--- title: Singapore to Manila Hub-and-Spoke Office Strategy Guide description: Compare Singapore and Metro Manila office rents, tax incentives, transfer pricing and data rules, plus a 12-month plan for a hub-and-spoke setup. image: https://blog.flyspaces.com/hubfs/flyspaces-landing-images/FlySpaces%20Philippines.jpg --- [![spacesasia-logo](https://blog.flyspaces.com/hs-fs/hubfs/SpacesAsia%20-%20June%202019/spacesasia-logo.png?width=260&name=spacesasia-logo.png "spacesasia-logo")](https://blog.flyspaces.com/) - [Home](https://flyspaces.com/) - Navigate - [Flexible Workspaces](https://blog.flyspaces.com/tag/flexible-workspaces#blog-nav) - [News and Events](https://blog.flyspaces.com/tag/news-and-events#blog-nav) - [Industry Insights](https://blog.flyspaces.com/tag/industry-insights#blog-nav) - [City Guide](https://blog.flyspaces.com/tag/city-guide#blog-nav) - [Case Studies](https://blog.flyspaces.com/tag/case-studies#blog-nav) - Connect - [Contact Us](https://flyspaces.com/contact-us) - [Subscribe](https://flyspaces.us14.list-manage.com/subscribe/post?u=0b15b0bb7a66ae626f3388eb9&id=f72d186210) - Share : 2 October 2026 [Listerlynn Joy Garingo - De La Serna](https://blog.flyspaces.com/author/joy-garingo-delaserna) # Singapore to Manila Hub-and-Spoke Office Strategy Guide Some companies keep their leadership, legal and treasury teams in Singapore and put their larger operating teams in Metro Manila. This is called a hub-and-spoke setup. Singapore is the hub, where decisions are made and money is managed. Manila is the spoke, where engineers, analysts and support teams do the volume work. This guide covers what each city costs, which tax and data rules apply between them, and how a first year could be sequenced. Every figure has a source and a date. Where a source gives a range, we show the range. ### Why companies split the footprint The main reason is rent per square metre. The table shows the latest published figures for both cities. | Market | Measure | Figure | Source and date | | --- | --- | --- | --- | | Singapore core CBD, Grade A | Rent | S$12.50 per sq ft per month | [CBRE, via EdgeProp](https://www.edgeprop.sg/property-news/singapore-office-rents-rise-sixth-consecutive-quarter-amid-global-uncertainties-cbre), Q2 2026 | | Singapore core CBD, Grade A | Vacancy | 3.3% | [CBRE, via EdgeProp](https://www.edgeprop.sg/property-news/singapore-office-rents-rise-sixth-consecutive-quarter-amid-global-uncertainties-cbre), Q2 2026 | | Metro Manila, all markets tracked | Average rent | PHP 1,108.1 per sqm per month | [JLL, via Real Estate Asia](https://realestateasia.com/commercial-office/news/manila-q2-office-absorption-reaches-40400-sqm-vacancy-falls), Q2 2026 | | Metro Manila, all markets tracked | Average rent | PHP 854.5 per sqm per month | [Savills Philippines](https://savillsph.com/research/2026/savills-ph-2q-2026-metro-manila-office-briefing/), Q2 2026 | | Metro Manila | Vacancy | 13.8% (JLL), 19.0% overall and 7.4% in BGC (Savills) | Same two sources, Q2 2026 | To compare the two, we converted everything to Singapore dollars per sqm. One square foot is 0.0929 sqm, so S$12.50 ÷ 0.0929 is about S$134.5 per sqm per month. At the [Xe mid-market rate of S$1 = PHP 49.10 on 30 Sep 2026](https://www.xe.com/en-us/currencyconverter/convert/?Amount=1&From=SGD&To=PHP), the Manila figures work out to S$17.4 (854.5 ÷ 49.10) and S$22.6 (1,108.1 ÷ 49.10) per sqm per month. That puts Singapore core CBD Grade A at roughly six to eight times the Manila average. Treat that ratio as a direction, not a quote. The research firms use different building baskets, and Manila averages cover more than prime towers. Service charges may also be counted differently. Supply differs too. CBRE says [no meaningful new Singapore office supply is due through 2027](https://news.marketersmedia.com/singapore-grade-a-office-market-records-sixth-consecutive-quarter-of-rental-growth-amid-shifting-global-landscape/89196159). In Manila, JLL counts [about 202,200 sqm still due by the end of 2026](https://realestateasia.com/commercial-office/news/manila-q2-office-absorption-reaches-40400-sqm-vacancy-falls), and Savills counts about 337,000 sqm scheduled for the second half. Our reading is that Singapore tenants have little room to negotiate and Manila tenants have more. That is a reading of current data, not a forecast. ### The Singapore hub The hub holds the people who set direction, own contracts and manage group cash. That is usually a small team, so most companies do not need a large lease here. A flexible lease or a managed office (a fitted private floor run by an operator) often fits better than a long traditional lease. Shorter terms tend to cost more per seat, so ask for the cost per seat at 12, 24 and 36 months before you choose. Singapore also offers tax incentives for regional headquarters. The Economic Development Board (EDB) runs the [Development and Expansion Incentive](https://www.edb.gov.sg/content/dam/edb-zh/downloads/brochures/PC%20and%20DEI%20Brochure.pdf), which taxes qualifying headquarters income at a concessionary 5% or 10%. The headline corporate rate it is measured against is [17%](https://karman.com.sg/blog/singapore-regional-headquarters-setup). Four points about this incentive matter in practice: - The concessionary rate applies to qualifying income above a base level, not to all income. The [EDB services