As Singapore enters 2025, several transformative legislative and regulatory changes are set to shape its economic, business, and societal landscape. From significant tax reforms under BEPS 2.0 to updates in arbitration rules, property tax relief measures, and sustainability-focused initiatives, the nation continues to reinforce its position as a global hub for innovation, dispute resolution, and environmental stewardship. These developments not only aim to align with international standards but also enhance Singapore’s competitiveness and ensure economic resilience amidst a rapidly changing global environment.
Key highlights for 2025 include the introduction of a minimum effective tax rate of 15% for multinational enterprises, the closure of CPF Special Accounts for members aged 55 and above, and a one-off Property Tax Rebate for homeowners. Additionally, Singapore will implement changes to employment pass criteria, new electronic deferred payment solutions, and a ban on the registration of new diesel cars and taxis. This article focuses on the most impactful updates for 2025, offering insights into how these changes will affect businesses, investors, and residents navigating Singapore’s evolving policies and priorities.
Tax Reforms and Financial Incentives
In 2025, Singapore will implement comprehensive tax reforms as part of the Base Erosion and Profit Shifting (BEPS) 2.0 initiative under the Organisation for Economic Co-operation and Development (OECD) framework. These changes aim to align Singapore’s tax policies with international standards, ensuring fair taxation practices while maintaining the country’s reputation as a globally competitive hub for business and investment.
BEPS 2.0
At the heart of these reforms is the introduction of the Income Inclusion Rule (IIR) and the Domestic Top-up Tax, both falling under Pillar Two of BEPS 2.0. These measures are designed to impose a global minimum effective tax rate of 15% on large multinational enterprises (MNEs) with consolidated global revenues exceeding €750 million. Specifically:
These changes will come into effect for financial years beginning on or after January 1, 2025, and are expected to impact Singapore-based MNEs with global operations, requiring them to reassess their tax structures and compliance strategies.
To counterbalance the potential impact of this global minimum tax and to maintain its competitive edge, Singapore will introduce the Refundable Investment Credit (RIC). This scheme is designed to encourage substantial investments that contribute significantly to the nation’s economic landscape. The RIC will support up to 50% of qualifying expenditures for approved projects, encompassing areas such as new productive capacity, research and development, innovation, and decarbonization efforts. The credits can be utilized to offset corporate income tax payable, with any surplus refunded in cash within four years, ensuring timely financial support for businesses.
Key highlights for 2025 include the introduction of a minimum effective tax rate of 15% for multinational enterprises, the closure of CPF Special Accounts for members aged 55 and above, and a one-off Property Tax Rebate for homeowners. Additionally, Singapore will implement changes to employment pass criteria, new electronic deferred payment solutions, and a ban on the registration of new diesel cars and taxis. This article focuses on the most impactful updates for 2025, offering insights into how these changes will affect businesses, investors, and residents navigating Singapore’s evolving policies and priorities.
Tax Reforms and Financial Incentives
In 2025, Singapore will implement comprehensive tax reforms as part of the Base Erosion and Profit Shifting (BEPS) 2.0 initiative under the Organisation for Economic Co-operation and Development (OECD) framework. These changes aim to align Singapore’s tax policies with international standards, ensuring fair taxation practices while maintaining the country’s reputation as a globally competitive hub for business and investment.
BEPS 2.0
At the heart of these reforms is the introduction of the Income Inclusion Rule (IIR) and the Domestic Top-up Tax, both falling under Pillar Two of BEPS 2.0. These measures are designed to impose a global minimum effective tax rate of 15% on large multinational enterprises (MNEs) with consolidated global revenues exceeding €750 million. Specifically:
- Income Inclusion Rule (IIR): Ensures that profits of MNEs are taxed at a minimum rate of 15% in the jurisdictions where the income is earned. If a subsidiary in a low-tax jurisdiction is taxed below the minimum rate, the parent entity’s jurisdiction will impose an additional tax to meet the 15% threshold.
