As most parts of the world begin to emerge from the shadow of Covid-19, retail activities in Singapore have improved significantly too, with retail sales growing year over year for eight consecutive months since March 2022.

However, inflationary pressures and labour market tightness could dampen these sentiments, as many retailers struggle to hire and retain workers in an increasingly competitive hiring market.

According to Zebra Small and Medium-Sized Business Industry Lead, Amanda Honig, forward-thinking small business owners are turning to technology to maximise productivity and profits and mitigate challenging market disruptions while elevating the overall shopper experience, even when there are fewer staff on hand.

The impact of staffing shortages on small businesses

It is increasingly clear that the modern store is playing a new role, and retailers are under pressure to keep up. Shoppers are back in stores with heightened expectations for convenience, fulfilment, frictionless experiences, and price sensitivity. In a modern store, associates are the bridge between retailers and shoppers, playing a pivotal role in ensuring shopper expectations are met.

However, Zebra’s latest Global Shopper Study showed that only 74 per cent of Asia-Pacific (APAC) shoppers surveyed are happy with the availability of staff and level of help provided in the stores.

Considering how labour shortages continue to impact retailers, this is a concerning observation. The impact of fewer associates on store floors and back rooms can have adverse effects across a retail operation, especially when technology is not being used to augment headcount or the customer experience.

Compared to their larger counterparts, small businesses are likely to feel a greater impact when it comes to staff shortage as a few employee callouts may result in zero staff availability, and a full store closure, for an entire day. Customer loyalty is also at stake here as consumers can easily turn to another retailer with similar offerings to fulfil their need for convenience.

Hence, forward-thinking small retailers should be making investments in technology to make it easier to manage staff schedules and rebalance workloads when teams are lean and foot traffic is high. Integrating solutions that make customers more self-sufficient in the store can also be highly valuable when there are limited associates available to work each shift.

Seamless collaboration between the back and front of the store

For small businesses, the line separating the front of the store and backroom operations is often blurred, as the limited headcount could mean that associates take on multiple roles concurrently. As such, the right technology can help ensure there is no disconnect between the two functions and increase efficiency when associates switch between the front and back of the store.

Also Read: How tech upgrades could address Singapore’s labour shortage in hawker centres

For example, equipping associates with enterprise-class mobile devices can add valuable mobility and transparency to the inventory management process, streamlining workflows as a result. According to the same Zebra study, 49 per cent of shoppers surveyed (64 per cent in APAC, 49 per cent globally) do not complete their intended purchase order due to out-of-stock products.

Implementing such technology will help give store associates on the sales floor insight into what products are available or scheduled for arrival so they can better support customers and ensure items are replenished as soon as possible.

On the retailer’s end, most retailers (84 per cent in APAC, 79 per cent globally) reported that they need better inventory management tools for accuracy and availability, as they acknowledge maintaining real-time visibility of out-of-stock items as a significant challenge.

Bolstered by technology, the overall inventory management process can be less time-consuming and more accurate than processes of the past, which relied on paper and pen to track item locations, sales, and more.

Enhancing front-of-store processes

In addition to back-end inventory management, another way small businesses can add automation and efficiency to its front of store processes to enhance customer experience could be by embracing retail-ready technology solutions such as self-serve kiosks or checkout lanes, rugged tablets with added point-of-sale (POS) modules, or handheld mobile computers with built-in barcode scanners and accessorised with radio frequency identification (RFID) sleds.

Generally, shoppers, retail associates, and retail decision-makers agree shoppers have a better experience when retail associates use the latest technology to assist them. Mobile technology allows associates more time to be on the floor with shoppers with improved service, speed, and convenience.

Also Read: Singapore startup Crypto.com lets go of 20% staff

For instance, tablets allow associates to easily search for product knowledge and provide a better customer experience by answering questions thoroughly and offering more information about a product instantly and effectively.

When an associate is not available, customers can easily turn to a kiosk for information about inventory styling, sizing, and selection. These kiosks can even be set up to support online ordering while in-store, notify an associate of their arrival for order pickup, or process returns.

Retail-ready technology helps maximise the power of a single associate to meet customer service expectations no matter the disruption. It can also augment the workforce by speeding up onboarding and upskilling, making specific skills easier to learn or transfer when needed.

Meeting the demands of associates

Engaging and retaining a younger workforce can be the ultimate long-term solution to the current labour problem. It is estimated that Generation Z (Gen Z) in particular, born between the late 1990s and early 2010s, makes up 24 per cent of the ASEAN population as of 2021. They will also make up a significant part of the workforce in years to come.

Heading into the future, meeting the demands of younger workers for on-the-job technology will be crucial to improve operations and maintaining a steady, devoted workforce.

Technology has had a tremendously positive impact on the retail experience over the last 15 years and will continue to do so in the future. Fortunately, for most small businesses, retail-ready technologies have become more accessible than ever before to meet the needs and budgets of these retailers. Investment in the right technology is the key to retail agility and resilience for the modern store.

The price of digitalising store operations is nominal when you compare it against the potential costs of a staff shortage. Not only can technology support the shopper experience, but it can also help ensure workers will be available and workflows manageable – two critical components of a successful retail business.

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Messaging apps, once an intimate medium for sharing private views, are taking on a new role to drive sales and customer engagement. The latest retail buzzword, ‘conversational commerce’, a convergence of shopping and conversations, uses messaging tools within the chat to create a seamless shopping experience along with customer service. This meets the needs of today’s customers, who base their loyalty on good experiences above price or product.

