AI Is Not Replacing Accountants, It Is Redefining the Profession

The rapid rise of artificial intelligence (AI) has sparked widespread concern across industries, and the accounting profession is no exception. As automation technologies become more advanced, many fear that traditional accounting roles may soon become obsolete. However, recent developments in Singapore suggest a different reality: AI is not replacing accountants, but rather transforming the nature of their work and elevating their role within businesses.

Insights from the Institute of Singapore Chartered Accountants (ISCA), alongside multiple industry reports, consistently highlight a clear and unified conclusion—AI is reshaping accounting jobs, not eliminating them.

One of the most significant changes driven by AI is the automation of routine and repetitive tasks. Traditionally, accountants have spent a considerable amount of time on activities such as data entry, transaction matching, and basic reconciliations. With the integration of AI tools, many of these processes can now be completed faster and with greater accuracy. As a result, accountants are no longer required to focus heavily on manual tasks that add limited strategic value.

Instead, AI enables professionals to shift their attention toward more complex and meaningful responsibilities. By reducing time spent on routine work, accountants can engage in deeper financial analysis, provide strategic business insights, and support decision-making processes. This transition marks a fundamental shift in the profession—from “number crunchers” to strategic advisors.

Importantly, despite the growing presence of AI, there is no clear evidence of widespread job displacement within the accounting sector. Data from Singapore shows strong employment outcomes for accounting graduates, with near-full employment rates and increasing enrolment in accounting programs. These trends indicate that demand for accounting professionals remains stable, even as the nature of the work evolves.

This reinforces a key point: AI is not eliminating the need for accountants. Instead, it is changing what employers expect from them. Digital readiness has become a fundamental requirement in today’s accounting landscape. Skills such as data management, technological literacy, and the ability to work alongside AI systems are no longer optional—they are essential.

Employers are increasingly prioritizing candidates who are comfortable using digital tools and can interpret data effectively. The modern accountant is expected to understand not only financial principles but also how technology can enhance business performance. This shift applies to both new graduates and experienced professionals, highlighting the need for continuous learning and adaptation.

Recognizing this transformation, Singapore has taken proactive steps to prepare its workforce for an AI-driven future. Under the broader direction of Singapore Budget 2026, significant emphasis has been placed on AI adoption and workforce upskilling. Initiatives such as the AI Fluency Programme aim to equip accounting professionals with practical knowledge on how to apply AI in real-world scenarios, understand its limitations, and use it responsibly.

These efforts reflect a broader understanding that the future of accounting lies in the collaboration between human expertise and technological capability. While AI can process vast amounts of data and identify patterns, it cannot replace human judgment, ethical reasoning, or professional skepticism. Accountants continue to play a critical role in interpreting information, ensuring compliance, and making informed decisions that align with business objectives.

Another important aspect of this transformation is the evolving role of accountants within organizations. As AI takes over operational tasks, accountants are increasingly positioned as strategic partners to businesses. They are expected to contribute to risk management, guide investment decisions, and provide insights that drive long-term growth. This elevated role not only enhances the value of the profession but also opens up new career opportunities.

At the same time, it is important to acknowledge the concerns within the industry. Surveys indicate that many professionals remain worried about potential job displacement due to AI. While these concerns are valid, the current evidence suggests that the impact of AI is more nuanced. Rather than reducing the workforce, AI is reshaping job scopes and creating a demand for higher-level skills.

Ultimately, the transformation of accounting through AI should be viewed as an opportunity rather than a threat. Professionals who embrace technology and invest in developing new competencies will be better positioned to thrive in this changing environment. The key lies in adaptability—those who can integrate financial expertise with technological understanding will remain highly valuable in the job market.

In conclusion, the narrative that “AI will replace accountants” is largely misleading. A more accurate statement is that AI is replacing certain tasks, not the profession itself. As demonstrated by developments in Singapore, the future of accounting is not about elimination, but evolution. The role of accountants is becoming more strategic, more analytical, and more impactful than ever before.

Sumber:

1. https://www.thepeakmagazine.com.sg/influence/budget-2026-proves-ai-wont-replace-accountants-says-isca?utm_source=chatgpt.com
2. https://www.straitstimes.com/business/ai-will-reshape-accounting-but-jobs-in-spore-remain-safe-for-now-chartered-accountants-body?utm_source=chatgpt.com
3. https://www.thestar.com.my/business/business-news/2026/02/23/ai-poised-to-reshape-accounting?utm_source=chatgpt.com#goog_rewarded

Scalling Without Borders, How EOR Services Works Gap Between Ambition and Compliance

Building a successful business in the international arena often feels like a dream realized, yet the operational reality can quickly shift into a dizzying labyrinth of bureaucracy. Imagine you have secured the finest talent in Singapore or Indonesia, but your expansion plans stall because of the crushing weight of labor regulations, disparate payroll systems, and ever-evolving tax obligations. This is where a strategic bridge emerges to connect your global ambitions with flawless legal compliance, ensuring that your transition into new markets remains as seamless as possible.