- Domestic Top-up Tax: Allows Singapore to impose a domestic top-up tax to the 15% threshold on profits earned within its borders, ensuring that any potential “top-up tax” is retained domestically rather than paid to other jurisdictions.
These changes will come into effect for financial years beginning on or after January 1, 2025, and are expected to impact Singapore-based MNEs with global operations, requiring them to reassess their tax structures and compliance strategies.
To counterbalance the potential impact of this global minimum tax and to maintain its competitive edge, Singapore will introduce the Refundable Investment Credit (RIC). This scheme is designed to encourage substantial investments that contribute significantly to the nation’s economic landscape. The RIC will support up to 50% of qualifying expenditures for approved projects, encompassing areas such as new productive capacity, research and development, innovation, and decarbonization efforts. The credits can be utilized to offset corporate income tax payable, with any surplus refunded in cash within four years, ensuring timely financial support for businesses.
Changes to property tax (PT)
Some home owners will pay lower property taxes, after the annual value bands for owner-occupied residential properties are raised from Jan 1, 2025. The lowest threshold will be raised from $8,000 to $12,000, and the highest band raised from over $100,000 to over $140,000 from 2025.
With the change, home owners can expect to pay the same or lower property taxes, according to the Ministry of Finance (MOF). This is assuming their property’s annual value remains the same, and before factoring in any rebates.
A property’s annual value is its estimated yearly rent if it were to be leased out, and is determined based on market rents of comparable properties and other factors. The annual value is assessed for the purpose of property taxes, which are Singapore’s primary means of taxing wealth and are paid yearly.
2025 Property Tax Rebate
The 2025 Property Tax Rebate is a one-time initiative introduced by the Singapore government to provide financial relief to homeowners amidst rising living costs. All owner-occupied HDB flats will benefit from a 20% rebate on their property taxes, while owner-occupied private residential properties will receive a 15% rebate, capped at S$1,000. This rebate will be automatically applied to property tax bills in 2025, requiring no action from homeowners. The rebate is designed to ensure that a broad base of property owners receives meaningful support, particularly those in owner-occupied homes, who make up a significant portion of Singapore’s residential property market.
HDB flats (Housing and Development Board flats) are public housing units in Singapore, built and managed by the Housing and Development Board (HDB). These flats are the primary type of housing in the country, accommodating over 80% of the population.
The rebate is part of the government’s broader strategy to provide targeted assistance and reflects a commitment to alleviate cost-of-living pressures. For many homeowners, this will result in lower property tax bills in 2025, offering a temporary reduction in financial obligations. The rebate applies exclusively to owner-occupied residential properties and will be deducted directly from the property tax payable, making it a straightforward and accessible benefit for eligible individuals.
Some home owners will pay lower property taxes, after the annual value bands for owner-occupied residential properties are raised from Jan 1, 2025. The lowest threshold will be raised from $8,000 to $12,000, and the highest band raised from over $100,000 to over $140,000 from 2025.
With the change, home owners can expect to pay the same or lower property taxes, according to the Ministry of Finance (MOF). This is assuming their property’s annual value remains the same, and before factoring in any rebates.
A property’s annual value is its estimated yearly rent if it were to be leased out, and is determined based on market rents of comparable properties and other factors. The annual value is assessed for the purpose of property taxes, which are Singapore’s primary means of taxing wealth and are paid yearly.
2025 Property Tax Rebate
The 2025 Property Tax Rebate is a one-time initiative introduced by the Singapore government to provide financial relief to homeowners amidst rising living costs. All owner-occupied HDB flats will benefit from a 20% rebate on their property taxes, while owner-occupied private residential properties will receive a 15% rebate, capped at S$1,000. This rebate will be automatically applied to property tax bills in 2025, requiring no action from homeowners. The rebate is designed to ensure that a broad base of property owners receives meaningful support, particularly those in owner-occupied homes, who make up a significant portion of Singapore’s residential property market.
