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Viewpoint from RT
Singapore Budget 2021 – Key takeaways for Businesses
Deputy Prime Minister and Minister for Finance, Mr Heng Swee Keat, recently delivered the Budget
2021 speech on Tuesday, 16 February. The COVID-19 pandemic has effected the worst recession since Singapore’s independence with an overall budget deficit of $64.9 billion for Financial Year 2020.
As the battle against the pandemic continues, the government has set aside an $11 billion COVID-19 Resilience Package focusing on 3 main areas:
- First, to address immediate needs to safeguard public health and re-open safely;
- Second, to support workers and businesses where needed; and
- Third, to target support for sectors that are still under stress
What does this entail for your business? Find out in the summary presented below.
Tax Measures
Supporting Businesses
Supporting Workers
*Adapted from Ministry of Finance (MOF), Singapore. To read the full Budget, go to https//www.mof.gov.sg/singaporebudget.
Pre-IPO (Initial public offering) advisory in Singapore
Going public represents a significant milestone for any private company and with it brings numerous benefits; from an increased brand recognition and prestige to an improved access to capital markets and more liquidity. While the idea of getting listed may be exciting and a dream come true for most enterprises, the process of attaining it is no easy feat and involves several requirements and changes in a company’s operations.
Things to note
To begin with, there are 2 platforms in which companies can get listed on – the Mainboard or the Catalist of the Singapore Exchange (SGX).
The Mainboard caters to the needs of established enterprises. Mainboard-listed companies enjoy the prestige of an established marketplace and access to the widest range of institutional and retail investors.
The Catalist, on the other hand, caters to the needs of fast-growing enterprises. Companies seeking a primary listing on the Catalist must be brought to list by authorised Sponsors via an initial public offering (IPO) and reverse take-over.
The rules and requirements are different for each listing. Companies would have to carefully assess their business standing and determine their level of readiness in choosing between both listings.
The following are the different listing products available for application:
- Real Estate Investment Trusts (REITs)
- Business Trusts
- Global Depository Receipts
- Exchange Traded Funds (ETFs)
- Exchange Traded Notes (ETNs)
- Structured Warrants
- Daily Leverage Certificates (DLCs)
Before going public
Assess your company’s financial health and readiness for an IPO.
There is a substantial amount of cost involved in getting listed on the SGX. It is important for companies to ensure financial security before taking the plunge to go public to avoid affecting its business operations, getting delisted, or falling into debt. In some cases, going public may cause more harm than good for businesses. Hence, it is crucial for companies to ensure that the benefits outweighs the cost and be prepared for different circumstances that my arise in the future.
To be eligible to join the mainboard of the SGX, companies must fulfil one of the following quantitative requirements:
- Minimum consolidated pre-tax profit of at least S$30 million for the latest financial year with operating track record of at least 3 years;
- Profitable in the latest financial year, and has a market capitalisation of not less than S$150 million based on the issue price and post-invitation issued share capital with operating track record of at least 3 years; OR
- Operating revenue in the latest completed financial year and a market capitalisation of not less than S$300 million based on the issue price and post-invitation issued share capital. Real Estate Investment Trusts and Business Trusts who have met the S$300 million market capitalisation test but do not have historical financial information may apply under this rule if they are able to demonstrate that they will generate operating revenue immediately upon listing.
To be eligible to join the Catalist on the SGX, there is no minimum quantitative criteria required by SGX – Sponsors will use their own house deal selection criteria.
On top of that, there are also several listing fees payable which includes:
- Initial listing fees
- Annual listing fees
- Additional listing fees
- Mainboard processing fees (For Mainboard listing)
- Sponsors fees (For Catalist listing)
Gather a team of professionals skilled in IPOs
Going public imposes different management and operational requisites. Companies can expect a loss of control over operations and several added obligations from regulatory compliance to a complete reassessment of internal finance and business policies.
Thus, it is crucial for companies to employ a robust team that is well versed with the IPO process to assist them in navigating the complexities involved.
The following personnel are usually required in a sustainable IPO team:
- Underwriters
- IPO lawyers
- Reporting accountants
- Company’s management team
- Issuing managers (For Mainboard listings)
- Sponsors (For Catalist listings)
Conduct an audit on your financial reporting system
Another important aspect in preparation to go public is to ensure that your company’s financial reporting system is well organized and secured so as to guarantee accuracy and timeliness in delivering public filings and financial statements to future investors. Its policies should also be compliant with governmental regulations and be constantly reviewed and updated accordingly.
Therefore, before proceeding with the application, it is advisable for companies to first analyze their past financials to ensure that there are no mistakes and that everything is intact and ready to take on the new responsibilities involved.
