. They have up to Feb 14 to do so.

17 Dec 2009 - Exports surge in Nov

Singapore's exports rose in November for the first time in 19 months, driven largely by more shipments of chemicals and pharmaceutical products.

Non-oil domestic exports jumped 8.7 per cent in November compared to the same month last year, a much higher rise than economists had expected.

On a month-on-month basis, exports shot up 20 per cent in November from October, after falling 13 per cent in October from September, according to the latest figures released by IE Singapore.

Out of Singapore's top 10 markets, five increased their imports from Singapore last month. In particular, Singapore's exports to Europe rose by 18 per cent, while its exports to Hong Kong and Taiwan jumped 36 per cent and 60 per cent respectively.

Singapore's economy expanded 0.6 per cent in the third quarter of 2009 from a year earlier, confirming the economy returned to growth after three quarters of annual contraction. The government expects the economy to grow up to 5 per cent next year after contracting an expected 2.5 per cent this year.

Pharmaceuticals rose 78 per cent in November from a year earlier while petrochemicals increased 44 per cent, said IE Singapore. Electronic products - which account for 37 percent of non-oil exports - fell 6.1 per cent.

15 Dec 2009 - S'pore 4th best place for expat posting

Singapore is the fourth most attractive posting globally for expatriates, according to a new survey from HSBC.

The bank's report, which assesses the expatriate experience provided by 26 key locations, puts the Lion City behind Canada, Australia and Thailand but ahead of Bahrain, South Africa, France and the US.

Some 3,146 expatriates from 50 economies were polled for the survey, which ranks Singapore highly for logistics such as the setting up of utilities and transport, but lowly in terms of softer issues such as making local friends and hobbies.

Singapore got the thumbs up for quality of transport, education, childcare and health care.

The Republic emerged top for the setting up of utilities, with 82per cent of expatriates stating that the experience was fuss-free. By contrast, two-thirds of expatriates in the United Arab Emirates found the same process tough.

Singapore came fourth for transport, with the quality of this system making it easier to get to work.

Two-thirds of those polled noted an increase in the ease of travelling to work after moving to their new base, compared with 44per cent globally. And 72per cent said the general quality of travel was better than that available in their home countries.

Hong Kong came two places ahead of Singapore in this area, with expatriates finding the commute to work easier and noticing an improvement in transport generally.

Singapore excelled in education and childcare, coming in second behind Malaysia for organising schooling for expatriate children. Some 37per cent of expatriates here reported an increase in the quality of education and childcare after moving to Singapore, compared to only 18per cent globally.

11 Dec 2009 - Second Protocol to the Avoidance of Double Taxation Agreement (DTA) between Singapore and China Ratified

A Second Protocol to the standing agreement for the avoidance of double taxation (DTA) between Singapore and China entered into force on 11 December 2009.

The Protocol makes amendments to Articles 5 (Permanent Establishment), 11(Interest) and 22 (Elimination of Double Taxation) of the current DTA.

For full text of the protocol, please click here.

10 Dec 2009 - MAS survey: S'pore GDP may grow 5.5% next year

Manufacturing and private consumption are going to help Singapore's economy grow faster next year than economists initially predicted, a central-bank survey showed.

Gross domestic product may expand 5.5 per cent next year, after shrinking 2 per cent this year, according to the median forecast in a quarterly survey of economists by the Monetary Authority of Singapore.

That compares with a September forecast for 4.5 per cent growth next year and the Government's estimate of between 3 and 5 per cent.

The Government last month said that it does not expect a return to recessionary conditions, even as the outlook for the second half of next year remains uncertain.

Economists in the September survey predicted that GDP would shrink 3.6 per cent this year. Since then, as the global economy improved, the Government raised its forecast to a contraction of at least 2 per cent.

The US$182-billion (S$253- billion) economy will probably grow 4.7 per cent this quarter from a year earlier, the survey of 20 economists showed. The GDP rose 0.6 per cent in the three months ended Sept 30 from a year ago.

Manufacturing will probably fall 3.4 per cent this year, and climb 6.3 per cent next year, the survey showed. Exports may increase 10.1 per cent next year after sliding 12 per cent this year, the economists said.

Construction will advance 7.1 per cent next year, less than half of the 16.5 per cent pace expected this year, the economists estimated.

Private consumption may climb 3.8 per cent next year, while financial services may increase 6.5 per cent, according to the median estimates.

Singapore's unemployment rate may be 3.4 per cent at the end of the year, and fall to 3 per cent by the end of next year, the survey showed. The jobless rate was 3.4 per cent in the third quarter.

Consumer prices will probably rise 0.3 per cent this year and 2.8 per cent next year, according to the survey.

The central bank forecasts that inflation will be about zero this year and average 2.5 per cent to 3.5 per cent next year.

3 Dec 2009 - 9th most expensive Asian city

A sronger currency and a rise in inflation have made Singapore a more expensive place for expatriates to live in, a survey has found.

Singapore jumped three spots from a year ago to become the ninth priciest Asian city in the latest cost of living ranking by human resource company ECA International.

It beat Taiwan's Taipei and China's Shenzhen and Guangzhou, but remained cheaper than Japan's Tokyo and Yokohama, and China's Beijing, Shanghai and Hong Kong.

Worldwide, Singapore's rising cost of living catapulted it into the 78th spot on this year's global survey, up almost 20 places from 97th last year.

The main reason for the movement - and, in fact, for most of the changes in this year's survey - was exchange rate fluctuations, said ECA International.

The Singapore dollar has gained about 10 per cent against the US dollar since March. This has helped push up the cost of living in Singapore, compared with some neighbouring cities whose currencies are pegged to the US dollar such as Hong Kong.

2 Dec 2009 - S'pore office rents tumble

Great news for office tenants in Singapore but far leaner times for landlords: Office rents have plummeted by more than half in the past 12 months.

On average, they fell a whopping 53.4 per cent from their peak in the third quarter of last year to Sept 30 this year - the second-fastest rate of fall in the world. Only rents in Kiev, Ukraine, fell more quickly, by 64.6 per cent.

That meant the Republic fell from 9th spot to No.32 in the latest Top 50 most expensive markets list, according to a half-yearly global survey done by US-based consultancy CB Richard Ellis.

The occupancy cost here - rent plus local taxes and service charges - is now US$63.89 (S$88.25) per square foot (psf) a year, down 23 per cent from six months ago when it was in 15th place. That is down more than half from US$135.13 psf a year ago.

The market is now roughly where it was three years back. Just two years ago, Singapore was No. 1 in terms of the highest 12-month rise in occupancy costs across the globe. This threw many tenant companies into a frenzied search for cheaper digs.

1 Dec 2009 - More jobless in June

The proportion of residents here who are employed fell for the first time in six years, because of the financial crisis.

The proportion of those aged 25 to 64 who had a job fell to 75.8 per cent in June this year, from a peak of 77 per cent a year ago, an annual survey by the Ministry of Manpower found.

This was largely due to job losses suffered by those in the group with the prime working ages of between 25 and 54.

Despite the downturn, the employment rate of older residents aged between 55 and 64 remained at the record high of 57.2 per cent reached last year.

Overall, 5.9 per cent of residents were jobless this June, up from 4 per cent a year ago.

The weak economy also meant that income for those who held down jobs has stayed largely flat this year, after strong gains in the previous two years.

The median monthly income among full-time workers rose slightly by 0.5 per cent to $2,600 in June this year, from $2,590 a year ago.

Part-time workers' median income rose from $600 to $620 during the same period.

But that for all employed residents dipped by 1.2 per cent, from $2,450 to $2,420 in the same period, as more people were hired part-time this year, the ministry said.

The number of contract workers grew by 4.3 per cent over a year to reach 197,000 in June this year, continuing a rising trend noted since 2006.

This growth rate exceeded the 0.8 per cent increase in the number of permanent employees in the same period.

For press release of Singapore Workforce 2009, please click here.

23 Nov 2009 - Singapore and Malta enhance tax cooperation

Singapore and Malta signed a Protocol to incorporate the new internationally agreed Standard for the exchange of information for tax purposes upon request in their standing Agreement for the Avoidance of Double Taxation (“DTA”).

The protocol was signed in London by both countries’ High Commissioners to London, His Excellency Mr Michael Teo for Singapore, and His Excellency Mr Joseph Zammit Tabona for Malta.

The protocol will enter into force after its ratification by both countries.

For full text of the protocol, please click here.

19 Nov 2009 - 3-5% growth in 2010

The Singapore economy is slated to grow between 3 and 5 per cent next year, the Government has said in its first official forecast for 2010.

However the Ministry of Trade and Industry has maintained Singapore's GDP growth forecast for this year at -2.5 to -2 per cent after preliminary estimates show that the economy grew by 0.6 per cent in the third quarter, from a year ago.

'The preliminary estimates for the third quarter are in line with the advance estimates published, reflecting gradually stabilising global economic conditions,' said MTI in a statement. The third quarter growth came after a contraction of 3.3 per cent in the previous quarter.

On a seasonally adjusted annualised quarter-on-quarter basis, the economy expanded by 14.2 per cent in the third quarter, following growth of 21.7 per cent in the second quarter, with all major sectors registering positive growth.

MTI said the expansion was led by the manufacturing sector, which grew by 26.6 per cent on a quarter-on-quarter annualised basis, with increased production of higher-value pharmaceutical ingredients. The electronics cluster grew modestly on the back of continued restocking activities and an uptick in consumer demand for electronic devices.

The services-producing sectors also saw broad-based improvement, with sequential growth accelerating to 10.8 per cent from 7.9 per cent in the previous quarter, while the trade-related and tourism sectors posted double-digit sequential growth, as global trade flows improved and international travel picked up.

However, the pace of growth in the financial services sector moderated to 3.9 per cent from 22.5 per cent in the previous quarter. The construction sector also slowed down, growing by just 0.9 per cent compared to the growth of 32.7 per cent in the previous quarter. This moderation reflects a reduction in certified payments received for on-going real estate development projects.

For performance in third quarter 2009 and GDP outlook for 2009, please click here.

18 Nov 2009 - CDAS issues public consultation document on transforming Singapore into a leading Global Accountancy Hub

CDAS has issued its public consultation report on transforming Singapore into a leading global accountancy hub.

CDAS' vision is for Singapore to be a leading global accountancy hub over the next 10 years. A global accountancy hub has the following characteristics:

(a) Profession with international outlook and high value-adding expertise;
(b) Professionals who have strong adherence to ethics and integrity; and
(c) Professional development environment that is vibrant with diversity of professional bodies, and with strong contribution in thought leadership, research and development.

This vision is anchored on three strategic thrusts:

(a) Becoming a leading Centre for Accountancy Talent, Education, Thought Leadership & Professional Development;
(b) Becoming a leading Centre for High Value-Adding Professional Accountancy Services; and
(c) Strengthening the Singapore Accountancy Sector’s Infrastructure and Institutions.

For press release, please click here.

18 Nov 2009 - Singapore and Georgia sign Avoidance of Double Taxation Agreement

Singapore and Georgia signed an Agreement for the avoidance of double taxation (“DTA”).

The Agreement was signed in New York by both countries’ Permanent Representatives to the United Nations.

The DTA will help boost bilateral trade and investment by minimizing the double taxation of income that may occur as a result of cross-border economic activities between both countries. Amongst other provisions, the DTA provides for full exemption of withholding taxes for dividends, interest and royalties, and incorporates the internationally agreed Standard for the Exchange of Information for tax purposes upon request.

For full text of the protocol, please click here.

16 Nov 2009 - APEC Singapore 2009 Roundup

In the Asia-Pacific Economic Cooperation 2009 hosted by Singapore, leaders focused on economics, growth, regional integration and free trade.

Governments Stimulus Packages To Stay For Now

While recognising the need to wind down Government spending to boost economies, APEC finance chiefs agreed to keep stimulus packages in place for at least 1 more year and not rush into fiscal tightening to avoid a double-dip recession.

New Growth Strategy For 21st Century

1. Promote balanced growth

• Put in place structural financial reforms.
• Develop financial markets further.
• Create a more conducive environment for enterprise, investment and innovation.

2. Implement inclusive growth

• Help small and medium enterprises and female entrepreneurs access global markets and finance.
• Step up worker training, skills upgrading and ability of workers to move freely across borders.
• Invest more in education.
• Design social safety nets that provide short-term support but avoid long-term dependency.

3. Pursue sustainable growth

• Reduce barriers to trade and investment in environmental goods.
• Phase out subsidies on fossil fuels over the medium term.
• Mitigate climate change while not conflicting with international trade obligations.

4. Strengthen regional economic ties

• Work towards a free trade area for the Asia-Pacific by pushing ahead with the Trans-Pacific Partnership (TPP), which brings together Singapore, Brunei, Chile, New Zealand, the United States, Australia, Peru and Vietnam.
• Achieve a 25% region-wide cut in the cost, time and number of procedures when starting a business, getting credit, enforcing contracts, dealing with permits and trading across borders.
• Reduce business transaction costs by 5% by 2011.
• Unblock 8 choke points that have been identified in regional logistics and transport networks.

Self-Assessment Scheme For Traders In 2010

Tentatively called the Self-Certification Pathfinder, the scheme will give businesses the power to declare on their own that their goods are safe and approved for export to their free trade agreement (FTA) partners.

Traders will not need to apply for clearance from custom authorities. The importing country's custom authority will recognise the company's endorsement and charge duty-free rates accordingly.

Singapore, Australia, New Zealand, United States, Canada and South Korea have agreed to come onboard. Talks are underway to get more APEC economies to adopt the scheme.

16 Nov 2009 - Singapore and Finland enhance tax cooperation

Singapore and Finland signed a protocol to incorporate the new internationally agreed Standard for the exchange of information for tax purposes upon request in their standing Agreement for the avoidance of double taxation (“DTA”).

Mr Peter Ong, Permanent Secretary of the Ministry of Finance, signed the protocol with Finland’s Ambassador to Singapore, Her Excellency Ms Satu Mattila, in Singapore.

The protocol will enter into force after its ratification by both countries.

For full text of the protocol, please click here.

13 Nov 2009 - Singapore and Brunei Enhance Tax Cooperation - First Protocol after Singapore Joins OECD's White List

Singapore and Brunei signed a Protocol to incorporate the new internationally agreed Standard for the exchange of information for tax purposes in their standing Agreement for the Avoidance of Double Taxation (“DTA”) on 13 November 2009. This is the first Protocol Singapore signed after joining the Organisation for Economic Co-operation and Development (OECD) white list of jurisdictions that have substantially implemented the Standard.

Mrs Lim Hwee Hua, Minister Prime Minister’s Office, Second Minister for Finance and Transport, signed the Protocol with His Excellency Pehin Dato Abd Rahman Ibrahim, Brunei’s Finance Minister II, in Singapore.

Mrs Lim Hwee Hua commented, “We are pleased to sign this agreement with Brunei. This agreement marks another significant milestone in the long-standing and special friendship between both countries.”

For full text of the protocol, please click here.

13 Nov 2009 - S'pore joins 'white list'

Singapore has been taken off the 'grey list' and joined the Organisation of Economic Cooperation and Development's (OECD) 'white list' of financial jurisdictions.

This follows the signing of its 12th Avoidance of Double Taxation Agreement (DTA) with France on Friday, which incorporates the new internationally agreed standard for the exchange of information for tax purposes upon request.

Singapore already has similar agreements with Belgium, New Zealand, United Kingdom, Denmark, The Netherlands, Australia, Austria, Norway, Qatar, Mexico and Bahrain.

Finance Minister Tharman Shanmugaratnam inked the protocol with French Minister for Economy, Industry and Employment Christine Lagarde in Singapore on Friday.

Singapore was earlier put on the grey list which groups jurisdictions that had committed to the globally-agreed standard for the exchange of tax information, but had not substantially implemented it. To be removed from the grey list, a country needs to sign at least 12 agreements that incorporates the new standard.

Singapore endorsed the OECD Standard for the exchange of tax information in March, which requires governments to disclose financial information when specific foreign requests are made to chase tax evaders. Since then, it has renegotiated existing agreements with various countries. Last month, the Singapore Parliament approved the legislative changes to implement the standard.

For press release, please click here.

5 Nov 2009 - Tripartite Advisory to Provide Guidance for Employers & Prepare for Economic Recovery

One year on from the Tripartite Guidelines on Managing Excess Manpower which outlined various downturn measures to cut cost and save jobs, the tripartite partners - the Ministry of Manpower (MOM), the Singapore National Employers Federation (SNEF) and the National Trades Union Congress (NTUC) – have jointly released the Tripartite Advisory on Managing Manpower Challenges for Enhanced Competitiveness and Sustainability (see Annex).

The Advisory will help companies which are no longer confronted with excess manpower to better manage long term manpower challenges. Companies which still face excess manpower can continue to refer to the Tripartite Guidelines on Managing Excess Manpower.

The Advisory includes:

• Recommendations for companies which have experienced recovery to review cost-cutting measures which are still in place, in consultation with workers and trade unions (for unionised companies);
• Recommendation for companies to recognise employees for their support and sacrifices made during the downturn;
• Strategies for companies to enhance business competitiveness in the long term by implementing flexible wage systems and enhancing productivity.

For MOM press release, please click here.

4 Nov 2009 - S'pore top choice of migrants

Singapore is a top immigration hot spot, according to a global survey conducted by Gallup.

If it were to take in all adults who wish to settle in the country, its adult population of 3.6 million would jump to 13 million, said the survey released this week.

Gallup arrived at this figure by using what it called the Potential Net Migration Index (PNMI).

The index is the estimated number of adults who wish to leave a country permanently subtracted from the estimated number who wish to immigrate to the country, as a proportion of the total adult population.

The higher a positive PNMI value, the greater the potential of net population gain, proportional to the population size.

Singapore emerged tops with the highest PNMI value of 260 per cent, followed by Saudi Arabia (180 per cent), New Zealand (175 per cent), Canada (170 per cent) and Australia (145 per cent).

4 Nov 2009 - S'pore is most business-friendly nation

Singapore is the most business-friendly country in the world, according to a new survey of chartered accountants.

It came out on top in a poll of more than 1,000 members of the Institute of Chartered Accountants in England and Wales based in Asia, Europe, the United States and the Gulf.

The Global Enterprise survey covered three Asian locations - Hong Kong, Singapore and Malaysia - where 280 respondents were based.

Of these, 97 per cent of those located in Singapore rated their domestic environment as 'business-friendly', compared with 88 per cent in Hong Kong and 84 per cent in Malaysia.

Some 80 per cent of Singaporean respondents went a step further to say the country was 'very business-friendly', compared with 63 per cent in Hong Kong and just 9 per cent in Malaysia.

This was in sharp contrast to the view held by European businesses of their own regulatory and taxation environment.

About 54 per cent of British businesses and 43 per cent of companies based in the rest of the European Union are struggling with what they see as a business-unfriendly environment, the survey found.

Tax experts say Singapore is business-friendly despite its 17 per cent corporate tax rate being higher than Hong Kong's 16 per cent. Both, however, are low in relation to Malaysia's 25 per cent.

30 Oct 2009 - S'pore jobless rate at 3.4%

Singapore's preliminary unemployment figures rose slightly to a seasonally adjusted 3.4 per cent in the third quarter of 2009, after remaining steady at 3.3 per cent in the previous quarter, the Ministry of Manpower said.

With a recovering economy, total employment is estimated to have grown by 15,400 in the third quarter, ending losses in the first and second quarters of 2009 (-6,200 and -7,700 respectively). Nevertheless, the gains were significantly lower than 55,700 in the third quarter of 2008.

Apart from manufacturing, the major sectors showed growth, according to figures released by the Ministry of Manpower.

Figures for retrenchment and redundancy also improved, with an estimated 2,000 workers retrenched and 200 workers whose contracts were terminated prematurely.

For more on the Employment Situation in Third Quarter 2009, please click here.

30 Oct 2009 - 2010 growth slow, steady

First, the good news. Singapore's economy has moved beyond the initial post-crisis bounce of growth and will continue to expand as genuine demand begins to stabilise around the world.

But Singaporeans must prepare for a 'slower and steadier' pace of expansion next year than they are used to, said the Monetary Authority of Singapore (MAS).

Even though Asian economies have recovered strongly, many of Singapore's key export markets remain weak. In fact, half of the country's exports go to economies that are expected to grow more slowly than usual next year.

And once governments withdraw their stimulus packages, which have provided a cushion, there could be a period of adjustment before 'normal' private-sector demand rises enough to take over.

This will weigh on Singapore's growth, making it lower than in previous post-recession periods, MAS said in its twice-yearly Macroeconomic Review.

While MAS did not provide any growth projections, its assessment implies that average growth for the next four quarters will come in lower than 4 per cent quarter-on-quarter, the rate of growth after the 2001 downturn.

For the Oct 2009 Macroeconomic Review, please click here.

27 Oct 2009 - Singapore Inflation Dips 0.4% In September 2009

Singapore's consumer price index (CPI) fell by 0.4% for the sixth consecutive month in September 2009.

The dip was steeper than economists' expectations of a 0.1% drop, mainly due to lower housing, recreation and transport costs:

- housing (-2.5%)
- recreation (-1.8%)
- transport and communication (-0.2%)

However, food prices increased by 0.8%, while education and health care costs rose between 2% - 2.1%, said the Singapore Department of Statistics (DOS).

With rising oil prices and the recovering economy, analysts do not expect deflation to drag on into 2010.

For copy of DOS Press Release, please click here.

20 Oct 2009 - Big spending budget to prop recovery next year

The government will continue to spend money to boost the economy in the next financial year, but measures will be more targeted and less broad-based.

Finance Minister Tharman Shanmugaratnam told Parliament that Budget 2010 will see a shift away from broad-based relief type measures towards measures that are 'targeted specifically at restructuring, enhancing productivity, and preparing for growth over the medium to longer term'.

Overall, however, the Government's budget position next year will not be much different from this year's, in that this year's 'expansionary fiscal stance' will likely remain as there are many major infrastructure projects in the works, like the Marina Coastal Expressway and the various subway lines.

Mr Tharman added: 'We will live within our means within this term of government. We have some savings as are indicated in the Budget this year.'

He mentioned that the Government would be more discriminating in selecting which firms would benefit from these new measures.

Such firms include those that are implementing productivity- enhancing measures or upping their innovative thrust, as well as those "growing the fastest, investing more and (who) are likely to lead the economy not just out of recession, but...lead the economy for growth over the next five years".

He reassured MPs that the new measures do not aim to create only high-end jobs, but also to boost "workers' capabilities up and down the line, from the simplest to the most complex jobs".

In his response to questions about the efficacy of the Resilience Package measures, which include the Jobs Credit scheme and Special Risk-Sharing Initiative (SRI), Mr Tharman said they have mitigated the scale of economic decline.

20 Oct 2009 - S'pore to enter 'white list'

Latest changes to the local tax regime will see Singapore edge closer towards getting on a list of the world's leading tax jurisdictions.

The Income Tax (Amendment) (Exchange of Information) Bill, passed by Parliament yesterday, will allow Singapore to implement an internationally agreed standard for the exchange of information on tax matters.

That is key to getting out of a 'grey' list of nations committed to the standard but have yet to fully implement it.

'This enhanced scope of cooperation will not only allow Singapore to provide greater assistance to its prescribed treaty partners, but also help Singapore obtain information for the enforcement of our domestic tax laws,' Finance Minister Tharman Shanmugaratnam told Parliament.

Singapore was in the spotlight earlier this year when the Organisation for Economic Cooperation and Development (OECD) put it on a grey list of countries that the organisation considers lax when sharing tax information with foreign tax jurisdictions.

The OECD has three lists: black, grey and white, with countries ranked according to their willingness to stick to its standards.

For copy of the Income Tax (Amendment) (Exchange of Information) Bill, please click here.

14 Oct 2009 - Singapore and Bahrain enhance tax cooperation

Singapore and Bahrain signed a protocol to incorporate the new internationally agreed Standard for the exchange of information upon request for tax purposes in their standing Agreement for the avoidance of double taxation (“DTA”).

Mr. Moses Lee, Commissioner of Inland Revenue, signed the protocol with His Excellency Shaikh Ahmed bin Mohammed Al Khalifa, Bahrain’s Minister of Finance, in Manama.

The full text of the protocol is available here. The protocol will enter into force after Singapore’s legislative amendments to give effect to the internationally agreed Standard have been approved by Parliament and gazetted into law, and the ratification procedures have been completed by both countries.

For full text of the protocol, please click here.

12 Oct 2009 - S'pore Q3 GDP up 15%

Singapore's economy grew an annualised 14.9 per cent in the third quarter, driven by the continued expansion of biomedical and electronics manufacturing output.

This is the second consecutive expansion, following a 22 per cent growth in the second quarter. Compared to a year ago, the economy grew by 0.8 per cent, after a 3.2 per cent contraction in the previous quarter.

The manufacturing sector expanded by 35 per cent on a seasonally-adjusted annualised basis, on the back of the previous quarter's spike of 59 per cent. This increase was primarily due to a continued surge in the production of higher value active pharmaceutical ingredients in the biomedical manufacturing cluster, said the Ministry of Trade and Industry in a statement.

MTI added that trade-related and tourism sectors of the economy also improved on the back of a gradual stabilisation in global economic conditions.

'Taking these factors into account, MTI is upgrading the economic growth forecast for 2009 to -2.5 to -2.0 per cent,' it said. This is less than an earlier forecast for a contraction of 4 per cent to 6 per cent.

'A clear but modest recovery is underway globally, at least for the next three or four quarters,' said MTI. 'However, economic activity will probably remain below pre-crisis levels because of the drag on demand in the developed economies posed by high levels of spare capacity and tight credit conditions.

A sustained recovery in private consumption and investment in the developed economies is needed to support growth momentum into the second half of 2010, it added.

