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Should I Hire Overseas Returnees?

by Mighty Glory Corporate Solutions | 25 Oct 2019 | Business Tips, Case Studies

According to Hays, about 85% of employers in Singapore say that they are willing to hire overseas returnees in the coming years. Also, 90% of employers recommend to their peers that they should employ overseas returnees. Why such a high number, and what can you expect when you hire one for your company?

WHAT IS AN OVERSEAS RETURNEE?

If a Singaporean who lived and studied abroad, then decides to return to Singapore and stay for good, that person can be considered as an overseas returnee. Some overseas returnees are children whose parents in Singapore sent them overseas to study abroad. As international students, they are exposed to different levels of education and cultural awareness compared to their Singaporean counterparts. Someone is also considered as an overseas returnee if he or she has worked outside of Singapore for several years. The person may have been assigned by their company to work in an international division. However, some were lucky and bold enough to look for a job overseas and successfully gain employment. According to Hays, about 86% of Singaporeans show interest in extending their job search overseas. Due to the economic decline of superpowers such as the US, UK, and Australia, Singaporeans realize that better opportunities now await them at home. As a result, there are more overseas returnees compared to the past years. This influx is seen as an opportunity by companies to improve their capabilities and business functions.

BENEFITS OF HIRING OVERSEAS RETURNEES

Many employers find great success in hiring overseas returnees, and many of them have got a good experience in working with their returnee. There are many reasons behind the benefits of getting a skilled worker who has worked or studied aboard and will be a company’s advantage. Both returnees and employers have the same views on the benefits that local experience of the former can bring to the table.

REALISTIC SALARY EXPECTATIONS

Unlike overseas returnees in China, Singaporean returnees have realistic salary expectations. Although they do have excellent skillsets, Singaporean overseas returnees are least expectant, followed closely by mainland China.

Although about 45% of returnees are open to having the same salary as they have while they are employed overseas, only about 34% are expecting an equivalent pay. This is much higher compared to those who are returnees from Hong Kong, with about 61% are looking for a higher salary. As for Singaporean returnees, only 32% are looking for higher pay.

The remuneration package is competitive. There are employers who are willing to pay returnees with premium salaries that will match the returnee skillset. Based on the report, about 44% of employers are willing to pay overseas returnees higher salary packages, as compared to their local peers. 28%, on the other hand, are more than willing to give “up to 10% more.”

OVERSEAS COMMERCIAL EXPERIENCE

What returnees have over their local counterparts is their overseas commercial experience. About 62% of employers hire returnees because of the knowledge which they have acquired that one cannot expect to find in Singapore.

Commercial experience increases a person’s ability to view situations based on a business perspective. Increased commercial awareness arms a candidate with the tools needed to understand what drives a business to success. Such experience becomes valuable as the career progresses.

HIGH SKILL-SET

Most overseas returnees, as close as 63% hold bachelor degrees, while a good 24% hold master degrees. This high skill-set makes overseas returnees highly attractive for those who are looking to hire someone who can bring more value to the table.

CROSS-CULTURAL AWARENESS

Because of the difference in cultural exposure, 64% of the companies surveyed voted to hire overseas returnees because of their “different perspectives on business.” Their knowledge can potentially improve existing business processes, providing better overall business value. With the advent of globalization, many first have high regard over the solid mix of international experience and local cultural understanding that overseas returnees have.

According to Lundbeck, who hired overseas returnees, having experience working abroad, these employees usually prove to be strong in their cultural awareness, adaptability, and willingness to learn and are generally go-getters.

LANGUAGE AND COMMUNICATION SKILLS

Overseas returnees have better language and communication skills. Working for a foreign-owned enterprise allows returnees to exercise their English language fluency daily. It is easier for companies to have communication with foreign business partners and such credit goes to returnees’ grasp. Their exposure in different cultures also gives them the confidence to communicate better without the cultural barrier. They will help you penetrate the global market.

ISSUES WITH OVERSEAS RETURNEE WORK POOL

Still, although an overseas returnee is highly sought-after by most employers, there are some hurdles that you will find when you hire one.