HDB flats (Housing and Development Board flats) are public housing units in Singapore, built and managed by the Housing and Development Board (HDB). These flats are the primary type of housing in the country, accommodating over 80% of the population.
The rebate is part of the government’s broader strategy to provide targeted assistance and reflects a commitment to alleviate cost-of-living pressures. For many homeowners, this will result in lower property tax bills in 2025, offering a temporary reduction in financial obligations. The rebate applies exclusively to owner-occupied residential properties and will be deducted directly from the property tax payable, making it a straightforward and accessible benefit for eligible individuals.
Employment and Workplace Policies
Changes in 2025 will reshape employment standards and workplace fairness in Singapore. Stricter Employment Pass criteria and new Workplace Fairness Legislation will ensure merit-based opportunities, protect employees, and support workforce development.
Employment pass criteria
Singapore is set to implement significant changes to its employment pass criteria in 2025, impacting foreign professionals seeking to work in the country.
Changes in 2025 will reshape employment standards and workplace fairness in Singapore. Stricter Employment Pass criteria and new Workplace Fairness Legislation will ensure merit-based opportunities, protect employees, and support workforce development.
Employment pass criteria
Singapore is set to implement significant changes to its employment pass criteria in 2025, impacting foreign professionals seeking to work in the country.
1. Increased Minimum Salary Requirements for Employment Passes
2. Implications for Employers and Foreign Professionals
Workplace Fairness Legislation
The new Workplace Fairness Legislation (“WFL”) is set to be passed possibly in early 2025. Businesses will need to prepare for the implementation of the WFL by reviewing their existing policies and practices to ensure they align with both the existing Tripartite Guidelines on Fair Employment Practices and the WFL. This involves ensuring, at any stage of the employment process (e.g., recruitment, promotion or even termination), that individuals are assessed on a fair, merit-based approach, rather than their personal characteristics, especially the specified protected characteristics. Grievance- and dispute-handling processes should also be reviewed to ensure that clear guidelines are in place. The introduction of the WFL signals a cultural shift in the way work is perceived and managed, and reinforces Singapore’s commitment to meritocracy.
The WFL will establish a formal grievance procedure for employees to report instances of workplace discrimination. This will create a clearer and more defined process for handling complaints, addressing the current ambiguity in resolving such issues. Employees who believe they have been discriminated against will benefit from a more transparent and efficient investigation process, with established timelines for employer responses to ensure timely resolutions.
Further, employers will be prohibited from retaliating against workers who report workplace discrimination and harassment. The WFL will define retaliatory actions to include:
Payroll and Retirement Updates
Singapore’s payroll and retirement systems are undergoing significant updates to improve compliance and retirement adequacy. Digitalization of payroll processes and adjustments to CPF contributions will streamline operations and provide stronger financial security for workers.
Payroll Compliance 2025
Payroll compliance is not just about avoiding penalties; it’s about building trust with your employees. In 2025, Singapore is set to implement changes that will impact how companies handle payroll, making it essential for businesses to stay updated. Understanding these laws helps protect your company from legal issues and demonstrates your commitment to ethical business practices.
The Employment Act of Singapore governs the basic terms and conditions of employment, including salary payment. It is vital to understand which employees are covered under this act and what your obligations entail. For instance, employees earning less than $4,500 are guaranteed specific protections under this act. Familiarizing yourself with these stipulations is essential to ensure your business operations are legally sound.
In 2025, Singapore will introduce several updates to its payroll laws, reflecting the evolving workplace landscape. These changes aim to address issues such as fair wages, working hours, and employee benefits. It’s crucial for employers to stay informed about these updates to maintain compliance and ensure their payroll systems align with the new regulations.
One significant change involves the introduction of digital payslips. This move towards digitalization enhances record-keeping and compliance, making it easier for both employers and employees to access payroll information. Additionally, changes in tax regulations and CPF contributions are expected, requiring businesses to adapt their payroll processes accordingly.
