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Game-Changer: Stronger Economic Ties for Malaysia & Singapore with Special Economic Zone

Game-Changer: Stronger Economic Ties for Malaysia & Singapore with Special Economic Zone

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Game-Changer: Stronger Economic Ties for Malaysia & Singapore with Special Economic Zone

Welcome to the Year of the Snake, a year that symbolises dynamic transformation, adaptability and strategic growth. We look forward to working closely with you to navigate the evolving economic landscape and embrace the innovative advancements in the Year of Snake!

We’re happy to kick off 2025 with the first issue of Asia Tax Insights featuring a transformative economic opportunity: the Johor-Singapore Special Economic Zone (JS-SEZ).

This game-changing initiative elevates economic connectivity between Malaysia and Singapore, opening the door to fresh possibilities in cross-border trade, investment, and innovation. With its robust tax incentives, cutting-edge infrastructure, and strengthened collaboration between the two nations, the JS-SEZ is poised to become a dynamic engine for economic growth in Southeast Asia.

Take an in-depth look at the establishment of the JS-SEZ to uncover its vast potential benefits for businesses and how it can provide a road map for companies to seize this exciting opportunity across Malaysia, Singapore, and beyond – all this and more in our report.

 
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Role of the Corporate Secretary in Navigating the Corporate Governance Regulatory Framework

Role of the Corporate Secretary

Role of the Corporate Secretary in Navigating the Corporate Governance Regulatory Framework

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Corporate governance serves as the foundation for business integrity and long-term sustainability, guiding companies to operate with transparency, accountability and ethically.

In Singapore, regulatory changes, in tandem with evolving global challenges have shaped a governance framework that prioritises robust oversight and ethical conduct. Singapore’s corporate governance framework is built on key principles aimed at improving corporate transparency, accountability and board effectiveness. The Code of Corporate Governance, introduced in 2001 and last updated in 2018, has been regularly updated to ensure that businesses operating in Singapore do so beyond global best practices.

The changes in corporate governance introduced in recent years highlight the country’s unwavering commitment to maintaining a fair and transparent corporate environment.

Businesses must adapt to these changes to remain competitive and uphold strong reputations. Being proactive about the updates not only ensures companies remain compliant with regulations but also positions them for long-term success in an increasingly competitive market.

In this guide, we explore the recent changes in corporate governance and offer practical insights to help businesses navigate these developments effectively.

Key Updates and Changes in Corporate Governance

Since the last update of the Code of Corporate Governance in 2018, Singapore has introduced several key reforms to align with global best practices, says Ngiam May Ling, Associate Director of Corporate Secretarial at BoardRoom Group. These updates emphasise board independence, transparency, risk management and sustainability, reflecting the nation’s commitment to maintaining robust corporate governance standards.

Here are the key changes in corporate governance:

Strengthened Board Composition

Businesses must ensure that at least a third of their board members are independent directors to reduce conflicts of interest and foster objective decision-making. If the chair isn’t independent, at least half of the board must consist of independent directors.

Enhanced Transparency

New requirements now require improved financial reporting and disclosure practices. This includes mandatory reporting on directors’ and executives’ remuneration policies, ensuring that compensation aligns with the company’s long-term goals.

Enhanced Board Diversity

Businesses must disclose their board diversity policies and offer measurable goals to achieve them. This diversity must be reflected in gender, experience and skills. These measures encourage varied perspectives and improve board effectiveness.

Increased Focus on ESG Reporting

Starting in 2022, companies listed on the Singapore Stock Exchange must include climate-related disclosures that align with the Task Force on Climate-Related Financial Disclosures. Boards are expected to oversee sustainability initiatives and incorporate ESG considerations into company strategies.

Mandatory Training for New Directors

New directors must undergo training to stay informed about evolving governance standards, regulatory requirements and industry-specific risks. All board members are also encouraged to engage in ongoing professional development.

Strengthened Risk Management

There is a new emphasis on cybersecurity and data protection. Boards must ensure that their businesses have robust risk management frameworks and are ready to handle security threats and privacy concerns.

These updates ensure that Singapore’s corporate governance framework remains forward-thinking and globally competitive. By embracing these changes, businesses can foster trust among investors and stakeholders, enhancing their reputation and operational resilience.

ole of the Corporate Secretary in Navigating the Corporate Governance Regulatory Framework

How to Navigate Changes in Corporate Governance

The robust corporate governance rules strengthen transparency, accountability and sustainability practices, but the complexities of the rules are challenging for businesses to navigate.

