Singapore - types of work permits

Being in Singapore for long term requires to have a proper work permit. The work permits are linked to your employer up to the moment you receive PEP - personalised employment pass. The big differences to common EP (employment pass) are:
a) PEP is usually for 3 years, EP for 2 years
b) PEP allows you to work for few companies in the same time. EP not. Idea behind it is the option for the hodling companies to employ specialists within the similar scope of work within groups or companies.
c) PEP is not linked to your employer or yo your position. Therefore you will no expose your work position or name of the company you work for
d) PEP, once upgraded from EP keeps its number, therefore one problem less
e) PEP is also allowing you to be unemployed for the period up to 6 months. EP does not and you have leave Singapore within 1 month since your relationship with current employer is terminated.

Next level to PEP is PR (permanent residentship). There are also investors visa available once invested over 3 MM SGD.

Type of entities in Singapore

Singapore - measuring risks on retail side

To issue credit card or small loan allows the economy to grow, as it gives more and more money for people to spend before they earn it. If the average spening of the month is 1000 units, than with a credit card with a limit of 3000 can the consumer purchase additional 3000 units of service, goods or have additional savings.

Empowering the consumer with this ability is adding various components together:
a) how much is the seller able to pay for his potential customer being able to pay for service or goods (2%, 3% or 10% UPF)
b) how much is the consumer able to pay for this ability to spend banks money (27% p.a.? INT)
c) what is the risk the customer will not be able to pay for his obligation (NPL)
d) what is the financial institution paying to distribution of the financial product (SERVICE)
e) what is the cost of money financial institution pays for its resources (COF)
f) what is the expectation of the shareholder fir the return on investment (ROI)

Than it counts as:

UPF% + INT% = NPL% + SERVICE% + COF% + ROI%

If we wish to set INT as low as possible we need to work with other variables.

UPF% could be increased as long as the seller understands the significance of the whole statement. It could come to the point, where the seller is giving the whole advantage to consumer and therefore no need to pay any interest at all. I am afraid that 10% would need to be communicated properly + it shall not be limited by any regulation, as recently in EU it is

NPL% to influence is important to issue credit cards with sense. Seeking the lowest risk customers is not a solution, as this people usually doesnt need credit cards or if so they are not willing to contribute to income. Usually a consumer structure with higher risk, but not too risky is the best to aim. They will be able to spend the money and see the advantage in additional spending. And also they will have ability to pay the interest and later instalment back. Also low NPL allows customers to pay lower rates.

SERVICE% is currently a challenge, as bank employees earning low salaries are no willing to work. Also the effectively of the bank is hit, as the process is slow and takes too long. This is why FinTech ia jumping in, to allow people to get closer to financial institutions

COF% is now very low and in many banks close to 0%

ROI% as long as COF% is close to 0% is also minimal.

Therefore

INT% = NPL% + SERVICE% - UPF%

Once we decrease SERVICE% and NPL% we get very low UPF% and therefore absolute WIN / WIN situation

Singapore - hard to fail

Singapore financial setup is inspiring & challenging. Therefore to fail in the environment will give you, in time, more and more questions if there were no other way to keep it little longer.

Usually the answer lies very close, over the corner u can not yet see. If you are seeking ti raise the equity, manage your cash flow, get your deposits, protect your FX position or even educate yourself, you might be on right place.

Singapore - Financial news

Finding an investor in Singapore is possible trough one big socializing application. It is really long process, as you need to prepare whole pitch, company information, pictures of your colleagues, idea of the company, introduction and also to be clear of the usage of the resources.

Singapore - advisory servise to shares issue

Issuing of the shares in Singapore is comes with:
a) no face value parity
b) preferencial shares to be treatet differently than common shares
c) different types of shares couls be treated differently
d) convertible shares to be redeemable
e) convertinble notes without option to be redeemable
f) shares dilution
g) dividend challenge on tax side
h) interest challenge

The most important is to answer yourself:
1. Do we or do we not want the investor to be our shareholder?
2. Do we want our investor to have voting rights?
3. Do we want the investor to be easy replaceable by different cash?
4. Do we want to give to investor interest or divident?
......

Singapore - one headquarter

It is nice to see how much did Singapore become important for Indian & Chinese community. It is impossible to meet a lawyer, advisor or financial company that is not based on both.

