Rankings on Ease of Doing Business in Southeast Asia

Posted on June 11, 2015 by Pragya Gupta

Ease of Doing Business in SE Asia Southeast 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

– – Related Posts – –

Doing Business in the Philippines

Payroll in APAC: Singapore

Posted on June 10, 2015 by Pragya Gupta

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Employer contributions in Singapore are collected by the Central Provident Fund (CPF). The deductions and levies contribute towards savings for Singaporeans and Permanent Residents (PRs) for retirement, insurance and building their homes. There are also certain levies that go towards different ethnic funds. We will go through all these deductions and levies.

CPF

CPF contributions are done by the employee and employer. The contributions ar singapore cpf e restricted to Singaporeans and PRs only. There are 4 major accounts that CPF contributions go into: Ordinary Account (for retirement, housing finance, investment, education), Special Account (for old age and special contingencies), Medisave Account (for hospital bills) and Retirement Account (this account is opened once the employee turns 55). Check out these links to find out contributions rates and deadlines.

Foreign Workers Levy

The levy is imposed on employers who employ foreign workers with Work Permits or S Passes. Levies do not need to be paid for employees with Employment Passes. The levy is calculated based on the ratio of Singaporeans to foreign employees that your business employs. Here is a link on how the foreign levy is calculated. The levy is paid on the first of every month. More details on the FWL here.

Skills Development Levy

The SDL goes to the Skills Development Fund, which provides grants for training programmes and workforce upgrading programmes. The levy must be paid for Singpaorean, PR and foreign workers. The rates are linked here.

Ethnic Fund

There are 4 Self Help Group (SGH) Funds that collect levies based on the ethnicity of your employees. The four funds are:

Chinese Development Assistance Council (CDAC) Fund, administered byCDAC
Eurasian Community Fund (ECF), administered by the Eurasian Association(EA)
Mosque Building and Mendaki Fund (MBMF), administered by Majlis Ugama Islam Singapura (MUIS)
Singapore Indian Development Association (SINDA) Fund, administered by SINDA

The levy is paid out of employees’ salaries. Employees may choose to opt out of the levy by signing the relevant forms. The levy must be paid every month. Here are the rates.

If you are looking for a Singapore cloud based payroll platform – look no further. PayrollHero’s end to end solution includes time, attendance, scheduling, HRIS and Singapore payroll. Plus, amazing business intelligence. Let us know if you want a one on one demo.

For more information on CPF contributions, make sure to read this link. If you want to know more about employer contribution in the Philippine, check out Payroll in APAC: the Philippines.. Hope this helps!

Disclaimer: As always, consult your lawyer or accountant for advice! We are here to help, but your specific situation should be reviewed by a professional with complete knowledge of your situation.

Singapore Corporate Taxes 102: Auto Inclusion Scheme

Posted on June 4, 2015 by Pragya Gupta

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Our Singapore Corporate Tax lessons are back! (I know what you’re thinking… nothing says exciting like taxes). This time we’ll be talking about how employers in Singapore should handle tax forms for their employees. The IRAS is trying to digitize the entire system by introducing the Auto Inclusion Scheme this year and linking it to CPF contributions. In short, filing tax returns is going to be a smoother, more integrated process.

Under the Income Tax Act, there are four forms that employers should be aware of:

Form IR8A: This is to declare income of all employees
Appendix 8A: This form should be completes if the employee is provided with benefits-in-kind unless these benefits are exempted from Income Tax
Appendix 8B: If the employee has benefited from any Share Ownership Plans, then this needs to be completed
Form IR 8S: Must be completed if excess CPF contributions are made by the employer.

Explanatory notes on each form are here. Income tax returns must be filed for the following people:

Full time resident employees
Part time resident employees
Non-resident employees
Company director (including a non-resident director)
Pensioner and
Employees who have left the organisation within the financial year

For your reference, here are the tax rates for different income brackets:

Taxable Income Bracket	Total tax on income below bracket	Tax rate on income in bracket
0-20,000	0	0
20,001-30,000	0	2
30,001-40,000	200	3.5
40,001-80,000	550	7
80,001-120,000	3,350	11.5
120,001-160,000	7,950	15
160,001-200,000	13,950	17
200,001-320,000	20,750	18
>320,001	42,350	20

The Auto Inclusion Scheme is a system for recording employee income and tax related information for companies with 12 or more employees for the entire year, ending 31 December 2014. Companies have to submit employee information to IRAS electronically by March 1st of every year, starting from 2015. This way, companies do not need to distribute hard copies of the above forms for employees to file their income tax returns.