Central Provident Fund (CPF) Contribution Rate Adjustments
Starting on January 1, 2025, adjustments to the Central Provident Fund (CPF) contribution framework in Singapore will take effect as part of the government’s broader strategy to enhance retirement adequacy for workers. A key component of these changes is the progressive increase in the CPF Ordinary Wage ceiling, which will rise from the current SGD 6,000 to SGD 7,400 in 2025, with a further increase to SGD 8,000 by 2026. This adjustment reflects Singapore’s effort to ensure that CPF contributions are more aligned with prevailing wage levels, enabling individuals to save more for their retirement.
In addition to raising the Ordinary Wage ceiling, the government is also exploring potential revisions to CPF contribution rates for older workers. These changes aim to bolster retirement savings for Singapore’s aging workforce, ensuring that older employees are better prepared for financial stability post-retirement. By gradually increasing contribution rates for older workers, the CPF system seeks to address concerns about retirement adequacy in light of rising life expectancy.
For employers, these changes will require updates to payroll systems to accommodate the new wage ceilings and any associated adjustments to CPF contribution rates. Companies must ensure compliance with these new regulations to avoid penalties while maintaining smooth payroll operations. On the other hand, employees should prepare for changes to their take-home pay as a higher proportion of their earnings will be allocated to CPF accounts. While this may slightly reduce immediate disposable income, the increase in CPF contributions will significantly enhance long-term retirement savings.
Singapore’s CPF Special Account Closure
In January 2025, Singapore’s Central Provident Fund (CPF) will close the Special Account (SA) for members aged 55 and above. This move will transfer SA funds to members’ Retirement Accounts (RA), up to the Full Retirement Sum (FRS) for their cohort, while any excess savings will go to the Ordinary Account (OA).
Upon turning 55, members’ CPF savings are consolidated into a new Retirement Account, which funds monthly payouts under the CPF LIFE annuity scheme. The FRS is central to this process. In 2025, the FRS will be set at S$205,800 (US$153,000), providing retirees with adequate monthly payouts for life under CPF LIFE.
The changes also have implications for businesses, particularly in terms of supporting employees during the transition. Companies may need to invest in educational resources to help employees understand how the changes affect their CPF savings. Hosting workshops, sharing informational materials, or providing access to financial advisors could ensure a smoother transition.
- Effective January 1, 2025: The minimum qualifying salary for new Employment Pass (EP) applicants will rise from the current SGD 5,000 to SGD 5,600 per month. For the financial services sector, this threshold will increase from SGD 5,500 to SGD 6,200. These adjustments aim to ensure that EP holders are truly high-caliber professionals and to maintain fair employment opportunities for local residents.
- Age-Adjusted Salary Criteria: Older applicants, particularly those in their 40s, will face higher qualifying salary thresholds, reflecting the expectation of higher wages commensurate with greater experience and seniority. For instance, candidates over 40 years old may need to earn at least SGD 10,700 monthly, or SGD 11,800 in the financial sector.
2. Implications for Employers and Foreign Professionals
- For Employers: Companies will need to reassess their compensation packages to meet the new EP criteria, which may lead to increased operational costs. Employers are encouraged to invest in training programs to elevate the skills of local employees, aligning with national workforce development goals.
- For Foreign Professionals: Prospective EP applicants must ensure their offered salaries meet the updated thresholds. Those currently holding EPs should be aware that renewal applications may also be subject to the new criteria, necessitating discussions with employers about potential salary adjustments.
Workplace Fairness Legislation
The new Workplace Fairness Legislation (“WFL”) is set to be passed possibly in early 2025. Businesses will need to prepare for the implementation of the WFL by reviewing their existing policies and practices to ensure they align with both the existing Tripartite Guidelines on Fair Employment Practices and the WFL. This involves ensuring, at any stage of the employment process (e.g., recruitment, promotion or even termination), that individuals are assessed on a fair, merit-based approach, rather than their personal characteristics, especially the specified protected characteristics. Grievance- and dispute-handling processes should also be reviewed to ensure that clear guidelines are in place. The introduction of the WFL signals a cultural shift in the way work is perceived and managed, and reinforces Singapore’s commitment to meritocracy.
