Paul Hype Page (Singapore) - Company Registration Logo

What are some of the Labour Issues in Singapore?

3 min read|Last Updated: November 21, 2022|

Labour issues are common, even for an economic powerhouse and corporate hub like Singapore, who is a triple-A rated economy and a good place to register and start a business. Some of the labour issues that Singapore faces are listed below.

Is There Labour Shortage in Singapore?

One of the issues is there is a shortage of labour in Singapore. There are 3 key reasons why this is so, namely:

  • Rapidly aging population

    The average age of the Singapore population has been increasing. This means that there will be fewer youths who will enter the workforce.

  • Tighter regulations of foreign workers

    Stricter measures were implemented to regulate the entry of foreign workers. As such, it became more difficult for foreign workers to receive an S Pass or Work Permit. The government also introduced a law that requires all businesses in Singapore to prioritise locals when hiring.

  • Mismatch of skills

    The skills most sought by the job market are mostly not the most common, leading to a gap between employers and prospective employees. Upskilling programmes have been initiated to bridge this gap.

To tackle the labour shortage in Singapore, the government has steadily continued to attract top talents globally. One of the ways they are doing so is through the latest introduction of the Singapore Overseas Networks & Expertise (ONE) Pass.

Instead of opening the flood gates to foreign professionals, they are carefully selecting the right candidates to supplement the local work force.

Gender Inequality

As like most countries, gender inequality remains a key issue in Singapore. The average woman who works in Singapore full-time earns just 87.5% of what her male counterparts earns. This is more common in the following industries:

  • Manufacturing
  • Accommodation
  • Healthcare
  • Social services
  • Information & Communications
  • Food services

If you’re interested in starting a business in these industries, you should know that doing so requires a business license. Reach out to us to get your business license in Singapore, along with other services like corporate secretary, taxation, and more!

Wan Yi

Such gender inequality encourages local women to go abroad to work and achieve their career goals.

Lack of Social Support for Foreigners

Many foreigners working in Singapore do not have high levels of social support and they are unsure of their rights. Some of the issues that they may face are:

  • Unjust treatment from employees
  • Unsafe working conditions

However, the government and authorities are doing their best to resolve these situations. The lack of social support for foreigners are usually for those who are on Work Permits such as construction workers. These group of individuals are less likely to speak out to shed light on their problems.

For foreigners who are on S Pass or Employment Pass, it is important that you have a binding contract with your employer to ensure that you are well protected. The Singapore Employment Act only covers workers who are earning a salary of less than S$2,600.

This means that the Act does not cover and protect you if you are earning above the benchmark. That’s why understanding your rights and employee benefits stated in your employment contract is key.

Singapore: Popular Working Destination

Despite these issues, Singapore is still a great place to work as it boasts a thriving economy.

If you are a foreigner who would like to work in Singapore, we can assist you in getting your employment pass and necessary documents! Chat with us to find out more.

START WORKING AND LIVING IN SINGAPORE TODAY

Come to our office or get in touch virtually for a consultation on your company incorporation with employment pass, and other corporate services.

FAQs

Can I run an online business without incorporating in Singapore?2020-11-20T11:59:02+08:00

Nope, you must register a company to run your online business. 

As a foreigner, can I be the shareholder of the company?2020-11-20T11:58:47+08:00

Yes, you can. 

Is it mandatory to have a Singaporean/ PR to incorporate a company in Singapore?2020-11-20T11:58:34+08:00

Yes, to incorporate a company in Singapore, you need at least one local resident. As a foreigner, you can appoint a nominee director or get an employment pass. 

What are the popular businesses in Singapore?2020-11-20T11:54:51+08:00

Some of the popular businesses in Singapore are laundry, online marketing, e-commerce, financial services, cleaning service, content writing and consulting. 

Share This Story, Choose Your Platform!

Related Business Articles

What are the Differences Between CorpPass & SingPass in Singapore?

What are the Differences Between CorpPass & SingPass in Singapore?

What Are The Employee Benefits In Singapore

What Are The Employee Benefits In Singapore

Singapore Culture & People of Singapore

Singapore Culture & People of Singapore

Undecided or got questions

Got other questions?

Drop us a message on WhatsApp or connect with us through our contact form.

