Whether you’re an existing business owner or planning to incorporate a company or Limited Liability Partnership (LLP) in Singapore, it’s critical to understand these new obligations to stay compliant and avoid penalties. Here’s a breakdown of what’s changing — and what your business needs to do next.

Mandatory Register of Controllers for All New Entities

Effective from 16 June 2025, all newly incorporated companies and LLPs (including foreign companies) must maintain a Register of Controllers from the date of incorporation.

Key changes include:

• Immediate maintenance of the Register upon incorporation.
• Annual verification is now compulsory. Controllers must provide signed and dated confirmation to ensure that the information on record remains accurate.
• The deadline for updating controller details in the private register has been extended from 2 business days to 7 calendar days, providing businesses slightly more flexibility in compliance.

What is a Register of Controllers?

A Register of Controllers is a non-public register that contains details of individuals or legal entities who have significant control over a company or LLP. These “controllers” are typically those who:

• Directly or indirectly own more than 25% of the shares,
• Hold more than 25% of the voting rights, or
• Exercise significant influence or control over the entity.

The register includes important information such as:

• Full name and residential address of the controller,
• Nationality and identification details,
• Date on which the person became a controller,
• Nature and extent of control.

This register must be maintained at the registered office of the company or at the office of its registered filing agent, and must be made available to regulatory authorities upon request.

The goal of this requirement is to enhance corporate transparency and help prevent the misuse of legal entities for illicit purposes such as tax evasion, terrorism financing, and money laundering.

Register of Nominee Directors for Foreign Companies

Foreign companies must now maintain a Register of Nominee Directors, which must be kept at either:

• The company’s registered office in Singapore, or
• The office of their appointed Registered Filing Agent or Corporate Service Provider.

This requirement aligns foreign companies with the same transparency standards imposed on local businesses.

Filing of Nominee and Controller Information with ACRA

The Accounting and Corporate Regulatory Authority (ACRA) will now maintain central registers of:

• Nominee Directors
• Nominee Shareholders

All companies and foreign entities are required to file this information with ACRA as follows:

• Existing entities: Must submit the required information by 31 December 2025.
• New entities incorporated or registered from 16 June 2025: Must submit nominee and controller information on the date of incorporation.

While these central registers will not be made public, they will be accessible to government and law enforcement authorities to support investigations and enforcement.

Higher Penalties for Non-Compliance

In a significant move to strengthen enforcement, the maximum fines for offences related to the maintenance of the Registers of Controllers, Nominee Directors, and Nominee Shareholders will be increased:

• From $5,000 to $25,000 for companies (including foreign companies), and
• From $5,000 to $25,000 for LLPs relating to the Register of Controllers.

These steeper penalties underscore the importance of timely, accurate, and complete record-keeping and are aligned with the Financial Action Task Force (FATF) recommendations to ensure that sanctions are effective, proportionate, and dissuasive.

Failure to maintain the required registers or to file the required information with ACRA could now result in much more substantial financial penalties — reinforcing the need for diligent compliance.

What This Means for Businesses and Corporate Service Providers

The recent amendments to the Companies and Limited Liability Partnerships Act are more than just regulatory updates — they are part of Singapore’s broader strategy to align with global standards set by the Financial Action Task Force (FATF). These changes reinforce the city-state’s standing as a trustworthy, transparent, and well-regulated financial and business hub.

For businesses and corporate service providers, this means greater responsibility and accountability, especially in areas relating to beneficial ownership transparency and regulatory reporting. Here’s what you need to know and prepare for:

For Existing Business Owners

Review and Update Internal Documentation and Registers

You must conduct a thorough review of your existing registers — particularly your Register of Controllers, Register of Nominee Directors, and Register of Nominee Shareholders (if applicable). Verify that all information is:

• Up-to-date
• Complete
• Accurate and consistent across all records

Consider this an opportunity to audit your internal compliance processes and correct any oversights before stricter enforcement and penalties take effect.

Ensure Timely Annual Verifications

The new requirement for annual confirmation from controllers means you’ll need a structured, recurring process to request and document verification. Each controller must sign and date a confirmation form, acknowledging the accuracy of the details held on file. This isn’t just an administrative task — it’s a legal obligation, and failure to comply could expose the business to substantial fines.

Prepare for Mandatory Filings with ACRA

If your company has nominee directors or nominee shareholders, their information must now be submitted to ACRA:

• By 31 December 2025 for existing entities, and
• At the point of incorporation for entities registered from 16 June 2025 onwards

This filing process will become part of your annual compliance checklist, similar to AGMs and annual returns.

Ensure Information Accuracy to Avoid Hefty Penalties

With fines increased to $25,000 per offence, there is now a much stronger incentive to ensure compliance. Any delay, omission, or inaccuracy in maintaining registers or filing required data with ACRA can lead to significant financial penalties — a cost no business wants to incur.

For New Company or LLP Incorporations

If you’re incorporating a business in Singapore after 16 June 2025, compliance begins from day one. You will be required to:

• Submit beneficial ownership details (Register of Controllers),
• Declare any nominee director or shareholder relationships, and
• Maintain all corresponding registers from the moment of registration

Unlike in the past, where some filings and registers could be updated post-incorporation, these requirements are now tied directly to the incorporation process. This makes it more important than ever to engage a qualified Corporate Service Provider (CSP) who can ensure everything is filed correctly at the outset.

For Corporate Service Providers

These changes place CSPs at the front line of regulatory compliance in Singapore. You will be expected to:

• Guide clients through updated requirements,
• Prepare and maintain statutory registers on their behalf,
• Implement robust KYC (Know Your Customer) procedures,
• Handle ACRA filings promptly and accurately, and
• Advise clients on their ongoing obligations, particularly around annual verification and timely updates

Corporate service providers will play a pivotal role in helping businesses adapt to the new regulatory environment — and ensure no detail is overlooked.

How Can a Corporate Service Provider Help

At HeySara, a reputed corporate service provider in Singapore, we help businesses navigate Singapore’s evolving compliance landscape. Our services include:

• Company Incorporation Services – End-to-end assistance with setting up your business entity in Singapore.
• Comprehensive Corporate Secretarial Support – Full suite of company secretarial services to ensure ongoing statutory compliance.
• Annual Return Filing – Preparation and timely submission of annual returns in accordance with ACRA requirements.
• Controller and Nominee Disclosure Management – Accurate preparation and filing of beneficial ownership and nominee information with ACRA.
• Registered Filing Agent & Compliance Advisory – Serving as your official filing agent while providing expert guidance on regulatory matters.
• Regulatory Monitoring & Alerts – Proactive updates on legislative changes to keep your business compliant and penalty-free.

