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Expanding into Southeast Asia while navigating policy complexities and achieving precise market entry has become a core concern for many Chinese enterprises pursuing globalization. On October 31, SIG Global successfully hosted the online seminar “Exploring Singapore & Malaysia: Anchoring the Future”, focusing on real-world business challenges. Here, we’ve compiled the most representative Q&As from the session — to help your overseas journey be smoother and more efficient.

Q: How can a Singapore company deal with employee quota restrictions?
Companies can flexibly manage this by raising salaries for key positions, increasing local employment ratios, or setting up affiliated entities to distribute the quota. These measures help meet local manpower requirements while optimizing team structure and employee retention.

Q: If we apply for an Employment Pass (EP), can our children attend school there?
Yes. The spouse and children of an EP holder can apply for a Dependent’s Pass (DP). Children on a DP can attend private or international schools in Singapore after passing the admission assessment — without needing a separate student visa. DP holders also generally enjoy higher priority during school admissions, providing families with greater flexibility in educational planning.

Q: If our goods don’t pass through Malaysia, is it still meaningful to set up a trade company there?
If the goods do not physically pass through Malaysia, establishing a local trading entity may offer limited benefits. Singapore, with its lower corporate tax rate (17%), is often a better choice as a hub for re-export and sales operations. Moreover, certain industries in Singapore may enjoy specific tax incentives, further improving operational efficiency and cost optimization.

Q: Can we conduct processing or manufacturing operations in Singapore?
Traditional processing or manufacturing is not recommended due to Singapore’s high production costs. A more viable approach is adopting a “Singapore headquarters + Southeast Asia manufacturing” model — maintaining strategic control and brand management at HQ, while achieving cost and operational efficiency through regional production bases.

Q: I heard that opening a corporate bank account in Singapore is difficult. What should companies prepare for?
Indeed, Singaporean banks have tightened compliance reviews under stricter anti–money laundering (AML) and substance requirements. Foreign companies should prepare:

• Complete company registration documents,
• Shareholder and beneficiary information,
• A detailed business plan, and
• A clear statement of fund sources.

Banks typically assess a company’s actual business activities, main clients, and transaction pathways to ensure compliance and sustainability.

To streamline this process, SIG Global partners with multiple local banks to offer pre–application document reviews, process guidance, and bank matchmaking, helping clients open accounts efficiently and begin operations promptly.

Q: Our Singapore company was set up via ODI (Outbound Direct Investment). If we now want to acquire a company in Vietnam or invest in Thailand, do we need to reapply for ODI approval? What if the investment is structured as a loan?
If the Singapore entity uses its own profits for overseas acquisition, no new ODI approval is required. However, if mainland funds are transferred abroad for this purpose, a new ODI filing must be submitted.
Using a loan structure for investment carries compliance risks, as the flow and use of funds must align with the approved ODI scope. Any deviation could lead to regulatory issues.

A forward-looking compliance framework is the cornerstone of successful overseas expansion. The Q&A session revealed that companies are most concerned about employment policy, investment compliance, taxation, and operational structuring when establishing themselves in Southeast Asia.

SIG Global reminds enterprises: a holistic strategy is essential. By planning manpower, investment, and tax structures in advance, companies can mitigate risks, optimize costs, and achieve sustainable global growth.