While the use of messaging apps to connect with customers is not new, its functionalities have expanded, enabling consumers to chat with store associates, receive personalised recommendations and make purchases. 

Asia has the highest messaging population worldwide, dominated by WhatsApp, Facebook Messenger, WeChat, Viber and LINE. In Southeast Asia (SEA), fast becoming the new global e-commerce powerhouse, conversational commerce is set to hit US$47 billion in 2023. This offers Asian retailers an extraordinary opportunity to level up their customer experience, a critical need to reach today’s digital consumers.

E-commerce surges in SEA

SEA will see robust growth in retail e-commerce sales this year of nearly US$90 billion, increasing more quickly than anywhere else worldwide. Next year the region will cross the US$100 billion mark, a long way from the US$37.22 billion seen in 2019. 

Also Read: Conversational AI in governance: Redefining citizen experiences

This surge in e-commerce has also led consumers to increase their use of messaging apps and social media to communicate with merchants and inquire about information instead of searching for them online. Globally, one in five consumers use live chat or in-app chat daily and three in five consumers video chat with a business more now than 18 months ago. 

Regionally too, conversational commerce is booming. According to a Bain & Co report, SEA has a higher percentage of internet users who are online consumers, 79 per cent, surpassing India’s 20 per cent and roughly on a par with the US at 75 per cent.

A combination of social media, short videos and messaging was found to be consumers’ preferred online channels for discovering new brands and products. In addition, 88 per cent of SEA consumers cited online channels as their top source of brand engagement.  

Customer expectations and their need to communicate with brands have certainly increased. According to Facebook, 48 per cent of holiday shoppers are more likely to buy if businesses are contactable through instant messaging. With the use of conversational commerce platforms, businesses can meet customer expectations, offer personalised experiences and improve sales conversion rates. 

Benefits of conversational commerce

Conversational commerce enables retailers to meet customers’ existing and evolving needs. Businesses with embedded commerce capabilities can serve, connect with, and sell to their customers from anywhere, on any channel. Some of the benefits of embedding conversational commerce solutions include:

Personalised experience

Integration of messaging apps can enable retailers to offer a customer-centric shopping experience, emulating a sales assistant at a physical store who makes personalised recommendations and guides you through purchases. 

Also Read: Why live commerce is here to stay in Asia

This gives the seller the opportunity to use 24/7 available AI-powered chatbots to cater to and respond to customer queries instantly.  This also allows them to gain insight into customer requirements, suggest products and improve product offerings.

Enhanced convenience

Conversation commerce enables consumers to get instant and easy access to brands, their products and their sellers. 

Additionally, with the power of AI, conversational commerce is able to provide visibility on a consumer’s online shopping journey, from product inquiry, and product information search, to placing an order, payment and delivery tracking, without any friction.

Improved marketing campaigns

Businesses can leverage AI to gain insight into the purchasing habits of customers based on conversations with them and eventually use that information to personalise ads and display automated marketing content.

Overall, conversational commerce can deliver retailers a higher conversion rate, higher average order value and higher customer loyalty.

Conversational commerce critical to a seamless e-commerce experience

As e-commerce surges and consumers shift to direct messaging for online shopping, conversational commerce looks set to dominate the industry for years to come. 

By allowing consumers to engage with their preferred brands conveniently and have fun shopping, conversational commerce is leading the way for businesses to enhance user engagement and experience, and drive growth. 

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Singapore- and Australia-based Cortical Labs, which develops a new class of artificial intelligence using human neurons, has closed a US$10 million financing round.

Led by Hong Kong-based Horizons Ventures, the round also saw participation from LifeX Ventures, Blackbird Ventures, In-Q-Tel, and Radar Ventures.

Cortical Labs will use the money to accelerate the commercialisation of its patented Biological Intelligence Operating System (biOS) and fulfil pre-orders.

A biological computing company, Cortical Labs uses clusters of lab-cultivated neurons from human stem cells to form a DishBrain. This brain is integrated into the firm’s patented Biological Intelligence Operating System (biOS) with a mixture of hard silicon and soft tissue.

Also Read: Cortical Labs’s hybrid biological-computer chips could make robots smarter, more adaptable

According to the startup, human neurons are a new and untapped resource with the potential to be far better than any digital AI model for Generalised Intelligence. The DishBrain has the ability to grow, adapt, and learn faster than purely silicon-based AI and also requires far less energy consumption.

Hon Weng Chong, CEO and Founder of Cortical Labs, said: “The possibilities that a hybridised AI meets synthetic biology model can unlock are limitless, accelerating the possibilities of digital AI in a more powerful and more sustainable way. Our technology will shape and drive the next frontier of AI.”

Prior to Cortical Labs’s work, developing and testing new drugs and therapies affecting the central nervous system or pre-existing drugs with cognitive side effects was not possible. Cortical Labs aims to change this with the commercial development of the Cortical Labs 1 (CL1) system, enabling novel in-vitro cognitive testing for the life-sciences industry.

Before the latest round, the startup raised US$1.62 (which included a pre-seed round in Jun 2019), from Blackbird Ventures, January Capital, Westcott Family Office, and two individuals, Miles Albert and Vishal Garg.

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Echelon Asia Summit 2023 brings together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups can pitch to 5000+ delegates, among other benefits like connecting with investors, visibility through the platform, and other prizes. Join TOP100 here.