Key Challenges and Implications for Business

May Ling identifies three key challenges businesses face when meeting the framework requirements:

   Interpretation and Implementation Challenges

Businesses may struggle with understanding the regulatory language. This could lead to a misinterpretation or a delay in implementation, resulting in non-compliance. As May Ling explains, “The laws may be subject to more than one interpretation, and the implementation of new regulations can pose challenges.”


   Increased Cost

Meeting governance requirements often requires hiring specialised ESG or risk management professionals, which can strain budgets, especially for small and medium enterprises. “The cost of complying can become burdensome because, a lot of the time, companies don’t have huge budgets for compliance matters,” says May Ling.


   Demand for Skilled Talent

Companies must hire or upskill staff to manage new reporting requirements, particularly in areas like sustainability and cybersecurity.


Practical Steps to Adapt

Businesses can adopt the following strategies to avoid these challenges and ensure the successful development of a corporate governance framework.

   Establish a Monitoring Process

Hiring a dedicated compliance officer or engaging external advisors can help businesses stay updated on regulatory changes. Consultation papers and regulator-issued updates also help prepare businesses for upcoming requirements.


   Develop Robust Policies and Frameworks

Create clear policies for ESG reporting and risk management with measurable goals and accountability mechanisms. Implement a structured compliance framework to ensure adherence to governance standards.


   Invest in Training

Organise regular training programmes for board members and management to keep them informed of the latest governance standards and practices. Equip teams with the skills needed to handle evolving regulatory demands.


   Engage Corporate Governance Specialists

Partner with firms like BoardRoom to gain access to expert guidance on navigating compliance complexities and aligning with best practices. BoardRoom can provide specialised advisory services for ESG, risk management and other critical governance areas.


   Promote Transparency with Stakeholders

Communicate compliance strategies and actions openly with shareholders to build trust and reinforce governance credibility. Encourage stakeholder feedback to align governance initiatives with broader expectations.

Adapting to the development of corporate governance rules requires a proactive approach and a commitment to continuous improvement. By taking these steps, companies can ensure compliance, mitigate risks and enhance their reputation for good governance. BoardRoom’s team of specialists will help businesses meet these challenges and drive long-term success.


Ken says that outsourcing can significantly reduce the administrative burden on in-house teams, allowing financial institutions to focus on their core business activities. He highlights the importance of conducting a thorough needs assessment, selecting a reliable provider and establishing a clear communication plan.

The Role of Outsourced Corporate Governance Advisory Services

Outsourcing corporate governance services has become a strategic advantage in today’s complex business environment. Partnering with specialists ensures access to the latest expertise in navigating regulatory changes and implementing corporate governance best practices.

This is especially critical for ESG compliance, where evolving frameworks and mandatory reporting can overwhelm in-house teams. Outsourcing not only alleviates the burden of staying current with regulations but also provides access to skilled professionals who can streamline compliance, mitigate risks and enhance governance efficiency.

“We have a very formidable bench of corporate governance specialists at BoardRoom,” says May Ling. “We keep abreast of the latest changes, and we have regular dialogues with the regulators.

“We reach out to them when we wish to seek their views on how best to interpret and implement a rule. We are also able to tailor our service to best suit clients’ needs, and we develop robust and relevant training programmes as part of our corporate secretarial services.”

The BoardRoom team’s depth and breadth of knowledge honed from years of practical and theoretic experience enable them to truly understand how regulators operate and what industry best practices are.

Embracing Corporate Governance Changes for Long-Term Success

Staying nimble and adaptable to changes in corporate governance is not just a regulatory obligation; it’s an opportunity to build a more resilient, transparent and sustainable business. Staying up-to-date with evolving standards, such as enhanced ESG reporting, stricter board independence criteria and improved risk management practices, is essential for maintaining compliance, fostering stakeholder trust and securing long-term success.

Navigating these complexities can be challenging, but businesses don’t have to do it alone. With deep expertise and a proven track record, BoardRoom’s specialist corporate governance services can help your organisation stay ahead of regulatory changes and implement best practices effectively. Contact BoardRoom today to ensure your corporate governance framework supports your growth and strengthens your competitive edge.

Contact BoardRoom for more information:

Ngiam May Ling

Ngiam May Ling

Associate Director of Corporate Secretarial

E: [email protected]

T: +65 6536 5355

Related Business Insights

New Bursa Malaysia Amendments: Key Updates on Securities Issuance, Executive Pay & More

New Bursa Malaysia Amendments: Key Updates on Securities Issuance, Executive Pay & More

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Bursa Malaysia Securities Berhad (“Bursa Malaysia”) has rolled out pivotal amendments to the Main and ACE Market Listing Requirements (LR) that will transform how companies approach securities issuance, executive remuneration, and transparency in financial reporting. 

