The Urban Redevelopment Authority (URA) has release data showing the surge in median rentals of non-landed residential properties to $32.41 per square metre (PSM) in May from $30.54 psm in January, while rental for units in the central region stands at an even higher price of $36.89 psm. Currently, the maximum monthly rental for non-landed residential properties in central Singapore stands at $114.58 psm.

Across Singapore, maximum rental swerves between $33.65 psm to $60.87psm. while minimum rentals varies between $10.18 psm to $14.36 psm.

Market watchers commented that this surge in residential rents is a direct result of an economy that is picking up as well as a strong property market. The rising number of property owners who increase rent in a bid to earn higher returns could be another contributing factor to the rental surge.

Mr James Nuben of Rikvin Corporate Services said that factors such as the increase in housing demand by more foreign individuals who incorporate a Singapore company, and relocate to the country, also adds to the rise in rental figures.

Rikvin Corporate Services specialises in Singapore company incorporation and the application of Employment Passes or EntrePasses for foreign individuals and companies.

“We get a large number of foreign businessmen looking to incorporate a company in Singapore and wanting to move here to run their operations because the quality of living is very good. Plus, more international companies are also setting up a presence in Singapore and bringing in more foreign talent, who will require accommodations,” said Mr Nuben.

“Business have started to relocate to Singapore and are bringing in a lot of foreign workers, which have increased demand for residential housing, as compared to the first half of last year, when companies were shedding staff,” confirmed Donald Han, managing director of Cushman and Wakefield.

However, Mr Colin Tan, head of research and consultancy at Chesterton Suntec International thinks otherwise - that the rental hikes are due to a sharp drop in housing supply. The number of demolitions conducted in the fourth quarter last year saw 1,441 units torn down compared to the 1,400 units available.

Mr Tan said that this is because there were more collective sales, resulting in more units disappearing. The demolitions caused a drop in the number of units - only 1,407 units, available for rent for the first quarter.

“The higher number of demolitions is probably a one-off effect. The numbers of demolished units returned to about 400 units-odd in the first quarter of this year. Rentals will increase as there are fewer units available and there is a high demand for them,” added Mr Tan.

On a brighter note, Mr Tan said he expects the rental hikes to stop climbing in the next few months.

However, Mr Han said Singapore’s economic growth will bolster rental prices, marking an increase of 5 per cent to 8 per cent by the end of the year. This increment makes it a good time for homeowners who want to lease out their properties to guard against volatile markets and inflation.

“Yields have risen slightly to 3 per cent to 3.8 per cent and are likely to go up over 4 per cent at the end of the year. With the low interest rate of 1 per cent to 1.2 per cent, this is a good time for residential yields,” said Mr Han. ]]> http://www.rikvin.com/press-releases/singapore-residential-units-report-higher-rent/feed/ 0 http://www.rikvin.com/press-releases/singapore-government-increases-spending-for-tech-sector/ http://www.rikvin.com/press-releases/singapore-government-increases-spending-for-tech-sector/#comments Thu, 08 Jul 2010 08:19:55 +0000 admin http://www.rikvin.com/press-releases/singapore-government-increases-spending-for-tech-sector/ Research firm IDC has projected that the Singapore government’s spending for information and communication technology (ICT) is set to grow by 3.5 per cent annually to US$1.5 billion (S$2.1 billion) in 2003.

The Infocomm Development Authority of Singapore (IDA) added that it has plans to invest S$1.1 billion in about 350 ICT tenders for this financial year (FY) which ends on 31 March 2011.

IDC senior market analyst Gerald Wang said this increase in spending is certainly good news for the industry.

Mr Wang said that he expects 50 per cent of the new tenders released in 2010 to multiply business opportunities for a wide range of vendors, as these small projects are less than S$500,000 each.

Mr James Nuben of Rikvin Corporate Services says that the number of foreign individuals incorporating a Singapore company to run ICT-focused businesses such as building and releasing online micro-transaction games for social networks, or provide cloud-computing services, has also been steadily increasing.

"The growth potential for foreign investors setting up companies to expand the ICT industry is very huge and Singapore is a great place to incorporate a company because it provides a very safe environment for businesses to grow," said Mr Nuben.

Rikvin Corporate Services specialises in Singapore company formation and staff relocation services, including work visa applications for foreigners.

Even though the Government appears to be spending less by awarding S$1.6 billion and S$1.12 billion worth of ICT contracts in FY2008 and FY2009 respectively, the figures do not reflect the actual increment.

