Minister Lim Hng Kiang's written reply to Parliament Questions on Non-Profit and Non-Government Organisations

Question No 675 of Notice Paper No 146 of 2008

Name and Constituency of Member of Parliament
Miss Penny Low, Member for Pasir Ris-Punggol GRC.

Question
To ask the Minister for Trade and Industry (a) if he will provide an update on the plan to attract non-profit and non-government organizations (NPOs/ NGOs) to Singapore; (b) what are the avenues of assistance given by SPRING, IE Singapore and EDB to foreign and local NPOs and NGOs; and (c) how can existing NPOs and NGOs work with the Ministry to develop this emerging sector.

Answer
Singapore’s strong business and financial infrastructure, neutral location and pool of talent make it an attractive and competitive location for International Organizations (IOs) that are non-profit and non-governmental in nature. In 2007, there were 60 IOs in Singapore. This included major players from a variety of fields, such as the World Intellectual Property Organization (WIPO), International Baccalaureate Organization (IBO) and the International Air Transport Association (IATA).

To further strengthen our efforts in attracting IOs, an International Organizations Programme Office (IOPO) was established last year. IOPO is led by EDB, with MAS, MFA, STB and several other agencies as partners. The type of IOs covered by the IOPO include inter-governmental organizations, non-governmental organizations (NGOs), foundations and other philanthropic organizations, industry associations, think-tanks, social enterprises and organizations dealing with corporate social responsibility.

The IOPO provides one-stop information and assistance to IOs. It also conducts marketing and outreach to promote Singapore as a premier base for IOs, and supports Singapore-based IOs to expand their regional or international operations.

There is a range of incentives available to IOs. The changes announced in Budget 2007 on fundraising and tax regulations for philanthropic organizations have helped to attract IOs. For example, all registered charities now enjoy automatic income tax exemption. For the other non-profit IOs without charity status, but who have regional or international charters that can bring economic value to Singapore, they can now apply to the IOPO for an income tax exemption for an initial period of not more than 10 years. These and other changes have been well-received. EDB also has start-up grants for qualifying IOs to build capability and undertake significant regional activities based out of Singapore. Such IOs may also qualify for support under STB’s Business Events in Singapore scheme.

We welcome IOs and local industry associations to work with government agencies to strengthen their organizations and the IO sector. For example, IE Singapore helps Singapore-based companies identify regional opportunities in partnership with IOs that provide assistance to developing countries, and helps IOs keep abreast of the capabilities, expertise and track record of Singapore-based companies. SPRING provides support to industry associations to develop roadmaps and development projects for our industry through its Local Enterprise and Association Development Programme (LEAD).

To date, the feedback and response from IOs is promising. The target is to have 150 IOs in Singapore by 2015. With the efforts of both the government agencies and the IOs, we are on track to seeing the emergence of a vibrant IO sector.