Expats guide to personal finance in Singapore

Singapore remains an attractive location for expats due to its English-speaking culture, world-class transportation system, low taxes and an overall safe environment. But moving to a new place also brings about lots of uncertainty and getting used to new laws and system. Our article today will help those who just moved here to navigate the essential financial services you'd need.

1. How do I set up a banking account?

If there's one thing to love about Singapore, it would be the efficiency of business operations. Opening a bank account here is a breeze – simply bring your employment pass, your local address and you can get it done almost immediately!

There are both foreign and local banks in Singapore, and the local ones, such as DBS, UOB and OCBC are highly regulated and considered very safe by credit agencies.

Some of you might be looking out for multi-currency accounts since you could be doing a lot of overseas transactions. Here are a few you might want to check out:

DBS Multi-Currency Autosave
UOB Global Currency Account
HSBC Multi Currency Savings Account
OCBC Global savings Account

2. Am I eligible for a credit card?

Credit cards are widely accepted in Singapore and give the card-holder a convenient way to make payments either physically or online. Singaporeans love credit cards because you can earn lots of cash rebates and even air miles, which can be very useful if you travel frequently.

Eligibility for the cards varies but the minimum requirement is usually an annual income of $30,000. However, you might need to wait for at least 3 to 6 months to allow the bank to have a good assessment of your monthly income before they approve your application if you've just moved to Singapore.

3. What type of insurance is available to an expat here?

Insurance solutions can be tricky here because those that cater to expats can be pretty expensive. However, international insurance is available and would cover you in various aspects from travel to medical to maternity. While you can get access to local insurance policies, coverage can vary for a foreigner.

4. How do I rent a property/room here?

For most expats, you are most likely going to rent a place to stay before you look at buying because you are not sure if your stay in Singapore will be for long. The rental market is pretty vibrant here and currently, rents are lower compared to a few years back since the property market is on a downtrend due to cooling measures implemented by the government.

You can easily search for a place by going through some of the property rental portals here, arrange for a visit with the agent before signing a contract. Popular portals include propertyguru, srx.com,sg, stproperty and stproperty.sg.

Most apartments require a minimum lease of one year and an upfront deposit equivalent to 1 or 2 months' rental. For foreigners, it is essential to have the diplomatic clause to be included in your tenancy contract. This clause helps to safeguard you in the event that you are no longer employed or transferred to other countries, allowing you to terminate the lease after 12 months by giving 2 months' notice.

5. Can I invest in Singapore shares?

Yes you can, and there are no capital gains taxes (unless you are U.S citizens) levied on your share-holdings. Simply open a trading account with your bank or a securities broker, such as Phillip Securities, OCBC Securities or DBS Vickers.

Your broker will advise you on the documents required, but they usually include the following:

- passport with 6 months validity
- supporting document for residential and mailing address
- recent bank statement of accounts

(By Lynette Tan)

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