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CPF Changes Coming on 1 January 2026

Singapore’s updated CPF rules will take effect from 1 January 2026, and employers should prepare ahead to avoid compliance issues and unexpected payroll cost increases. Here are the key updates and what they mean for your business

Key CPF Changes

  • The CPF Ordinary Wage ceiling will increase from S$7,400 to S$8,000, meaning a larger portion of monthly salaries will be subject to CPF.

  • Higher CPF contribution rates for senior workers:

    • Ages 55–60: Total rate increases to 34%

    • Ages 60–65: Total rate increases to 25%

  • Additional contributions for senior workers will be channelled into their Retirement Account (RA) to strengthen long-term retirement adequacy.

What This Means for Your Business

  • Higher manpower costs:
    Employers will incur increased CPF contributions, especially for:

    • Employees aged 55 to 65

    • Staff earning above S$7,400, up to the new S$8,000 ceiling

  • Budget & costing impact:
    Companies should update FY2026 budgets, revise manpower costing, and adjust financial forecasts to account for increased statutory expenses.

  • Payroll system updates:
    HR and payroll systems must be updated to apply:

    • New wage ceiling (S$8,000)

    • New age-based CPF contribution rates

  • Cash flow considerations:
    Monthly CPF outflow will rise, affecting cash management for businesses with senior or higher-paid employees.

  • Communication to staff:
    Senior employees may experience slightly lower take-home pay due to higher employee CPF deductions.

Recommended Action for Employers

  • Review and revise payroll budgets for 2026

  • Update HRIS/payroll systems and CPF calculation templates

  • Perform manpower cost impact analysis

  • Communicate changes to affected employees early

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What Are Scope 1 and Scope 2 Emissions?

As sustainability reporting becomes increasingly central to Singapore’s regulatory landscape, businesses must understand the fundamentals of greenhouse gas (GHG) accounting. Scope 1 and Scope 2 emissions are defined under the GHG Protocol and adopted in ISSB/IFRS S2 Climate-related Disclosures, which guide Singapore’s emerging climate reporting requirements.

Emission Calculation Formula

Greenhouse gas emissions are commonly calculated using:

Emissions (tCO₂e) = Activity Data × Emission Factor × Global Warming Potential (if applicable)

Singapore-aligned emission factors are primarily sourced from:

  • ✔ National Environment Agency (NEA)

  • ✔ IPCC Guidelines (where local factors are unavailable)

Scope 1: Direct Emissions (with Example)

Scope 1 emissions arise from sources that a company owns or directly controls, including:

  • Fuel used in company vehicles

  • Diesel or natural gas burned in generators or boilers

  • Refrigerant leakage from cooling systems

  • Emissions from onsite industrial activities

Example – Company Vehicle Using Diesel

Fuel consumption: 5,000 litres of diesel
Emission factor: 2.68 kg CO₂e per litre

Emissions = 5,000 × 2.68 = 13,400 kg CO₂e
= 13.4 tCO₂e

Scope 2: Indirect Energy Emissions (with Example)

Scope 2 emissions cover indirect GHG emissions from purchased electricity, steam, heating, or cooling. In Singapore, the main component is grid electricity consumption.

Example – Office Electricity Use

Annual electricity consumption: 50,000 kWh
Singapore grid emission factor: 0.408 kg CO₂e per kWh

Emissions = 50,000 × 0.408 = 20,400 kg CO₂e
= 20.4 tCO₂e

Understanding how to classify and calculate Scopes 1 and 2 is essential for compliance, credibility, and effective sustainability management. If your organisation requires guidance in emissions measurement or reporting, our team is ready to support you.

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Singapore’s Evolving ESG and Climate-Reporting Requirements

Singapore is entering a new phase of ESG regulation as it moves towards climate-reporting standards aligned with the ISSB/IFRS framework. The shift aims to enhance transparency, improve comparability, and strengthen market confidence—all essential to supporting sustainable finance.

Current Regime

Singapore is implementing mandatory climate-related disclosures (CRD) in phases, with transitional relief for Scope 3 reporting and external assurance. SGX-listed companies already conduct mandatory sustainability reporting, forming the base for the enhanced ISSB-aligned requirements

What’s Changing

For SGX-listed companies

  • From FY2025: Mandatory ISSB-aligned climate disclosures, including Scope 1 and Scope 2 emissions.

  • From FY2026: Broader ISSB requirements and mandatory Scope 3 reporting for STI companies.

