Jacques Pickering

#SingaporeWashing vs. #SingaporeStamping Since FT published an article and coined the term "Singapore Washing" to depict the trend of foreign companies (in particular, Chinese companies) coming to Singapore to establish a presence to access other markets (think ByteDance and SHEIN), there has been follow up stories on this "phenomenon". I share an article in which I commented on this trend, but really, this is not what the media has made it out to be. First, I should point out that I personally do not fancy the term “Singapore-washing”, as it denotes a sinister, or even criminal element to the phenomenon of foreign companies setting up a HQ or RHQ in Singapore to gain access to other markets (think "money-laundering" and "green-washing"). I would instead prefer the term "Singapore-stamping" (giving a Singapore stamp of approval ) or "Singapore-pivoting" (using Singapore to pivot to other markets). Second, the tactic (if I may use the term "tactic") of incorporating a Singapore company to venture into other markets has various benefits from the the tax and free-trade perspectives, given the numerous FTAs and DTAs that Singapore has entered into. That Singapore is the world's third largest financial centre, has a strong rule of law, is stable economically and politically are other key factors. These are what the Singapore government has worked very hard for over the years to build the reputation that Singapore enjoys now, and the attraction of foreign companies to set up shop in Singapore is part of our growth story. So there is nothing sinister or wrong about setting up a corporate entity in Singapore to venture out. There is no "washing" involved as in "money-laundering"; the businesses that incorporate Singapore entities have legitimate businesses. Most of them merely want to use Singapore as a platform to gain better access to other markets, as using Singapore may be more advantageous than if they used the entities from their home countries. There is nothing to hide, or wash or launder.  The focus is on Chinese businesses coming to Singapore, but there are numerous non-Chinese companies setting up shop in Singapore as well - Dyson's global HQ is in Singapore; Google, Meta, 3M, FedEx, Rolls Royce... the list goes on. What do you think of this trend? Have you encountered this in your own practice? Would be curious to learn more from my LinkedIn network. Links in comments below to the FT article that spawned this debate, and relevant articles on global MNCs (other than Chinese) using Singapore as the base. #Singapore #business #FinancialHub #GlobalHQ 20240805

52

7 Comments

FDI outlook as of Mid 20224: Thailand's Foreign Direct Investment (FDI) outlook appears robust and promising still. In 2023, FDI saw a substantial increase of 72% compared to the previous year, reaching a total value of approximately USD 24 billion. This surge was driven by significant investments in priority sectors such as electric vehicles, smart electronics, and green industries, with notable contributions from China, Singapore, the U.S., Japan, and Taiwan. For the first half of 2024, the FDI continued its positive, bolstered by ongoing investments and new projects in the Eastern Economic Corridor (EEC) and other industrial zones. Major approved projects include data centers, steel wire production for the automotive industry, and steam production for industrial use. The Thai economy, supported by these investments, is projected to grow between 2.2% and 3.2% in 2024, with the expansion of exports and tourism revenue playing crucial roles. Overall, the outlook for Thailand's FDI and economic growth in the second half of 2024 is cautiously optimistic, with strong investor confidence and strategic government initiatives driving the momentum. #fdi #boi #thailandfdi #thailandboi #imvestment #thailandinvestment #investmentinthailand #eec #thailandeec #easterneconomiccorridor #easternseabord #lawyer #businesslawyer #thailawyer #lawfirm #thailawfirm

