Other Briefings
Singapore-Vietnam in 2015: Trade and Investment Partners
As investment and trading partners, Singapore and Vietnam have proven to be an unstoppable combination – with 2014 bilateral trade up 20.3 percent year on year. Vietnam’s strategic location, low-cost labor, burgeoning consumer class, and incentives to foreign investors have made Vietnam an attractive destination for Singaporean foreign direct investment (FDI). While Singapore, with the highest GDP per capita in ASEAN, remains a prime market for Vietnamese exporters.
Singapore Parliament Back in Business: Multiple Legal Reforms on the Agenda
On its first day back in business, January 19, 2015, Singapore’s Parliament has approved the Industrial Relations (Amendment) Bill and the Pawnbrokers Bill on second readings, and saw the introduction of the Community Disputes, Deep Seabed Mining, Liquor Control (Supply and Consumption), and MediShield Life Scheme Bills.
Changes to Singapore Transfer Pricing Guidelines
On 6th January 2015, the Inland Revenue Authority of Singapore (“IRAS”) released revised transfer pricing guidelines.
Gulf Cooperation Council and Singapore Complete FTA
On January 1, 2015, the Free Trade Agreement (FTA) between the Gulf Cooperation Council (GCC) and Singapore entered into force. The FTA covers trade in goods and services, customs procedures, e-commerce, economic cooperation, government procurement, rules of origin and other matters.
Singapore Signs IGA on FATCA with the United States
On December 9, 2014, Singapore became the first country in Southeast Asia to sign an Intergovernmental Agreement (IGA) on tax information sharing with the United States. The signing follows an in substance agreement reached between Singapore and the US in May 2014. Most countries around the world have been entering into IGAs with the US government since the US introduced a complex reporting and withholding regime through the passage of the Foreign Accounts Tax Compliance Act (FATCA) in March 2010.
Singapore to Reduce Property Taxes for HDB Flats
The Singaporean government has announced a range of property tax and other cost reductions for those living in Housing and Development Board (HDB) flats. Starting January 1, 2015, HDB flat owners of three-, four-, and five-room units will see a three percent reduction in their annual rent. Additionally, owners of one-room and two-room HDB flats will continue to pay no property tax. This will be the second year that the Inland Revenue Authority of Singapore (IRAS) has imposed progressive property tax reductions in order to reflect the cooling down of the property market – a slowdown mainly due to government intervention.
Key Industries for Investment in ASEAN
As ASEAN continues its transition to greater economic integration with the implementation of the ASEAN Economic Community in 2015, the region is seeing strong growth in a number of industries. Among the key business areas are electronics, information and communications technology, textiles and apparel, and medical devices.
Asia Heavyweights Show Interest in Singapore-Malaysia High Speed Rail Link
Japan, China, and South Korea have all shown interest over the last month in bidding for the proposed Malaysia-Singapore high-speed rail link. The project was originally announced in September 2010 and if completed will connect Singapore and Johor Bahru to Kuala Lumpur. Official agreement between the two countries was made in February 2013 to complete the project with the target date of 2020.
EU-Singapore Finalize Free Trade Agreement
The European Union (EU) and Singapore have finalized their negotiations on a free trade agreement (FTA). Singapore expects that exporters of electronics, pharmaceuticals, chemicals, and processed food products will especially benefit from the completion of the FTA.
Singapore-Turkey FTA Talks Progressing Despite Service Sector Concerns
Although some disagreements regarding services are yet to be hammered out, negotiations for Singapore-Turkey trade talks are “making good progress” said Singaporean PM Lee Hsien Loong.
