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Legal System of the Singapore's and Legal Information Final Report Legal system of Singapore and Legal Information related to Trade and Investment in Singapore Presented to Office of the Council of State By Thailand Development Research Institute July 2016 Research Team Dr. Boonwara Sumano Chenphuengpawn Project leader Dr. Deunden Nikomborirak Advisor Napanang Ek-Akara Legal specialist Weerawan Paibunjitt-aree Researcher Nisakorn Lertpatcharanun Researcher Siraporn Tooptian Secretary and Coordinator Table of Content Page Table of Content ................................................................................................................... i List of Tables and Figures ................................................................................................. iii Chapter 1 Singapore’s Legal System: An Overview ....................................................... 1-1 1.1 Brief history of Singapore’s law ............................................................................ 1-2 1.2 Legal system ......................................................................................................... 1-9 1.3 Source of Law .....................................................................................................1-13 1.4 Hierarchy of law ..................................................................................................1-15 1.5 Court system and law interpretation ...................................................................1-19 1.6 State of legal enforcement and its complication ................................................1-28 Conclusion.................................................................................................................1-31 Chapter 2 Trade and Investment Laws in Singapore .................................................... 2-1 2.1 Goods and Services Trade Laws ......................................................................... 2-2 2.2 Foreign Investment .............................................................................................2-48 2.3 Immigrant (Immigration and Residency) ............................................................2-65 2.4 Business Laws ....................................................................................................2-84 2.5 Land and Land Utilization Laws ...................................................................... 2-109 2.6 Labour Laws ..................................................................................................... 2-122 2.7 Intellectual Property Laws ................................................................................ 2-135 2.8 Dispute settlement mechanism ....................................................................... 2-147 Conclusion.............................................................................................................. 2-152 i Table of Content Page Chapter 3 State agencies with relevant authority ........................................................... 3-1 3.1 Accounting and Corporate Regulatory Authority (ACRA) .................................... 3-3 3.2 Economic Development Board (EDB) .................................................................. 3-5 3.3 Immigration and Checkpoints Authority (ICA) ...................................................... 3-6 3.4 Infocomm Development Authority of Singapore (IDA) ......................................... 3-7 3.5 Inland Revenue Authority of Singapore (IRAS) .................................................... 3-9 3.6 Intellectual Property Office of Singapore (IPOS) ................................................3-10 3.7 Media Development Authority (MDA) .................................................................3-12 3.8 Ministry of Manpower (MOM)..............................................................................3-13 3.9 Ministry of Trade and Industry Singapore (MTI) .................................................3-15 3.10 Monetary Authority of Singapore (MAS) ...........................................................3-17 3.11 Singapore Customs (SC) ..................................................................................3-18 3.12 Singapore International Arbitration Center (SIAC) ...........................................3-19 3.13 Singapore Land Authority (SLA) .......................................................................3-20 3.14 Urban Redevelopment Authority (URA)............................................................3-22 Conclusion.................................................................................................................3-25 References ....................................................................................................................... R-1 Appendix .......................................................................................................................... A-1 ii List of Tables Table 2.1 Sectors with Most Favoured Nation Treatment Exemptions? .....................2-21 Table 2.2 Sector-Specific Commitments ....................................................................2-22 Table 2.3 Requirements and scope of training for Clinical Fellow and Clinical Observer ........................................................................................2-35 Table 2.4 Employment permits for high-skilled workers and professionals ...............2-73 Table 2.5 S Pass quota and levy requirements ..........................................................2-78 Table 2.6 Work Permit quota and levy requirements .................................................2-78 Table 2.7 Application process for S Pass and WP .....................................................2-80 Table 2.8 Forms of business operation ......................................................................2-85 Table 2.9 Corporate income tax rate in Singapore ....................................................2-92 Table 2.10 Personal income tax rate in Singapore .......................................................2-93 Table 2.11 Rates of GST ...............................................................................................2-95 Table 2.12 Stamp Duties Rates ....................................................................................2-97 Table 2.13 Sectors in ACIA Reservation List ............................................................. 2-107 Table 2.14 Residential Tax Rates in Singapore ......................................................... 2-118 Table 2.15 Example of Non-Owner-Occupied Residential Property tax calculation 2-119 Table 2.16 Payment for work on a rest day ............................................................... 2-125 Table 2.17 Sick leave per year for regular workers ................................................... 2-126 Table 2.18 Patent annual fee rates ............................................................................ 2-139 List of Figures Figure 2.1 Investment Permit Application & Business Registration in Singapore .......2-50 Figure 2.2 Foreign Business Registration in Singapore ..............................................2-88 Figure 2.3 Procedure of patent application through PCT ......................................... 2-138 iii Chapter 1 Singapore’s Legal System: An Overview Singapore or officially known as Republic of Singapore is a city-state, of which geography is an island in the Southeast Asian region. It is located on the southernmost end of the Malay Peninsula, and separated from Malaysia by the Straits of Johor, and from Indonesia by the Straits of Singapore. The geological advantage has helped Singapore to control the maritime route in the Straits of Malacca, which links the Indian Ocean and the South China Sea. This allows Singapore to become the biggest sea port in Southeast Asia.1 Being one of the world’s most important ports but having limited natural resources, Singapore is highly dependent on international trade and investment. This results in relatively liberal trade and business laws which aim to attract foreign investment. The Global Competitiveness Report 2014-2015 prepared by The World Economic Forum ranked Singapore as the second most competitive economy in the world, and the most competitive in Asia.2 Moreover, the World Bank has consecutively endorsed Singapore with the first place, out of 189 countries in total, on ease of doing business index chart in 2013 and 2014.3 Example of trade and investment laws in Singapore that facilitate foreign investment is the Companies Act (Chapter 50). The Act stipulates rules on establishment of companies in Singapore, and is enforced equally to both locals and foreigners. Moreover, foreign investors are not required to joint-venture with the locals in order to establish their businesses in Singapore, except those in five services sectors which are 1 Encyclopaedia Britannica, “Singapore,” http://webcache.googleusercontent.com/search?q=cache:kN439jqgENMJ:www.britannica.com/EBchecked/topic/545 2 Klaus Schwap, ed., The Global Competitiveness Report 2012-2013 (Geneva: World Economic Forum, 2012), 318-19. 3 World Bank, Doing Business 2014 Economy Profile: Singapore: Comparing Business Regulations for Domestic Firms in 189 Economies (Washington, DC: World Bank, 2014), 5. 1-1 The research study on “Legal system of the Singapore’s and Legal Information related to Trade and Investment of the Singapore’s” still regulated by the government namely telecommunication, broadcasting, newspaper and printing, financial services, and legal services related to Singapore’s laws. Apart from having laws that facilitate trade and
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