For press release, please click here.

10 Oct 2009 - S'pore leaps to 4th spot on financial centre list

Singapore's ranking as a financial centre has shot up from 10th to fourth because of the way the country's financial system has weathered the global recession.

The crisis played havoc with the order of things in financial markets over the past year, with a few big guns like the United States being eclipsed, according to the World Economic Forum (WEF).

The WEF's analysis of economic growth and the financial systems of 55 countries found that the crisis was acutely felt by most global financial systems.

The scores of most countries on the Index in the annual Financial Development Report fell significantly from last year, with some of the largest economies taking the biggest hit.

Germany and France, in particular, suffered such heavy falls in overall scores that they dropped out of the top 10 list.

Britain, buoyed by the relative strength of its banking and non-banking financial activities, claimed the Index's top spot from the US, which slipped to third behind Australia due to its poorer financial stability scores and a weakened banking sector.

Australia showed particular strength, a trend echoed in many Asia-Pacific economies, including No. 5 Hong Kong.

In the financial stability section of the Index, Singapore fared well at fifth, compared with Britain at 37th and the US at 38th. Norway and Switzerland took the top two spots, while Hong Kong was third. Some developing countries performed well, with Malaysia, Mexico and Brazil in the top 15.

The report explained that the breadth of factors it covered meant that countries with high financial instability scores such as Britain and the US could still achieve a high relative ranking in the Index due to their other strengths.

The rankings are based on more than 120 factors, including institutional and business environments, financial stability, and the size and depth of capital markets.

How they rank
Financial Development Report rankings for this year. Last year's rankings are indicated in brackets.

1. Britain (2)
2. Australia (11)
3. United States (1)
4. Singapore (10)
5. Hong Kong SAR (8)
6. Canada (5)
7. Switzerland (7)
8. The Netherlands (9)
9. Japan (4)
10. Denmark (NA)

8 Oct 2009 - More tax deductions, exemption for new firms, SMEs

Start-ups and small and medium enterprises (SMEs) can now enjoy more tax deductions and exemption when they make their submissions this year, says the Inland Revenue Authority of Singapore (IRAS).

At a media briefing, tax officials said deductions for capital spending on renovation and refurbishment works are now allowed, while new companies can enjoy tax exemption of up to $200,000 for the first three years of operations - a doubling from $100,000 previously.

'Every year, about 20,000 new companies are incorporated. And we estimate that one in five such new companies qualify for the start-up tax-exemption scheme which was enhanced in 2008,' said assistant commissioner.

To claim for start-up tax exemption, a company must be incorporated and resident in Singapore and have 20 or fewer individual shareholders holding the shares in their own name throughout the basis period for Year of Assessment 2009.

Otherwise, at least one shareholder must be an individual holding at least 10 per cent of the shares of the company.

To defray renovation and refurbishment costs, IRAS said companies can make claims for such costs incurred between Feb 16, 2008 and Feb 15, 2013, subject to $150,000 to be claimed in equal portions over three years.

As for companies in the red, they can now carry back their unutilised trade losses and capital allowances to the previous three years of assessment at a cap of $200,000, up from $100,000 previously.

For more info, please click here.

5 Oct 2009 - More business groups can tap govt scheme

Business associations and chambers can now tap a multimillion-dollar government scheme to help members deal with the challenging times - and to prepare for the upturn ahead.

Trade and Industry Minister Lim Hng Kiang said the Local Enterprise and Association Development (Lead) programme has been extended to cover non-industry specific business organisations.

And in an effort to widen support to firms here, Mr Lim announced that more business groups can now tap Lead.

The initiative, introduced to enhance enterprise growth and industry competitiveness, was originally offered only to industry-based associations. From Feb 1, funding support for eligible expenses was lifted from up to 70 per cent to 80 per cent under the wider $200 million Business Upgrading Initiatives for Long-Term Development (Build) scheme.

From today, non-industry specific bodies such as the Singapore Manufacturers' Federation (SMa) can also use Lead to help members cope with the slowdown. The SMCCI said the funding support from Lead will go a long way towards helping it provide business consultancy services to its members.

Aside from SMCCI and SMa, two more industry organisations - the Franchising and Licensing Association (FLA) and the Singapore Water Association - will also benefit from the programme.

The four new organisations will join 18 other industry groups already embarking on projects, worth about $85 million, aimed at boosting sectoral performance.

About 3,000 firms will be able to benefit from the projects when they are completed.

The projects by the first 18 industry associations are expected to generate about $1.5 billion of value-add to the economy and $3.5 billion in revenue, and possibly create 9,000 new jobs here, said Mr Lim.

Organisations like SMCCI and FLA can receive funding support of up to 80 per cent of project costs if they organise industrywide projects for members.

IE Singapore said overseas expansion has been a consistent theme in the proposals from the 18 associations.

More than 70 per cent of those projects supported by Lead come with internationalisation components. About 1,200 firms have benefited from market access initiatives. These firms participated in more than 150 trade fairs and business missions in the US, Middle East, Europe, China, India and South-east Asia.

1 Oct 2009 - Business loans finally on the rise

In a fresh sign that the Singapore economy is recovering, the amount of bank lending to corporations finally posted an uptick in August after nine straight months of declines.

According to the latest figures from the Monetary Authority of Singapore (MAS), Singapore-dollar business loans in August rose by about 1.1 per cent to $153.5 billion from $151.8 billion in July.

Business loans had plunged from a year-high of $163.2 billion in October last year - a stark pointer to the onset of the slowdown globally as banks crimped lending and many firms, big and small, played it safe with their expansion plans.

The MAS data showed that the rise in business loans was aided by higher contributions from crucial trade-related sectors such as transport, logistics and general commerce.

Firms in these and other sectors routinely tap banks for cash for operational expenses, so the uplift suggests that economic activity is indeed picking up.

Many countries, including Singapore, have emerged from their worst recession in decades.

The easier credit flow is also due to the fact that some foreign banks, which cut lending in the aftermath of the collapse of Lehman Brothers in September last year, are now more willing to dish out loans.

30 Sept 2009 - Singapore and Mexico enhance tax cooperation

Singapore and Mexico signed a protocol to incorporate the new internationally agreed Standard for the exchange of information upon request for tax purposes in their standing Agreement for the avoidance of double taxation (“DTA”).

Mr Ng Wai Choong, Deputy Secretary (Policy), Ministry of Finance, signed the protocol with Mr Jose Antonio Meade Kuribrena, Underminister of Revenue, the Mexican Ministry of Revenue and Public Credit, in Mexico City.

The protocol will be enforced it has been approved by Parliament and gazetted into law, and the ratification procedures have been completed by both countries.

For full text of the protocol, please click here.

29 Sept 2009 - S'pore population to hit 5 million soon

The population of Singapore at the end of June stood at 4.99 million according to the 2009 Population Trends report.

The Department of Statistics report issued, also showed that there were 3.73 million Singapore residents and 1.25 million non—residents. Singapore Residents and Permanent Residents formed 75% of the population, with the resident population growing 2.55% in 2009, from the 3.1% total growth over the previous year.

The statistics compiled through the register—based approach indicated that the number of Singapore citizens grew to 3.20 million. This is as the number of permanent residents rose to 0.53 million, while non—resident numbers eased to a growth of 4.8% compared to 10% seen in earlier years.

The Population Trends report also found that the Singapore population is now older with a median age of 37 years, as the baby boomers of the 1970s move into the 45—64 years age group.

There are also more women in Singapore as the gap widened in 2009, with females outnumbering males by 44,400.

While the number of marriages went up to 24,596, making it the largest number since 2000, it also turned out that more people were marrying late with many still single despite being in their thirties.

However, while more men did marry, more women were widowed, indicating the longer life—span of women.

The fertility rate continued to decline with 1.28 live births per female in 2008 compared to 1.29 a year earlier. Women were also giving birth later, delaying till the age of 30—34 years, with fewer families opting for a third or fourth child.

Households were small, the report found, with a 10% rise in the number of people living alone.

The Population Trends report also concluded that a 2008 new—born Singapore resident could expect to live some 80 years.

28 Sept 2009 - Singapore within touching distance of OECD white list

Singapore has now signed nine of the 12 tax treaties that it needs to get off the 'grey list' of the Organisation for Economic Cooperation and Development (OECD) and onto the white. These treaties are compliant with the internationally-agreed tax standard on exchange of information (EOI).

The speed with which governments worldwide have moved to pass required legislation and sign treaties speaks of the reputational implications that being left on the grey list could have. Already, areas traditionally thought of as tax havens for low or zero tax rate regimes, such as the British Virgin Islands and Cayman Islands, have made the white list.

Though not seen as a traditional tax haven, Singapore is still listed as a 'financial centre' on the grey list of jurisdictions which have committed to the standard but have yet to substantially implement it. Switzerland, which was also on the list, has already signed 12 tax treaties and says that it has been taken off the OECD list. Singapore hopes to take the same path.

Singapore has the advantage of a wide network of double taxation treaties (DTAs) with 60 countries, of which 14 have agreed to, and nine have signed protocols amending treaties in line with the OECD tax standard.

The necessary legislative changes for the signed amendments to take effect are expected to be passed before the end of this year, so that the signed amendments can take effect.

25 Sept 2009 - More Protection For Foreign Workers From January 2010

To offer more protection for foreign workers including maids, the Ministry of Manpower (MOM) has announced changes to their compulsory medical insurance coverage and security bond.

Medical Insurance Coverage

From 1 January 2010, the minimum insurance coverage for S Pass and Work Permit Holders will increase from S$5,000 a year to S$15,000 a year. This is expected to cover up to 98% of foreign worker cases with large hospital bills.

The new requirement applies to new insurance policies taken up on or after 1 January 2010, or current insurance policies renewed on or after 1 January 2010.

Security Bond For Non-Malaysian Workers

From 1 January 2010, revised conditions will apply to Work Permit Holders:

• to address salary arrears, prompt payment of salaries will be included as a security bond condition
• when workers abscond, employers will only lose half the S$5,000 security bond if they have made reasonable efforts to locate the worker
• when workers violate their work permit conditions, e.g. pregnancy or marriage to a Singapore resident, employers will not be penalised

The new requirement applies to workers with new work permits issued on or after 1 January 2010, or existing work permits renewed on or after 1 January 2010.

For more details, please refer to:

Revised Security Bond Conditions for Employers of Non-Malaysian Work Permit Holders Including Foreign Domestic Workers (PDF)
Key Security Bond Conditions That Will Be Removed (PDF)

22 Sept 2009 - S'pore and Qatar sign tax agreement

Singapore and Qatar signed a protocol today that enhances the tax co-operation between both countries.

The enhanced agreement incorporates the new internationally agreed standard for the exchange of information upon request for tax purposes.

The protocol will enter into force after Singapore's legislative amendments have been approved by Parliament and gazetted into law, and the ratification procedures have been completed by both countries.

For full text of the protocol, please click here.

18 Sept 2009 - S'pore, Norway tax protocol

Singapore and Norway signed a protocol amending their standing agreement for the avoidance of double taxation (DTA).

It was signed by Second Permanent Secretary (Finance) Peter Ong and Norway's Ambassador to Singapore Janne Julsrud.

The protocol will be enforced after Parliament has approved the amendments and gazetted them into law, and ratified by both countries.

For full text of the protocol, please click here.

15 Sept 2009 - S'pore, Austria sign tax pact

Singapore and Austria signed a deal amending their standing Agreement for the avoidance of double taxation (DTA).

Second Permanent Secretary (Finance) Peter Ong signed the protocol with Austrian Ambassador to Singapore, Dr Klaus Wolfer, in Singapore.

The protocol will enter into force after it has been approved by Parliament and gazetted into law, and the ratification procedures completed by both countries.

For full text of the protocol, please click here.

15 Sept 2009 – Job market stabilises in Q2

Singapore's job market stabilised in the second quarter, with fewer redundancies and more job openings as the economy emerges from its worst recession.

The overall unemployment rate stood at a seasonally adjusted 3.3 per cent in June, unchanged from the first quarter, according to the latest labour market report released by the Ministry of Manpower.

Among the resident labour force, the seasonally adjusted unemployment rate fell to 4.6 per cent in June, from 4.8 per cent in March as more people deferred job search and pursued courses.

Some 116,300 residents were jobless in June. The seasonally adjusted figure was 91,500, slightly lower than the 95,800 in the previous quarter.

After declining by 6,200 in Q1, total employment fell for the second consecutive quarter in Q2 by 7,700, said the report. Some 5,980 workers were made redundant in Q2, of whom 5,170 were retrenched and 810 were released prematurely from their contracts.

Job vacancies rose by 17 per cent over the quarter to 24,500 in June, but this was still 39 per cent below the 40,100 a year ago.

After adjusting for seasonality, total job vacancies increased by 8 per cent in June from three months ago, after four quarters of decline. Coupled with stabilising unemployment, the ratio of job vacancies to unemployed persons increased slightly over the quarter from a seasonally adjusted 31 to 33 openings per 100 job seekers in June. This was the first increase after five straight quarters of decline, said MOM.

Summing up the second quarter job situation, MOM said: 'The deterioration in the labour market appeared to have stabilised, as significantly fewer workers were made redundant and job openings rose after four quarters of decline.'

'The unemployment rate held steady following five straight quarters of increase, as more people deferred job search and pursued courses. Meanwhile, cost pressures have eased as earnings continued to decline and productivity fell less sharply than before.'

'On the other hand, a record low proportion of workers retrenched secured re-employment and long-term unemployment has worsened, indicating that the labour market was still weak.'

For press release, please click here.

14 Sept 2009 - Govt takes fizz out of nascent property bubble

Singapore’s Ministry for National Development (MND) announced that the Government would take the following measures to ensure a stable and sustainable property market:

a) Reinstating the Confirmed List in 1st Half 2010 GLS Programme

The Government will reinstate the Confirmed List for the GLS Programme in the 1st Half of 2010. While there are still 16 residential sites in the current Reserve List that can be triggered for sale by developers, MND will also replenish the supply when drawing up the 1st Half 2010 Reserve List to meet possible increases in demand. MND will announce the details of the 1st Half 2010 GLS Programme towards the end of the year.

b) Interest Absorption Scheme (IAS) and Interest-Only Housing Loans (IOL)

The Monetary Authority of Singapore will disallow the IAS and IOL with immediate effect from today, i.e. 14 Sep 2009. This measure will apply to all private residential projects. The only exception will be uncompleted private residential projects where the units had already been offered for sale under the IAS before 14 Sep 2009. The IOL will be disallowed with immediate effect.

c) Non-extension of Property-Related Budget 2009 Assistance Measures

A number of measures were announced in Budget 2009 in January this year to help stabilize the property market in response to a property market downturn.

In view of the recent strong demand for private housing and improved conditions in the property market, the measures will not be extended when they expire. The measures are:

i) Allowing one-year extension of project completion period
ii) Allowing re-assignment of Government Land Sale (GLS) sites and private land owned by foreign developers
iii) Giving developers up to four years to dispose of all private residential units in the development
iv) Allowing developers to rent out unsold private residential units for a maximum of four years
v) Allowing up to 2 years of property tax deferral for land under development

The first four measures will expire on 21 Jan 2010, and the last measure on 21 Jan 2011.

For press release from URA, please click here.

10 Sept 2009 - S'pore still the easiest place to do business

Singapore has been ranked as the easiest place to do business in the world for the fourth year in a row.

According to the World Bank's seventh annual Doing Business Report on 183 economies, the Republic pipped New Zealand, Hong Kong and United States to the top place.

The World Bank said Singapore scored highly in:
• simplifying business start-ups by making it possible to incorporate a company and register for taxes by using the same online form
• making it easier to deal with construction permits
• allowing low-risk industries to submit workplace safety and health documents online
• improving the computerised system for property registration

However, Singapore still lags behind in areas such as property registration, which requires 3 procedures and 5 days, and the cost of enforcing contracts.

For more information on economy rankings, please visit the Doing Business - World Bank Group website.

8 Sept 2009 - Singapore and Australia Enhance Tax Cooperation

Singapore and Australia signed a protocol amending their standing Agreement for the avoidance of double taxation (“DTA”).

Singapore's High Commissioner, His Excellency Albert Chua, and Australia's Assistant Treasurer, the Honourable Nick Sherry, signed the protocol in Canberra.

This is the sixth agreement Singapore has signed that incorporates the internationally agreed Standard for the exchange of information upon request for tax purposes.

The protocol will enter into force after Singapore's legislative amendments to give effect to the internationally agreed Standard have been approved by Parliament and gazetted into law, and the ratification procedures have been completed by both countries.

For full text of the protocol, please click here.

26 Aug 2009 - Tax cooperation between Singapore and The Netherlands enhanced

Singapore and the Netherlands signed a protocol amending their standing Convention for the avoidance of double taxation ('DTA').

This was signed at the Hague between Minister for Finance, Mr Tharman Shanmugaratnam, and the Dutch State Secretary for Finance, Mr Jan Kees de Jager.

Both affirmed each countries' commitment to elevate the level of bilateral cooperation in the exchange of information for tax matters. It was also agreed that both countries will re-negotiate the DTA in the near future.

According to the Ministry of Finance, this is the fifth agreement Singapore has signed that incorporates the internationally agreed Standard for the exchange of information upon request for tax purposes. Singapore will continue to renegotiate and update other DTAs, including incorporating the Standard.

For press release, please click here.

25 Aug 2009 - Singapore and Denmark sign tax deal

Singapore and Denmark signed an agreement to enhance cooperation in exchange of information for tax matters.

The pact was inked in Singapore by Commissioner of Inland RevenueMoses Lee, and Denmark's Ambassador to Singapore Vibeke Rovsing Lauritzen.

This is the fourth agreement Singapore has signed to incorporate the new internationally agreed Standard for the exchange of information upon request for tax purposes.

Earlier this year, Singapore endorsed the new internationally agreed Standard for the exchange of information for tax purposes. Since then, the Finance Ministry has been negotiating existing DTAs and new agreements with numerous jurisdictions, including OECD countries, on the basis of ensuring a mutual balance of benefits.

For press release, please click here.

24 Aug 2009 - Singapore, UK sign info pact

The Government of the Republic of Singapore and the Government of the United Kingdom (“UK”) of Great Britain and Northern Ireland signed a protocol amending the Agreement for the avoidance of double taxation (“DTA”).

The protocol marks the third agreement Singapore has signed that incorporates the new internationally agreed Standard for the exchange of information upon request for tax purposes, as part of the comprehensive renegotiation of the Singapore-UK DTA.

The signing took place in Singapore between Minister for Finance, Mr Tharman Shanmugaratnam, and the UK’s Financial Secretary to the Treasury, Rt Hon Stephen Timms MP.

Minister Tharman said that “Singapore has a long-standing and close relationship with the UK. We are pleased to further strengthen our relationship with the signing of this protocol to incorporate the new international Standard into our DTA with each other, and that the UK is amongst the first of several jurisdictions with which Singapore will be doing so.”

Affirming the significance of this agreement, Financial Secretary Rt Hon. Stephen Timms MP said: “Britain is the largest foreign investor in Singapore and 80% of Singapore’s investments in the European Union go into the UK. So I warmly welcome Singapore's decision to adopt the OECD Standard for the Exchange of Information for tax purposes. Singapore's firm commitment to transparency and exchange of information is very encouraging, and I call on others to follow their example.”

In March 2009, Singapore endorsed the new internationally agreed Standard for the exchange of information for tax purposes. Since then, we have been renegotiating existing DTAs and negotiating new DTAs with numerous jurisdictions (including OECD countries) on the basis of ensuring a mutual balance of benefits. Several of these have progressed sufficiently with the agreements already initialled and expected to be formally signed within the next few months.

For press release, please click here.

21 Aug 2009 - No change to tax rules

THE Government has decided not to press ahead with a proposed change to the income tax laws to make it clearer to property sellers when they will be taxed on their profits.

This came after 60 of the 64 comments received on the proposed change gave it the thumbs down.

Under the proposal, an individual who sells a property would be certain that profit from the sale would not be subject to tax if he had not sold any other property in the preceding four years.

But instead of reacting positively, investors viewed it as a back-door attempt to impose a capital gains tax or a pre-emptive strike against property speculators.

This prompted the Finance Ministry to clarify that the proposed change involved no tightening of the current income tax treatment for individuals who sell their properties. It had also noted that over the years, only a small number of individuals - those who regularly buy and sell properties - had been taxed on their gains from such transactions.

In a statement, the Finance Ministry noted that it had received salient feedback which led to its decision not to press ahead with the proposed change. It had also considered alternatives to give certainties of non-taxation to individuals who sell their properties but noted that these brought 'drawbacks and complexities of their own'.

This might lead to 'inadvertent uncertainty' for individuals who sell more than one property within any four years, even though there is no change to the current income tax treatment for such cases.

For press release, please click here.

21 Aug 2009 - Singapore and New Zealand sign Avoidance of Double Taxation Agreement

The Government of the Republic of Singapore and the Government of New Zealand signed an Agreement for the avoidance of double taxation ("DTA").

The Agreement incorporates the new internationally agreed Standard for the exchange of information. This is the second agreement Singapore has signed that incorporates the Standard.

In March 2009, Singapore endorsed the new internationally agreed Standard for exchange of information which will enhance bilateral cooperation in information exchange upon request for tax matters.

Since then, we have been renegotiating existing DTAs and negotiating new DTAs with numerous jurisdictions, including OECD countries.

Several of these have progressed sufficiently with the agreements expected to be formally signed within the next few months, with some of these already initialled before formal signature.

The revised DTA between Singapore and New Zealand will also minimise the double taxation of income that may occur as a result of cross-border economic activities between both countries, thus promoting bilateral trade and investment. Other key changes under the revised DTA include the following:

- Lower withholding tax rates for dividends, interest and royalties, which are 15% under the existing DTA. The new withholding tax rates for interest and royalties are 10% and 5% respectively, while the withholding tax rates for dividends are 5% or 15%, depending on the shareholding structure; and

- Change to the definition of a Permanent Establishment to incorporate a building site, a construction, installation or assembly project if it lasts more than 12 months, instead of six months in the existing DTA.

The DTA will enter into force after its ratification by both countries.

For press release, please click here.

19 Aug 2009 - 'More rigour needed'

While the audit controls and standards of listed companies in Singapore have been found to be largely acceptable, further improvements are needed to address gaps in four key areas.

The Accounting and Corporate Regulatory Authority (Acra), in its annual report released, said there is a need to strengthen involvement by experienced auditors and greater rigour in the conduct of audits.

It also called for more diligent and rigorous approach to tests for existence of assets and liabilities accounts, and more effective internal monitoring programmes.

In its review, Acra also highlighted the challenges faced by small audit firms that work with non-PIE (Public Interest Entities) in terms of devoting adequate time and resources to ensuring a high quality audit, since the bulk of these firms are tend to be one-partner set-ups, often staffed by very junior officers and operate on a high volume/low fee practice model.

Public Interest Entities (PIEs), which include firms listed on the SGX or intending to list on the SGX and companies in regulated industries such as banks, insurance firms and charities, also faced recurring gaps in their audit procedures, noted Acra.

Besides the need for more a more dilgient and rigorous approach to audit, Acra called for greater involvement by experience auditors and greater 'professional scepticism' during audits.

For press release, please click here.

16 Aug 2009 – ASEAN, China sign investment agreement to boost trade

ASEAN and China signed an investment agreement, completing negotiations for an ASEAN—China Free Trade Area (ACFTA).

The agreement was signed at the 41st ASEAN Economic Ministers Meeting in Bangkok. The pact, which will take effect from January next year, aims to boost two—way investment by as much as 60 per cent over the next two years.

This will facilitate ASEAN’s goal of creating a regional economic community by 2015.

Singapore’s Trade and Industry Minister Lim Hng Kiang hailed the signing as a significant achievement.

"With the establishment of the ACFTA, ASEAN member states and China demonstrate their commitment and resolve to maintain free and open trade and investment flows, and to grow ASEAN—China economic relations even further and faster," said Mr Lim.

China is currently ASEAN’s fourth largest trading and investment partner. The new free trade area effectively covers over 1.9 billion people with a combined GDP of almost US$6 trillion.

13 Aug 2009 - The ASEAN-India Trade in Goods Agreement signed by ASEAN and India

The ASEAN-India Trade in Goods Agreement (TIG) was signed by Economic Ministers of ASEAN and India at the 12th ASEAN-India Consultations in Bangkok, Thailand. The TIG Agreement forms the first substantive pillar of the ASEAN-India Free Trade Area (AIFTA) arising from the Framework Agreement (FA) on Comprehensive Economic Agreement for the AIFTA signed in 2003. Under the FA, an AIFTA would be realised with Brunei, Indonesia, Malaysia, Singapore, Thailand and India by 31 December 2012 and with the remaining ASEAN countries by 31 December 2017.

The TIG agreement will come into force on 1 January 2010.

The Agreement covers 90% of the tariff lines of the approximately 5,000 items traded between ASEAN and India and these products will qualify for concessions if they meet the rule of origin of 35% plus Change in Tariff Subheading (CTSH).

India is currently ASEAN’s 7th largest trading partner. In 2008, bilateral trade reached US$47.4 billion which constituted 2.8% of total trade with ASEAN. The Leaders have set a target of US$50 billion by 2010.

Moving forward, ASEAN and India will proceed on negotiations for services and investments to serve a single market of 1.7 billion people.

For press release, please click here.

13 Aug 2009 - 9 suggestions on GST bill to be incorporated

The Ministry of Finance (MOF) has accepted for implementation nine out of the 16 suggestions received on the draft Goods and Services Tax (Amendment) Bill 2009 during the public consultation exercise held in June.