  • By FY2029: External limited assurance required for Scope 1 and Scope 2 emissions.

For large non-listed companies

  • From FY2030: Mandatory ISSB-aligned climate disclosures (Scope 1 and Scope 2) for companies meeting specified size thresholds.

Why It Matters

  • Listed companies: Must upgrade data systems, emissions measurement processes, and governance to meet strengthened disclosure and assurance expectations.

  • Large private companies: Should begin capability-building early to prepare for future mandatory reporting.

  • Investors and lenders: Will benefit from more consistent, comparable, and verifiable climate-related information.

  • Singapore’s broader ecosystem: Gains stronger global alignment and enhanced access to sustainable finance opportunities.

Commercial Impact — Procurement

Environmental performance is increasingly embedded in procurement practices across both public and private sectors.

Examples include:

  • Government procurement allocating up to 5% of tender points to environmental criteria.

  • Changi Airport Group requiring minimum environmental scores for qualification.

  • SMRT applying a 5% sustainability weighting and requiring Scope 3 emissions disclosures from bidders.

Strong ESG performance is becoming directly linked to contract eligibility and competitive advantage.

Conclusion

Singapore’s ESG landscape is evolving quickly, with mandatory climate-related disclosures set to expand across industries. Organisations will need to enhance reporting capabilities, strengthen emissions measurement, and reinforce governance to remain compliant and competitive.

If your organisation requires support with ESG compliance, climate reporting, or tender-readiness, our team is ready to assist at every stage.

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Accounting for Cryptoassets

As cryptoassets become increasingly common in commercial transactions and investment portfolios, companies must understand how to account for them appropriately under Singapore Financial Reporting Standards (International) [SFRS(I)]. Unlike traditional assets, cryptoassets do not fall neatly into existing categories such as cash, cash equivalents, or financial instruments, and therefore require careful classification based on their characteristics and intended use.

Classification of Cryptoassets

Cryptoassets generally fall into four broad categories:

  • Cryptocurrencies – Digital currencies used as a medium of exchange or store of value.

  • Utility Tokens – Tokens granting access to specific services, platforms, or products.

  • Asset Tokens – Tokens representing ownership or rights to underlying physical or financial assets.

  • Security Tokens – Tokens that mirror the economic rights of traditional securities such as equity or debt.

The accounting treatment depends on which category the asset falls into.

Accounting Treatment

Cryptocurrencies

  • If held for trading, they may be classified as inventory under SFRS(I) 2.

  • Otherwise, they typically meet the definition of intangible assets under SFRS(I) 1-38.

Utility Tokens

  • Depending on the holder’s purpose, they may be accounted for as inventory, intangible assets, prepayments, or financial instruments.

Asset Tokens

  • Accounting follows the standard relevant to the underlying asset the token represents.

Security Tokens

  • When they meet the definition of a financial asset, they fall under the scope of SFRS(I) 9 Financial Instruments.

Key Considerations for Businesses

Companies must evaluate cryptoassets based on their substance and economic reality, rather than solely their legal form. This assessment determines whether the asset represents a right to goods, services, cash flows, ownership interests, or simply an intangible digital resource. Because cryptoassets do not fit into one uniform accounting model, professional judgment and consistent application of relevant standards are essential.

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InvoiceNow in Singapore: Simple Compliance When You Have the Right Support

Singapore is moving toward widespread adoption of InvoiceNow, the Peppol-based e-invoicing network that enables faster, more accurate and secure invoicing. While the upcoming requirements may seem daunting, the truth is: with the right support, InvoiceNow implementation can be quick, smooth, and hassle-free.

Our team specialises in helping businesses transition seamlessly, from system setup to GST compliance — so you can stay focused on running your business

Who Must Comply and When? (GST-Related InvoiceNow Requirements)

IRAS has defined specific compliance dates for voluntary GST registrants.

Companies that voluntarily register for GST within 6 months of incorporation

Compliance Date: From 1 November 2025
Newly incorporated companies registering early for GST must adopt InvoiceNow from this date.

All new voluntary GST registrants (regardless of incorporation date)

Compliance Date: From 1 April 2026
Any business voluntarily registering for GST on or after this date must begin issuing and receiving e-invoices through InvoiceNow.

These requirements mean that many new or growing businesses will need to adopt InvoiceNow as part of their GST onboarding process — and we can help ensure that transition is smooth and compliant.