In essence they are very clever and focus people. Everyday challenge and motivation doesnt allow to speak in business Hindi or Mandarin. Clients come and go. And all of them speak English.

Therefore struring a financial transaction is much easier. People are open even to your limited knowledge. The most important is "stupidy test" in the beggining. Be prepared to pass it, otherwise u will have a wierd lok and good bye.

Sometimes it is people in SG, that are too much focused on their own piece of pie and therefore can not see other usage of the same tool.

Singapore & ASIA

Seeking for an investor in Singapore you need to:
a) establish company in Singapore
b) get it on a track, get one employee at least, pay for office
c) connect your group to SG entity
d) get the data from your branches around the region to be able to present to investor and your financial guy to understand what is he talking about
e) prepare an Investors Pitch....how to do that google it, a good sample is a free materials by Dragon law company
f) prepare 2-3 forecast
e) describe the product & see the advantages against competition
f) post your investors pitch on a relevant webpages -  like angels.co....
g) visit few investor pitching activities
h) go to accelerator if you need so
i) prepare to understand what is the value of the company....focus on future flow of money and discount it (f.e. 20% a year)
j) depending the value of the company you did calculate propose the share of company to be sold....  f.e. u calculate future amount of money as to be inflow of  20, 25, 30 and than forever 35 u will see the value of the company as 20/1,2 + 25/1,2^2 + 30/1,2^3 + 30/(1,2-1) = 201,3. You need f.e. 40 additional money to make this cash flow. Therefore you offer 20% of the company
k) seek the potential investors on a paid pitching meetings

Singapore - CFO position

Being in Singapore may be more about holding risks of different countries than really caring 100% about Singapore only. It is a safe haven where u can close the door, have a nice food and focus on what u feel is good to decrease risks.

Talking of China to make anything possible to use proper mandarin words and talk to people that have done something similar there. Protect your position and mainly no to throw money inside. Just keep the money home and family safe :)

Talking of India get a great contact and nurture them. There are nice people there, very clever and quick. It is not so easy to find and it is worth to talk to them. India is a continent itself. And therefore it is full of different countries and success stories.

Indonesia is a great one. So many layers of doing what you need. Such a need not to be seen if you can not afford to be seen. Close to Singapore and far away. Being international company & understanding to what extend it is worth it.

I it is a privilege & challenge. Not to be 100% correct. Just to be 1% better than last visit :)

SG-US and election in United states

"Election in United states on 8th of November 2016 (Tuesday) will not be a catastrophe nor a think that will inmediately increase the price of bread": my opinion. "It will not effecting us inmediately in normal life change the way we already see and will see the American economy in medium term and therefore change the life of real people in medium term too." The most dangerous about this is a time lag between cause and effect. It is like an invasion of Russian soldiers to Crimea. No effect on Russians inmediately, but now after 2 years we sense normal Russian people are suffering. And I am brave enough to say it is 50% caused by the invasion. (Suffering I define as a difference between a life style before and after invasion, on behalf my epirical research in Russia and analysing Russian data).

My prediction, in this moment is following:

It will be rather good for US and world if Trump wins in long term(4-..). I predict his win.

In short term (0-0.5 year) it is without dramatic influence. In medium term (0.5-4 years)

I expect:
Short term:
Trump will analyse the problems with his business thinking. Will try to be on as many meetings as possible and listen and understand. He will ask a few people to leave within his circle inmediately. Especially people appear to be dummy on a first sight. People not being able to asnwer a simple question. And of course people he can allow to fire. That will, to certain point, be a suprise. But not a big game changer. He will also seek for a people on his side. I am afraid his team is not too strong now.

Medium term:
It will be seen the change of the game in US. There is a risk of Dallas 1960's. Chinese economy in fall, USD controlling exchange rate and keeping it low. Unemployment rate up, especially from former government employees. Normal business people maybe poorer in comparison with the world, but with more jobs. Stronger export of less sophisticated services/goods. Stronger police control within US. More volatility on market, less spending and therefore slowing internetional economy.

Long term:
Allies more focusing on covering their costs on the protection/army. Russia knowing his borders and getting out of Ukraine, but staying in Crimea. China loosing position in the region and globally.   US stronger. Euro to US attacking 1,2 with additional pressure on south nations like Greece.