LACK OF LOCAL WORK EXPERIENCE

Their understanding of foreign business practices comes with a price. Because of your overseas returnee’s years of isolation from Singapore, he or she will have a hard time understanding the local work practices. About 36% of employers are facing such an issue of their talent difficulty in adapting to local cultural nuances and corporate processes. Overseas returnees should research their home countries’ corporate culture and identify any distinct or essential customs that are observed in a day-to-day business setting. This would enable their transition to their jobs back home an easier one. They should also understand the company and industry for which they will be working and relate how their past working experience or education could value-add to the business.

A MISMATCH IN EXPECTATIONS OF OFFER PACKAGES

Although previously stated that there are overseas returnees who have the least expectations when it comes to salary packages, there are about 32% of them who will expect an increased salary compared to what they are earning abroad. Overseas returnees believe that there are a lot of things they can offer to the companies in their home country because of their global experiences. While there are some companies that are willing to offer higher salary packages, the packages still depend on the skill-set of the returnee and the employer’s budget.

WHY DO THE RETURNEES RETURN

There are many reasons why there is an increasing rate of overseas returnees in Singapore

Being closer to their families – this is most especially true for children, who are sent abroad to study. A good majority of returnees, about 45%, feel the need to return home to take care of their family. Most returnees think that taking care of their parents is one of the duties that they must fulfill as a part of the Confucian’s filial piety teachings. Children are expected to take care of their aging parents as well. Failure to go back to one’s home country for them means that they have neglected their duty to their own family.

Opportunity to develop their careers – This is particularly especially true in popular destinations for Singaporean migration, such as Australia, UK, and the US where work visas and immigration rules are tightened, and the economy of superpower decline. Due to the increasing strictness and shortage of career opportunities abroad, many are now realizing that better jobs are waiting for them at home. When the recession hit the economy, most of the returnees were forced to either receive lower salaries or take jobs that are not paying that well. Change in the government also helped them realize that there are better opportunities back home.

Culture or lifestyle ties in Singapore–this is true for most who grow up in Singapore and find a longing to be part of their home once again. Most of the returnees would like to continue enjoying their lifestyle in their home country. Most returnees would like to experience once again the familiar vibes that their own country has to offer. Although it is easier to live in other parts of the world now because you can have access to whatever you would need in another country, nothing would still beat the sense of comfort their home country could offer. Singapore talents living abroad are drawn to what it can offer, such as low crime rates, relative cleanliness, proximity to loved ones and a keen sense of familiarity in lifestyle and culture.

GETTING THE RIGHT MATCH

Most companies often rely on recruiters to find the ideal and suitable overseas returnee to hire. The mismatch in platforms where employers and overseas returnees go to present a problem in getting the right candidate for the right job. About 37% of the candidates use a recruiter to seek employment, with about approximately 32% using search engines like Google or Yahoo to look for opportunities.

ARE YOU AN OVERSEAS RETURNEE?

Mighty Glory Corporate Solutions is very glad to assist on your financial planning and individual income tax reporting. Our goal is to assist you with professional, efficient, and affordable services that will aid you on your return.

ARE YOU TRYING TO HIRE AN OVERSEAS RETURNEE?

We offer a wide variety of accounting services such as setting up and implementation, accounting and GST Return. Contact us now to know more about how Mighty Glory can help with your business.

Foreign Domestic Worker (FDW) Levy Concession

by Mighty Glory Corporate Solutions | 30 Sep 2019 | News, Taxation

Businesses in Singapore are required to adhere to accounting regulations set by ASC or the Accounting Standards Council. Compliance with accounting standards is important to ensure transparency and reliability of a business’ financial information. Transparency and reliability of financial information enable comparability of global financial data and smooth functioning of international capital markets. The increasing number of businesses in Singapore is another compelling reason for entities to adhere to a uniform financial standard. As a business, it can be time-consuming, exhausting and even downright intimidating, to maintain your seemingly infinite financial records. Hiring an accounting firm is one of the best ways to manage your business’ financial data. With a reputed accounting service provider, you will have an expert to take care of the financial aspects of your business. You can focus more on your core business knowing that your financial matters will be taken care of duly in compliance with the law. An accounting firm will also ensure a robust accounting system, which will give you a reliable and actionable financial base to make business decisions.