5

1 Comment

📍 New southern hub 🚀 🎯 Foreign and domestic investment in the southern province of Ba Ria - Vung Tau stood at almost 1.63 billion USD and over 25.93 trillion VND (1 billion USD) during the first four months of 2024, surging 7.2-fold from a year earlier. 🧲 The foreign direct investment (FDI) attracted during the period is equivalent to 81.4% of this year’s target, Tran Thuy Cam Le, Deputy Director of the provincial Department of Planning and Investment, told a meeting reviewing the April performance. 🗓️ During January - April, nearly 1.63 billion USD was poured into 24 FDI projects, both new and existing ones. The value shot up 16-fold year on year. 💰 With the latest investments, Ba Ria - Vung Tau is currently home to 474 FDI projects worth nearly 33.18 billion USD. 💉 Meanwhile, 11 new and existing domestic projects were injected with more than 25.93 trillion VND during the four months, surging 3.9-fold year on year. 🧮 As a result, there are now 692 domestic investment projects with total registered capital topping 398 trillion VND, statistics show. ⬇️ Le said the province, which is part of the southern key economic region, also recorded fast growth in many other economic figures over the last four months. 📈 In particular, total retail sales of goods increased 12.19% year on year; revenue from transport, warehouse and transport supporting services 8.16%; cargo throughput at local ports 33.91%; revenue from accommodation services 16.79%; and earnings from travel services 42.62%. 💲 Besides, almost 32.37 trillion VND was collected for the state budget during the reviewed period, equivalent to 36.53% of this year’s target and rising 8.27% from a year earlier. Foreign invested firms contributed the most, about 6.18 trillion VND, according to the official. https://lnkd.in/gXw2JUie

24

1 Comment

Big thank you for CNA for helping set the record straight for us. We have not decided which bourse to list on to date and we are not ruling SGX out. I do not know how the reporters in SPH can misquote me as “insisting on listing in the United States”. This is grossly inaccurate. On another note, the Singapore Exchange does have things to fix. The fix needs to be multi dimensional from various angles - not just retail investors, but also coverage from brokerages, attracting/ seeding more international secondary funds. The solution has to be more ecosystem led. I am sure the good folks in SGX are doing all they can in their power to improve SGX, any form of review at this stage is good. Looking forward to a healthier, stronger capital markets in Singapore and the region!  https://lnkd.in/gjGKkjDu

221

9 Comments

I have released a short video lecture on 2023 Merger Guidelines (https://rb.gy/s6y0ro). Although this is in Japanese, please enjoy. Through this lecture, you will realize a big difference from 2010 Horizontal Merger Guidelines and 2020 Vertical Merger Guidelines. #antitrust #competitionlaw

9

🥇What Did Damien Say? It was the day before Chinese New Year. The venue was Great Eastern’s Centre for Excellence (CFE) at 1 Pickering. The man of the moment was Damien Tan. What did Damien say ? Damien said the the way we use a fund changes the risk in it. If we invest in a fund of a specific risk grade but hold it for the short-term the chances of losses are much higher as are the magnitude of losses. If we hold the same fund for longer time period then the chances of losses are less and so is the magnitude of the fall. The fact that a funds risk grade is not static but a function of how it is used has tremendous implications for both the financial planner as well as the customer. For his contribution to the knowledge of financial planning, Damien is awarded the title of Champion of the Master Class. #LookingAtInvestingInANewLight #InvestingCanBeEasy
#LBFalumni #SkyHighTower

29

A worthwhile read given the recent focus and prosecution of nominee companies.

4

The Golden Tower deal is near closing. Golden Tower was put up for sale last year, but has had repeated bouts of cancellations and delays with the preferred bidder changing each time. Finally, Singapore-based asset management companies CapitaLand Investment Management and Keppel Asset Management competed to win the acquisition, and the seller KORAMCO Asset Trust, chose CapitaLand Management. With several different preferred bidders and deal cancellations, the seller was very careful in this selection. KORAMCO sent the final draft of the MOU to CapitaLand seeing a high possibility of closing the deal, and CapitaLand signed the MOU on the 9th after completing a legal review of the final draft. The acquisition price is KRW 36 million per 3.3 square meters, or a total of KRW 440 billion. https://lnkd.in/dwwJsFnj #SPI #Seoulpropertyinsight #realestate #koreanmarket #investment #commercialrealestate #GoldenTower #MOU #KORAMCO #CapaitaLand #Singapore #KBBank #strategy #jointventure

