Logistics & transportation

Warehouse is one of the most crucial assets of a logistics company. Companies need to assess the needs of their current and future operations, before they consider to buy or build a warehouse.

Each warehouse is different and presents its own set of challenges and limitations. Companies would also often set up warehouses in multiple regions to facilitate international transport. Regional countries such as China, Indonesia and Thailand are attractive locations to set up warehouses.

For logistics companies operating in more than one country, there are local factors that these companies must consider. These include the costs of construction of a warehouse at specific locations, valuation of existing warehouses, and alignment of the company’s current and future operations. Managers must weigh the costs versus benefits and take their specific business requirements into consideration when deciding to build or buy a warehouse.  

We can assist you in these critical areas:

• Features of a warehouse that are critical to the company’s operations
• Advice on financing a company’s buying/building project
• Advice on the fair value of the warehouse a company is keen to acquire
• Advice on the unique taxation and accounting issues to note of to ensure compliance
• Advice on the unique administrative procedures in areas such as establishment, taxation, employment and liquidation

Find out more about our advisory services.

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Download your complimentary guides: 

A Handy Guide to Doing Business in China

Doing Business in ASEAN Guidebook

Arrangement for FRS 116 leasing (aircrafts/ vessels/ trucks)

With effective from financial periods beginning 1 January 2019, FRS 116 Leases no longer makes a distinction between operating and finance lease to a lessee. With significant change in lessee accounting, this can pose major challenges on how lessees account for their future leases. This is a costly exercise, especially for logistics companies with large amount of lease contracts related to aircrafts, vessels and/or trucks.  

We help you to understand the implications and resolve challenges surrounding FRS 116:

• The overall impact from adopting FRS116 accounting treatment on your company
• Outsourcing of accounting functions to ensure smooth adoption process
• Training of accounting staff

Find out more about our audit and assurance services. 

A logistics operation manager’s typical workday may include supervision of fleet safety, manpower, cross-verification of route maps, and authorisation of fuel expenses. These processes that involve crunching large amount of data can be tedious and mentally exhausting, especially if manually carried out. This may potentially compromise the attention to details, leading to inaccurate data processing.

By outsourcing the various data processing tasks to us, you can better focus on implementing strategies and improving business processes, rather than managing non-core activities such as administrative work.

We provide a range of data processing services to support your needs:

• Outsourcing of payroll and HR functions
• Solutions on IT to improve operational efficiency and effectiveness
• Get rapid access to high-calibre professionals for your short- long-term manpower needs

Find out more about our business solutions service. 

One of the most critical items on the P&L expenses of a logistics company is fuel, which makes one of the largest components of the fleet budget. The operations of a logistics company very much depends on fuel. The rising fuel cost can impact the profitability of the business. While the price of crude oil is much cheaper in the previous years, the price today is still sensitive to economic fluctuations. This may pose great uncertainties for managers in cost accounting. 

To save cost, in the long run, logistics companies should consider hedging their exposure to the rise of aviation fuel by the use of options. Conversely, they should invest in more fuel-efficient vehicles, such as biodiesel and electric vehicles to lower the fuel cost. Besides cost efficiency, switching to alternative fuels would also help contain environmental pollution.

Increase use of route optimisation and mobile apps can also positively impact fleet fuel budgets.

Our advisory professionals are able to help you in the following areas:

• Identify the key energy costs in logistics and transportation business
• Carry out commodity hedging
• Possible modifications to the business model to manage fleet budget more effectively

Find out more about our advisory services. 

Application for tax exemptions for shipping companies (under Section 13A  and 13F of the Income Tax Act)

Shipping companies can be exempted from tax for certain types of income-earning activities provided by the Singapore Income Tax Act (ITA). Section 13A applies to shipping companies operating Singapore-registered ships in international waters for income derived from specified list of activities. Section 13A also applies to companies operating foreign ships, specifically for income derived from freight uplift from Singapore, with certain exceptions. 

