1. Introduction

• 1.1 Why Singapore?
• 1.2 Singapore at a glance
• 1.3 Singapore and Australia: the bilateral relationship

1.1 Why Singapore? Opportunities for Australian businesses

Singapore is one of the most dynamic and business-orientated nations in the world. Its excellent connectivity, world-class infrastructure, strategic location, and breadth of global industry experts offer unrivalled opportunities for Australian businesses. I ts geographic location lends itself as a gateway to the region.

Consider the following:

• Singapore is a global financial hub and is considered to be one of the premier asset management centres of Asia with steady growth and total assets under management of around SGD 2.6 trillion
  
• As a business centre, there are some 37,400 international companies with headquarters in Singapore, including 7,000 multinationals with at least half of them using Singapore as their regional headquarters for their Asia Pacific business
• The World Bank Doing Business Report 2017 ranked Singapore as the second easiest place in the world for doing business – Singapore had previously held top position every year from 2006
• Singapore is Australia's largest trading partner in Southeast Asia, and fifth largest overall
• It has the fifth largest GNI per capita in the world –USD 81,360
• Singapore is the only country in Asia to hold a AAA credit rating from each of the world's three leading agencies.

Pro-business, with incentives for international companies: Government agencies in Singapore share a pro-business approach and welcome foreign companies wanting to use the country for strategic growth or to set up a regional office, offering grants and tax incentives.

Gateway to the region: Australian businesses and investors can take advantage of Singapore's huge trade network, which incorporates 20 regional and bilateral trade agreements.

A global transportation and trading hub: Singapore has positioned itself as a global trading centre and commercial gateway to the world. With 200 shipping trade routes connecting to more than 600 ports across 120 countries, the Port of Singapore is one of the world's busiest. Changi Airport draws approximately 106 airlines that fly to some 320 cities in about 80 countries.

Transparent and strong tax and accounting systems: Singapore offers a competitive tax regime with its low tax rate and extensive incentives. Businesses operating in Singapore benefit from its almost 70 comprehensive double taxation agreements, while its financial reporting standards are carefully modelled on the International Financial Reporting Standards.

Focus on innovation: Singapore is restructuring its economy with an emphasis on promoting innovation and internationalisation as a means of supporting the next generation of businesses. This was made apparent in Singapore's 2016 Budget, with the government stressing its ambition to transform the economy and industries through "enterprise and innovation".

Establishing foundations for high-value and creative enterprises offers tremendous opportunities for Australian businesses with expertise in these areas. Exciting prospects exist in the following sub-sectors:

• Automotive
• Food and beverages
• Lifestyle products and services
• Oil and gas
• Water technology and management
• Biotechnology and biomedical sciences
• Aged healthcare
• Financial and professional services
• ICT and digital technology

For more information, access the full Singapore Country Starter Pack

1.2 Singapore at a glance

Geography

The Republic of Singapore sits 137 kilometres north of the equator, separated from Malaysia by the Strait of Johor and from Indonesia by the Strait of Singapore. It is made up of a main island, which is 42 kilometres long by 23 kilometres wide, and 63 islets. Singapore has a total area of just 716 square kilometres.

Singapore's climate is warm and humid, with an average daytime temperature of 31ºC and a minimum overnight average of 23ºC. The country receives an average of 1.9 metres of rain a year, and has two annual monsoon seasons – from December to early March, and from June to September.

History

Strategically located at the tip of the Malay Peninsula, Singapore has flourished as a trading post for centuries, with the earliest records of a permanent settlement dating from 1298 AD. Sir Stamford Raffles established the island as a British trading post in 1819, and by 1867 the city formed part of the Straits Settlements (along with Penang and Malacca) to become a British Crown Colony. It was occupied by the Japanese army in World War II, returned to British control after the war, then transitioned to a fully self-governed state in 1958.

The country held its first democratic elections in May 1959, won by the People's Action Party (PAP). Its leader, a young Cambridge-educated lawyer named Lee Kuan Yew, became Singapore's first Prime Minister. A merger with Malaysia in 1963 lasted just two years, and in 1965 Lee announced Singapore was to be a sovereign, democratic and independent nation – officially named the Republic of Singapore.

The modern story of Singapore, from 1965 onwards, is characterised by an ambitious economic policy. Singapore would soon be cited as an economic miracle, transforming itself from a developing country into a developed one in a matter of decades.

Culture

Singapore's population is around 5.5 million, of whom 3.8 million are citizens or permanent residents. Four main ethnic groups are represented: Chinese (who make up 74 per cent of the population), Malay (13 per cent), Indians (9 per cent) and Eurasians (1 per cent). Most locals identify as Singaporean when first asked, before outlining their ancestral heritage.

Singapore has four official languages: English, Malay, Chinese (Mandarin) and Tamil. English is the official language of government and commerce, and is spoken widely across the island. It is also the language of instruction in schools and universities. The other official language is Malay.

Singapore is a truly diverse melting pot of cultures and races, all of which contribute to the city's unique character. The naturally cosmopolitan society is based on an ideology of racial and religious harmony. Race quotas exist across a range of publicly administered sectors, including housing, schools and universities.

Singaporeans tend to be very open and direct, and are generally comfortable working with foreigners. Open displays of aggression or rudeness are rare, but they are not shy about saying no. Explanations and more information are not always readily offered, so it is worth asking more questions should you require further direction or advice. Great emphasis is placed on Asian values including filial piety, respect for elders and focus on the family and community.

Religion is an important part of everyday life for multicultural Singapore. Buddhists account for 34 per cent of the population, followed by Christians (18 per cent), Muslims (14 per cent) and Hindus (5 per cent).

Politics and government

Singapore functions as a parliamentary system of government and has an elected President as head of state, who serves a six-year term. The position is largely ceremonial as it is the Prime Minister who governs the country. Lee Hsien Loong, the son of Lee Kuan Yew, is the incumbent. On the advice of the Prime Minister, the President appoints other ministers from among the Members of Parliament to form the Cabinet. The Prime Minister and Cabinet are answerable to the Parliament. The Singapore Parliament has a single house, whose members are elected by general election every five years.