Instead, the figures appear to drop because they included huge one-time projects that include the Standard ICT Operating Environment (SOEasy) and the Next-Generation National Broadband Network (NGNBN). The regular ICT expenditure has actually been increasing consistently when the huge projects are not included in the spending numbers.

"After deducting the NGNBN project’s sum of S$250,000, the S$1.1 billion projected spending for this year is significantly more than last year’s S$870 million. I expect future government projects in Singapore to focus on building upon what has already been built before," said Mr Wang.

ICT spending with a focus on cloud computing, social networking, business analytics and technology will help the Government strengthen their collaboration with citizens and reach out to citizens.

"Proposals that will allow the government agencies to reduce huge upfront capital expenditures and manage operational expenses will be the most well-received," said Mr Wang.

As Gillard moves to put a brake on the population surge, opposition leader Tony Abbott has accused her of a policy back flip.

Gillard, who staged a swift and surprising leadership takeover from Kevin Rudd last Thursday, has said that the population policy needs to strike the right balance between growth and sustainability.

Just before he stepped down as Australia's Prime Minister, Rudd had endorsed a 'Big Australia' policy, calling for the population to grow from 22 million by 2050.

"I don't believe in a 'big Australia'," she said. "I'm indicating a different approach," she told the Nine Network's Sunday Today programme.

"I think if you talk to the people of western Sydney or Melbourne, or the Gold Coast growth corridor in Queensland, people would look at you and say, 'Where will all these people go?'"

In 2009, the Australia's population grew 2 per cent - faster than any developed country - with new immigrants making up the surge in numbers.

Gillard said the government should be focusing on their capacities to provide roads and services needed to support a larger population.

The Prime Minister's new cabinet will also probably include a Minister for Sustainable Population to examine growth capacity.

Australia's continuous economic growth fuelled by demand for her minerals and energy resources over the past 16 years has created skill shortages that are often filled by immigrants.

However, immigration remains a sensitive issue in a country where run-downed fishing vessels filled with asylum seekers mainly from Afghanistan and Sri Lanka are continually spotted on the Australian shoreline.

"This place is our sanctuary, our home, but immigration for skilled labour is still needed," Ms Gillard said, adding that Canberra would continue to accept refugees. "I don't want business to be held back because they couldn't find the right workers.

"But I also don't want areas of Australia with 25 per cent youth unemployment because there are no jobs."

Under Mr Rudd, Australia suspended claims for asylum from Sri Lankans for three months and Afghans for six.

According to the Mercer 2010 Quality of Living survey, Sydney makes the ranks as the highest city for Australia at 10th place, followed by Melbourne a(18th), Perth (21st) and Canberra at 26th position. Singapore, at 28th place, tops as the most liveable city in Asia.

Mr James Nuben of Rikvin Corporate Services in Singapore said, "With more countries putting a cap on immigration, more foreign workers and investors will look to Asia for economic growth and development."

Britain has followed in the footsteps of Australia as the UK government announces a cap on the number of foreign workers entering the country.

"Singapore stands as a clear choice as the next destination for potential market growth as she welcomes immigrants and foreign workers while other countries shut them out. She is set to see more companies incorporated and more foreign talent flocking to the leading financial hub of Asia,"said Mr Nuben.

The upward trend for PEPs is observed from 2009's economic downturn when the number of jobs fell, creating an unstable job market. Many PEP holders say the pass gives them greater stability and flexibility when they change jobs or are seeking new employment.

Introduced in 2007, the PEP is designed to attract highly skilled non-Singaporeans to work here without being tied to a specific employer. However, the PEP differs from the traditional employment pass in that it is not renewable and is only valid for five years.

Mr James Nuben of Rikvin Corporate Services, says that the PEP is granted to foreigners who have worked in the country for some time after graduating from Singapore education institutes, or for foreign professionals who wish to seek employment in Singapore. He said that the rising number of contract work in Singapore has also led to increase of foreign professionals applying for PEP.

Rikvin Corporate Services specialises in Singapore company formation and staff relocation services, including work visa applications for foreigners.

"The PEP gives foreign individuals the time, security and flexibility to seek the type of job they want. The traditional employment pass states the pass holder must leave Singapore within 30 days of terminating his job. The PEP's 6-month unemployment period allows foreign professionals more time to find a new job while still remaining in Singapore," says Mr Nuben.

While MOM declines to reveal the exact number of non-Singaporeans holding the PEP, the government body has said that there are approximately 115,000 PEP holders in Singapore as of December 2009.