We understand that behind every growth metric and market share expansion, there is the hard work of human beings who seek to be valued through fair and transparent systems. Navigating the business landscape of Southeast Asia requires more than just capital; it demands a partner who understands the pulse of local laws and the human values inherent in work. In this article, we explore how Employer of Record (EOR) services specifically through the lens of Forbis serve as more than just an administrative tool, but as a vital investment in the integrity and well-being of your global team.

The Human Element in Global Expansion

In our hyper-connected world, geographical boundaries no longer limit access to the world’s best minds. However, many organizations fall into the “automation trap,” forgetting that every employee is an individual living under a specific set of national laws. According to the International Labour Organization (ILO), international labor standards are not merely tools for governments to avoid penalties; they are the framework for “decent work” that promotes freedom, equity, security, and human dignity.

When a company enters a new market, they often stumble over the “small” details social security contributions, local leave entitlements, and statutory benefits. If mismanaged, these details do more than incur fines, they erode the trust of your employees and damage your brand’s reputation. A “human touch” in EOR means recognizing that payroll isn’t just a transaction; it is a commitment to the person helping you build your vision.

Navigating the Complexity of Singapore and Indonesia

Forbis operates at the heart of two of the most dynamic yet regulated markets in Asia. Understanding the specific nuances of these jurisdictions is essential for any business leader.

1. Singapore, The Standard of Excellence

Singapore is renowned for its pro-business environment, but this comes with strict adherence to the Employment Act, which is the country’s main labor law. As highlighted by the Ministry of Manpower (MOM) Singapore, the Act covers basic terms and conditions for all types of employees. For a foreign company, the barriers to entry can be steep. Setting up a legal entity to hire a single professional can take months and cost between USD 2,000 to USD 15,000 annually in maintenance alone. Through Forbis’s EOR services, you bypass these hurdles. We act as the legal employer, ensuring that every contract is drafted in full compliance with the Employment of Foreign Manpower Act (EFMA), covering vital aspects like:

• Work Pass Administration: Managing Employment Passes and S Passes.
• Key Employment Terms (KETs): Ensuring all employees receive written terms as required by law.
• Statutory Contributions: Precise handling of CPF (Central Provident Fund) and tax withholdings.

2. Indonesia: A Landscape of Change

Indonesia offers massive market potential but presents a complex regulatory framework, particularly with the recent Omnibus Law (Job Creation Law). Recent rulings by the Indonesian Constitutional Court in late 2024 have further emphasized the protection of local workers and the strict management of foreign worker utilization (RPTKA).Forbis stays at the forefront of these changes. We understand that in Indonesia, business is personal. Our local expertise ensures that your fixed term employment agreements (PKWT) are not only legally sound but also culturally appropriate. We help you navigate the delicate balance of prioritizing local talent while securing the specialized skills your business needs to thrive.

EOR as a Strategic Growth Partner

The traditional view of EOR is often limited to “outsourced HR.” However, the modern EOR model provided by Forbis is a strategic growth engine. Speed and Agility In the time it takes to register a subsidiary, a competitor could already have captured your target market. EOR allows you to onboard talent in days or weeks. This speed is critical for “testing” a market before committing to a full scale corporate setup.

Risk Mitigation Non compliance in Singapore can lead to fines up to SGD 30,000 or even imprisonment for company directors. In Indonesia, shifting labor laws can lead to unexpected severance liabilities. By using Forbis, you transfer the legal liability of the employer to us. We assume the responsibility for ensuring that every paycheck, tax filing, and benefit distribution meets the letter of the law.

Cost Efficiency Building a local infrastructure requires more than just money, it requires time the most valuable resource of any CEO. By leveraging our established network, you avoid the sunk costs of entity setup, local accounting fees, and legal retainers.

The Forbis Difference: Empathetic Administration

What truly sets Forbis apart is the “Human Touch.” We believe that technology should empower people, not replace the personal connection between an employer and an employee. When you use Forbis’s EOR services via forbis.com.sg, your employees gain access to:

• Transparent Communication: Clear, easy to understand payslips and benefit guides.
• Local Support: A team that speaks their language and understands their local holidays, customs, and concerns.
• Security: The peace of mind that comes from knowing their employment is 100% legal and their social security is being paid correctly.

