Rankings on Ease of Doing Business in Southeast Asia

Ease of Doing Business in SE AsiaSoutheast Asia is a hot market for business. There is untapped potential, both in terms of consumer demand and labour markets. With all eyes on Asia, it is important to focus your capital and team where you generate the greatest return on your investment. Which means getting into the details of every country’s laws: ease of setting up a business, access to credit, construction permits, registering property, taxation laws. This can be daunting, not to mention time consuming. Which is why we have come up with a few metrics that will give you a head-start on some high level knowledge on a few chosen countries in SEA.

The countries we have chosen are: Singapore, the Philippines, Malaysia, Indonesia, Thailand and Vietnam.

The metrics we have chosen are from the ease of doing business rankings published by the World Bank Group. They are: overall ease of doing business, starting a business, dealing with construction permits, getting electricity, registering property, getting credit, paying taxes, enforcing contracts, USD equivalent of a worker in retail/restaurants. For a thorough understanding on how the World Bank Group creates these rankings, you can read the explanation here.The data for rankings and number of procedures has been taken from World Bank Group’s Doing Business publication.

Ease of doing business
Singapore 1
Malaysia 18
Thailand 26
Vietnam 78
The Philippines 95
Indonesia 114

Singapore ranks first on the ease of doing business. This is not surprising. Since its independence, Singapore has positioned itself as a leader in doing business in SEA. By reducing bureaucratic procedures and taking the entire process online, Singapore has lived up to its top position for many years now.

Starting a Business
Singapore 6
Malaysia 13
Thailand 75
Vietnam 125
Indonesia 155
The Philippines 161

This metric is considered by measuring the number of days it takes to start a business. According to the World Bank Group, it takes 3 days to start a business in Singapore while in the Philippines, it takes 34, which gives you a good idea as to why the rankings look like the above. In the Philippines, much of the time is wasted moving from one department to another. It takes 16 independent procedures to start a business.

Dealing with Construction Permits
Singapore 2
Thailand 6
Vietnam 22
Malaysia 28
The Philippines 124
Indonesia 153

Indonesia ranks the lowest. It takes 17 procedures to obtain a construction permit in Indonesia while Singapore requires you to complete 10 procedures.

Getting Electricity
Singapore 11
Thailand 12
The Philippines 16
Malaysia 27
Indonesia 78
Vietnam 135

Vietnam has an average of 10 procedures taking 34 days while Singapore has 4 taking 31 days.

Registering Property
Singapore 24
Thailand 28
Vietnam 33
Malaysia 75
The Philippines 108
Indonesia 117

On average, Indonesia has 5 procedures, taking 25 days, while Singapore has 4 procedures, taking 4.5 days.

Getting Credit
Singapore 17
Thailand 89
Vietnam 36
Malaysia 23
The Philippines 104
Indonesia 71
Paying Taxes
Singapore 5
Malaysia 32
Thailand 62
The Philippines 127
Indonesia 160
Vietnam 173

This statistic is by far the most extreme. The total number of tax payments in Singapore is 5 per year which takes about 82 hours in the year whereas Vietnam has 32 payments per year which takes about 872 hours.

To understand more about taxation laws on some countries in the APAC region, you can read about it here for Singapore and for the Philippines.

Enforcing Contracts
Singapore 1
Thailand 25
Malaysia 29
Vietnam 47
The Philippines 124
Indonesia 172

In Singapore there are 21 procedures for enforcing contracts which takes about 150 days whereas Indonesia has 40 procedures, taking about 451 days.

Corruption Perception Index
Singapore 84
Malaysia 52
Thailand 38
The Philippines 38
Indonesia 34
Vietnam 31

The corruption perception index is a measure of how people within the country view the public sector. The index is relative to every other country on the list. It ranges from 0 (weakest perception) to 100 (cleanest perception).

Considering the countries we have chosen, it is pretty obvious why Singapore stands out. It is one of the most mature markets in SEA. The other countries are still in a developing stage. Singapore stands more as a reference point on these lists. Many of the SEA nations are held back by the large number of bureaucratic procedures and rampant corruption.

In addition to these factors, we should also consider the cost of doing business, in terms of labour, land and capital costs. There is a trade-off between cost and efficiency which we have avoided considering in order to bring out the basic metric of ease of doing business in SEA.

Hope this was helpful and relevant for your business! Watch out for more posts on rankings in SEA.

If you are in need of a payroll solution for your business, check out our Southeast Asia offerings here – PayrollHero.Asia

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Doing Business in the Philippines

4 Job Boards to Hire Your Best Recruits in Southeast Asia

unnamed-1Today, there are a mind boggling number of channels to use while searching for the best candidate to join your team. In Singapore, the number one channel for recruiters to hire employees is through an online jobs portal. The other Southeast Asian nations are catching up to the trend. Which means, not only do you have to post in multiple online portals, you also have to stand out from every other company in your industry because everyone is using the most popular channel. We want to help you with that. Here we have a list of jobs portals, both conventional and specialized, for restaurant and retail owners to recruit staff.