The WFL will establish a formal grievance procedure for employees to report instances of workplace discrimination. This will create a clearer and more defined process for handling complaints, addressing the current ambiguity in resolving such issues. Employees who believe they have been discriminated against will benefit from a more transparent and efficient investigation process, with established timelines for employer responses to ensure timely resolutions.
Further, employers will be prohibited from retaliating against workers who report workplace discrimination and harassment. The WFL will define retaliatory actions to include:
- Wrongful dismissal;
- Harassment;
- Unauthorized salary deduction;
- Unreasonable denial of re-employment; and
- Any other action aimed to victimize the employee.
Payroll and Retirement Updates
Singapore’s payroll and retirement systems are undergoing significant updates to improve compliance and retirement adequacy. Digitalization of payroll processes and adjustments to CPF contributions will streamline operations and provide stronger financial security for workers.
Payroll Compliance 2025
Payroll compliance is not just about avoiding penalties; it’s about building trust with your employees. In 2025, Singapore is set to implement changes that will impact how companies handle payroll, making it essential for businesses to stay updated. Understanding these laws helps protect your company from legal issues and demonstrates your commitment to ethical business practices.
The Employment Act of Singapore governs the basic terms and conditions of employment, including salary payment. It is vital to understand which employees are covered under this act and what your obligations entail. For instance, employees earning less than $4,500 are guaranteed specific protections under this act. Familiarizing yourself with these stipulations is essential to ensure your business operations are legally sound.
In 2025, Singapore will introduce several updates to its payroll laws, reflecting the evolving workplace landscape. These changes aim to address issues such as fair wages, working hours, and employee benefits. It’s crucial for employers to stay informed about these updates to maintain compliance and ensure their payroll systems align with the new regulations.
One significant change involves the introduction of digital payslips. This move towards digitalization enhances record-keeping and compliance, making it easier for both employers and employees to access payroll information. Additionally, changes in tax regulations and CPF contributions are expected, requiring businesses to adapt their payroll processes accordingly.
Central Provident Fund (CPF) Contribution Rate Adjustments
Starting on January 1, 2025, adjustments to the Central Provident Fund (CPF) contribution framework in Singapore will take effect as part of the government’s broader strategy to enhance retirement adequacy for workers. A key component of these changes is the progressive increase in the CPF Ordinary Wage ceiling, which will rise from the current SGD 6,000 to SGD 7,400 in 2025, with a further increase to SGD 8,000 by 2026. This adjustment reflects Singapore’s effort to ensure that CPF contributions are more aligned with prevailing wage levels, enabling individuals to save more for their retirement.
In addition to raising the Ordinary Wage ceiling, the government is also exploring potential revisions to CPF contribution rates for older workers. These changes aim to bolster retirement savings for Singapore’s aging workforce, ensuring that older employees are better prepared for financial stability post-retirement. By gradually increasing contribution rates for older workers, the CPF system seeks to address concerns about retirement adequacy in light of rising life expectancy.
For employers, these changes will require updates to payroll systems to accommodate the new wage ceilings and any associated adjustments to CPF contribution rates. Companies must ensure compliance with these new regulations to avoid penalties while maintaining smooth payroll operations. On the other hand, employees should prepare for changes to their take-home pay as a higher proportion of their earnings will be allocated to CPF accounts. While this may slightly reduce immediate disposable income, the increase in CPF contributions will significantly enhance long-term retirement savings.
Singapore’s CPF Special Account Closure
In January 2025, Singapore’s Central Provident Fund (CPF) will close the Special Account (SA) for members aged 55 and above. This move will transfer SA funds to members’ Retirement Accounts (RA), up to the Full Retirement Sum (FRS) for their cohort, while any excess savings will go to the Ordinary Account (OA).