We are committed to ensuring that our clients remain compliant, informed, and protected in the face of tightening regulations.

Final Thoughts

The 2024 Amendments represent a firm step forward in reinforcing Singapore’s anti-financial crime framework. With increased disclosure requirements and heightened penalties, businesses must act proactively to align with the new standards.

If you need help assessing your readiness or managing the transition, our team is here to support you every step of the way.

Contact us today for a compliance review or consultation. Stay transparent. Stay compliant. Stay ahead.

Entrepreneurs in Singapore are skilled at bringing ideas to life, but when it comes to compliance, many could use a trusted hand. That’s where HeySara steps in. More than just a corporate services provider, HeySara was born out of a deeper understanding of what local founders really need: a partner who speaks their language, understands their challenges, and makes the boring-but-critical parts of business simpler — and kinder. “We’re not here to be the cheapest or the flashiest,”
the HeySara team shares. “We’re here to make sure you stay on the path you started — and that
you’re not alone.”

Read the whole story from this link

Key Growth Drivers and Sectoral Opportunities

Despite external pressures, several sectors in Singapore are expected to provide pockets of robust growth in 2025:

1. Electronics and Semiconductors

The global demand for semiconductors remains strong, spurred by technological megatrends:

• Artificial Intelligence (AI) Expansion: The AI boom is creating explosive demand for high-performance chips, powering innovations from autonomous vehicles to enterprise-level machine learning applications.
• Hardware Upgrades: Continued device refresh cycles for businesses and consumers will drive new demand for laptops, servers, and IoT devices.
• Smart Devices Proliferation: Wearables, home automation, and connected appliances will further boost semiconductor markets.

Singapore’s manufacturing base is well-positioned to benefit, reinforcing its status as a key node in global tech supply chains.

2. Modern Services and Digital Economy

The services sector, particularly in ICT and financial services, is forecasted to remain resilient:

• Accelerated Digitalization: Cloud computing, cybersecurity, fintech innovation, and e-commerce solutions will continue to transform industries.
• Fintech Expansion: Initiatives like Project Guardian and digital banking frameworks bolster Singapore’s ambitions to be Asia’s fintech capital.
• Financial Services Growth: Expected global rate cuts will lower borrowing costs, supporting investment and growth in financial markets.

Tech and finance-related businesses are encouraged to ride this wave of digital transformation to sustain growth momentum.

3. Construction and Infrastructure Development

Public sector construction will act as a key economic stabilizer:

• Changi Airport Terminal 5: One of the largest infrastructure projects in Singapore’s history, driving demand across engineering, logistics, and real estate sectors.
• Urban Redevelopment Projects: Initiatives like the Greater Southern Waterfront and new eco-towns like Tengah will create opportunities in smart construction and sustainable urban development.

These projects will not only boost construction demand but also support ancillary industries.

4. Tourism and Transport Recovery

A significant rebound is expected across tourism-related sectors:

• Rising Visitor Numbers: Pent-up travel demand and the recovery of global air travel will benefit Singapore’s hotels, attractions, and retail sectors.
• Transport Engineering Upswing: Higher air and sea traffic will stimulate growth in maintenance, repair, and overhaul (MRO) services.
• F&B and Retail Boost: Tourist-driven demand will revitalize local F&B outlets and retail businesses.

The return of major events, conventions, and exhibitions (MICE industry) will provide additional tailwinds.

Key Challenges for Businesses in 2025

While growth opportunities exist, businesses must also contend with multiple headwinds:

1. Intensifying Geopolitical Risks

The persistence of US-China tensions — including legacy tariffs and new protectionist measures — poses serious risks:

• Trade Disruptions: Tariff escalations and supply chain realignments could dampen the manufacturing and export sectors.
• Investment Slowdowns: Heightened geopolitical uncertainty may temper investor appetite, particularly in sectors reliant on cross-border capital flows.

Companies must enhance supply chain resilience and diversify market exposure to weather these uncertainties.

2. Slower Chinese Economic Recovery

China’s underwhelming post-pandemic recovery continues to ripple outward:

• Soft Export Demand: Weaker Chinese consumption may reduce demand for Singaporean electronics, petrochemicals, and other exports.
• Tourism and Investment Drag: A sluggish Chinese economy could moderate tourist arrivals and cross-border financial activities.

Businesses heavily reliant on China must pivot to emerging markets like India, Indonesia, and Vietnam for new growth avenues.

3. Persistent Cost Pressures

While inflation is moderating (core inflation forecasted around 1.5%), costs remain elevated in several key areas:

• Wage Pressures: Tight labor markets and higher minimum salary thresholds for Employment Pass holders will lift payroll costs.
• Rental and Utility Costs: Demand recovery may lead to rising commercial rents and volatile energy prices.

Firms must streamline operations, automate, and explore cost-sharing models to defend margins.

4. Shifts in Domestic Consumption

As outbound travel surges, local retail and service sectors may experience a drain on domestic spending:

• Retail and F&B Competition: Businesses will need to sharpen value propositions, improve customer experiences, and capture tourist spending to offset local spending dips.

Policy and Regulatory Developments

Singapore’s government continues to implement measures to support businesses:

• Budget 2025 Measures:
  • 50% Corporate Income Tax rebate (capped at S$40,000)
  • S$3 billion boost to the National Productivity Fund
  • Enhanced support for R&D, workforce transformation, and innovation
• Sustainability Push: Increased focus on green innovation, clean energy projects, and ESG standards.
• Tax and Labor Reforms: Introduction of a global minimum tax and tighter Employment Pass eligibility requirements.
  Proactive engagement with these policies will help businesses unlock available incentives and navigate regulatory changes effectively.