The pointers above are non exhaustive and serves only as a general guide and insight to the IPO process in Singapore. If your company is interested in going public and would like to know more about the procedures involved, please contact us at info@rtasean.com. Our team is skilled in providing Pre-IPO advisory and has successfully assisted several companies in getting listed on the SGX. We can help you evaluate and meet the applicable standards and performance expected of a listed company.
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Reference
Disclaimer
While we do our best to ensure that all information presented is considered to be true and complete at the date of publication, its accuracy and reliability is subjected to changes. RT will not be held liable for the use of these information.
Mr Ravi Arumugam to continue post on ISCA CARE’s Board of directors
The Institute of Singapore Chartered Accountants (ISCA) Cares has recently announced the continuance of Mr Ravi Arumugam, Chief Executive Officer (CEO) and Managing Partner of RT LLP’s post as treasurer on its board of directors. Since its inception in 2015, Mr Ravi has consistently played an active role in contributing to its cause in working towards building a compassionate and caring accountancy community for the betterment of the society.
“ISCA Cares is a charity set up in 2015 by the Institute of Singapore Chartered Accountants (ISCA) as part of Singapore’s Jubilee celebration of her 50th anniversary of independence. The charity represents a collective effort of the accountancy profession to give back to society which supported them in achieving success. It also signifies the efforts of the Institute, in its role as the national accountancy body, to provide a platform for the profession to support worthy and meaningful causes.”
Having over 5 years of stewardship as one of its board members, we sat down with Mr Ravi for a quick chat where he shared some of his thoughts and experiences about his journey with ISCA Cares and what he hopes for the accountancy community in the years to come.
Photo adapted from ISCA Cares news journal done by one of its bursary recipients as a token of gratitude
What does ISCA Cares do?
ISCA Cares provides bursaries for deserving young talents from our institutions who aspire to be accountants but due to various factors and personal situations may be struggling to pay fees or take care of their cost of living. It is heart wrenching to hear their stories and I am happy to be able to be involved and be part of the team that identifies these deserving individuals for bursaries.
What pulled you to become a board member on ISCA Cares?
I was invited to be a Board member by the then President of ISCA, Mr Gerard Ee and subsequently took on the post as Treasurer of the Charity. When asked at that time, I immediately accepted as an honour and privilege in doing my part in giving back to the society and accountancy community that I hold dearly.
Photo adapted from ISCA Cares news journal done by one of its bursary recipients as a token of gratitude
What has been the most rewarding part of being on ISCA Cares for you?
It has been my privilege to have been part of the first Board of Directors, excellently supported by ISCA volunteers that started ISCA Cares. The most rewarding part would have to be helping students in our institutions achieve their dreams and in that process cultivate the accountants of the future.
What is one thing you hope for in the community?
I would like to see more young people opting to be professional accountants. I would also like to see more of those who are already in the profession contribute to ISCA Cares, which is a very worthwhile cause in development of the next generation of professional accountants.
Is there anything else you’d like to share with regards to the work that ISCA Cares does?
ISCA Cares is a brilliant initiative and effort by the profession for the profession. The work it does and the good it provides will yield dividends many times more in the future. It is a good way to reach out to the best and brightest who might need a little assistance in their early years. ISCA Cares is essentially the profession investing in itself and thereby ensuring the future of the profession in Singapore. It is a good way to give back to the profession and to be proud to have contributed in helping another.
References:
https://isca.org.sg/isca-cares/about-isca-cares/board-of-directors/
Work from home (WFH) tips | COVID-19
The spread of the COVID-19 pandemic has called for lockdowns and self-isolation measures across the world leaving most non-essential businesses no choice but to close their offices and work from home (WFH).
In light of this new reality, we asked some of our colleagues what some of their personal tips and tricks are on how they are best managing working from home and threw in a few others as well!
1. Set a schedule – plan your day the night before
“I like to plan out my day out the night before I go to bed as this allows me to better prioritize and remain more focused and disciplined throughout the day. Setting a routine schedule also helps me alleviate stress by ensuring that I keep a healthy balance between work and my personal time.”
Working from home may blur the lines between work and personal hours since homes are now essentially offices. For some, the inclination to want to sleep in a little more or be distracted by other activities is higher within the comforts of our own homes. Others may find it difficult to separate the two and end up overworking and not having sufficient rest.
To avoid that from happening, try setting a routine schedule that clearly defines the time to work and rest that works best for you and commit to it. This way, you can better account for your day to day activities and make sure that you are performing efficiently work wise and taking care of your personal needs at the same time.
Some scheduling applications that may be useful are Todoist, Noteplan, and Trello.
2. Take breaks in between – set aside a 10-15 minutes breaktime
“Taking 10 minutes out of the workday to do a little stretch and fix myself a cup of coffee helps me to be more productive and inspired. It keeps me feeling more refreshed and my ideas flowing better with the small change in activity as opposed to sitting at my desk the entire day.”