The draft amendment Bill contains proposed legislation to put into effect tax changes announced in this year's Budget, as well as other changes arising from the periodic review of the GST system, said MOF in a statement:

The tax changes include zero-rating treatment for all aircrafts used wholly for international travel, as well as the sale and lease of aircraft parts forming part of a qualifying aircraft;

GST suspension for goods temporarily removed from zero-GST or Licensed Warehouses for auctions and exhibitions.

Extension of the current GST treatment for physical vouchers to all forms of vouchers and requirement for taxpayers to state their grounds of objection when applying for a review or revision of a decision made by the Comptroller of GST.

The other seven suggestions were not accepted for implementation as they were inconsistent with drafting convention for legislation or policy objectives of the tax changes, said the ministry.

The summary table lists all the tax changes and explains the amendments to the Goods and Services Tax Act.

For more information on the changes, please click here.

11 Aug 2009 - S'pore GDP jumps 20.7%

Singapore's economy expanded by a seasonally adjusted 20.7 per cent in second quarter, underpinned by strong gains in the manufacturing sector.

This represents a significant improvement from the 12.2 per cent contraction in the first quarter, said the Ministry of Trade and Industry in a statement.

Compared to a year ago, GDP contracted by 3.5 per cent in the second quarter. As a result, the Singapore economy contracted by 6.5 per cent in the first half of the year.

Manufacturing output increased by 49.5 per cent, compared to the previous quarter's contraction of 18.5 per cent. This was largely due to a surge in the production of active pharmaceutical ingredients in the biomedical manufacturing cluster and an increase in inventory restocking in the electronics sector.

Momentum in the construction sector also picked up strongly after a moderation in the first quarter. The sector grew by 32.7 per cent compared to the first quarter, driven by the growth in both public and private construction activities.

Financial services also improved in the second quarter, growing by 22.8 per cent compared to earlier three months, giving a lift to the services producing industries as a whole, which grew by 8.7 per cent, compared to the 9.8 per cent decline in the previous quarter. Except for the hotels and restaurants sector, the other services producing industries saw modest gains compared to the previous quarter.

On the outlook for the rest of the year, MTI said: 'The improved performance in the second quarter is in line with the advance estimates released on July 14.

'However, this improvement was largely driven by the spike in output from the volatile biomedical manufacturing cluster and inventory re-stocking. Financial services were boosted by sentiment-sensitive segments such as stock market activities.

MTI said in recent weeks, several forward-looking and sentiment-sensitive indicators have started to turn positive. In the US, the ISM Purchasing Managers Index (PMI) and the Composite Leading Indicators (CLI) have improved noticeably.

'However, there have been few signs of a decisive turnaround in final demand in Singapore's key export markets,' it cautioned.

'Without a turnaround in these demand-led indicators, any economic recovery in the second half of the year will probably be sluggish and modest,' said MTI.

'Taking into account these factors, MTI is maintaining the economic growth forecast for 2009 at -6.0 to -4.0 per cent.'

For press release on the performance of the singapore economy for 2nd Qtr 2009, please click here.

4 Aug 2009 - Sectors on audit focus

The taxman has broken with convention and publicly named the sectors it is focusing its auditing on this year.

The Inland Revenue Authority of Singapore (IRAS) usually keeps this information to itself but this year it hopes to encourage voluntary compliance with tax laws.

It changes its audit focus every two years, targeting a cross-section of industries and businesses. This year's audit is already underway and is expected to be completed by the end of next year.

The sectors that are under the microscope are wholesale electronics traders, small and medium-sized enterprise (SME) manufacturers, motor traders and marine fuel traders.

Statistics on the percentage of errant businesses in each sector are not kept but these four were chosen based on past experience and the sector-specific 'technicalities involved' in accounting for the goods and services tax (GST), said Mrs Chia-Tern Huey Min, the deputy commissioner of GST and property at IRAS.

Singapore has more than 5,000 electronics wholesalers, and wholesale and retail made up 40 per cent of IRAS' GST base in 2007.

SME manufacturers can mistakenly 'zero-rate' some goods and not pay GST on them, while motor traders tend to get confused over what tax rules apply to used cars.

Mrs Chia-Tern said it will be the first time that marine fuel traders will undergo an audit. IRAS will check the compliance level of the 30 firms in the Approved Marine Fuel Trader scheme.

She added that IRAS has reduced the penalty for companies that voluntarily disclose tax accounting errors. It will also conduct dialogue sessions and organise seminars and other educational programmes.

4 Aug 2009 - Steepest fall in office occupancy cost here

A plunge in Grade A office rents has raised Singapore’s competitive edge somewhat. According to Colliers International, office occupancy costs here were the fourth-highest among 26 Asia-Pacific cities in Q2 this year – down a notch from a quarter ago.

As rents stay weak while the economy stabilises, property consultants also expect some companies to take advantage of the situation to expand.

Monthly gross rents for Grade A offices in Singapore’s central business district (CBD) posted the sharpest fall in Q2, compared with other major cities in the region. Rents slid 26.2 per cent quarter-on-quarter, averaging at $6.73 psf per month in Q2.

As a result, Singapore fell from third to fourth place in a ranking of office occupancy costs. Tokyo remained the most expensive place in the Asia-Pacific to rent an office – average Grade A CBD office rents there were 2.2 times that of Singapore’s, up from 1.6 times in Q1.

Hong Kong also kept its No. 2 spot. Average Grade A CBD office rents there were 1.4 times that of Singapore’s, growing from 1.2 times in Q1. Ho Chi Minh City rose one notch to replace Singapore in third place on the list.

Office rents in Singapore are expected to continue falling up till H1 next year, albeit at a slower pace. This is because demand from most companies is likely to stay subdued, while supply of shadow space could increase.

This means that Singapore could continue slipping in the list of the most expensive Asia-Pacific cities to rent an office.

31 Jul 09 - Total employment down in Q2 2009

Total employment contracted by 12,400 in the second quarter of 2009, according to preliminary estimates.

This doubles the losses in the first quarter (-6,200). This is the first time that employment has contracted for two consecutive quarters since the 2003 economic downturn.

Manufacturing bore the brunt of job losses, with a decrease of 17,600.

Construction increased its workforce (3,400) but the gains were lower than in earlier quarters (8,300 in 1Q 2009 and 22,400 in 2Q 2008). Services added 2,100 workers, also showing lower gains than before (7,500 in 1Q 2009 and 38,300 in 2Q 2008).

Retrenchment and redundancy

According to preliminary estimates released by the Ministry of Manpower, 4,800 workers were retrenched and 700 contracts were terminated prematurely, resulting in a total of 5,500 workers made redundant in the second quarter of 2009.

This shows a sharp drop from first quarter figures of 12,760 redundancies. In the first quarter of 2009, 10,900 workers were retrenched and 1,860 workers had contracts terminated prematurely.

Unemployment

Overall unemployment rate stabilised at a seasonally adjusted 3.3% in June 2009, unchanged from a quarter ago.

Among the resident labour force, the seasonally adjusted unemployment rate declined from 4.8% in March 2009 to 4.6% in June 2009.

More people are deferring job searches and pursuing courses, including those supported under SPUR, in light of the difficult job market conditions.

On a non-seasonally adjusted basis, the overall unemployment rate rose from 3.0% in March 2009 to 4.2% in June 2009.

Among the resident labour force, the non-adjusted unemployment rate was 6.0% in June 2009, higher than the 4.4% in the previous quarter. This reflects the increase in job seekers as tertiary graduates entered the labour market and students sought employment during the mid-year school vacation.

An estimated 116,600 residents were unemployed in June 2009. The seasonally adjusted figure was 91,800.

For MOM release, please click here.

30 Jul 2009 - Employers to make CPF Contributions by 14 August 2009 for 3rd Payment of Jobs Credit

The Government will be making the third Payment of Jobs Credit on 30 September 2009. The amount that employers will receive for this payment will be computed based on employees on the CPF payroll for the month of July 2009, and the wages paid to these employees from April to June 2009.

The CPF contribution deadline for wages paid in the month of July 2009 is 14 August 2009. There will be no extension of the deadline. Employers are advised to make CPF payments by 14 August 2009 in order to qualify for the Third Payment of Jobs Credit. The Government takes a serious view of employers who make late contributions for their employees.

More than $1.8 billion of Jobs Credit have already been paid to employers in March and June 2009. Following the September 2009 Payment, the last Payment of Jobs Credit will be made in December 2009.

For more information on the Jobs Credit, please click here.

24 Jul 2009 - Private home prices dip 4.7%

SINGAPORE private home prices fell 4.7 per cent in the second quarter, less than the preliminary 5.9 per cent drop estimated earlier, in signs that the recession is easing.

The price index of private residential property declined to 133.3 from 139.9 in the previous three months, the Urban Redevelopment Authority (URA) said. This is the 4th straight quarter decline but it is less than the 14.1 per cent sharp drop in the first quarter.

Bucking the trend, Housing Board resale flat prices rose by 1.4 per cent in the same quarter, after a marginal drop of 0.8 per cent in the previous three months.

URA said prices of apartments fell by 4.9 per cent, while prices of condominiums fell by 4.5 per cent Prices of non-landed properties in Core Central Region (CCR) fell by 5.2 per cent in the second quarter, while and prices of non-landed properties in Rest of Central Region (RCR) and Outside Central Region (OCR) fell by 4.4 per cent and 2.3 per cent respectively.

Prices of landed properties fell by 4.7 per cent, compared with the 9.2 per cent drop in the previous quarter. Prices of detached, semi-detached and terrace houses fell by 6 per cent, 3.6 per cent and 3.9 per cent respectively.

A total of 3,869 uncompleted private residential units were launched for sale by developers in the second quarter, compared with 2,108 units in the earlier quarter. Of these, 1,134 units were in CCR, 1,426 units were in RCR, and 1,309 units were in OCR.

The total number of sub-sales was 940 in Q2, compared to 412 in the previous quarter. URA said the vacancy rate of completed private residential units remained at 5.9 per cent as at the end the second quarter.

Prices of private office, shop and industrial properties also fell by 3.9 per cent, 1.4 per cent and 4.5 per cent in Q2.

Private home sales in Singapore have soared since the start of February, reaching a record high of 1,825 units in June, while home loans were up 8.8 percent year-on-year in May, the latest month for which data is available.

For URA press release of Q2 2009 real estate statistics , please click here.

23 Jul 2009 - June inflation dips 0.5%

Singapore's inflation fell by 0.5 per cent in June over May due mainly to lower costs of housing, and clothing and footwear.

Compared with a year ago, the consumer price index for June was also lower by 0.5 per cent, but for the first six months, it was 0.8 per cent higher than the same period last year.

Housing cost dropped by 3.1 per cent in June due mainly to lower service and conservancy charges as rebates were given out during the month. Prices of clothing and footwear went down by 2.2 per cent because of cheaper ready-made garments and footwear during the Great Singapore Sale period.

Excluding housing, the CPI rose by 0.2 per cent, said the Department of Statistics. On a seasonally adjusted basis, June inflation was 0.2 per cent than May.

Compared to a year ago, the CPI fell by by 0.5 per cent due primarily to lower costs of transport and communication, housing, recreation and others. As a result of cheaper petrol, as well as lower car prices and road tax, costs of transport and communication declined by 4.7 per cent.

Housing cost dipped by 0.7 per cent reflecting mainly lower electricity tariff. Excluding accommodation costs, the consumer price index slipped by 1.4 per cent in June, from a year ago.

For press release, please click here.

22 Jul 2009 - Peru-S'pore FTA in Aug

A FREE trade agreement between Peru and Singapore will take effect on Aug 1, the first pact between the resource-rich Latin American nation and Asia, Peruvian Trade & Tourism Minister Martin Perez said.

As talks on a global trade pact has stalled, Mr Perez said Peru would move on with bilateral discussions, hoping to integrate those bilateral free trade pacts in the future.

'Pluralateral conversation takes a long time and very generic so we think bilateral agreements can go forward easier and faster,' Mr Perez told Reuters on the sidelines of the Asia Pacific Economic Cooperation ministerial meeting in Singapore.

Singapore's trade ministry confirmed the expected start date and said trade with Peru in 2008 was valued at $75.2 million.

Peru has completed trade pacts with Chile and United States and it is seeking deals with China, South Korea, Thailand, Australia and New Zealand.

16 Jul 2009 - Signing of a Protocol Amending the Agreement between Singapore and Belgium for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income

The Government of the Republic of Singapore and the Government of the Kingdom of Belgium signed a protocol amending the Agreement for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income (“DTA”). The terms of the protocol, which incorporate the new internationally agreed Standard on Exchange of Information, will permit Belgium and Singapore to enhance their cooperation on the exchange of information for tax matters upon request. This includes information that may be held by a bank or trust company, regardless whether the information relates to a domestic tax matter at hand.

The signing took place in Brussels between His Excellency Mr Anil Kumar Nayar, Ambassador of Singapore to Belgium, and the Deputy Prime Minister and Minister of Finance of Belgium, Mr Didier Reynders.

The existing Singapore-Belgium DTA was signed on 6 November 2006 and came into force on 27 November 2008. The protocol amends Article 25 (Exchange of Information) in the Agreement to incorporate the internationally agreed Standard for the exchange of information for tax purposes. This follows Singapore’s endorsement of the internationally agreed Standard for exchange of information on 6 March this year. Discussions are on-going with other countries to conclude or update DTAs which incorporate the Standard, subject to mutual balance of benefits. The protocol with Belgium is the first of such agreements.

The full text of the protocol is on the Inland Revenue Authority of Singapore’s (IRAS) website at http://www.iras.gov.sg. The protocol will enter into force after Singapore’s legislative amendments to give effect to the internationally agreed Standard have been approved by Parliament and gazetted into law, and the ratification procedures have been completed by both countries.

For press release, please click here.

14 Jul 09 - S'pore out of recession

Singapore roared out of recession with growth of 20.4 per cent in the second quarter over the previous quarter, marking the first expansion in a year and prompting the Government to raise its 2009 growth forecast.

The flash estimates, which are based mainly on April and May numbers, showed growth in the construction sector and a sharp improvement in manufacturing, thanks to the drugs cluster.

The Government also revised its 2009 growth forecast upwards after three downgrades.

The Ministry of Trade and Industry (MTI) now expects the economy to contract by 4 to 6 per cent instead of the 6 to 9 per cent decline predicted in April, thanks to the 'less severe contraction' in the first half of the year.

However, it is sticking to its outlook for the rest of the year - a weak recovery that will be at risk from more bad news.

The flash estimates were clearly the headline grabber on Tuesday. They showed that the economy surged 20.4 per cent compared with the first quarter - a far better figure than the experts had tipped and the first positive quarter after four consecutive quarters of contraction.

However, the economy was still down 3.7 per cent compared with the same period last year, its third straight year-on-year period of slump but again better then market expectations.

The brighter figures also mean Singapore is the first Asian economy out of a technical recession, defined as at least two consecutive quarters of contraction.

Tuesday's avalanche of numbers also sparked more optimism of a second quarter recovery across Asia, as Singapore is the first key economy in the region to report second quarter growth numbers.

For press release on Advance GDP Estimates for 2nd Quarter 2009, please click here.

13 Jul 2009 – Singapore and France to Sign Protocol on Exchange of Information Under Bilateral Avoidance of Double Taxation Agreement (DTA) by Summer 2009

Minister for Finance of Singapore, Mr Tharman Shanmugaratnam, and Minister for the Budget, Public Accounts, Civil Service and State Reform of France, Mr Eric Woerth met in Singapore. To enhance tax cooperation, both Ministers agreed that Singapore and France will work expeditiously to sign a Protocol to incorporate the internationally agreed Standard for the exchange of information for tax purposes in the existing bilateral DTA between the two countries later this year.

Singapore has previously indicated its commitment to the new Standard, and aims to amend its legislation to allow it to cooperate with other countries in accordance with the Standard.

Minister Tharman and Minister Woerth agreed that a multilateral, transparent and impartial framework would be necessary to drive and monitor the implementation of the agreed Standard for the exchange of information for tax purposes by all jurisdictions, whether onshore or offshore.

Minister Tharman and Minister Woerth also exchanged views on regional economic developments in Asia and Europe amidst the current global economic downturn.

Minister Woerth expressed interest in Singapore's e-government policies and initiatives, and made visits to the Supreme Court (e-Justice system) and PSA (TradeExchange system) as part of his visit.

For press release, please click here.

8 Jul 09 - S'pore, HK most trade-friendly

Singapore and Hong Kong are the two most trade-conducive economies, the World Economic Forum said in a study that placed the United States in 16th place, its performance affected by fears of crime and terrorism.

The WEF said in its Global Enabling Trade Report that Singapore and Hong Kong, in addition to offering a trade-friendly business environment, "are endowed with well-developed transport and telecommunications infrastructures ensuring rapid transit to final destinations."

The report, published for the second time and covering 121 economies, assesses institutions, policies and services that facilitate the flow of goods across national borders.

The top 10 economies on the WEF's Enabling Trade Index after Singapore and Hong Kong are Switzerland, Denmark, Sweden, Canada, Norway, Finland, Austria and the Netherlands.

Japan, in 23rd place, also scores well for its transportation services but suffers from "high barriers to market access in domestic and foreign markets, as reflected in the high tariffs on agricultural products and the complexity of tariffs, as well as barriers faced when exporting to foreign markets."

In China, ranked 49th, "imports are still significantly inhibited by tariff barriers," the report found. China could also do with improvements in its air transport network and regulatory environment.

The Geneva-based World Economic Forum is an independent international organisation to promote research and dialogue among business and government leaders.

It organises an annual meeting in the Swiss ski resort of Davos which draws business and political leaders.

7 Jul 09 - Slide in office rents continues

LANDLORDS took a one-two punch in the second quarter, with rents continuing to decline for offices and industrial space as vacancies kept rising. Rents were under the most pressure in the city-fringe and high-tech sites while more space was vacated, particularly in the core Central Business District (CBD) area.

The decline was driven mainly by competition from a converted state property and high-tech industrial sites in the area.

Generally, rents in the office market have been falling as demand weakens in the face of rising supply. The amount of grade A space, in particular, will double in the next five years.

CBRE said monthly prime office rents fell about 18 per cent to $8.60 psf in the second quarter, after a 18.6 per cent quarter-on-quarter drop in the first quarter. Grade A office rents are down 17.5 per cent to $10.l5 psf a month. They also fell 18 per cent in the first quarter.

The rental gap between office space in the CBD and that elsewhere has narrowed. Offices in Marina Centre are now 12 per cent cheaper to rent than those of prime space in Raffles Place, compared with a rental gap of 18 per cent at the peak of the market. The gap has closed even more in the Harbourfront area - from 47 per cent at the peak to 35 per cent in the second quarter.

Some firms, particularly those driven to relocate outside the CBD during the 2006-2007 boom, are now likely to return, said DTZ.

Office leasing activity continues to be driven mainly by lease renewals as firms downsize. Take-up has been negative for the past two quarters and is likely to remain so for the rest of the year, said CBRE's executive director (office services), Mr Moray Armstrong. 'We are seeing greater incentives including, for instance, capital expenditure contributions to attract or retain quality tenants,' he said.

The good news is that the rate of rental decline will ease from the dramatic falls seen since last September but demand will still be 'severely constrained'.

2 Jul 2009 - A softer slide in private home prices in Q2

Singapore's private home prices fell for a fourth straight quarter in Q2 2009 - but the marked slowdown in the rate of decline shows that the residential market here is recovering.

The private residential price index fell 5.9 per cent in the second quarter, according to flash estimates from the Urban Redevelopment Authority (URA). By contrast, the index fell 14.1 per cent in Q1. The continuing fall in the index caught many analysts by surprise, as anecdotal evidence showed that private home prices started climbing again in the second quarter.

A URA spokesman said that while some developers had started raising prices recently, the extent of price increase quarter-on-quarter was small and pertained to selected projects. 'On the other hand, more projects had seen a fall in prices over Q2 2009,' said the spokesman. 'Hence, overall prices in Q2 2009 as reflected by the flash index fell in comparison with Q1 2009.'

The revised index (which will be out on July 24) will capture caveats beyond the first 10 weeks of the quarter.

Meanwhile, the slower pace of decline for private home prices was seen across the whole island.

In Q2, prices of non-landed private residential properties decreased 6.6 per cent in the core central region (which includes the prime districts, financial district and Sentosa Cove), 6.3 per cent in the rest of central region, and 2.6 per cent in the outside central region (which is a proxy for suburban mass-market locations).

In comparison, in Q1 2009, prices fell 16.2 per cent in the core central region, 17 per cent in the rest of central region and 7.3 per cent in the outside central region.

The improved sentiment was also evident in the resale prices of Housing and Development Board (HDB) flats. The HDB resale price index, which fell for the first time in Q1 2009 after nine straight quarters of growth, also recovered somewhat to climb 1.2 per cent in Q2. The resale price index fell 0.8 per cent in the first quarter.

Buyers are returning to the HDB market because sellers have become more realistic about asking prices - especially those selling five-room and executive flats, analysts said. Rather than holding out for higher cash-over-valuation (COV) amounts, most are now willing to sell at valuation or with a slight COV.

Analysts expect the property market recovery to continue - but cautioned against over-exuberance. The analysts see the likelihood of a W-shaped recovery in asset prices, rather than their previous expectations of a U-shaped recovery.

For URA’s press release on private residential price index, please click here.

23 Jun 2009 - CPI rises 0.8% in May on higher housing, transport costs

Singapore's May consumer price index rose a seasonally adjusted 0.8 per cent from April, due mainly to higher costs of housing and transport & communication.

Housing cost rose 2.9 per cent due to higher service and conservancy charges (S&CC), as rebates were given in April 2009 but not in May 2009.

Excluding accommodation costs, the CPI remained unchanged at previous month's level. Costs of transport and communication increased by 1.1 per cent on account of higher prices of cars and dearer petrol.

On-year, the CPI in May dropped 0.3 per cent, largely due to lower costs of transport and communication, education and stationery, and "recreation and others".

Transport and communication costs slid by some six per cent as a result of cheaper petrol, and lower car prices and road tax.

The CPI for the period January-May 2009 was 1.1 per cent higher on-year. Excluding accommodation costs, the CPI fell marginally by 0.1 per cent during the same period.

For press release, please click here.

22 Jun 2009 - Public Consultation on Changes to The Income Tax Act

The Ministry of Finance will be conducting a public consultation on the draft Income Tax (Amendment) Bill 2009. This exercise will run from 22 June to 14 July 2009.

Proposed amendments

The proposed amendments to the Income Tax Act (ITA) are principally to cater for the tax changes announced in Budget 2009. The key changes include:

- Cut in the corporate income tax rate from 18% to 17% with effect from Year of Assessment (YA) 2010

- Resilience Package Tax Changes, which include:
i. accelerated capital allowances for plant and machinery in the basis periods for YA 2010 and 2011
ii. enhanced loss carryback in the basis periods for YA 2009 and YA 2010, and
iii. tax exemption on all foreign-sourced income that is remitted into Singapore during the period of 22 January 2009 to 21 January 2010 (both dates inclusive)

- New Tax framework for facilitating corporate amalgamations taking place on or after 22 January 2009

- Enhancements to incentives for promoting fund management in Singapore, for the period of 1 April 2009 to 31 March 2014 (both dates inclusive).

In addition to the tax changes announced in Budget 2009, the amendments also provide for refinements to existing tax policies and tax administration arising from on-going reviews of our tax system. These refinements include the following:

- Provision to disregard, for tax purposes, certain gains and losses arising from disposal of real properties

- Provision for the 'arm's length principle' with regard to transactions between related parties. For the avoidance of doubt, Comptroller of Income Tax may make adjustments to taxable profits where in his opinion, a transaction between related parties has been made on terms which differ from those which would be made between independent persons

- Removal of Commonwealth Tax Relief. This is part of our rationalization of the relief for alleviating double taxation for tax residents, following the recent extension of Unilateral Tax Credit for all foreign-sourced income in Budget 2008.

Consultation Details

The consultation guidelines, draft Income Tax (Amendment) Bill 2009 and explanations for the amendments can be found in the Government's central consultation portal (www.reach.gov.sg) as well as the Ministry of Finance website at (www.mof.gov.sg/consultation_current/index.html ). Respondents may send their comments to the Ministry of Finance directly via the website, email, fax or post.

16 Jun 2009 - Q1 job market dismal

The latest quarterly labour market data paint a picture as dismal as when Sars hit Singapore six years ago.

In the first three months of this year, there was a net loss of 6,200 jobs - far worse than the 1,000 estimated at end-April by the Ministry of Manpower (MOM).

Earnings also fell, unemployment rose and people took a longer time to get another job, said MOM when it released the finalised job market figures for the January to March period.

But the bleak picture came as no surprise to analysts, who pointed to the record 10.1 per cent contraction of the economy in the first quarter.

Because of that contraction, the economy lost more jobs than it created for the first time since the April-June quarter in 2003, when the economy ground to a halt due to the deadly and infectious respiratory disease Sars.

In the first three months of this year, a total of 12,760 workers were laid off, a 36 per cent rise from the last three months of 2008. This included the early termination of employment contracts.

On top of that, the number of job vacancies fell to 21,000, a 20 per cent decline from the previous quarter.

The result was an unemployment rate of 4.8 per cent for residents in March. This translates to 95,700 unemployed Singaporeans and permanent residents, one-third more than the 71,800 in December.

Unemployment among the total population, foreigners included, was 3.3 per cent, compared to 2.5 per cent in December last year.

For press release, please click here.

11 June 2009 - Singapore Economy May Shrink 6.5% In 2009

Singapore's economy is expected to shrink 6.5% this year, lower than the 4.9% predicted in March. However this is still within the Government's forecast of a 6% - 9% contraction.

The downgrade comes on the back of lower projections for the manufacturing, wholesale and retail trade, financial services, and hotels and restaurants sectors. Only construction is expected to post growth of 15.9%.