If employers use payroll software to generate payroll, then the software can be used to submit files to AIS using another (free) software provided by the IRAS called the Validation and Submission Application. The payroll software should meet the IRAS file format specifications in order to submit forms. The Validation and Submission Application software can be downloaded here.

Once every employee’s details are filled in through AIS, companies should inform their employees to file their tax returns through the myTaxPortal. Employees no longer need to fill in their income and details from the four forms above because the AIS system already has it stored.

Employers who have fewer than 12 employees are also encouraged to use the AIS by filling out this form and emailing it to ais@iras.gov.sg. After submitting the form, companies will also have to go through a trial exercise before joining the AIS.

The AIS system can be linked to CPF Data in order to fill up Form IR 8S easily. The system makes for smooth functionality across the IRAS and CPF platforms. To sign up for the AIS and CPF Data Link-up Service from 2016, this application form must be filled. For existing AIS members who want to use the CPF Data Link-Up Service, this application form must be filled.

Hope this helps! If you want to know how to pay up CPF contributions, we’ve got you covered. More on Tax Clearance and CPF contributions later.

Disclaimer: As always, consult your lawyer or accountant for advice! We are here to help, but your specific situation should be reviewed by a professional with complete knowledge of your situation.

How to Get an Import License in Singapore

Posted on June 4, 2015 by Pragya Gupta

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How do you import the best ingredients for that awesome burger?

Scenario 1: Your restaurant is up and running. We’ve got your back with the liquor license. But now, you want to introduce a new segment to your restaurant: modern Japanese. You realize you need to import supplies in order to wow your customers.

Scenario 2: You are running a grocery store and want to sell imported products: meat, fish, eggs, processed food. Your supplies are coming in from all over the world and the suppliers are ready for business.

Your imported supplies need to be approved by Singapore Customs. You need an import license before you do anything else. How do you proceed?

Step 1: You need to register with Agri-Food & Veterinary Authority of Singapore (AVA). But before that you must make sure of the following:

Ensure that the imported products comply with the General Classification of Food and Food Products
Do note that importing fresh table eggs require an additional screening process to ensure that you have complied with the storage requirements. More on this here.
Make sure that the food establishment that is exporting food to Singapore is accredited by AVA. You can check here if the country or food establishment you are importing from is accredited by AVA.
An active Unique Entity Number (UEN) with Singapore Customs. To learn how to activate your customs account, click here.
A GIRO account for the payment of fees

Step 2: Submit an application to AVA through the e-licensing website. You can apply for a license to import meat, fish products, fresh fruits, vegetables and table eggs. To import processed food products and food appliances, you have to register on the same website (no license).

Step 3: You must pay for your license via GIRO

Here are the charges for licensing and registration fees:

License for Import/Export/Transshipment of Meat and Fish Products	SGD 84/year	Normal Service: 1 working day to processExpress Service: Same day processing. Pay an additional fee equal to the cost of your licence
Licence for Import/Transshipment of Fresh Fruits and Vegetables	S$378 per annum	Normal Service: 1 working day to processExpress Service: Same day processing. Pay an additional fee equal to the cost of your licence
Licence to Import Table Eggs	Free	5 working days to process
Registration to Import Processed Food Products and Food Appliances	Free	1 working day to process.

The process is straightforward and quick.

What To Do After The 3rd Store Grand Opening

Posted on June 4, 2015 by

Image by decor8blog.com

Success in your business would mean it’s time to expand, but this feat does not come without it’s own set of challenges.

After interviewing 3 different owners for our Retail/ Restaurant Executive Series, I’ve learnt that they all faced similar challenges in management, as soon as they’ve reached their 3rd store opening.