What This Means for Businesses

In 2025, businesses operating in Singapore must remain vigilant, adaptable, and strategically forward-thinking to navigate a more volatile and competitive landscape. Success will depend not only on responding to immediate challenges but also on positioning for long-term growth. Here’s how businesses can sharpen their strategies:

1. Leverage Growth Sectors

With sector-specific opportunities emerging, businesses should actively prioritize investments, strategic partnerships, and resource allocation in areas poised for expansion:

• Electronics and Semiconductors: Tap into global demand driven by AI, IoT, and smart technologies. Opportunities extend beyond manufacturing to supporting industries like precision engineering, logistics, and component distribution.
• ICT and Digital Services: Capitalize on the surge in digital transformation initiatives by offering cloud solutions, cybersecurity services, fintech platforms, and AI-driven products.
• Construction and Infrastructure Development: Position to support large-scale public projects like Changi Airport Terminal 5 and Greater Southern Waterfront developments. Opportunities span from engineering services to green construction technologies.
• Tourism, Hospitality, and MICE Industries: With the rebound in international travel and events, businesses in accommodation, food & beverage, leisure services, and event management should prepare to scale operations and enhance customer experiences.

Focusing resources where momentum is strongest will help businesses ride the next wave of growth.

2. Accelerate Digitalization and Innovation

Digital transformation is no longer optional—it is a core competitive differentiator. Businesses must:

• Improve Operational Efficiency: Invest in automation, AI-driven process management, and cloud computing to streamline workflows and reduce costs.
• Launch Innovative Products and Services: Continuously evolve offerings to meet changing customer needs, using data analytics to inform product development and market strategies.
• Strengthen Cybersecurity and Data Governance: As digital threats rise, prioritizing cybersecurity will protect customer trust and ensure regulatory compliance.
• Engage in Government R&D and Digital Transformation Programs: Tap into grants and initiatives under Singapore’s Budget 2025 to co-fund innovation projects, adopt emerging technologies, and upskill employees.

Companies that embed innovation into their culture and operations will maintain a lasting competitive advantage.

3. Manage Operational Costs

Amid ongoing inflationary pressures and wage increases, businesses must take proactive steps to safeguard profitability:

• Process Automation: Automate repetitive and labor-intensive processes to reduce reliance on manual labor and improve productivity.
• Energy-Efficient Upgrades: Implement energy-saving technologies and practices to reduce utility costs while supporting Singapore’s sustainability goals.
• Streamlined Supply Chain Management: Optimize logistics operations, renegotiate supplier contracts, and invest in real-time tracking tools to reduce inefficiencies and mitigate disruptions.

A leaner, smarter operational model will enhance resilience against market fluctuations and cost volatility.

4. Diversify Markets and Supply Chains

To counter rising geopolitical risks and market concentration, diversification is critical:

• Explore ASEAN and South Asia Markets: With China’s growth slowing, pivot towards emerging markets in ASEAN (e.g., Vietnam, Indonesia, Malaysia) and South Asia (e.g., India, Bangladesh) to capture new growth opportunities.
• Multi-Sourcing Strategies: Avoid dependency on single suppliers or regions by building a more geographically diverse supplier network.
• Invest in Supply Chain Visibility Tools: Adopt digital platforms that provide real-time insights into supply chain operations, helping businesses respond swiftly to disruptions and manage risks proactively.

Building broader, more resilient networks will cushion businesses against external shocks.

5. Stay Policy Agile

Singapore’s evolving regulatory landscape demands that businesses stay nimble and well-informed:

• Adapt to New Tax Regulations: Understand the implications of the global minimum tax and optimize corporate structures accordingly.
• Navigate Labor Law Reforms: Prepare for higher local employment requirements and stricter Employment Pass criteria by investing in workforce development and training.
• Align with Green Transition Initiatives: Meet new environmental standards and leverage green innovation grants to reposition your brand and offerings in an increasingly sustainability-conscious market.

Companies that can swiftly adapt to policy shifts—while embedding compliance and sustainability into their strategic planning—will position themselves as industry leaders rather than followers.

Conclusion

Singapore’s revised 2025 growth forecast underscores the delicate balancing act businesses must perform: leveraging opportunities in resilient sectors while navigating rising risks from global instability.

Those who invest in innovation, fortify supply chains, expand into new markets, and embrace sustainable practices will be best placed to thrive in a more volatile world.

In a rapidly evolving economic environment, success in 2025 will belong to businesses that stay informed, act decisively, and innovate boldly.

At HeySara, we are committed to helping businesses stay ahead in this dynamic landscape. Whether you need support with corporate governance, compliance, or business advisory, our team is ready to partner with you for success. Reach out to HeySara today and future-proof your business for 2025 and beyond.

Medium enterprises led the charge, with 446 businesses seeking support, followed by 350 small enterprises and 104 large enterprises. Among industries, the healthcare and medical services sector showed the highest engagement, with 92% of businesses leveraging government initiatives, while manufacturing and engineering firms followed closely at 90%.

Despite strong participation, 17% of businesses have yet to engage with budget initiatives, with 41% unsure about which programs are relevant, 30% deterred by the time-consuming application process, and 23% believing they do not need government support. However, awareness of key programs is growing, with 29% of businesses familiar with the SkillsFuture Enterprise Credit and 21% recognizing the Progressive Wage Credit Scheme.

As we enter 2025, the Singapore government continues to refine and expand its support measures, ensuring businesses of all sizes can navigate economic challenges, drive innovation, and enhance workforce development. This guide provides an overview of the key grants and initiatives available in 2025, helping businesses make informed decisions on leveraging government support.

Grants and Initiatives for Businesses in 2025

Corporate Tax Relief

The 50% corporate income tax rebate introduced in Singapore’s 2025 Budget is indeed a significant measure aimed at providing relief to businesses facing economic challenges. Here’s a more detailed elaboration of this initiative:

Corporate Tax Relief Details

The corporate income tax rebate for the Year of Assessment 2025 offers substantial benefits to companies:

• A 50% rebate on corporate income tax payable
• Eligible companies will receive a minimum cash grant of S$2,000
• The rebate is capped at S$40,000 per company

Eligibility Criteria

To qualify for the minimum cash grant of S$2,000, companies must meet the following criteria:

• Be an active company
• Have employed at least one local employee in the calendar year 2024
• The local employee condition is met if the company has made CPF contributions for at least one Singaporean citizen or permanent resident

Implementation Timeline

The Singapore government has planned a swift rollout of this relief measure. Eligible companies will automatically receive the benefits starting from the second quarter of calendar year 202525

Impact on Businesses

This tax rebate is designed to provide immediate financial relief to businesses, particularly beneficial for:

• SMEs grappling with rising business costs
• Companies facing higher rent and labour expenses
• Both profitable and non-profitable firms, even companies not making a profit can benefit from the minimum cash grant

Strategic Objectives

The corporate tax rebate serves several strategic purposes:

• Helps businesses manage cash flow needs as they adjust to structurally higher costs
• Enables companies to focus on productivity improvements and explore new opportunities
• Provides broad-based support to businesses across various sectors

This comprehensive tax relief measure demonstrates the Singapore government’s commitment to supporting businesses during challenging economic times, while also encouraging growth and innovation in the corporate sector.

