http://www.businesstimes.com.sg/sub/news/story/0,4574,387888,00.html?
Published May 27, 2010
RSM Chio Lim forms joint venture with China counterpart
Tie-up will allow for a more efficient delivery of services
By CHEN HUIFEN
(SINGAPORE) Driven by expectations of an increase in cross-border transactions between Singapore and China, the biggest homegrown accounting firms in the two countries have formed an equal share joint venture here.
Mr Lim: 'RSM Chio Lim has noticed a 20-30 per cent increase in enquiries about Singapore-China transactions in the past two years.'
The venture - RSM China (Singapore) - will draw on the resources of Beijing-headquartered RSM China CPAs and RSM Chio Lim for a start.
'RSM China CPAs will eventually send staff to be stationed in Singapore,' said RSM Chio Lim senior partner Lim Lee Meng. 'So when Chinese companies come here, the advantage is that they will have access to both Singapore and China expertise.'
As members of the RSM International accounting network, the two parties have worked together since 2008 - their first collaboration was a joint audit of China National Offshore Oil Corp's Singapore subsidiary, CNOOC Trading (Singapore).
Forming a joint venture will align economic interests and allow for a more efficient, seamless delivery of services, said RSM China CPAs chairman Liu Guibin.
For instance, clients need only deal with a single entity in an audit process to fulfil both Singapore and China accounting requirements. It is also easier to refer existing clients setting up operations in Singapore to the joint venture firm than a partner company because of comfort level already built with RSM China CPAs. For instance, they no longer have to negotiate the fees each party should get before agreeing to a deal.
'So when we go and get business, we just take the joint venture entity and go together,' Mr Lim said. 'We don't have to call each other and ask, 'This job, how much do you share and how much do I share'?'
With the move, RSM China CPAs has become the first accounting firm from the Middle Kingdom to heed the government's call for Chinese enterprises to internationalise. A government document issued last year on reforming the public accounting sector suggested that such firms step out and expand their auditing scope.
For RSM Chio Lim, the joint venture is an extension of its footprint in China. Through a 60 per cent owned subsidiary, the firm has been offering accounting, company incorporation, payroll and other business services to foreign enterprises there. It now has about 250 staff in Beijing, Chengdu, Shanghai, Shenzhen and Suzhou.
'For business services, we cooperate with them (RSM China CPAs) to serve their foreign clients that need our assistance,' said RSM Chio Lim chief executive Chio Kian Huat. 'They are big in audit while we are growing very fast in the business services area. So they help us grow our audit business while we help them grow the business services.'
The joint venture parties will send staff to each other's offices for training. In three years, RSM China (Singapore) aims to have eight partners of its own.
Mr Lim said that RSM Chio Lim has noticed a 20-30 per cent increase in enquiries about Singapore-China transactions in the past two years. Most of the deals his firm helps to handle fall into three categories: state-owned enterprises setting up subsidiaries in Singapore; listing of private Chinese enterprises on the Singapore Exchange; and helping Chinese enterprises make use of trade agreements and tax incentives when they use Singapore as a base for internationalisation.
Despite the recent slump in IPOs and concerns over the debt crisis in Europe, RSM China CPAs' Mr Liu said that the outlook is bright.
'China's economy may not grow as fast, but cross-border deals and trade will not stop,' he said. There is still plenty of growth potential for Chinese enterprises looking to expand overseas. Many will need foreign capital. And Singapore is a perfect launchpad site because of its geographic connectivity, business-friendly environment and financial centre status.
RSM China CPAs serves more than 2,000 clients, including listed companies and public sector groups under the direct control of the State-owned Assets Supervision and Administration Commission. Ranked as the top local accounting firm by the Chinese Institute of Certified Public Accountants for the past three years, it has reported annual revenue exceeding one billion yuan (S$206 million). The group has more than 3,000 staff in 22 branches in China.
RSM Chio Lim is the largest accounting firm after the Big Four in Singapore. It employs more than 550 people and is part of the Chio Lim Stone Forest Group.