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Singapore-based impact investor Earth VC has joined the US5 million Series A investment round of Israeli intelligent traffic management startup ITC.

Other investors of this round are Champel Capital and Mobilitech Capital.

The startup will use the capital to expand into Southeast Asia.

ITC develops cutting-edge computer vision and AI/ML algorithms to predict traffic patterns and prevent traffic congestion before it accumulates. Through measurement, prediction, and mitigation, it also enforces municipal traffic policies, such as public transport, bicycle, and pedestrian prioritization.

Also Read: ‘Climate tech: SEA needs more time to improve startup quality, attract capital’, says Earth Venture Capital’s Tien Nguyen

The firm claims its algorithms can correctly identify 99 per cent of vehicles, buses, ambulances, bikers, and pedestrians and detect a range of parameters about these objects’ behaviours.

According to the company, it manages “millions of cars” weekly across the US, Brazil, Australia, Israel, and Europe.

“ITC’s solution is exceptional and a ‘must-have’ for any big city as we want to move forward. Their ability to connect to existing CCTV in junctions can reduce up to 30 per cent of traffic jams without needing additional hardware. This not only improves residents’ well-being but also saves time and money, as well as reduces CO2 emissions,” said Amir Weitmann, Managing Partner of Champel Capital Partners.

“It is a global issue when emissions can increase by up to 40 per cent when vehicles are idling at traffic lights, compared to when they are in motion. Nine out of ten people think that traffic lights are stupid. Joining forces with ITC on their mission is like being at the forefront of a revolution against climate change. One of the great ways to fight against climate change is just improving the efficiency of our daily activities,” said Tien Nguyen, General Partner of Earth Venture Capital.

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In March, Singapore-based Transparently.AI was named as one of the 10 companies that have secured a place in Plug and Play’s Fintech 2023 Accelerator Program. The company was chosen from a list of over 1,000 startups to participate in this programme.

In a press statement, CEO and co-founder Hamish Macalister dub their participation as an “enormous opportunity”. He explains further in an email interview with e27 on what Transparently.AI wants to achieve through the programme.

“Plug and Play’s programme is a little different from many others. The primary focus is on connecting you with their corporate client base in the US and elsewhere. Their aim is to get you signed up for as many POCs, projects and contracts with their client base as possible. That client base is a who’s who of the financial community,” he writes.

“So it’s a fabulous opportunity for a startup. We effectively have the world’s largest technology accelerator doing business development/sales for us.”

Founded in 2021, Transparently.AI has developed an AI-based system for the automated detection of accounting manipulation and fraud in companies.

The company was founded by long-time Singapore residents Macalister and Mauro Sauco.

Also Read: The AI revolution: Transforming industries and reshaping the world we live in

“Our focus is on early identification of accounting or earnings manipulation that ultimately leads to failure. Essentially, the system finds the next Enron … the next Wirecard. While we hear through the media about these big names, at any one point in time there are literally thousands of companies, identified by our system, with worrying accounts. Our system has proven to be highly accurate regarding the identification of these companies,” Macalister describes the work that the company is doing.

“Critically, it identifies then on average two to three years before the wider market becomes aware that there is a problem.”

Macalister further explains the specific problem that Transparently.AI aims to solve.

“The losses incurred as a result of accounting malfeasance by corporates are staggering. More than US$1 trillion is lost to various stakeholders as a result of accounting manipulation every year! And that is just for listed companies, [with] unlisted companies will be a multiple of that,” he stresses.

The company raised a US$1 million in 2022 which supported the final development of the production release for its technology and the execution of its go-to-market strategy.

“That raise was assisted by us securing a contract with one of the world’s pre-eminent sovereign wealth funds to be client number one, prior to seeking external capital,” Macalister says.

Expanding beyond

Transparently.AI implements a revenue model where it provides a subscription service that gives clients access to a cloud-hosted portal. It enables users to search and screen for accounting manipulation by companies across the globe.

Also Read: Revolutionising fintech in Southeast Asia: AI and ML empower businesses with data

“We also provide detailed analytics that explains exactly how a company is manipulating and fully automated forensic accounting reports. The latter is generated in two to three seconds for any of 80,000 companies and any financial year for those companies. The alternative would be hiring a forensic accounting team for weeks to analyse a single company,” Macalister says.

Transparently.AI’s participation in Plug and Play is just in time with the rise of AI’s popularity in society. The problem that the company aims to solve–accounting manipulation–is “brilliantly suited” to be handled by an AI-based solution, according to Macalister.

“It is highly complex, multi-dimensional and constantly evolving. Traditional modelling techniques simply can’t cope with that. AI/ML techniques have the ability to be completely dynamic and exploit that power to generate valuable and extremely insightful results,” he says.

The company itself already has a development pipeline planned out.

“There are myriad additional components we can add to our system to add further value to our users. This is particularly true with respect to the extraordinary array of unstructured datasets out there that provide additional perspectives on the issue of accounting manipulation,” Macalister says.

In addition to product development, in 2023, Transparently.AI has also planned for a deal pipeline with “some of the world’s largest financial institutions.”

“It is exciting to see how enthusiastic they are about incorporating our technology into their businesses. We also intend to launch a fundraise around mid-year to underpin our next phase of product development and accelerate our go-to-market strategy,” Macalister closes.

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Echelon Asia Summit 2023 is bringing together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here.