These changes, effective from January 2025, aim to:
  • enhance governance
  • ensure greater accountability, and 
  • provide clearer insights for investors
Whether you're involved in fundraising activities, managing employee share schemes, or overseeing corporate disclosures, these updates are crucial for staying compliant and competitive. Discover the key amendments that could impact your organisation and learn how to navigate these new requirements effectively.

Key Amendments

  1. Transparency on new issue of securities

    •    Placement Exercise
    In relation to issuance of placement of securities in stages, announcement by listed issuer simultaneous with the quarterly report on a quarterly basis on:

    a) in respect of each staggered issuance:

    i. the price-fixing date and issuance date;

    ii. the number of securities issued and allotted;

    iii. the issue price and basis of determining the issue price; and 

    b) the aggregate number of securities issued and allotted pursuant to the placement at the end of each quarter.

    •    Placees Details
    The relevant adviser of the listed issuer/ listed corporation is required to submit the following additional information to the Exchange:

    a) the source of funds for the payment of the securities placed to each placee; and

    b) the names, home or business addresses, identity card/ passport/ company registration numbers, occupations/ principal activities and securities account numbers of the ultimate beneficial owner of the securities placed to each placee, if any.

    • Additional disclosures on the utilisation of proceeds

    a) in the case of a new issue of securities for fund-raising purposes, a listed issuer/ listed corporation must announce the status and details relating to utilisation of proceeds on a quarterly basis, simultaneously with the announcement of its quarterly report, until it has announced full utilisation of the proceeds raised; and

    b) the announcement made must include the following information:

    ​​​​i. details of the projects, initiatives or purposes funded by the proceeds, together with their status or progress; and

    ii. the unutilised proceeds, if any, including how the listed issuer has dealt with such proceeds pending utilisation.

  2.  Employee Share Scheme Framework

    • Flexibility accorded to the listed issuer/ listed corporation to implement more than one Share Issuance Scheme. However, total number of shares granted under all Employee Share Schemes is limited to 15% (30% under Ace Market) of total no. of issued shares.

    • Disclosure of Employee Share Scheme in annual report has been enhanced to include aggregate options/shares granted, exercised, vested/remained outstanding, exercise price or purchase price, based on categories of participants.
     

  3. Remuneration Disclosure

    • Enhanced remuneration disclosures in annual reports for Chief Executives, on a named basis.
     

  4.  Convertible Debt Securities

    • Extending 50% limit to convertible debt securities.
     

  5. Restriction in Interim Corporate Proposals

    • Disallowing an affected listed issuer and a PN17 Issuer/ GN3 Company from undertaking interim corporate proposals pending regularisation of its condition, unless allowed by the Exchange.
     

  6. Chain Listing Requirements

    • Adherence to chain listing requirements if a listed issuer wishes to list its subsidiaries on a foreign stock exchange.
     

  7. Special Auditor Appointment

    • Requirements relating to appointment of a special auditor.
     

  8. Comparative Disclosure for Plantation and Timber Corporations (Main Market only)

    • Comparative disclosure of production figures for plantation and timber corporations on quarterly basis, in addition to monthly basis.
     

  9. Updated Issuers Communication Note No. 1/2023 - Guidance on Conflict of Interest (“COI”)

    • Bursa Malaysia has updated the Guidance on COI by providing Q&A in Annexure 1.

Implementation

No.

Amendments

Implementation Dates

a.

Placement Exercises/New Issue of Securities

2 January 2025

b.

Share Grant Schemes

2 January 2025

c.

Convertible Debt Securities

2 January 2025

d.

Annual Reports Disclosures

Applicable to annual reports issued for financial year ending on or after 31 December 2024 onwards

e.

Comparative disclosure for plantation and timber corporations on quarterly basis (Main Market only).

Applicable to quarterly reports issued for financial period ending on or after 31 December 2024 onwards
 

f.

All other amendments

2 January 2025 onwards

                
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All rights reserved.
Our mailing address is: [email protected]

Case Study: Streamlining Cross-border Payroll Solutions for Malaysia’s Manufacturing Sector

Case Study: Streamlining Cross-border Payroll Solutions for Malaysia’s Manufacturing Sector

Case Study: Streamlining Cross-border Payroll Solutions for Malaysia’s Manufacturing Sector

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Client Profile

BoardRoom Malaysia’s client is a multinational corporation operating in the Asia-Pacific region, specialising in the development, production, and sale of ingredients for fragrance, flavouring, food, cosmetics, and other functional products. With a diverse portfolio serving over 6,000 customers in 150 countries, the client has established a significant presence in multiple markets, including Singapore, Malaysia, Thailand, Indonesia, Philippines, and Vietnam.