Economy

Singapore is a highly developed trade-oriented market economy. It has a strong and sophisticated economic structure and is the major regional hub for multinational businesses operating in Asia. The government has long pursued an outward-looking, export-oriented economic policy that encourages trade and investment. This has enabled Singapore to become a global hub with a trading capacity almost three times its GDP.

Singapore has enjoyed strong growth since independence, nudging an average 8 per cent over three decades. It was hit by the global financial crisis in 2008, falling into recession the following year then rebounding. Growth has levelled out at 2.5 per cent in 2012, 3.8 per cent in 2013, and 2.9 per cent in 2014.

With no natural resources to draw on, Singapore is overwhelmingly reliant on its human resources and has a workforce of 3.6 million, who enjoy the world's third-highest wages per capita. The services industry is by far the largest, accounting for up 70 per cent of the workforce, with manufacturing and construction both prominent employers.

The country's major industries include electronics, financial services, oil drilling equipment, petroleum refining, pharmaceutical manufacturing, advanced manufacturing, processed food and beverages, rubber products and ship repair. In recent years, the Government has moved to develop Singapore's services sector, as well as its biotechnology, chemical and petrochemical industries. This realignment has seen Singapore become simultaneously an important financial, trade and wealth management hub for Southeast Asia and a global focus of currency and commodity trading, transhipment and oil and gas refining.

Singapore's economy does carry challenges. As a result of its openness and reliance on trade and investment, it is vulnerable to global economic shocks and was the first Asian nation to enter recession after the 2008 global crisis.

Additionally, Singapore represents a small, crowded, competitive domestic market. A tight labour market means the cost of day-to-day operations can be high; retaining skilled labour and finding reasonably priced office space to rent can be difficult.

Infrastructure

Singapore's infrastructure ranks among the best in the world, with major transport links connected to all main points within the region. Getting around Singapore is made easy by its Mass Rapid Transport (MRT) system and comprehensive bus network. Malaysia can be accessed by car and bus through the Johor-Singapore causeway and the Tuas Second link: Kuala Lumpur is a four-hour drive.

The Global Competitiveness report of the World Economic Forum (2015-16) ranked Singapore second out of 144 countries for infrastructure (with Hong Kong first and Australia 16th). Singapore came third for quality of roads, second for ports and first for air transport.

Fixed-line telephones, mobile phones and the internet are readily available, and all Singaporean households have access to electricity. The World Economic Forum's Global Information Technology Report (2015) placed Singapore first in the world for networked readiness, which assesses the factors that enable a country to fully leverage information and communication technologies for increased competitiveness and wellbeing.

For more information, access the full Singapore Country Starter Pack

1.3 Singapore and Australia: the bilateral relationship

Australia's relationship with Singapore is arguably the closest and most comprehensive within Southeast Asia. This is based on long-standing Commonwealth, defence, education, political, trade and tourism ties, as well as on the two countries' complementary strategic outlook.

Singapore is Australia's largest trade and investment partner in ASEAN and fifth largest trading partner overall. In 2015-16, Australian merchandise exports to Singapore tallied $5.4 billion (its 11th largest export market), while imports from Singapore were valued at $7.7 billion (the eighth largest by source). Services are a key part of bilateral trade, with exports to Singapore valued at $4.3 billion andimported services put at $5.4 billion in 2015-16.

Major services exports include technical, business and professional services and transport. Singapore is also one of Australia's major sources of short-term visitors.

Singapore's investment in Australia, traditionally concentrated in real estate but increasingly diverse, is substantial. At $98.6 billion in 2015, Singapore ranked fifth overall as a source of foreign investment in Australia.

Australia's investment in Singapore, meanwhile, was $67.1 billion in 2015 with a large number of Australian businesses having carved out stakes in Singapore, including all of Australia's major banks, mining companies such as BHP Billiton and Rio Tinto, engineering design and constructive firms such as Lend Lease and logistics groups including Toll.

A Comprehensive Strategic Partnership signed by Singapore and Australia in 2015 agreed to a 10-year road map of joint initiatives – Project 2025 – as a means of enhancing co-operation across economic, foreign affairs, defence and security, and cultural ties. Both countries are anticipating the bolstered partnership to present new trade and investment opportunities in food, agribusiness and infrastructure sectors. The partnership pledged to enhance aviation and maritime connectivity, build additional research and development partnerships, cooperate on tourism campaigns, and develop new growth areas such as Northern Australia.

The Singapore-Australia Free Trade Agreement

The Singapore-Australia Free Trade Agreement (SAFTA), which came into force in 2003, has further underpinned the two nations' strong economic partnership. SAFTA is a wide-ranging and comprehensive agreement that eliminated import tariffs on all goods originating in Australia and Singapore, with Australian services suppliers having enjoyed improved access to the Singapore services market, particularly in education, financial and legal services. Under SAFTA, Australian investors and investments are treated on the same basis as their Singaporean counterparts.

The ASEAN-Australia-New Zealand Free Trade Agreement

The ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) came into force in 2010, further reducing or eliminating tariffs across a region that is home to 600 million people and a combined GDP of around USD 2.2 trillion.

For more information, access the full Singapore Country Starter Pack

2. Getting Started in Singapore

• 2.1 What you need to consider
• 2.2 Researching Singapore
• 2.3 Possible business structures
• 2.4 Manufacturing in Singapore

2.1 What you need to consider

Location

The Singapore government maintains strict control over the territory's limited land, with companies leasing or renting property. In recent years, business parks and R&D clusters have undercut the CBD in a bid to draw organisations to outer areas.

Within the city, popular places such as Raffles Place and Marina Bay, the heart of the financial centre, carry the most expensive office rentals. Outside the city, dedicated development clusters such as One-north (home of the biomedical R&D facility Biopolis), as well as Fusionopolis (dedicated to R&D in the ICT, media, science and engineering industries), and Mediapolis (a self-contained digital media cluster) offer rents that can be more than half the price of those in the CBD.

Changi Business Park and Mapletree Business City house many multinationals, and for industrial space, developers Ascendas, Soilbuild and JTC Corporation offer many options.