Upon turning 55, members’ CPF savings are consolidated into a new Retirement Account, which funds monthly payouts under the CPF LIFE annuity scheme. The FRS is central to this process. In 2025, the FRS will be set at S$205,800 (US$153,000), providing retirees with adequate monthly payouts for life under CPF LIFE.
The changes also have implications for businesses, particularly in terms of supporting employees during the transition. Companies may need to invest in educational resources to help employees understand how the changes affect their CPF savings. Hosting workshops, sharing informational materials, or providing access to financial advisors could ensure a smoother transition.
Legal and Financial Modernization
Singapore’s legal and financial infrastructure is set for modernization in 2025. The updated SIAC Rules will streamline arbitration processes, while the rollout of EDP systems will accelerate the transition to a fully digital payment ecosystem.
The SIAC Rules 2025: modernizing the arbitral process
On 9 December 2024, the Singapore International Arbitration Centre (SIAC) announced the new 2025 Arbitration Rules, set to take effect on 1 January 2025, alongside a revised Schedule of Fees. These updates aim to modernize the arbitration process, enhance procedural efficiency, and maintain the integrity of arbitral proceedings. Notable features include the introduction of a Streamlined Procedure for disputes under S$1,000,000, an increase in the threshold for the Expedited Procedure to S$10,000,000, and a new mechanism for Coordinated Proceedings to address common legal or factual issues across multiple arbitrations.
The Emergency Arbitrator mechanism has been refined, allowing parties to apply for interim relief prior to filing a Notice of Arbitration and introducing the option for ex parte protective preliminary orders. These measures provide greater flexibility and responsiveness in urgent situations. Additionally, the 2025 Rules address longstanding ambiguities by explicitly detailing procedures for security for costs and claims and introducing provisions for preliminary determinations to resolve issues early in the proceedings.
Other significant changes include updates on Tribunal Secretaries, mandatory disclosure of third-party funding agreements, and a focus on procedural transparency, such as clearer guidelines for the amendment of Notices of Arbitration and rules for remote or hybrid hearings. The integration of the SIAC Gateway for case management and expanded provisions on data protection further reflect SIAC’s commitment to aligning with global best practices and promoting user-friendly arbitration processes.
For businesses, the 2025 SIAC Rules bring significant improvements to arbitration efficiency and cost management. The new Streamlined Procedure allows companies to resolve smaller disputes (under S$1,000,000) quickly and cost-effectively, relying solely on written submissions, with awards issued within three months. Additionally, the Coordinated Proceedings mechanism simplifies handling multiple arbitrations involving similar issues, reducing duplication and delays. Businesses relying on third-party funding must now disclose funding agreements upfront, ensuring transparency and minimizing conflicts of interest. These changes collectively make arbitration more predictable, cost-efficient, and business-friendly.
New Electronic Deferred Payment (EDP)
The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) announced that two new payments solutions will be launched in mid-2025 to support the transition to e-payments for both corporate and retail cheque users. These solutions will complement Singapore's existing suite of e-payment modes, including PayNow, FAST, GIRO and MEPS+. To allow corporations sufficient time to adopt these new solutions, MAS and ABS have also announced a one-year extension of the deadline to cease processing of corporate cheques.
To provide greater convenience to corporates and individuals, ABS, in partnership with the Domestic Systemically Important Banks (D-SIBs) , will be launching the new EDP and EDP+ solutions in mid-2025 to address the use cases of post-dated payments and transactions requiring greater certainty of payment respectively. Both EDP and EDP+ will be accessible via digital banking platforms, and will leverage PayNow to allow payers to identify payees conveniently when making payments via either solution. MAS encourages all cheque users to adopt these e-payment alternatives once they are made available.
NB! The information provided in this article is for general informational purposes only and does not constitute legal advice. While we strive to ensure the content is accurate and up-to-date, it should not be relied upon as a substitute for professional consultation. For personalized advice or assistance with legal matters, please contact our specialists directly.
Singapore’s legal and financial infrastructure is set for modernization in 2025. The updated SIAC Rules will streamline arbitration processes, while the rollout of EDP systems will accelerate the transition to a fully digital payment ecosystem.