Echelon also features the TOP100 stage, where startups get the chance to pitch to 5000+ delegates, among other benefits like a chance to connect with investors, visibility through e27 platform, and other prizes. Join TOP100 here.

Image Credit: Transparently.AI

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The solo business owner (SBO) is a solopreneur, a freelancer, a side hustler – an individual who wishes to start a business on his or her own. This has become a growing trend post the COVID-19 pandemic where gig culture is no longer seen as a last resort to gain work but rather a preferred choice for many who wish to have multiple sources of income, fuelled by the flexibility of remote working in this new digital landscape.

Typically, the SBO would want to see if the business takes off before investing more time, effort and money to set up a company to carry on the business. The cost of incorporation and upkeep of a company alone can be deterring for the SBO who has yet to see assuring returns on the business to justify such cost.

For some SBOs, operating through a company may not even be relevant at all if there is no intention to scale up, especially if the end goal is to have the freedom to hop between multiple side gigs or simply supplement existing income.

The alternatives for going solo without setting up a company in Singapore are relatively limited. The SBO could choose to carry on the business under his or her full name (if the SBO is a Singapore citizen or permanent resident (“Local Resident”)) or register a sole proprietorship in Singapore.

This article explores the suitability of these alternatives as well as other legal considerations for starting a small-scale business in Singapore on your own. The information in this article is provided for general reference only and should not be relied upon as legal advice.

Carrying on business in Singapore

ACRA registration

Pursuant to the Business Names Registration Act 2014 of Singapore (“BNRA”), a person carrying on business in Singapore must register with the Accounting and Corporate Regulatory Authority of Singapore (“ACRA”) unless the person is exempted under the BNRA.

Carrying on business in Singapore includes every form of trade, commerce and profession, and any other activity, that is carried on for the purposes of gain, even on a part-time or casual basis (but does not include any office, employment or occupation).

Also Read: How to navigate legal issues for startups

For example, an individual who makes money on the side from selling homemade goods (such as home-baked foods or handmade crafts) or freelance services (such as consulting as an independent contractor or creating online content for paid advertising as an influencer) may be treated as carrying on business in Singapore and hence subject to the above requirement under the BNRA.

Licences and regulatory compliance

The SBO may need to obtain relevant business licences if the business falls within any regulated industry in Singapore, such as the financial, accounting or trading sectors. The business may also be subject to industry-specific guidelines or practices.

For example, a home-based food business may need to comply with food safety and hygiene requirements under the Sale of Food Act 1973 of Singapore and the Environmental Public Health Act 1987 of Singapore, while an influencer who is paid for online advertising may need to comply with advertising guidelines published by the Advertising Standards Authority of Singapore.

Home-based business

The SBO can carry on business in Singapore from the ease of his or her home under the Home-Based Business Scheme of the Housing & Development Board of Singapore (“HDB”) (for public housing) or the Urban Redevelopment Authority of Singapore (“URA”) (for private housing) without HDB’s or URA’s approval, subject to meeting the conditions of such scheme.

For example, the business must be operated only by the property owner, registered occupant or tenant of the property (with consent from the property owner), the property must remain a residential dwelling with no advertisements, signages or posters displayed, and the business activities must not cause disamenities to the neighbours.

If the SBO wishes to operate a home office supported by non-residents of the property, the SBO would need to register with HDB or URA for a home office licence under HDB’s or URA’s Home Office Scheme (as the case may be), subject to meeting the conditions of such scheme.

For example, the type of business operated must fall within HDB’s or URA’s prescribed list of permitted businesses, the home office must be used for administrative functions only (and not for other business activities such as receiving customers), and only up to two non-residents of the property can be hired to support the home office.

Work approvals

If the SBO is a Local Resident who is an employee working for an employer, the SBO should check that the provisions of the employment contract between the SBO and the employer (particularly any non-compete, conflict of interest or exclusivity provisions) do not restrict the SBO in any way from carrying on the business, whether during or after such employment. Otherwise, the SBO should obtain a waiver of such restriction from the employer.

If the SBO is a Singapore Dependant’s Pass holder, the SBO will need to obtain a Letter of Consent (“LOC”) from the Ministry of Manpower of Singapore to operate the business in Singapore through an ACRA-registered business such as a sole proprietorship.

Singapore work pass holders (such as Singapore Employment Pass, S Pass or Work Permit holders) do not have the flexibility to be an SBO as they must only work for their designated employer and cannot concurrently start a side business or engage in other activities to earn additional income in Singapore.

Carrying on business under the full name

An SBO who is a Local Resident carrying on business in Singapore is exempted from registering with ACRA if the business is carried on under only the SBO’s full name as stated in his or her Singapore National Registration Identity Card (NRIC).

For example, if the SBO’s full name is “Jane J. Doe” under her NRIC, she can only enter into business contracts and have business marketing collaterals under the name “Jane J. Doe” and not any variation thereof (such as “Jane Doe”, “Goods by Jane J. Doe” or “Jane J. Doe Services”).

As the SBO will be using his or her own personal name, the SBO will be personally liable for all debts and losses incurred by the business. The SBO should consider whether he or she is willing to accept this risk in light of the potential liability which may flow from the business activities.

Carrying on business under sole proprietorship

If an SBO who is a Local Resident prefers to use a business name that is different from the SBO’s full name as stated in his or her NRIC (whether for branding purposes or otherwise) or if the SBO is not a Local Resident (such as a Singapore Dependant’s Pass holder), the SBO can consider setting up a sole proprietorship.