Here are some of the problems and solutions used by our retail/ restaurant executives when managing multiple store locations.

Keep Calm

Managing multiple locations means using technology to cut down on travel expenses

Implementing a different management system is necessary when you have several stores to oversee. Although it is not impossible, but it takes a lot of effort for you to constantly schedule your travel time to supervise different stores at different locations. Travel costs will pile up even more if your stores are located at different countries.

Getting your hands on free, cheap or available SaaS (software-as-a-service) solutions will be save your company a chunk of money. While some businesses have their own custom- built software platforms as collaborative platforms, some of the more commonly-used tools are available online and widely used by small business owners. Some of the best cost saving productivity tools are available online- free or at low monthly costs like Google Documents, Skype, PipelineDeals.com.

As mentioned by our retail executive Andrew Masigan, owner of The Advent Manila Hospitality Group in the Philippines, he advice that “the trick is to put the important systems in place… the efficiency your company’s chain-of-command largely determines
how well your stores operate”.

Managing multiple locations means having putting a system in place

“You must have systems in place to be able to standardize the quality of your communications, products and results,” says Bert Martinez, founder of Bert Martinez Communications. Ensuring a strong internal system of operations would mean that you can save costs on training and reduce time required for supervision. Each employee will have a clear understanding of their responsibilities and boundaries.

In our interview with Adrien Desbaillets, President at SaladStop, he says that “a strong infrastructure is required to support the operation. Overheads start to escalate and a strong focus on SOPs, training, technology is required.” The point here is then to make each employee’s responsibility crystal clear through an organised structure and combine that with a system that measures each person. That way, everyone is accountable for delivering their work regardless of which location they are based at.

Managing multiple locations means shifting from micro management to systematized macro management

Before, Eileen Grey– owner of The Picture Company in the Philippines, didn’t need to think about an entire infrastructure when she opened her first store. She recalls it being just “very personal and mom and pop” until her 3rd store opening. Now she has to consider personnel training, back office space, production, logistics and others.

Having systems and technology in place is good for the business, but it wouldn’t help much if there is no focus on communication. Establishing good communication practices within the whole business is key to collaborate with offices at different locations, co-workers and clients.

Good tips to foster good communication between offices at different locations can include using webcams during weekly team meetings or webinars so team members can see each other, establish a daily reporting system online and use a centralized task management software like Asana, Trello and others.

(Read on how PayrollHero stays in sync with our other offices across the globe)

PayrollHero can help you efficiently manage your multiple business locations and cut down on costs. Talk to us about our business or meet us at our next Meetup!

Canada B2B Networking Marketplace: The Post Event Write-up

Posted on June 2, 2015 by

Great turn out at the Canada B2B Networking Marketplace

The energy at the event was amazing as business owners are enthusiastic to share their product stories with others in attendance.

PayrollHero made a presence and shared our story- how we believe we can help businesses function better with our nifty HR and payroll management software in the cloud.

We would like to say a big Thank You to Guy Belanger for letting us take part in this great opportunity.

Thank you Guy!

Event Highlight

This year’s event also marks the 50th anniversary of bilateral ties between Singapore and Canada. In a speech by High Commissioner H.E Heather Grant, she expressed gratitude to be friends with Singapore and played a part during its formative years since 1965. (Read more about Singapore’s 50th anniversary of bilateral relationship with 13 other countries)

This event was a prelude to the main exhibition and networking events: CommunicAsia 2015 and BroadcastAsia 2015 held at the Marina Bay Sands, Singapore between 2- 5 June 2015.

If you’ve missed the opportunity to speak with the companies present at last night’s event, you can be sure to speak to them at these events. The Canadian pavilion at MBS Basement 2 (BH3-07) has meeting spaces to be used at your convenience on a first-come first-served basis.

If you’re looking to meet with PayrollHero, we are having a casual meetup at our office on 10th June 2015.

Details and Registration available here >>>

Restaurant Executive: Adrien Desbaillets, President SaladStop!

Posted on June 1, 2015 by Stephen Jagger

As part of a new series on this blog [Retail / Restaurant Executive] we will be interviewing restaurant and retail executives from all over the world to gain insight and perspective into how they make their decisions, grow their businesses and deal with challenges.