However, economists polled by the Monetary Authority of Singapore (MAS) expect the rate of contraction to slow in the coming quarters, with -6.6% growth in Q3 and -1.2% in Q4.

This is expected to drive Singapore to a sharp recovery in 2010 with 4.2% growth, compared to the 3.3% forecasted in March.

For Recent Economic Developments in Singapore, please click here.

8 Jun 2009 - Most liveable city in SEA

Singapore is the most liveable place in South-east Asia, according to survey of 140 countries. Singapore is the 54th most liveable city in the world, below San Francisco (US), and a notch above Budapest (Hungary). Its placing also puts it above cities like Seoul (58th) and Taipei (62nd), but below Hong Kong (39th), Osaka (13th) and Tokyo (19th).

Singapore's placing also makes it the 11th most liveable city in Asia, including cities in Australia and New Zealand.

Vancouver remains top of the league table, benefiting from strong Canadian infrastructure and Harare sits at the bottom thanks to the unfolding crisis in Zimbabwe.

The results are according to the latest Economist Intelligence Unit global liveability survey, which has put cities in Australia, New Zealand and Japan close to the top of the ranking of 140 cities.

At the other end of the ranking, most of the poorest-performing locations are in Africa or Asia. Dhaka in Bangladesh is the lowest-scoring city in the region in joint 138th, just one place above last-place Harare.

Asia accounts for eight cities out of the top 20 (although these are found in just three countries: Australia, New Zealand and Japan) and ten cities out of the bottom 20.

3 Jun 2009 - MOF invites the public to give comments on changes to the Goods and Services Tax (GST) Act

The Ministry of Finance (MOF) will be conducting public consultations on the draft GST (Amendment) Bill 2009. This exercise will run from 3 to 24 Jun 2009.

The draft GST (Amendment) Bill 2009 incorporates the following tax changes:

a) Budget 2009 tax changes – These are tax changes announced during the 2009 Budget Statement.

• Zero-rating treatment will be extended to all aircrafts used wholly for international travel as well as the sale and lease of aircraft parts forming part of a qualifying aircraft; and

• GST will be suspended on goods temporarily removed from Zero-GST or Licensed warehouses for auctions and exhibitions.

b) Other tax changes - These are the refinements to existing tax policies and administration resulting from on-going reviews of the tax system.

• Registration of a trust will be in the name of the trust to ease GST administration for trusts;

• The current GST treatment for physical vouchers will be extended to all forms of vouchers including electronic vouchers such that GST is accounted only at the point where these vouchers are redeemed for goods or services. This will ease GST compliance for taxpayers; and

• Taxpayers will be required to state their grounds of objection when applying for a review or revision of a decision made by the Comptroller of GST. This is in line with requirements under Income Tax Act and Property Tax Act, and will facilitate the Comptroller's expeditious review of taxpayers' applications.

For press release, please click here.

1 June 2009 - ACRA issues Enhanced Code of Professional Conduct and Ethics for Public Accountants

From 1 August 2009 Singapore’s public accountants must adhere to an enhanced Code of Professional Conduct and Ethics (the Code). The enhanced Code is based on the Code of Ethics of the International Federation of Accountants (IFAC), a global benchmark for the international accounting profession. The enhanced Code provides more guidance to Public Accountants on how to apply the principles and the independence rules, and places an expectation on public accountants to pro-actively identify and eliminate potential threats to their independence.

The Accounting and Corporate Regulatory Authority (ACRA), the regulator of Singapore’s public accountants, has adopted the enhanced Code in place of the previous Code of the same name. The previous Code, prescribed in October 2002, is based on an earlier version of the IFAC Code and other international benchmarks.

The enhanced Code is built on the same principles as the previous Code and continues to require public accountants to ensure professional independence in key areas. Two key improvements in the enhanced Code are, firstly, that the enhanced Code has considerably more guidance on how to apply the principles and the independence rules, and secondly, the enhanced Code places an expectation on public accountants to pro-actively identify and eliminate potential threats to their independence.

The enhanced Code also requires public accountants to document their decisions on independence issues to clearly demonstrate that they have complied with the professional independence requirement.

For press release, please click here.

For enhanced Code of Professional Conduct and Ethics, please click here.

29 May 2009 - Amendments to tax code

Singapore will be amending its laws to better align with international tax standards.

This is expected to get Singapore off the so-called "grey list" of tax havens by the Organisation for Economic Cooperation and Development (OECD).

Being on the list means Singapore has agreed to the international tax standard, but has yet to substantially implement the measures required.

Singapore’s Second Minister for Finance said her ministry is working on the draft legislative amendments, which will be put out for public consultation by mid-year.

The proposed changes will enhance information exchange between Singapore and countries which have signed bilateral Avoidance of Double Taxation Agreements with the city state.

The Finance Ministry said Singapore is also in talks with several countries to update the agreements.

For more info, please click here.

28 May 2009 - Global accounting rules

All companies formed in Singapore and listed on the local stock exchange must start using a set of global accounting standards by 2012 - a move that will bring Singapore in line with other nations and enhance its role as a financial centre.

The International Financial Reporting Standards (IFRS), as the benchmark is known, is already used by 113 countries. By 2011, the standards will be in place in 150 nations.

Singapore Finance Minister announced the step, stating that aligning companies in Singapore with international standards would 'further reinforce Singapore's role as an international business and financial hub'.

He said having global standards would eliminate any remaining financial reporting costs for Singapore-listed companies operating in more than one jurisdiction and help them participate in international capital markets. It will also provide international investors with the assurance of global comparability and transparency when they invest in Singapore.

Singapore's move was welcomed by Mr Warren McGregor, a member of the International Accounting Standards Board.

'It will continue to reflect the important role Singapore has played in the development of accounting standards and quality financial reporting,' he said.

China and South Korea have announced they will adopt the standards, while Hong Kong and Australia are already fully compliant.

Mr Tharman said local companies have 'generally been 'IFRS-ready' and 'IFRS-compliant' in a substantive manner for a number of years now'.

For press release, please click here.

25 May 2009 - Singapore's April inflation falls

Singapore's consumer price index (CPI) fell 0.7% in April 2009 on-year - the first decline since June 2005 - as housing and transportation costs fell:

• transport and communication dropped 6.3% due to cheaper petrol, lower car prices and lower road taxes

• housing fell 1.7% due to lower electricity tariffs and rebates on service and conservancy charges

• recreation dipped 0.3% as holiday travel became cheaper

However, the cost of food rose 3.6% from April last year. Healthcare, and clothing and footwear costs also increased, said the Singapore Department of Statistics (DOS).

Analysts had expected the CPI to rise 0.4% to follow on from the 1.6% increase in March. The official CPI inflation forecast for 2009 is now -1% to 0%.

For full report, please click here.

21 May 2009 - Singapore GDP growth forecast maintained at -9.0 to -6.0 per cent

The Ministry of Trade and Industry (MTI) announced that it will maintain the GDP growth forecast for 2009 at -9.0 to -6.0 per cent.

Singapore's economy contracted by 14.6 per cent on a quarter-on-quarter, seasonally adjusted annualised basis in first quarter of 2009, compared to the decline of 16.4 per cent recorded in the last quarter of 2008.

However, in year-on-year terms, real GDP contracted by 10.1 per cent in the first quarter of 2009.

All major sectors of the economy experienced further quarter-on-quarter declines, except for construction and financial services.

Manufacturing contracted by 26.6 per cent, worse than the previous quarter’s contraction of 21.3 per cent. It is weighed down by continued weakness in electronics, biomedical manufacturing, precision engineering and chemicals.

The services producing industries contracted by 10.3 per cent, less than the 15.0 per cent decline in the previous quarter.

Meanwhile, CPI inflation has slowed significantly to 2.1 per cent in the first quarter of 2009, down from 5.4 per cent in the fourth quarter of 2008.

This has mainly been due to a downward correction of global commodity prices from the peaks in 2008. CPI inflation is estimated to continue to fall in the coming months.

For 2009, the forecast for CPI inflation is maintained at -1.0 to 0 per cent.

For full report, please click here.

18 May 2009 - S'pore April exports fall 1.3%

Singapore's non-oil exports in April fell 1.3 per cent from the previous month on a seasonally adjusted basis, following two months of growth.

On a yearly basis, April non-oil exports fell 19.2 per cent to S$11.3 billion, after a 17 per cent decline in the preceding month, in line with a median 19 per cent fall in a market forecast, marking the 12th month of annual contraction.

Electronics shipments plunged 25.6 per cent in April from a year earlier, the 27th consecutive drop, following a 25.7 per cent decline in March, according to figures released by trade promotion agency, IE Singapore.

Singapore's economy has contracted each of the last four quarters compared with the preceding quarters, including an annualised 19.7 per cent in the first quarter. The government expects the economy to shrink as much as 9 per cent this year.

The government said last month it expects overseas shipments to fall as much as 13 per cent this year, worse than an earlier forecast for a decline of between 9 per cent and 11 per cent. Production fell the most in at least 13 years in March.

Non-electronics shipments, which include petrochemicals and pharmaceuticals, fell 14.8 per cent in April from a year earlier. Pharmaceutical shipments rose 41.6 per cent.

Exports to Europe in April fell 33 per cent while sales to the US dove 35 per cent. Sales to China dropped 18 per cent.

Non-oil imports fell 27 per cent in April from the same month a year earlier after dropping 25 per cent in March, said IE Singapore.

Total trade contracted by 0.6 per cent in April, compared to the 0.3 per cent fall in March, while total exports declined by 2.1 per cent, against 5 per cent the previous month.

For full report, please click here.

14 May 2009 - S'pore ranked most attractive city to do business in

SINGAPORE is viewed by the mobile wealthy as the most attractive destination in Asia to do business in, according to the Mobile Wealthy Residency Index (MWRI).

The Mobile Wealthy Residency Index (MWRI) is the world's first index measuring the attractiveness of financial centres to the mobile wealthy. Research was conducted by Scorpio during 2008 to April 2009 with leading international advisers to the world's wealthy mobile, which includes lawyers, accountants and bankers across 11 jurisdictions.

The country also takes third spot as one of the most popular financial centres due to rapid development and implementation of a modern framework with attractive policies.

Switzerland takes top spot as the most attractive jurisdiction for residency while London came in second.

There are a total of 11 key considerations and out of these, Singapore ranks first in employment and business opportunities and security, second in legal considerations and tax and immigration issues, and third in economic and political stability.

The research, conducted by Scorpio Partnership, has shown that Singapore is a positive reflection of the city's growth plans which have been set over the last decade.

14 May 2009 - Q1 GDP figures out on May 21

The Ministry of Trade and Industry will release the economic results of first quarter on May 21 at 8 am.

The data will include the overall performance of the economy, sectoral performance, sources of growth, inflation, employment and productivity from January to March, said MTI in a statement.

Flash estimates of Q1 growth released by MTI on April 14 - based only on two months' data - showed that the economy sank deeper in the first quarter and is expected to contract by between 6 and 9 per cent this year, instead of the 2 to 5 per cent contraction thought previously.

The downgrade was due to a sharp deterioration in the first quarter and weak global outlook for the rest of the year.

The advance estimates showed the GDP shrinking a record 11.5 per cent in the first quarter compared with the same period last year. This followed a 4.2 per cent contraction in the previous quarter.

Manufacturing slumped 29 per cent during the first quarter, while services retreated 5.9 per cent. The only growth evident was in the construction sector, which grew 25.6 per cent due to a strong pipeline of housing and infrastructure projects.

30 Apr 2009 - Jobless rate hits 4.8%

The unemployment rate for Singaporeans and permanent residents hit a five-year high of 4.8 per cent last month, according to the latest Manpower Ministry figures, but this is still below the peak reached during the Sars crisis in 2003.

The jobless rate for locals rose to 6.2 per cent in September that year, as worldwide fear of the infectious respiratory disease affected trade, tourism and business, and led to mounting job losses.

This year's jobless level is expected to worsen, with most analysts agreed that the recession has not bottomed out yet. The current swine flu outbreak adds to uncertainties over the economy and job market. The Manpower Ministry figures showed a rising trend in job losses over the past year.

There were 12,600 redundancies in the first three months of the year, the highest quarterly figure in a decade, surpassing the quarterly peak of 8,890 in 2001 due to the dot.com bust and terrorist attacks in the United States.

Most losses - 9,000 - were from the beleaguered manufacturing sector. Another 2,900 came from the services sector, and 700 from construction. The redundancy numbers are in line with what analysts have predicted.

MOM figures showed that overall unemployment here rose from 2.5 per cent last December to 3.2 per cent last month, with 95,600 people out of work. The unemployment rate which excludes foreigners, however, spiked much more, jumping from 3.6 per cent to 4.8 per cent over the same period.

For more details, please click here.

27 Apr 2009 - Faster maternity leave pay

The Government has modified its maternity leave subsidy scheme to let companies receive part of the payments earlier.

Starting May 1, employers will be able to make one interim claim for reimbursement for the Government paid portion of maternity leave any time after the mother has taken 8 weeks of maternity leave. This also applies to self-employed women seeking reimbursement from Government for maternity leave taken.

The remainder of the claim can be made after all remaining maternity leave has been taken. This enhancement is part of the Ministry's efforts to support employers, especially in the current economic climate, while creating a family-friendly environment.

This will provide some relief for employers, because as the current policy stands, they may have to wait up to 12 months to seek reimbursement for the portion of maternity leave payable by the Government. Presently, employers need to wait can seek reimbursement from the Ministry only after all maternity leave has been consumed. A 12-month wait ensues when employees maximize the 12-month flexibility in consuming maternity leave.

As part of the enhanced 2008 Marriage and Parenthood package, paid maternity leave has been extended from 12 to 16 weeks for eligible mothers. The first eight weeks will be paid for by the employer, while the remaining eight will be taken care of by the state. For the third confinement and above, all 16 weeks of maternity leave are paid by the Government.

In addition, while mothers could previously take the last 4 weeks of maternity leave flexibly within 6 months from the date of confinement, the last eight weeks can now be taken flexibly over a period of one year from the birth of the child, and this can be decided mutually between the mother and her company.

For more details, please click here.

23 Apr 2009 - March inflation eases

Singapore’s inflation slowed to 1.6 per cent in March from a year ago as transport costs fell.

Consumer prices showed no change after seasonal adjustments month-on-month, following a 0.8 per cent contraction in February.

Singapore's inflation has been on the downtrend since peaking at a 26-year high of 7.5 per cent in April, May and June last year.

'The consumer price index in March 2009 fell by 0.4 per cent over February 2009. The decline was attributed largely to lower costs of housing and transport and communication," said a DOS statement.

'On a seasonally adjusted basis, the consumer price index in March 2009 remained at the same level as that in February 2009.'

Housing cost fell by 1.7 per cent from February as a result of lower service and conservancy charges as rebates were given in March.

Costs of transport and communication also slid by 0.6 per cent during the month following lower prices of cars and cheaper petrol.

Most economists believe inflation will be negative for the full year, due to falling commodity prices in the recession and partly because of the high base last year. This gives more room for the Monetary Authority of Singapore to allow the Singapore dollar to depreciate further at its regular policy meeting next month, they said.

A weaker currency helps exports but generally leads to inflation. In this disinflationary environment, however, that danger is lessened.

For press release, please click here.

22 Apr 2009 - Best seaport in Asia

Singapore has been named the best seaport in Asia for the 21st time in 23 years, beating Hong Kong and Klang in Malaysia.

It received the honour in Hong Kong at the 23rd Asian Freight and Supply Chain Awards (AFSCA), an annual event organised by leading shipping and supply chain publication Cargonews Asia.

More than 12,200 readers of Cargonews Asia are polled to select best-in-class companies in 42 industry specific categories.

'It is the support of ship owners and operators and international maritime communities that has helped maritime Singapore gain global prominence,' said the outgoing chief executive of Maritime and Port Authority of Singapore (MPA).

'Winning the award for the best seaport in Asia for the 21st time affirms the confidence the maritime community has in Singapore as its port of choice in Asia.'

Singapore has won this category 21 times since 1987.

Last year was a good year for Singapore's maritime and port sector as it hit new highs in vessel arrival tonnage, container throughput and bunkering volumes.

Vessel arrivals rose by 11.1 per cent from the year before to hit 1.6 billion gross tons (GT). It also handled 7.1 per cent more containers at 29.9 million twenty-foot equivalent units (TEUs) - the most in the world - and sold a record 24.9 million tonnes of bunker fuel.

17 Apr 2009 - S'pore is 4th-best

Singapore has been named the fourth best country in the world in which to do business, an achievement that could help pull the country out of its worst recession in history.

The annual ranking of business-friendly countries by financial magazine Forbes Asia saw Singapore jump four spots from last year, leapfrogging Britain, Sweden, Ireland and Finland. Singapore also kept its regional top-dog position as the economy with the best business conditions in the Asia-Pacific.

Business-friendly economies like Singapore, which are able to attract entrepreneurs, investors and workers, are in a much better position than others to rebound' from the economic downturn that has gripped the world.

Its survey ranked 127 countries according to criteria such as taxes, red tape, investor protection, stock market performance, promotion of free trade and freedom of expression and organisation.

The only three countries ahead of Singapore in the rankings were Denmark, the United States and Canada.

To top it off, 17 Singapore-listed firms also made it to this year's Forbes Global 2000 list of the world's 2,000 biggest public firms, ranked by profits, assets, sales and market value. Last year, only 14 firms from Singapore were featured.

14 Apr 2009 - Singapore's economy to shrink 6.0 to 9.0% in 2009

Singapore's economy is expected to shrink by between 6.0 and 9.0 percent in 2009.

The new forecast is a sharp downgrade from the previous estimate of a contraction of between 2.0 and 5.0 per cent and follows fresh data showing a sharp deceleration in the first quarter.

The Ministry of Trade and Industry (MTI) said preliminary data showed gross domestic product (GDP) shrank 11.5 per cent in the first quarter from a year ago, far worse than the 4.2 per cent contraction in the preceding quarter.

'MTI's earlier forecast had factored in the likelihood of a weak first quarter, but the advance estimates indicate that actual GDP growth will undershoot earlier expectations by a significant margin,' it added.

The revised GDP forecast was made after the trade-dependent city state's key exports, known as non-oil domestic exports (NODX), fell by an estimated 17 per cent in March from a year ago.

The Monetary Authority of Singapore (MAS) also eased monetary policy for the second time since 2003, by shifting the secret trade-weighted trading band for its currency lower in what is effectively a one-off devaluation.

The MAS sets policy by managing the Singapore dollar's nominal effective exchange rate - its relative value compared with a basket of currencies of trading partners - instead of setting interest rates.

For press release, please click here.

6 Apr 2009 - S'pore vows to change tax laws to remove havens

Singapore has vowed to amend its tax laws within the year after being named in a list of countries that have not yet fully implemented global standards aimed at eliminating tax havens.

The Organisation for Economic Co-operation and Development (OECD) said Singapore was one of the countries that had not yet carried out their commitments to respecting global standards on exchanging tax information.

Singapore "intends to implement the standard by effecting legislative amendments later this year," a finance ministry spokesperson said in reply to a query from AFP at the weekend. The OECD, which groups the world's leading developed nations, listed 38 countries and territories that "have committed to the internationally agreed tax standard, but have not yet substantially implemented" the measures.

As well as Singapore the list also includes Belgium, Brunei, Chile, the Dutch Antilles, Gibraltar, Liechtenstein, Luxembourg, Monaco, Switzerland and Caribbean island nations including the Bahamas, Bermuda and the Cayman Islands. The OECD released the list after the Group of 20 summit in London agreed to crack down on tax havens.

"As expected, Singapore has not been classified by the OECD as a tax haven but as a financial centre that has committed to the internationally recognised tax standard," the Singapore finance ministry said.

"This recognises that Singapore has endorsed the OECD standard for the exchange of information through Avoidance of Double Taxation Agreements (DTAs), and intends to implement the standard by effecting legislative amendments later this year and negotiating and concluding relevant DTAs."

It added that "Singapore's position in this regard is no different from that of other major financial centres such as Hong Kong, Switzerland and Luxembourg, which the OECD has similarly recognised as jurisdictions that have committed to implementing the OECD standard."

2 Apr 2009 - Private home prices take double-digit dive

Private home prices plunged 13.8 per cent in the first three months of this year - a record quarterly drop as developers and other market players slashed their expectations.

It was the third quarterly fall in prices - and much steeper than the 6.1 per cent drop in the preceding Q4 2008, according to advance estimates released by the Urban Redevelopment Authority (URA). Private home prices dipped 1.8 per cent in Q3 2008 after 17 straight quarters of growth.

Prices of resale HDB flats, which seemed to defy gravity and grew throughout 2008, also fell in Q1 2009 - by 0.6 per cent - after nine quarters of growth.

In recent months, developers have cut the selling prices of new homes and sellers of secondary properties have also trimmed their asking prices.

Aggressive price cutting by developers seems to have paid off. An estimated 2,100-plus new homes were sold in Q1 - the highest level since the market was hit by the US mortgage crisis in the last quarter of 2007 and more than four times the number of new units sold in Q4 2008. But the pick-up in sales volume was at the expense of prices.

URA's non-landed private home price index for the Core Central Region, which includes the prime districts, financial district and Sentosa Cove, fell 15.2 per cent quarter-on-quarter in Q1. In the Rest of Central Region, prices fell 17.2 per cent. And in the Outside Central Region, which is a proxy for suburban mass-market locations, they fell 7.5 per cent.

The drop in HDB resale prices took some observers by surprise, as analysts tracking the sector had said that they would continue to rise in the first half of this year, though at a slower pace than in 2008.

Private home prices are expected to continue falling in the rest of the year. But the pace of decline is expected to taper off. For the full year, analysts put the overall drop in private home prices at 20-30 per cent, with homes in the suburban areas taking the smallest hit.

The fall in HDB prices, on the other hand, is expected to pick up steam in the rest of 2009. Analysts expect that HDB resale prices will fall by between 5 and 15 per cent for the whole of 2009.

For more info, please click here.

25 Mar 2009 - S'pore to raise its game as business magnet

The government will try to attract new businesses and make life even easier for existing ones as it awaits an economic recovery.

Finance Minister of Singapore said that the government is seeking to 'reduce administrative speed bumps and regulatory road blocks' to make Singapore an even more attractive place to do business.

Singapore, as a global city, has taken a sharp hit to its growth. On current indications, we expect to see a bottom in the economy within the next two quarters. But growth thereafter is still likely to remain weak at least till the end of 2009 and possibly 2010 if there are no clear signs of recovery in the global economy.

The government is not wasting time amid a flight-to-quality among companies. As with every major crisis, there will be a rearranging of corporate footprints around the world. It will play to Singapore's advantage.

To improve the ease of doing business, the government has sought to make regulatory financial reporting simpler by allowing companies to do a single filing for their annual financial statements with several agencies.

This is part of its efforts to transform the regulatory financial reporting framework in a major way.

Companies that have filed their full set of financial statements with the Accounting and Corporate Regulatory Authority (Acra) in eXtensible Business Reporting Language or XBRL in short, now do not have to file them again with the Inland Revenue Authority of Singapore (Iras).

But this is just the start, going forward the government will study the possibility of an integrated system of financial reporting, including the Singapore Exchange.

Finance Minister of Singapore also provided an update on what the Budget 2009 initiatives have achieved so far.

In the first three months between Dec 1, 2008 to Feb 28 this year, more than 43,000 workers and 700 companies have committed to Spur or Skills Programme for Upgrading and Resilience.

Financing initiatives have also seen higher take-up. Within the first six weeks of the enhanced risk-sharing scheme since Feb 1, it has booked loans of over $620 million across various SME financing schemes, more than five times the value of loans registered over a similar period last year.

The Jobs Credit scheme announced in Budget 2009 will see some 100,000 employers that hire some 1.3 million local workers receive $920 million in the first quarterly payment on March 31. The one percentage point cut in corporate tax rate to 17 per cent for Year of Assessment 2010 will lead to effective tax rates of below 10 per cent for companies within the 70th to 80th percentile with chargeable income of around $300,000.

18 Mar 09 - Key Exports Down 23.7% In February 2009

Singapore’s non-oil domestic exports (NODX) fell 23.7% on-year in February 2009, its 10th straight month of decline, as demand continued to slump in most key export markets:

• US exports tumbled 44.4%
• Japan exports slumped 38.9%
• European shipments fell 36.7%
• Hong Kong exports dropped 21.5%
• Malaysia exports slid 20.6%

However, NODX to China increased 8.4% due to higher shipments of civil engineering equipment parts, food and measuring instruments.

Overall, all key export sectors recorded lower exports:

• electronics shipments contracted 31.9% due to lower exports of computer parts, integrated circuit components and disk drives
• non-electronic shipments declined 18.3% due to weaker demand for petrochemicals, pharmaceuticals and electrical circuit apparatus

For full press release, please click here.

11 Mar 2009 - Singapore top for Asian expats

For the 10th year running, Singapore has come in tops as the city with the best quality of life for Asian expatriates, an annual survey released on 11 March 2009.

Its good infrastructure, healthcare facilities, decent air quality, and low crime rates kept it at the top position in the annual ranking by human resources consultancy ECA International.

Singapore beat 253 other cities, including Australia's Sydney and Melbourne and Japan's Tokyo, Yokohama, and Kobe. Hong Kong was ranked 11th due to its air quality.

Singapore was also named the top Asian location for European expatriates, followed by Kobe, Yokohama, Hong Kong and Tokyo.

The survey aims to help companies establish expat allowances. Companies may be seeking to slash expat packages during the global economic downturn but ECA said only a handful of cities in Asia offer expatriate staff a good standard of living.

For full details, please click here.

