BUSINESS ARTICLE

Chequeless Singapore by 2025: What Businesses Need to Know

Chequeless Singapore by 2025: What Businesses Need to Know

firstpagedigital Business Insights, Share Registry

The way businesses handle corporate payments is set for a major shift. With Singapore phasing out cheque usage by the end of 2025, organisations that still rely on this method, particularly for shareholder dividends, will need to adopt digital alternatives to stay compliant and efficient.

For businesses still issuing physical cheques to shareholders holding physical scrips, this signals a timely opportunity to modernise internal processes and move away from outdated manual systems. Now is the time to explore what transitioning toward a chequeless Singapore will require from your organisation.

Transitioning to a Chequeless Payment System in Singapore

Singapore’s plan to eliminate corporate cheques by 2025 marks a significant step towards greater digitalisation across sectors. Spearheaded by the Monetary Authority of Singapore (MAS) and supported by initiatives such as PayNow and FAST, this shift aims to reduce inefficiencies, reduce costs and enhance security in financial transactions.

The move will impact a wide range of payment processes, including dividend distributions for companies with physical scrip holders, an area often overlooked in modern digital transformation initiatives. These companies typically continue issuing cheques to shareholders, many of whom may reside outside of Singapore or have limited access to local banking services.

Transitioning to a Chequeless Payment System in Singapore

Who does this impact the most?

While scripless shareholders already receive electronic dividend payments via the Central Depository (CDP), physical scrip holders are often excluded in the digital transitions. These shareholders typically receive their dividends by cheque, making them a key stakeholder group in Singapore’s move towards a chequeless future. This countdown to the 2025 deadline creates an urgency for companies still managing manual, cheque-based processes.

Challenges of Cheque-Based Dividend Payments

Despite being a long-standing method, cheque issuance introduces complexities and risks that hinder progress. As Singapore accelerates its efforts to eliminate cheque usage, businesses must assess how such legacy practices may be holding them back from more secure, digital-first operations.

Manual workload and inefficiencies
Issuing dividends by cheque requires multiple administrative touchpoints, from coordinating print runs to managing mail distribution and verifying clearances. These inefficiencies inflate operational costs, and increases the administrative workload of the finance teams.
Inconvenience for global shareholders
Shareholders residing abroad often have to deal with significant delays, additional clearing charges imposed by banks and even failed cheque deliveries. This impacts their experience and also adds pressure on companies to troubleshoot payment issues. Digital payout platforms eliminate these inconveniences by offering real-time confirmation and removing geographic barriers, advantages that cheques simply cannot provide.
Compliance and security concerns
Cheque-based systems offer limited transparency and make it harder to track payment activity in real time. Transitioning to secure electronic payments reduces the likelihood of data exposure while supporting better governance standards.
How Businesses Can Prepare for a Chequeless Future

How Businesses Can Prepare for a Chequeless Future

More than replacing one payment method with another, adapting to a chequeless Singapore is about rethinking processes to drive long-term efficiency. Businesses should take practical steps now to avoid disruptions and ensure continuity for both their internal teams and shareholders.

Identify shareholders still paid by cheque

Review your shareholder records in detail to identify individuals who still hold physical scrips and receive cheque payments. This clarity will help you estimate the lead times and resources needed for a smooth transition and outreach.

Educate and communicate with stakeholders

To avoid confusion, shareholders should be informed early and clearly about the upcoming changes. Consider using multiple touchpoints — emails, mailers, or even webinars — to guide them through the new e-payment process.

Review and upgrade internal systems

Assess whether your finance and registry tools can support secure, automated payments. If not, explore solutions with integrated compliance checks and multi-currency capabilities.

Partner with an experienced share registry provider

Engaging a trusted partner like BoardRoom gives your company access to industry expertise and operational support. Our end-to-end share registry services streamline dividend distribution, ensure data accuracy, and enhance stakeholder communications.

Choose a platform designed for scrip holders

Not all digital payment platforms are built for the complexities of physical scrip holdings. BoardRoom’s Smart Investor Portal (BSIP) is tailored to support scrip-based payouts, helping your company adapt to a chequeless Singapore with minimal disruption.

How BSIP Supports the Shift to Chequeless Payments

BSIP is designed to help companies simplify shareholder payments without overhauling existing systems. For businesses with physical scrip holders, our portal offers a secure, purpose-built platform to help you confidently navigate the transition to a chequeless Singapore while improving the dividend payment experience for both issuers and shareholders.

Seamless global e-payments
Shareholders receive their payments anytime, anywhere, through fast, automated transfers. Payouts are converted into local currencies and credited directly to banks across the globe, eliminating clearance delays and currency-related issues that come with cheques.
24/7 Shareholder Portal access
BSIP offers round-the-clock access to payment records, contact information updates and personalised notifications. This readily-accessible portal enhances transparency and empowers shareholders to manage their information easily.
Faster reconciliation, lower admin burden
Automated tracking and validation allow finance teams to reconcile payments more quickly and accurately. This reduces manual effort, improves reporting accuracy, and frees up the finance teams to focus on other strategic activities.
Built-in security and compliance
With Two-Factor Authentication (2FA) and enterprise-grade encryption, BSIP safeguards sensitive shareholder data while meeting stringent compliance expectations. Companies benefit from consistent, secure processes across all digital transactions.

Getting Ready for a Chequeless Singapore

Singapore’s move to phase out cheques paves the way for smarter, more secure business operations. For companies that still handle physical scrip holders and rely on manual cheque distribution, now is the time to act, not only to comply with upcoming changes but also to strengthen internal efficiency and improve shareholder satisfaction.

By preparing early, businesses can avoid operational bottlenecks, reduce administrative risks, and ensure a smooth transition to fully digital dividend distribution. A proactive approach today will pay off in time saved and trust earned.

BoardRoom is here to support you through every step of this journey. With decades of experience and a trusted track record serving over 80% of large-cap companies listed on the Singapore Exchange (SGX), our BSIP platform is purpose-built to help your business thrive in a chequeless Singapore. If you’re ready to modernise your dividend payments, get in touch with us today.

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