A sole proprietorship is a business with one owner (in this case, the SBO) which must be registered with ACRA. Such registration will be for one year or three years, renewable for either of these periods. The sole proprietorship will need to maintain a registered address with ACRA which can be the SBO’s home address under HDB’s or URA’s Home-Based Business Scheme or Home Office Scheme referred to above.

While registration with ACRA will result in the registered details of the sole proprietorship being accessible to members of the public (like in the case of a company), such transparency may serve to give the SBO’s business added legitimacy to facilitate transactions with customers.

Also Read: Why SEA’s startup ecosystem is making a strong case for legaltech

Registration with ACRA may also be necessary for government-related applications available to ACRA-registered businesses only (such as applications for relevant business licences, LOCs and Singapore work passes).

As the sole proprietorship is not a separate legal entity from the SBO, the SBO will be personally liable for all debts and losses incurred by the sole proprietorship, as if the SBO was operating under his or her own personal name notwithstanding that the sole proprietorship goes by a different name. This drawback is usually an impetus for setting up a company which is a separate legal entity that can afford the SBO the protection of limited liability for the business.

As a sole proprietorship cannot be converted into a company, the SBO would need to first set up a company and then transfer the business of the sole proprietorship to the company before closing the sole proprietorship. In light of this, the SBO who is in the business for the long game may prefer to start the business through a company from the outset to avoid the hassle of dealing with an internal transfer of the business at a later stage.

Hiring staff for the business

An SBO who is a Local Resident carrying on business under the SBO’s full name as stated in his or her NRIC can hire only Local Residents as employees in Singapore, whereas an SBO carrying on business under a sole proprietorship can hire both Local Residents and foreigners as employees in Singapore, as only ACRA-registered businesses can apply for Singapore work passes for foreigners to work in Singapore.

This should be taken into account when hiring under HDB’s or URA’s Home Office Scheme referred to above.

For employees who are Local Residents earning a total salary of more than SG$50 per month, the SBO will need to pay employer contributions under the Central Provident Fund (CPF) Act 1953 of Singapore. Similarly, such employees will need to pay employee CPF contributions unless their total salary earned is not more than SG$500 per month.

Paying business income tax

IRAS declaration

If the SBO is carrying on business under his or her full name or a sole proprietorship and,

• the net trade income of the business (i.e. gross receipts minus all allowable business expenses, capital allowances and trade losses) (NTI) is more than SG$6,000 per year, or,
• The SBO’s total income including from the NTI and other sources of income (such as any salary earned by the SBO as an employee outside the business) is more than SG$22,000,

the SBO as a self-employed person must declare the NTI for each accounting period chosen by the SBO (typically a 12-month period ending every 31 December) to the Inland Revenue Authority of Singapore (IRAS) as part of the SBO’s personal income.

Tax rate

The NTI will be taxed at individual income tax rates, and not the corporate income tax rate of 17 per cent. If the SBO is a Singapore tax resident, the individual income tax rates will range between 0 per cent and 24 per cent for the year of assessment 2024 onwards, depending on the amount of personal income earned.

In deciding between carrying on business as a self-employed person or through a company, the SBO should work out whether the applicable individual income tax rates or the corporate income tax rate would be more favourable to the SBO based on the projected income of the business, taking into account any tax reliefs and exemptions applicable to personal or corporate income.

Record keeping

The SBO should keep full and accurate records and accounts of all business transactions so that the NTI can be readily determined in the event that IRAS requests supporting documents for verification, as well as to avoid errors in tax returns for which IRAS may impose penalties. Such supporting documents may include original invoices, receipts, vouchers, and logs of business engagements undertaken and business expenses incurred.

Also Read: How SeedLegals plans to win SEA market by helping founders sort out their legal documents

The SBO should also prepare a statement of accounts for the business (comprising the profit and loss accounts and balance sheet) for each accounting year, which must be submitted to IRAS if the business revenue is SG$500,000 or more.

MediSave CPF contributions

If the SBO is a Local Resident with an NTI of more than SG$6,000 per year, the SBO must pay mandatory MediSave CPF contributions as a self-employed person, notwithstanding that the SBO may also be paying employee CPF contributions as an employee outside the business. Such mandatory MediSave CPF contributions will generally be a percentage of the annual NTI, subject to a cap ranging from SG$5,760 to SG$7,560 depending on the SBO’s age.

The SBO may also make voluntary MediSave CPF contributions as a self-employed person in order to claim tax relief to lower the individual income tax payable by the SBO.

Partnerships

As the business expands, the SBO may consider partnering up with other individuals to operate the business. In such a case, it is worth noting that the SBO and his or her partners will similarly be exempted from registering with ACRA if all of them are Local Residents and the business is carried on under only their full names as stated in their NRICs.

Otherwise, they could consider registering a general partnership with ACRA which is a business owned by at least 2 partners, up to 20 partners. Like a sole proprietorship, while there are benefits that come with ACRA registration (such as added legitimacy and the ability to make government-related applications), a general partnership is not a separate legal entity from its partners and each partner will be personally liable for all debts and losses incurred by the business and will have to pay personal income tax on the NTI of the business.

That said, there are other partnership structures available for registration with ACRA, such as a limited partnership and a limited liability partnership, which may also be suitable as an alternative to setting up a company in Singapore, depending on the business arrangement of the partners.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

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The goals of PR can vary depending on the specific needs and objectives of a business, but mainly include enhancing brand awareness, promoting a positive image, managing public perception and can help gain exposure to a wider audience in reputable media outlets and reaching a larger audience, potentially leading to increased website traffic and sales.

