This year, Singapore start its journey for the next 50 years. Our first 50 years was an extraordinary story of overcoming challenges together. Today, even though Singapore is in a much better position than 50 years ago, our small island nation now faces new and tough challenges - domestically and globally.
This year - 2016, Singapore's Finance Minister Heng Swee Keat delivered his first Budget in Parliament on March 24. Here are key points from Budget 2016 that may interest you:
- Setting up of 'Our Singapore' fund. Like the SG50 fund, it will support projects that build the spirit of resilience and promote unity and sense of being Singaporean. The fund size is $25m and will be set up by 2H16.
- From 1 July 2016 to end-2018, business that help employees volunteer will receive 250% tax deduction.
- Pilot community networks for seniors will be established in order to encourage seniors to stay active, healthy and meaningfully engaged.
- Seniors will continue to receive other support like elder care subsidies and GST vouchers, which comes on top of support received from their children.
- Silver Support Scheme will cover up to 30% of seniors. Modest but meaningful supplement to retirement incomes. Not to substitute other forms of support like personal/family savings.
- Worker Income Supplement (WIS) scheme: Raise qualifying income saving to $2,000 per month, which will help bottom 20% income workers. Qualifying criteria will also be simplified, and payout systems will be enhanced. Now, workers will see quicker payouts, monthly instead of quarterly thus benefiting up to 460,000 Singaporeans.
- New outdoor campus will be built on Coney Island, in order to foster a spirit of adventure among children, build confidence and build team spirit across schools. This is expected to be ready 2020 and cost $200m.
- The Fresh Start Housing Scheme: provide grant 35k to let families with kids own a flat with shorter lease. To qualify, parents need to stay employed and make sure kids attend school.
- Parents to get $3,000 in Child Development Account of babies born from March 24
- Government will set aside $4.5b under the industry transformation program to support enterprises and industries. This will include increased funding for SPRING, IE Singapore, and the Economic Development Board to support economic development.
- Infrastructure development will see a further $1 billion top-up to the Changi Airport development fund. Enhancement of R&D capability will mean $40 billion will be directed towards industry collaboration, with a top-up fund of $1.5b to enterprises.
- To promote startups in new and existing industries, a new entity called SG Innovate to help link startups with mentors, venture funding. SG Innovate will build over what has been done to expand accelerator programs to new industries.
- SPRING will partner with Trade Associations and Chambers (TACs) on 30 projects to reach 3,000 SMEs. The government will provide $30m over the next 5 years to support Trade Associations and Chambers (TACs).
- National Robotics Program: Solution providers will offer cheaper packages for SMEs. It can help create value added jobs in various sector such as healthcare, construction, manufacturing, logistics. The government will provide $450m in support of the national robotics program over the next 3 years.
- The government will provide an automation support package for an initial period of 3 years. Currently, there are no incentives to promote automation. The government will shoulder up to 50% of the cost of qualified automation projects, with a maximum grant of $1m. Qualifying projects will also receive 100% allowance for automation equipment. Access to loans will also be improved.
- A business grants portal will be launched in the fourth quarter of 2016. Firms will not need to go from agency to agency to access incentives. Various support schemes will be reviewed and simplified.
The Singapore government has indicated that its premature to relax property cooling measures in 2016
- The government felt it is still premature to relax property cooling measures._
- The government will encourage greater lending for SMEs catalyzing $2b of loans over 2 years.
- Help will be provided to heartland shops by enhancing revitalisation of shops package in HDB town centers. SPRING will work to strengthen capabilities of heartland businesses.
- Defer levy for offshore, manufacturing workers for 1 year, These measures to address near-term concerns while supporting restructuring
- Special Employment Credit, which is due to expire this year, will be modified and extended to 2019. It will cover 340,000 workers
- Re-employment age raised to 70 years old.
- Corporate income tax rebate will be increased from 30% of tax payable to 50% of tax payable.
RSS Feed