SG attracting investors

Many of the companies would like to get to Singapore or start their business in Singapore as they seek for funding. There is now the bug amount of opportunities for such seekers. It will incure some cost to stay in Singapore for 6 month to get the real feeling of the market, so u need to be ready to finance that. We talk about 30.000 SGD plus (20.000 EUR).

Startup to small company - accelerators...seek an oportunity there

SME - lawyers, private equity companies, venture capitalists

Large corporates - funds, banks.

Important is to prepare financial numbers and introduction of your business. Financial numbers need to focus on one simple thing, especially for SME, startup and small companies. How will you generate sales. Forget now on the focus on the costs. Tell the people how will u generate sales.

SG - finance and banking

Banking in Singapore for foreigners works much harder than you would expect. If you have experience from Hong Kong for example you would be surprised by amount of data bank would like like to gather. Additionally the big surprise is once you provide all the information bank will probably get lost in it and disapprove your application. Just for the sake of complexity. That is really against all what I did go trough once I was a banker. I was always interested to know as much as possible about my client and once the client did dare to share I did feel comfortable and was keen to make business. Regulation nowadays did get just to the point, where truth is much less desirable than simple solution. Just for sake of we have done what regulation did ask us to be done. Banks are, therefore, very weak. They open enormous space for shadow banking, for the same banks not following all the regulation. As it is getting to the point where deposit on account has negative interest rate but to open bank account is super hard. How u can do business that way?

SG - suspicion on investor

It is possible, that once you try to raise up cash for your company you will meet a suspicious case. Something like "send me 10% upfront and than I will send you my investment to your company". And also something like "do it quickly". Even company could be registered only for few months and proclaiming it has hundreds of millions on account and there will be no problem for that company to invest. That all is a red flag. You need to sense, that there is much better way to invest money for anybody, than send it randomly to any company it meets. Is there a way to protect ourself agains such a threats? I believe it is. Firstly calm down. Get a nice walk, read the things you got over emails you got, communication you did hold.

If you feel you would like to proceed start to use your friends, bank, embassy, even hire a company to do due diligence or investigation.

Once there is something super easy, just send me 10% I will send you my money it is a red flag!

SG - social networking

Social networking in SG is pretty exciting. U may forget about meeting other people to discuss weather or find talk about travelling. I am afraid that travelling is no normal here, that nobody considers it as something special. Only if you have special, exciting memories. If you did nice deal, wanna invest in new country.

What kind of deals?

Wanna buy a bank in Cambodia?
How to get banking licence?
What is normal NPL to achieve?
How to decrease or hedge the risks?
What markets grow or fall?
Why people need money and what they do with it?

Exciting moments I can say ....

Singapore - what do u need money for

In this short article I would like to explain the idea of the need of the money in the company and the way you shall be asking for it. Ocasionally it might be used vice versa, but it doesnt break the main principle.

1. I need money for anything I store, I keep to sell within one year or do not really touch before I sell it. It is considered as a short term asset, or opposite to liability. As a liability is a foreign debt I did no pay yet due to the payment terms you may also consider short term asset to be an foreign asset I hold as I did not sell iz yet.

For this purpose we seek a working capital financing. Or working investment. It is an amount of money company needs to cover its short term assets before they are sold.

Do not seek for a investment financing or IPO for such an purpose. Why?
a) the risk is calculated diffetently in the financing institution
b) money are much more short term
c) usually it is not comnected with the growth of your company to new locations

2. Company needs money to open new branch, reconstruct current building, buy a new technology that will be used in production, cell phones for the managemenet, cars....

Than seek for the investment financing, IPO, ....

This money is for much longer period and the current and projected profit is the main principle to provide the cash. Profit is meant the cash flow generated from profit. Usually it is an accounting profit together with interest expenses other than once connected with working capital plus depreciation, as it is a non cash flow operation in Profit and Loss statemenet. If there are extraordinary items happening theese items shall be withdrwawn too.

What is the main objective of this simple article?

Currently I mezlt investors that were pushing our company to isse shares and go IPO or even sell a part of company for our working capital. That is really an expensive solution, as working capital is just an issue of deffered payment for the asset I hold for certain time on stock and the time I need to pay for such a stock. Very expensive way of financinf of company would thetefore investment financing be.