MOM also said that a large number of PEP holders are working in major industries such as finance, insurance, science and technology, and most of them hail from the United States and countries across Europe and Asia.

"[This] scheme is an integral part of MOM's efforts to attract and retain global talent and to ensure a more flexible working experience," says Miss Christine Loh, director of the International Manpower Division at MOM.

Rikvin announced the launch of an online Singapore Business Portal on its website at www.rikvin.com for entrepreneurs worldwide interested in setting up their business in Singapore. The portal provides you with comprehensive information on how to incorporate your Singapore business and provides you with in-depth information on Singapore Migration Visas. An extensive FAQ section, guides and documents will leave very little unanswered.

Singapore is ranked 1st for the ease of doing business in Asia (World Bank report: "Doing Business 2007: How to Reform") and 1st for being the least bureaucratic place for doing business in Asia (Political and Economic Risk Consultancy, June 2006). These are remarkable testimonial to Singapore’s reputation as the ideal location for any business

Our online incorporation service was the first of its kind in Singapore, and has proven to be an invaluable tool for professional intermediaries who require a swift incorporation process.

Singapore Office

According to Ragini Dhanvantray, CEO of Rikvin Consultancy , Singapore is fast becoming the business city of choice, having had the recognition of excellent business infrastructure, political stability, and close economic ties with many of the world's leading economies, there has never been better time than now, to set up your business in Singapore.

We are very excited about the total one stop solution portal for new service. The new forum will become an invaluable source of Singapore business for entrepreneurs worldwide.

One Stop Singapore Incorporation & Visa Portal

Rikvin specializes in providing company incorporation, registration and administration processing for all business types and sizes in Singapore and throughout the world. In addition, we facilitate the incorporation of our clients' businesses and manage their statutory affairs. We provide the best company formation service, management and administrative facilities with maximum efficiency and productivity.

Rikvin Consultancy, a Singapore-domiciled company established in 1995, is now a part of the Rikvin Group of Companies providing corporate solutions to entrepreneurs worldwide.

Established in 1995 and well recognized for its service quality, Rikvin Consultancy specializes in providing Singapore company incorporation, foreign company business registration, and related business advisory services in Singapore.

Rikvin consultancy provides highly professional company incorporation services, both in attractive standard packages as well as customized services. Online incorporation being a hallmark service, other services of Rikvin include:

• Offshore Incorporation
• Work Visas
• GST Registration Service
• Accounting Services
• Tax Planning & Consulting

As of 1st June 2009 it has become compulsory for operators of temporary of markets or food centres to be licensed.. They become liable for any lapse of hygiene. It is now a prerequisite that the operator has to be part of a registered society or professional managing agent “ to ensure clearer accountability” a guideline set out by Minister of Environment and water resources Mr Yaccob Ibrahim.

Prior to this regulation only stallholders were licenced but not operators of specified food place. The “ Rojak Poisoning” caused 154 people to fall sick and 2 died eating Indian Rojak from stall 320 at the market.

In Parliamentary debate Ms Sylvia Lim non constituency MP questioned the changes made following this most unwelcome incident particularly in a society like Singapore where eating is part of our culinary culture. Dr Yacob replied that there was a need to strengthen our regime to uphold the high standards and to minimize such outbreaks.

Strict measures include more frequent checks on stall holders and food centers by government inspectors. Also the imposition of stiffer penalties for poor food hygiene practices and the dire need to inculcate proper educational methods for food handlers and the public

Rikvin is the leading authority in company formation in Singapore. We can help you incorporate your company with ACRA in less than 3 hours. We can also assist you in obtaining the required licenses and permits. To learn more about our Incorporation Services please refer to Singapore Company Incorporation Services

Namely two sets of goals for the industry CDAS is aiming to double the accountancy sector’s contribution to Singapore’s GDP from the existing 0.4% to about1% over the next decade. Additionally it also aims to double the sector’s exports contribution of professional accountancy services to the region from the current 22% to 50%.

CDAS has 10 recommendations with a view to reach its goal of enhancing Singapore’s Accountancy industry. Singapore is steadily and surely transforming into a leading regional accountancy hub. Statistics show there are 7,000 MNC’s that have established a business presence in Singapore. Further the accountancy sector according to reliable statistical reports show that about $1 billion revenue has been generated to Singapore in the last decade alone.

More and more accompanies are being formed in Singapore and this will certainly create a demand for accountancy service - a service vital to any business or industry or enterprise.