Expertise of an accounting firm is the key to your business success

With Mighty Glory Corporate Solutions, you get a wide range of accounting services delivered by a team with substantial industry experience. We offer a deposit-free accounting service with complete client confidentiality and a transparent fee structure. If you are in search of a professional accounting firm, then you may want to explore the services such firms offer. Here are some types of services that an accounting firm usually offers business: Singapore citizens, needing domestic care, can get support from Singapore government through the foreign domestic worker (FDW) levy concession. FDW employers who meet the criteria can qualify for a S$60 monthly concessionary rate.

The following are the employer qualifications for the FDW levy concession:

One has to be a Singapore citizen.
Living with a child under 16 years old.
Living with an elderly person 67 years old and above.
Living with a person with disability (PWD) who needs help with at least one daily living activity such as showering, dressing, feeding, or toileting.

Applications for the FDW levy concession must be submitted by qualified individuals. If you have a minor or elderly relative or family member and is qualified for the levy concession, you can follow this link to apply online. The application for FDW levy concession for a PWD is coursed through the Agency for Integrated Care (AIC). Please follow this link for your PWD application. Please collect the information of the employer, foreign domestic worker and the eligible person (i.e. the person who needs care) to complete the form and application. No application is necessary if you need the foreign domestic worker for your care or your child’s. If you or your spouse is a Singapore citizen, the levy concession will automatically start on your 67th birthday or upon your child’s birth and will continue until his or her 16th birthday provided that he or she is a Singapore citizen, or on the date your child is granted the Singapore citizenship. The FDW levy concession is granted for one FDW per eligible person, with a maximum of two FDW per household. The monthly concessionary rate can be as much as S$120 for FDWs hired to care for an eligible person who needs permanent assistant on at least three daily living activities.

Conclusion

Effective 1 September 2019, the FDW levy concession coverage will include employers needing domestic care for an extended family member or a friend living with them, provided the eligible person is a Singapore citizen, as opposed to the previous limitations of the levy to immediate family members. All existing qualifications applied to immediate family members will also apply to the expanded FDW levy concessions. Connect with us today to discuss more on the other personal tax reliefs and how we can incorporate them to your personal individual income tax. We look forward to helping you identify your business and personal needs and provide you with efficient and holistic solutions.

Introduction And Impact Of SORA On Corporate Borrowers

by Mighty Glory Corporate Solutions | 24 Sep 2019 | Finance, News

On August 30, The Monetary Authority of Singapore (MAS) announced the transition of the interest rate benchmark from SOR to SORA. The USD reliant Swap Offer Rate (SOR) will cease to be relevant upon the imminent discontinuation of the USD Libor or the London Inter-bank Offered Rate. The Association of Banks in Singapore (ABS) and the Singapore Foreign Exchange Market Committee (ABS-SFEMC) studied several replacement options and concluded on the viability of SORA.

What is SORA?

The Singapore Overnight Rate Average (SORA) is an interest rate benchmark pegged on actual transactions. It is the weighted average rate of all overnight cash transactions brokered in Singapore from 9:00 am to 6:15 pm and is published daily on the MAS website at about 6:30 pm.

Why is there a need to transition?

The UK regulatory authorities recently announced the discontinuance of the USD Libor by the end of 2021. This will take away one of the major inputs in the computation of SOR. The volume-weighted average forex rate of USD and SGD is another SOR factor that is looked into as extraneous and causes extreme volatility of rates.

Are there any options aside from adopting SORA?