SINGAPORE - Personal account for foreigners

In Singapore is important:
1. KYC. Know your customer. I would like to advise you to meet with advisor to discuss this topic once you are not professional. It will be another sign you understand Singapore
2. "Not too small to go". Limit is around 350.000 SGD to put on account
3. Give it time. It make take up to week or two.
4. Prepare and ask. Do not go to the bank unprepared.
5. Understand the fee structure.
6. Be careful of your passport. You dont need to work in SG to have account there.

Singapore - shop experience

To compare the experience in a shop between countries may be a clue to compare between service on a financial products.

They say, the good way to test the service is to purchase anything in the shop and than try to change it. You will sense the difference once you dont bring any additional income to the shop, just a headache. Goods u try to return is usually opened and therefore it needs to repacked. Also you need to be sure, that this time you pick up a proper goods you want to change. And also you may buy something cheaper, just as u changed your mind.

Singapore outcome test 1 shopping mall Jurong east. Change the goods no problem on a cashier. Person sick, she can not have holiday, but still friendly and helpful. Staff on a customer service very helpful and professional. Staff on a goods section apologies, that they dont have the colour you want. And then she helps u with the other colour. If you good is cheaper than before you need to select additional staff to make up the difference.

A believe approach in financial products will be the same. People work more than they should (cashier), smiling and professional (customer service) but strict on the acceptable rules (money back limits).

SINGAPORE - webpage desing

To open a proper webpage is something to considered deeply. Especially for a new companies on a market (not necessary new companies internationally) and specially for financial institutions. Things you shall be avoiding:

1. "Low risk, high return" statements. It sounds more like a miracle and the big guys a self-centered so much, that they would believe if there will be such an opportunity they would have find it. And invested in it. Also in developed economies, places where is a lot of official money, is high return a red flag

Singapore - Consumer risk managemenet

Once measuring the risk of the consumer I always want to focus on following:
1. What i the real truth.... not what somebody tells me or somebody can fake
2. Once anything is faked what is faked and what is the pattern of it
3. Look on the real/described data in the region

For the real truth in the consumer risk business in finances I seek the flow, cash flow as the truth. It is a combination of having ablitity to pay and willingness to pay. It seems like once there is ability the willingness is 100%. That is proven to be wrong and it is usual, that rich people pay its debts latest and always look for the way to avoid paying them.

Also no ability to pay doesnt mean no willingness or even no payment at all. I consider, that every living person does generate. If it is a small cash flow, small flow of other services and goods. Connect to the flow and the willingness will transfer to ability and than to solution.

SINGAPORE - financial company principle

Being in Singapore as financial company is expecting you to be conservative. Reason for being so is the amount of cash to such projects (incoming). Once we consider the volatility of the company together with future cash flow it will be always preferred to seek a stable year per year cash flow. Every time you exceed the profit by 5% and than later u keep the profit on previous amount it will be foreseen the decline of the profit in next years. Only if you are able to increase the profit by 5% every year that formula will be followed. Therefore, before spending too much time on a artistic financial planning keep your data, webpage for investors, financials stable and try to find the answer on the future problem before the problem happens. Cash flow problem happens. It might be a good idea to separate risky project to new company or deal with the additional cash flow need by payment terms of suppliers. Keeping stable, keeping foreseen is always a sign of management.

Building a webpage
Building a webpage for your investors is an amazing example of that. No fancy adds, no crazy moving pictures, half naked women. You may keep that for customers. Investors deal with cash and everything trying to distract them will be kept as a bad sign. Telling, that u want to hide something, or even worse, wasting the resources on contra productive action. If you are not sure of the numbers it will be better not to show the number. Or just describe them as the numbers changing in time. Try to focus on BEPs, so called points of chance. Where my profit will become negative, what is the main value to influence cash flow, why my plan for future is to grow, what is it dependant on. You would need to use Excel. Use it wisely to find key points. And than you will, on your own, see the future challenges.

Amount of data on webpage
Webpage for investors has to be factual. Numbers need to correspond to each other. Be careful of changing one table but leaving old data in text. Provide Assets, Liabilities, Profit and Loss. Add cash flow. Use percentages to influence the outcome. Use year to year comparison to see the trends. Use deltas to see absolute value. And use nice, soft colors. This is not a flower shop to collect all the colours. The main idea is to be correct and simple to observe.