Mazars, the international audit, tax and advisory firm releases the Singapore edition of its global report ‘Unlocking trust: why global compliance is on the business agenda’.
The global study is based on a survey of 892 senior accounting and tax compliance professionals working in multinational companies from 25 countries, including 251 in APAC and 51 in Singapore. The findings highlight the opportunities and risks associated with compliance now and in the future.
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Opportunity to create value
Compliance leaders in Singapore tend to see compliance as an opportunity creator rather than just an obligation: 55 per cent agree with this view. The opportunities compliance presents are significant: to create trust, bolster confidence and build a reputation. Valuable prizes are on offer for meeting compliance requirements: 69 per cent feel good compliance increases investor confidence; 61 per cent say it helps build a good reputation and 64 per cent say it increases client or customer trust.
Businesses put senior effort into compliance
A quarter (25 per cent) of businesses in Singapore have their top executives or board address compliance on a monthly basis or more while 45 per cent engage with compliance every half-year. This engagement is most likely to be part of a pre-scheduled review of risks (51 per cent) but is also often in search of ways to reduce costs (43 per cent) or in pursuit of new insights or opportunities (37 per cent).
Businesses expect compliance requirements to be more difficult to meet in the future
In general, businesses confirm their attention and resources devoted to compliance lead to positive results: 70 per cent are highly confident they are successfully meeting the requirements now and will continue to do so in the future. However, 65 per cent expect compliance to get harder in the next five years. It’s becoming more complex, legislation is changing fast, and Covid-19 will continue to cause disruption. Some 47 per cent of Singapore respondents cite impacts of the pandemic as one of the most significant challenges to compliance over the next five years and 43 per cent highlight increased scrutiny from regulators.
Leaders know falling short carries significant risks
Compliance leaders in Singapore know the significant risks of falling short: 82 per cent say their business has faced accounting and tax compliance-related challenges in the last five years. These consequences most commonly include reputational damage (53 per cent), internal disciplinary action (37 per cent) and fines (35 per cent).
Leaders to invest in technology, but also need to boost knowledge and skills
Technology (especially machine learning/artificial intelligence) and skills are the biggest planned investments in compliance: 78 per cent of businesses in Singapore intend to invest in new accounting and tax compliance technology over the next five years. However, they are held back by a lack of team knowledge and skills: over one-third of respondents (39 per cent) feel this is a major obstacle to their team meeting compliance goals.
Erick Gillier, Partner, Global Head of Outsourcing, Mazars says: “Global compliance has long been a cornerstone of good business practice but can still be viewed by some as simply an obligation to be met rather than an opportunity to be capitalised on. That’s why we set out to uncover how business leaders approach global compliance, including the attention they devote to it, the returns they expect, the risks they anticipate, and where they focus investment. Our survey and study show when global compliance is done well it builds investor confidence, increases client and customer trust, and shapes a positive reputation with the outside world”.
Chris Fuggle, Partner and Head of Outsourcing, Mazars in Singapore says: “The increasing complexity of the regulatory environment creates a major challenge for international businesses in the region. Ensuring compliance with an ever-expanding set of rules is costly and resource-intensive.
Chris adds: “Without a doubt, the cost of non-compliance today will grow heavier in the future. The Singapore edition of the global study clearly demonstrates that leaders in Singapore view global compliance as a strategic priority that bring real opportunities and value to the business.”
Read ‘Unlocking trust: why global compliance is on the Singapore business agenda’ here.
Read the global study here.
About Mazars
Mazars is an internationally integrated partnership, specialising in audit, accountancy, advisory, tax and legal services*. Operating in over 90 countries and territories around the world, we draw on the expertise of more than 42,000 professionals – 26,000+ in Mazars’ integrated partnership and 16,000+ via the Mazars North America Alliance – to assist clients of all sizes at every stage in their development.
*where permitted under applicable country laws.
http://www.mazars.com | http://www.linkedin.com/company/mazars | https://twitter.com/mazarsgroup
About Mazars in Singapore
Mazars in Singapore is an international integrated firm that provides meaningful audit, tax and advisory advice to the world’s leading organisations and fastest-growing businesses. With more than 280 professionals, the firm is a fast-growing and independent firm servicing clients across Asia-Pacific. Mazars is present in 17 countries and territories in Asia-Pacific and draws on the expertise of over 6,000 professionals in 57 offices.
www.mazars.sg | https://www.linkedin.com/company/mazars-singapore
Methodology
Mazars, in partnership with GQR Research, surveyed 892 senior accounting and tax compliance professionals working in multinational companies, between 30 April and 2 June 2021. Fieldwork was conducted online and was on a “double-blind” basis: respondents did not know that Mazars was the sponsor of the survey. Respondents were from the private sector, multinational businesses. They were at least Director-level in seniority, worked in a Global/regional headquarters and had responsibility for multiple countries. They were involved in accounting and tax compliance within their organisation.
Respondents came from all global regions, with an emphasis on Western Europe and Asia-Pacific: Africa & Middle East (100 respondents); Asia-Pacific (251) including 51 in Singapore; Central & Eastern Europe (50); North America (51); Latin America (101); Western Europe (339)
Size of organisation of respondents:
- Fewer than 1,000 employees globally: 268 respondents
- 1,000-10,000 employees globally: 380 respondents
- 10,000 employees globally or more: 244 respondents
Source: Mazars (Press release)
