Have there been any significant regulatory developments in Singapore over the last 12 months?

There are several key measures that the Singapore government has introduced/refreshed in recent times over multiple objectives – garnering FDI, improving the quality of Single Family Offices in Singapore with tightened tax incentive conditions, increasing GST permanently from 2023 onwards to increase Govt revenue, as well as increasing CPF (pension fund contributions for Singaporeans) to help Singaporeans benefit from increased retirement/pension funding.

• Attractive government incentives to encourage companies to set up headquarters (HQ) in Singapore
• Tightened Single Family Office (SFO) criteria (w.e.f 5 th July 2023)
• GST increase from 7% to 8% (effective Jan 2023) and 9% (effective Jan 2024)
• CPF increase for employers

How would you describe the health of the accounting industry in Singapore in terms of customer demand, fee pressure, and staff recruitment and retention?

The industry has undergone a challenging pandemic period the past few years and the economy is now hit with escalating operating costs and higher borrowing costs (due to Central banks of the world rapidly increasing interest rates to combat inflation). Due to this, the industry has been trying to pass the higher cost to clients, though there is a limit to how much cost can be passed. Staff recruitment has seen similar trends, whereby hiring is now at a premium as the unemployment rate is low in Singapore (2.5%) with companies in the industry using multiple avenues to retain talent.

Are there any services areas where demand has grown over the last 12 months?

In recent times, companies are looking more favourably at international expansion (setting up new entities outside of Singapore) as companies in various sectors are looking at new growth opportunities outside of the country. Southeast Asia, North Asia and Europe expansion are the top 3 destinations.

Has there been any significant consolidation or merger activity in the accounting profession?

The continuing trend of consolidation in the industry – industry players acquiring actively via M&A across various segments of accounting/corporate services. Global and large regional players are most active in M&As, particularly players in the fund administration space.

What are your expectations for the next 12 months - are there any potentially significant developments in the pipeline?

InCorp will continue to look to grow their value and service proposition by expanding to new markets, either organically or inorganically via M&As.