Driving Innovation and R&D Growth

Singapore’s commitment to driving innovation and R&D growth in 2025 is evident through substantial investments and strategic initiatives. The government’s allocation of over S$10 billion for research, development, and infrastructure investments underscores its dedication to maintaining Singapore’s position as a global innovation hub.

National Productivity Fund (NPF)

The Singapore government has announced a S$3 billion top-up to the National Productivity Fund (NPF) as part of Budget 2025, reinforcing its commitment to enhancing productivity and innovation. This substantial investment is designed to strengthen Singapore’s global competitiveness by driving research, technological advancements, and business transformation.

Key Focus Areas

• Research & Development (R&D): Funding will support R&D efforts across various industries, with a strong emphasis on emerging technologies.
• Artificial Intelligence & Cloud Computing: A significant portion of the fund will be directed towards AI and cloud computing, recognizing their crucial role in future economic growth.
• Innovation Support: Programs such as the Productivity Solutions Grant (PSG) and SME Go Digital will continue to receive funding, helping businesses adopt innovative solutions and digital tools.

Impact on Key Sectors

• Technology & Semiconductor Industry: Companies in semiconductor and high-tech manufacturing are expected to benefit, including AEM Holdings, which specializes in high-end outsourced assembly and test (OSAT) services.
• Life Sciences & Medical Technology: Firms with exposure to these segments, such as Venture, Grand Venture, and Frencken, are well-positioned to gain from the NPF boost.

Long-Term Vision

• This NPF enhancement aligns with Singapore’s strategic goals to:
• Maintain its status as a global innovation hub
• Strengthen capabilities in biotechnology & semiconductor research
• Encourage SMEs to adopt cutting-edge technologies

By focusing on productivity and technological advancement, Singapore aims to drive sustainable economic growth and stay ahead in an increasingly tech-driven global economy.

Enterprise Compute Initiative

As part of Budget 2025, Singapore has unveiled the S$150 million Enterprise Compute Initiative, a strategic move to accelerate AI adoption and advanced computing solutions among businesses, with a strong focus on small and medium-sized enterprises (SMEs). This initiative aims to drive innovation, enhance productivity, and strengthen Singapore’s position in the global digital economy.

Key Features of the Enterprise Compute Initiative

• Partnerships with Cloud Providers: Eligible businesses will collaborate with major cloud service providers, gaining access to cutting-edge AI tools and computing power.
• Access to AI-Powered Resources: Companies will benefit from high-performance computing resources, AI-driven tools, and expert consultancy services.
• Empowering SMEs: By reducing cost and complexity barriers, the initiative levels the playing field, allowing SMEs to leverage powerful AI solutions.
• Customized AI Solutions: Recognizing the need for business-specific AI integration, the program offers tailored solutions to optimize operations and decision-making.
• Complementary Support: This initiative works alongside existing government programs like the Productivity Solutions Grant (PSG) and SMEs Go Digital, reinforcing Singapore’s commitment to digital transformation.

The Enterprise Compute Initiative is a key pillar of Singapore’s broader strategy to future-proof businesses through AI-powered transformation. By equipping enterprises with the right tools, expertise, and computing capabilities, Singapore aims to drive economic growth, enhance its global competitiveness, and ensure businesses are ready to thrive in an AI-driven world.

Workforce Development and Skills Enhancement

Singapore has ramped up its workforce development and skills enhancement initiatives for 2025, reinforcing its commitment to building a highly skilled workforce while driving business growth. The latest enhancements focus on upskilling, job redesign, and sustainable wage growth, ensuring businesses can remain competitive in an evolving economic landscape.

Enhanced SkillsFuture Enterprise Credit (SFEC)

The SFEC has been redesigned to offer more comprehensive and accessible support for workforce development and enterprise transformation:

• Increased Credit: Eligible companies will receive a one-time S$10,000 credit to support training initiatives.
• Higher Coverage: The credit can offset up to 90% of out-of-pocket expenses for approved courses and transformation programs.
• Extended Expiry Date: Companies now have until June 30, 2025, to utilize the credit.
• Simplified Access: The credit functions like an online wallet, allowing businesses to track their balance and use funds instantly.
• Redesigned SkillsFuture Enterprise Credit: Starting in the second half of 2026, all companies with at least three resident employees will receive a fresh S$10,000 credit, valid for three years.

SkillsFuture Workforce Development Grant

This new grant streamlines multiple workforce support schemes, making it easier for businesses to access funding for training and development:

• Unified Application: Merges programs from Workforce Singapore (WSG) and SkillsFuture Singapore (SSG) into a single application process.
• Higher Funding: Covers up to 70% of costs for job redesign and workforce transformation projects.
• Comprehensive Support: Encourages companies to invest in upskilling employees and modernizing job roles for greater efficiency.

Progressive Wage Credit Scheme (PWCS)

The PWCS has been enhanced to support sustainable wage growth and employee retention:

• Higher Co-Funding: The government will now co-fund 40% of wage increases in 2025, up from 30%.
• Extended Support: The 40% co-funding will also apply to wage increases given in 2024 and maintained in 2025.
• Future Commitment: Co-funding for 2026 wage increases will rise from 15% to 20%.
• Eligibility: This applies to wage increases for Singapore Citizens and Permanent Residents earning up to S$3,000 in gross monthly wages.

Additional Workforce Development Initiatives

Singapore is also introducing new measures to support individuals and businesses in upskilling efforts:

• SkillsFuture Level-Up Programme: Launching in mid-March 2025, this initiative offers training allowances of up to S$3,000 per month for selected full-time courses, with support for up to 24 months. Additionally, starting in early 2026, employees in part-time training can receive an S$300 monthly allowance. Designed to provide stronger structural support, this program aims to help mid-career Singaporeans aged 40 and above undergo significant skills upgrading and remain competitive in a rapidly evolving economy.
• The Workfare Skills Support scheme: Designed for lower-wage workers aged 30 and above, this scheme provides a training allowance of up to 50% of their average monthly income for full-time training and a S$300 monthly allowance for part-time courses.
• NTUC Company Training Committee (CTC) Grant: An additional S$200 million has been allocated to company-led training initiatives to help businesses upgrade their workforce.

