HSBC Treasury Management Profiles 2018 -

Current section, Introduction

Introduction

The city state of Singapore is one of the most pro-business and open economies in the world. It is a world leading financial centre and a high-tech hub, and has one of world’s highest per capita GDPs (USD90,530, according to IMF data). The economy depends heavily on exports and as such is sensitive to the fortunes of the global economy and its trading partners. The recent upturn in the global economy, particularly in the global electronics trade, has helped stimulate economic growth in 2017. The country’s manufacturing sector, which accounts for a fifth of the country’s economy, grew by 18.4 per cent year-on-year in Q3 2017, faster than the 8.4 per cent growth in Q2, driving overall economic expansion to 5.2 per cent year-on-year (2.9 per cent on Q2). In recognition of the country’s economic recovery throughout 2017, the Ministry of Trade and Industry upgraded its forecast for economic growth to 3 per cent-3.5 per cent from 2 per cent-3 per cent. Domestically, an ageing population (in June 2017, the percentage of residents aged 65 and over was 13 per cent, up from 7.5 per cent a decade earlier) and shrinking workforce (the resident old-age support ratio was 5:1 in June 2017, down from 7:7 a decade earlier, indicating that there are few fewer working-age adults to support each resident aged 65 years and over) is focusing government policy on healthcare and age-related infrastructure, lifelong learning and transportation infrastructure; infrastructure spend is set to increase from SGD18.3 billion in 2017 to SGD30 billion in 2020. The Singapore government’s long-term economic strategy is to turn Singapore into a labour-lean economy with growth based in innovation, digitalisation and automation.

To read the detailed report, please click on the Download PDF option

Legal and regulatory

  • Foreign exchange and domestic currency (SGD) accounts can be held by residents both domestically and abroad. Resident domestic currency accounts are freely convertible into foreign currency
  • Non-resident bank accounts are permitted in both foreign and domestic (SGD) currency. Non-resident domestic currency accounts are freely convertible into foreign currency
  • Singapore imposes no exchange control formalities or approvals for any form of payments or capital transfers

To read the detailed report, please click on the Download PDF option

Taxation

  • Singapore taxes on a territorial basis. Resident and non-resident companies are subject to tax on Singapore-sourced income and foreign income remitted or deemed remitted to Singapore
  • The corporate tax rate is 17 per cent
  • There is no capital gains tax in Singapore

To read the detailed report, please click on the Download PDF option

Payment instruments and systems

  • Cash is an important payment medium in Singapore, particularly for low-value retail transactions. Although cheque use is in decline, it remains a popular cashless payment instrument for both retail and commercial payments. Cheques can be denominated in SGD or USD. Mobile payment schemes are available and increasingly popular with consumers. There were 3.2 billion e-money transactions in 2015, with a total value of SGD2.7 billion
  • Singapore operates three national payment systems: MEPS+, an RTGS system; the ACH, which is divided into the IBG, SGDCTS and USDCTS subsystems; and NETS, for ATM and EFTPOS transactions

To read the detailed report, please click on the Download PDF option

Cash management

  • Domestic and Cross-border notional pooling and cash concentration are permitted in SGD and USD. Structures may have withholding tax implications for non-residents which are not part of an Approved Finance and Treasury Unit
  • A range of collection services are available, including lockbox services
  • Singapore is a popular location for regional and global cash concentration header accounts. Regional treasury centres established under the terms of Singapore’s Approved Finance and Treasury Centre policy benefit from a concessionary 8 per cent tax on qualifying income from overseas-related companies

To read the detailed report, please click on the Download PDF option

Electronic banking

  • Electronic banking is available in Singapore. There is no bank-independent electronic banking standard
  • Internet and mobile banking services are provided by the country’s banks for both corporate and retail purposes. There were an estimated 2.4 million mobile banking users in 2016

To read the detailed report, please click on the Download PDF option

 

 


To read the full report on Singapore and to discover more on these and other topics, including banking and trade, please click on the Download PDF option.

Sources:

  • Ministry of Trade and Industry
  • Monetary Authority of Singapore
  • Statistics Singapore
  • International Monetary Fund

The materials contained on this page were assembled in May 2017 (unless otherwise dated).

 

Disclaimer

This document has been produced by HSBC Bank plc and members of the HSBC Group (‘HSBC’), together with their third-party contributor, WWCP Limited. We make no representations, warranties or guarantees (express or implied) that the information in this document is complete, accurate or up to date. We will not be liable for any liabilities arising under or in connection with the use of, or any reliance on, this document or the information contained within it. It is not intended as an offer or solicitation for business to anyone in any jurisdiction. The information contained in this document is of a general nature only. It is not meant to be comprehensive and does not constitute financial, legal, tax or other professional advice. You should not act upon the information contained in this document without obtaining your own independent professional advice. The information contained in this document has not been independently verified by HSBC.

This document contains information relating to third parties. The information does not constitute any form of endorsement by these third parties of the products and/or services provided by HSBC or any form of cooperation between HSBC and the respective third parties.

Under no circumstances will HSBC or the third-party contributor be liable for (i) the accuracy or sufficiency of this document or of any information, statement, assumption or projection contained in this document or any other written or oral information provided in connection with the same, or (ii) any loss or damage (whether direct, indirect, consequential or other) arising out of reliance upon this document and the information contained within it.

HSBC and the third-party contributor do not undertake, and are under no obligation, to provide any additional information, to update this document, to correct any inaccuracies or to remedy any errors or omissions.

No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of HSBC and the third-party contributor. Any products or services to be provided by HSBC in connection with the information contained in this document shall be subject to the terms of separate legally binding documentation and nothing in this document constitutes an offer to provide any products or services.