Mandatory Requirement for Government Vendors – Effective 1 November 2025

From 1 November 2025, all new vendors onboarding with Singapore Government agencies must issue e-invoices exclusively through InvoiceNow.

This means:

  • You must be InvoiceNow-ready before contracting with government entities

  • PDF or paper invoices will no longer be accepted

  • Accurate e-invoice transmission becomes essential to avoid payment delays

With our support, we can ensure you meet the requirement well ahead of time.

How We Make InvoiceNow Adoption Easy for Your Business

Implementing InvoiceNow does not need to be complex. We specialise in helping companies of all sizes adopt it smoothly, with minimal disruption.

1. Guided System Setup and Activation

We handle the entire setup process:

  • Checking if your accounting software is InvoiceNow-ready

  • Activating your Peppol connection

  • Configuring your UEN and business profile

  • Ensuring invoices flow correctly into your accounting system

This means you avoid technical issues and enjoy a working solution from the start.

2. End-to-End Outsourced Accounting Support

Our accounting team ensures your operations run seamlessly after adoption:

  • Bookkeeping fully aligned with e-invoice workflows

  • AP/AR monitoring to ensure invoices are correctly sent and received

  • Troubleshooting any integration or data issues

  • Preparing monthly and quarterly reports incorporating InvoiceNow data

We take care of the accounting, so you don’t have to.

3. GST Review and Compliance Assurance

nvoiceNow still requires correct GST reporting — and we help ensure accuracy:

  • Checking GST codes and tax classification within your e-invoices

  • Verifying that your InvoiceNow data meets IRAS standards

  • Conducting periodic GST health checks

  • Supporting you during GST queries or audits

This reduces your compliance risk while maintaining smooth invoicing operations.

Let Us Make Your Digital Transition Seamless

The effective dates for InvoiceNow adoption are approaching — but with our support, implementation becomes easy, structured, and worry-free.

Whether you need help with InvoiceNow setup, outsourced accounting, or GST compliance, we’re here to guide you every step of the way.

Feel free to reach out. We’re ready to support your business through a smooth and successful transition

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How to Close or Restructure a Singapore Company

Companies in Singapore may be wound up, struck off, or restructured depending on their financial situation. Whether your company is dormant, solvent, insolvent, or under creditor pressure, it’s important to understand the appropriate exit or rescue options under Singapore law.

This guide outlines five main options to legally close, restructure, or resolve your company’s affairs:

  • Strike-Off

  • Liquidation

  • Simplified Insolvency Programme (SIP)

  • Judicial Management (JM)

  • Receivership

Strike-Off (Deregistration)

Best for: Dormant companies with no assets or liabilities.

Strike-off is a voluntary process where a company applies to ACRA to be removed from the register.

Eligibility Conditions:

  • No business activity or assets.

  • No outstanding liabilities to IRAS, CPF, ACRA, or others.

  • No existing charges or ongoing legal proceedings.

  • Written consent of all directors.

Process:

  1. Finalise tax clearance with IRAS.

  2. Apply via BizFile+ to ACRA.

  3. ACRA issues a notice in the Gazette (30 days for objections).

  4. If no objections, company is struck off ~4 months from submission.

Cost Estimate:

  • ACRA fee: Free

  • Professional services: S$800 – S$2,000

Voluntary or Compulsory Liquidation

Best for: Companies with assets and liabilities.

There are 2 types:

  • Members’ Voluntary Liquidation (MVL) – company is solvent.

  • Creditors’ Voluntary Liquidation (CVL) – company is insolvent and initiated by directors.

  • Compulsory Liquidation – ordered by the Court upon creditor’s petition.

Steps (MVL):

  1. Declare solvency and pass resolution.

  2. Appoint licensed liquidator.

  3. Realise assets, pay creditors, distribute surplus to shareholders.

  4. Liquidator files final returns and company is dissolved.

Cost Estimate:

  • MVL: S$8,000 – S$20,000+

  • CVL/Compulsory: May exceed S$30,000 depending on complexity.

Simplified Insolvency Programme (SIP)

Best for: Small, insolvent companies with simple affairs.

Introduced during COVID-19, SIP is a fast-track version of liquidation or debt restructuring for qualifying companies.

Eligibility:

  • Company’s total liabilities must not exceed $2 million (including prospective and contingent liabilities)

Two streams:

  • Simplified Winding-Up Programme (SWUP) – lower-cost version of CVL.

  • Simplified Debt Restructuring Programme (SDRP) – similar to scheme of arrangement but streamlined.

