Singapore and the UK – gateways for tech expansion into Asia and Europe

#LondonTechWeek , taking place 12-19 June, will see a wealth of international technology and innovative companies, including those from Singapore, travel to London to participate at the event.

Ahead of Tech Week, Hawksford ’s Salvatore Di Chiara , Associate Director, and Winnie Seow , Asia Market Lead, take look at the UK and Singapore technology sectors, and the opportunities available for tech companies looking to expand and grow in both markets.

If you’re a technology company considering international expansion, please reach out to us to find out how we can support you.

Overview

The UK and Singapore have a long-standing history in collaborating to drive forward the global innovation and technology sector. In 2016, the UK-Singapore FinTech Bridge was launched, marking the UK’s first ever Fintech Bridge. More recently, the UK and Singaporean Governments have signed up to the Digital Economy Agreement (UKSDEA) in 2022 – arguably the world’s most innovative digital trade agreement, given it comprises two of the most advanced digital trade nations globally.

The UKSDEA aims to promote seamless end-to-end digital trade between Asia and Europe through common and interoperable digital systems. It looks to ensure high standards in data protection to enable trusted data flows, and facilitate a trusted and secure digital environment for both companies and consumers between the two hi-tech services hubs.

Through the UKSDEA, the UK and Singapore will cooperate in promoting paperless trading and work together on new and emerging technologies. The trade deal is worth an estimated ￡9.4 billion according to Elizabeth Truss, former Secretary of State for Foreign, Commonwealth and Development Affairs.

Complementing the UKSDEA framework, both countries have signed six bilateral agreements covering fintech, digital custom, cybersecurity, digital identities and electronic trade documents.

What are the opportunities for the UK and Singapore businesses?

The UK and Singapore are two of the most innovative economies in the world and deepening ties enables businesses to further unlock the talent, creativity and technical know-how of the talent pool. The UK’s digital economy is valued at nearly ￡150 billion, while the Singapore’s digital economy is valued at nearly ￡15 billion.

By securing open digital markets, prompting the free flow of trusted data, and cutting red tape through overhauling outdated paper-based processes, businesses across the UK and Singapore can expand into these markets and thrive.

According to both governments, some of the key wins for the UK and Singapore digital economy players under the UKSDEA are as follows:

• Duty-free digital content: The free-flow of content across borders – whether in the form of an e-book or a music streaming service – is fundamental to open digital markets. The agreement guarantees the free flow of digital content between the UK and Singapore by ensuring that the content is not subject to customs duties. This guarantees lower costs for businesses and consumers of digital content.
• Data innovation: The agreement will promote data-driven innovation and support the cross-border electronic transfer of information. The UK and Singapore will do this by collaborating on data-sharing projects involving researchers, academics, and industry and with the possible use of regulatory sandboxes.
• Support for small and medium enterprises (SMEs): The UK and Singapore will tackle barriers to the participation of small and medium-sized enterprises (SMEs) in the digital economy, helping companies to take advantage of the vast opportunities offered by digital trade and the digital economy. This includes encouraging SME participation in platforms linking them with commercial contacts between the two markets.
• Paperless trading: Under the agreement, UK and Singapore businesses will be able to accept electronic versions of trade administration documents for efficient cargo clearance, and promote interoperability of electronic documents, such as bills of lading and invoices, to enable faster and cheaper transactions.
• Source code and algorithm protection: There is a commitment between the UK and Singapore to prohibit the mandatory disclosure of software source codes and algorithms as a condition of market access.
• New financial services: The UK and Singapore have also agreed to commitments strengthening our cooperation for innovative financial services. The UK and Singapore will seek to collaborate in areas such as fintech and regtech, financial integrity and stability, operational resilience, sustainability, and cross-border development of new financial services.

In a nutshell, the partnership between the UK and Singapore in the innovation and technology industry covers a wide range of areas. This ranges from data management and flow, research and development (R&D) for innovative solutions, opening up access to venture capital systems for potential investment, deepening knowledge transfer, and capability building to opening up further access for technology companies in both markets to expand and thrive.

How can we provide support?

As a member of techUK and a regular participant at London Tech Week, Hawksford has extensive expertise in local markets, robust structuring capabilities, and experience with international clients – all of which enables us to assist technology companies with starting and running a business in the UK and in Singapore.

Clients can benefit from our specialised sector experience across many industries, including the technology and innovation sector. We are experienced in working with entrepreneurs and growing businesses, and therefore understand the many issues faced by tech businesses and startups, such as managing rapid growth and developing an international approach from the onset.

Our support for technology companies seeking international expansion includes accounting and finance, payroll management, immigration services, tax compliance, company secretarial services and much more.

Case Study

Hawksford helped UK company RedCompass Labs to establish in Singapore

RedCompass Labs, a UK company, helps financial institutions deliver profitable, secure, end-to-end payments and financial crime services and solutions.?It uses data-led technologies and subject matter experts to provide delivery-focused consulting, and implementable strategy on complex payment transformation programmes.

With our expertise and personalised solutions, we assisted RedCompass Labs to successfully set up its business operations in Singapore. We prepared financial accounting reports, took care of payroll and completed tax filings to alleviate any administrative burdens, so that the client could solely focus on growing its businesses.

We enjoyed the comprehensive services of Hawksford, from advising us on entity setup to securing employment passes. Their team made managing the entity setup across different time zones straightforward and were always available for prompt responses to our questions.

Andrew Ingle-Finc, Head of Finance and Corporate Development, RedCompass Labs

Our experts from Singapore and the UK will be attending #London #TechWeek . If you’re a technology and innovation company looking to expand into the UK or Singapore market, please contact Salvatore Di Chiara or Winnie Seow to find out how we can support you with your expansion plans, or visit?hawksford.com .

?

?