Additionally, Section 13F applies to international shipping companies approved under the “Maritime Sector Incentive – Approved International Shipping Enterprise award (MSI-AIS)” and operating ships plying in international waters. The tax exemption under Section 13F also only applies to income derived from specified list of activities.

Our tax professionals will help you in these areas:

• Criteria for tax exemption on income under Section 13A/13F
• Procedures to apply for the tax incentives
• Financial and tax implications of your company

Find out more about our taxation services.

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Download your complimentary copy of our Singapore Budget 2023 Tax Highlights.

As your company grows, there is a need to restructure your business and expand overseas operations in order to realise the opportunities present in the international markets, such as  China and Southeast Asian markets which are attractive investment destinations. However, there are also challenges in entering such markets due to the complex economic, legal and regulatory environment.

Having helped many clients go international, you can tap into the knowledge and experience we amassed and walk you through critical questions as you map your way into the competitive marketplace.

We can help you in the following areas:

• Suggest the type of entity most suitable for your business
• Recommend tax and accounting methods to ensure compliance with the authorities
• Advise administrative procedures in areas such as establishment, taxation, employment and liquidation
• Exercise intellectual property rights

Learn more about our advisory services. 

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Download our guidebooks:

Learn how to do business in China and ASEAN in our complimentary guides:

A Handy Guide to Doing Business in China 

Doing Business in ASEAN Guidebook 

Data protection from cyberattacks and data thefts

While technology has become increasingly important to improve business operations and efficiency, companies are also becoming more vulnerable to cyberattacks and data thefts. Industries such as logistics and transportation that handle large amount of information, partners, customers and suppliers can be vulnerable to cyber criminals exploiting to gain access to their systems. With the growing dependence on digitalised solutions, it is important that logistics companies safeguard their data and implement measures to counter these threats.

We can assist you to address the following concerns:

• Your current IT system’s vulnerability to cyber threats
• Advice on available hardware and software options to better safeguard your company’s data

Find out more about out technological advisory services.

Singapore has been among the top three countries in the Global Talent Competitiveness Index in Asia-pacific for six consecutive years[1]. With a well-developed infrastructure, financial and education system, Singapore attracts a large number of expatriates to move and work in Singapore every year. Companies hiring foreign staff are required to comply with the regulations given by the Ministry of Manpower (MOM).  

When making a decision to acquire a business, it is crucial to identify the fair value of the business and valuate its worth. In the logistics industry, tremendous amount of time and effort are required to correctly assess the value based on the various components – large and complex systems of physical equipment and facilities, intangible intellectual property, and customer network. Potential cost, revenue and financial synergies need to be assessed. Similarly, the risks involved from the acquisition of a logistics business need to be carefully considered to unlock the true value of the deal.

We can assist you in these areas:

• Advise on the acquisition consideration of a logistics business
• Advise on identifying synergies (from the acquired business) that complement your current business model
• Assess the potential risks associated with acquisition of a logistics business

Find out more about our valuation advisory services.

Proven Track Record

Our clients are involved in facilitating movements of goods worth billions of dollars around the globe annually, through land, sea and air. Our extensive industry experience includes assisting clients, both listed and private, in various aspects as their businesses grow. This includes, among others, the following:

• Assisted a marine supply logistic company in its successful IPO;
• Assisted a commodity-trading company in the successful application of the global trader programme;
• Provided a Singapore-based warehousing and logistics solutions provider with an international footprint to restructure its operations, separating warehouse properties ownership from the logistics business, in preparation for interested investors;
• Carried out due diligence review on a specialist warehousing and logistics solutions provider with a service network that spans more than 10 countries in Asia and Australia;
• Conducted IT due diligence review on a Singapore-based logistics company that has operational presence in more than 15 countries throughout the Asia-Pacific region;
• Provided transaction support to a petroleum trading and shipping group to divest a minority stake to a private equity group; andSet up the enterprise risk management framework of a listed company.

We offer a comprehensive one-stop suite of services tailored to meet the needs of our clients. Our team of experts forms the backbone of our five pillars of service and is driven by one objective - to unveil new channels of growth.