Dear Valued Customers,
Welcome to Our March Newsletter 2025
Welcome to the March edition of our newsletter! As we step into a new season full of opportunities and growth, we’re excited to share the latest updates, highlights, and happenings with you.
We’ve been very busy across our main hubs like Singapore, Malaysia, Hong Kong and Indonesia, so let’s check in with some of the highlights for this month across the different hubs.
Singapore’s 2025 Budget Targets Key measures for Workforce Resilience
Singapore is setting up its game as it introduces key initiatives in its Singapore Budget 2025 to support recruitment. Employees will have a lot to be happy about as these measures are expected to be a game changer, helping business access talent at lower costs while simultaneously fostering an inclusive workforce.
When they say an inclusive workforce, they mean it! Part of these new initiatives will support older workforce and ex-offenders. They will receive enhanced employment support. For example, wage support will include the extension of the Senior Employment Credit (SEC) until the end of 2026. This will offer wage offsets for hiring Singaporeans aged 60 and above who are earning under S$4,000. The highest wage support tier now applies to workers aged 69 and above.
Come March, the SkillsFuture Level-Up Programme will offer a training allowance of up to $3,000 per month for full-time courses, claimable for up to 24 months. A very exciting time for employees in Singapore!
Malaysia’s JS-SEZ Businesses and Knowledge Workers to Benefit from Lower Tax Rates
The newly established Johor Singapore Special Economic Zones (JS-SEZ) will offer incentives like reduced tax rates for businesses and knowledge workers. This initiative is part of Malaysia and Singapore’s collaborative efforts to attract more quality investments into the respective countries.
JS-SEZ knowledge workers who qualify can get a 15% tax rate for up to ten years. The tax incentives for knowledge workers is a smart move towards building a thriving ecosystem of knowledge-intensive businesses, as it assures long-term economic stability and maintains the country as an attractive place for talent and investment. Businesses operating in specific flagship areas of the JS-SEZ are entitled to additional benefits tailored to their business segments.
Hong Kong Reports Record Rise in Local and Foreign Businesses in 2024
There’s been a considerable boost in the number of local and foreign businesses recorded in Hong Kong for 2024, helping the city retain its status as a global business hub. Local businesses, particularly startups, have enjoyed significant growth, particularly in health, medicine, and environmentally responsible technology. The number of startups’ employees has increased by 7% this year and by an astounding 65% since 2020.
According to the most recent data from Invest Hong Kong (InvestHK), in 2024, the city hosted 9,960 foreign-owned enterprises, a 10% year-on-year growth, and 4,694 startups, a record high for both categories. To ensure this expansion continues, InvestHK has assisted more than 500 businesses in establishing new operations or expanding existing ones in 2024, a fifty per cent increase from the previous year. If you were ever thinking about starting a business in Hong Kong, this should tell you that the answer is a resounding yes!
Retirement Age In Indonesia Raised to 59
The Indonesian government recently announced that starting January 1, 2025, Indonesian workers in BPJS Ketenagakerjaan’s pension program must wait until they are 59 to receive benefits. The amendment follows Government Regulation (PP) No. 45, which gradually raises the retirement age for program participants. Indonesia predicts its life expectancy to reach 74 years in 2024 primarily due to improved healthcare services and affordable medical insurance from state insurer BPJS Kesehatan.
The new retirement age meant that workers who retire earlier than 59 can only access their pension funds when they reach 59 and have no effect on retiree benefits or employer contributions. The current pension contributions are 3% of the worker’s pay, split between the employer contributing 2% and the employee contributing 1%.
That’s all from us here at 3E Accounting for this month. We look forward to seeing what April has in store!
Thank you.
Abigail Yu
Director, 3E Accounting Group
Read More in our E-Newsletter March 2025.