Aside from adopting SORA, ABS-SFEMC is also looking into two other options – reforming SOR and enhancing SIBOR. Reforming SOR would mean replacing USD Libor with another component. In the US, the Alternative Reference Rate Committee (AARC), endorsed the recommended alternative, the Secured Overnight Financing Rate (SOFR). The SOFR is published by the Federal Reserve Bank of New York at about 8:00 am and is the overnight measure of the cost of borrowing money. However, producing forward-looking benchmarks using SOFR is too complex. Furthermore, SOFR is not intended for the derivatives market and is not expected to be in use until late 2021.

Enhancing the SIBOR is looked into as another option to SOR. The SIBOR (Singapore Interbank Offered Rate) reflects the rate at which banks are willing to lend and is already in use in various financial products, but not on derivatives. However, due to the structural shifts in banks’ sources of funding and derivatives markets towards overnight interest rates benchmark referencing, this option proves to be unsustainable.

Why is SORA the recommended option?

SORA is liquid and deeply reflects the daily trends and conditions of the SGD money markets. Using SORA as a benchmark is aligned with global trends and the transition will result in significant synergies in the global trading capabilities of derivatives. This will put the SGD market ahead in the global trends, encourage and apply best practices and keep domestic derivatives competitive and attractive in the global markets. Daily SORA has been published by the MAS since July 2005, providing accurate data for historical analyses on prices, risks, and market trends.

What happens to legacy SOR contracts?

Existing SOR contracts which will expire after 2021 will remain as is for now. However, expect your bank to notify you regarding the transition in due time. They will provide alternative loan packages that will replace the current SOR-referenced contract to be applied to its remaining term.

How will the transition impact corporate borrowers?

The transition from SOR to SORA is deemed favorable to corporate borrowers. The elimination of the USD/SGD forex factor in the interest rate computation will hugely improve the volatility of rates. The compounded 6-month SORA is more stable and lower than SIBOR, SOR and other benchmarks.

There will be no immediate impact before the end of 2021 and existing SOR referenced contracts will remain as is. MAS and ABS-SFEMC are keeping close tabs on the transition process, making sure the market functions continuously, with the least disruption and hassle to end-users as possible.

Ample communication and public information dissemination will be in place, while banks will be required to provide their clients with enough time, information, and guidance on loan restructuring and contract switching as necessary. Corporate service providers in Singapore such as accounting firms and business outsourcing firms will also be on hand to assist their clients in a smooth transition.

Connect with Mighty Glory today to know more about the transition and to discuss your financial contracts and options. We look forward to helping you with your business needs and in meeting your company compliance requirements in Singapore by providing you with the efficient and holistic solutions.

How To Choose A Suitable Accounting Software For Your Business?

by Mighty Glory Corporate Solutions | 16 Sep 2019 | Accounting, Business Tips

It is necessary to have accounting software to monitor the cash movement and financial health of your business. The application of choice will ultimately help you manage projects and monitor bills. However, choosing the right accounting software can be challenging. Different software offers different features and specifications at different prices. Here are the three basic things to keep in mind when choosing an effective accounting software.

Usability: The number of users involved will affect your choice of an accounting software. Usability also includes the preferred access to the system – from anywhere or from desktop only. The option of having an additional mobile app to facilitate use or access to real-time information should also be considered.
Cost: It is a trade between advanced features and cost-efficiency. You have the option to get either basic inexpensive or advanced and dynamic accounting software. The more sophisticated software will offer more features, great support and better usability, which will also cost more.
Features: The more advanced software offers more features, while the basic software generally provides the minimum applications and features. Your choice will depend on how and what applications you need for your company. What reports do you need the software to generate? Do you want to have both account payable and receivable tools?

Support and Accessibility

To choose the best software for your company, its intended use should be carefully considered. How, when, what and where? Here are some important factors to consider:

Multiple business support: A software that can support multiple small businesses under one account is convenient and cost-effective too. Otherwise, the handling of several different accounts can be complicated and costly.
Multiple user access: How many users need or have access to the business accounts? Yourself, your partner, bookkeeper, procurement managers, sales managers and more. An accounting software that allows multiple users to access with different permission rights is ideal. Some systems provide this function at no additional cost.
Cloud software and mobile access: A cloud accounting software will let you access the accounts anytime from anywhere, provided that you have a computer and active internet connection. This allows you to run the business from home or on vacations.