Compared to traditional advertising and marketing methods, PR can often be more cost-effective for small businesses and startups with limited budgets. PR efforts such as press releases and media pitches can generate publicity and increase brand visibility without the need for significant advertising spend.

It also helps builds credibility and trust with potential customers, investors, and partners. When a small business or startup receives positive media coverage, it can enhance its reputation and legitimacy in the eyes of the public, which can result in increased trust and confidence in the brand.

It’s also a great way for businesses to use storytelling, share their vision, and differentiate themselves from their competitors. By crafting compelling narratives and messages, PR can help startups stand out in a crowded market and connect with their target audience. PR is a long-term strategy though, you have to be patient and in it for the long game – consistency is key to fostering brand loyalty among customers and stakeholders.

If you want to become a superstar brand or household name, PR can be that magic you need to get you there.  Here are a few insider tips and a little secret sauce so you know what you need to do to get in the media:

Know your audience and research!

Before pitching to the media, it’s essential to understand who your target audience is and what they are reading. You then need to research and understand a publication’s target audience, so you can tailor your pitch to their needs and interests.

Craft a compelling story

Journalists are always looking for ‘stories’, so make sure your pitch is interesting, unique, and timely. What is your why story, your key messaging, and then focus on the “hook” or angle that will grab their attention?

Create a press kit

A press kit should include a company overview, product descriptions, logos, images, relevant press releases, fact sheets and other information that journalists can use to write about your business. Make it easy for them to write about your company.

Customise your pitch

Every journalist and publication is different, so it’s crucial to tailor your pitch to each individual outlet – avoid the spray-and-pray approach – i.e. sending a generic pitch to a large list of contacts is not going to get you anywhere. Point out which columns and sections you are pitching to and why it could be interesting for their readership.

Use data and statistics

Including data and statistics in your pitch can add credibility to your story and make it more newsworthy, a relevant and keeps it in context with what’s happening in today’s world. Keep a store of the latest facts to hand and ready to share for last-minute features and interviews.

Also Read: How Google is nurturing the next wave of startup founders to solve pressing challenges

Eat news for breakfast

Make sure you understand what your target media are writing about, and what’s happening in the economy and world, especially with regards to your industry and brand, so you can make your pitch even more relevant.

Keep it short and sweet

Journalists receive hundreds of pitches every day, so it’s essential to keep your pitch brief and to the point. Highlight the most important information in the first few sentences, and use bullet points and subheaders so it’s easy to read and understand.

Build relationships

Developing relationships with journalists is the name of the (PR) game to establish trust and credibility. Take the time to get to know the journalist before pitching them and follow up after the pitch. Looking at their social accounts, such as Linkedin, is a good place to start to understand what their interests are and past articles.

Be ready to respond

If a journalist expresses interest in your story, be available to answer their questions and provide additional information. Nine times out of ten, they are on deadlines, so have your press kit ready to go at a moment’s notice. Be a dream to work with, and they’ll start coming to you!

Follow up, but don’t be a pest

Do follow up on a pitch if you don’t hear back from the journalist, but don’t be too pushy. Try to get feedback on if your pitch is relevant but respect their time and space. Above all, don’t give up if your first-ever pitch isn’t successful — be in it for the long game.

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The COVID-19 pandemic and the vulnerability in the market have had a profound effect on the co-working space industry in Asia. The role and definition of co-working space have now changed.

“The places where we used to sit behind a computer at our desks most of the time have become a modern agora where people gather to learn from and collaborate with one another,” says Jaelle Ang, Co-Founder and CEO of The Great Room, a Singapore-based hospitality-led coworking space.

How does the industry cope with the fast-changing environments? How has the industry grown post-pandemic?

In this interview, Ang answers these questions and discusses the trends and changes in the co-working space sector.

Edited excerpts:

How has the demand for co-working spaces changed since the start of the pandemic? Have you seen an increase or decrease in occupancy levels? Has the demand gone up after the dangers of COVID-19 are gone?

As a whole, the demand for flexible workspaces, and by extension co-working spaces, has increased. The geopolitical uncertainty that the world faces today had a ripple effect on the many considerations of businesses, such as geography, headcount, and growth. This state of flux requires the support of real estate partners in terms of flexibility to accommodate these changes.

Pre-pandemic, the flexible workspace was projected to grow from 5 per cent to 30 per cent by 2030, and we’ve seen this trend pick up more than ever. We’ve seen an immense growth of demand from the enterprise segment of customers; businesses that are sophisticated and drive high margins.

Also Read: Singapore gets an NFT-gated Web3 co-working space Metacamp

One such example is our newest location, The Great Room, South Bridge. Slated to open on April 20, it currently has a pre-opening occupancy rate of 80 per cent, the highest opening occupancy within our portfolio.

What changes have you made to your co-working space design to adapt to the new normal? Have you implemented any health and safety measures for your members?

We’ve designed a space where people can come together to collaborate and learn. The role of the office has changed. The places where we used to sit behind a computer at our desks most of the time have become a modern agora where people gather to learn from and collaborate with one another.

The ultimate role of the office is to help companies win the ‘war for talent’, and the edge for any company is the ability for their talent to learn quickly. Instead of isolating individuals to the confines of their desks, we’ve created a culture container, a learning place that enables and encourages meaningful interactions.