Financing and Market Expansion Support

Singapore has significantly strengthened its Financing and Market Expansion Support initiatives to help businesses scale and enter new markets. Here’s a breakdown of the key programs:

New S$1 Billion Private Credit Growth Fund

To address financing gaps for high-growth local enterprises, the Singapore government has introduced a S$1 billion Private Credit Growth Fund. This initiative aims to support companies that may struggle with traditional funding options, particularly those in the technology and scalability sectors.

Key Features:

• Tailored Financing: Offers customized funding solutions to meet the needs of fast-growing local businesses.
• Complementary to Existing Options: Serves as an alternative to bank loans and equity financing, providing a flexible and cost-effective option.
• Focus on Tech-Driven Growth: Prioritizes companies with strong technological capabilities and scalability potential.
• Strengthening Singapore’s Financing Ecosystem: Encourages more private credit players to enhance Singapore’s position as a leading capital market hub.

Market Readiness Assistance (MRA) Grant

The Market Readiness Assistance (MRA) Grant remains a crucial support tool for Singapore businesses seeking international expansion, providing substantial financial assistance. The enhanced grant cap of up to S$100,000 has been extended until March 31, 2026, ensuring continued support for companies looking to enter new markets.

Key Aspects:

• Funding Support: Covers up to 50% of eligible costs, capped at S$100,000 per new market.

Eligible Activities:

• Overseas Market Promotion (up to S$20,000)
• Overseas Business Development (up to S$50,000)
• Overseas Market Set-Up (up to S$30,000)

Eligibility Criteria:

• Must be registered and operating in Singapore.
• At least 30% local equity ownership.
• The company must be new to the target overseas market (with annual sales not exceeding S$100,000 in the past three years).
• Group Annual Sales Turnover ≤ S$100 million OR Group employment size ≤ 200 employees.

Sector-Specific Growth and Sustainability Initiatives

Singapore’s Budget 2025 introduces strategic sector-specific initiatives to boost economic growth, enhance sustainability, and strengthen financial markets.

Future Energy Fund:

The government’s S$5 billion top-up to the Future Energy Fund underscores its commitment to energy transition and sustainable development.

• Clean Power Infrastructure: Investments in next-generation power generation and distribution to accelerate Singapore’s shift toward renewable energy.
• Energy Resilience: Strengthening domestic energy security through clean energy development.
• Exploring Nuclear Energy: Research into Small Modular Reactors (SMRs) with advanced safety features to assess nuclear energy’s feasibility in Singapore.
• Regional Collaboration: Supporting initiatives to import low-carbon electricity from neighboring countries.

New Tax Incentives to Strengthen Singapore’s Financial Sector

To revitalize Singapore’s stock market and attract high-value investments, Budget 2025 introduces new tax incentives for fund managers.

Enhanced Financial Sector Incentive – Fund Manager (FSI-FM) Scheme

• Lower Tax Rate: Qualifying fund managers will enjoy a reduced 5% tax rate on qualifying income.
• Singapore Exchange Listing Requirement: Fund managers or their holding companies must obtain a primary listing on a Singapore exchange and remain listed for five years.
• Profit Distribution: A portion of earnings must be distributed as dividends.
• Minimum Business Requirements: Fund managers must meet specified criteria for professional headcount and assets under management (AUM).

Tax Exemption for Qualifying Income

• Singapore-Listed Equities Focus: A corporate tax exemption applies to management and advisory fees earned from funds that invest substantially in Singapore-listed equities.
• Investment Thresholds: New funds must invest at least 30% of their AUM in Singapore-listed equities while existing funds must meet this threshold and maintain annual net inflows.
• Limited Duration: The tax exemption is available for a non-renewable period of five years per fund.

By focusing on clean energy advancements and strengthening financial markets, Budget 2025 reinforces Singapore’s position as a resilient, future-ready economy poised for global competitiveness.

Attracting Global Talent and Entrepreneurship

Global Founder Programme

The Global Founder Programme, launched by the Singapore Economic Development Board (EDB), is a strategic initiative designed to attract international entrepreneurs and startups to Singapore. This initiative reinforces the city-state’s status as a premier hub for innovation and entrepreneurship.

Key Features of the Global Founder Programme

• Launch Timeline: Set to launch in late 2025, with applications opening in April 2025.
• Target Audience: Experienced entrepreneurs and global companies with the potential to build high-value ventures.
• Objective: To encourage global founders to establish and scale their startups in Singapore.

Benefits for Participants

• Access to a Thriving Startup Ecosystem: Entrepreneurs gain entry into Singapore’s dynamic tech and innovation network.
• Government Support: Likely to include assistance such as the EntrePass scheme for foreign startup founders.
• Networking Opportunities: Connect with local and international businesses, investors, and industry experts to accelerate innovation.

Conclusion

The 2025 Budget highlights Singapore’s strong commitment to supporting businesses at every stage of growth, across all sectors. With enhanced tax relief, innovation funding, workforce development programs, and sector-specific initiatives, companies now have ample opportunities to scale, innovate, and navigate economic uncertainties with confidence.

As Singapore transitions from the high government dependence seen in 2024 to a more strategic and sustainable support framework in 2025, businesses are encouraged to capitalize on these grants and incentives to boost their competitiveness, foster innovation, and contribute to the nation’s long-term economic resilience.

For businesses looking to take advantage of these opportunities, detailed information and application guidelines are available on the GoBusiness Singapore portal. It’s important to review the eligibility criteria and ensure all required documentation is in order for a smooth application process.

Need help navigating business grants and compliance? HeySara provides expert corporate services to streamline your application process, ensuring you maximize government incentives with ease. Contact HeySara today to get started!

RQIs and RFAs offer corporate secretarial services for businesses, including company incorporation, annual return filing, and other obligations under the Companies Act. With the cancellation of her RQI and RFA registrations, Li is barred from operating as a corporate service provider (CSP).

Li had incorporated three local companies by falsely declaring to ACRA that a certain local resident had consented to be a director of these companies. The Companies Act requires that all Singapore-registered companies have at least one local resident director.