It is anticipated with the current figures of $30.8 billion in 2008 generated by accountancy figures by 2013 it should reach Us $ 38.3 billion. Currently Singapore’s accountancy and auditing standards have primarily catered to domestic demands within Singapore. With the implementation of CDAS recommendations it will enhance Singapore’ s accountancy sector to cope or be on par with the international standards.

Singapore is slowly and surely positioned to transform into a leading regional accountancy hub. Factors that contribute to Singapore becoming a forerunner and an international for accountancy services include the following factors- excellent infrastructure, impeccable reputation for integrity availability of highly qualified accountancy professional and a well established accountancy network.

Established international firms like KPMG .Grant Thorton, PKK, PWC and Deloitte Touch have their presence in Singapore so the need to CDAS recommendations to keep on par with regional and international standards.

Rikvin, a Singapore-based firm that provides complete range of Singapore company incorporation, accounting, tax, immigration and related compliance services for startups and established companies worldwide. For more information on accounting services, please refer to Singapore Accounting Services

Who must file personal tax return?

• If you are an EP/PEP/EntrePass holder (Even if you have not taken salary, but have declared to MOM in order to secure your employment pass),
• If your annual income in Singapore in 2009 is above S$22,000,
• If you have received communication from Inland Revenue Authority of Singapore (IRAS) requesting you to file personal income tax,
• If you are in receipt of Singapore dividend income in the year 2009 and wish to claim for the tax deducted at source.

Deadline for Submitting Personal Income Tax Returns

You are required to e-file or mail your personal income tax return form to IRAS by 15 April 2010. If you need an extension of time to submit your income tax return, you must notify IRAS by stating the reason and an estimate of your chargeable income. Request for filing extension is subject to approval from IRAS.

Consequences of Failure to Submit Personal Income Tax Returns

It is mandatory by law to file for the annual tax return. If you do not file your income tax return by 15 April 2010 and have not applied for an extension, the consequences may include one of the following:

• Letter of Composition;
• Summons; and/or
• Warrant of Arrest.

How to proceed?

Rikvin can assist you in your personal income tax filings. Our personal tax filing services include:

• Registration for new tax payers
• Preparation and filing of income tax return based on your income and determination of possible deductions and reliefs that are applicable to you
• Request for extension of deadline, if necessary
• Preparation of Form IR8A for employees
• Tax planning and tax advice

If you would like us to assist you with your personal income tax return, please contact us at +65 6438 8887 or send us an email at ptax@rikvin.com.

Related Links

• Singapore Corporate Tax
• Singapore Personal Income Tax
• Download Singapore Personal Tax Tips

All accounting experts agree unanimously that 'Singapore's competitiveness remains a key concern' and to draw more foreign talent to Singapore by lowering the tax rates will significantly help solve the issue. According to them, "Singapore needs to lower the top personal income tax rate - to something closer to the 17 per cent which is the current corporate tax rate - to draw more talent to its shores." Singapore's current personal income tax rates, especially income above S$160,000, are higher than the corporate tax rate which is 17% for 2010.

Both Owi Kek Hean, head of KPMG tax services (Singapore) and David Sandison, PwC Services LLP, are convinced that it will be a huge attraction for top-notch, high-income talent overseas who are faced with the super-tax to move to Singapore. Owi Kek Hean believes the top income tax rates for individuals can be lowered to about 16% in order to stay competitive with Hong Kong.

This will also serve as a huge incentive for sole proprietors who are taxed at personal income tax rate, according to Wu Soo Mee, partner, human capital, Ernst & Young Solutions LLP (EY). Sole proprietors will not be forced to corporatized and they will be able avoid the big expense of corporatization.

Besides lowering of personal income tax rates, the accountants believe the government can do more with incentives packages for businesses. By extending and/or expanding tax incentives such as Regional Headquarter to encourage more foreign businesses to set up their regional or global headquarters in Singapore will boost Singapore’s economy tremendously.

Deloitte points out that the government can attract more foreign investment by expanding on existing incentives such as the Standard Tier Financial Sector Incentive Scheme, the Global Trader Programme and the Financial Treasury Centre Incentive. Deloitte also says that it will lessen the tax burden for SMEs if the tax exemption on chargeable income goes from S$300,000 to S$400,000. It will help with the cash flow during this hard economic times and provide more room for growth for local SMEs.