Published May 27, 2010
RSM Chio Lim forms joint venture with China counterpart
Tie-up will allow for a more efficient delivery of services
By CHEN HUIFEN
(SINGAPORE) Driven by expectations of an increase in cross-border transactions between Singapore and China, the biggest homegrown accounting firms in the two countries have formed an equal share joint venture here.
Mr Lim: 'RSM Chio Lim has noticed a 20-30 per cent increase in enquiries about Singapore-China transactions in the past two years.'
The venture - RSM China (Singapore) - will draw on the resources of Beijing-headquartered RSM China CPAs and RSM Chio Lim for a start.
'RSM China CPAs will eventually send staff to be stationed in Singapore,' said RSM Chio Lim senior partner Lim Lee Meng. 'So when Chinese companies come here, the advantage is that they will have access to both Singapore and China expertise.'
As members of the RSM International accounting network, the two parties have worked together since 2008 - their first collaboration was a joint audit of China National Offshore Oil Corp's Singapore subsidiary, CNOOC Trading (Singapore).
Forming a joint venture will align economic interests and allow for a more efficient, seamless delivery of services, said RSM China CPAs chairman Liu Guibin.
For instance, clients need only deal with a single entity in an audit process to fulfil both Singapore and China accounting requirements. It is also easier to refer existing clients setting up operations in Singapore to the joint venture firm than a partner company because of comfort level already built with RSM China CPAs. For instance, they no longer have to negotiate the fees each party should get before agreeing to a deal.
'So when we go and get business, we just take the joint venture entity and go together,' Mr Lim said. 'We don't have to call each other and ask, 'This job, how much do you share and how much do I share'?'
With the move, RSM China CPAs has become the first accounting firm from the Middle Kingdom to heed the government's call for Chinese enterprises to internationalise. A government document issued last year on reforming the public accounting sector suggested that such firms step out and expand their auditing scope.
For RSM Chio Lim, the joint venture is an extension of its footprint in China. Through a 60 per cent owned subsidiary, the firm has been offering accounting, company incorporation, payroll and other business services to foreign enterprises there. It now has about 250 staff in Beijing, Chengdu, Shanghai, Shenzhen and Suzhou.
'For business services, we cooperate with them (RSM China CPAs) to serve their foreign clients that need our assistance,' said RSM Chio Lim chief executive Chio Kian Huat. 'They are big in audit while we are growing very fast in the business services area. So they help us grow our audit business while we help them grow the business services.'
The joint venture parties will send staff to each other's offices for training. In three years, RSM China (Singapore) aims to have eight partners of its own.
Mr Lim said that RSM Chio Lim has noticed a 20-30 per cent increase in enquiries about Singapore-China transactions in the past two years. Most of the deals his firm helps to handle fall into three categories: state-owned enterprises setting up subsidiaries in Singapore; listing of private Chinese enterprises on the Singapore Exchange; and helping Chinese enterprises make use of trade agreements and tax incentives when they use Singapore as a base for internationalisation.
Despite the recent slump in IPOs and concerns over the debt crisis in Europe, RSM China CPAs' Mr Liu said that the outlook is bright.
'China's economy may not grow as fast, but cross-border deals and trade will not stop,' he said. There is still plenty of growth potential for Chinese enterprises looking to expand overseas. Many will need foreign capital. And Singapore is a perfect launchpad site because of its geographic connectivity, business-friendly environment and financial centre status.
RSM China CPAs serves more than 2,000 clients, including listed companies and public sector groups under the direct control of the State-owned Assets Supervision and Administration Commission. Ranked as the top local accounting firm by the Chinese Institute of Certified Public Accountants for the past three years, it has reported annual revenue exceeding one billion yuan (S$206 million). The group has more than 3,000 staff in 22 branches in China.
RSM Chio Lim is the largest accounting firm after the Big Four in Singapore. It employs more than 550 people and is part of the Chio Lim Stone Forest Group.
