Month: July 2016

Singapore tax structure and tax rates are among the most competitive in the world, second probably only to Hong Kong. Lower tax rates reduce the burden on individuals and companies, reward effort and achievement, attract and retain talent, and promote entrepreneurship.

Globalisation of trading transactions or projects in Singapore is characterised by the involvement of more than there contracting parties, buyers and sellers, brokers, companies or personalities of more than three countries. These deals are closed in Singapore due to its location, business hub facilities, legal and securities advantages. These deals probably should qualify for tax concessions if administratively feasible.

A concessionary tax rate can also serve as an incentive in Singapore’s globalization drive. Globalisation increases international mobility and travelling of staff, managers and overseas postings, etc. A concessionary tax rate will compensate for frequent travelling and entertainment expenses.

Tan Kok Leong

Principal,

TKL Consulting

The Competition Act of 2004 might, to a certain expect, serve to alert small and medium-sized enterprises (SMEs) in Singapore to avoid reaching possible anti-competitive agreements involving abuse of their dominant position in the market by price fixing, bid rigging, market sharing or production control etc.

Not all agreements reached between SMEs are penalized – only those with appreciable impact on competition.

Singapore is an open market because it is easy to register and set up any business and to enter into any market one chooses – except some restricted fields such as backing, finance, and newspaper publishing. For an SME to dominate a market with fixed assets of only $15 million or a labour force of less than 200 staff is extremely difficult, it not impossible.

Globalisation is pushing SMEs to go across borders and venture overseas – which strengthens their competitive behaviour rather than diminishing it .

Tan Kok Leong

Principle

TKL Consulting

Monday, January 9, 2006

One of the key global trends likely to impact on the world economy 2006 is global liquidity, due to the oil exporters’ collective surpluses, said to be around US$400 billion; the rapid accumulation and growth of foreign reserves of the key Asian countries, particularly the great China circle; and the relatively low cost of funds in most in most parts of the financial world. They will be the dominant forces influencing future oil prices, interest rate movements, the rate of slowing down of the US economy, the value of US dollars and the matters.

The impact of China’s growth is likely to be felt more than that of India, as China started its growth, has wider and more areas and sectors for project development, and is culturally closer to Asians.

Tan Kok Leong

Principal

TKL Consulting

Monday, January 2, 2006