Enterprises and Corporate Sector

As the national business registry of Singapore, Accounting and Corporate Regulatory Authority (ACRA) maintains the register of business entities. Statistics on the formation and cessation of business entities are based on registration records from ACRA. 

Corporate Sector statistics provide insights into the financial health and dynamics of companies that are registered with the Accounting and Corporate Regulatory Authority (ACRA) in Singapore.

For more information on Singapore’s Corporate Sector statistics, you may refer to the Technical Notes document.

The balance sheet composition provides information on the allocation of resources of companies across industries while the financial ratios allow benchmarking and industry comparison of the efficiency in using assets and equity to generate earnings, liquidity position and dependency on external funding.

Profit before tax and operating surplus are both financial metrics used to assess financial performance, but they represent different aspects of profitability. Profit before tax includes total (operating and non-operating) income less total expenses while operating surplus only includes operating income less operating expenses plus depreciation of fixed assets. Income from non-operating activities such as fair value gains/losses are included in profit before tax and not in operating surplus.

Data on the corporate sector are collected from various sources such as financial statements and administrative data filed by companies with the Accounting and Corporate Regulatory Authority (ACRA) and other government agencies.

Enterprise

Refers to an incorporated or registered entity (such as company, sole-proprietorship, partnership, association or society, etc).

Local Enterprises

Majority local-owned enterprises refer to enterprises with at least 50% local equity.

Foreign Enterprises

Majority foreign-owned enterprises refer to enterprises with less than 50% local equity.

Small and Medium Enterprises (SMEs)

Defined as enterprises with operating revenue not more than $100mil or employment not more than 200 workers.

Non-SMEs

Non-SMEs are defined as enterprises with operating revenue more than $100mil and employment more than 200 workers.

Current Ratio

Refers to the ratio of current assets to current liabilities. It measures the liquidity of companies, i.e., their ability to meet current liabilities when due. A ratio of 1 indicates that the company has exactly balanced its current liabilities with current assets. A ratio above 1 indicates liquidity in the company. The lower the ratio is below 1, the higher the risk of the company running into a liquidity problem.

Equity Ratio

Refers to the ratio of total equity to total assets. It measures the dependence of companies on external funding, (i.e., debt) to finance their assets. The higher the dependence on external funding, the lower the ratio.

Profit before Tax

Profit before tax is defined as total (operating and non-operating) income less total expenses.

Return on Assets (ROA)

Refers to the ratio of profit before interest and tax to average total assets. It measures the efficiency of the companies in using their assets to generate earnings. Interest payments are not deducted from earnings as they are the cost of financing business capital rather than an operating cost. The resulting ratio measures the earning capacity of the company's assets regardless of how the assets are financed.

Return on Equity (ROE)

Refers to the ratio of profit before tax to average total equity. It measures the companies’ efficiency in using their shareholders’ equity to generate earnings.

Share Capital

Refers to the amount contributed by shareholders through the issue of ordinary or preference shares.

Total Assets

Refers to items controlled by the companies from which future economic benefits are expected to flow to the companies. It consists of current and non-current assets.

• Current assets (e.g., cash, cash equivalent, inventory) refer to assets intended to be used or sold within one year;
• Non-current assets (e.g., property, plant and equipment, investment in subsidiaries/associates) refer to assets intended to be held for more than one year.

Total Equity

Total equity mainly comprises share capital, retained earnings and other reserves. For total equity of Singapore’s corporate sector, it also includes the net amount owed by Singapore-based branches of foreign-incorporated companies to the foreign head offices, which are used as proxies for their equity.

Total Liabilities

Liabilities are financial obligations of the companies that are payable to another entity. Examples include loans, trade payables and deposits (applicable for financial institutions only).

Business Entities

Refers to companies, sole proprietorships & partnerships, limited liability partnerships, limited partnerships, public accounting firms and variable capital companies.

Cessation of Business Entities

Refers to business entities which have ceased operations. Cessation status includes ceased registration, struck off, amalgamated, cancelled and dissolved.

Formation of Business Entities

Refers to business entities incorporated or registered with the Accounting and Corporate Regulatory Authority (ACRA).