Cost Estimate:

  • S$3,000 – S$8,000

Time taken:

  • 9 months

Judicial Management (JM)

Best for: Companies with potential to be saved or restructured.

JM is a court-supervised process where a judicial manager is appointed to take control and attempt to rehabilitate the company.

Who can apply:

  • The company

  • Its creditors

  • Its liquidator (if applicable)

Benefits:

  • Automatic moratorium (legal protection from creditors)

  • Breathing room to restructure debt or find a buyer

  • Judicial manager can terminate unprofitable contracts

Outcome:

  • Company may recover, be sold, or proceed to liquidation if turnaround fails.

Cost Estimate:

  • S$20,000 – S$100,000+ (depends on duration and complexity)

Receivership

Best for: Secured creditors enforcing security.

Receivership occurs when a creditor (usually a bank) appoints a receiver to seize and realise specific assets under a debenture.

Scope:

  • Receiver manages only secured assets (e.g., land, receivables).

  • Directors may retain control over the rest of the company.

Common Scenarios:

  • Default on a loan secured by company assets.

  • Receiver sells business as a going concern or liquidates assets.

Outcome:

  • Often leads to liquidation after enforcement is complete.

Cost Estimate:

  • Depends on value and nature of assets; borne by proceeds of realisation.

Summary of Closure & Insolvency Options

Conclusion

Singapore provides multiple legal avenues to close or restructure a company, tailored to its financial position and future prospects. Whether your company is dormant, struggling, or facing creditor pressure, understanding the available options—from strike-off to judicial management—can help you exit responsibly, protect stakeholders, and avoid future penalties.

Need help choosing the right path? Our team of company secretaries and insolvency professionals can assist with compliance, closure strategy, and stakeholder communication.

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Protecting Your Intellectual Property: Key Lessons from the Louis Vuitton Counterfeit Case

A recent Singapore High Court decision ordering an Instagram seller to pay S$200,000 to Louis Vuitton for infringing its trademarks highlights the serious consequences of IP violations—even by small-scale operators. This case offers important guidance for businesses on how to actively protect their IP assets in a digital, fast-moving marketplace.

Why IP Protection Matters

Infringement not only dilutes brand value but can also mislead consumers, damage reputation, and impact revenue. Ignoring unauthorised use or failing to enforce rights early may weaken legal protection over time.

Step-by-Step Guide: How Companies Can Protect Their IP

Step 1: Register Your IP Rights Early and Broadly

Ensure all key assets—logos, brand names, product designs, slogans, and trade secrets—are registered under the relevant IP categories (e.g. trademarks, designs, patents) in each jurisdiction you operate.

  • Louis Vuitton’s success in court was based on its existing trademark registrations.

  • Registration strengthens your legal position and simplifies enforcement.

Step 2: Monitor Online Platforms Regularly

Use internal teams or third-party services to monitor e-commerce sites, social media platforms, and independent online stores for counterfeit listings or unauthorised brand use.

  • In the Louis Vuitton case, the infringer used Instagram accounts to sell replicas with the company’s branding.

  • Detecting such activities early helps prevent scale-up and public confusion

Step 3: Take Swift Action Upon Discovery

Send cease-and-desist letters as a first response. If ignored or breached, escalate quickly to legal proceedings.

  • The seller in the Louis Vuitton case ignored initial warnings and continued operations under new account names, leading to court action.

  • Delay in response may be interpreted as tolerance or weaken your enforcement credibility.

Step 4: Secure Evidence Properly

Collect hard evidence of the infringement. This may include screenshots, transaction records, covert purchases, and expert assessments of the counterfeit nature of the goods.

  • Louis Vuitton purchased several counterfeit items to present clear, physical evidence in court.

  • Strong evidence supports both damages and injunctive relief.

Step 5: Pursue Legal Action Proportionately

If infringement persists, pursue legal enforcement based on the scale and impact of harm. Ensure damage claims are supported by data.

  • Louis Vuitton originally sought higher damages, but the court reduced it to S$200,000 after assessing actual harm and evidence.

  • Excessive or unsupported claims may be rejected by the courts.

Step 6: Monitor for Repeat Infringement

Even after a judgment or settlement, continue monitoring for the same infringer reappearing under different names or platforms.

  • The seller in the case rebranded after the initial warning and continued operations, which was considered in the court’s ruling.

  • Post-enforcement monitoring is essential to maintain control.