30

“Affected trustees must now prepare accounts and detailed income and distribution statements for all the trust assets, both CFC and non-CFC. Offshore trustees who do not have a presence in Taiwan must appoint a local agent to handle registration, obtain a tax identification number and conduct the reporting and withholding procedures.” More “onshore” regulation for “offshore” trustees! Trustees should have accounts but are they in the correct form?! The IRS also requires statements in a certain form for US beneficiaries. Make sure the agent fee is included in the annual fees! Rumours of CFC enquiries from the PRC amongst others. #trustees #trusts #regulation

7

This Article is exciting and helpful. #IndochineCounsel #VietnamLaw #MergersandAcquisitions #Investment #Education #VietnamBusiness #LegalServices #BusinessLaw

1

Singapore under new management! Mr Wong has good instincts on the economy. His priority is for it to remain as open as possible. Embracing trade and capital flows means workers are exposed to the latest technologies. This is why median wages have risen more than in most rich countries. Growth generates new resources to solve problems and creates new industries, allowing diversification away from obsolete or sensitive sectors. But openness involves creative destruction, with sudden shocks and shifting jobs. Lessons here for New Zealand as Prime Minister Christopher Luxon forges a program to lift the productivity of the New Zealand economy and prosperity of all New Zealanders…

2

Hong Kong . “Family Offices”. Perhaps it is because I am one of very few multi - jurisdictional practitoners in the region but to me definitions are important. The Invest Hong Kong - Deloitte report ESTIMATED that there are 2700 single family offices in HK. There is obviously much wealth in HK but I would welcome (privately if necessary) the basis for this number. The Chief Executive of HK in the policy address (para 38) “there are 2700 single family offices in Hong Kong”. Hong Kong is targeting a further 200 by 2025. But 200 also seems to be the number of FIHV tax concession applicants which are expected. The tax concession (for FIHVs but commonly referred to as family offices) is only a small percentage of the FO ecosystem - not the entirety of HKs FO ecosystem. The SCMP fell into this trap in their piece this week “In Hong Kong, regulatory requirements dictate that a family office needs HK$240 million (approximately US$31 million) in assets to operate”. This is the threshold for the FIHV tax concession not for “family offices”. My key takeaways - there is a very wide range of family office structures available. For many clients there will be potential advantages in considering “offshore “ structures as part of a family office. #familyoffices #SFO

46

7 Comments

Earlier this morning 2 Dec 2024, I had a good discussion with Andrea Heng and Hairianto Diman on CNA 938 radio, on the 2024 Labour Force Advance Release, via a Zoom call. It was a good report for workers overall. Wages went up in real terms, i.e., after accounting for inflation, reversing the real income decline of last year. 💡 Median income was up 5.8% year-on-year in nominal terms, and 3.4% in real terms. ⭐ For P20 - lower-income workers in the 20th percentile of wages, it was much higher at 7.1% y-o-y nominal and 4.6% real. This was on the back of an improved macroeconomic environment and the continued tripartite structural support for the lower income, including in the #ProgressiveWageModel or #PWM, #NationalWageCouncil recommendations, and Government transfers, including Workfare. With PWM providing for nominal increases across 8 industries of up to 10.8% p.a. in wages (2022-2028 requirements), the picture is optimistic. 👌 Longer term, the increases have been more modest. But there was still real income growth: 0.7% p.a. for median and 1.2% p.a. for P20. 💠 The recently released Household Expenditure Survey #HES also says that household incomes have risen faster than expenditures across all quintiles in the five-year period of 2017/8 - 2022/3. Ultimately, however, averages are a statistical construct. 👆 Income & financial security are not just things that happen to us because of macroeconomics & government policy. We have the ability to make a difference for ourselves in various aspects: 1️⃣ Our income-earning capability (our Most Important Financial Asset!). Do three things: work well; skill up well; plan well for #careerhealth. On the latter, check out Workforce Singapore's Polaris on career planning, especially for PMEs. #NTUC also does career mentoring: look for NTUC U PME 2️⃣ Our expenses – control our own inflation rate and build a solid foundation for #financialhealth 3️⃣ Acquire #financialliteracy and build personal systems and habits to enable you to take good action. MoneyOwl has some suggested rubrics.   If we have right mindset, we can build our best possible life, with a combination of personal action, government and collective help, as is the Singapore way.