To support its regional growth and enhance operational efficiency, the client required a unified cross-border payroll solution for its workforce in Asia, spread across seven countries. Given the complexities of managing a large-scale, multi-country operation, they sought a single point of contact for their payroll and HR needs, allowing seamless integration across jurisdictions and aligning with their strategic business priorities.

Challenges with Previous Vendor

The client, a prominent leader in the manufacturing sector with operations spanning multiple Southeast Asian countries, faced significant issues with their previous payroll provider.

These challenges hindered efficient payroll processing and HR management, causing operational setbacks:

Error-Prone Payroll System
The former vendor’s payroll system struggled with inaccuracies, often resulting in delayed or incorrect payments. Given the large number of employees across several countries, these errors significantly affected employee satisfaction and complicated payroll reconciliation.
Lack of a Centralised Point of Contact
High turnover among the vendor’s personnel made it difficult for the client to maintain consistent communication. The absence of a dedicated regional engagement manager meant that local payroll regulations were not always understood or adhered to promptly.
Poor Integration with Attendance Systems
In manufacturing, accurate attendance tracking is essential for payroll accuracy. The client’s previous system could not integrate with their existing attendance software, leading to manual data entry, increased chances of errors, and inefficiencies in payroll processing.

These challenges highlighted the client’s need for a reliable payroll partner who could provide a seamless, efficient, and compliant payroll process capable of addressing both their operational complexities and multi-country requirements.
Challenges with Previous Vendor

BoardRoom Malaysia’s 2-Step Payroll Solution Approach

To address the client’s needs, BoardRoom Malaysia adopted a two-step approach, combining payroll expertise with an integrated HRMS platform to deliver comprehensive payroll solutions. This strategy is designed to simplify complex payroll processes and enhance overall efficiency.

Payroll Expertise & Dedicated Engagement Manager

BoardRoom Malaysia leveraged its extensive cross-border payroll expertise, offering a deep understanding of regulations across multiple countries. A dedicated engagement manager was appointed as the single point of contact for all payroll-related matters across the client’s seven locations in Asia. This ensured:

  • Efficient Communication: The client could now navigate payroll processes smoothly, resolving issues quickly through a single point of contact.
  • Informed Compliance: With a regional specialist overseeing payroll, the client was assured of adherence to each country’s specific payroll regulations, reducing compliance risks.

Integrated Cloud-based HRMS Platform – Ignite

Recognising that the client’s payroll and attendance systems required seamless integration, BoardRoom implemented its cloud-based HRMS platform, Ignite. The multi-country payroll system provided:

  • Seamless Attendance Integration: Ignite’s time and attendance module integrated directly with the client’s clocking system, automating data transfer and eliminating manual input. The automation of attendance tracking not only improved accuracy but also sped up payroll processing.
  • Centralised Payroll Access Across Multiple Countries: The client could manage multi-country payroll operations across all their Asian countries from one platform, streamlining their administrative workload and improving overall payroll efficiency.

Through these two key capabilities, BoardRoom Malaysia offered the client a robust and reliable cross-border payroll solution that addressed their immediate needs while also enhancing the client’s ability to manage a multi-country workforce effectively.

Dedicated Engagement Manager

Results and Recommendations

The implementation of BoardRoom’s cross-border payroll solutions led to notable improvements for the client, driving efficiency and supporting smoother HR operations, such as:

Enhanced Accuracy and Timeliness
Automating attendance data integration into payroll significantly reduced errors, ensuring employees received accurate and timely payments.
Streamlined Communication and Quick Issue Resolution
The dedicated Engagement Manager allowed for direct and efficient communication, fostering rapid issue resolution and adherence to country-specific compliance requirements.
Improved Operational Efficiency
A unified multi-country payroll and attendance system enabled the client to achieve a more streamlined payroll process, reducing administrative overhead and enabling HR teams to focus on strategic business priorities.

The client’s successful transition to BoardRoom Malaysia’s payroll system demonstrates the impact that a well-integrated and reliable solution can have on a manufacturing company’s HR processes. With BoardRoom’s support, the client could efficiently navigate the complexities of cross-border payroll across multiple jurisdictions, enhancing overall business operations.

In the context of the Malaysian manufacturing sector, this case reinforces the importance of seamless payroll management to support business growth. For an in-depth look at payroll strategies within the manufacturing industry, BoardRoom’s article on mastering payroll in the manufacturing industry offers further insights into advanced solutions for managing a global workforce. Companies seeking tailored payroll expertise can also explore BoardRoom’s payroll services in Malaysia.