CONTACT US >

Join the discussions

Start your Incorporation

Search your company

Business Compliance

Event

Resources

Company

Copyright © 2024 Business registration in Singapore | PaulHypePage.Com

A company is deemed exempt from audits in Singapore, which means these companies will not need to appoint an auditor to have their accounts audited. However, they need to qualify to be a ‘small’ company based on at least 2 of these 3 criteria:

  1. Revenue not exceeding SGD 10 million for the financial year.
  2. Total assets not exceeding SGD 10 million at the end of the financial year.
  3. Number of employees not exceeding 50.

Despite such small companies are exempt from auditing, they still need to prepare accurate financial statements that comply with the standards in Singapore.

Auditing Practices in Singapore

  1. Enhances Credibility And Trust
    By providing independent assurance of the accuracy and reliability of a company’s financial statements, auditing helps to build credibility and trust with investors, creditors, and other stakeholders. This can lead to increased confidence in the company’s financial position and ultimately support its long-term success.
  2. Improves Financial Management
    Auditing provides valuable insights into a company’s financial health, which can help your managers make better decisions and improve financial management practices. This in turn leads to improved efficiency, better use of resources, and ultimately better financial results.
  3. Ensures Compliance With Regulations
    Auditing helps to ensure that a company complies with regulatory requirements and industry standards. By ensuring compliance with regulations, your company will be able to avoid legal and financial penalties and operate in a responsible and ethical manner.
  4. Helps Detect And Prevent Fraud
    Auditors are trained to identify and investigate fraud and other irregularities, which will definitely help you avoid any fraudulent activities in a company. This is especially important for maintaining the integrity of financial reporting and ensuring that stakeholders have accurate information to make informed decisio

ACRA
ACRA is Singapore’s business regulator. It ensures a trusted business environment by overseeing companies, accountants, and corporate service providers. Its functions include registration, financial reporting, auditing, governance, and disclosure. ACRA’s online platform, BizFile+, simplifies business processes.

IRAS
IRAS is Singapore’s tax authority. It assesses, collects, and refunds taxes. IRAS also educates taxpayers and investigates non-compliance. The MyIRAS portal offers online tax services.

Auditing in Singapore
In essence, ACRA sets the rules, and IRAS enforces them. Both agencies work together to maintain the integrity of financial reporting and ensure that companies are operating within the law. This is essential for investors, lenders, and other stakeholders who rely on accurate financial information.

certified audit partner logo

Paul Hype Page provides you with strategic business expansion and business compliance services for over 2 decades, servicing the best of the South East Asia region. We make your entrepreneurial experience seamless for both locals and foreign expats.

We can issue an IRAS-approved audit report that meets both the Singapore government’s requirements and your company’s needs. The audit function of your company is in good hands with our professional Singapore-certified auditors.

Our audit services in Singapore consist of a vast variety to cater to the specific needs of your organization.

  1. Annual Financial Audit
  2. Special Purpose Audit
  3. Certification for Subsidy Claim
  4. Audit
  5. Fixed Assets Certification
  6. Claim Certification
  7. Shares Certification
  8. Personal Income Certification

If you are a foreigner, you will need a nominee director (local director) to incorporate your company in Singapore.

What is a Nominee Director?
Nominee director is an individual who is appointed to act as a director of the company on behalf of another individual or entity. For all foreigners establishing businesses in Singapore, having a nominee director is essential due to regulations from the Accounting & Corporate Regulatory Authority (ACRA).

Here are suitable nominee director services for EP holders in Singapore, allowing the company to transfer ownership to you once your Employment Pass (EP) is approved:

  • Short Term Nominee Director (STND) : 2 months and 6 months

If you are a foreigner, you cannot be the director of the company unless you have an Employment Pass also known as an EP. This renewable work visa permits you to live and work in Singapore, whether you’re an employee, business owner, or anything in between.

It’s the most popular choice for foreigners looking to start a business or relocate to Singapore.

First, You will have to incorporate your company under the name of a local Singapore director (Nominee Director). Then, you will have to apply EPass under your company so that we can transfer the ownership to you under your Employment Pass (EP).

The estimated timeline for the Singapore EP application is between 2-4 months, depending on the case. In some instances, it could drag up to 6 months if multiple rounds of appeals are requested.