Adrien of SaladStop Today is Adrien Desbaillets the President at SaladStop!

Q. When and why did you start Salad Stop?

We started SaladStop! In November 2009 and our motto is “Eat Wide Awake”. Simply put we want to change the way people think about their food.

Q. What is your background? (restaurants? or you figured it out as you went?)

I grew up in the hotel industry as my father spent many years with InterContinental and Shangri-La so I guess that it must be in the blood! We travelled around the world and some of my fondest childhood memories are in the back of a hotel kitchen. I graduated from the School of Hotel Administration at Cornell University and continued as a consultant in the hospitality sector. I most recently worked for Kingdom Hotel Investments, spearheading all investment opportunities for the group in China. I moved back to Singapore during the financial crisis and we decided that we want to bring something fresh and healthy to Singapore. No one was presenting salads the way we were.

Q. How many locations do you have?

We have 12 in Singapore and we just opened our second location a few weeks ago in the Philippines at Rockwell and are scheduled to open a few more locations by the end of the year there.

Q. How do you choose a location?

We choose our locations based on a multitude of factors but most importantly, we need high volume areas with a strong concentration of office buildings. SaladStop! is still mainly a lunch concept and we rely a lot on strong office demand.

Q. Will you ever take a sub-par location, if it is in an area you want to be in? or will you wait for the right spot?

We generally will never consider a sub-par location but have opened locations in new developments which might take a longer time to mature. These locations take a long-term view but can also give us a first mover advantage. Otherwise, we will wait for the right spot and market conditions.

Q. How big is a standard location? What have you learned about location size?

Our standard locations vary between 500 – 800 square feet. We have learned that our locations can be smaller with the support of a centralized kitchen and efficient spacial planning.

Q. Does a corner location matter?

A corner location is preferrable but visibility, accessibility and traffic are more important. A strong corner location is a bonus but we generally don’t consider this as a criteria.

Q. Are malls better? or street level locations?

This varies greatly in Singapore and Manila as malls can be a destination in itself and provide a constant traffic flow while street level locations can provide additional visibility and peak-hour traffic.

Q. At what point did the number of locations change how the business is run? I have been told, 1 or 2 locations is ok, but 3+ requires a different management approach, systems, procedures, etc. What was the tipping point for you?

We learnt that the tipping point is close to 5 locations. The economies of scale at that point bring a number of benefits but a strong infrastructure is required to support the operation. Overheads start to escalate and a strong focus on SOPs, training, technology is required.

SaladStop! Journey
https://www.youtube.com/watch?v=_Fu9vaJXJM8

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

Posted on June 1, 2015 by Pragya Gupta

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.

PayrollHero | Canada B2B Networking Marketplace

Posted on May 31, 2015 by

We are excited to be part of this networking event!

Proudly hosted by the High Commission of Canada- This networking event is all about getting to know Canadian companies in Singapore varying from hardware, software or service in Next Generation Connected Services, Telecommunications, Power Solutions, Mobile Broadband and many others.

If you interested in being part of this excellent networking opportunity, please register via this link: http://www.mbdesign.com.sg/Canada_CommunicAsia2015/

Stay tuned to read our after-event post next week!

Happy Vesac Day | Singapore Holiday

Posted on May 31, 2015 by Stephen Jagger

singapore holiday

“Vesākha (Pali;Sanskrit: Vaiśākha, Devanagari: वैशाख), Wesak or Vesak, also known as Buddha Purnima and Buddha Day, is a holiday observed traditionally by Buddhists on different days in Sri Lanka, Nepal, Tibet, Bangladesh, Bhutan, India, and the South East Asian countries of Philippines, Singapore, Vietnam, Thailand, Cambodia, Laos, Malaysia, Myanmar and Indonesia, and other places all over the world.^[1]^[2]^[3] Sometimes informally called “Buddha’s Birthday”, it actually commemorates the birth, enlightenment (nirvāna), and death (Parinirvāna) of Gautama Buddha in the Theravada or southern tradition.^[4]”*wikipedia