Are you familiar with Million Accounting System? Check out this article, The 5 Advantages of Using Million Accounting System for SME’s in Singapore.

After a choice is taken, necessary set-up must be properly completed so that the product can function, as mentioned by the vendor. Feel free to contact Mighty Glory for a meeting in person (free of charge) so that we can understand your expectation(s) or requirement(s) to assist further.

Eight Ways Technological Innovations Changed Small And Medium Business Accounting

by Mighty Glory Corporate Solutions | 2 Sep 2019 | Bookkeeping, Business Tips

The forward-thinking accounting firms in Singapore advocate cloud computing and the use of an accounting software. The benefits of using a software ideal for the needs of the company far exceed the costs and temporary disruption it might cause. The migration of files, adaption of the new system, recruitment of the right people and installation of the applications could be a hassle. But you also have the option not to go through all these! They can be delegated to the experts in the accounting firms in Singapore.

Here are eight of the top changes and benefits brought about by technological advancements to small and medium business organizations:

1. The Paperless Office

Modern business technologies shrunk the office spaces. We no longer need the bulky filing drawers, the stacks of office documents, and most of the quintessential office equipment like fax machines and photocopiers. The use of paper has gone down to the minimum. The modern and more environmental-friendly office setup only needs computers, internet connection, desks and chairs. Thus, offices are more space-efficient, clutter-free, and productive.

2. Cloud Processing

Instead of the extensive office filing and storage system that includes filing cabinets, drawers, paper files, and complex access and safekeeping management, we now have cloud computing. This is the digitized equivalent of the paper-based filing system. All office files, documents, and reports are digitized and uploaded to a central server where access is efficiently managed and security is optimized through an off-site storage facility.

3. Real-Time Postings

Cloud computing and the use of accounting software can provide real-time updates and reports. As most accounting software can now be integrated with bank accounts, payroll and productivity software, billing, and collection, users can generate financial reports that are updated and accurate. Updated reports and financial statements can be generated whenever required, any day of the year. This leads to better decision-making, forecasting and auditing processes.

4. Work Anywhere

The most significant change in business technology has impacted how we work today is the freedom to choose how, when, and where we work. Connectivity and accessibility enable us to work anywhere and anytime we prefer. Through cloud computing, work files can be accessed and shared from anywhere around the world. Thus, you can still check on your company numbers while on vacation, during your commute, or from home.

5. Simplified Work

Most accounting software, used by outsourcing firms in Singapore, already features integration with other business accounts like bank accounts, payroll features, billing and collection functions, and even inventory. Any updates are automatically posted, and the system is updated real-time. Thus, reporting is streamlined, accuracy and correctness are guaranteed, and staffing need is reduced.

6. Enhanced Securities

One key element of cloud computing is its off-site, third-party storage facility. This removes the physical files from your office and care. Everything is stored in the clouds, where access can be restricted, and file management is easily regulated by passwords and permissions. With the sophisticated security protocols in place, file loss due to thief, fire, and unauthorized access are prevented.

7. Cost Efficiency

Accounting services in Singapore are at the most affordable today. Business innovations and technological advancements allow small and medium enterprises to enjoy the best and expert services from accredited corporate service providers in Singapore. Whereas before where you need to buy the entire software, build your technical infrastructure and hire professionals, the company only needs a stable internet connection, subscribes to an accounting app service, and assign an external accounting firm to do the work.

8. Effective Delegation

The latest state-of-the-art business apps and platforms enable businesses to efficiently delegate tasks, reduce the worry. This allows the busy startup entrepreneur to focus on growing his or her company, or the team to concentrate on innovations and creative endeavors. Why go through accounting books when you can hire the best corporate service provider in Singapore? Learn more about cloud computing – its benefits, challenges, risks and your options. Choosing the right software for your business is key to a successful migration to the clouds.

Today, let’s fix a date with us to have an initial meeting. We are very glad to help you in identifying a suitable cloud computing system that will best fit your business needs.

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