About BoardRoom

BoardRoom Malaysia’s commitment to providing customised payroll solutions has become a driving force for its clients, where the company’s services offer seamless integration with existing systems, greater accuracy, and comprehensive HR operational support. With their ability to understand industry-specific needs and deliver solutions that enhance business efficiency, BoardRoom continues to be a trusted partner for payroll outsourcing services and the leading provider of multi-country HRMS solutions in Malaysia.

Related Case Studies

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Navigating Tax & Accounting Changes with Confidence: Reflecting on 2024 & Preparing for 2025

Navigating Tax & Accounting Changes with Confidence: Reflecting on 2024 & Preparing for 2025

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Navigating Tax & Accounting Changes with Confidence: Reflecting on 2024 & Preparing for 2025

As we approach the festive season and the end of a dynamic 2024, we are pleased to share our year-end newsletter that highlights key tax and accounting developments from 2024, while providing practical insights to help businesses navigate the evolving landscape in 2025 with confidence. From global tax reforms to digital compliance initiatives, the past year has been marked by significant shifts, presenting both challenges and opportunities.

The key Tax and Accounting highlights include:

  • Adhering to OECD Pillar Two and updated transfer pricing guidelines
  • Navigating global VAT compliance and maximising tax credits
  • Embracing automation in accounting for efficiency and accuracy
  • Preparing for year-end audits and ensuring XBRL compliance


As we enter the festive season, we would like to take this opportunity to wish you a Merry Christmas and a Happy New Year. May the year ahead bring you growth, success and the confidence to navigate the opportunities and challenges 2025 holds.

 
DOWNLOAD REPORT
 

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Copyright © 2024 Boardroom Pte Ltd.
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Our mailing address is: [email protected]

 

2024 Singapore AGM Insights Report

2024 Singapore AGM Insights Report

2024 Singapore AGM Insights Report

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Unlock Exclusive Insights into Singapore’s Annual General Meetings (AGMs)

The 2024 AGM season marks a shift back to face-to-face engagement, with companies actively reconnecting with shareholders in person. Hybrid meeting formats are also gaining traction, providing flexibility for both in-person and virtual attendance, while digital tools continue to enhance shareholder participation. Regulatory bodies like Singapore Exchange Regulation (SGX RegCo) remain focused on making AGMs more accessible and engaging.

Our in-depth report, based on data from 179 AGM proceedings during the peak April season, offers critical insights supported by statistics. Discover the latest developments in meeting formats, attendance, voting trends, and the methods companies are using to boost shareholder communication.

2024 Singapore AGM Insights Report

Key Takeaways:

  • Avoid Peak Dates: With many AGMs scheduled in the last week of April, companies can improve attendance by choosing less popular dates or adopting hybrid formats to accommodate more shareholders.
  • Consider Shareholder Demographics: When distributing meeting materials, tailor the methods to suit the preferences of different age groups – physical copies for older shareholders and electronic versions for younger, tech-savvy ones.
  • Enhance Q&A Efficiency: To keep meetings efficient, companies could address pre-submitted questions in advance, reserve additional Q&A time, and address off-topic questions post-meeting.
  • Adopt Electronic Polling: Using electronic polling, ideally with handsets, can reduce time spent on voting and avoid issues with BYOD polling like poor connectivity or low battery.
  • Plan for Increased Attendance and Questions: With growing shareholder participation, plan meeting durations that accommodate higher turnout and a greater volume of questions. Companies can also consider utilising the Question Deposition Service and addressing some of the questions prior to the meeting.
  • Inform on Refreshment Arrangements: If no refreshments are provided, companies are encouraged to notify shareholders in advance, possibly within the Notice of Meeting.

Download the full report to gain actionable insights on these trends, empowering your company to optimise your AGM practices and enhance shareholder engagement.

DOWNLOAD FULL REPORT

Related Business Insights

Singapore’s XBRL & Malaysia’s MBRS: Unlocking Efficiency in Financial Reporting

Singapore’s XBRL & Malaysia’s MBRS: Unlocking Efficiency in Financial Reporting

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As businesses in our region adapt to the evolving landscape of financial reporting, it’s essential to stay informed about key regulatory developments that enhance transparency and streamline processes.

In Singapore, the Accounting and Corporate Regulatory Authority (ACRA) requires all incorporated companies to submit their financial reporting in eXtensible Business Reporting Language (XBRL). This requirement not only ensures that submissions are structured and machine-readable but also significantly improves data transparency and analysis. Companies must choose from one of four formats —Full XBRL, Simplified XBRL, XBRL FSH for Banks, or XBRL FSH for Insurers. While essential, conversion to XBRL can be complex, requiring careful handling of data to maintain accuracy in reporting.