Financing your Singaporean business venture

You may be eligible for financing from a variety of sources in Australia, including grants, venture capital and equity-sharing deals. However, banks remain the easiest and most approachable source of funding.

Australian firms with substantive plans to grow in Singapore may qualify for various Singapore Government incentive programs. Singapore's Economic Development Board (EDB) provides a detailed overview of incentives available to foreign firms. Visit the EDB website (www.edb.gov.sg) for information.

Risks

Singapore's business climate largely reflects Western practices and Australian businesses will find operating there relatively straightforward. Perhaps the most obvious risk is its vulnerability to global economic trends and Singapore's recalibration of domestic policies in the wake of the global financial crisis. For example:

• Singapore's open economy makes it susceptible to global trade downturns
• An influx of non-Singaporean workers has led to some anti-foreigner sentiment
• Foreign worker restrictions were tightened in 2012, with the government introducing higher quotas and levies and making it harder to employ foreign staff.

Moreover, Singapore is the world's most expensive city to live for expatriates and business travellers, according to the Economist Intelligence Unit's 2016 report, ranking top for the third consecutive year.

For more information, access the full Singapore Country Starter Pack

2.2 Researching Singapore

Nothing beats comprehensive inquiry, including specific market research, when looking to enter new markets, including Singapore. Key elements of inquiry can include:

• Cultural diversity
• Evolving market trends and differing demographics
• Regulations and changing rules
• Consumer data and competition

Getting help

A variety of research organisations in Singapore can be a major source of information. Austrade provides a range of services for Australian firms seeking to go overseas. The NSW and Western Australian state governments have representative offices in Singapore and may offer more information.

Market visits

You will need to visit Singapore to develop a deeper understanding of your target market and make contacts.

Visit before entering agreements with prospective agents, distributors or other business partners. Consider meeting with several potential partners to give you a basis for comparison. Arrange in-country assistance to help set up your program. This will help you see the right agents and customers who will be briefed and screened for interest and suitability. Numerous trade shows and exhibitions take place in Singapore, and can provide an excellent opportunity to meet potential customers.

Building relationships and making connections

Don't waste time in Singapore doing what you can do in Australia. Various organisations have training courses or seminars that can expand your knowledge about doing business in Singapore, including Asialink Business, Austrade, Export Council of Australia (ECA) and state and territory governments.

Joining a business association can be a handy way to prearrange as many of your meetings as possible and reconfirm them a day in advance. Within 48 hours of your appointment, send an email thanking your contact for the meeting and providing any follow-up information. In addition, the Singapore Business Federation: www.sbf.org.sg champions the interests of Singapore business community in the areas of trade and investment, while the Singapore International Chamber of Commerce:www.sicc.com.sg/ supports international business in Singapore.

Joining a business association is a great way to learn more about the local business community. The Australian Chamber of Commerce, Singapore ( www.austcham.org.sg/), and the Australia–Singapore Chamber of Commerce and Industry (soon to become the Singapore Business Circle; (http://www.ascci.org.au) are useful networks.

For more information, access the full Singapore Country Starter Pack

2.3 Possible business structures

Australian firms interested in establishing a presence in Singapore have several straightforward options. They can form:

• A company
• A partnership, limited liability partnership or limited partnership
• Sole proprietorship
• A branch of the parent company
• A representative office (RO)

Company

Subsidiaries of foreign companies usually register as private companies and may start business immediately after incorporation.

A company is a legal entity, separate and distinct from its owners/shareholders. It can incur obligations and hold property in its own name. Consequently, it can sue and be sued in its own name. It has perpetual existence and can enter into contracts in its own name.

Almost anyone or any company can incorporate. The Companies Act requires a foreign company to appoint two local agents from Singapore to act on behalf of the company. There must be at least one shareholder (can be a corporate body or an individual) and one resident director in the company, with 100 per cent foreign ownership allowed.

Partnerships, limited liability partnerships (LLP) and limited partnerships (LP)

The same principles apply to all three when incorporating a company, but you must appoint a local manager if none of the owners registering a partnership is 'ordinarily resident'.

Partnerships are a form of unincorporated business owned by a minimum of two partners and a maximum of 20. It is not a legal entity separate from its owners/partners. Each partner is jointly and separately liable for all debts of the partnership.

LPs provide limited personal liability for partners who do not manage the LP. It requires a minimum of two partners. An LP is not a separate legal entity, in that it does not have a separate legal character apart from its owners/partners.

For LLPs, a Singaporean manager must be appointed in all cases. The LLP has the liability of a company and the operational flexibility of a partnership. Unlike partnerships and LPs, an LLP is a legal entity, separate and distinct from its owners/partners. It can sue or be sued in its own name. It can also own property in its own name. It requires a minimum of two partners.

Sole proprietorship

A sole proprietorship is a business owned by a local resident or an individual who carries out the business themselves. A local resident is either a citizen, permanent resident, or a foreigner with employment (or perhaps a dependant's pass). A sole proprietorship has unlimited liability and is not a legal entity that is separate and distinct from its owner.

Foreign branch

A foreign incorporated company, which intends to carry on a business in Singapore, may register a branch there.

A local branch is viewed as an extension of the foreign company. An action taken against the local branch is by law an action against the foreign company. The rules that govern the organisation and structure of a local branch are taken from the country in which the foreign company originates.

Representative office (RO)

The representative office must limit its activities to conducting market research and feasibility studies. An RO allows a foreign entity to assess the viability of setting up a permanent establishment in Singapore. It can be registered for a maximum of three years.

For more information, access the full Singapore Country Starter Pack

2.4 Manufacturing in Singapore

The Singapore Government is currently transforming its economy into a high-value manufacturing hub and supply chain nerve centre, powered by information and communications technology. The Future of Manufacturing Plan initiated in 2013 aims to position Singapore as the leading advanced manufacturing hub in the region.

As noted, Singapore is a key manufacturing base for pharmaceuticals, chemicals and electronics, and incorporates a substantial R&D presence. With the relative ease of setting up a business in Singapore, Australian enterprises can establish their own manufacturing operations in-country or form partnerships with local organisations and research institutions.