factsheet](https://www.edb.gov.sg/content/dam/edb-en/how-we-help/incentive-and-schemes/factsheets/DEI(Svc)%20Factsheet.pdf) explains how the base is set. - It is granted case by case, in periods of up to five years. - In November 2024, [EY reported minimum conditions](https://www.ey.com/en_gl/technical/tax-alerts/singapore-publishes-requirements-for-concessionary-tax-rate-tiers-under-development-and-expansion-incentive) for the 5% tier. They were at least 18 and 30 additional skilled employees by years 3 and 5, and additional annual business spending of at least S$8 million and S$13 million. Confirm current terms with EDB before you build a plan on them. - A newer 15% tier also exists, so the 5% and 10% rates are not the only options. ### The Manila spoke Manila's case rests on talent and scale. The IT and Business Process Association of the Philippines (IBPAP) sets out its outlook in its IT-BPM Roadmap 2028. The upper scenario is [US$50.5 billion in revenue and 2.14 million jobs by 2028](https://tribune.net.ph/2026/09/24/it-bpm-sector-eyes-505b-by-2028). The lower scenario is US$43.3 billion and 1.85 million jobs. The upper figure is a best case. In July 2026, IBPAP [cut its earlier targets](https://www.manilatimes.net/2026/07/15/business/ibpap-lowers-revenue-job-projections-for-2028/2384446) of US$59 billion and 2.5 million jobs, citing AI adoption and stronger competition. It expects growth to come from global capability centres (large in-house teams that do a multinational's technical and back-office work), healthcare information and financial services. #### Tax incentives under the CREATE MORE Act The CREATE MORE Act (Republic Act 12066) was [signed on 11 Nov 2024 and took effect on 28 Nov 2024](https://www.pwc.com/ph/en/tax/tax-alerts/2024/pwcph-tax-alert-44-create-more.pdf). For companies registered with a Philippine investment promotion agency, it works in two stages: 1. A period of income tax holiday, meaning no income tax on the registered activity. 2. After that, a choice between two regimes. The special corporate income tax is [5% of gross income, in place of all national and local taxes](https://www.dvphilippines.com/blog/create-more-law-philippines). The enhanced deductions regime has a [20% corporate income tax rate, down from 25%](https://www.sgv.ph/c-suite/Unveiling-the-Opportunities-of-the-CREATE-MORE-Act). The Department of Finance says the [5% or enhanced deductions period can now run up to 17 or 27 years](https://www.dof.gov.ph/recto-create-more-law-is-a-win-win-for-both-businesses-and-the-filipino-people/), depending on the project. Companies can also choose between the two regimes from the start of operations. Under the enhanced deductions regime, the allowed extras include [50% more deduction on labour expense](https://www.cditlaw.com/post/bir-r-r-no-7-2025-implications-for-corporate-taxation-under-r-a-12066-1) and a [100% deduction on power expense, up from 50%](https://santosknightfrank.com/blogs/ra-no-12066-create-more-new-growth-opportunities-for-ph/). A [local tax of not more than 2% of gross income](https://philippines.incorp.asia/advisories/maximizing-opportunities-through-the-create-more-act/) replaces other local taxes during the holiday and under the enhanced deductions regime. Not every office qualifies. The activity has to be registered and approved, and a software team and a back-office team may be treated differently. Ask a Philippine tax adviser to confirm eligibility for your activity before you assume any of these rates in a budget. #### Where to place the Manila team Metro Manila is several business districts, not one place. Savills reports that [BGC is the tightest major district at 7.4% vacancy](https://savillsph.com/research/2026/savills-ph-2q-2026-metro-manila-office-briefing/), and the Bay Area has the highest vacancy. Some companies add a smaller second site in Quezon City or Alabang for staff who live nearby. Before you decide, map your staff's home addresses against each site and check the commute at 9 a.m. A second site adds a second lease and a second fit-out, so it only pays off if the commute saving is real for enough people. The spoke does not have to be inside Metro Manila. Dyson keeps its global headquarters at [St James Power Station in Singapore](https://www.mmoser.com/projects/dyson-global-hq-singapore/). In 2023 it announced a [£166 million technology campus in Santo Tomas, Batangas](https://www.forbes.com/sites/jonathanburgos/2023/05/03/dyson-expanding-in-singapore-philippines-and-uk-under-firms-34-billion-global-investment-plan/), south of Manila, for software, AI, robotics and electronics work. Dyson's own page puts the investment at [PHP 11 billion](https://careers.dyson.com/en-gb/where-we-are/asia-pacific/philippines/). Dyson is a manufacturer with a large R&D site, so most office-based teams will not copy it directly. It shows how a company can split command and engineering across two countries. Grab runs a similar split on a smaller scale, with its [headquarters in Singapore](https://www.globaldata.com/company-profile/grab-holdings-ltd/) and a [Philippines office in Ortigas](https://www.grab.com/ph/about/). ### Transfer pricing, treaty and data rules Once a Manila team does work for a Singapore parent, the two entities are related parties, and what one charges the other is a transfer price. Singapore's tax authority, IRAS, expects it to match what