News Blog for SMEs

The Monetary Authority of Singapore (MAS) will now by the regulatory authority for futures trading. The move comes as part of the Government’s effort to steamline licensing and compliance procedures.

The changes, proposed under the Commodity Trading Bill, was mooted in Parliament on Tuesday. Firms who trade in both financial and commodity futures will now only need to obtain one licence from MAS. Currently, the licences for trading commodity futures had to be obtained from International Enterprise (IE) Singapore.

Sources:

• MAS to be sole regulator of futures trading activities, Channel NewsAsia, 18 July 2007
• MAS to be regulator for all futures trading, The Straits Times, 18 July 2007
• MAS may oversee commodity futures, The Business Times, 18 July 2007

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The new institute aims to raise service standards in Singapore and encourage businesses to be more service-oriented.

The Institute of Service Excellence (ISES) is a collaboration between the Singapore Management University (SMU) and the Singapore Workforce Development Agency (WDA). The “Go The Extra Mile for Service (GEMS)” is the latest latest initiative by ISES.

According to a recent survey, only 52% of business leaders are motivated to raise service standards, compared to 74% of the general population and 65% of service staff.

To help raise service standards, ISES will organise conferences, forums and workshops. The institute also plans reach out to the financial, logistics and healthcare industries.

New benchmarks will also be established to measure service levels and customer satisfaction across the industries.

Sources:

• New centre for execs to brush up on service, The Straits Times, 19 July 2007
• GEMS takes new step with launch of service institute, Channel NewsAsia, 18 July 2007
• Institute for service excellence opens, The Business Times, 19 July 2007

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A 20% hike in development charges will be implemented immediately on all developments which have not secured provisional permission of as July 18.

Currently, developers have to pay a 50% tax on the appreciation in land value. This will be raised to 70%. In other words, if a developer is paying S$5,000 per square metre in development charges, it will be raised to S$7,000.

The surprise hike may stem en bloc sales as developers will have to spend more on buying land for redevelopment.

Sources:

• Govt’s move to raise development charge will slow en bloc sales, Channel NewsAsia, 18 July 2007
• Property charge hike may cool en bloc fever, The Straits Times, 19 July 2007

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Applications for the third tranche of the Loan Insurance Scheme opens next month.

The loan insurance enables SMEs to secure loans easier by insuring them against default. Under the Loan Insurance Scheme (LIS) the Government bears half of the insurance premium. When SMEs default on loans, the participating bank will be able to claim back 75% of the amount defaulted from the insurance agency.

The first two tranches of LIS generated some S$280 million in loans over 5 years. The latest tranche features lower insurance premiums and higher discretionary limits on loans. LIS is particularly relevant to businesses who are not eligible for the Local Enterprise Finance Scheme (LEFS) such as wholesalers, traders and distributors.

Spring Singapore and International (IE) Singapore have been managing this scheme since it was launched in 2002. Applications open next month.

Sources:

• 3rd tranche of Loan Insurance Scheme to generate more loans for SMEs, Channel NewsAsia, 19 July 2007
• Govt improves loan insurance scheme for small firms”, The Straits Times, 20 July 2007
• 3rd LIS tranche to give $3b in loans to SMEs, The Business Times, 20 July 2007

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The Monetary Authority of Singapore (MAS) is providing up to 70% funding for financial training programmes and related assessment fees.

Five training providers have been selected to develop and conduct training programmes for the financial services industry:

• Financial Training Institute @ SMU
• International Compliance Association
• NUS Risk Management Institute
• Singapore College of Insurance
• Wealth Management Institute

Over 270 programmes on fund management, wealth management and insurance will be offered by the training providers.

Sources:

• IBF appoints five training providers to support finance sector, 19 July 2007

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How do you distinguish credible dating agencies from seedy ones? Look out for the SDU Trust Mark.

The Trust Mark is part of the accreditation framework set up by the Social Development Unit (SDU) for dating agencies. To earn the mark, they will have to comply with a code of conduct and meet certain standards. Practitioners and agents will also be required to attend training courses developed by the Singapore Workforce Agency (WDA).

There are some 200 matchmaking/dating agencies in Singapore. Those who want to apply for the Trust Mark should apply to the Accreditation Council for the Dating Industry.

Sources:

• Legitimate dating firms can get SDU stamp of approval, Channel NewsAsia, 20 July 2007
• Quality seal: Training a must for dating agencies, The Straits Times, 20 July 2007

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The Public Utilities Board (PUB) has set up the Water Efficient Fund. Businesses can tap into this fund to implement measures which lead to water conservation.

According to the Ministry of the Environment and Water Resources:

Examples of such initiatives include the recycling of potable, NEWater and industrial water, the use of alternative water sources like seawater as well as implementing initiatives to promote water conservation in the community. The Fund can also be used for feasibility studies, water audits and installation of water systems for recycling or use of alternative sources of water.

Sources:

• “Fund set up to help industries save water innovatively“, ChannelNews Asia, 17 July 2007

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The Optometrists and Opticians Bill was passed into law on Tuesday. Optometrists and opticians must now be registered with the Health Ministry before they can practice. Only those with the requisite educational or professional qualifications and experience can be registered.

Sources:

• “New rules for optometrists, opticians to ensure high standards“, ChannelNewsAsia, 17 July 2007

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Key exports slowed by 1.2% in June due to the slowdown in electronic exports. The overall trade projections for 2007 have been revised down from 5%-7% from the earlier forecast of 8%-10%.

Electronic exports fell for the fifth straight month this year and is expected to remain weak for the rest of the year. The sector has been hit by falling prices.

Non-electronics exports, made up mainly of pharmaceuticals and petrochemicals, grew 13.1% to 8.72 billion dollars.

Sources:

• Singapore cuts 2007 trade forecasts as key exports slow in June, ChannelNews Asia, 17 July 2007

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A new law has been introduced into Parliament. If passed, unlicensed security agencies can be fined up to S$50,000. Currently, the fine for operating without a licenses is S$10,000.

Those who hire unlicensed private investigators, security officers, bouncers, etc. may also be fined up to S$50,000 and/jailed up to 2 years.

Sources:

• “Hefty fines for unlicensed security agencies”, The Straits Times, 17 July 2007

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