It has been said that taking short breaks in between a workday would help to improve efficiency and mental well-being. Therefore, depending on your company’s policies, ensure that you do take time to have your lunch and another 10-15 minutes break later in the day. This may not only enable you to perform better but also keeps you from overexerting yourself which may be damaging to your health.
Fix yourself a drink, take a walk around the house or connect with your friends or family for a quick catch up session – whichever way works best for you!
3. Exercise – incorporate home friendly exercises into your daily routine
“Now that I am home all the time, I am moving around a lot lesser as compared to before. Hence, to make up for this, I make sure that I take the time to do some home exercises to help me keep fit and healthy. I always feel more energized and alert after a good work out session.”
Research has shown that regular physical activity is important for our mental and physical state and has also said to reap many health benefits. Without the need to commute to work or move about as much during these times, it is important that we take time to exercise to keep us moving, more motivated and better abled to take on each day.
YouTube has many home exercises suited for all types of fitness levels from beginners to intermediates. Applications such as Blogilates, 7 minute workout, and Daily yoga are some other popular platforms where you can pick up a few work-out from home exercises, to name a few.
4. Communicate – stay connected with family, friends, and colleagues
“I make sure to dedicate some time throughout my week to tune in with my family, friends, and colleagues to catch up on how we are all doing and sometimes even engage in some online games to keep things fun and interesting now that we are confined to our own homes. It definitely helps me feel more connected both work wise and on a personal level and never fails to lift my spirits up!”
With applications like Whatsapp, Zoom, and social media platforms such as Instagram and Facebook, it is now easier than ever to stay connected with people. In terms of work, having more meetings and calls with one another may help in ensuring that everyone is on the same page and working towards the same projects and goals. Communicating often also reduces doubts and confusion, thereby producing better quality work more coherently.
Personally, maintaining social interactions may help in eliminating pangs of loneliness or anxiety if you are usually more accustomed to going out and meeting people. Besides that, it also serves as a good time to check in on one another and keep each other motivated and strong during this difficult time.
Take the time to let your connections know of your availability and the platforms where they can reach you and most importantly, never be afraid to talk to someone if you need help!
5. Set up an office – create boundaries and designate an area for work only
“To keep me focused and less distracted, I have designated a conducive area to serve as my office from home. Here, I only allow myself to carry out work related activities and nothing else. This has helped me so much in getting things done as I would at the office.”
Creating a favourable environment suited to your working needs is important in maximizing your level of productivity. Find an area in your home where you are able to concentrate best at and set up an office space with all items and documents needed within reach. Adopt the same mindset as you would when going to the office when you step into this area. This not only helps to create healthy boundaries between work and your personal life, but also minimizes distractions.
LEGAL AND ACCOUNTING CONNECT 2018: A CALL TO MARKET – A ONE STOP SOLUTION WITHOUT BORDERS
The Legal and Accounting Connect 2018 was held on 29 June 2018 and was co-organised by the Association of Chartered Certified Accountants (ACCA) and the Law Society of Singapore (LSS).
In the report of the working group (under Singapore’s CFE (Committee on the Future Economy)) for the Legal and Accounting Sectors, published in 2017, several areas of growth opportunities were identified. This discovery demands that legal and accounting practices will need to work closer together than ever before to fully grasp the opportunities which lie in the region.
The report was the basis for the event which brought together thought leaders from both legal and accounting fields together for a time of knowledge sharing and networking.
Present at the event were key figures in the industry including Ms Indranee Rajah S.C. – Minister in the Prime Minister's Office and Second Minister for Law, Finance and Education, Mr Gregory Vijayendran – President, The Law Society of Singapore and Mr Chaly Mah - Chairman of Singapore Accountancy Commission.
Ravi Arumugam
CEO & Managing Partner Executive Chairman RT LLP & RT Group, RT ASEAN
"Clients today face the challenges of a tough business environment and the need to manage businesses that cross geographical borders. As a result, an integrated service that comprises cross-border networks of multidisciplinary service providers would better meet the needs of today’s clients"
RT ASEAN’s Chairman Ravi Arumugam, and managing director Peter Doraisamy from member firm Peter Doraisamy LLC were also present at the event as guest speakers covering the topic of “A Call to Market - A One Stop Solution without Borders”
Peter Doraisamy
Managing Director, Peter Doraisamy LLC
"Legal and accounting practices are facing an increasing need to work together to meet the rising demand for overlapping and cross-border services that Clients today require. One viable and effective solution is to provide Clients one point of contact through an integrated network of Legal and Accounting firms for an array of multidisciplinary services regardless of jurisdiction and location."
