March 2021 Issue 14 Fidinam Group Worldwide Newsletter Singapore Budget 2021 “Emerging Stronger Together” Introducing Fidinam Cfo Services In Asia Pacific Newsletter: Australian Commercial Property Market Newsletter number 14 - March 2021 IN THIS ISSUE p.3 Editorial p.4 Singapore Budget 2021 “Emerging Stronger Together” p.8 Introducing Fidinam Cfo Services In Asia Pacific p.10 Newsletter: Australian Commercial Property Market p.13 Crypto as an asset class for Corporate Treasury Revenue Recognition of “Virtual p.16 Items” - Best Practice of Hong Kong Mobile Game Companies p.18 Economic substance requirements in U.A.E. Fidinam (Hong Kong) Limited 10th Anniversary! Dear Clients, Dear Partners, Dear Colleagues, today we mark an extraordinary milestone within our Group and we celebrate the 10th Anniversary of Fidinam Hong Kong. I take this occasion to thank you all for these 10 years spent together. To our customers who have trusted us throughout the years: it has been an honour and a privilege to work with you helping to achieve and exceed your objectives. To our partners for key collaboration: you have played an essential role in helping both Fidinam Hong Kong and our clients reaching their goals. Last but not least, to our colleagues, for their rentless effort and for their standout professionalism that lead us today here, an will take us further beyond. 10 Years 26 33 5 Employees in Average age of Nationalities of our Team our Team our Team 8 41 23 Languages Jurisdictions where Jurisdictions spoken by our our Clients come served by our Team from Corporate Services We look forward ahead other decades of success, bright future and innovation. With sincere gratitude, Mr. Paolo Balen Chairman Newsletter number 14 - March 2021 3 SINGAPORE BUDGET 2021 “EMERGING STRONGER TOGETHER” Deputy Prime Minister Heng Swee Keat help tide businesses over this difficult mounted as a whole-of-government delivered the 2021 Budget on Tuesday period, and most importantly, keep the response, has helped avoid a worse 16 February 2021. The Singapore population safe. recession, avert job losses, and mitigate Budget is prepared for each financial Singapore faced the worst recession inequality. year, which begins on 1 April and ends since our independence. on 31 March the following year. Every a. The pandemic-triggered recession The goal of the budget 2021 is to build a Budget builds on the foundations laid has hit both demand and supply stronger Singapore: by earlier Budgets, charting a long term simultaneously. 1. That is economically vibrant, so to strategic financial plan for Singapore, b. Singapore’s GDP contracted by create good jobs for Singaporeans and the budget 2021 makes no 5.4% in 2020. and foreigners and opportunities exception. c. The overall budget deficit for for businesses; The “Emerging Stronger Together” Financial Year 2020 is also 2. That is socially cohesive, with budget unveiled measures to strengthen the largest since Singapore’s a strong social compact and the backbone of Singapore’s ecosystem independence, at $64.9 billion, or community spirit; and provide ammunition to overcome 13.9% of GDP. 3. That is a welcoming home, green the difficult situation propelled by the Despite the situation, the Ministry of and sustainable for generations to COVID-19 pandemic. Finance recently released an interim come; and Last year, the Singapore Government assessment of the COVID-19 Budget 4. That has the fiscal and social committed nearly $100 billion through measures. The combination of fiscal, reserves to enable continued five Budgets to support Singaporeans, monetary, and transitional measures, stability and progress. Newsletter number 14 - March 2021 4 COVID-19 Resilience Package In the recently announced Budge, as retail, arts and culture, food The Ministry of Finance has announced the MoF has committed to continue services, and built environment, that Singapore has set aside $11 billion to provide the JSS targeted towards that are currently receiving 30% for a COVID-19 Resilience Package. sectors that continue to be hard hit. JSS support, will receive 10% for This Package will have three prongs: The JSS will be therefore extended three months, covering wages paid 1. First, to address the immediate for firms in Tier 1 and 2 sectors by up up from April to June 2021. needs to safeguard public health to six months, covering wages paid up 3. For firms in Tier 3A sectors, JSS and re-open safely; to September 2021. This will provide will continue covering wages up 2. Second, to support workers and continued support for businesses to March 2021, as previously businesses where needed; and and workers in sectors that continue announced. Overall, businesses 3. Third, to target support for sectors to be hard-hit amidst the protracted in these sectors are generally that are still under stress. economic downturn: recovering. The second and most business-related 1. For firms in Tier 1 sectors – prong of the Package is to continue aviation, aerospace, and tourism. The third prong of the COVID-19 support for workers and businesses Firms in these sectors will receive Resilience Package is to provide more where needed. So far, Singapore has 30% support for wages paid from targeted support for the worst-hit committed over $25 billion to the Jobs April to June 2021, and 10% sectors, which continue to be adversely Support Scheme (JSS) – introduced in support for wages paid from July affected in 2021. They will need help the 2020 Budget – and supported over to September 2021. to maintain capabilities and eventually 150,000 employers for up to 17 months. 