For more information, access the full Singapore Country Starter Pack

3. Sales and marketing in Singapore

• 3.1 Franchising
• 3.2 Licensing
• 3.3 Direct Exporting
• 3.4 Online Sales
• 3.5 Marketing
• 3.6 Labelling requirements

3.1 Franchising

Franchising is common in Singapore. General contract law governs the relationship between the franchisor and the franchisee. The Franchising and Licensing Association of Singapore is the national franchise body and a member of the World Franchise Council. Selling a franchise can be the right choice for many Australian firms and has been most successful in the food and beverage, hospitality, lifestyle, wellness, and education (particularly early-learning) sectors.

For more information, access the full Singapore Country Starter Pack

3.2 Licensing

Licensing can be a quick and assured way of selling trademarks, intellectual property, design and patent rights, copyright and software into a foreign market such as Singapore. Using this method to get to market is helpful if you are interested in commercialising your intellectual property but do not have the resources or experience to develop and market your goods or services. Selling your licence for commercial use in Singapore will benefit Australian SMEs in the electronics, healthcare, biomedical and automotive industries.

For more information, access the full Singapore Country Starter Pack

3.3 Direct exporting

Exporting directly to a foreign market means involving yourself with every aspect of exporting, including market research, marketing, distribution, and sales and receivables.

Advantages include greater overall control, better margins, and more direct customer relationships. However, going it alone may carry a much higher cost in establishing your business in the Singaporean market, as in-house resources are generally more expensive than outsourcing to experienced professionals.

The biggest selling principles in Singapore are price, quality and service. Potential exporters to Singapore need to be mindful that competition is strong and buyers expect good after-sales service.

Local sales representatives

Local sales representatives use company resources, product advertising and samples, and make presentations to buyers. They may work on commission, and present little risk since they have no exposure to the cost of the goods.

Agents and distributors

Many Australian firms doing business in international markets rely on agents. In the case of Singapore, an agent or distributor will invariably be connected to the wider region and will typically look to sell your product throughout Southeast Asia. Singapore agents are good and reliable salespeople, and distributors have a reputation for delivering goods in an orderly and timely fashion.

Agent: An agent represents the supplier, but does not take ownership of the goods. They generally earn a commission based on an agreed percentage of sales value generated. Usually Singapore-based, they often represent numerous services or product lines, operating as the sole agent for a company's goods or services in that market, or as one of a number of agents.

Distributor: Buys the goods from the exporter then resells them to local retailers or consumers. Distributors may carry complementary and competing lines and usually offer after-sales service. Their fees are higher than agents' because of associated costs. They usually carry inventory, but seldom take on marketing.

Choosing an agent or distributor: The most important thing is that you can establish a close working relationship. Meet with a potential partner to get to know them and observe their knowledge and presence in their own market. Get trade references and consider professional credit checks.

Direct selling

You may choose to contact buyers directly, as well as end users of your product or services. The direct selling path in Singapore is well established. Though low cost and potentially a means of getting a feel for the market at relatively low risk, this DIY approach is not easy.

For more information, access the full Singapore Country Starter Pack

3.4 Online sales

In 2014, Singapore was the largest e-commerce market in Southeast Asia, accounting for SGD 2.7 billion or a quarter of all sales. But this only accounted for one per cent of all retail sales in Singapore suggesting Singaporeans overwhelmingly prefer shopping in-store rather than online. E-commerce sales are forecast to amount to USD 3.3 billion in 2017, still significantly less than retail trade overall, which was over USD 57.4 billion in 2016.

Despite these relatively small numbers, Singapore's infrastructure and supply chain mechanisms make e-commerce a strategically lucrative option. The country has a first-class delivery system, quality infrastructure, and a mature network of logistics service providers.

For direct online sales, Singapore has a wide variety of e-commerce sites that stock international products. While Amazon and eBay remain popular, local sites such as lazada.sg, kwerkee.com, qoo10.sg, and redmart.com are good online platforms.

For more information, access the full Singapore Country Starter Pack

3.5 Marketing

Singapore's consumer base can be divided into two broad categories: cosmopolitans and heartlanders. Cosmopolitans are considered better educated, well-travelled and somewhat wealthier. They will willingly access an international marketplace through e-commerce and are more influenced by trends and the pursuit of luxury. Heartlanders are usually older, travel less and are likely to be less educated.

Marketing strategies for each of these groups will vary with the cosmopolitan group tending to engage more deeply with newer social media such as Instagram. They are more likely to follow international trends, but also expect exceptional quality. Direct marketing, including road shows and shopping centre demonstrations, would appeal more to heartlanders.

Product and service adaptations: Adapting products to meet Singaporean tastes and preferences, and to meet regulatory requirements, will enhance your chances of success.

Branding: Singaporeans are very brand conscious, though quality will always trump reputation.

Sales promotion: Local partners can help draft an advertising and sales promotion to appeal to the local market. Promotional campaigns could be held at shopping centres, hotels and convention halls, and a popular gimmick is giving away free samples at business and commercial hubs.

Advertising and media: Television commercials, advertisements in newspapers and magazines, and specialised trade directories are all successful advertising avenues.

Digital advertising: Digital advertising is becoming more important as internet sales increase and smartphones become the preferred mode for accessing the internet.

Trade shows and exhibitions: An effective way to reach potential new customers is to visit one of the many trade shows and exhibitions held in Singapore. Your local Austrade or state trade office will offer opportunities to apply for funding to attend these events.

For more information, access the full Singapore Country Starter Pack

3.6 Labelling Requirements

Companies must make an inward declaration for all goods imported into Singapore. These goods require an IN Permit through TradeNet®. The process is handled electronically through TradeXchange®: http://www.tradexchange.gov.sg, an electronic data interchange system implemented by Singapore Customs. Invoices must show an accurate description of the goods, quantity or weight, and the country of origin.

Australian businesses that want to re-export or tranship food products in Singapore are required by law (under the Sale of Food Act) to either obtain a relevant trader's licence or register with the Agri-Food and Veterinary Authority of Singapore.