unrelated companies would agree, which is called the arm's length principle. For a short list of routine support services, IRAS [accepts a 5% mark-up on total costs](https://www.iras.gov.sg/taxes/corporate-income-tax/specific-industries/companies-servicing-only-related-companies) as arm's length. The services must be on the list in Annex C of its Transfer Pricing Guidelines, and all direct, indirect and operating costs must go into the calculation. A Manila team writing software or running analytics for the group is unlikely to be on that list, so ask a transfer pricing adviser to set the mark-up with a proper analysis. Advisers' summaries also note a [5% surcharge on any transfer pricing adjustment IRAS makes](https://rafflescorporateservices.com/singapore-transfer-pricing-documentation-tpd-2026-requirements/) and a requirement to prepare documentation at the time of the transaction. The Singapore-Philippines double tax agreement sets limits on withholding tax, the tax a payer deducts before sending money abroad. Dividends, interest and royalties each have their own cap in Articles 10, 11 and 12 of the [treaty text on the IRAS website](https://www.iras.gov.sg/media/docs/default-source/dtas/singaporephilippinesdta.pdf?sfvrsn=878ef63a_5). For example, Article 11 limits tax on interest to 15% of the gross amount in most cases. The treaty also covers permanent establishment, the point at which a foreign company's local office becomes taxable in that country. Ask your advisers how it treats service fees between your two entities and whether either office creates that exposure. Moving staff data between the two offices is regulated on both sides. Singapore's Personal Data Protection Act has a [Transfer Limitation Obligation](https://www.pdpc.gov.sg/overview-of-pdpa/the-legislation/personal-data-protection-act/data-protection-obligations). It requires that data sent abroad receives protection comparable to what the Act gives it. In the Philippines, the National Privacy Commission enforces the Data Privacy Act. [Its rules](https://privacy.gov.ph/implementing-rules-regulations-data-privacy-act-2012/) cover data sharing agreements and the appointment of a data protection officer. In May 2024 it also issued [model contractual clauses for cross-border transfers](https://www.dlapiperdataprotection.com/?t=law&c=PH). Settle the data transfer terms before the Manila team starts handling Singapore customer or employee data. ### A twelve-month plan The plan below is our own estimate of a sensible order, not a regulatory timeline. Actual timing depends on your incentive approvals and the Manila fit-out. | Phase | Months | Main work | | --- | --- | --- | | Structure | 1 to 3 | Tax and transfer pricing study. Check which incentives your Manila activity can qualify for. Start the Singapore office search. | | Entities | 4 to 6 | Set up the Singapore and Philippine entities. Apply for incentive registration. Sign intercompany service agreements. | | Space | 7 to 9 | Sign the Singapore lease. Lease and fit out the Manila site. Install video-meeting equipment in both. | | People and data | 10 to 12 | Hire the Singapore leadership and Manila team. Put the data transfer terms in place. | Many plans leave real estate until the third phase. With core CBD vacancy at 3.3%, we would start the Singapore search in month 2 or 3 and make any lease conditional on the entity being registered. Manila fit-out can also take longer than expected, so ask each landlord or operator for a realistic handover date in writing. ### Questions to ask before you commit - Which Manila activities will be registered, and has an adviser confirmed that they qualify for the rate in your budget? - How will the Manila team be priced to the Singapore parent, and who signs off the transfer pricing documentation? - Does the space contract let you add or drop seats during the first year, and what does that cost per seat? - Is the Singapore space a serviced office (shared, run by an operator, fully furnished) or a managed office, and which of the two do your security and privacy needs call for? - Do your staff's home addresses fit the site you picked? FlySpaces can compare Singapore and Metro Manila options against your headcount and start date, set out the cost per seat at different terms, and arrange viewings in both cities. A short brief with the number of seats you need in each city is enough to start. *This article is general information, not tax or legal advice. Confirm tax, incentive, transfer pricing and data points with qualified advisers in Singapore and the Philippines.* Tags: [Hub and Spoke Office Philippines](https://blog.flyspaces.com/tag/hub-and-spoke-office-philippines), [Hub and Spoke Office Singapore](https://blog.flyspaces.com/tag/hub-and-spoke-office-singapore) ![](https://blog.flyspaces.com/hubfs/SpacesAsia%20-%20June%202019/author-img.png) ##### [Listerlynn Joy Garingo - De La Serna](https://blog.flyspaces.com/author/joy-garingo-delaserna) Joy Garingo - De La Serna is a Filipino business executive specializing in the real estate, flexible workspace, and Employer of Record (EOR) sectors within the Asia-Pacific (APAC) region. She is involved in creative ventures and community-centric workspace environments that support local startups, founders, and generational shifts in hybrid work styles. 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