10 Mar 2009 - Record S$8.6B Services Trade Surplus In 2007

Singapore’s trade in international services recorded a surplus of S$8.6 billion in 2007 - its first surplus in more than a decade – as exports of services surged 19.3% on-year to S$121.5 billion and imports of services grew 9.6% to S$112.9 billion.

Transport, trade-related and travel services accounted for the bulk of the services trade – 70% of exports and 63.3% of imports, while financial services posted the largest export growth of 44.5% to S$9.9 billion due to gains in:

• financial management services
• banking services
• brokerage and underwriting fees on financial instruments

Singapore’s top export markets for services in 2007 were:

• United States (14.8%)
• European Union (14.7%)
• Association of Southeast Asian Nations (13.8%)
• Japan (9.5%)
• China (6.3%)

For more details, please refer to Singapore's International Trade In Services 2007 (PDF) published by the Singapore Department of Statistics.

8 Mar 09 - S'pore still No. 3 financial centre

SINGAPORE has retained its ranking as the No. 3 financial centre in the world, in the latest Global Financial Centres Index survey commissioned by the British local authority, the City of London.

However, the authors concluded that 'there is no 'safe' port in the current financial storm'. All 62 centres had scored more poorly according to the assessment criteria, given the current tough times.

Still, Singapore 'remains a solid centre, as evidenced in its continuing high performance in all industry sector sub-indices and in all areas of competitiveness'.

The top scorers have, however, weathered the storm better than the lower-ranked centres in what might appear as 'a genuine 'flight to safety' with people in financial services putting their faith in the quality of well-established financial centres', said the report.

The survey rates and ranks each major financial centre in the world in terms of competitiveness and has been updated every March and September since 2007.

The top 10

The top 10 financial centres and their ranks (previous rank in brackets):

1. London: (1)
2. New York: (2)
3. Singapore: (3)
4. Hong Kong: (4)
5. Zurich: (5)
6. Geneva: (6)
7. Chicago: (8)
8. Frankfurt: (9)
9. Boston: (11)
10. Dublin: (13)

26 Feb 2009 - Singapore economy grew by 1.1 per cent in 2008

Singapore's economy, already in recession, shrank 4.2 per cent in the fourth quarter of 2008 from a year earlier, with overall annual growth coming in at 1.1 per cent, compared to 7.8 per cent in 2007.

The Ministry of Trade and Industry (MTI) is maintaining its 2009 forecast of a shrinkage in gross domestic product (GDP) of between 2.0 and 5.0 per cent.

Real gross domestic product (GDP) contracted by 4.2 per cent on a year-on-year basis in the fourth quarter of 2008, after posting flat growth in the third quarter of 2008. On a seasonally-adjusted annualised quarter-on-quarter basis, real GDP declined by 16.4 per cent in the fourth quarter of 2008, following the 2.1 per cent contraction in the previous quarter.

Performance in Fourth Quarter 2008

The manufacturing sector declined by 10.7 per cent, similar to the preceding quarter. Most of the clusters, particularly electronics, precision engineering and chemicals, contracted. Growth in the construction sector slowed to 18.5 per cent, from 26.0 per cent in the third quarter, weighed down by a slowdown in industrial building activity and the deferment of several private sector projects.

The services producing industries as a whole contracted by 1.3 per cent, down from the 5.5 per cent growth in the previous quarter. All sectors, except information and communications and business services, contracted. Growth in the financial services sector fell by 8.1 per cent on the back of significant declines in trading activities in foreign exchange and stock brokerage, fund management and Asian Currency Units. The sharp decline in world trade towards the end of 2008 also resulted in contractions in the wholesale and retail sector (-5.3 per cent) and the transport and storage sector (-2.4 per cent).

Overall Performance in 2008

The manufacturing sector contracted by 4.1 per cent in 2008, compared to the growth of 5.9 per cent in 2007. With the exception of the transport engineering sector and general manufacturing, the majority of manufacturing sectors (electronics, chemicals, biomedical manufacturing and precision engineering) contracted in 2008. The construction sector grew strongly by 20.3 per cent in 2008, outperforming the growth of 18.2 per cent in the previous year.

Overall growth of the services producing industries slowed to 4.7 per cent in 2008, compared to 8.1 per cent in 2007. The slowdown was led by significantly slower growth in most of the industries, in particular, the wholesale and retail trade, hotels and restaurants, and financial services.

For detailed economic results for fourth quarter and the whole of 2008, please click here.

24 Feb 2009 - Singapore, Vietnam sign agreement to boost co-operation in taxation

Relations between Singapore and Vietnam received a boost on Tuesday with the signing of a Memorandum of Understanding (MOU) to expand co-operation in areas like fiscal policy planning and taxation.

From there, an action plan for customs and tax co-operation is expected to be concluded by April this year. This exchange seals the improved co-operation in macro-economic analyses and forecasting between Vietnam and Singapore.

The MOU would help us to share experiences and skills in economic and financial management so that both countries can contribute more to the economic development of the region.

Trade between Singapore and Vietnam totalled more than S$15 billion last year, up 20 per cent from 2007. And with this latest agreement, it can only grow further.

It took the two countries about one year to finalise the details for the MOU. This shows that an action-oriented relationship between Singapore and Vietnam, not just on paper, but with real programmes of collaboration, such as having senior Vietnamese finance ministry officials coming here for study visits.

23 Feb 2009 - Inflation cools to 2.9%

SINGAPORE'S inflation eased significantly in January, continuing its downward trend.

The consumer price index (CPI), which tracks prices of a basket of commonly purchased goods, rose 2.9 per cent in January over a year ago, the Department of Statistics reported.

This is slower than the 4.3 per cent rise in December, and prices have now eased for the fourth straight month since last October.

Compared to December, inflation was down marginally by 0.1 per cent.

Lower price levels allow the Government to spend aggressively to stimulate the recession-hit economy through public spending and weakening the Sing dollar to make exports cheaper, without fear of driving up inflation.

The Government, which announced a $20.5 billion stimulus package in the Budget, expects inflation to hold steady or fall 1 per cent this year as Singapore battles a recession which could send gross domestic product (GDP) down minus 5 per cent this year.

For press release, please click here.

20 Feb 2009 - Office rents may halve

AFTER two years of being squeezed by soaring rents, office tenants are finally seeing the market turn in their favour. Up to four years of falling or flat rents are in store for them as a wave of upcoming office space outstrips lacklustre demand.

Rents of top-tier buildings downtown such as One Raffles Quay and Republic Plaza offer that Grade A space are predicted to drop 30 per cent to 40 per cent this year, and a further 20 per cent to 25 per cent next year.

The expected falls are due to the huge volume of new office space to be completed by 2011: 5.5 million sq ft, or about 30 per cent of all existing Grade A space.

At the same time, demand for new offices - which far exceeded supply recently when firms were still expanding - has become anaemic, due to the global economic slowdown. Office rents have generally come off by 10 per cent from the peak last year, although for new lettings we've seen more like a 25 per cent drop.

Average Grade A rents peaked at $15.10 per sq ft (psf) last year and fell to $13.70 psf by the year end. It’s believed that they will drop to $6 to $7 psf next year, leaving prime office space here some 20 per cent cheaper than in Hong Kong. Singapore's office market will see a more severe adjustment, partly because the proportion of new space in relation to existing space is bigger.

18 Feb 2009 - Exports fall a record 35%

The global recession dealt Singapore a hammer blow in January with exports recording their worst performance in the nation's history.

Shipments crashed 34.8 per cent, the largest fall since the Government began collating year- on-year figures in 1977. That meant it even exceeds the previous worst of 30.7 per cent set in September 2001, the month of the terrorist attacks in New York and Washington.

While the figures from International Enterprise (IE) Singapore confirmed the forecasts of the experts, they have also ratcheted up the fear among workers' groups, businesses and others at the sharp end of the faltering economy.

Yesterday's numbers were merely the latest instalment in what is becoming an all-too-familiar tale. Exports have now fallen for nine months straight and economists see the dismal run continuing.

No sector, no market has escaped the carnage.

As expected, shipments to all the top 10 markets suffered double-digit contractions. But shipments to emerging markets in Latin America and South Asia, which had been growing until December, also fell by similar amounts.

Tech exports continued to lead the decline, falling 38.4 per cent - a slump that has now endured for two years - while petrochemicals also fell 59.7 per cent.

The overall export numbers could have been even worse if not for pharmaceuticals faring better, recording only a 4.5 per cent contraction compared to December's 51.1 per cent decline.

10 Feb 2009 - New Funding Schemes For Local Businesses

To help local small and medium businesses tide over the global slowdown, 3 schemes were launched by SPRING Singapore and International Enterprise (IE) Singapore:

For All Small and Medium Businesses

• Business Upgrading Initiatives for Long-Term Development (BUILD) Scheme
Provides increased funding support of 70% under SPRING Singapore’s capability development programmes for businesses, up from the current 50%. Industry-level projects will receive up to 80% funding support.

For Exporters

• Export Coverage Scheme (ECS)
Provides subsidies of up to 50% on insurance premiums paid by exporters against buyer default from 1 March 2009 onwards, capped at S$100,000 per company. Exporters with trade credit insurance can also tap the scheme for greater coverage.

• Exporter Development Programme Provides funding to help exporters build capabilities and expand into new markets through greater participation at overseas trade fairs and business missions.

For more details, please click here.

4 Feb 2009 - Unemployment Rises To 2.3% In 2008

Singapore’s unemployment rate rose to 2.3% in 2008, up from 2.1% the previous year and the highest in 5 years, as the global economic turmoil led to slowing job growth and a spike in retrenchments.

Retrenchments surged 75% on-year to 13,400 in 2008, with all sectors reporting an increase in layoffs:

• manufacturing firms retrenched 8,300 workers
• services firms laid off 4,900 workers, mostly in financial services and wholesale trade in Q4 2008
• construction firms retrenched 200 workers .

Another 2,600 contract workers were released prematurely from their contracts, bringing total job losses to 16,000.

Some 227,000 jobs were created in 2008, down from 234,900 in 2007. Job growth slowed significantly during September – December 2008, with just 26,900 jobs added compared to 62,500 in Q4 2007.

For more information on the employment situation in Q4 2008, please click here.

22 Jan 09 - Singapore government to introduce S$20.5b resilience package

Singapore government has unveiled a massive S$20.5 billion plan to help Singaporeans keep jobs and viable companies stay afloat in its budget for this year. The highly expansionary Budget will result in a S$8.7 billion deficit, the country's largest deficit ever.

Five components of the Resilience Package:

• First, jobs for Singaporeans - $5.1 billion to help preserve jobs.
• Second, stimulating bank lending - $5.8 billion in government capital for a Special Risk-Sharing Initiative (SRI). Of this, a small fraction is likely to be eventually expended on provisions for loan losses.
• Third, enhancing business cash-flow and competitiveness - Implement tax measures and grants for businesses that will cost $2.6 billion.
• Fourth, supporting families - $2.6 billion to support Singaporean households this year.
• Fifth, building a home for the future - $4.4 billion on developing first class infrastructure for the island and on expanded provisions for education and healthcare.

For more details, please click here.

21 Jan 09 - 2009 GDP forecast revised from -5.0 to -2.0 per cent

Singapore’s Ministry of Trade and Industry (MTI) revised Singapore’s GDP growth forecast downwards to -5.0 to -2.0 per cent, lower than previous estimates of -2.0 to +1.0 per cent.

The ministry also revised down its forecast for the Consumer Price Index (CPI) in 2009, estimating inflation to remain unchanged or to decline at 1.0 per cent.

MTI said the weaker economic outlook is due to faster and steeper decline in the global economic activity, as well as spill over effects on key sectors of the economy from the last quarter of 2008.

For 2008 as a whole, the economy is estimated to have grown by 1.2 per cent, compared with 7.7 per cent in 2007. MTI expects the economic downturn to continue in 2009.

For full press release, please click here.

16 Jan 09 - Singapore-Russia Avoidance of Double Taxation Agreement Ratified

Singapore and Russia have ratified a bilateral Double Taxation Agreement (DTA) which will come into force on 16 January 2009. Income derived on or after Jan 1, 2010 will be affected by the terms of this deal.

The agreement, Singapore's 60th of this kind, seeks to encourage and facilitate cross-border trade and investment between Singapore and Russia through the lowering of tax barriers and the better definition of taxing rights between the two nations. The main provisions under the Agreement include the following:

a) Lower withholding tax rates are imposed on dividends, interest and royalties. The tax rate for interest and royalties is 7.5% while the following rates apply to dividends:
i) 5% (for corporate shareholders holding at least 15% of the share capital and has invested at least US$100,000 or its equivalent in other currencies);
ii) 5% for the Government; and
iii) 10% (for other shareholders)

b) Tax credit would be available for residents earning foreign-sourced income. In the case of dividends received from Russia, Singapore also allows tax credit on the underlying tax paid for the dividends if there is at least 10% shareholding.

c) A building site, a construction, installation or assembly project, or supervisory activities connected therewith constitute a permanent establishment only if it lasts more than 6 months. The period threshold for furnishing of services is more than 3 months in any 12-month period.

For full press release, please click here.

15 Jan 09 - Singapore brings forward Q4 GDP release to Jan 21

Singapore will bring forward the release of final economic growth data for the fourth quarter of 2008 as well as December inflation figures to Jan 21, ahead of budget day on Jan 22.

The city-state usually releases the GDP numbers about five to six weeks after the end of a quarter.

Singapore's economy contracted for a third consecutive quarter in October-December, shrinking at a seasonally adjusted, annualised pace of 12.5 percent following a revised 5.4 percent decline in July-September, according to advance estimates.

As a result of the deepening recession, the government will announce its budget for the fiscal year beginning in April in January instead of as usual in February.

For full press release, please click here.

11 Jan 2009 - Firms Get Help With Loan Applications

Small and medium enterprises can now receive free professional advice when applying for new and revised Government financing schemes recently announced to help businesses survive the current economic downturn.

The Financial Facilitator Programme (FFP) launched yesterday will help businesses to:

• assess their financial well-being
• get recommendations on financial management and financing options
• fill up and submit their applications for Government-backed bank loans

For full press release, please click here.

2 Jan 2009 - Singapore lowers economic growth forecast to -2.0%

The Singapore economy is expected to grow between -2.0 per cent and 1.0 per cent in 2009. The forecast by the Trade and Industry Ministry (MTI) is lower than the -1.0 per cent to 2.0 per cent range forecast in November 2008.

The weaker prognosis for the Singapore economy in 2009 is based on the sharp contraction seen in the fourth quarter of 2008.

Advance estimates show that Singapore’s gross domestic product (GDP) for 2008 should come in at 1.5% compared with 7.7 per cent in 2007.

This figure is lower than MTI’s forecast of around 2.5 per cent in November 2008 and is attributed to a fourth quarter contraction of 2.6 per cent in real terms over the same period in 2007. This follows a decline of 0.3 per cent in the preceding quarter.

On a seasonally adjusted, annualised quarter—on—quarter basis, MTI said real GDP fell by 12.5 per cent, compared to a decline of 5.4 per cent in the third quarter of 2008.

For full press release, please click here.

31 Dec 2008 - Cheaper Loans For Local Businesses

Local enterprises will get cheaper and easier access to credit following SPRING Singapore’s move to enhance its business loan schemes with effect from 1 January 2009.

Interest rates on new and existing loans taken from Micro Loan Programme, Bridging Loan Programme (BLP) and Local Enterprise Finance Scheme (LEFS) will be slashed by 1.25% to help businesses manage their credit costs. Some 13,540 existing loans amounting to S$554 million are expected to benefit from the lower interest rates.

The revised interest rates are:
• 5% for loan tenures of 4 years or less, down from 6.25%
• 5.5% for loan tenures of more than 4 years, down from 6.75%

Businesses will also enjoy lower insurance premiums of just 0.15% under the Loan Insurance Scheme (LIS), following the Government’s move to pay for 90% of premium costs, up from 50%.

The enhancements will be in place for a year, after which SPRING Singapore will review the need for an extension.

For more information, please click here.

26 Dec 2008 - Inflation Eases To 5.5% In November 2008

Singapore's inflation rose 5.5% on-year in November 2008 - it's lowest reading since December 2007 - as falling global oil prices resulted in cheaper petrol and car prices.

While transport and communication costs dipped 1.9% on-year, prices of most items continued to rise:
- housing jumped 15.7%
- food rose 6.9%
- healthcare increased 4.5%
- recreation, education & stationery, and clothing & footwear grew 1.0% - 2.5%

Compared to October 2008, the inflation rate declined 0.2% after seasonal adjustments, the first negative reading since September 2007.

In the first 11 months of 2008, prices increased 6.7% compared with the same period a year ago, according to the Singapore Department of Statistics (DOS).

For full press release, please click here.

17 Dec 2008 - Southeast Asia Nations Ink 3 Trade Agreements

6 members of the Association of Southeast Asian Nations (ASEAN) - Singapore, Brunei, Cambodia, Indonesia, Laos, and Malaysia - signed 3 trade agreements yesterday to drive regional trade in goods, investments and services.

The pacts will establish an ASEAN Economic Community (AEC) similar to the European Union (EU):

- ASEAN Trade in Goods Agreement (ATIGA)
Lowers tariffs on traded goods and provides a clear framework on custom procedures.

- ASEAN Framework Agreement on Services (AFAS) Protocol
Improves the efficiency and competitiveness of the services sector by 2015.

- ASEAN Comprehensive Investment Agreement (ACIA)
Protects investments made in any ASEAN state and provides compensation if a country revises their investment commitments.

The other 4 ASEAN countries - Vietnam, the Philippines, Thailand and Myanmar - are due to sign the agreements at a later date.

For full press release, please click here.

16 Dec 2008 - S’pore and Gulf states sign FTA

The six—nation Gulf Cooperation Council (GCC) - comprising Saudi Arabia, Qatar, United Arab Emirates (UAE), Kuwait, Bahrain and Oman - has signed its first free trade agreement (FTA) with Singapore.

Singapore’s Ministry of Trade and Industry said the FTA is a comprehensive pact covering trade in goods and services, investments, rules of origin, customs procedures, electronic commerce and economic cooperation.

The GCC countries are Singapore’s seventh largest trading partner with bilateral trade reached a record S$42.4 billion last year, a 127 per cent increase from 2002.

Key points of the FTA:

- Tariff-free concession for 99% of Singapore's domestic exports to the GCC. All GCC goods entering Singapore will be tariff-free.
- GCC countries will recognise or start talks to recognise Singapore Muis Halal Standards
- Singapore companies can own majority stakes in key services sectors in GCC markets
- GCC and Singapore will put in place a framework for cooperation in ICT, air services and business visits
- GCC and Singapore will maintain an open and transparent system of government procurement. Singapore suppliers will enjoy price preference of 10% for use of goods or services produced in the GCC.

For more details, please click here.

15 Dec 2008 - Labour Market Shows Signs of Softening

SINGAPORE'S jobless rate was 2.2 per cent in the third quarter, unchanged from the previous quarter, final government data showed.

Preliminary data in October had also put the third quarter jobless rate at 2.2 per cent, confounding expectations firms would cut hiring amid the financial crisis.

Total employment in the city-state grew by 55,700 in July-September, the Manpower Ministry said, slightly lower than the preliminary estimate of 57,800 and below the second quarter figure of 71,400.

The number of job vacancies in September fell to 36,000, a drop of 10 per cent from 40,100 in the previous quarter, while nominal earnings rose 5.5 per cent year-on-year compared with a gain of 3.1 per cent in the second quarter.

Singapore's trade-driven economy fell into its first recession in six years in the third quarter as the global financial crisis reduced demand for Singapore's exports and factory output.

For more details, please click here.

10 Dec 2008 - Singapore's GDP seen shrinking 1% in 2009

Private sector economists have drastically cut their forecasts for Singapore's full-year growth this year.

Singapore's Monetary Authority (MAS) has found in its latest survey of professional forecasters that the economists now expect full year growth to come in at 2.2 per cent, significantly lower than the 4.2 per cent Gross Domestic Product (GDP) expansion predicted in the September survey.

The government's forecast is for full year growth of about three per cent.

The nearly 20 economists in the survey also adjusted fourth quarter GDP performance to a 0.4 per cent growth, down from 4.8 per cent previously. But this is perkier than the finalised official reading for a 0.6 per cent contraction in the third quarter.

Meanwhile, the global slowdown has affected the private economists' predictions for 2009. They are now expecting a one per cent full year contraction, compared to the 4.6 per cent expansion predicted in the September survey.

For more details, please click here.

2 Dec 2008 - S'pore, N.Korea ink trade deals

SINGAPORE firms keen to expand into the largely untapped market of North Korea now have a foot in the door, thanks to two new agreements inked on 2nd December 2008.

The Ministry of Trade and Industry (MTI) said that Singapore signed an Investment Guarantee Agreement (IGA) with the country.

Trade and Industry Minister Lim Hng Kiang and his North Korean counterpart, Mr Ri Ryong Nam, signed the IGA during the North Korean Foreign Trade Minister's official visit to Singapore.

MTI said the IGA will help promote bilateral investment flows by protecting investors and their investments. Under the IGA, investors will be accorded:

• Non-discriminatory treatment;
• Compensation in the event of expropriation/nationalisation of their investments; and
• Free transfer of capital and returns from investment - perennial 'banana peels' for businesses entering a less-developed and unexplored market.

For more details, please click here.

27 Nov 2008 - Singapore-Uzbekistan avoidance of double taxation agreement ratified

Singapore and Uzbekistan signed an Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income ("DTA") in July this year. Following the completion of ratification formalities, Singapore's 59th DTA comes into force on 28 November 2008, and its provisions shall apply to income derived on or after 1 January 2009.

The DTA lowers tax barriers and provides more tax certainty to Singapore businesses engaged in cross-border trade and investments with and in Uzbekistan.

Also, under the DTA, Singapore tax residents who derive income sourced in Uzbekistan will enjoy withholding tax of 5% for dividends and interest, and 8% for royalty. These are lower than the withholding taxes under Uzbekistan's domestic tax laws of 10% for dividends and interest, and 20% for royalties. To eliminate double taxation, both countries will allow a tax credit for tax paid by their residents on foreign-sourced income.

For more details, please click here.

26 Nov 2008 - Singapore-Belgium new avoidance of double taxation agreement ratified

Singapore and Belgium signed a new Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income ('DTA') on 6 November 2006. This new DTA enters into force on November 27, 2008 following the completion of ratification formalities.

The new DTA will replace the current treaty which has been in force since 1973, and shall apply to income derived on or after January 1 next year. With the improved provisions under the new DTA, Singapore businesses will face lower tax barriers and enjoy tax certainty in their cross-border trade and investments in Belgium, and vice versa.

The improved terms under the new DTA include the following:

a) A building site, a construction, installation or assembly project, or supervisory activities connected therewith, constitutes a permanent establishment only if it lasts more than 12 months. Previously, the period threshold was 6 months. The period threshold for the furnishing of services has also increased from 90 days to 183 days in any twelve-month period.

b) The withholding tax rates on (a) interest and (b) lease payments for industrial, commercial or scientific equipment will be reduced from 10% and 5% to 5% and 3% respectively. For dividends, the following withholding tax rates will apply:
i. Exempt (for corporate shareholders holding at least 25% of the share capital for at least 12 months);
ii. 5% (for corporate shareholders holding at least 10% of the share capital); and
iii. 15% (for other shareholders)

For more details, please click here.

26 Nov 2008 - S'pore, Brazil ink agreements on trade, air services & technology

Direct air links between Singapore and Brazil is on the cards, and trade ties between the two countries will get a boost, after the two countries signed agreements on trade and air services.

Calling on Brazilian President in Singapore’s Prime Minister's first visit to Brazil saw both leaders discussing wide ranging issues, including how each country is dealing with the global financial crisis.

Both leaders noted the current financial crisis is largely a result of excessive risk taking and inadequate risk management practices in financial markets, as well as deficiencies in financial regulations and supervision in some advanced countries.

Both sides also noted that developing countries have a role to play in stabilising financial markets and fostering global growth. In this regard, both agreed that there is an urgent need to reform the international financial institutions to give greater voice and representation to developing countries.

Under the trade and investment promotion agreement, a joint committee will be formed to exchange ideas on promoting trade and business.

The science and technology agreement will see both sides collaborating in areas such as microbiology and dengue control, with the view to develop a vaccine against the disease.

The air services agreement will provide greater flexibility for airline operations, which Mr Lee notes will enhance people-to-people ties.

Under the bilateral air services agreement, Singapore carriers can operate a total of 14 weekly passenger services, and seven weekly air cargo services between Brazil and Singapore. This is likewise for Brazilian carriers.

Singapore is Brazil's principal trade partner among ASEAN countries and the 6th in Asia.

Trade between both sides has grown steadily over the years. In the past five years, trade volume has surged by 230 per cent, making Brazil Singapore's largest trade partner in South America.

For full press release, please click here.

21 Nov 2008 - S$2.3B Loan Support Package For Businesses

The Ministry of Trade and Industry (MTI) announced that the government is enhancing its business financing schemes to support an additional S$2.3 billion in loans to help local firms gain access to credit in this current economic slowdown.

The enhancements include increasing loan quantums, raising government risk sharing of loan defaults and extending business financing schemes to all local enterprises. With the enhancements, up to 124,000 local companies will be eligible to benefit from these schemes. The enhancements will take effect from 1 December 2008.

The government is acting early to enhance our business financing schemes in anticipation of greater credit tightening as a result of the global financial crisis. These measures seek to ensure that local enterprises have sufficient resources to continue to operate, invest, trade and internationalise in an adverse economic climate.

For the press release, please click here.

To find out more about other Government assistance to help businesses during the economic downturn, please click here.

21 Nov 2008 - S'pore cuts GDP forecast

SINGAPORE'S economy could shrink next year for the first time since 2001 as the global downturn deepens, warned the Ministry of Trade and Industry (MTI).