2. For firms in Tier 2 sectors, such recover. The Government has forecasted Newsletter number 14 - March 2021 5 a cost of $ 870 million to support the by the Budget 2021, particularly in 2019 and 2020 was further raised aviation sector and $133 million for the interesting is the new Emerging from the current 15% and 10%, land transport sector. Technology Programme. This will to 20% and 15% respectively. encourage more mature enterprises, The qualifying gross wage ceiling was Support to innovation from micro and small, to medium and also raised from $4,000 to $5,000 In the newly released budget it large enterprises, to invest in new and for both years. was confirmed that Singapore will emerging technologies to sharpen their enhance several packages to support competitiveness. In the Budget 2021, the Scheme capability development and sector has been further extended by one transformation, to encourage the The new Emerging Technology year to 2021, with the government community to deepen skills, go digital, Programme will co-fund the costs co-funding ratio remaining at 15% and transform business models. of trials and adoption of frontier and the qualifying gross wage ceiling One of the main pillars of the new technologies like 5G, artificial at $5,000. Gross monthly wage budget is to grow a vibrant business intelligence and trust technologies. increases (at least $50) previously community, with a strong spirit of This will support commercialisation of given in 2019 and 2020 by the same innovation and enterprise, deeply innovations and diffusion of technology employer will continue to be co- connected with the ASEAN region. downstream. funded if they are sustained in 2020 To support Singapore businesses to and 2021. innovate and grow, the Government will Human Capital invest in three key platforms. As the employment landscape is Lastly, the budget 2021 has 1. The first platform is the undergoing fundamental changes, the introduced the provision to reduce the Corporate Venture Launchpad, Singapore government has launched Manufacturing S Pass Sub-Dependency which will be piloted this year to several initiatives, the most important Ratio Ceiling, or sub-DRC, in two steps, drive new innovative ventures. being the Jobs Growth Incentive and to 18% from 1 January 2022, and to This Launchpad will provide co- the Wage Credit Scheme. 15% from 1 January 2023. funding for corporates to build new The Jobs Growth Incentive (or JGI) ventures through pre-qualified supports employers to accelerate Singapore Green Plan 2030 venture studios. their hiring of local workers between The last section of the budget is 2. The second platform is the Open September 2020 to September focused on the Singapore Green Plan Innovation Platform, or OIP. 2021 (inclusive), to create good, 2030. The OIP facilitates the matching long-term jobs for locals. If the This is an ambitious long-term of problems faced by companies Qualifying Criteria for the Firms plan that builds on ongoing efforts, and public agencies, with are met - employers must have an to secure a green, liveable, and solution providers, and co-funds overall increase in local headcount sustainable home for generations prototyping and deployment. and increase in locals earning of at of Singaporeans to come. The main 3. The third platform enhanced is the least $1,400 per month, compared to measures introduced are: Global Innovation Alliance, or GIA. their local workforce in the baseline • To continue supporting technology month – for non-mature local hires adoption in the agri-food sector, The GIA serves to catalyse there is an incentive 25% on first the MoF has set aside $60 million cross-border collaboration $5,000 of gross monthly wages for for a new Agri-Food Cluster between Singapore and major up to 12 months. Transformation Fund. innovation hubs globally. • To catalyse partnership between The GIA network currently has 15 city The current budget has extended the public and private sectors, the links, including four Southeast Asian the Wage Credit Scheme (WCS) Singapore government will fund cities – Bangkok, Ho Chi Minh City, introduced the first time in Budget $30 million over the next five years Jakarta, and Manila. I will expand 2013 and already extended in the for EV-related initiatives.