Singapore Employment Pass, often referred to as the ‘EP,’ a work visa is issued to foreign professionals, managers, executives, and experts relocating to work in Singapore.

You are eligible to apply for EP if you:-

  • Have Job Offer from Singapore Company in managerial, executive, and specialized job
  • Have at least a fixed minimum salary of S$5,000 per month
  • Have recognized diploma or degree from a reputable university
  • Have professional qualifications, specialist skills, and work-related experience
  • Meet the required minimum of 40 points under the new points-based COMPASS to be eligible for this pass.

Reasons to Apply for a Singapore Employment Pass

  1. Legally reside and work in Singapore.
  2. Enjoy hassle-free travel in and out of the country without needing a Singapore entry visa.
  3. Gain a pathway to potentially obtaining permanent residency in Singapore over time.
  4. Have the flexibility to run and work for your own business in Singapore.
  5. Benefit from Singapore’s low tax rates and favorable income tax system.

Are you a business owner in Singapore looking to expand your operations and reach new markets? Considering entry into a new market or expanding an existing one overseas? The MRA grant offers the financial boost you need to make it happen.

The purpose of the MRA grant is to support Singapore owned businesses for business development, promotion, and set-up costs when you set up a business in oversea.

At least 30% of the company’s equity must be held directly or indirectly by Singapore Permanent Residents (PRs) or citizens, determined by ultimate individual ownership.

The grant covers up to 50% of eligible costs for Local SMEs, with specific caps for different activities and limited to a maximum of S$100,000 per new market and may include:

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

Currently, from April 1, 2023 to March 31, 2025, the grant covers up to 50% of eligible costs, capped at S$100,000.

If you are planning to set up business in Singapore, opening a corporate bank account is a mandatory when you first incorporate a company. It also allow you to keep your business transactions separate from your personal transactions and also helps you to track your business cash flows/income and expenses.

We focus is to prove that your company has a tax substance and select an account that best fits your business needs. Most importantly, you DO NOT need to be physically here! We work closely with our trusted bankers to give you a higher success rate in opening a corporate bank account.

If you are a foreigner, you will need a nominee director (local director) to incorporate your company in Singapore.

What is a Nominee Director?
Nominee director is an individual who is appointed to act as a director of the company on behalf of another individual or entity. For all foreigners establishing businesses in Singapore, having a nominee director is essential due to regulations from the Accounting & Corporate Regulatory Authority (ACRA).

There are 2 types of Nominee Director services in Singapore.

They are:

  • Long term Nominee Director (LTND) : 12 months
  • Short Term Nominee Director (STND) : 2 months and 6 months

If you are a foreigner, you cannot be the director of the company unless you have an Employment Pass.

First, You will have to incorporate your company under the name of a local Singapore director (Nominee Director). Then, you will have to apply EPass under your company so that we can transfer the ownership to you under your Employment Pass (EP).

What is Singapore Employment Pass?
Singapore Employment Pass, often referred to as the ‘EP,’ a work visa is issued to foreign professionals, managers, executives, and experts relocating to work in Singapore.

The estimated timeline for the Singapore EP application is between 2-4 months, depending on the case. In some instances, it could drag up to 6 months if multiple rounds of appeals are requested.

Check Your Company Name through ACRA using our free tool!

The requirements for registering a company in Singapore are simple and straightforward. They are:

At least one local resident director

Both Singapore residents and foreigners can serve as directors of a Singapore company, provided there is at least one director who is a Singapore resident.

At least one shareholder

To register a company in Singapore, you need at least one shareholder who can be a person or another company. You can have up to 50 shareholders, and all of them can be foreigners.

Local company secretary

Every Singapore company must have a company secretary who lives in Singapore and is responsible for ensuring the company meets its regulatory requirements and submits necessary filings.

Minimum of $1 Paid up Capital

You can establish your Singapore company with just $1 in paid up capital and share capital. If needed, you can add more funds later and inform the company registrar.

Registered Address in Singapore

Your company needs a registered address in Singapore where all the official documents will be sent to ; a PO box isn’t acceptable.
联系方式

30 Petain Road Singapore 208099

Contact Info

30 Petain Road Singapore 208099

Press “ESC” key to close

Go to Top