Growth could be between -1 to 2 per cent for 2009, with many key sectors such as financial services, property, electronics and tourism suffering 'weak or no growth'.

MTI also lowered its growth forecast for this year for the fourth time, after finalised figures for the third quarter confirmed a technical recession. Third-quarter GDP shrank 0.6 per cent from the previous year and 6.8 per cent from the previous quarter, slightly worse than forecast.

MTI is now tipping a 2.5 per cent expansion for the full year, down from the previous projection of 3 per cent.

More retrenchments are expected to take place in coming months, pushing up the unemployment rate next year.

Still, MTI emphasised that the Government 'remains confident in Singapore's ability to ride out the crisis'. Singapore's 'economic fundamentals remain strong', with the slowdown resulting from the global financial turmoil rather than any internal weakness.

For performance of the Singapore Economy for 3rd Qtr 2008, please click here.

18 Nov 2008 - Budget deficit this year possibly triple that of S$800m estimate

Singapore’s Finance Minister said the budget deficit expected for Financial Year 08 will possibly be three times larger than the estimated S$800 million due to higher expenditures, additional spending and more payouts to the people.

He said that the government will not seek to reduce the deficit by trimming government expenditures or raising revenue.

As the larger deficit is "an appropriate fiscal stance" in the context of an economy that has entered a slowdown.

The government has raised expenditures this year to allow for a more expansionary budget in the current economic environment.

Singapore is in a technical recession after two consecutive quarters of negative growth.

The government has promised early measures to help companies in the slowdown, expected some time this week.

17 Nov 2008 - Singapore’s Budget Statement brought forward to Jan 2009

Singapore Prime Minister (PM) has announced that Singapore’s Budget Statement will be brought forward to January next year before the Lunar New Year which falls on 26 January as Singapore’s economic growth next year could be negative, and to help cushion the slowing economy.

The Budget Statement is usually delivered by the Finance Minister in February.

The government intends to announce plans to stimulate the economy, support jobs and strengthen competitiveness.

The government is working out the best combination of measures for the coming Budget with the aim of not just helping Singaporeans with the present downturn but also to build up strength for the future.

PM cautioned that the Singapore economy will not do as well as the last few years. But added that through government leadership and help and the efforts of Singaporeans, he is confident the country will pull through the global downturn.

10 Nov 2008 - Singapore Government to turn on spotlight on business in upcoming Budget

Finance Minister of Singapore has sketched out the following considerations for the upcoming budget:

• To help businesses stay strong and competitive
• To help businesses with their costs and cashflow and supporting then in their efforts to stay competitive
• To help the economy as a whole by reducing job losses
• Expansionary budget to support economic growth and jobs

Finance Minister said that inflation is expected to moderate and should fall below 4 per cent by early next year, and average well below 3 per cent for 2009 as a whole.

With the global economic downturn unlikely short-lived, the Budget aims at helping Singaporeans and businesses get through the difficult period that could last for a few years.

By keeping to this approach, and taking measures to help businesses stay competitive and seize new opportunities, Singapore will emerge stronger from the crisis.

6 Nov 2008 - Budget to expand in 2009

SINGAPOREANS can look forward to an expansionary Budget next year, with measures to help cope with the impact of a slowing economy, said Singapore’s Senior Minister on 6 Nov.

The aim is to generate growth and to create employment for Singaporeans. For Singapore as a trading nation has been badly affected by the global slump and will face more difficult times next year.

But Senior Minister also assured that the Government is doing its best to help. It is still uncertain how bad things will get, but will do all they can to generate growth, so that there will be jobs and cushion Singaporeans from the worst effects of weak economic growth.

Singaporeans should brace themselves for a more difficult time ahead. Senior Minister added that although many are now concerned about costs, Singaporeans should not save excessively.

If all of us go into a power save mode, then the economy will really go into a recession! This is what economists called the Paradox of Thrift. If one have sufficient savings and can afford to spend, one should continue to spend on life’s little pleasures.

For more details, please click here.

31 Oct 2008 - Unemployment rate unchanged in third quarter

Singapore's unemployment rate has remained at 2.2 per cent after rising for two consecutive quarters, reported the Ministry of Manpower (MOM).

MOM also noted that employment grew by 57,800 in the third quarter, although this figure was lower than the 71,400 reported in the previous quarter, and the 58,600 recorded in the third quarter of last year.

Construction employment grew strongly by 16,400, although this was still lower than the record 22,400 gains in the previous quarter.

Primary estimates showed that 2,000 people were retrenched in the third quarter of this year – 1,500 from the electronics industry and 500 from the services industry.

For the full report, please click here.

23 Oct 2008 - Singapore's Sept inflation up 6.7% on-year

Singapore's consumer price index rose 6.7 per cent in September compared with the same period last year.

Data from the Singapore Department of Statistics showed this was largely due to higher prices of food and housing.

Housing costs increased by 14.6 per cent, while food prices went up by 8.2 per cent on-year. Health care rose 4.8 per cent, while transport and communication gained 2.8 per cent on-year.

On a seasonally adjusted basis, the consumer price index came in flat compared to August with a slight increase of 0.1 per cent.

For the Sept CPI report, please click here.

23 Oct 2008 - Singapore, China sign Free Trade Agreement

Singapore and China have signed the China-Singapore Free Trade Agreement (CSFTA) which will take effect 1 January 2009.

It was inked in Beijing in a ceremony witnessed by Singapore Prime Minister Lee Hsien Loong and Chinese Premier Wen Jiabao.

This is the first comprehensive bilateral FTA that China has signed with another Asian country.

China is currently Singapore's third largest trading partner and largest investment destination with bilateral trade reaching a record high of S$91.6 billion in 2007.

Singapore's total investments in China reached US$33.2 billion at the end of 2007.

Singapore's Trade and Industry Ministry said the agreement will enhance Singapore companies' access to the vast Chinese market and further boost bilateral trade and investment.

For more information, please click here.

21 Oct 2008 - S’pore’s financial system is sound, S$150b guarantee for deposits sufficient

The Singapore government has said its financial system is robust and it will be able to pay for all the Singapore dollar deposits it has guaranteed. Speaking in Parliament on Monday, Trade and Industry Minister of Singapore said that if the government should have to pay out money for failed banks, it may need to draw on past reserves.

The Singapore government announced on October 16 that it was guaranteeing all Singapore dollar and foreign currency bank deposits until 31 December 2010. However stresses that Singapore banks do not face funding difficulties.

In Parliament, MPs kept equating the guarantee on deposits with a bailout package. Nevertheless, Trade and Industry Minister stressed that Singapore banks do not face funding difficulties.

Despite this, he said that Singapore has guaranteed deposits to ensure an international level playing field for banks, for if Singapore had not done so, people could move their deposits to other countries which have guaranteed deposits.

In recent weeks, countries like Australia and Hong Kong have introduced their own deposit protection schemes to build confidence in their banks.

The guarantee will also boost confidence in Singapore’s financial system and the move is critical as financial services are an important part of Singapore’s economy. It is also Singapore’s way to add to confidence in the international financial system.

Trade and Industry Minister said the guarantee on deposits is a measured, precautionary action that will help Singapore pull through this global economic slowdown. It will also help the country cope with the ongoing financial crisis in international markets.

21 Oct 2008 - S’pore govt warns of slower growth and higher unemployment ahead

Trade and Industry Minister of Singapore has said the country is set for several quarters of slower growth. Speaking in Parliament on Monday, he said this could stretch on for longer, depending on the state of the global economy.

Singapore, an open economy, cannot escape the impact of the financial crisis and the global economic slowdown. It is already in a technical recession and there are signs this is affecting the job market.

Trade and Industry Minister said: "The slowing economy and more cautious hiring have contributed to an increase in the overall unemployment rate from two per cent in March 2008 to 2.3 per cent in June 2008."

The unemployment rate for this year is likely to be higher than the record low of 2.7 per cent in 2007. For now, retrenchments are still unchanged from previous quarters.

The financial turmoil has hit the property, retail and tourism industries. For the construction sector, Trade and Industry Minister said it is expected to grow by 7.8 per cent in the third quarter of this year, falling short of the 18 per cent growth registered in the first half of 2008.

And construction on projects like the Downtown mass rapid transit line is expected to contribute strongly to the economy, but the slower growth is due to weaker market sentiments, contractor shortage and equipment delays.

While Singaporeans shopping for daily necessities found higher prices for basic goods this year, Trade and Industry Minister said inflation has peaked, so costs will come down, though there will be a lag. However He cautioned that inflation will continue to be sticky in the next few months because some of these costs have a certain amount of lag. But going into the next year, over the next 15 months, both MAS and MTI are confident that our inflation will revert to the more normal two to three per cent that we saw previously."

17 Oct 2008 - Sept exports fall 5.7%

SINGAPORE'S exports declined for the fifth straight month in September as companies shipped fewer electronics and pharmaceuticals to the United States and Europe.

Non-oil domestic exports fell 5.7 per cent from a year earlier to S$13.8 billion, after declining a revised 13.9 per cent in August, trade agency International Enterprise Singapore. Economists had expected a 8.4 per cent to 9.7 per cent drop.

Exports dropped a seasonally adjusted 0.8 per cent last month from August, when they advanced a revised 1.9 per cent; the latest evidence the worsening financial crisis has reduced demand for Asian exports.

The Singapore economy is heavily dependent on trade, and non-oil domestic exports were worth about 70 per cent of the country's gross domestic product last year.

For full report, please click here.

10 October 2008 - Government sets up committee to boost Singapore’s accountancy sector

The government is setting up a committee to develop the country’s accountancy sector in a bid to become the leading international centre in Asia for accountancy services and professionals.

The committee will review the accountancy sector in Singapore and make recommendations for any improvements to the government. The Committee to develop the Singapore Accountancy Sector will comprise up to 15 accounting and business professionals.

Mr Bobby Chin, chairman of the Tote board will chair the committee. The full structure of the committee will be announced in November.

It will look at areas such as attracting international talent, and developing training to position Singapore as a prime location for the industry in Asia.

For full details of press release, please click here.

10 Oct 2008 - Singapore economy in technical recession

Singapore's trade-sensitive economy has declined for a second straight quarter, the government said meaning the city-state has entered a recession for the first time in six years.

On a seasonally adjusted quarter-on-quarter annualised basis, real GDP declined by 6.3 percent in the third quarter after contracting 5.7 percent in the previous quarter, estimates from the Ministry of Trade and Industry said.

It did not describe the economy as being in recession, but a technical recession is generally defined as two consecutive quarters of quarter-on-quarter contractions in economic output.

Economists polled by Dow Jones Newswires had forecast a 0.3 percent quarter-on-quarter rise in gross domestic product (GDP), the value of goods and services produced in the economy.

Singapore's last technical recession occurred in 2002, and the most recent full-scale recession was in 2001 when the economy contracted 2.4 percent during the year.

For full details of the Q3 GDP, please click here.

9 Oct 2008 - Singapore is 'fifth most competitive economy'

SINGAPORE has climbed two notches to fifth place in the World Economic Forum's (WEF) latest global competitiveness index, distancing itself from the other Asian economies.

It was only last year that Singapore overtook Japan in the annual ranking, which polled a record 12,297 business leaders in 134 economies this year.

It has the best ranking of all economies in terms of public trust of politicians, wastefulness of government spending, burden of government regulation and transparency of government policymaking.

It was also ranked among the top two countries for the efficiency of all of its markets - goods, labour and financial - ensuring proper allocation of these factors to their best use, the survey said.

'Singapore also has world-class infrastructure, leading the world in the quality of its port and transport facilities.'

For full report, please click here.

3 Oct 2008 - Private-home prices first dip in 4 years

SINGAPORE'S private-home prices fell 1.8 per cent between July and September, snapping four straight years of growth and sending property stocks falling to near three-year lows.

The Urban Redevelopment Authority (URA) said yesterday that early estimates showed the price index for private residential properties fell to 174.3 points for the three months ended September, from 177.5 in the previous three month period.

This is the first decline in the index since the first quarter of 2004, as concerns over the global financial turmoil caused home sales to slump.

Private-home sales in Singapore fell 81 per cent in August from a year ago. URA will release the official price index in four weeks' time.

For more information, please click here.

29 Sept 2008 - Singapore’s August Manufacturing Output Down 12.2%

Singapore's manufacturing output, which comprises about a quarter of the economy, fell by 12.2% in August 2008.

Most clusters recorded lower output on-year:

- Biomedical manufacturing shrank 33.8% due to lower pharmaceutical output
- Electronics output dipped 7.1% due to continuing relocation of mobile device production
- Chemicals manufacturing dropped 6% as a result of maintenance shutdowns in petroleum and petrochemicals factories
- General manufacturing output dropped 0.9%

Only the transport engineering cluster posted a marginal 0.1% output increase in August, according to figures released by the Singapore Economic Development Board (EDB).

26 Sept 2008 - Singapore overtakes HK in financial centre ranking

Singapore has been ranked third in The Global Financial Centres Index (GFCI), behind London and New York, according to a new report published by the City of London.

Singapore gained 26 points in the index, more than any other top-20 centre, which allowed it to overtake Hong Kong. Hong Kong has been ranked fourth this time round.

The GFCI is updated every six months in March and September. This report is the fourth edition.

London and New York still lead the field and 'continue to be the only two truly global financial centres', the report said. Both cities, hit by the credit crunch, shed points in this round of the GFCI. But London's lead as the main banking centre in Europe is consolidated as Frankfurt and Paris have both declined in the ratings relative to other centres, the report noted.

In Asia, Singapore surged past Hong Kong to move into third place overall, albeit by only one point. Singapore is just ahead of Hong Kong in the banking, insurance and government & regulatory sub-indices and is also ahead in the business environment sub-index.

For full details, please click here.

23 Sept 2008 – Singapore's August inflation up to 6.4% on-year

Singapore's annual inflation rate was 6.4 per cent in August, boosted by housing and food costs, official data.

The August consumer price index (CPI) was higher than an average 6.2 per cent forecast in a poll of economists by Dow Jones Newswires but eased from July's 6.5 per cent and the 26-year peak of 7.5 per cent in April, May and June.

The Department of Statistics said housing costs rose an annual 12.8 per cent in August on higher electricity tariffs and rents, while food prices jumped 8.4 per cent, it said.

Singapore consumers paid 2.0 per cent more for transportation and communication, 4.8 per cent more for health care and 3.6 per cent more for recreation.

On a seasonally adjusted basis, August CPI was 0.1 per cent higher than in July. For the first eight months of the year it was 6.9 per cent higher than in the same period in 2007, the department said.

Singapore's de facto central bank has raised its CPI forecast for 2008 to 6.0-7.0 per cent from 5.0-6.0 per cent on higher oil prices and inflation in the countries it trades with.

For full details, please click here.

22 Sept 08 - Spring upbeat about SMEs' business growth

Small and medium enterprises (SMEs) in Singapore are still enjoying global demand in Asia, Europe, Latin America and Russia for their products and services despite the United States slowdown.

Firms in offshore and marine, oil and gas, logistics, aerospace, and even traditional industries like furniture and textiles have all reported healthy sales.

SPRING Singapore will help SMEs become more innovative and competitive by:

- cutting red tape and providing easy access to business services
- working with industry associations to upgrade manpower and technological capabilities
- providing funding to nurture innovative start-ups
- giving more assistance in financing, market exploration, management and technical know-how

16 Sept 2008 - Less red tape for Singapore’s finance sector

FINANCE sector professionals are set to benefit from changes to the law to cut red tape in licensing procedures.

The proposed changes to Securities and Futures (Amendment) Bill 2008 and Financial Advisers (Amendment) Bill 2008 will also streamline disclosure requirements for directors and large shareholders of listed companies.

Key amendments have been made in five broad areas:

(i) Capital markets licensing and business conduct;
(ii) Market misconduct enforcement;
(iii) Notification of changes in shareholdings of directors and substantial shareholders and offers of investments;
(iv) Markets and clearing facilities; and
(v) Regulatory flexibility to deal with market innovation.

For full details, please click here.

11 Sept 2008 - Singapore tops in making doing business easy: World Bank

Singapore kept its top ranking for the third year in a row as the easiest place in the world to do business, the World Bank said in a report that examines regulations and how they affect business, ranks 181 economies on the overall ease of doing business.

Filling out the list of the 10 easiest business environments was Hong Kong, Denmark, Britain, Ireland, Canada, Australia and Norway.

The top eight countries were in the same order as the 2008 list, but Australia and Norway traded places, according to the report produced by the World Bank and its private-sector financial development arm, the International Finance Corporation (IFC).

Singapore ranked first on international trade and employing workers, and second on protecting investors and closing a business.

09 Sept 2008 - Singapore office occupancy costs the third highest in Asia-Pacific

Singapore has recorded robust demand in the office sector for the first six months of this year.

According to a mid-year review by Colliers International which tracks office performance across 168 cities around the world, the Singapore office sector has seen high rents and low vacancy rates, with office occupancy costs the third highest in the Asia-Pacific region.

On average, annual Grade A office rents in Singapore fetched US$125.06 per square foot - behind Hong Kong and Tokyo. This placed Singapore seventh most expensive in the world.

It showed that while demand for office space across many markets worldwide was weak from 2005 to 2007, it has bounced back in the first half of this year.

Colliers said that developing economies remain largely unfazed by volatility in worldwide financial markets. It also said they are expected to continue to show solid growth and a healthy appetite for office space.

03 Sept 2008 - MOM seeks public feedback on amendments to Employment Act

The Singapore Ministry of Manpower (MOM) is reviewing the Employment Act, and is seeking feedback from the public on the proposed changes. Under the proposed amendments, MOM will revise the coverage of the Employment Act, benefiting at least 277,000 more workers in Singapore.

MOM said it is necessary to have a balanced approach between employment protection for workers and maintaining Singapore’s labour market flexibility and competitiveness in updating the Employment Act. Accordingly, four areas of amendments are proposed:

a. Revising the coverage of the EA to keep pace with changes in the workforce profile;
b. Reviewing employment standards and benefits, especially for vulnerable workers;
c. Enhancing penalties and enforcement powers, and streamlining administrative processes to facilitate compliance with employment standards; and
d. Rationalising existing provisions, and repealing outdated provisions to keep the EA up-to-date.

With these proposed changes, companies have to start readjusting their work systems. However both unions and employers have called the proposed amendments useful and balanced.

For more information, please click here.

28 August 2008 - Finance Ministry seeks feedback on proposed changes to tax legislation

The Ministry of Finance will have public consultations on the draft Stamp Duties (Amendment) Bill 2008 and the GST (Amendment) Bill 2008.

Some of the proposed tax changes are aimed at facilitating the logistics and manufacturing sectors, among others.

These include extending the removal of GST on the sale, lease and servicing of containers used in the international transport of goods.

The removal of GST will also be extended to the supplies of customised machinery used in the manufacture of goods for export.

The amendments will also make it easier for the government to collect tax.

For more information, please click here.

27 August 2008 - Bill passed to open up S'pore legal sector

Parliament passed the Legal Profession (Amendment) Bill to open the sector wider to foreign competition.

Pushing for liberalisation of the legal sector, the committee spelled out the gains to be had from opening up to foreign players. They include: supporting key sectors of the economy such as banking; raising Singapore legal practices to global standards; boosting offshore work for local lawyers; growing the export of legal services; reducing the legal brain drain; and raising Singapore's profile as a regional legal hub.

Tabling the Bill, Law Minister of Singapore highlighted some of the key changes which include: expanding the local work that foreign law practices can do; introducing a Qualifying Foreign Law Practice scheme; and beefing up the Joint Law Venture (JLV) scheme.

Foreign firms awarded Qualifying Foreign Law Practice licences - to be introduced at end-2008 - will be allowed to practise Singapore law through Singapore-qualified lawyers in 'permitted areas'.

With the passing of the Bill, foreign partners in JLVs can share up to 49 per cent of a constituent Singapore law practice's profits in permitted areas. The foreign partners can directly hire Singapore lawyers. Partners of a constituent Singapore law practice can also hold concurrent partnership and administrative positions in a constituent foreign law practice.

For more information, please click here.

26 August 2008 - July CPI hit 6.5%, above the 6.1% forecast

The Singapore Department of Statistics has just released the Monthly Consumer Price Index (CPI) for Jul 2008, Singapore has registered a higher than expected inflation rate last month with the consumer price index (CPI) jumping 6.5 percent in July over the year ago period.

Still the July’s CPI rise eased from a high of 7.5% in April, May and June, signaling that inflation is waning.

The 6.5 per cent jump in July’s CPI was mainly due to a rise in housing costs which surged 12.5 per cent on higher accommodation cost and electricity tariffs.

For more information, please click here.

21 August 2008 – Singapore Law Ministry introduces Moneylenders Bill

The Ministry of Law has introduced a Moneylenders Bill to repeal and replace the current Moneylenders Act enacted in 1959.

The ministry said a major review of the Act was necessary to ensure that the laws governing moneylending are updated, relevant, and in line with changes in consumer credit, business financing and the moneylending industry as a whole.

The changes proposed under the Bill include allowing licensed moneylenders to advertise and conduct marketing activities, and removing the cap on the maximum interest rate for secured and unsecured loans.

The Law Ministry said moneylenders will have greater flexibility to determine interest charges based on market forces and their risk assessment.

The proposed bill will also enhance the regulatory and enforcement frameworks for moneylending.

For more information, please click here.

14 August 2008 - Inflation should be main focus for Singapore – IMF

Containing mounting inflation pressures should be a priority for Singapore's authorities as economic activity is slowed by a global downturn, the International Monetary Fund said on Wednesday.

The Singapore central bank has been tightening its monetary policy for nearly a year, in the face of a jump in inflation triggered by rising food and oil prices.

According to the IMF, the global slowdown has had little effect so far on the Singapore financial system. Some trading related losses have been incurred as a result of the slowdown, the report said, but none that suggest inherent weakness in the system.

But the IMF has lowered its growth forecast for the Singapore economy to 4.5 percent in 2008 compared to 7.7 percent in the previous year.

The IMF said turmoil in global credit and financial markets has had a limited impact on Singapore's financial system. Credit spreads have widened, equity volatility has risen, and banks have incurred trading-related losses, including on structured credit products. Yet none of these developments have had systemic implications so far, it added.

For more information, please click here.

7 August 2008 – Singapore Government to Implement Unique Entity Number

FROM 1 January 2009, all Singapore-registered entities will be given a Unique Entity Number (UEN) as its identification number which replace all other identification numbers issued to them by different government agencies.

Singapore-registered entities will only need to remember one identification number when dealing with various Government agencies. This new UEN system will provide "greater convenience" to 350,000 organisations, which include businesses, companies, partnerships, societies, representative offices and trade unions.

More information on the use of UEN: www.uen.gov.sg.

6 August 2008 - PRs can use automated clearance soon

Over 440,000 permanent residents (PRs) here will be able to use the electronic immigration clearance channels from as early as next month.

About 143 million travellers pass through the borders yearly, of which over 50 million are Singapore citizens and PRs. With this new feature, it will take a fraction of the time required to have their passports scanned and their thumbprints matched.

Ahead of the Formula One race and the integrated resorts, which will both bring an extra flood of visitors, Immigration & Checkpoints Authority (ICA) will build 47 more electronic clearance lanes in the next year at six checkpoints. The Singapore Cruise Centre and Woodlands Checkpoint will also get the lion's share.

4 August 2008 – Expatriates rank Singapore as world’s best place to live

Singapore is ranked as the best place to live in the world in a survey of more than 2,000 expatriates by HSBC Bank. The Republic has also come in the top place for quality of accommodation and in the second place for luxury living. Its closest rival, Hong Kong, was ranked fifth overall, though it took top spot in terms of an expat’s ability to earn and save. The United Arab Emirates (UAE) and the United States came in as joint second-best overall destinations, which is followed by Belgium.

HSBC’s Expat Explorer Survey covers 2,155 expats across 49 countries to rank places based on the living standards, the ability to earn and save, a country’s popularity and the level of luxury experienced.

4 August 2008 – Singapore is the 13th most expensive city

According to Mercer’s Worldwide Cost of Living Survey 2008, Singapore is ranked as the world’s 13th most expensive city for expatriates and the 5th most expensive in Asia.

The survey covers 143 cities around the world, measuring the comparative cost of more than 200 items in each location, which include housing, transportation, food, clothing, household goods and entertainment.

Top 5 most expensive cities in Asia Pacific:
1. Tokyo, Japan (2nd)
2. Seoul, South Korea (5th)
3. Hong Kong, China (6th)
4. Osaka, Japan (11th)
5. Singapore, Singapore (13th)


More information: http://www.mercer.com/costofliving

1 August 2008 – Singapore Unemployment Rate Rises in Q208

In preliminary estimates, Singapore government has reported that the unemployment rate rose for the second consecutive quarter, mainly due to economic uncertainties. The unemployment rate stood at a seasonally adjusted rate 2.3% in June 2008, up from 1.7% in December 2007 and 2.0% in March 2008.

Employment has dropped from 73,200 in Q108 to 70,600 in Q208.

More information: www.mom.gov.sg

28 July 2008 – Forecast for Singapore’s Inflation Raised to 6% - 7%

Singapore’s inflation forecast for 2008 has been raised to 6%-7% up from the initial estimate of 5%-6%. Singapore government said this is due to the impact of external developments such as higher oil and food prices.

Inflation is likely to have peaked with the first-half average of 7.1%. It is expected to ease over the second-half of the year as:

1. the one-off impact of last July’s Goods and Services Tax (GST) hike diminishes
2. commodity prices increases are expected to be less steep
3. the commercial rentals appear to have peaked
4. the recent employment surveys reflect more cautious hiring
5. Singapore government ‘s monetary tightening policy will continue to cap cost and price pressure

Despite the upwards revision of inflation, Singapore government still maintains the full-year growth outlook to be at 4%-6%.