Investigations revealed that Li relied on a third party to secure the individual’s consent, which was never given. Li did not verify the prescribed consent form or take any steps to confirm that the individual had agreed to be a director before proceeding with the incorporations.

ACRA views the misuse of identities for director appointments very seriously. Corporate service providers who breach their obligations, whether negligently or otherwise, risk regulatory sanctions, including the cancellation of their registrations. Directors of such providers may also face prosecution for failing to exercise reasonable diligence. The maximum penalty for this offense is a fine of up to $5,000 or imprisonment for up to 12 months.

Source: ACRA

The specific AML/CFT violations by LWBC included:

• Failing to perform additional customer due diligence when the customer was not physically present during onboarding.
• Not inquiring about the existence of any beneficial owner related to some customers.
• Failing to conduct risk assessments for some customers.

Wang, as the RQI and director of LWBC, failed to supervise his employees, leading to these breaches. Consequently, ACRA determined Wang no longer met the fit and proper criteria to remain registered as an RQI, and his registration was canceled.

These actions are part of ACRA’s broader investigations into the role of RFAs and RQIs in one of Singapore’s largest AML operations. Due to ongoing investigations, further details cannot be shared at this time.

Obligations of RQIs and RFAs

RQIs and RFAs provide corporate secretarial services for business entities, including company incorporation, filing annual returns, and meeting other requirements under the Companies Act 1967 or other Acts within ACRA’s jurisdiction. They must perform customer due diligence in line with the ACRA Regulations and operate in a manner that prevents money laundering and terrorism financing. They must also be fit and proper persons to be registered or continue their registration.

RQIs and RFAs who fail to meet their statutory obligations may face enforcement actions, including financial penalties up to $10,000 or $25,000 per breach, or have their registrations suspended or canceled. ACRA plans to introduce stronger penalties for non-compliant service providers to enhance the effectiveness of its anti-money laundering regime. These proposals, which have undergone public consultation, are expected to be tabled in Parliament soon.

RQIs and RFAs are crucial in detecting and combating illicit activities. ACRA takes breaches of AML/CFT regulations seriously and will take firm enforcement actions against non-compliant providers. Between 2021 and 2023, ACRA cancelled or suspended the registrations of 17 RQIs and RFAs.

Anyone who suspects an RQI or RFA of breaching their statutory obligations should report the matter to ACRA.

Source: ACRA

Upon investigation by the Accounting & Corporate Regulatory Authority (ACRA), Roger Poh acknowledged that before ATL’s acquisition of Activpass, he had a meeting with Activpass’s existing shareholders, namely Seow See Keong (Peter Seow), Amy Leow Ai Li (Amy Leow), and Zheng Jiabin (Zheng), a director of Kingsblade Pte. Ltd. During this meeting, it became apparent to Roger Poh that Peter Seow and Amy Leow were willing to sell 100% of Activpass shares to ATL for S$25 million.

Despite this knowledge, Roger Poh presented a proposal to ATL’s board suggesting the purchase of only 51% of Activpass shares for S$25 million, omitting any mention of the shareholders’ willingness to sell the entire stake. ATL subsequently acquired the specified 51% of Activpass shares for $25.2 million.

It was revealed that Roger Poh was willing to let ATL overpay significantly for the acquisition, with at least S$10 million of the purchase price directed to Kingsblade through round-tripping arrangements. Roger Poh admitted that his actions were driven by a desire for personal future benefits from Zheng, such as future directorial appointments in other listed companies and the accompanying director fees.

The Accounting & Corporate Regulatory Authority emphasizes the seriousness of directors failing to act honestly and diligently in discharging their duties. The authority will not hesitate to take enforcement action for such breaches. The offence of failing to act honestly as a director, under section 157(1) and punishable under section 157(3)(b) of the Companies Act, Cap.50, carries a penalty of a fine up to $5,000 or imprisonment for a term not exceeding 12 months.

Source: ACRA

On November 30, Bernard Chng Kok Leng and Tay Chee Seng, both aged 49, received jail terms of six and four weeks, respectively. Chng admitted guilt to five charges of neglecting reasonable diligence in his directorial duties, while Tay pleaded guilty to three similar offences. They were also banned from serving as company directors for a five-year period.

The two men had approached Interconnect Consultancy, a corporate secretarial firm, in mid-2020 in response to online job advertisements seeking nominee directors. Tay, facing financial challenges amid the COVID-19 pandemic, held odd jobs earning between $1,000 and $1,600 monthly.

Despite expressing concerns to Interconnect Consultancy about potential money laundering activities, they were reassured by the firm’s director, Lee Chia Yen, and colleague Lee Ay Ling, that all necessary checks would be conducted. The men were promised director’s fees of $250 every six months and were enticed by the prospect of a monthly “income” of $7,500.

Chng and Tay became nominee directors for 52 and 57 shell companies, respectively. Their role involved providing personal details to Interconnect Consultancy without overseeing any company affairs or bank transactions.

Some of the shell companies, with Chng and Tay as directors, received over US$14.6 million in scam proceeds. In one instance, a Belgian company transferred US$10 million to a UOB account of one of Chng’s firms, but the entire sum was subsequently remitted to various bank accounts in Hong Kong, China, and Singapore.

Tay’s shell firm received US$500,000, but the police managed to seize the full amount. Both men were aware of the risks of being nominee directors but chose to remain ignorant despite initial doubts.

In court, Chng claimed he was “duped” into the job but acknowledged lacking an excuse for neglecting due diligence. District Judge Wong Li Tein criticized Chng for relying on unreliable information and deemed the recklessness of both men deserving of jail terms.

Chng and Tay are part of a group of 12 individuals inadvertently aiding scammers in laundering over US$36 million through Singapore bank accounts. Foreign agents incorporated 35 local companies between July 2020 and February 2021 for this purpose.

Lee Chia Yen and Lee Ay Ling, from Interconnect Consultancy, face charges pending in court. On September 25, Chinese national Liang Jiansen was fined $9,000 and disqualified from being a company director for four years for his involvement in laundering US$3.4 million. On September 27, Er Beng Hwa, a jobless Singaporean nominee director for 186 companies, was fined $4,000 and disqualified from being a company director for three years after one of his firms was used to launder US$2.36 million.

Source: The Straits Times

After a difficult 2022 characterised by record high inflation, social alienation policies, and border closures, Singapore is now out of the woods, with demand for tourism, F&B, and retail picking up.