Step 7: Educate Internal Teams and Partners

Ensure marketing, sales, and procurement teams understand the company’s IP rights and know how to identify and escalate potential infringements.

  • Many infringement cases originate from distributors or third-party sellers misusing IP assets.

  • Training internal staff and partners reduces the risk of inadvertent violations.

Conclusion

The Louis Vuitton case is a clear example of the importance of defending intellectual property actively, even against small-scale or digital infringers. A structured, proactive approach—built on early registration, ongoing monitoring, and decisive legal action—can protect brand value and send a strong signal to the market that infringement will not be tolerated.

If your company has IP to protect, now is the time to ensure a system is in place—not just for registration, but for enforcement and long-term brand integrity

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Guide to starting a company in Singapore

Starting a business in Singapore? We’ve got you covered! 🚀

Our team has prepared a comprehensive guide to help future business owners navigate the company incorporation process with ease.

Whether you’re a local entrepreneur or a foreign investor, this guide covers everything you need to know—from business structures and registration to tax compliance and licensing.

✅ Step-by-step incorporation process
✅ Key requirements and compliance obligations
✅ Practical insights for a smooth startup journey

This resource is designed to save you time and ensure a hassle-free experience as you embark on your business journey. Download the guide now and start your business with confidence!

Click to download the guide to doing business in Singapore.

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Extent of Penalty for Non-Compliance and the Importance of Accounting Records

Case: Former CEO, CFO and Independent Directors of Hyflux Ltd charged with offences under the Securities And Futures Act and the Companies Act

The former Chief Executive Officer of Hyflux Ltd (Hyflux), Ms Lum Ooi Lin, its former Chief Financial Officer, Mr Cho Wee Peng, and four independent directors of Hyflux at the material time were charged in court on 17 November 2022 for disclosure-related offences under the Securities and Futures Act (SFA). Ms Lum was further charged with an offence under the Companies Act (CA) for her failure in ensuring Hyflux’s compliance with accounting standards.

Against Lum Ooi Lin:

(a) One count of section 203(2) read with section 331(1) SFA, for consenting to Hyflux’s intentional failure to disclose information relating to the Tuaspring Integrated Water and Power Project (Tuaspring), when such disclosure was required under the Singapore Exchange Listing Rules (Listing Rules);

(b) One count of section 253(1)(b) read with sections 253(4)(b)(i) and 277(3) SFA for Hyflux’s omission to state the same information relating to Tuaspring in the 2011 Offer Information Statement (2011 OIS). The 2011OIS was issued for the offer of S$200 million, 6% preference shares on 13 April 2011; and

(c) One count of section 201(5) read with section 204(1) CA for failing to ensure that Hyflux made disclosures required under the accounting standards for its financial statements for the financial year ended 31 December 2017. This included the failure to disclose the breach of a subsidiary’s loan agreement that permitted its lenders to demand accelerated repayment.

Against Cho Wee Peng:

(a) One count of section 203(2) read with section 331(1) SFA for conniving in Hyflux’s intentional failure to disclose information relating to Tuaspring, when such disclosure was required under the Listing Rules.

Against four Independent Directors of Hyflux, namely Teo Kiang Kok, Gay Chee Chong, Murugasu Christopher and Rajskar Kuppuswami Mitta:

(a) One count each of section 203(2) read with section 331(1) SFA, for their neglect in connection with Hyflux’s intentional failure to disclose information relating to Tuaspring, when such disclosure was required under the Listing Rules; and

(b) One count each of section 253(1)(b) read with sections 253(4)(b)(i) and 277(3) SFA, for Hyflux’s omission to state the same information in the 2011 OIS.

In accordance with Section 199 of the Companies Act 1967, every company must cause to be kept such accounting and other records as will sufficiently explain the transactions and financial position of the company and enable true and fair financial statements and any documents required to be attached thereto to be prepared from time to time, and must cause those records to be kept in such manner as to enable them to be conveniently and properly audited.

If the default is made in complying with this section, the company and every officer of the company who is in default shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months and also to a default penalty.

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Please beware of fake SMS from ‘KSN’

If you have received a suspicious SMS from an overseas number claiming to be from a recruitment agency, please be aware that it is not from us.

Police reports have been made against the following:

  • janetchong@ksn.com.sg (Report Number: G/20221111/7033)
  • huizhen@gmail.com.sg (Report Number: G/20221111/7035)
  • +1 (501) 386-5664 (Report Number: G/20221122/7058)