Labels are required on all imported foods and should include:

• Name or description of food
• Statement of ingredients
• Nutrition information panel
• Declaration of foods and ingredients known to cause hypersensitivity
• Declaration of net content in each package
• Expiry date of product
• Name and address of the local manufacturer or importer
• Country of origin

Foodstuffs (including beverages) and drugs are subject to – and must comply with – specific detailed labelling requirements. Specified metric sizes are mandatory for a number of prepacked consumer items.

Businesses may wish to visit the Agri-Food & Veterinary Authority of Singapore website which contains comprehensive information on selling food and beverages in Singapore, including full details of the Sale of Food Act: www.ava.gov.sg.

For further information on labelling guidelines and health products regulatory requirements, visit http://www.hsa.gov.sg.

For more information, access the full Singapore Country Starter Pack

4. Conducting business in Singapore

• 4.1 Culture and business etiquette
• 4.2 Building relationships with Singaporeans
• 4.3 Meetings and negotiations
• 4.4 Dispute resolution

4.1 Culture and business etiquette

Singapore is generally a straightforward place in which to do business, and in most cases what would be considered normal etiquette in Australia applies in Singapore. For starters, English is the language of business and administration.

Large Western multinationals located in Singapore will often exhibit Western-style business cultures, whereas some smaller government departments and private companies will usually embrace traditional Asian culture in their work environment. Local firms are mainly influenced by cultural characteristics: hierarchy, collectivism, risk avoidance and long-term orientation.

Decision-making can be very centralised. The smaller the company, the more likely it is for the senior executive or manager to decide everything. Even in large companies, decision-making can be very autocratic. Seniority, whether in age or title, is universally respected.

Greetings

A firm handshake is a sufficient introduction at a formal business meeting. When addressing Chinese Singaporeans the family name is given first. For example, Mr Goh Chok Tong would be addressed as Mr Goh.

Malay names are made up of the father's name and the given name. For example, Najib bin Razak (where bin denotes son of) or Aisyah binte Musa (where binte denotes daughter of). When addressing Malay Singaporeans the first of these two names is used. Singaporean Indians use a variety of conventions so it is advisable to use the family name preceded by Mr or Ms.

Dining

A business lunch can help cement working relationships and build personal connections and is the preferred meal for business discussions. With all meals, the inviting party will usually order the food and pick up the bill. Recipients can reciprocate next time.

When dining with Malay associates, avoid conducting business lunches on Fridays or during Ramadan, and choose a restaurant that serves halal food. Do not serve alcohol or pork. Also, most Indians do not eat beef.

For more information, access the full Singapore Country Starter Pack

4.2 Building relationships with Singaporeans

Investing in and building relationships with business associates is crucial to success. A key variance to most Asian countries is that Singaporeans tend to get down to business fairly quickly and will make decisions in similar vein.

Singaporeans' main concern when building a relationship with an Australian SME will be focused on whether the product or service can make money or be commercialised in some form and possibly exported to other markets further down the line. Singaporeans react well to new and innovative products or services. Australian businesses offering technology or expertise may fare better when seeking Singapore partners.

Business partners

It is important to build relationships of trust with partners and maintain regular contact, including visiting Singapore. Ensuring the most senior executive of the Australian company is available to the Singapore partner avoids the risk of insult. If this is not possible, giving the individual with the most knowledge on the relevant issues a high-status title can avoid embarrassment.

Singaporean entrepreneurs and business owners are confident and business-savvy. They are successful in their own right and are always on the lookout for new business partners. For Australian businesses, this can often mean competing with other global businesses similar to your own. The rewards are potentially immense, however, as Singaporeans are well connected and driven by the potential of turning business opportunities into commercial results.

Australian businesses should also be aware of key government bodies that may need to be consulted, including:

Ministry of Trade and Industry (MTI): Oversees Singapore's economic growth and jobs creation. Departmental website provides key macro-economic data.

Accounting and Corporate Regulatory Authority (ACRA): The national regulator of business entities and public accountants: this is the agency you will need to go through to register your business.

Singapore Economic Development Board (EDB): Promotes investment in Singapore, offering information and services for investors, as well as outlining incentives for foreign businesses.

Minister of Manpower (MoM): Regulates visas for foreign workers. Its website has useful employment statistics.

International Enterprise Singapore (IESingapore): Drives Singapore's export economy, spearheading the overseas growth of Singapore-based companies and promoting international trade.

SPRING Singapore: Responsible for helping Singapore enterprises grow. Helps enterprises in financing, capability and management development, technology and innovation, and access to markets.

EnterpriseOne Singapore: Provides a network for your business to start, grow and become sustainable in Singapore. Its website contains more than 20 sections covering topics such as venturing abroad, hiring people, government tenders, loans, taxes and regulations.

Ministry of Finance (MoF): The government department responsible for administering and regulating financial institutions and structures of the economy of Singapore

For more information, access the full Singapore Country Starter Pack

4.3 Meetings and negotiations

Status and hierarchy are important in Singapore business culture, where companies have a top-down structure. Decisions are nearly always taken by senior management, and subordinates avoid directly questioning or criticising their superiors.

In meetings, introductions are important, during which you should outline your team's positions and titles. When entering negotiations, it is better to work with a team rather than to rely on a single individual. This signals the importance of the occasion, facilitates stronger relationship building and may speed up the process.

Singaporeans are long-term thinkers and will focus their negotiations on their ability to make long-term gains from your product or service. They are comfortable negotiators, particularly in price and terms and conditions of any deal. They will usually take the first price offered as a starting point. In return, they expect a hard negotiation and will respect this approach as long as it does not lead to conflict.

For more information, access the full Singapore Country Starter Pack

4.4 Dispute resolution

Singapore has an extremely low crime rate reinforced by a strong rule of law when it comes to conflicts in business. Protections for intellectual property in Singapore are among the strongest in the world and world-class mediation and arbitration centres exist within the Singapore Mediation Centre and the Singapore International Arbitration Centre. Australian businesses can rest assured that should they find themselves in a dispute resolution case, the procedures will be fair and transparent, and any remedies enforced.