For the business owner, this translates to higher retention rates and a more motivated workforce. When your team feels secure in their legal and financial status, they can focus entirely on driving your business forward.

Scaling for the Future

The world of work is changing. The rise of remote work and the “global first” mindset means that your next great hire could be anywhere. Whether you are a startup looking for your first engineer in Jakarta or a multinational expanding its sales force in Singapore, Forbis provides the scalability you need.

Our services are designed to grow with you. We offer:

• Flexible Onboarding: Add or remove employees as your project needs change.
• Cultural Liaison: We act as a bridge, helping you understand the business ethics and cultural nuances of Southeast Asian labor markets.
• Comprehensive HR Support: From dispute resolution to health insurance management, we handle the friction so you can enjoy the flow.

Conclusion: Your Ambition, Our Foundation

Expanding into Singapore and Indonesia is a bold move that promises significant rewards. However, the path is paved with regulatory challenges that require a steady, expert hand. By choosing Forbis as your EOR partner, you aren’t just hiring a service provider; you are securing a foundation of trust and compliance.We invite you to stop worrying about the red tape and start focusing on the vision that brought you to Asia in the first place. Let us handle the complexities of the law, so you can handle the opportunities of the future.

Visit Forbis today to learn how we can help you build your global team with confidence, compliance, and a human touch.

Sources:

• Ministry of Manpower (MOM) Singapore – Employment Act & EFMA Guidelines.
• International Labour Organization (ILO) – International Labour Standards (ILO NORMLEX).
• Indonesian Constitutional Court Rulings 2024 on Job Creation Law (Undang-Undang Cipta Kerja).

Southeast Asia Faces U.S. Tariff Shocks: Singapore and Indonesia Respond

The reintroduction of U.S. tariffs under President Donald Trump in 2025 has shaken key Southeast Asian economies, with Singapore and Indonesia taking different—but urgent—steps to manage the fallout.

Singapore: Indirect Pressure, Direct Consequences

Singapore, a highly globalized trading hub, is particularly exposed to the 10% baseline tariff the U.S. imposed on all imports. Around 55% of its domestic exports to the U.S. are now affected, with an additional 5% facing higher tariffs, especially in steel, aluminium, and automotive parts. While about 40% of exports—including semiconductors, pharmaceuticals, and electronics—are temporarily exempt, these exemptions are under review.

As the U.S. is Singapore’s second-largest export market (11% of domestic exports), and as Singapore is a key supplier of intermediate goods to countries like China, the impact is also indirect. When Chinese exports to the U.S. fall, so does demand for Singapore’s inputs. The Monetary Authority of Singapore (MAS) describes the tariffs as a “production tax” that shrinks profit margins, reduces output, and dampens overall economic activity.

In response, the Ministry of Trade and Industry (MTI) has downgraded 2025 GDP growth to 0–2%, citing weakened global trade and investor sentiment. MAS has eased monetary policy for the second time, hoping to cushion the blow. In Q1 2025, Singapore’s economy grew by 3.8%, down from 5%, and contracted 0.8% on a quarterly basis.

Looking forward, sectors like manufacturing, wholesale trade, transport, and finance are most vulnerable. A national task force has been formed to support affected businesses and workers. Prime Minister Lawrence Wong warned that the era of rules-based globalisation is ending, and Singapore must quickly evolve its trade strategy to remain competitive.

Indonesia: Direct Hit, Diplomatic Response

Indonesia received a more targeted blow. The U.S. imposed a 32% tariff on its exports, citing a large trade surplus (US$16.8 billion in 2024) and unequal market access. Key export sectors—electronics, footwear, and apparel, collectively worth over US$7 billion—are now under pressure. U.S. officials also criticized Indonesia’s local content rules and complex import regulations, increasing bilateral trade tensions.

Instead of retaliating, Indonesia has chosen diplomatic engagement. A 90-day tariff suspension announced by the U.S. on April 9 opened space for talks. Indonesia responded by reducing certain tariffs and sent a high-level delegation to Washington to negotiate. Finance Minister Sri Mulyani estimates that tariffs could trim 0.3–0.5 percentage points from GDP growth if fully implemented.

Domestically, Bank Indonesia has held its benchmark interest rate at 5.50%, after three cuts since September. Inflation remains low at 1.6%, but loan growth has slowed, reflecting cautious consumer and business sentiment. A US$1.5 billion stimulus package, including transport subsidies and direct aid, aims to boost domestic demand in the short term.