Meanwhile, in Malaysia, the Companies Commission of Malaysia (CCM) has also implemented a similar requirement, making it mandatory for companies to submit financial statements, annual returns, and exemption applications via the Malaysian Business Reporting System (MBRS). The system employs the XBRL format, enhancing transparency and efficiency while helping companies improve data quality and reduce errors. 

Notably, as of 25th September 2024, Malaysia has launched MBRS 2.0, which introduces enhanced features designed to simplify financial reporting even further. This updated system expands data classification and improves consistency, allowing companies to categorise financial information more accurately and ensuring compliance with CCM regulations.

Here’s an overview of Singapore’s XBRL and Malaysia’s MBRS standards:

 
 
XBRL (Singapore)
MBRS (Malaysia)
Regulatory Body
ACRA
CCM
Introductory Date
2007
(mandatory for filing financial statements)
2018
(introduced as part of CCM’s digital transformation)
Updates in Recent Versions
Enhanced taxonomy, new data points for compliance
MBRS 2.0 enhances taxonomy and compliance features
Coverage
Mandatory for most Singapore-incorporated companies
Mandatory for certain company filings with SSM
(primarily to private limited companies [Sdn. Bhd.])
Scope of Filing
Includes financial statements such as balance sheets, profit and loss accounts in structured XBRL taxonomy
MBRS 2.0 expands beyond financial statements to include compliance reports, non-financial disclosures, and governance-related information.
Filing Platform
BizFinX portal for submission
MBRS portal for online submission
 
Adapting to the requirements of both Singapore’s XBRL and Malaysia’s MBRS can present several challenges. We take a look at 6 common issues companies may face:
 

1. Data Mapping Complexity

Financial data must be accurately mapped to each system's taxonomy, especially for companies with complex structures.

2. Multi-Entity Reporting

Consolidating data for multiple entities can be complex, as each has its own formats thus increasing the risk of errors.

 

3. Need for Technical Expertise

XBRL and MBRS require specialised knowledge, and a lack of in-house expertise can lead to delays and compliance risks.

4. Frequent Taxonomy Updates

Regular updates, like MBRS 2.0, require ongoing attention to ensure data stays properly formatted.

 

5. Software Challenges

Selecting the right conversion software is critical, as the wrong choice can lead to inefficiencies or errors.

6. Accuracy Requirements

Accurate data is vital. Errors in conversion can lead to non-compliance and costly re-submissions.

 
As these developments unfold, it’s clear that both Singapore and Malaysia are prioritising better data management and reporting standards, ultimately fostering a more transparent and efficient business environment. Staying ahead of these changes will be crucial for companies looking to navigate the complexities of financial reporting successfully.
 
 
With these complexities in mind, outsourcing XBRL and MBRS conversion to a corporate service provider like BoardRoom can greatly enhance efficiency and streamline processes. 

Here are some key advantages when companies choose to outsource their XBRL/MBRS conversion and filing process:
​​​
  • Expertise, Scalability, & Compliance
    Leverage expert insights to minimise errors and ensure compliance, while easily adapting services to meet evolving reporting needs and regulations.
     
  • Cost & Time Savings
    Lower your expenses and avoid fines associated with filing errors, as well as costs for specialised software and training, by ultilising high-quality services where providers handle the end-to-end conversion process on your behalf.
     
  •  Streamlined Processes & Quality Control
    Accelerate financial reporting and ensure timely submissions, backed by rigorous quality control measures that enhance accuracy and minimise costly corrections.

Ready to outsource your company’s XBRL and MBRS conversion?
BoardRoom is here to help improve efficiency, reduce costs, and minimise compliance risks.

Let our team of experts assist you in enhancing your reporting accuracy and paving the way for your business success. 
TALK TO US TODAY
 

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Copyright © 2024 Boardroom Pte Ltd.
All rights reserved.

Our mailing address is: [email protected]

 

Unlocking Innovation: Maximising Tax Deductions Through The EIS

Unlocking Innovation: Maximising Tax Deductions Through The EIS

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Unlocking Innovation: Maximising Tax Deductions Through The Enterprise Innovation Scheme (EIS)

Welcome to another Issue of BoardRoom's Asia Tax Insights!

In today's fast-paced business environment, organisations are constantly seeking new ways to drive innovation while reducing their tax liabilities. The Enterprise Innovation Scheme (EIS), effective from YA 2024 to YA 2028, is designed to help with just that incentivise businesses in Singapore to invest in research, development, and capability-building activities through enhanced tax deductions.