For more information, access the full Singapore Country Starter Pack

5. Business practicalities in Singapore

• 5.1 Laws and regulations
• 5.2 Import duties, tariffs and regulations
• 5.3 Taxation
• 5.4 Audit and accountancy
• 5.5 Employing workers
• 5.6 Banking in Singapore
• 5.7 Repatriating profits and getting paid

5.1 Laws and regulations

Investment rules

Singapore's legal framework and economic policies favour foreign investors. Foreign investors are subject to the same laws (for example, competition law, tax law and so forth) meaning investors do not need to enter into joint ventures or relinquish management control to Singapore interests. The government generally screens investment proposals only as a means of determining eligibility for various incentive regimes. Also, Singapore does not impose restrictions on reinvestment or repatriation of earnings or capital. The strong and efficient legal system protects contracts, with rulings enforced appropriately.

Policies for investment promotion

The Singapore Economic Development Board (EDB) is the country's principal investment promotion agency. It focuses on winning major investments in high-value-added manufacturing and service activities.

Under The Global Investor Program (GIP) a potential investor can apply for permanent residency in Singapore, provided the investment is worth a minimum of SGD 2.5 million in a new business entity or expansion of an existing business operation, or at least SGD 2.5 million in a GIP-approved fund. Eligibility requirements apply.

Land and property rights

The Singapore Government places no restrictions on foreigners purchasing industrial or commercial properties, but government approval must be gained if a foreigner wishes to buy residential property. The Ministry of Law ( http://www.mlaw.gov.sg) formulates and reviews policies with respect to owning and leasing land.

Intellectual property

In Singapore, intellectual property law protects trademarks, patents, registered designs, copyright, layout-designs of integrated circuits, geographical indications, trade secrets and confidential information, as well as plant variety. The legal framework is considered one of the best in Southeast Asia. Singapore operates under a 'first-to-file' system, meaning the first person to file an IP right in the jurisdiction will own that right once the application is approved.

Registering IP rights ahead of entering the Singapore market is essential. Having not done so, an Australian business would be unlikely to be able to enforce its IP rights later. The Intellectual Property Office of Singapore website is http://www.ipos.gov.sg.

For more information, access the full Singapore Country Starter Pack

5.2 Import duties, tariffs and regulations

For Australians exporting to Singapore, tariffs and duties are calculated on the total shipping value, which includes the cost of the goods, freight and insurance. The Port of Singapore includes a duty-free zone where goods in transit may be stored, resorted or repacked without incurring duty.

Singapore does not impose import quota restrictions with most goods imported under open general licence. Customs and excise duties are imposed on intoxicating liquors, tobacco products, motor vehicles and petroleum products, and certain goods or consumer manufactures may be subject to approval or licensing. Others are prohibited. A list of controlled imports and exports is available on the Singapore Customs website: www.customs.gov.sg.

For all goods imported into Singapore, it is a requirement to:

• Obtain an IN Permit through the TradeNet platform before goods arrive in Singapore
• Pay the duty and/or Goods and Services Tax (GST) due at the prevailing rate at the time of importation.

An overview of SAFTA

SAFTA, which came into force in 2003, gives Australia outcomes that go deeper and further than the World Trade Organisation in relation to trade in services and intellectual property, as well as investment and competition policy.

SAFTA offers greater opportunities in goods and services to a wide range of Australian exporters, further strengthens trade and investment links, eliminates Singapore's tariffs and provides cheaper inputs for Australian businesses on a range of products.

The agreement also improves market access for Australian exporters of services, particularly those pertaining to education, the environment, telecommunications and the professions. It also provides a more open and predictable business environment, including competition policy, government procurement, intellectual property, e-commerce, customs procedures and business travel.

For more information, access the full Singapore Country Starter Pack

5.3 Taxation

Singapore's regulatory authorities enforce a comprehensive tax regime on businesses and individuals, including income taxes (corporate and personal) and turnover and indirect taxes (GST and specific business tax), as well as property tax and taxes such as stamp duty, excise tax and customs duties.

The print and online versions of the Singapore Country Starter Pack provide an overview of the primary taxes Australian enterprises need to consider when establishing a business in Singapore, but they should seek professional advice on their business and its specific situation.

Tax credits and incentives

There are various tax incentives available to taxpayers involved in specified activities or industries identified as being beneficial to Singapore's economic development.

Tax incentive applications are typically subject to an authorisation process during which the administering agency evaluates the applicant's business plans in detail. Successful applicants must satisfy rigorous requirements and are expected to make significant economic commitments in Singapore.

Compliance

The tax year is the calendar year, although a company is allowed to file its tax return based on the results of its financial year. Companies must submit an estimated chargeable income to the Inland Revenue Authority of Singapore within three months of their financial year end. Corporate tax returns are required to be filed by November 30 of the assessment year for income earned in the preceding accounting year. Individual tax returns must be submitted by 15 April.

For more information, access the full Singapore Country Starter Pack

5.4 Audit and accountancy

Businesses, including private and public companies and branches of foreign companies, are required to be audited by independent certified public accountants, unless they are sole proprietorships, partnerships or representative offices. Dormant private companies and exempt private companies with annual revenue of SGD 5 million or less are exempt from audits.

The Accounting Standards Council prescribes accounting standards in Singapore. It also evaluates and recommends corporate governance and disclosure practices. Most businesses apply the Singapore Financial Reporting Standards, which are closely modelled on International Financial Reporting Standards.

Accounting period: Corporate entities are able to choose a 12-month period for their accounting year that best suits their operations (that is, the equivalent of the Australian July 1 to June 30 financial year, or the calendar year).

Accounting records: Businesses must maintain proper records and accounts, which must be retained for five years from the relevant financial year.

Financial statements: Under the Companies Act, directors are responsible for presenting and making available at a company's annual general meeting, financial statements that comply with Accounting Standards 1 issued by the Accounting Standards Council, and that give a true and fair picture of its profit and loss situation, and the state of affairs more generally of the company.

For more information, access the full Singapore Country Starter Pack

5.5 Employing workers

Labour market

Singapore has a talented workforce that is ranked highly for productivity, work attitude and technical skills. Workers speak English proficiently and are constantly looking to upgrade their skills and knowledge.

