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Five Tips to Reduce Business Costs in Singapore

December 2, 2014 | Sharon Cheong

Singapore is considered by many to be the business hub of the world. The city has been voted as the number one location in the world to do business for the second year running by the Economist Intelligence Unit.  With so many businesses looking to gain a foothold in this prominent location, rental prices for suitable business premises look certain to remain high. However, this has not had an effect on the city itself and indeed the businesses within it. There are a number of reasons for the popularity of Singapore in terms of business opportunities. Perhaps the two most prominent factors concern the favorable government polices relating to finance and investment. With business costs a lot higher than many other locations within South East Asia, ensuring measures are taken to maximize investment is certainly an important factor. 

Reducing office overheads 

If your business utilizes an office, there are a whole host of ways to reduce the associated running costs. Purchasing used IT equipment and software is a great place to start. The savings that can be made by doing this are substantial. Another way to reduce office costs is in relation to staffing. Consider employing an adequate number of core personnel that is supplemented by agency staff when the workload is high. This can save you money on employee benefits and prevents your business being overstaffed during quieter periods. 

Recruiting staff 

With a high number of recent graduates in Singapore, the possibility of finding a highly-qualified individual looking for their first job is high. In many cases, graduates will work for a lower amount than established professionals. They are keen to get a foot on the employment ladder and welcome opportunities. This could be a great way to get a keen, ambitious employee at a reduced cost. 

Tax reductions are extremely valuable 

There are many ways to ensure that you receive tax reductions through deductible expenses. In Singapore, many business meetings take place at hotels and restaurants. Hosting clients at such places can be a way in which to reduce the cost of business tax. Ensure that all bills and receipts are signed and kept in a safe place. They can all be used as deductible times on your tax payment. Find out how much other businesses in the area are paying for their tax and ensure that you are paying similar values. If you are not, find out the reason for this. 

Small financial considerations 

In order to maximize your company profits, ensure that your banking is completed in the morning. Depositing funds into a bank early ensures that your money starts accruing interest immediately. If you have a credit agreement with other businesses, look at other options to avoid paying unnecessary interest. There may be other businesses offering similar services at lower rates. 

The cost of hiring professionals 

Hiring a professional of any sort can be a costly expense. If you are familiar with individuals such as your accountant, insurance agent or solicitor, ask them for favorable rates. If you have a good relationship with them they may be able to look at ways to do this. Do you hire a professional for press releases, company newsletters and other media items? You could save money by learning how to do this yourself. Perhaps employ a professional on a temporary basis to gain an insight into the creation process and then take up the role yourself. 

Servcorp offers executive office rentals and meeting rooms for businesses in Singapore. They also specialize in both serviced and virtual offices for businesses of all sizes.