In terms of health and safety, The Great Room puts an emphasis on cleanliness and hygiene within its spaces, with strict cleaning protocols such as increased cleaning frequency at high touch points throughout our coworking spaces, as well as a variety of wellness and health programmes for members who have become more conscious as a result of the global pandemic.

How is the current economic climate affecting the industry?

We are cautiously optimistic. On one hand, the outlook for co-working spaces is positive as a result of business uncertainty. However, we are well aware of macro trends such as high rates of inflation and increasingly volatile markets.

Industries that used to be seen as very safe such as large banks and tech companies have found themselves in rather vulnerable situations. This has had profound effects on our industry. There may be new opportunities presented, but there could also be many shifts and changes that we will have to accommodate as well.

Have you noticed any specific trends in the co-working space, particularly in Singapore?

Singapore is a market that is familiar with co-working. If companies want flexible workspaces, they will have varying needs and price points, and we expect to see the market become increasingly segmented to the point of fragmentation. This is when we can also expect to see a consolidation of the existing players.

Since the pandemic restrictions were put in place in 2020, The Great Room has seen a significant shift in its audience segment over the last three years. Before the pandemic, occupancy rates were split between SMEs and MNCs & enterprises at 75 per cent and 25 per cent, respectively.

Currently, in the post-pandemic era, SMEs now make up 35 per cent of the members while MNCs & enterprises make up a majority of the members at 65 per cent post-COVID-19.

With many companies now adopting a hybrid work strategy, how do you see this impacting the co-working industry in the future?

The co-working industry needs to rethink its role. Beyond providing just seats in front of computers, they need to provide activity-based working and meeting spaces, as well as spaces for training, collaboration and learning. We need to help our clients win the war for talent, whether it is through initiatives such as wellness programmes, helping talents learn beyond their immediate fields, or building their social capital and simply connecting with people.

We’ve seen an accelerated adoption of flexible work arrangements, as well as a demand for versatile workspaces during the pandemic. With our sixth and newest location, we’ve doubled down on offering dynamic spaces, efficient services and community-building events to offer a variety of options that meet the varied and ever-changing needs of our members.

In what ways has your approach to marketing and promoting your co-working space changed since the pandemic started?

In our early days, our efforts were geared towards brand building and telling the story of The Great Room. Now that we’ve expanded to ten locations, we are focusing on telling the stories of our members, communities, and the location of our workspaces.

How is the current economic crisis impacting the co-working space in SEA?

Asia has been lucky coming out of the pandemic. Rates of consumption, services, and the return of the workforce to the office have been high. However, people’s belts will continue to tighten, and they will become wiser about spending.

Co-working spaces are ultimately a business expense, and people will have expectations for them to provide more bang for their buck, whether it is in the form of services, hospitality, or learning.

Also Read: From co-working to co-living, these 8 brands in Southeast Asia have got you covered

The current economic crisis has resulted in an increased demand for flexible workspaces with the adoption of remote work arrangements. The high degree of flexibility and cost-prohibitive nature of co-working spaces can benefit companies weathering times of economic crises as they pose less of a liability.

For The Great Room, our multi-faceted range of workspace solutions is our greatest asset to our customers, whether it is a company looking to downsize their office space, or a small business owner looking for an arrangement suited to their needs.

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Echelon Asia Summit 2023 brings together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups can pitch to 5000+ delegates, among other benefits like connecting with investors, visibility through the platform, and other prizes. Join TOP100 here.

The post The co-working industry needs to rethink its role: The Great Room CEO Jaelle Ang appeared first on e27.

Singapore-based early-stage VC firm Monk’s Hill Ventures has made the final close of its third fund at US$200 million.

The firm was originally seeking to raise US$150 million for this fund, according to SEC filings.

The names of the Limited Partners haven’t been disclosed. As per a statement, they are predominantly institutional investors including foundations and endowments, sovereign funds and several prominent family offices.

Singapore’s sovereign fund Temasek was an investor in its previous two funds.

“We are still focused on building tech-enabled regional champions in Southeast Asia by taking a first-principles approach to building a concentrated portfolio of Series A startups,” said Kuo-Yi Lim, Co-Founder and Managing Partner at Monk’s Hill Ventures.

Also Read: Be open about ways to grow and expand your skills: Cheryl Liew of Monk’s Hill Ventures

Fund III has already invested in several companies, including Rainforest and Upmesh (e-commerce); Hannah Life, Ordinary Folk, and Novi Health (digital health); Credibook, Starboard, and MinOS (business digitalisation); Tigerhall and Lumina (HR tech); Crowde (agritech).

The development comes at a time when startup investments are seeing a downward trend in the region. According to Tracxn, investments dropped 69 per cent to US$1.1 billion in Q1 2023 from US$3.5 billion in the same period last year. This is attributed to a steep decline in late-stage funding to US$415 million in Q1, which is 68 per cent and 73 per cent lower than the amounts raised in Q4 2022 and Q1 2022, respectively.

Seed-stage investments in Q1 also fell 27 per cent and 73 per cent when compared with Q4 of 2022 and Q1 of 2022, respectively. Early-stage funding also dropped 69 per cent; however, it saw a slight increase of 11 per cent over Q4 2022.