Unemployment is low, measuring around two per cent since 2011. The services sector overwhelmingly makes up the majority of the workforce at 2.6 million, followed by manufacturing (498,100) and construction (488,700). As of November 2015, the Ministry of Manpower (MoM) reports that 66 per cent of the workforce is local, with the remainder foreign workers.

One of the biggest problems facing Singapore is an ageing population along with the challenge of maintaining a highly skilled workforce able to meet the demands of an innovative and increasingly creative economy. Educating and developing a workforce to be competent in emerging jobs such as computer science and additive manufacturing (3D printing) will continue to be of critical importance.

Human resources and employment law

The Singapore Employment Act is the main law covering all employees who are under a contract of service. It governs the rights of employees in areas including rest days and hours of work, leave and holidays, salaries, retrenchment and retirement.

Working hours: These can vary, but should not be more than 44 hours per week or nine hours per day if working for five days or less in work that is potentially harmful to the health of the employee.

Minimum wage: Singapore does not operate a minimum wage structure but its National Wage Council provides recommendations and guidelines on pay. Guidelines are available on the MoM website.

Leave: If your employee is covered under the Employment Act, they are entitled to leave after three months of service. Annual leave is incremental according to the number of years' service. Singapore has 11 public holidays a year.

Sick leave: Employees are paid outpatient and hospitalisation sick leave if they have worked for at least three months with an employer.

Overtime: Companies must pay employees at least 1.5 times the hourly basic rate of pay for overtime. An employee can only work up to 72 hours of overtime in a month.

Work injury compensation: The Work Injury Compensation Act allows employees to claim for injuries and occupational diseases that happen at work or as a result of work. The Act lets employees claim for medical leave wages, medical expenses and lump sum compensation for permanent incapacity or death.

Industrial relations: Singapore takes industrial relations very seriously, abiding by the Industrial Relations Act, which regulates trade union functions in the relationship between employers and employees. Industrial relations are business-friendly – the World Economic Forum's Global Competitive Report ranked Singapore second for labour market efficiency, and fourth for hiring and firing practices.

Termination of employment and severance pay: The Employment Act contains minimum notices that must be given to employees prior to the termination of their contract of service. Severance pay should be agreed upon by the employer and employee and is not fixed by law. Employees who have served the company for at least two years may be eligible for redundancy compensation, but this is not enforced by law.

Work permits

If you are hiring a non-resident worker in Singapore, you must ensure they have a valid work visa (there are several types of visas available to non-residents). The MoM website has clear explanations on the available permits, along with a self-assessment tool (more geared towards prospective workers).

Managing a Singaporean team

Because Singapore has a more Westernised style of working culture than other Asian countries, your business may find it easier assimilating employees into your preferred working practices.

Managing Singapore workers requires perception and sensitivity, as well as flexibility. Managers need to maintain their role as 'boss', commanding respect from the team, as this is expected in Singapore. Communication is vital when a manager needs to work collectively with their team, rather than in a top-down fashion. This requirement should be outlined very clearly so that the team feels reassured about operating openly in a non-threatening environment. It's also worth reinforcing the importance of agreed deadlines.

For more information, access the full Singapore Country Starter Pack

5.6 Banking in Singapore

Banking environment

Singapore's banking system is among the strongest in the world, governed by strict banking secrecy laws.

The Ministry of Finance and the Monetary Authority of Singapore (MAS) are responsible for regulating Singapore's financial and banking services. The former maintains international standards and best practices in areas such as company law, accounting standards and corporate governance principles. The MAS is Singapore's central bank and is responsible for managing Singapore's exchange rate, foreign reserves and banking sector liquidity. The authority also overseas all financial institutions – banks, insurers, capital market intermediaries, financial advisers and the stock exchange.

About 700 financial institutions are represented in Singapore, offering a vast range of financial products and services. Most foreign banks in Singapore are licensed as wholesale or offshore banks. They concentrate on the areas of corporate and private banking, but are not engaged in retail banking.

Australian investment in the banking, finance and insurance sectors is an important growth area. Australia's leading banks are prominent in Singapore's financial services sector and are easily accessible.

For more information, access the full Singapore Country Starter Pack

5.7 Repatriating profits and getting paid

Repatriating profits: Singapore does not impose any restriction on the import of capital nor on the repatriation of profits.

Dividend payments: In 2003, Singapore moved to a one-tier taxation system where tax collected at the corporate level is final and all dividend payments made by Singapore resident companies are exempt from tax in the hands of the shareholders.

Other payments: There are various alternatives whereby the profits of the Singapore company may be repatriated to the home country by means other than dividends. These include the payment of royalties, interest, technical or management fees.

Getting paid: Getting paid is a critical part of any transaction and can differ when conducting business overseas. You should contact your bank for comprehensive advice about payment options and the relative advantages of each option for your particular situation.

For more information, access the full Singapore Country Starter Pack

6. Visiting Singapore

• 6.1 Visas
• 6.2 Currency
• 6.3 Air travel and airports
• 6.4 Ground transport
• 6.5 Hotels
• 6.6 Health and welfare
• 6.7 Useful phrases and public holidays

6.1 Visas

Australian passport holders do not require a visa in advance to enter Singapore if visiting, and will normally be granted a pass at immigration. Upon showing proof of their return or onward travel, they will be permitted to stay in Singapore for up to 30 days (up to 90 days for APEC travel card holders). All travellers, including those in transit, must have six months' validity on their passports.

Australian residents do not need to notify MoM, and do not require a work visa, to attend and participate in the following activities for the duration of a visit to Singapore:

• Company meetings, corporate retreats, interviews or meetings with business partners
• Study tours or visits, training courses, workshops, seminars and conferences
• Trade exhibitions.

For more information, access the full Singapore Country Starter Pack

6.2 Currency

ATMs throughout Singapore accept most major international credit and cash cards. All major credit cards (Visa, MasterCard and American Express) are accepted at most retailers and restaurants.

GST refund: Tourists in Singapore may claim a refund of the 7 per cent GST paid on any purchases more than SGD 100 at participating stores. Look for a 'Tax Free' shopping logo or sign on display or check with the retailer.