Singapore is recovering from the worst of the pandemic, but it still faces fresh difficulties. According to Mr Wong, the picture of the international economy would be “mixed and uneven,” with problems in various regions of the globe.

The Ukraine conflict has had the greatest impact on Europe, while the US’s sluggish growth and rising interest rates could lead to a recession this year. The improving Covid-19 situation in China has, however, improved the prospects for Asia.

2023 appears to see continued high inflation. Notwithstanding the difficulties, Mr Wong pointed out that the IMF does not predict a global recession in 2023.

In addition, several new subsidies, programs, and tax breaks for both companies and employees have been included in the Singapore Budget 2023. Businesses incorporated in Singapore will benefit from these new policies during these uncertain times.

Here are some new measures from this year’s budget which might affect your business in Singapore.

Impact of Singapore Budget 2023 on Businesses

Extension of Current Business Grants and Financing

• In Budget 2023, the Enterprise Financing Plan will be extended for an additional year through 31 March 2024. This program aims to finance growth and innovation for Singapore companies. It comprises an increased maximum quantum for trade and capital loans, a 70% government risk-share for trade loans, and capital loan support for domestic development projects.
• The Energy Efficient Grant will be made available until 31 March 2024, meaning for one additional year. This grant offers assistance to the food and beverage and retail industries so they may make investments in energy efficiency and lessen the effects of rising electricity prices.

Increased Funding for Enterprises

Due to Singapore’s tiny size, the government has historically backed local businesses in their expansion abroad. The Singapore Global Businesses Initiative will receive S$1 billion in funding from the government for Budget 2023.

The program supports globalisation, innovation, and the development of business alliances for start-ups in locations including Australia, Singapore, Hong Kong, and the UK.

The present improvements provided by Enterprise Singapore under its Enterprise Financing Scheme (EFS) will be extended by the government.

A statutory board within the Ministry of Trade and Industry of Singapore, Enterprise Singapore is in charge of assisting the regional development and internationalisation of SMEs.

1. Extending the Trade Loan Component of the Enterprise Financing Program

From 1 April 2023 through 31 March 2024, the Enterprise Financing Scheme – trade loan (EFS-TL) will be in effect.

Enterprises can receive trade finance from the EFS-TL for up to S$10 million (US$7.3 million) per borrower. The maximum loan repayment term is one year, with the government bearing 70% of the risk.

2. Extension of Project Loans Under the Enterprise Financing Program

Project loans under the Enterprise Financing Scheme (EFS-PL) will now be available until 31 March 2024. This program finances specific international projects.

Under the scheme, loans for the following can be given consideration:

• Land, buildings, and factories, including acquisitions, renovations, and construction
• Loans for working capital.
• Equipment, machinery, and other fixed assets.
• Guarantees.

For international projects, up to S$50 million (US$36.9 million) and S$30 million (US$22.1 million) are available per borrower, respectively.

Additionally, each borrower group may access up to S$50 million (US$36.9 million) for international projects and S$30 million (US$22.1 million) for domestic projects.

The government’s risk share is 50% and will go up to 70% for young businesses, which are those that have been formed within the last five years and have more than 50% privately held equity.

For fixed asset loans, the maximum payback term is 15 years, while for working capital loans and guarantees, the maximum repayment term is five years.

3. Expansion of the Working Capital Loan Component of the Enterprise Financing Program

The working capital loan under the Enterprise Financing Scheme has been extended from 1 April 2023 to 31 March 2024 and will offer loans for operating capital of up to S$500,000 (US$373,000).

Tax Increases for MNEs

The Organization for Economic Co-operation and Development (OECD BEP 2.0 effort might have a net fiscal impact that “may not be favourable” to Singapore, according to the Occasional Paper on Medium-Term Fiscal Projections published by the Ministry of Finance.

BEPS 2.0 will make it more challenging to employ tax incentives to entice new investments to Singapore, which may affect the country’s competitiveness. For example, under Pillar 2, major multinational enterprises (MNEs) may see other jurisdictions take the difference of up to 15% if their effective tax rate (ETR) in Singapore is less than the 15% worldwide minimum corporation tax rate.

To maintain Singapore’s tax integrity after adopting BEPS 2.0 and to increase MNEs’ Singapore ETR to 15%, it was announced that the implementation of the DTT in Singapore will be scheduled for 2025, subject to further alignment with broader international developments.

Singapore MNEs should be aware that while the introduction of the GloBE standards and DTT is expected in 2025, several jurisdictions, including Switzerland, South Korea, and the European Union, have already stated their desire to begin implementing the rules as of 2024. Hence, if they have a presence in such jurisdictions in 2024, they might still be affected by the GloBE laws.

Additionally, although foreign MNEs with Singapore operations are exempt from the Singapore DTT requirements as of 2024, this also depends on their particular profiles. Some of them may eventually be liable for a top-up tax outside of Singapore for their Singapore operations.

The Brand-New Business Innovation Scheme

The new Enterprise Innovation Plan, which enhances tax deductions for Singapore enterprises in their innovation activities, is included in Budget 2023. The program aids small and medium-sized businesses to strengthen their financial position to handle upcoming challenges.

• Companies are currently permitted to deduct up to 250 per cent of their qualifying costs for innovation activities. These tax deductions would increase to 400 per cent for five innovation-related activities under Budget 2023. These are:
  • Singapore-based research and development.
  • Intellectual property (IP) registration, such as for patents, trademarks, and designs.
  • IP rights acquisition and licensing.
  • Polytechnic- and Institute of Technical (ITE) Education-based innovation.
  • Training through programs that are linked with the Skills Framework and approved by SkillsFuture Singapore
• The initiative will cap the amount that can be spent on each innovation activity at S$400,000, except for projects involving ITEs and polytechnics. The maximum cost for these activities will be S$50,000.
• The program enables businesses to choose a non-taxable cash payout at a cash conversion ratio of 20% or up to S$100,000 of qualified expenditure in place of tax deductions or allowances. Even while smaller businesses may pay little or no taxes, the payment will assist them in covering the costs of their innovation activities, according to Mr Wong.

The following list contains five qualifying activities.

1. Qualifying R&D Carried Out in Singapore

Businesses engaged in R&D in Singapore currently receive a 100 per cent tax deduction for all allowable costs related to R&D initiatives. In addition, for such initiatives, there is an additional 150 per cent tax deduction for employee expenditures and consumables.