Founded in 2014 by Peng T. Ong and Kuo-Yi Lim, Monk’s Hill Ventures invests in early-stage tech companies, primarily pre-Series A and Series A, in Southeast Asia. The firm has invested in more than 35 startups spanning multiple business models and industry verticals. Its footprint spans Southeast Asia with on-the-ground teams in Singapore, Indonesia, Malaysia, Vietnam, and Thailand.

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Echelon Asia Summit 2023 brings together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups can pitch to 5000+ delegates, among other benefits like connecting with investors, visibility through the platform, and other prizes. Join TOP100 here.

The post Monkʼs Hill Ventures hits final close of Fund III at US$200M appeared first on e27.

In March, Vietnam was named as one of the three Southeast Asian countries that continued to dominate the region’s equity funding landscape in a report by DealStreetAsia and Enterprise SG.

The rest of us might wonder: How does the country manage to do this? What are the factors that keep Vietnam attractive in this challenging time? What lessons can we learn from it?

In an interview with e27, Hieu Vo Tran Dinh–Deputy Director at Dragon Capital, CFO at Vietnam Innovative Startups Accelerator (VIISA), and Founder of the Vietnam Fintech Club–gives us his insight into what makes Vietnam a favourable destination for investors.

According to him, there are two factors: Attractive valuation and speedy recovery from the COVID-19 pandemic.

“Valuation of Vietnamese startups is often a bargain in absolute terms and it has strong metrics in relative terms. For instance, we have successfully applied a very consistent discipline in terms of valuation for startups that joined our acceleration stage. Those companies had to set valuations in the range from US$300,000 to US$1 million, and this entry level has helped both startups and investors,” Hieu says.

“For startups, this has helped in maintaining a healthy shareholder structure and a realistic approach to planning their fundraising. For investors, it’s easier to negotiate with them as it’s usually only need to look at operating metrics that support their investment taxes rather than hustling around valuation multiple. The outcome of this is that we see Series A round valuation from US$5 million to US$10 million in Vietnam, which is a bargain relative to other markets.”

Also Read: Society Pass unit NusaTrip acquires Vietnamese travel marketplace VLeisure

Regarding its speedy recovery from the pandemic, it is reflected in Vietnam’s growth rate.

“Prior to the pandemic, Vietnam’s economy has maintained a consistent GDP growth from a range of five per cent to seven per cent for over a decade. The growth rate has quickly recovered to 2.9 per cent last year which was a stunning sight for any economic observer. Vietnam’s economy has shown impressive resilience during the COVID-19 pandemic, evidenced by its positive GDP growth and rising export figures,” Hieu explains.

“This has created a favourable investment landscape, with a surge in entrepreneurial activity and increasing interest from investors.”

Hieu also adds that the government’s efforts to promote innovation and entrepreneurship, such as the National Innovation Center and incentives for high-tech startups, make Vietnam an attractive destination for investment.

“As an investment manager, I see great potential in Vietnam’s growing ecosystem of startups and its position as a key player in the global innovation economy,” he says.

The lessons we learned

So, what are the lessons that other countries can learn from Vietnam in building its startup ecosystem? According to Hieu, there are three main lessons that other startup ecosystems can learn from Vietnam.

The first two lessons are the government’s active role in creating a favourable business environment and having a disciplined approach to valuations, which have already been discussed in the previous paragraphs. The third lesson is local companies’ strong focus on solving local problems and meeting the needs of the domestic market, which has allowed them to grow and scale quickly.

Also Read: Vietnamese music games publisher Amanotes invests in Swedish startup Reactional Music

“Finally, Vietnam’s startup ecosystem has a strong sense of community, with founders and investors often collaborating and sharing resources to support each other’s success. I would suggest the Swiss EP programme as a raw model example for this ecosystem connector. These lessons highlight the importance of government support, a focus on solving local problems, disciplined valuations, and a supportive community in building a successful startup ecosystem,” Hieu says.

According to him, in this challenging time, local startups have also learned to adapt by changing their approach to running a business.

Previously, companies can raise funds by relying on factors such as growth, new users, and transaction volumes. But today, startups in Vietnam have switched to “more practical metrics” such as revenue and cash flow.

“Everyone would ask the question, ‘If you raise this round and then you cannot raise the next round, what will happen?’ So, I think it’s getting really realistic … the financial model must make sense in terms of runway movements and in terms of cash flow, that support all the scenarios that may happen. The base scenario should be a positive cash flow and self sustained; the best case scenario with the high growth is a market share dominance.”

Fintech remains key to Vietnam

Dragon Capital is a fund management firm that has been active in the Vietnam startup ecosystem. A fund management firm, it caters for a wide range of activities from public fund management to wealth management for family office sovereign funds in Europe, Japan, and the US. Hieu describes the firm’s involvement in venture capital as opportunistic and a principal investment mandate.

In Vietnam, Dragon Capital sees the fintech sector and related services as one of the most promising verticals, followed by SaaS for SMEs.

“Vietnam has around 300,000 SMEs up and running. They are open to new ideas, willing to accept new sort of services and business, as long as it makes sense,” Hieu says.

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Echelon Asia Summit 2023 is bringing together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here.

Echelon also features the TOP100 stage, where startups get the chance to pitch to 5000+ delegates, among other benefits like a chance to connect with investors, visibility through e27 platform, and other prizes. Join TOP100 here.

Image Credit: Tron Le on Unsplash

The post Attractive valuation, quick COVID-19 recovery keep Vietnam attractive for investors: Dragon Capital’s Hieu Vo Tran Dinh appeared first on e27.