If you need a little hand with the process, BoardRoom, in partnership with FI Group, is here to guide you through the EIS application. From identifying eligible expenses to managing the entire submission process, our expert team ensures compliance while helping you maximise tax savings. 

Free up your internal resources, focus on business growth, and let us handle the complexities.

Read our report to learn how you can fully benefit from the EIS and drive innovation in your business.

 
DISCOVER THE BENEFITS
 

 
 
 

Copyright © 2024 Boardroom Pte Ltd.
All rights reserved.

Our mailing address is: [email protected]

 

Malaysia’s Commitment to Sustainability: A Call to Action for Listed Companies

Malaysia’s Commitment to Sustainability

Malaysia’s Commitment to Sustainability: A Call to Action for Listed Companies

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As global climate pressures mount, Malaysia is stepping up with ambitious sustainability initiatives that will reshape how businesses operate. Listed companies must now navigate a new era of environmental accountability, with heightened expectations from investors and regulators alike. 

The three major initiatives shaping the landscape for listed companies in Malaysia include the National Sustainability Reporting Framework (NSRF) which integrates global standards for transparent sustainability reporting, helping businesses align with investor expectations. The National Climate Change Policy 2.0 focuses on managing transition and physical risks, pushing companies to reduce carbon footprints and adapt to new regulatory demands. Finally, the upcoming Climate Change Bill will signal legal accountability for emissions reductions. 

Businesses must act now to stay competitive. Discover more about these critical developments and their business implications in our comprehensive report.

 
 
 
 

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If you found this content useful, forward it to your colleagues and friends so they can subscribe too.

 
 
 

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All rights reserved.

Our mailing address is: [email protected]

 

Payroll Best Practices: Your Guide To Financial Services Payroll Management

Payroll Best Practices Your Guide To Financial Services Payroll Management

Payroll Best Practices: Your Guide To Financial Services Payroll Management

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Payroll management is more than simply checking a box to ensure employees are paid on time. It is also a critical component for financial institutions, particularly in Singapore, where regulatory compliance and efficiency are paramount.

Unlike other industries, financial institutions face unique challenges in managing payroll due to stringent regulatory frameworks, including the Employment Act, Central Provident Fund (CPF) regulations and tax laws.

Alice Yan Hoi Shan, Business Development Manager, Payroll, at BoardRoom, weighs in on this topic. She notes that the financial sector is under more scrutiny compared to others when it comes to payroll compliance due to the large volumes of sensitive financial and personal data, its complex remuneration structures, and strict regulatory requirements.

In this article, we share advice from our experts on payroll best practices tailored for financial institutions. By leveraging our experience and insights, you can ensure your business maintains accurate payroll compliance and proficiency to benefit your employees and stakeholders.

Payroll Compliance Assurance

Compliance is the cornerstone of payroll for financial institutions. The legislation in Singapore is particularly stringent, with financial institutions required to adhere to several key regulations, including:

  1. The Employment Act: This act governs the basic terms and conditions of employment, including salary payments, working hours and leave entitlements.
  2. Central Provident Fund (CPF) Regulations: Financial institutions must ensure accurate CPF contributions for their employees, which involves calculating and deducting the correct amounts.
  3. Tax Laws: Accurate tax reporting and timely submissions are crucial to avoid penalties.
  4. Outsourced Service Provider Audit Report (OSPAR): Financial institutions that outsource payroll in Singapore must ensure that their providers comply with operational and security standards, safeguarding data integrity and confidentiality.

Alice emphasises the importance of selecting a service provider with a robust assurance report, known as the International Standards on Assurance Engagements (ISAE 3402) Accreditation, to ensure compliance with international data security standards.

“Payroll compliance is not just about avoiding penalties,” she adds. “It also builds trust with employees and stakeholders, reinforcing the institution’s reputation for reliability and integrity.”

Payroll Compliance Assurance

Understanding Payroll Best Practices

Implementing best practices in payroll management can help financial institutions navigate complex regulatory requirements while ensuring efficient operations.

BoardRoom is recognised as a leader in payroll for financial institutions. Our approach to payroll best practices and payroll management is anchored in several key practices:

Regular Payroll Audits

Regular payroll audits are essential to identify discrepancies and ensure compliance with regulatory requirements. Failure to audit regularly can lead to costly errors, undetected fraud, and compliance violations, which could result in fines or reputational damage. Regular checks ensure payroll data remains accurate and aligned with the latest regulations, safeguarding both the company and its employees. This proactive approach can help mitigate risks associated with non-compliance.