Recruitasia: This website is devoted to the hospitality sector in Singapore. This is a great site for very specific roles for your establishment. It also provides industry news so that you can stay ahead of the curve when you are recruiting. Currently, the website is in beta stage. During this stage, jobs can be posted free of charge while the website is adding new features and receiving customer feedback to improve their application procedure.

JobsDB: This website runs ads in many Southeast Asian countries: Singapore, Indonesia, the Philippines, Thailand and China. In Singapore, it currently has 300 positions posted on the website under F&B. In the Philippines, the site features 960 positions. Every recruiting ad costs SGD 99. However, JobsDB is turning over all Job ads to JobStreet.com.ph in order to streamline the two recruiting sites into one.

JobStreet.com: JobStreet runs in Singapore, the Philippines, Malaysia, Indonesia and Vietnam. Currently, the Singapore site is featuring approximately 800 vacant positions in the F&B industry.This is the largest recruitment website in the Philippines and one you cannot miss while posting ads. The Philippine website is currently running a promo package that is 40% off the standard price (the standard price being PHP 5,600). The Singapore website runs 3 packages, based on number of ads you want to post and how long you want them to stay live. The price ranges between SGD 180 to SGD 400.

KalibrrKalibrr: This startup recruitment website works on a completely different pricing strategy. Instead of charging employers per ad, the ads are free and the database is open for employers to find their best candidate. They are charged a minimal fee of PHP 50 only when they want to contact the candidate. This company is becoming increasingly popular in the Philippines with around 1000 applicants signing up every day. Kalibrr features restaurants and retail as the most popular searches. (Disclosure, both Mike Stephenson and Stephen Jagger of PayrollHero are investors in Kalibrr)

These four are a few of the most popular recruiting website in Southeast Asia. We hope this list is useful and do let us know if you have any additions to the list that are unconventional or special to the retail or restaurant industries.

Cloud Computing Part II: 5 Companies that are Changing the way Business is Done

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As a sequel to our previous post on cloud computing, we thought we would give you an idea of how cloud computing is being used by companies to help businesses in South East Asia. Below we have 5 companies that are changing the way businesses function. Some of them are catered towards bringing in more consumers through the door while others are helping business move day-to-day operations into the cloud so that businesses can spend more time and money on their core competencies.

Loyalty Apps

Perx: This Customer Relationship Management (CRM) software collects loyalty cards into one neat app. For a consumer, you earn points every time you purchase something. Accumulation of points leads to rewards. Perx says that consumers spend 7 times more with the app than without it. Some of the merchants under Perx’s belt are Subway, Joe and Dough’s, Maki San and Salad Stop.

For you, a merchant, Perx gives a huge client database by putting you on their map. The company uses Amazon Web Services to control all the data it collects. Perx’s data analytics gives information about consumption trends, how much a consumer would spend on lunch, where they are located: in short, everything you would like to know about your customer. Perx offers this wealth of data to all its merchants for a fee. As an added marketing platform, Perx features companies on their email and blog which is sure to boost your presence in the community.

Foursquare: While Foursquare does not collect virtual loyalty cards, it uses its core competency – geolocation data and services – in order to bring businesses to consumers. For businesses that claim their names in the Foursquare directory, all rewards and deals that are offered will be displayed to the user.

Inventory Management

TradeGecko: Singapore’s leading user-friendly inventory management software uses the Cloud. It helps retailers and wholesalers to manage multiple warehouses and the entire supply chain without using conventional methods like excel. TradeGecko allows remote monitoring which helps retail managers to control operations at multiple locations. TradeGecko also has Xero integrated into it to digitize the accounting end of the business as well.

Unleashed: Similar to TradeGecko, Unleashed provides analytics on turnover rates, overstocked items, managing margins across different channels (retail, wholesale, e-commerce) and all this in real time.  Unleashed also integrates other Cloud solutions to its app.

Food Delivery Apps

Slurp: Created by Silent Mode, Slurp is the Malaysian version of Foodpanda. It uses cloud based POS systems that help restaurant owners process delivery orders. While Slurp does not deliver food, it has a data analytics service along with a customer app and a waiter app, all in the effort to make ordering food a smoother and error-free process.

Where does South East Asia rank on Maternity Leave?

baby photoEmployee benefits are a growing concern for human resource (HR) administrators. South East Asia (SEA) lags behind the global average in terms of providing employee benefits. However, when it comes to maternity leave, the situation has been improving.

According to the International Labour Organization’s report: Maternity and paternity at work: Law and practice across the world, there has been a shift towards increasing maternity leave periods that go further than the 14 – week standard suggested by ILO. However the coverage is neither sufficient nor long enough for mothers before they have to get back to work.

