GuideMeSingapore

Singapore is popularly known as a financial hub, a legal hub, a tourism hub, and an education hub. In a bid to add to this list of achievements, the aim of the ‘Committee to Develop the Accountancy Sector’ (CDAS) is to transform Singapore into a global accountancy hub.

The CDAS is responsible for developing Singapore’s accountancy sector and has set two goals for the industry – to double the accountancy sector s contribution to Singapore s GDP from the existing 0.4% to about 1% over the next decade; and to double the sector’s exports contribution of professional accountancy services to the region from the current 22% to 50%. The CDAS has set out 10 recommendations in order to achieve its goal of transforming Singapore’s accountancy industry.

Singapore’s position as a regional business hub plays a key role in the development of its accountancy sector. It is estimated that around 7000 MNCs have established a business presence in Singapore. Additionally, there have been numerous small and medium enterprises that have set up shop here. According to news reports, the accountancy sector has generated contributions of around S$1 billion to Singapore in the last decade alone. With increasing company formations in Singapore year after year, it is reasonable expect a surge in the demand for accountancy services. Furthermore, with the rise of Asian economies such as China and India and emerging markets such as Indonesia, and Vietnam, there will be an increased foreign demand for professional accountancy services. According to the CDAS report, the total Asia-Pacific market for accountancy services was worth US$ 30.8 billion in 2008 and is expected to reach US$ 38.3 billion by 2013. Australia, China and India were major contributors to the Asia-Pacific accountancy market, while Singapore formed only a small portion of the pie.

Although Singapore’s accountancy and auditing standards are generally considered on par with international standards, its accountancy sector has until now primarily catered to domestic demand within Singapore. However, with the CDAS’s recommendations Singapore’s accountancy sector will further enhance its appeal in the region. Large accounting firms such as KPMG, Grant Thornton, PKF, PWC and Deloitte Touche, to name a few, have already established a presence in Singapore. Several other medium sized accountancy firms have also benefited by setting up business operations here.

With a strategic location, excellent infrastructure, reputation for integrity, international accountancy and audit standards, availability of high quality accountancy professionals, and a well established accountancy network, Singapore is poised to transform itself into a leading accountancy hub for the region.

On a lighter note, here is an ad from the Institute of Certified Public Accountants of Singapore.

Interested in doing business in Singapore? Find out how to form a Singapore company.