Longer-term, Indonesia is pushing for structural reforms. These include expanding trade with under-tapped markets like Africa and South America, digitalizing MSMEs, lowering investment barriers, and investing in trade infrastructure like ports and toll roads. The government also aims to raise its tax-to-GDP ratio to 12% by 2025 to strengthen fiscal resilience.

Turning a Trade Shock into Opportunity

While both countries are navigating different types of exposure, the underlying threat is shared: a shift toward global protectionism. Singapore faces disruption through supply chains and global investor caution, while Indonesia must manage direct tariff losses and structural trade imbalances.

Yet, both economies are using this moment to rethink and recalibrate. Singapore is reinforcing supply chain agility and exploring policy support for vulnerable sectors, while Indonesia is accelerating reforms and diversifying trade ties. As the 90-day tariff pause counts down, both governments are racing to secure new economic footholds in a world that increasingly favors resilience over openness.

2025 Outlook with ForBis: Essential Corporate Support for Your Business in Singapore

As Singapore enters the new year, businesses of all sizes face both exciting opportunities and new challenges. Whether you’re a startup or an established company, the upcoming year is pivotal in ensuring compliance, efficient financial management, and robust growth. This makes accounting services even more crucial for your business, ensuring you meet deadlines, streamline operations, and gain valuable insights for decision-making.

Here’s a closer look at the accounting landscape for 2025 in Singapore and why corporate accounting services should be a priority for your business.

1. Key Accounting Deadlines for 2025

In Singapore, companies must stay on top of several critical deadlines throughout the year. Missing them could result in penalties, interest charges, or even legal complications. Here’s a summary of key dates for 2025 that your business needs to keep in mind:

a. Filing of Annual Tax Returns (Income Tax Return – Form C / C-S)

• Deadline: 30 November 2025 If your business is a Singapore tax resident company, you must file your income tax return by the due date. Companies with a financial year ending in December must submit Form C by 30 November. However, businesses with different financial year ends should file three months from the end of their financial year.

b. Annual Financial Statements and Audits

• Deadline: Within 6 months* from the end of the financial year Singapore-based companies are required to prepare their financial statements in accordance with Singapore Financial Reporting Standards (SFRS). These must be submitted with audited financial statements, depending on the company’s size and type. Small companies may qualify for audit exemptions, but it’s essential to assess your eligibility.

c. Goods and Services Tax (GST) Filing

• Deadline: Quarterly or Annually, depending on your business turnover For businesses that are GST-registered, filing returns must be done within one month from the end of each quarter (for quarterly filers). If your company is on an annual filing basis, the return is due one month after the end of your financial year.

2. Upcoming Changes in Accounting and Tax Regulations for 2025

Singapore’s business environment is continually evolving, and 2025 will bring several notable changes to accounting and taxation that businesses should prepare for:

a. The Introduction of e-Invoicing in Singapore

The Singapore government has rolled out the nationwide adoption of e-invoicing under the Peppol framework, with full adoption expected by 2025. This transition is part of a broader initiative to streamline and digitize business processes.

What it means for your business: By adopting e-invoicing, companies will benefit from quicker processing times, enhanced accuracy, and improved reporting compliance. For businesses that still rely on traditional paper invoicing, the switch may require training and system adjustments.

b. Updates to Tax Exemptions for Startups

The Singapore government frequently reviews the tax exemption policies for new businesses to encourage innovation and entrepreneurship. In 2025, changes may include expanded support for early-stage companies, allowing them to benefit from increased exemptions on the first $200,000 of chargeable income for the initial three years.

What it means for your business: If your company is in the startup phase, consulting with a tax expert will ensure that you fully understand the scope of exemptions and are taking full advantage of government incentives.

c. Sustainability Reporting Requirements

As sustainability becomes a global priority, businesses in Singapore are expected to report on their Environmental, Social, and Governance (ESG) activities. Companies listed on the Singapore Exchange (SGX) are already required to disclose ESG factors, and the scope is expected to extend to non-listed companies in the near future.

What it means for your business: A growing focus on sustainability means that your financial and operational reporting must align with new reporting standards. Accounting services will be essential for integrating ESG considerations into your financial reporting, ensuring that you comply with both local and international standards.