SEA ranks in the middle to lower half in terms of length of maternity leave. On average, around 12 to 13 weeks are given as leave.

Singapore: the Ministry of Manpower lays down conditions for eligibility of maternity leave. This leave can be paid by the employer or can be reimbursed by the government. The length of the leave depends on certain conditions. A maximum of 16 weeks is allowed if the following criteria are met:

  1. The child will be a Singapore citizen
  2. The mother is legally married to the father of the child
  3. The mother has worked in the same establishment for a minimum of 3 months.

The last condition is mandatory for eligibility. MoM also takes into account the number of children the mother has to judge eligibility and coverage.

Malaysia: The 1955 Employment Act gives mothers 60 days (8 weeks) of maternity leave as long as the employee has worked in the company for 90 days prior to taking leave. The employer needs to pay the employee in full during leave. There are certain concessions for civil servants. Malaysia does not provide maternity leave for the sixth child and following children. Because of the short leave provided, mothers often work up to the due date in order to spend time with their child during leave.

Indonesia: Three months (or 12 weeks) of paid leave are given to mothers. At least 1.5 months of this leave must be taken after the birth of the child.

The Philippines: Article 133(a) of the Labour Code states that an employee who has worked in the establishment for at least 6 months is entitled paid leave 2 weeks before the due date and 4 weeks after delivery. The employer is required to pay for only the first four children.

Under SSS law, a woman member of the SSS is entitles to maternity benefits. While the employer must pay these benefits to the employers, it can be reimbursed by the SSS. In order to abail the Maternity Benefits, the employee must pay at least 3 monthly contributions within the year before the semester of childbirth.

Thailand: An employee is entitled to 90 days (or 12 weeks) of maternity leave. However, the employer must pay a maximum of 45 days. The remaining 45 days are paid from the Social Welfare Fund. In order to avail payment from the Social Welfare Fund, the employer is expected to make contributions to the Fund for at least 7 months before pregnancy.

Here we have a list of countries and the maternity leave that they offer:

Duration Countries
< 12 weeks ·         Hong Kong

·         Malaysia

·         Papua New Guinea

·         Philippines

·         Taiwan

12 – 13 weeks ·         Cambodia

·         China

·         DPRK

·         East Timor

·         Indonesia

·         Laos

·         Myanmar

·         South Korea

·         Thailand

14-17 weeks ·         Brunei

·         Japan

·         Singapore

>  17 weeks ·         Mongolia

·         Vietnam

Source of Cash Benefits: Historically, Asia has seen a higher percentage of the maternity leave being paid by the employer. However, the trend is moving towards cash benefits coming from mixed sources: from the employer and social security services. To put this in perspective, Europe, a region that has led the way for right of the employee, has always provided cash benefits from social security.

Paternity Leave: Rights offered to fathers are fairly limited. Countries offer just a couple of days of paternity leave as a shared provision between parents. Usually this leave is taken by the mother. Sometimes this leave is not paid. Approximately 28% of countries in Asia provide paternity leave.

Events Your Management Team Should Attend (Southeast Asia)

upcoming eventIs your restaurant chain growing? Are you expanding your retail stores? Are you bringing a new brand into the region? If you are, you are most likely identifying and implementing new systems and procedures in your business to help you manage your growth.

Here are some events that your management team should attend;

Zendesk.com
April 22nd, Zendesk’s Zen U – Kuala Lumpur, Malaysia (details)
April 25th, Zendesk’s Zen U – Jakarta, Indonesia (details)
April 30th, Zendesk’s Zen U – Manila, Philippines (details)

These are free events open to anyone interested improving their support process and customer experience.

PayrollHero.com
May 2nd & 3rd, PayrollHero’s TAS Certification – Manila, Philippines (details)
May 6th & 7th, PayrollHero’s TAS Certification – Manila, Philippines (details)
May 9th & 12th, PayrollHero’s TAS Certification – Manila, Philippines (details)

These are free events open to customers of PayrollHero who want to have their team time, attendance and scheduling certified. 

May 10th, 1:30pm, PayrollHero Unwrapped – Cebu, Philippines (details)
May 1st, 1:00pm PHT, PayrollHero Webinar – Online (details)

These are free events open anyone who wants to learn more about PayrollHero’s time, attendance, scheduling, HRIS, analytics and payroll platform. 

TradeGecko.com
May 10th, 3:30pm, TradeGecko Unwrapped – Cebu, Philippines (details)

These are free events open to anyone interested improving their inventory management systems and procedures.

New Leaf Ventures
May 10th, 10:00am, Better Business Brunch – Cebu, Philippines (details)

Entrepreneurs and soon-to-be entrepreneurs who are passionate about building their businesses.

Any others we should know about, let us know in the comments.