Southeast Asia continues to attract Chinese capital and investment activity amid global uncertainties. China has made an effort to prioritize neighborhood diplomacy in the region, such as through the Belt and Road Initiative.
Join us for a webinar designed for Chinese companies seeking to expand their operations in this dynamic region. This webinar will provide valuable insights and practical guidance on structuring their investments and operations in certain key Southeast Asian and South Asian countries (Singapore, Indonesia, Malaysia, Thailand and India).
Key Takeaways
Singapore
- Overview of the business landscape in the region
- Singapore’s strategic location, robust infrastructure, resilient global financial system, business-friendly tax and investment protection regime, and well-respected legal and regulatory regime make it an attractive area for business in Southeast Asia.
- Legal and regulatory requirements for establishing a presence
- From a sole proprietorship to a branch of a foreign company, there are a wide variety of legally recognized business structures.
- Balanced and pragmatic employment laws respect and protect personal property, including intellectual property and personal data.
- Tax considerations when establishing a presence
- There are four tax types in Singapore: income tax, goods and services, stamp duties, and property tax.
- The combination of a competitive corporate tax rate, territorial tax system, tax incentives, and double taxation treaties makes Singapore a favorable location for businesses seeking a tax-efficient environment.
- Litigation and arbitration
- According to a 2021 survey, Singapore International Arbitration Centre (SIAC) is the second-most preferred arbitral institution after the International Chamber of Commerce.
- SIAC’s reputation and effectiveness in international arbitrations are built on its modern rules, impartiality, experienced arbitrators, efficient case management, supportive legal framework, and international recognition for enforcing arbitral awards.
- Labor and employment issues
- Singapore’s judicial system is known for its efficiency and impartiality in handling employment disputes.
- Employees in Singapore are entitled to various rights and protections under the law, including protection against unfair dismissal, workplace safety and health standards, and protection against discrimination and harassment. Employers must uphold these rights and provide a safe working environment.
- Navigating data privacy regulations
- The Personal Data Protection Act 2012 (PDPA) has been in force since July 2014 and governs the collection, use, and disclosure of individuals’ personal data by organizations. The Personal Data Protection Commission (PDPC) is the data protection authority.
- Although the PDPC encouraged organizations to make voluntary notifications upon the occurrence of a data breach, there was no mandatory obligation under the PDPA for organizations to notify data breaches to the PDPC and/or affected individuals.
Other Southeast Asia Jurisdictions
- Common investment structures used when investing in key Southeast Asian countries
- Indonesia
- Since 2021, many sectors allow 100% foreign direct investment (FDI). Where FDI is restricted or conditioned, then nominee structures are not advisable.
- Malaysia
- Relatively fewer FDI restrictions, except in certain protected sectors (e.g., upstream oil and gas, banking, insurance, education, and freight forwarding).
- Thailand
- Generally, FDI is limited to 50% minus 1 share. Sectors deemed important for FDI are promoted by the Board of Investment: (e.g., electric vehicles, smart electronics, digital, and creative).
- India
- 100% FDI is automatically permitted in most sectors (exceptions are sectors where foreign ownership is capped such as print media (26%), multibrand retail trading (51%), private-sector banking (74%), and a few sectors where foreign ownership is prohibited).