3. Why You Need Professional Accounting Services in 2025

In light of these deadlines and regulatory changes, it’s clear that the role of accounting services is more crucial than ever. Here’s why engaging a professional accounting service in 2025 will give your business a competitive edge:

a. Compliance with Regulations

The complexities of corporate tax and accounting regulations can be overwhelming. With evolving laws and the increasing importance of timely filings, businesses must stay up to date with compliance requirements. Professional accountants can ensure that your company remains compliant with all tax and financial reporting regulations, avoiding costly penalties and fines.

b. Strategic Financial Advice

Beyond basic compliance, a good accounting firm provides valuable insights into your company’s financial health. From tax planning to budgeting, accountants can help you optimize your finances, forecast future trends, and make informed decisions that drive growth.

c. Time and Cost Efficiency

Outsourcing your accounting tasks frees up valuable time for your management team to focus on core business operations, such as sales, customer acquisition, and product development. Additionally, working with accounting experts can reduce the risk of financial mismanagement, which could otherwise result in expensive corrective measures down the line.

d. Automation and Digital Solutions

As technology continues to reshape the business landscape, accounting firms are adopting automated tools and digital solutions to simplify processes. This allows for quicker reporting, more accurate data analysis, and improved efficiency. With e-invoicing and cloud-based accounting becoming the norm, partnering with a firm that embraces digital solutions is essential for staying ahead.

What should I do next?

2025 is an exciting year for businesses in Singapore, but it also comes with its set of challenges. Meeting deadlines, complying with evolving regulations, and keeping track of financial performance are essential tasks that demand expertise and attention to detail. By partnering with a professional accounting service, you can ensure your business stays on track, remains compliant, and is well-positioned for success in the year ahead.

If you haven’t yet partnered with an accounting firm or are considering a switch, now is the perfect time to take action. At ForBis, we’re ready to help you navigate the complexities of the coming year with expert accounting services tailored to your business needs. With our support, you’ll stay ahead of deadlines, ensure compliance, and unlock the growth opportunities 2025 has to offer. Let us handle the numbers so you can focus on what truly matters—growing your business. Reach out today and let’s make 2025 your best year yet!.

Preparing for Pillar Two: Navigating Singapore’s New Global Tax Rules with Expert Support from ForBis

Singapore is moving forward with the implementation of Pillar Two top-up taxes, starting in financial years from January 1, 2025. This move aligns with global tax reforms led by the OECD and G20, ensuring that large multinational enterprises (MNEs) pay a minimum effective tax rate of 15% on profits in every country they operate in.

A. What is Pillar Two?

Pillar Two is part of a global tax reform initiative designed to prevent large MNEs from avoiding taxes by shifting profits to low-tax countries. It ensures that MNEs with annual revenues of EUR 750 million or more pay at least 15% tax on their global profits.

The key rules for Singapore’s implementation include:

• Income Inclusion Rule (IIR): Singapore-based MNEs must pay additional tax on the profits of their foreign subsidiaries if those entities are taxed below 15%.
• Domestic Top-up Tax (DTT): Foreign MNEs with low-taxed entities in Singapore must also pay a minimum of 15% on their local profits.

B. Impact on Large Local Companies

Singapore-based MNEs with global operations will need to track the tax rates of their foreign subsidiaries and be ready to pay additional taxes if those entities are taxed below 15%. This adds administrative complexity, requiring detailed data collection and compliance.

C. Impact on Small and Medium Enterprises (SMEs)

SMEs are generally unaffected by Pillar Two, as it applies only to MNEs with annual consolidated revenues of at least EUR 750 million. However, SMEs that are part of larger multinational groups may experience indirect impacts through group-wide tax changes.

D. Impact on Foreign Businesses

Foreign MNEs with operations in Singapore will be subject to a minimum 15% tax on their Singapore profits through the DTT. They will also face penalties for non-compliance, including fines and surcharges for late registration or failing to submit mandatory returns.

E. Impact on Businesses

The new tax rules will bring increased administrative burdens, especially for large companies with multinational operations. Businesses will need to enhance their tax compliance systems to handle the additional data required to meet the 2025 deadline. Digital tools and improved processes will be essential to streamline data collection and reporting. Non-compliance could lead to penalties, such as fines or surcharges, with stricter measures for serious violations.

How ForBis Can Help

Navigating the complexities of Pillar Two and the upcoming tax changes can be challenging for businesses of all sizes. ForBis, a leading tax advisory and accounting firm in Singapore, offers specialized services to help businesses stay compliant with the new regulations. Our services include:

• Tax Advisory: Expert guidance on how Pillar Two and other tax rules will impact your business operations.
• Accounting Services: Streamlined accounting processes to ensure accurate tax reporting and data management.
• Compliance Solutions: Tailored digital solutions to help businesses meet the new data and reporting requirements with ease.

Whether you’re a large MNE or an SME, ForBis can provide the support and tools you need to ensure a smooth transition to the new tax regime. Contact us today for a consultation and let us help you stay ahead of the curve in this evolving tax landscape.

Why Should You Incorporate a Company in Singapore?