Another possibility can be an extension on tax amnesty on the remittance of foreign-sourced income, which ended on January 21, 2010. Lim Gek Khim, tax partner at EY, explains that "full liberalisation of Singapore's foreign-sourced income exemption regime will finally put us on par with Hong Kong and Malaysia. Lifting the conditions imposed on the repatriation of foreign-sourced income will encourage the internationalisation of Singapore companies, allow them to mobilise foreign funds and ease cash flow concerns."

Choo Eng Chuan of Ey Tax opines that to encourage more entrepreneurship Singapore government can extend a tax deduction for pre-commencement costs incurred in the six months prior to the date when income is first derived. It would be a fairer solution for start-ups as the current system penalises companies which start generating income early, as opposed to late, in the financial year.

But CIMB economist Song Seng Wun thinks the government is unlikely to reduce taxes this year given the huge budget deficit in the past year. He told the Business Times that it more likely consideration for 2011.

Related Links

• Singapore Corporate Tax
• Singapore Personal Income Tax
• Filing Singapore Tax Returns
• Singapore Tax Report 2010

Singapore is India's largest trading and investment partners in ASEAN. The increasingly close relations between India and Singapore in recent years have been underpinned by a dramatic growth in bilateral trade and investment linkages. India is looking for infrastructure investments, critical technologies and export markets. Singapore has surplus capital and could be a useful partner in infrastructure development in India as well as investment in Indian companies. At the end of last year, there were nearly 2,600 Indian firms in Singapore, about 2.3 times more than the number in 2001, Indian companies is one of the largest contingent of foreign companies in Singapore.

Singapore is India's largest trading and investment partners in ASEAN. The increasingly close relations between India and Singapore in recent years have been underpinned by a dramatic growth in bilateral trade and investment linkages. India is looking for infrastructure investments, critical technologies and export markets. Singapore has surplus capital and could be a useful partner in infrastructure development in India as well as investment in Indian companies. At the end of last year, there were nearly 2,600 Indian firms in Singapore, about 2.3 times more than the number in 2001, Indian companies is one of the largest contingent of foreign companies in Singapore.

Trade activity between Singapore and Russia has been steadily increasing. Our bilateral trade has grown 43% from S$1.32 billion in 2005 to S$1.89 billion in 2006. Since 2000, bilateral trade has increased more than three-fold. Russia is now Singapore’s 33rd-largest trading partner, up from 38th position in 2005. 'With Russia's phenomenal growth since 1999 - more than 5 per cent annually - and growing influence in the global economy, there is renewed interest in the Russian market. On 15 August 2006, Singapore signed a Memorandum of Understanding on Economic Cooperation in Special Economic Zones with Russia. This successful collaboration constitutes a significant government-to-government platform for bilateral engagement and paves the way for closer economic cooperation. Singapore remains a fully committed partner in Russia’s development and expansion abroad. Russia intends to bring its deep expertise in science and technology, and an increasing number of technology-based enterprises into the world market.

More than 700 British companies are represented in Singapore. Opportunities for British companies to do business exist in a broad range of sectors and across the spectrum of consumer and capital goods. Opportunities also exist in project design. Singapore is one of the UK’s key markets in Asia Pacific, just as the UK is one of Singapore’s key markets in Europe.

In tandem with the intensifying business relations between the countries, and strengthening government-to-government ties, expanding regional economic and commercial alliances, and increasing interest in the emerging Asia Singapore is becoming the most preferred host for basing the operations of the companies. They can strike partnerships with Singapore’s vibrant ecosystem of diverse enterprises from all over the world and leverage on Singapore's extensive linkages with global markets, sophisticated manufacturing capabilities, robust intellectual property protection regime and pro-business environment to internationalize.

Rikvin has kicked off a massive expansion plans in line with the escalating demand for one stop incorporation services in Singapore and business management services; Ms. Ragini Dhanvantray says

We are keen on offering comprehensive solutions to our existing as well as prospective clients, so we are widening our service offerings. We are currently seeking alliance from similar business management consultancies from India, Russia, UK and other EU countries. It will be a mutually symbiotic relationship, by which we will service the overseas prospects referred by our partners and in turn we will be referring our clients who wish to enter the overseas markets, to our network partners. We are looking forward for a synergetic relationship from consultancies commanding high caliber of professionalism and commitment to serve the clients. Our ultimate goal is to ease out two way entry procedures for aspiring enterprises and entrepreneurs to set their global foot print

Related Links

• Singapore Company Registration Requirements
• How-to Guides on Setting Up Individual Types of Business
• Singapore Corporate Services