25 July 2008 - Singapore Housing market stagnates

The Urban Redevelopment Authority (URA) released the real estate statistics for the 2nd Quarter 2008 on 25 July 2008. Prices of private residential, office, shop and industrial properties increased by 0.2%, 0.7%, 0.7% and 4.1% respectively in 2nd Quarter 2008. Rentals of private residential, office, shop and industrial properties increased by 2.5%, 6.3%, 5.2% and 2.3% respectively in 2nd Quarter 2008.

The rates of increase in the prices and rentals of private residential and office properties have moderated in the 2nd Quarter 2008 as compared to 1st Quarter 2008. While the rate of increase in the prices of shop properties has also moderated in the 2nd Quarter 2008, the rate of increase in the rentals of such properties has increased in the period as compared to 1st Quarter 2008. For industrial properties, prices have increased at a faster pace in 2nd Quarter 2008, while increase in rentals moderated in the period as compared to 1st Quarter 2008.

The latest figures also provided an update on the supply in the pipeline to meet demand over the next few years. For the office sector, there was a supply of about 1.52 million sq m Gross Floor Area (GFA) of office space from various Government and private land sources in the pipeline. Of these, 46,480 private residential units and 1.12 million sq m GFA of office space are expected to be completed between 3rd Quarter 2008 and 2011.


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11 July 2008 – Singapore Economic Growth in Q208 Eased to 1.9%

Singapore government announced that real GDP rose by an estimated 1.9% on a year-on-year basis in Q208, down from 6.9% in Q108. The slowdown chiefly reflected a sharp contraction in biomedical manufacturing output. Excluding the biomedical sciences (BMS) cluster, industrial production grew moderately.

Manufacturing slid 5.6% in Q2, down from a 12.7% growth in Q1. Electronics also experienced some decline due to a weakening foreign demand.

However, other sectors such as transport engineering and chemicals continued to grow. In addition, the construction sector is estimated to have expanded by 15.2% in Q208, following a 16.9% expansion in the preceding quarter.

The services producing industries are estimated to have grown by 6.9% in Q208, compared with 7.6% in the previous quarter. Growth was led by the financial services and business services sectors. Sectors such as wholesale & retail trade and transport & storage also posted healthy growth during the quarter.

On a quarter-on-quarter seasonally-adjusted annualised basis, real GDP declined by 6.6% following an increase of 15.6% in the previous quarter.

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11 July 2008 – SGX Proposes to Change its Listing Rules with more Products & Transparency

Singapore Exchange Ltd (SGX) is inviting public comment on its latest proposed changes to securities listing rules.

Key proposals By SGX

• Allow life science companies with no financial track record, and investment funds in the private-equity space and “blind pool funds”, to list on the exchange.

• Require new IPOs to have at least 500 public shareholders, and for secondary listings to have at least 500 shareholders worldwide.

• Impose a minimum issue price of $0.20 on reverse takeovers, to level playing field with IPOs.

• Require companies seeking fundamental change of principal business to get shareholders’ approval first.

• Introduce disclosure requirements for acquisition of businesses and assets where profit guarantees are provided by vendors.


For more info, please click here.

9 July 2008 – Older CBD offices at $6-9 psf a month

The average grade A office monthly rental in Singapore reached $18.80 psf in Q2, while vacancy rate is only 0.6 % for the premium space.

Office spaces ranging from a few hundred square feet to three thousands square feet are still available in older buildings in the CBD. For example, monthly rents at Cecil Street, Shenton Way and Tanjong Pagar range from $6 psf to $9 psf.

These buildings are mainly older and have smaller floor plates. They are also sandwiched between other buildings and offer very limited or no car park lots in the building.

3 July 2008 – Manufacturing shows signs of recovery from Q108 slump

Rents and occupancy rates for hi-tech and business park space have increased in Q208 due to spillover demand for office space, property consultant said. Rents for factories and warehouses are on the rise as well.

It is reported that the average Singapore hi-tech monthly rent rose 6.8% quarter-on-quarter to $3.15 psf in Q2. The increase was 34% year-on-year.

For factory space, the average monthly rent for a ground floor unit rose 3.3% to $1.55 psf in Q2.

The average capital value of ground floor units in 60-year leasehold strata-titled factories lifted up about 3% quarter-on-quarter to $302 psf.

Ground-floor units in warehouses have shown a 3.3% increase in average monthly rent to $1.55 psf in Q2.

3 July 2008 – Singapore Government to introduce Long Term Pass Card to Foreigners

Singapore will introduce a new Long Term Pass (LTP) card to all foreigners residing in Singapore on Student's Pass (STP), long term visit pass, Employment Pass (EP) and Dependant's Pass as part of the Government's initiative to enhance the national security of Singapore. The card will be introduced in phases from the second half of this year. Current holders of long term visit passes and STPs will change to the LTP card from Q209 when they renew their passes. A new Employment Pass Service Centre (EPSC) will also be set up in Q209 to register and issue LTP cards to Work Permit and S Pass Holders.

The LTP card will replace the current stamp endorsement on the travel documents and the paper-laminated Disembarkation/Embarkation (or D/E) card issued to long term pass holders. The LTP card will have better security features compared to the present paper-laminated card. It will contain similar biometric features as those in the Singapore National Registration Identity Card (NRIC) to provide a secure means of identifying individuals and facilitate travel.

More details, such as the actual design and security features of the LTP card, will be released closer to the date of implementation.

3 July 2008 – Manufacturing shows signs of recovery from Q108 slump

The purchasing managers index (PMI) shows that Singapore’s manufacturing industry has expanded in June for the first time in 3 months, with the electronics sector bouncing back from May to 51.7, an increase of 2.3 points.

The PMI rose to 50.6, up 1.6 points over the previous month, lifted by higher production output and stocks of finished goods, as well as higher inventory level.

Figures also indicated that overseas demand has cooled, and the overall new orders were boosted mainly by domestic rather than overseas demand; which raise concerns of slower growth in the second half of 2008.

2 July 2008 – Singapore Factory Output Down 12.8% in May

The government reported that Singapore’s industrial production in May has dropped an unexpected 12.8% in May 2008 on-year, with biomedical output experiencing the highest drop of 55.1%, the biggest fall in 7 years.

Precision engineering dropped by 4.8% on-year, transport engineering jumped by 13%, electronics and chemicals grew by 3.8% and 2.2% on-year respectively.

Singapore government also reported a 3.4% growth on-year in general manufacturing.

On a seasonally-adjusted basis, output fell 5.7% from April 2008.

2 July 2008 – Flash estimates for Q2 show overall Singapore private home prices flattening

Singapore government released estimates for the Q2 2008 price index for private residential property, with prices rising 0.4% in the quarter, compared to 3.7% increase in the previous quarter.

Prices of non-landed private residential properties increased by 0.2% in Core Central Region (CCR); 0.7% in Rest of Central Region (RCR) and 1.3% in Outside Central Region (OCR).

30 June 2008 - The Increase in Singapore’s Office Rents to Slow Down

The sharp escalation in office rentals has slowed down in Q2 this year with more cautious economic outlook.

The average monthly prime office rental in Singapore as at Q2 this year was $16.10 psf, which is only $0.10 higher than the Q1 figure. The average Grade A office rental has increased by $0.15 to be at $18.80 psf in Q2.

It is reported that, while new office developments being built are not expected to face difficulty pulling tenants, vacancies created in older properties from a departure of tenants in a “flight to quality” should create downward pressure on rents.

25 June 2008- Singapore’s Fourth University To Be Opened By 2015

Singapore’s university sector will see renewed efforts to boost its research and development (R&D) capabilities, with the focus on producing future engineering graduates.

The Singapore Government, realising the economic demands for graduates with broader skills and knowledge, wants a more inter-disciplinary approach to education and close partnership with related industries.

Engineering will be the launching ground for these tertiary academic partnerships.

The initial 3 disciplines offered are: Design and Architecture, Engineering and Applied Sciences and Business and Information Technology.

17 June 08- Singapore's May Exports Falls 10.5%

Singapore's non-oil domestic exports (NODX) for May 2008 fell 10.5% year-on-year and dived 9.8% from April 2008 when seasonally-adjusted.

Non-electronic exports contracted 12%, reversing a 9.7% rise in April. This was led by a 48.5% slump in pharmaceuticals and 2.6% dip in petrochemicals.

Electronics exports continued its descent since February with a decline of 8.5%, due to a 30.6% drop in consumer electronics and 12.6% fall in semiconductors.

May's NODX fall is the steepest month-on-month plunge since January 2006 and offsets the 1.6% gain in April, said International Enterprise (IE) Singapore.

16 June 08- Latest Singapore Economy Forecast for 2008

The Singapore government forecasted the economy growth to 4.7 per cent, which is 0.3 per cent higher the forecast earlier.

The annual GDP growth projection to an average 5.5, lower than the 6.3 projection Dec 07 and 5.6 per cent march 08.

From the poll conducted, CPI is forecasted an increase of 6 percent this year.

The growth forecast; construction-11.7 per cent, financial services- 11.7 per cent, manufacturing- 5.5 per cent.

16 June 2008- Labour Market, First Quarter 2008

Employment growth remained strong in Q1 08. Amid greater economic uncertainties, unemployment rose in Mar 08 from a quarter ago, but remained lower than in Mar 07.

Total employment grew by a record 73,200 in the quarter, compared to 62,500 in Q4 07 and 49,400 in Q1 07. Services led with employment gains of 46,500 in Q1 08. Driven by the growth in building activities, construction added 14,500 workers, continuing the rapid increase of the earlier quarters. Manufacturing posted gains of 11,800.

The overall unemployment rate rose from a seasonally adjusted 1.7%1 in Dec 07 to 2.0% in Mar 08, while the resident unemployment rate rose from 2.4%1 to 2.9%. Nevertheless, the unemployment rate in Mar 08 was still lower than a year ago when the rate was 2.8% (overall) and 3.8% (resident).

Retrenchment rose to 2,274 in Q1 08, higher than 1,966 in the previous quarter and 1,964 in the same quarter a year ago. The economy generated 38,200 job openings in Mar 08, higher than 37,400 in Dec 07 and 32,200 in Mar 07. The overall job vacancy rate averaged 2.5%, unchanged from Dec 07 but higher than 2.3% a year ago.

12 June 08- Singapore Inflation to climb above 8% - May or June

May or June inflation in Singapore is expected to climb above 8 per cent, but the risk of higher prices stifling economic growth is not imminent.

Inflation holds back economy growth but it will depend on real income decline. The income in Singapore is still pretty strong. Hence the economy is not at a stifle growth state.

The Singapore forecasted 5 to 6 percent, up from 4.5-5.5 per cent after the inflation hit a 26-year high of 7.5 per cent in April from a year earlier.

2 June 08- Peru And Singapore Sign Free Trade Agreement

Over 80% of domestic exports to have duty-free access.

The Peru-Singapore Free Trade Agreement (PeSFTA) signed on 29 May 2008 will give over 80% of Singapore's domestic exports to Peru duty-free access once it is enforced.

Another 8% of domestic exports will be covered over 5 years, while the remaining 11% will remain duty-free over 10 years. Key exports that will benefit include electronics, chemicals, plastics, machinery and steel-related products.

All Peruvian exports will have tariff-free access to Singapore immediately.

2 June 08- MAS Updates Guidelines on Internet Banking and Technology Risk Management

The Monetary Authority of Singapore (MAS) has updated the Internet Banking and Technology Risk Management (IBTRM) Guidelines following consultation with the industry. The Guidelines aims to assist banks in:

• Establishing a sound and robust technology risk management framework
• Strengthening system security, reliability, availability and recoverability; and
• Deploying strong cryptography and authentication mechanisms to protect customer data and transactions

The IBTRM Guidelines

27 May 08- Singapore's April Manufacturing Output Shrinks 5.7%

Manufacturing output for April recorded its largest slump in 10 months with a 5.7% decline due to sharp falls in electronics and pharmaceuticals production.

Compared with March, April's industrial output shrank 16.2%. Electronics output dipped 5%, dragged down by a 7.4% fall in chip production and a 25.1% drop in infocommunication and consumer electronics output. Pharmaceutical output shrank 27.9% due to a different mix of active ingredients produced, said the Singapore Economic Development Board (EDB).

Despite the poor showing, production for transport engineering grew 7.7% while marine and offshore engineering climbed 15.1%.

22 May 08- Singapore April CPI Rises 7.5%, 26-Year High

Singapore's April inflation accelerated at a faster-than-expected pace of 7.5 per cent from a year ago, matching a high reached 26 years ago due to higher housing, food and oil prices.

Consumer prices rose 0.9 per cent in April from March after seasonal adjustments, the Department of Statistics said in a statement on Friday. Economists had expected annual consumer prices to rise by 7 per cent in April according to a Reuters poll, above March's 6.7 per cent and matching the 7.5 per cent gain in March 1982.

Central banks from China to the United States are fighting rising inflation as higher oil and commodity prices push up consumer prices. A sub-index for housing costs gained 11.8 per cent in April from a year ago while food prices, which carry the largest weighting in the index, rose 8.5 per cent.

20 May 08- Tax Relief for Renovation Costs

Singapore’s Businesses can claim deductions on capital spending for renovation costs.

Available until 2012, the incentive enables businesses to obtain a tax allowance on qualifying expenditure on renovation and refurbishment.

Such expenses must be for purposes of trade, business or profession, except those relating to structural works and expansion of space.

The expense is to be written off over 3 years on a straight-line basis, subject to a maximum of S$150,000 every 3 years.

16 May 08- Singapore Government Accepts National Wages Council's Guidelines For 2008/2009

The Singapore government agrees with the National Wages Council (NWC) that pushing up wages to keep pace with high inflation would not be sustainable and would have an adverse impact on Singapore's competitiveness, especially in the light of the economic uncertainty.

The Government therefore strongly supports the NWC's recommendation of granting sustainable built-in wage increases and making greater use of variable payments to reward workers.

This will make the wage structure more flexible and responsive to sudden changes in the business environment, and will in turn help Singapore economy to remain competitive and achieve continued employment growth.

The Government also notes that the NWC has taken into account in its deliberations the extensive measures that the Government has introduced amounting to more than $3 billion that will help Singaporeans cope with the rising cost of living, especially the lower-income. Singapore is facing challenges of economic uncertainty and rising cost of living.

16 May 08- Petrol, Diesel Pump Prices Increase Again

Three cents increase for a litre of petrol and 10 cents for diesel.

The latest hike, which came on the heels of oil prices hitting above US$125 a barrel for the first time last week. This is the fourth since last month and the 10th consecutive climb since July last year.

16 May 08- Private Homes Prices Fell In April

Singapore‘s private home market weakened further in April as the number of sales dropping sharply from March.

271 units were launched in April with most of them in mass market projects. This was less than half of what was launched in March, and the lowest number since the government started releasing monthly sales figures last June.

Buyers took up 274 homes, down from the 301 sold in March. Prices also continued to dip, with the median price of new sales sliding 8.9 per cent to $943 per sq ft.

16 May 08- Great Singapore Sale 2008 may be Less Hot

Inflation, rising costs of living and global economic woes may affect the Great Singapore Sale (GSS) 2008 which will run from 23 May to 20 July

Goods and Services Tax hiked from 5 to 7 per cent in July 2007 after the GSS 2007.

13 May 08- 3 Top Audit Firms Set out to the LLP Route

3 of the Big Four audit firms in Singapore are on the route becoming limited liability partnerships (LLPs), with at least one of them expected to effect the restructuring quite soon.

Deloitte Singapore is like to be the first to do so. Another two companies on the route are KPMG and PricewaterhouseCoopers.

13 May 08- First-Quarter Profit Growth Slows To 11.2%

184 locally listed companies had reported results for the three months ended March 31. Their combined net earnings were up 11.2 per cent at $5.89 billion from last year, but 18 firms were in the red.

And it is not likely to change much soon, with analysts warning that corporate earnings may stay in the doldrums for some time yet.

Single-digit growth seems to be the most optimistic scenario.

Those downward revisions, especially for transport companies, look set to continue because of rising energy prices and raw material costs.

12 May 08- Business Expectation Survey for Service Sector

The services sector is cautious about the business outlook for the next six months ending Sep 2008.

23% of firms anticipates business situation to improve while a weighted 20% of firm’s projects less favourable conditions.

Majority of the firms (57%) expect business activities to remain at similar levels for the same period. This results in a net weighted balance of 3% of firms expecting a positive outlook.

6 May 08- Singapore's Purchasing Index Lowest In 5 Years

Manufacturing industry contracts for 2nd consecutive month in April.

The manufacturing industry contracted for the 2nd consecutive month, posting a Purchasing Managers' Index (PMI) reading of 49.3. This was a 0.1 point drop from March and is the lowest in 5 years.

The contraction was due to declining new orders, production output and employment. A reading below 50 indicates the industry is shrinking.

The PMI for the electronics sector was 50.2, 0.5 less than March. However this was its 21st consecutive month of expansion fuelled by new overseas orders growth.

The manufacturing industry accounts for 25% of Singapore's economy

5 May 08- Q108 Employment Condition

Employment growth remains strong; Unemployment up; Retrenchments unchanged

Employment continued to grow strongly as the economy picked up pace in the first quarter of 2008. Preliminary estimates show that employment grew by 68,400 in the first quarter this year. This is higher than the increase of 62,500 in the previous quarter and 49,400 in the first quarter of 2007.

Services continued to lead the employment gains, adding 42,900 workers in the first quarter of 2008. Driven by the growth in building activities, construction increased its workforce by 13,400, continuing the rapid increase of the earlier quarters. Manufacturing posted gains of 11,900.

29 Apr 08- Contact Singapore for Global Talents and Investors in Singapore

The Singapore Government launched Contact to attract global talent to work, invest and live in Singapore.

The new Contact Singapore will be a one-stop centre for those who wish to pursue a rewarding career in Singapore as well as individuals and entrepreneurs keen to invest or initiate new business activities here.

The new Contact Singapore would mount extensive efforts to reach out to global talent, including Overseas Singaporeans. A new Contact Singapore job portal, with available jobs from Singapore-based companies spanning from the technology to financial sectors, was created together with other economic agencies and industry partners.

Jobs could be viewed and resumes submitted online by anyone wishing to work in Singapore, including Overseas Singaporeans.

Contact Singapore

28 Apr 08- Monthly Manufacturing Performance - March 08

Manufacturing output this March rose 16.9% compared to March last year. The growth came mainly from a surge in output of the biomedical manufacturing cluster.

The three-month moving average growth for March was 12.4% compared to the same period last year. The month-on-month seasonally adjusted index for March fell 0.6% from February. Total manufacturing output for the first three months of 2008 increased by 12.4% over the same period in 2007.

23 Apr 08- Singapore March Inflation Rises 6.7% - 26-Year High

Singapore inflation increased to 6.7 per cent in March from a year ago to a 26-year high. Consumer prices in March increased by 0.3 per cent from February after seasonal adjustments. On a three-month moving average, the consumer price index (CPI) was up by 0.6 per cent.

Economists estimated the annual consumer prices to climb above January's high of 6.6 per cent - the highest level since 7.5 per cent in March 1982 - due to record oil and food prices.

Food prices, which make up 23 per cent of the index, rose 7.6 per cent in March from a year ago, following February's 6.7 per cent increase. From February, food prices dropped 0.2 per cent.

Transport and communication costs up 7.9 per cent in March from a year earlier. From February, transport and communication prices fell 0.2 per cent. Housing costs climbed 8.1 per cent from a year earlier. From the previous month, housing prices dropped 0.7 per cent.

21 Apr 08- Singapore Corporate Finance Deals Doubled In Q108

Corporate finance deals struck in Singapore soared in value in the first quarter this year though the number was reduced compared with a year ago.

Singapore was host to 142 corporate finance deals involving US$25.8 billion in Q108. The total deal value is a 106 per cent jump from the US$12.5 billion spread across 182 deals in Q107.

18 Apr 08- Japan and ASEAN Signed New Free Trade Pact

Japan and ASEAN Signed New Free Trade Pact ASEAN and Japan have completed the signing of the ASEAN-Japan Comprehensive Economic Partnership (AJCEP) Agreement.

Agreement covers 96% of Singapore’s trade volume with Japan; lower tariffs and cumulative rules of origin will improve market access and bring benefits to both businesses and consumers.

Tariffs for 173 products out of Singapore's top 200 items traded with Japan will go down to 0% when the Agreement enters into force. This means immediate tariff elimination on 91% of Singapore’s total trade volume with Japan.

18 Apr 08- Singdollar Hits New High

The Singapore dollar rose to a record high, as Asian currencies advanced, spurring speculation that the Republic's central bank can allow gains to slow inflation without losing export competitiveness.

Singapore's currency, managed against an undisclosed basket of currencies of its major trading partners, was the second-best performer among the 10 most active Asian currencies outside Japan as the greenback fell.

Stocks in the region, including Singapore's, rose for a third day, as better-than-forecast profits at United States banks eased concerns that slowing global growth would dent earnings.

The dollar's weakening against the majors forms a very supportive factor for Singapore's currency to strengthen against the US dollar.Risk appetite is gradually coming back, too, and with Asian currencies appreciating, it forces some gains in the Singapore dollar.

Singapore's currency rose to an all-time high of $1.3495 against the US dollar before slipping back to $1.3504. China's yuan rose to its highest against the US dollar since its July 2005 revaluation.

The Monetary Authority of Singapore last week moved to allow a one-off jump in the Singdollar's value to curb inflation. The currency has gained 2.2 per cent since April 9, the day before the move.

18 Apr 08- Inflation and Singapore Economy are Public Main Worries

The price of crude oil went above US$115. The continual increase in the oil pricein Singapore is no long something new.

The inflation and the flaccid US economy are the public’ main concern. Input prices are now rising faster than output prices.

The soaring local currency is not helping, either. Some companies may be booking extensive losses after last week’s surprise move Monetary Authority of Singapore to recentre the Sing dollar’ trading band.

Despite the rising of oil cost and margin squeeze, many companies still show good performance but poor domestic export numbers of March reflected that global demand was slowing down.

On a year-on-year basis, NODX contracted by 5.9 per cent in the month, compared to the 6.2 per cent growth in February 2008. On a 3-month moving average year-on-year basis, NODX grew by a slight 0.6 per cent in the month, following the 1.3 per cent increase in February.

15 Apr 08- Companies Find It Tough Selling Shares In Singapore

The Singapore share market is still tough although the sentiment on Singapore Exchange has improved after the lows in March. Public is still reluctant to invest and this caused difficulties in companies trying to sell their share.

Two companies China Zaino and Eratat registered their prospectuses last week and launched initial public offerings and public showed clear sign of low demand. The share placements have become a hit and miss affairs

Investors prefer to buy shares in bigger and established trading companies and the valuation of the shares do affect the failure or success of the share sale.

11 Apr 08- Continued Growth Of Singapore's Economy In Q108

Gross Domestic Product expands 7.2% year-on-year.

Singapore's Gross Domestic Product (GDP) grew 7.2% year-on-year in Q1 of 2008 based on advance estimates. Quarter-on-quarter seasonally adjusted annualised GDP expanded 16.9% after dropping 4.8% in the previous quarter.

Despite a worsening US economy, the Republic's growth was fuelled by sustained economic activity in the manufacturing, construction, financial services and transport hub service sectors.

Highest growth came from manufacturing, which rose 13.2% compared with 0.2% in Q4 2007. Construction grew 14.6% after a 24.3% gain last quarter, while services producing industries expanded 7.6% after 7.7% growth last quarter. The advance figures were released by the Ministry of Trade and Industry (MTI). Preliminary GDP estimates for Q1 2008 will be released in May.

11 Apr 08- MAS Will Re-Centre The Exchange Rate Policy

The Monetary Authority of Singapore (MAS) released its twice-yearly monetary policy statement.Since April 2004, MAS has maintained the policy of a modest and gradual appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band. In October 2007, the policy was tightened through a slight increase in the slope of the band.  The gradual appreciation of the S$ exchange rate over the past few years has helped to mitigate inflationary pressures.Since the last policy review, the S$NEER has fluctuated in the upper half of the policy band.  (Chart 1)  This occurred against the general weakness of the US$ and the concomitant strengthening of other currencies including the yen and euro.  Amidst the cuts in US interest rates by the Federal Reserve, the domestic three-month interbank interest rate fell from 2.75% as at end-August 2007 to 1.31% at the end of March 2008.  

The Advance Estimates released by the Ministry of Trade and Industry today showed that GDP expanded by 7.2% on a year-on-year basis in Q1 2008, bringing average growth to 6.3% in the six months from Oct 2007 to Mar 2008. Singapore’s economic growth is likely to ease in the next few quarters supported by the continued expansion in a number of industries. Singapore monetary policy
Strong Q108 GDP numbers seen giving MAS more room to tackle price rises.The Singapore economy is expected to grow at a more moderate pace this year following several years of robust expansion.  At the same time, CPI inflation has increased and is expected to remain elevated in the first half of this year.  Even as the downside risks to economic growth have increased, global inflationary pressures remain high.Against this backdrop of continuing external and domestic cost pressures, an upward shift of the policy band at this point will help to moderate inflation going forward, while providing support for sustainable growth in the economy. 

MAS will therefore re-centre the exchange rate policy band at the prevailing level of the S$NEER.  There will be no change to the slope or width of the policy band.

8 Apr 08- Home Leases Stagnant For Two Years

Residential leasing transactions fell about 15% lower at 28,928 in 2006 and 28,893 in 2007, versus 2005. Leases are generally renewed on a 2-year basis, the drop between 2005 and 2006 should imply rise in 2008 but only 3495 transaction took place in the early 2008.

