The Singapore Government is to pass new laws and introduce initiatives to help push the growth of electronic commerce in the Asian region. The country’s National Computer Board will announce legislative guidelines to be considered when the Electronic Transactions Bill is put before Parliament. Singapore wants to establish itself as a major electronic commerce hub and intends to attract major outside entities to conduct their electronic commerce transactions via Singapore. Guidelines present in the new bill are intended to attract and encourage companies to participate in the ever growing electronic trade boom. To help entice companies to conduct their business over the internet, the Singapore government is offering a concessionary tax rate of 10% on offshore trading income derived from electronic commerce, as well as an investment allowance of up to 50% on fixed investments for a period of five years. Online orders reap $18m a year in Singapore, but that figure is expected to increase 100-fold in the next five years. The government is set firm on the belief that electronic commerce offers a host of new opportunities for Singapore businesses, and it wants to do everything it can to encourage its use.