For more information, access the full Singapore Country Starter Pack

6.3 Air travel and airports

Singapore's Changi Airport, currently the world's most awarded airport with more than 500 accolades, is also the 16th busiest, with 100 airlines flying to around 300 cities. It is about a half-hour trip from the CBD, which can be reached by train, shuttle bus, public bus or taxi.

For more information, access the full Singapore Country Starter Pack

6.4 Ground transport

Taxis

Taxis in Singapore are fairly easy to flag at main roads or designated taxi stands and are relatively cheap. Most taxi drivers speak adequate English. There is no such thing as negotiated fares in Singapore.

Driving in Singapore

Driving around the city-state is relatively easy. If you wish to hire a car, all major international rental companies are based at Changi Airport.

Public transport

The Mass Rapid Transit (MRT) is the best means of getting around Singapore. The maps are easy to read and all notices and signage in MRT stations are in English.

Train fares are very cheap, with standard tickets available that can be used up to six times within 30 days of purchase. Most residents hold the contactless travel card EZ-Link, which can be topped up at MRT stations and many convenience stores. Alternatively, the Singapore Tourist Pass offers unlimited travel on the MRT system, as well as on bus networks.

For more information, access the full Singapore Country Starter Pack

6.5 Hotels

Staying in Singapore

The Singapore hotel industry is one of the largest in Asia. Hotels range from uber-luxurious to ultra-modern, and hotels that cover your basic needs. There are many distinct areas in which to stay, all within walking distance of MRT stations or taxi ranks. There are limited accommodation options near business parks such as Mapletree or One-north, so allow plenty of time to get to these if staying in the CBD.

Electricity

Singapore's power supply is 230 volts (50Hz) and uses type C, G and M plugs. Travellers will need an adapter for Australian appliances.

For more information, access the full Singapore Country Starter Pack

6.6 Health and welfare

Before travelling

It is prudent for Australians to take out comprehensive travel insurance before heading to Singapore, which would cover any overseas medical expenses.

Some Australian prescription and over-the-counter medications may be controlled substances under Singapore law. The Singapore Health Sciences Authority website contains a list of controlled substances and information about applying for prior approval (go to http://www.hsa.gov.sg and search under Health Products Regulation).

Food and water

Tap water is safe to drink in Singapore and there are no specific foods to avoid.

Health risks

Outbreaks of mosquito-borne illnesses, such as dengue fever and chikungunya fever, can occur particularly during the wetter months (from November to March and July to September), but the risk is extremely low.

Smoke haze occurs across Singapore usually from June to October as a result of forest fires in Indonesia and elsewhere in the region. The Singapore Government issues health warnings, and Singapore's National Environment Agency website provides updates and advice.

Hospitals and medical services

The healthcare system in Singapore is generally regarded as one of the best in the world. But the cost of medical care for tourists can be very high. Travel insurance is therefore advisable.

Pharmacists should be able to provide advice about minor ailments.

Personal safety and crime

Be aware that:

• Penalties for drug offences in Singapore are severe and include the death penalty.
• Singapore laws on 'outrage of modesty' (such as men behaving inappropriately towards women, or using inappropriate language and inappropriate touching) are strict. Penalties include imprisonment, fines and/or corporal punishment (caning). Homosexual acts between men remains illegal in Singapore.
• Singapore has strict laws and penalties for a variety of actions that would be considered only minor offences or not illegal in Australia, including smoking in public places or indoor restaurants, spitting, chewing or importing gum (including chewing tobacco), littering and jaywalking.

For more information, access the full Singapore Country Starter Pack

6.7 Useful phrases and public holidays

Singlish, a contraction of Singaporean English, is used by virtually the entire population. It is a fusion of English and other dialects spoken by Singapore's earliest immigrants, including Hokkien, Cantonese, Malay and Tamil. Do not be too worried about mastering it yourself; mostSingaporeans will not use Singlish when talking with foreigners.

For more information, access the full Singapore Country Starter Pack

7. Engage with us

Asialink Business

Asialink Business provides high-calibre opportunities for Australian businesses to build the Asia capability of their executives and team members. Our business-focused cultural competency programs, professional development opportunities and practical research products allow businesses to develop essential knowledge of contemporary Asian markets, business environments, cultures and political landscapes.

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• Helpful Links
• Contact us

Resources and contacts

Austrade Singapore

25 Napier Road, Singapore, 258507
Tel: +656418 8400
Web: www.austrade.gov.au/Local-Sites/Singapore

High Commission of the Republic of Singapore, Australia

http://www.mfa.gov.sg/canberra

Australian High Commission, Singapore

singapore.embassy.gov.au

Accounting and Corporate Regulatory Authority

http://www.acra.gov.sg

Agri-Food & Veterinary Authority of Singapore

http://www.ava.gov.sg

Australian-Singaporean Chamber of Commerce (AustCham Singapore)

http://www.austcham.org.sg

Singapore Customs

http://www.customs.gov.sg

Monetary Authority of Singapore

http://www.mas.gov.sg

Ministry of Manpower, Singapore

http://www.mom.gov.sg

Ministry of Trade and Industry Singapore

https://www.mti.gov.sg/

Singapore Economic Development Board

http://www.edb.gov.sg

Useful websites

Contact Singapore

http://www.contactsingapore.sg/

Provides information on choosing Singapore as destination for your business.

Export Council of Australia

http://www.export.org.au/eca/homepage

The Export Council of Australia is the peak industry body for the Australian export community.

Export Finance and Insurance Corporation

http://www.efic.gov.au/

Efic provides information on overseas markets and support to Australian businesses looking to expand overseas.

Infocomm Development Authority of Singapore

https://www.ida.gov.sg

Agency responsible for leading Singapore's communications infrastructure. IDA will be administratively restructured from April 2016 along with the Media Development Authority of Singapore (MDA) to form the Info-communications Media Development Authority of Singapore (IMDA) and the Government Technology Organisation (GTO) in the second half of 2016.

Intellectual Property Office of Singapore

http://www.ipos.gov.sg

Singaporean Ministry of Foreign Affairs

http://www.mfa.gov.sg/

Your Singapore

http://www.yoursingapore.com

The official tourism website for Singapore.

Contact us

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