The government currently provides a 400 per cent tax exemption for the first S$400,000 (US$298,000) of consumables and staff expenses incurred on eligible R&D projects carried out in Singapore under Budget 2023.

The incentive is valid from the Year of Assessment (YA) 2024 through the assessment Year of Assessment (YA) 2028.

2. Increased Tax Deductions for Eligible Intellectual Property Registration Expenses

If you incorporate a company in Singapore, the IP laws are quite favourable and lucrative. Currently, businesses can deduct 200 per cent of the first S$100,000 (US$74,600) of eligible IP registration (for patents, designs, trademarks, etc.) expenses from their taxes.

This incentive has been increased by Budget 2023 to a 400 per cent tax discount for the first S$400,000 (US$298,000) of eligible IP registration fees for each of the YAs from 2024 to 2028.

3. IP Rights Acquisition and Licensing

Companies can benefit from a 100 per cent write-down allowance on capital expenditures on qualifying IP rights under the current tax policies for IP rights.

Also, the first S$100,000 (US$74,600) of eligible expenditures for IP rights licensing qualified for a 200 per cent tax benefit.

Additionally, this incentive has been enhanced in Budget 2023 to 400 per cent tax exemptions or deductions for the first S$400,000 (US$298,000) of qualifying expenditures on the purchase and licensing of qualifying intellectual property rights. This is valid for the years 2024 to 2028.

4. Tax Deductions for Training Expenses

A 400 per cent tax benefit is available for the first S$400,000 (US$298,000) of qualifying training expenses for courses that SkillsFuture Singapore has authorised. The increase in this is due to a complete tax deduction.

5. Tax Deductions for Projects Involving Innovation That are Completed By Polytechnic Institutions and Other Qualifying Partners

A 400 per cent tax deduction program for up to S$50,000 (US$37,300) of qualifying expenditure of qualified innovation projects has been introduced in Budget 2023 to encourage businesses to work on innovative projects with local polytechnics, the Institute of Technical Education or other eligible partners. This is valid for the year 2024 up to 2028.

Employer Changes

1. Raising the CPF Wage Cap

Singapore households will receive some much-needed financial assistance from Budget 2023 in the face of growing expenditures. Because of this, in 2026, the CPF Monthly Salary Ceiling will increase from S$6,000 to S$8,000.

To give employers and workers time to prepare for the changes, the hikes will be implemented gradually over four years. Singaporeans will benefit from these improvements as it helps them develop a strong retirement nest egg account.

2. Increasing the Fund for the Progressive Wage Credit Scheme (PWCS)

To provide transitional help for employers, the PWCS was included in the budget for 2022. It helps to co-fund mandated wage increases for low-income workers. To support the pay rise, it will provide an additional S$2.4 billion to the PWCS fund.

The Singapore Government would contribute up to 75 per cent of salary hikes for workers making up to S$2,500 per month under this year’s budget. For workers making between S$2,500 and S$3,000 per month, it will co-fund 45 per cent of salary hikes.

Employee Changes

1. CPF Transition Support Program for Platform Employees

Platform workers under the age of 30 will have to contribute to CPF by 2024. Also, they will need to match the contributions provided by their employers. This alignment would result in higher CPF payments from platform workers, which will have an impact on their take-home pay.

As a result, the CPF Transition Assistance plan will be included in this year’s budget. For the first four years, the scheme will help lower-income platform workers who are having a difficult time adjusting to the increase in CPF contribution rates.

2. Government-Paid Paternity Leave and Unpaid Infant Care Leave Will Both Be Doubled

Fathers have a crucial role in creating stable, complete families. Therefore, two more weeks will be granted freely to qualified working fathers of Singaporean children born on or after 1 January 2024.

Employers will have time to react due to staffing and operational issues brought on by offering a lengthier leave, thanks to the optional conditions.

Throughout the first two years of a child’s life, unpaid infant care leave for each parent will increase from six to twelve days annually. In 2024, the extended leave policy will go into effect.

More Funding for the Singapore Global Enterprises Initiative

The Singapore Global Enterprises initiative, which offers specialised capacity-building initiatives for local businesses, such as for internationalisation, innovation, and the promotion of new alliances, will receive a S$1 billion (US$746 million) boost as part of Budget 2023.

More Funding for the National Productivity Fund

The National Productivity Fund (NPF) was set up to increase corporate productivity and employee training in 2010. The NPF will be given an additional S$4 billion (US$2.9 million) in funds under budget 2023.

The NPF’s mandate has also been widened to include helping companies develop new capabilities, train their workers, and help boost the home economy.

The Conclusion

Mr Wong reiterated in his Budget speech the significance of protecting Singapore’s future through the country’s economy, workforce, and citizenry.

The measures in this year’s budget are also a part of the Future Singapore exercise, a comprehensive plan to develop Singapore’s future while taking Singaporeans’ perspectives into account.

As a business, if you want to take full advantage of all the grants and schemes the Singapore government offers, you should engage a knowledgeable corporate service provider to help you. They would ensure your business stays compliant with the rules and regulations as well as saves on cost by leveraging the different grants you are eligible for.

Following the conviction, all four individuals will be debarred from operating in the EA industry permanently. The EAs, their licensees and the respective sentencing outcomes are as follows.

Case Details

Investigations by the Ministry of Manpower (MOM) revealed that all four individuals had performed or abetted the conduct of illegal EA activities:

• Iris and Kiff had facilitated the employment of two and one Work Permit Holders (“WPHs”), respectively, when they no longer held an EA licence.
• Grace had allowed Iris to use her EA’s account to make work permit applications. Grace also serviced a former client under Pauline’s EA, performing EA work there without being registered.
• Iris and Kiff had also overcharged two WPHs of agency fees by $1,172.49 and $7,538.41.

Advisory to Employers and Employment Agencies

Operating an EA without a licence is a serious offence. Offenders can be fined up to $80,000 or jailed for up to two years, or both. EA operators who have been convicted of any criminal offence or have contravened the EAA or licence conditions can have their licences revoked. Anyone who abets an unlicenced EA may also be liable for the same penalties.

To protect work pass holders, Singapore EAs are allowed to collect no more than one month of a worker’s monthly salary for each year of service, capped at two months’ salary. EAs who do not comply with the EAA or Employment Agency Licence Conditions can face a fine up to $5,000. Those who re-offend may also be jailed for up to six months.

Source: MOM