The SIAC Rules 2025: modernizing the arbitral process
On 9 December 2024, the Singapore International Arbitration Centre (SIAC) announced the new 2025 Arbitration Rules, set to take effect on 1 January 2025, alongside a revised Schedule of Fees. These updates aim to modernize the arbitration process, enhance procedural efficiency, and maintain the integrity of arbitral proceedings. Notable features include the introduction of a Streamlined Procedure for disputes under S$1,000,000, an increase in the threshold for the Expedited Procedure to S$10,000,000, and a new mechanism for Coordinated Proceedings to address common legal or factual issues across multiple arbitrations.
The Emergency Arbitrator mechanism has been refined, allowing parties to apply for interim relief prior to filing a Notice of Arbitration and introducing the option for ex parte protective preliminary orders. These measures provide greater flexibility and responsiveness in urgent situations. Additionally, the 2025 Rules address longstanding ambiguities by explicitly detailing procedures for security for costs and claims and introducing provisions for preliminary determinations to resolve issues early in the proceedings.
Other significant changes include updates on Tribunal Secretaries, mandatory disclosure of third-party funding agreements, and a focus on procedural transparency, such as clearer guidelines for the amendment of Notices of Arbitration and rules for remote or hybrid hearings. The integration of the SIAC Gateway for case management and expanded provisions on data protection further reflect SIAC’s commitment to aligning with global best practices and promoting user-friendly arbitration processes.
For businesses, the 2025 SIAC Rules bring significant improvements to arbitration efficiency and cost management. The new Streamlined Procedure allows companies to resolve smaller disputes (under S$1,000,000) quickly and cost-effectively, relying solely on written submissions, with awards issued within three months. Additionally, the Coordinated Proceedings mechanism simplifies handling multiple arbitrations involving similar issues, reducing duplication and delays. Businesses relying on third-party funding must now disclose funding agreements upfront, ensuring transparency and minimizing conflicts of interest. These changes collectively make arbitration more predictable, cost-efficient, and business-friendly.
New Electronic Deferred Payment (EDP)
The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) announced that two new payments solutions will be launched in mid-2025 to support the transition to e-payments for both corporate and retail cheque users. These solutions will complement Singapore's existing suite of e-payment modes, including PayNow, FAST, GIRO and MEPS+. To allow corporations sufficient time to adopt these new solutions, MAS and ABS have also announced a one-year extension of the deadline to cease processing of corporate cheques.
To provide greater convenience to corporates and individuals, ABS, in partnership with the Domestic Systemically Important Banks (D-SIBs) , will be launching the new EDP and EDP+ solutions in mid-2025 to address the use cases of post-dated payments and transactions requiring greater certainty of payment respectively. Both EDP and EDP+ will be accessible via digital banking platforms, and will leverage PayNow to allow payers to identify payees conveniently when making payments via either solution. MAS encourages all cheque users to adopt these e-payment alternatives once they are made available.
NB! The information provided in this article is for general informational purposes only and does not constitute legal advice. While we strive to ensure the content is accurate and up-to-date, it should not be relied upon as a substitute for professional consultation. For personalized advice or assistance with legal matters, please contact our specialists directly.
How We Can Help
Our team of experts is here to provide tailored support to help you adapt to the evolving landscape in 2025. Here’s how we can assist:
Our team of experts is here to provide tailored support to help you adapt to the evolving landscape in 2025. Here’s how we can assist:
- Tax Advisory Services: Guidance on BEPS 2.0 compliance, tax optimization, and maximizing benefits from the Refundable Investment Credit (RIC).
- Legal and Employment Consulting: Assistance with adapting to Workplace Fairness Legislation and updated Employment Pass criteria.
- Property Tax Planning: Support in understanding and applying the 2025 Property Tax Rebate and revised Annual Value (AV) bands.
- Custom Solutions: Tailored strategies to address sector-specific challenges and opportunities, from arbitration to sustainability initiatives.