Staying Updated With Regulatory Changes

The regulatory environment is dynamic, and payroll managers must stay informed about changes in employment laws, CPF regulations, and tax laws. Alice says, “Regulations change frequently, and financial institutions must keep up to ensure they do not fall behind in compliance.” Neglecting to stay updated on changes could lead to fines or penalties for non-compliance. By staying current on regulatory updates, you keep your payroll system compliant, prevent costly mistakes and maintain operational integrity.

Ensuring Data Security And Privacy

Payroll data is highly sensitive, and protecting it from breaches is paramount. Alice underscores the importance of data security. “Financial institutions need to treat employee data with the same level of care as they do with client data,” Alice states. A data breach can expose personal employee information, leading to severe legal and financial consequences, not to mention reputational damage as well as eroding client trust. With the rise of cyber attacks and cyber crime, prioritising data security builds trust and safeguards regulatory compliance.

Implementing Internal Controls

Internal controls such as policies, procedures, regular audits and other mechanisms, are critical to preventing errors and fraud in payroll processing. Without solid internal controls, payroll departments risk exposing themselves to errors or manipulation, which could result in overpayments, underpayments, or even legal action. Strong controls provide an essential safeguard against fraud and ensure financial transparency. “Implementing strong internal controls can help maintain payroll accuracy and integrity,” Alice adds.

Integrating Payroll With Other HR Systems

Seamless integration of payroll with other HR systems, such as attendance and performance management, can lead to more accurate payroll processing and improved overall HR efficiency. Alice points out that integration can help reduce errors and improve the accuracy of payroll data. This integration eliminates the risk of data silos, reduces manual input errors and aligns payroll calculations with real-time employee data. It also enhances decision-making by providing a holistic view of workforce management.

Management Of Payroll For Financial Institutions

Management Of Payroll For Financial Institutions

Outsourcing financial services payroll management to specialised providers can offer financial institutions several advantages, including compliance assurance, cost savings and access to expert services.

Ken Wong, Managing Director Asia, Payroll, BoardRoom Group suggests, “Financial institutions should work with reliable and credible vendors who have experience handling payroll for the financial sector”. When selecting a payroll service provider, consider the following:

    Credibility And Experience
    Look for a vendor with a strong track record in handling payroll for financial institutions. The vendor should be familiar with the specific regulatory requirements and challenges faced by this sector.
    Compliance And Security Standards
    Ensure the provider complies with all relevant regulations and security standards, such as the ISAE 3402 attestation. This helps safeguard sensitive payroll data and maintain compliance with regulatory requirements.
    Scalability And Flexibility
    Choose a provider that can scale its services to match the growth of your institution and adapt to changing regulatory landscapes.
    Technology And Integration Capabilities
    A good payroll provider should offer advanced technology solutions that integrate seamlessly with your existing HR and financial systems.
    Customer Support And Service Level Agreements (SLAs)
    Strong customer support and clear SLAs are essential to ensure smooth payroll operations and quick resolution of any issues that may arise.

    Ken says that outsourcing can significantly reduce the administrative burden on in-house teams, allowing financial institutions to focus on their core business activities. He highlights the importance of conducting a thorough needs assessment, selecting a reliable provider and establishing a clear communication plan.

    Maintain Your Company’s Reputation With Payroll Best Practices

    Maintaining a strong reputation is paramount for financial institutions, especially when it comes to payroll management. Ken says that the financial sector faces high levels of scrutiny from regulators. “A misstep would result in them being fined by regulators for not following procedures or, in the worst-case scenario, having their banking license revoked, which would be detrimental to their business,” he explains.

    By adopting payroll best practices, financial institutions can keep up with complex legislative requirements and ensure accurate payroll compliance processing. Quite often, payroll best practices management can be time-consuming for internal payroll teams, leading to overwhelm and potential errors.

    Benefits Of Outsourcing Payroll Management

    Partnering with experienced service providers will help ensure compliance and uphold your reputation in a highly regulated industry. Ken advises: “Due to strict regulations and a shortage of skilled payroll professionals, financial institutions often struggle to retain in-house payroll staff. Outsourcing becomes a more viable solution, removing the challenges of hiring and retaining specialised talent.”

    Outsourcing payroll management to a specialist provider like BoardRoom can further enhance your financial compliance, allowing your team to focus on core business activities.

    Contact us today to learn more about how BoardRoom can help manage your payroll needs or provide support to your payroll team.

    Contact BoardRoom for more information:

    Ken Wong

    Managing Director for Payroll for Asia

    E: [email protected]

    T: +65 6536 5355

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