2 Apr 08- 4.2% Rise In The Price Of Private Residential Property In Q108

The Singapore government released the flash estimate of the price index of private residential property for Q108.

Based on the estimated price index of private residential property, prices rise from 170.8 points in the 4th Quarter 2007 to 178 points in the 1st Quarter 2008. This represents an increase of 4.2%, compared with the 6.8% increase in the previous quarter.

On the supply side, as at 4th Quarter 2007, there are about 64,900 private residential units in the pipeline, of which about 56,100 new private housing units are expected to be completed between 2008 and 2011. About 38,300 units of the supply in the pipeline (or 59%) have not been sold by developers yet.

Prospective home-buyers are advised to take into consideration the ample pipeline supply of private housing when making decisions on property purchase.

27 Mar 08- Manufacturing Output Grows 10% On Year In Feb

Surge in electronics and transport engineering sectors.

Singapore's factory output in February rose 10% from a year ago driven largely by strong production in the electronics and transport engineering sectors.

Electronic exports expanded 12.3% in February, up from the 8% in January. This was due to increased exports to China. Transport engineering also increased 17.2% on-year, reversing a 3.2% drop in January.

Biomedical output, which includes pharmaceuticals, eased from 60.3% in January to 9.3% this month, said the Singapore Economic Development Board (EDB). The pharmaceutical segment is expected to drive manufacturing this year.

Singapore's economy expanded 7.7% in 2007 but the trade ministry foresees a slower growth of 4 - 6% for 2008 in light of increased risks from the United States, a major buyer of Singapore's exports.

25 Mar 08- CPI up by 6.5% in Feb 2008

The consumer price index in February 2008 rose by 6.5 per cent over January 2008.

Food prices increased by 0.1 per cent on account of dearer cooked food, fresh fish, vegetables, pork and fruits. Reflecting higher accommodation costs, housing cost went up by 0.5 per cent.

Higher cost of holiday travel raised the “recreation and others” index by 0.4 per cent. Health care cost rose by 0.5 per cent due mainly to higher hospitalisation fees and dearer Chinese herbs. Costs of transportation and communications fell marginally by 0.1 per cent as result of lower car prices.

PetroChina is looking building a refinery "of at 400,000 to 500,000 barrels per day. This is comparable with the largest here- ExxonMobil's 605,000 bpd refinery on Jurong Island and Shell's 500,000 bpd one on Pulau Bukom.

24 Mar 08- Non-Oil Domestic Exports Rise 7.3% In February

Strong performance by pharmaceutical and petrochemical exports.Singapore's non-oil domestic exports (NODX) for February grew 7.3% year-on-year, said the government

Bigger shipments of pharmaceuticals, metallic ores and scrap, petrochemicals and measuring instruments fuelled the growth in NODX against the continued decline in electronics exports.
The month-on-month seasonally adjusted NODX fell 0.4% in February compared with a 8.4% increase in January. This was largely due to a 1.3% drop in February electronics exports, which has seen a slump since the same month a year ago.

The largest NODX markets were Hong Kong, Japan and South Korea. Conversely, exports to the United States, Malaysia and Indonesia dropped amid a worsening US economy. NODX shipments to the US fared its worst since September 2007, falling 5.2% in February following a 4.4% drop in January.

20 Mar 08- Steel Price Soars

The price of steel almost doubled since Jan 07 and this affects the construction developments in Singapore. The hike was rooted by the increase of the price of steel production’s raw materials such as iron ore, scrap, coking coal, etc.

The proportion of steel cost against total construction cost has gone up from 10 per cent to 15per cent over the same time.

13 Mar 08- January Manufacturing Data Revised Following Computation Error

The Singapore Economic Development Board (EDB) revised its January manufacturing data to reflect growth of 11.7% from a year ago instead of the 6.9% reported earlier. This was due to a computation error in the application of the price deflator data.

A 60.7% year-on-year surge in the biomedical manufacturing cluster output has boosted the overall January manufacturing growth. The seasonally adjusted, month-on-month growth for January was also revised to 9.9% from 5.1%.

The biggest change was seen in the electronics sector, with an annual expansion of 8.7% instead of an annual contraction of 6.7%. Semiconductor output within the sector was revised to 6.8% growth from a 10.1% drop, while data storage production output grew 14.4% over a 6.3% fa

10 Mar 08- Singapore Banks Cutting On Deposits

Not only that the inflation apparently climbing up and reached a 26-year high of 6.6 per cent in Jan in Singapore, banks are cutting more on the deposit rates.

Early March, DBS cut its fixed deposit (FD) rate to 0.9 per cent for a 12-month deposit of $1 million. The latest revision is less than half of the 2.02 per cent it offered on Jan 2. OCBC lowered its 12-month FD rate to 1.2 per cent from 1.4-1.8 in 2007.

In Jan- the latest month for which data is available, saving and demand deposits jumped 24 per cent to 143.1 billion due to high bonuses paid out by companies after a robust year

4 Mar 08- PetroChina Planning Refinery in S'pore

China's PetroChina- the world's largest listed company by capitalisation- is planning to develop a world-scale refinery in Singapore. The project is expected easily to run onto billions of dollars.

PetroChina is looking building a refinery "of at 400,000 to 500,000 barrels per day. This is comparable with the largest here- ExxonMobil's 605,000 bpd refinery on Jurong Island and Shell's 500,000 bpd one on Pulau Bukom.

4 Mar 08- S$20m Solar Capability Scheme

The Singapore government has announced more initiatives to fuel growth in the energy sector in Singapore.

They include a S$20 million Solar Capability Scheme to encourage businesses to diversify their energy sources.

Singapore can now do more to grow the clean energy sector which will help to mitigate the risks of high oil prices and to ensure energy security. The new Solar Capability Scheme will help to spur more innovative approaches and capability development, in the architecture, design and integration of solar panels as part of green building of solar panels for new buildings.

29 Feb 08- High January Inflation Consistent with Official Forecast

The Singapore government said that the 6.6 per cent year-on-year increase in the Consumer Price Index (CPI) in January 2008 was consistent with the official inflation forecast of 4.5 to 5.5 per cent for 2008 as a whole.

The higher year-on-year increase in CPI of 6.6 per cent in January 2008 (compared to 4.4 per cent in December 2007) largely mirrors a low base twelve months ago. The CPI in January 2007 was 0.8 per cent lower than in December 2006. One reason was the service and conservancy charge (S&CC) rebates given in January 2007, which lowered housing costs. [Other factors included lower electricity tariffs and transport costs in January 2007.] But this year, S&CC rebates were given in December 2007 instead of January 2008.

Another reason for the high January 2008 inflation figure is the revision to the Annual Value (AV) of HDB flats. As has been explained in Parliament, this does not actually affect expenditures of most Singaporeans, who own the homes they live in.

27 Feb 08- Singapore Received 883,000 Visitors in Jan

Singapore tourism received 883,000visitors for Jan 08. 52 per cent of the figure was contributed by the visitors from Indonesia, China, Australia, India and Japan, which were the top visitor-genrating countires.

Arrival from China surged 42.3 per cent on year to 108,000 visitors.

25 Feb 08- 2010 Youth Olympic Games Will Boost Tourism And Local Business

Given the international publicity and exposure, the 2010 Youth Olympic Games (YOG) is set to benefit the tourism and private sectors in Singapore.

Businesses in the event management, services, hotels and construction industries are expected to gain from the spin-off benefits of the event. Also, the Singapore Tourism Board (STB) is predicting an estimated 15,000 visitor arrivals for the YOG. From this, it forecasts that the Games will generate a minimum of 180,000 visitor nights for Singapore, even more than when Singapore hosted the IMF/World Bank meeting in 2006.

15 Feb 08- Singapore Budget 2008- Creating A Top Quality Economy Building A Resilient Community

The Minister for Finance, Mr Tharman Shanmugaratnam, delivered the Budget Statement for the Financial Year (FY) 2008 on 15 February 2008. Budget 2008 centred on four key thrusts. They were:

a. To provide a full range of education and training opportunities for people to find and stretch their potential, in school and in their post-secondary education, as well as throughout their working years;

b. To spur the growth of innovative enterprises with significant incentives for them to create new ideas and products;

c. To adjust tax policies so that Singapore stays competitive, support the growth of SMEs, encourage risk taking as well as strengthen Singapore’s role as a financial and business hub;

d. To continue to build a resilient community through strengthening financial security for retirement, and helping the less well-off members in our society.

In his speech, Minister Tharman reported an expected fiscal surplus for FY2007 of $6.4 billion, compared to a projected deficit of $0.7 billion at the start of the year. The strongly improved budget outturn reflected faster than expected economic growth in 2007 and an exceptionally buoyant property market.

He expected the economy to grow by 4.0% to 6.0% in 2008, amidst increasing uncertainty in the global economy. The overall budget balance for FY2008 is expected to be a deficit of $0.8 billion. There would not be a need to draw on past reserves as the deficit could be fully financed by funds accumulated since the new Government took office in May 2006.

15 Feb 08- Singapore Manufacturing Sector Is Expected To Moderate

Singapore manufacturing sector is expected to moderate this year, said the government. It would definitely be lower under the pessimistic scenario but there are certain manufacturing industries that will be relatively more resilient under the scenario of a deeper slowdown.

There is a good potential for a rebound in the output in the first quarter as the 2007 quarter four’s slump was largely due to the sharp contradiction in the volatile biomedical cluster. Electronic has already gone into a period of a slow growth and there are signs of recovery.

13 Feb 08- 2007 Singapore Budget Surplus Expected to Hit Eight-Year High

Good corporate profits, strong wage growth and a rip-roaring property market in Singapore are likely to mean that public revenues exceeded expenditures by between $4 billion and $5 billion, say economists.

The Government is widely expected to report its largest Budget surplus since the dot.com boom, after a robust economy boosted tax collections last year.

This would give the Government considerable leeway to be extra generous with one-off financial aid measures to help the elderly and poor cope with escalating living costs, the experts said. Due to strong economic growth, tax collections will be higher than expected.

12 Feb 08 - Singapore's Gas Market To Be Liberalised

The Singapore government had announced the measures to deregulate gas market which take will effect on 14 Feb. The amended Gas Act will cover technical and operational aspects of rules for gas installations to the licensing of gas service workers.

The Act will allow both gas importers and retailers to have open, competitive access to Singapore's gas pipeline grid. This includes the upcoming liquefied natural gas (LNG) terminal on Jurong Island. Natural gas imports will apparently be accessible to all industries from a common gas pipeline grid. This aid in preventing any power outages caused by a cut in gas supply from a single source. The changes will take place around mid-2008, when a gas network code is ready.

6 Feb 08- Singapore Banks may Face More Writedowns

Local lenders are expected to be hit by the sub-prime losses in the US. A continuing stream of sub-prime losses coming from banks in the US means leaders here are likely to be affected.

On the bright side, the banks’ core business of lending in expected to shine. Analysts say loan growth will come in strong in quarter 4 2008. Property-related loan- was up 23.4 per cent from a year ago.

6 Feb 08- US to Join 4 Asia-Pac Countries in Trade Pact Talk

The United States is negotiating with Trans-Pacific Strategic Economic Partnership Agreement (TPSEP, (TPSEP) including Singapore on the investment and financial services chapters of a multilateral agreement.

The TPSEP consists of Singapore, Brunei, Chile and New Zealand. The US is exploring the option of joining the full agreement and the negotiation will take place in March.This, it says provides a broader Asia-Pacific trade intergration “with like-minded counties committee to a high standard agreement”.

Under TPSEP, tariffs of 90 per cent of trade in goods between the parties eliminated and tariffs on all trade products are eliminated within 12 years

5 Feb 08- Singapore Foreigner Growth

In the past 5 years, the figure tripled as fast as the number of Singaporeans and permanent residents. Foreigners made up 22 per cent of total Singapore population. From 2006 to 2007, the number of foreigners accelerated by 15 per cent to 1,005,100. The drive to attract local talent to make up the Singapore population shortage is apparently bearing fruit.

5 Feb 08- 16 Sponsors Earn Spurs

Singapore transformed its junior board from exchanged-regulated Sesdaq into sponsor-supervised Catalist last December, the Singapore Exchange (SGX) yesterday rolled out the pioneer group of 16 approved sponsors under the new Catalist rules.

The pioneer batch consist 10 full sponsors that will help companies to prepare for an initial public offer (IPO) on Catalist as well as providing post-IPO guidance, and six continuing sponsors that will advise already-listed companies on their listing obligations. A total of 72 registered professionals from the sponsors have been approved.

The list of approved sponsors is a mix of local and international investment banks, securities broking houses, and corporate advisory firms.

4 Feb 08- Singapore Inflation This Year Could Go Past 5%

The Singapore government announced yesterday that the inflation for first half will be high and overall might past 5% this year. November 2007, the government estimated that the inflation could be between 4 and 5% for the first quarter.

The inflation phenomenon is result of increased demand, disease, adverse weather- especially China and even the diversion of crops towards fuel production. The nest few years are expected to be challenging and Singapore need to stay competitive and grow.

30 Jan 08- Singapore-Qatar Reaffirmed Their Economic Ties

Singapore and Qatar reaffirm their economic ties yesterday when Singapore Senior Minister met Qatar’s Deputy Prime Minister in Qatar for discussion of future cooperation especially in the energy market.

Singapore now has several investment projects in Qatar, especially the energy industry. Keppel is Qatar’s strategic partner, holding 20% of stake in the one of the biggest dry-dock developments in Middle East which costs US$450 million.

29 Jan 08- Spring S$60 Million Plan- Business Leaders Initiative

The Chairman of the Spring Singapore announced an S$60 million plan, Business Leaders Initiatives, BLI to develop Small and Medium Enterprises leaders. BLI is expected to produce some 1,000 SME bosses and senior executive and groom 500 aspiring executives into business leaders. Each group cost S$20 million.

The first prong, Advances Management Programme which the Spring associate with the National University of Singapore (NUS), Nanyang Technology University (NTU) and Singapore Management University (SMU) to develop executive MBA and other short business management and leadership courses for SME CEOs and senior executives.

Management Development Scholarship, MDS is the second prong and jointly sponsored participating enterprises. Upon graduation from the part-time of full-times MBA courses from NUS, NTU and SMU, the MDS scholar will serve the participating companies.

Last is the Executive Development Scholarship (EDS) for undergraduate studies at NUS, NTU or SMU for excellent students who look forward to set up business or join a local growth-oriented enterprise. The EDS scholar will spend three years in Spring while working along with entrepreneurs and SME leaders.

29 Jan 08- Singapore Job Openings for Sept 2007 Hit 7-Year High

2007’s rapid economic growth created 30,923 unfilled vacancies in private sector. The unfilled vacancies in both public and private sectors hit 35,489 which was 19 percent exceeding 2006.

Skilled workers such as professionals, managers, executives and technicians accounted for 45 per cent of the total unfilled vacancies. Demand for accounting and auditing positions rose, creating a shortage of skills in these sectors. The service sector produced 71 per cent of the total job openings in September 2007, increased by 23 per cent since 2006.

29 Jan 08- Apex Licence to Facilitate Singapore Traders

The Singapore government has announced details of the Apex licence, a new and simplified licensing system implemented by Singapore Customs for Singapore traders that will be introduced in April. Apex licence is a single permit for traders to involve in manufacturing, storage and retail of duty-suspended products and at different locations.

This new system enable traders to improve their management system over the current arrangement that requires them to obtain separate licences for different goods according to their type, whether they are dutiable or not, the nature of activity they are engaged in and the location of operation.

The Apex licence reduces the costs of licensing fees and provides greater the traders’ flexibility in the storage and movement of goods between locations. To qualify for the licence, traders must possess a good track record and an inventory system that is reliable.

28 Jan 08- Singapore Manufacturing Performance – Dec 2007

Manufacturing output contracted by 1.7% in December 2007 compared to output in December 2006. There is a decrease in the biomedical manufacturing cluster and this offset the growth of other clusters. The three-month moving average index in December 2007 was inclined by 0.2% compared to the corresponding period in 2006. For the seasonally adjusted month-on-month index for December, there was a plunge of 4.7% from November. In spite of the December slowdown, the manufacturing output of 2007 increased by 5.8% over 2006.

28 Jan 08- Summary of 2007 Singapore Real Estate Statistics

Prices of Singapore private residential, office, shop and industrial properties escalated by 6.8%, 8.0%, 3.4% and 6.0% respectively in the 4th quarter 2007, bringing the overall increase from end-2006 to the end of 4th quarter 2007 to 31.2%, 32.6%, 13.2% and 22.7% respectively.

Rentals of private residential, office, shop and industrial properties grew by 6.8%, 10.9%, 0.6% and 7.8% respectively in the 4th quarter 2007, bringing the overall increase from end-2006 to the end of 4th quarter 2007 to 41.2%, 56.1%, 18.2% and 32.0% respectively.

26 Jan 08- Two New Work Pass Categories for Foreigners in Singapore on Short-term Assignments

From 1 February 2008, the Immigration & Checkpoints Authority (ICA) will no longer issue Professional Visit Passes (PVP) to foreigners working in Singapore on short term assignments.  MOM will instead introduce two new Work Pass categories for such foreigners - the Miscellaneous Work Pass and the Work Permit (Performing Artiste).

In addition, MOM would continue to exempt foreigners currently exempted under the PVP scheme as well as those performing two new short-term activities from having to obtain a Work Pass. 

Miscellaneous Work Pass

Instead of applying for a PVP, the following groups of foreigners will need to apply for the Miscellaneous Work Pass with effect from 1 February 2008:
i) A foreigner who is involved in activities directly related to the organisation or conduct of any seminar, conference, workshop, gathering or talk concerning any religion, race or community, cause, or political end;
ii) A foreign religious worker giving talks relating directly or indirectly to any religion; and
iii) A foreign journalist, reporter or an accompanying crew member not supported/sponsored by any Singapore Government agency to cover an event or write a story in Singapore.

24 Jan 08- Revised India CECA Takes Effect

The free trade pact between Singapore and India, Comprehensive Economic Corporation Agreement (CECA)-has been through a review. The revised deal, which covers a wider variety of products, came into effect on Jan 15.

A government statement on Dec 21 announcing the changes, said tariff concessions had been further liberalised for Singapore’s export to India. Goods like base metals, machinery and mechanical appliances, chemicals, plastic and rubber articles and textile and textile articles would enjoy lower tariffs, it said.

“The revised concessions were the result of the first CECA review, which was concluded on Oct 1, 2007.” The statement said “The review saw an increase in the coverage of Singapore domestic exports to India enjoying tariff concessions from 64 per cent to 82 percent.”

About 539 products which were excluded in CECA can now enjoy tariff concessions between 0.28per cent and 8.89 per cent, according to Carolyn Neo, IE Singapore’s deputy director, trade group.

307 of the products, including unused postage, revenue and similar stamps and paints and vanishes, will go through 9 stages, with 97 products having zero tariff only on December 1, 2015, while 135 products would still face a 5 per cent tariff by then.

India is one of Singapore’s largest trading partners and since the CECA came into effect in 2005, the trade between Singapore and India picked up steadily.

24 Jan 08- December Inflation Hits 25-Year High

The inflation in Singapore hit a 25-year high in December 2007 where the Consumer Price Index (CPI) increased 4.4 per cent in 2007 on health care, transportation and food cost.

18 Jan 2008- Year of Healthy Growth for Most Firms

Despite a challenging year overcoming the effects from global crises such as the US sub-prime mortgage issue, accelerating oil prices, inflationary pressure, Singapore’s economy saw a 7.5 per cent growth in 2007. Higher absolute turnover and profit were reported by S1000 and SME500 companies. S1000 companies recorded at least 20 per cent increase in absolute turnover.

Leading this year’s S1000 companies by turnover rank are the construction, communication/transportation and storage, finance and hotel/food establishment sectors.The construction sector, which recorded with negative growth in the previous year generated 51.3 per sent jump in absolute turnover.Property sector have recovered from a plunge in the pervious year, recorded a 14.1 per cent jump in absolute turnover to S364.7 million in FY07.

The finance sector, which recovered from a negative growth, saw a 48.1 per cent growth in absolute net profit to 14.761 million. (Fy06: 9,966 million). 18 banking service companies accounted for 72.7 per cent in total absolute net profit.

10 Jan 2008- Singapore Maritime Sector Reached New Heights

The maritime sector of Singapore has reached a breaking record of double digit increment in 2007. Due to healthy port performance, Singapore is yet known as the busiest port globally in terms of shipping tonnage, bunkering port and major container transhipment hub.

10th Jan 2008, Mr. Raymond Lim, the Minister for transport announced the Maritime and Port Authority, (MPA);s 2007 record on the “New Year Cocktail Reception” organised by the Singapore Maritime Foundation, (SMF). Vessel arrivals in terms of shipping tonnage showed an increase of 11% and were recorded with 1,459 million gross tons (GT) in 2007. Container ships were the main contributors, accounting for 36.1 per cent of the total vessel arrival tonnage follow by tankers, contributing 30.5 per cent to the total figure.

7 Dec 2007- New Measures to Boost Singapore's Legal and Education Sectors

Singapore government announced a new set of measures set to liberalise the legal services sector and boost Singapore as an international centre for legal services and education.

The new schemes are shown in the following:
a. Qualifying Foreign Law Firm Scheme
- a maximum of five foreign firms will be allowed to practise Singapore law through Singapore-qualified lawyers for a start
b. Enhanced Joint Law Venture Scheme
- Foreign and local law firms will be allowed to form an enhanced joint law venture, whereby foreign firms can hire Singapore-qualified laywers to advise on Singapore law
c. International Commercial Arbitration
- Foreign firms can now vet and draft Singapore law agreements incorporating arbitration clauses. They can also advise parties on their legal rights and liabilities in such agreements through Singapore-qualified lawyers they hire.

4 Dec 2007- Increase in the Number of Singapore Incubators

In recent years, the number of foreign business incubators in Singapore has shot up to 43 centres by the end of last year.

These agencies provide start-ups with low-cost infrastructure and appropriate support to grow businesses. These foreign incubators are mainly focused on bringing their people into Singapore to start businesses. However local firms can also venture overseas by partnering these foreign firms under incubation.

One such example is the Invest Japan Business Support Center (IBSC) that provides information and consultation services to Singapore companies that plan to set up businesses in Japan.

4 Dec 2007- Singapore, One of Asia's Top Property Investments

Three of the Asia's biggest property sales were done in Singapore.

Out of the Top-10 real estate investment deals in Asia for Q307, three of the deals concerned Singapore properties. A report done by CB Richard Ellis (CBRE), it shows that two of the Singapore deals involved stakes in One Raffles Quay and the third involved the sale of Chevron House. The total of these three deals amount to S$1.77 billion - 20 per cent of the value of the Top-10 deals.

According to CBRE, Singapore is more likely to attract investors who seek lower risk and lower yields.

20 Nov 2007- Forecast of Singapore GDP 2008

Singapore's Ministry of Trade and Industry (MTI) has raised its forecast of GDP growth in 2008 slightly, to 4.5-6.5 per cent.

According to MTI, its forecasts for 2008 amounts to a "moderation in growth towards the economy's underlying potential rate after four years of above-trend growth". it also said the economy should grow in the upper half of the 4.5-6.5 per cent range next year if the US economy rebounds in the second half of 2008 from a first-half slowdown.

19 Nov 2007- Singapore-China Eco-City Development

Singapore and China inked a framework agreement to jointly develop an eco-city in Tianjin, which will deepen bilateral relations and cooperation to greater heights.

Prime Minister Lee said that he was pleased with the decision and is confident that the Chinese central government and the Tianjin government will giv e this project their full support. This project is another flagship of bilateral cooperation between Singapore and China since the last 13-year old Suzhou Industrial Park.

The two leaders of the countries signed the framework agreement that set the parameters for collaboration, while a supplementary pack that guide the implementation details was signed by Minister for National Development Mah Bow Tan and China's Construction Minister Wang Guangtao.

Under this framework agreement, Singapore and China will share their expertise and experiences in the formulation of policies and programmes to engender social harmony, environment protection, urban planning, resource conservation, ecological infrastructure development, recycling, reuse of wastewater and sustainable development.

16 Nov 2007- Flexible Perks Catching on in Singapore

Flexible perks are catching on in Singapore and some other Asian countries, due to the competition for talent and rising healthcare costs.

According to the recent poll by management consultant firm Mercer, over 50 per cent of companies in Singapore plan to use their benefits as comeptitive differentiation in the war for talent. Nine in 10 of the 95 companies surveyed reported a happier workforce ever since the introduction of flexi-perks.

Asia's companies are beginning to embrace flexi-benefits as a solution. 50 per cent of survey participants in Singapore plans to implement flexi-benefits within two years.

The poll shows that flexi-perks help companies meet the goals to accomodate the diverse needs of employees at different life stages; differentiate from competitors; and harmonise benefits for different entities after a merger and acquisition.

26 Oct 2007

The Ministry of Finance (MOF) appointed the Accounting Standards Council ("ASC") which will continue to build on the foundation laid by its predecessor, the Council on Corporate Disclosure and Governance (CCDG), in formulating the Singapore Financial Reporting Standards.

The ASC will be responsible for prescribing accounting standards for companies and other entities such as societies, charities and cooperatives. Its mandate is to develop, review, amend and approve financial reporting standards for entities that are under its purview. It will track closely the introduction of new International FRS for possible application in Singapore and will also take into account the economic and business circumstances and context in the country.

26 Oct 2007

Singapore government will be spending more than S$360 million on tourism training - one of the biggest injections of funds into manpower development.

As a result of the Formula One Grand Prix and the two integrated resorts, 60,000 new jobs are expected to open up in the industry. The jobs may range from chefs to managers. The Singapore Tourism Board (STB), Workforce Development Agency (WDA) and Spring Singapore are working together to implement the Tourism Talent Plan to train 74,000 people over the next three years.