32

4 Comments

More scams in Singapore but this time involved high IQ and EQ people rather than mom and pop. The mastermind even has a MAS license, educated etc and his idea of getting rich is to buy cheap nickel from a mine in Western Australia and sell it at huge profit to some lah-lah land. The culprit ? Forged documents - none did DD on. Forged docs are #1 most common from ID to Bank Statements etc. https://lnkd.in/gyptyZaV This is in contrast to the Veronica Macpherson case who came to Singapore and Malaysia offering 18% returns on loans backup with sub div-land titles for a FIFO project also in WA. In the later case no investors including my clients (who is also a lawyer) got their money back save for one who came over to Perth and managed to withdraw before the big show begins. Yep with all scams, the scammers need to do a great show to show off their wealth else is not going to work. Veronica is even planning to restart her "business" https://lnkd.in/g_bWBQ7x Easy come easy go.

1

1 Comment

Last night, I had the pleasure of catching up with old friends at a private dinner. Among them was Albert Moh, a dear classmate from Maris Stella High School and the visionary founder of Freshening Industries Pte Ltd. It was not just a gathering of old friends but also a celebration of Singaporean ingenuity and perseverance. Under Albert's leadership, Freshening has navigated numerous challenges to emerge as a beacon of innovation in the hygiene sector. From rigorous R&D efforts to navigating the complexities of attaining global certifications, their journey is a testament to what a differentiated offering, strong leadership and execution capability can achieve. Each attendee was gifted a range of products – a memento of their tangible impact. Reflecting on that evening, I notice similarities between Freshening’s journey and how our Vertex network of venture capital funds has built enduring technology and healthcare startups globally. At the core, it’s about three things: 1. Exceptional offering: A solution that solves a real problem and resonates with the market. 2. Strong founding team: Passionate and talented individuals who believe in the vision. 3. Flawless execution: The ability to navigate challenges and turn ideas into reality. Whether it’s developing hygiene products or building the next global champion, the core ingredients for success remain the same. Albert’s journey is a powerful reminder that great companies start with global aspirations. From their modest beginnings in Eunos (Singapore) to making their mark on the world stage, it is inspiring to see his vision come to life - not just for him but for Singapore’s growing reputation as an innovation hub. This is akin to the gems we have witnessed emerging from our global network, such as Nium and Patsnap. Wishing Albert and the Freshening team many more years of innovation and success.

128

2 Comments

Tripartism is the bedrock of #labour relations in #Singapore, and for the most part the Tripartite Partners (comprising the Ministry of Manpower, the National Trades Union Congress (NTUC) and the Singapore National Employers Federation (SNEF)) do a good job of portraying a harmonious and collaborative relationship. ‍‍ The media statement by the MOM over the weekend is therefore rather surprising. The Ministry not only confirmed that the #company had complied with its statutory requirements to file #retrenchment notifications (within 5 working days), it also acknowledged that the company had not done anything wrong in notifying the #union of the #layoffs only a day before the #restructuring since the affected #employees were NOT unionised. If you recall, the union (UWEEI) had taken umbrage on the basis that it was not given sufficient time to engage in "meaningful discussions" with the #employer and the affected employees. The MOM's clarification effectively rubbishes the union's arguments. I would add that the mandatory retrenchment notifications also already serve the purpose of putting the affected employees on the radar of the Tripartite Partners so that help, training and alternative employment can be offered. This is as unequivocal a put down as you will find around these parts. #labourlaw #labourrelations #tradeunions #tradeunion #industrialrelations #employmentlaw #employmentlawyer ‍‍‍‍ https://lnkd.in/ggajVjXM

25

1 Comment