The Finance Minister, Mr Lawrence Wong just unveiled the Singapore Budget 2024. Here are our reactions and comments on the Budget proposals.
"The Budget 2024 is a balanced and yet targeted budget addressing the short-term needs of rising costs of living and at the same time providing medium and long-term measures required for upskilling and building a shared future. DPM Lawrence Wong has alluded that SkillsFuture has to be firmly established as a key pillar of Singapore’s social compact. We welcome the Government’s support for those in mid-career paths to upskill and retrain and secure jobs in the long-term."
Wong Sook Ling, Executive Director (Tax Advisory)
"As far as SWOT analysis goes, this year’s Budget felt very balanced as the Government not only focused on building Singapore’s strengths to boost economic growth opportunities, but also demonstrated proactive management of cyber threats and ensuring energy and environmental sustainability, in line with the Budget 2024 theme Building Our Shared Future Together. "
Elis Tan, Executive Director (Transfer Pricing)
"Singapore sets into motion our multi-pronged strategy to offset the looming effects of BEPS 2.0. The new Refundable Investment Credit will help us remain competitive and attractive to global businesses looking to optimise their returns on investments. A generous top-up to the National Productivity Fund coupled with enhanced SkillsFuture programs further enhance the efficacy of our human capital to meet the needs of this businesses. Finally, funding in the artificial intelligence space and the financial sector will cement our key drivers for continued growth."
Elis Tan, Executive Director (Transfer Pricing)
"The corporate tax and personal income tax rebates are much welcome. While this would only benefit those paying taxes, it is certainly a generous gesture which would help businesses and individuals cope with rising operating and living costs. Any help is good help, especially during this difficult time."
Evelyn Lim, Executive Director (Tax Advisory)
"While the recent GST hike and rising cost of living have impacted many households, it is heartening to see the Government’s commitment to permanently defray GST expenses for lower and middle-income families through the GST Voucher Scheme."
Jackson Cai, Executive Director (GST)
"It is encouraging to see the Government providing higher SkillsFuture Credit to assist mid-career Singaporeans in acquiring new skills to secure better employment opportunities."
Jackson Cai, Executive Director (GST)
"The introduction of the cash payout under the corporate income tax rebate framework is a welcomed and much desired move, especially for businesses struggling to keep afloat with fast depleting cash reserves. Previously, the tax rebate alone may not provide relief to such businesses as they were not tax paying to begin with. Such cash payouts may also lower the likelihood of businesses resorting to laying off employees in order to reduce their cash outlay."
Abner Koh, Executive Director (Private Client Services)
"The introduction of the Refundable Investment Credit (RIC) scheme is a necessary move by the Singapore government to attract high quality investments to Singapore amidst a highly competitive global landscape; while playing by the rules of the game in the post-BEPS world. The RIC scheme may turn out to be an even more targeted approach (as compared to the current tax incentive schemes) in attracting specific investments and local expenditure. As for the exact benefit from the RIC scheme compared with those offered by previous tax incentive schemes for the same business activities, we keenly await details and conditions of the RIC scheme to be released by EDB and ESG before further comparison can be done."
Abner Koh, Executive Director (Private Client Services)
"In the face of soaring costs, personal tax and corporate tax rebates emerge as beacon lights, offering individuals and businesses a relief during times of economic uncertainties."
Kylie Luo, Executive Director (Private Client Services)
"Recognising the ripple effect of inflated rents on property tax, the recalibration of annual value bands indeed offers a beacon of relief for owner-occupied property owners. It empathizes the strain on homeowners and alleviates their property tax burdens."
Kylie Luo, Executive Director (Private Client Services)
"Increase in SkillsFuture credit top up, subsidies for full-time diplomas together with monthly training allowances on selected courses for aged 40 and above is indeed encouraging Singaporeans to pursue lifelong learning to support them in the ever- changing world and to be assured of better employability outcomes."
Kylie Luo, Executive Director (Private Client Services)
"The new Refundable Investment Credit scheme is a game changer in the quest for attracting more investment into Singapore. The scheme seeks to supplement Singapore’s existing efforts to retain and attract foreign investments amidst recent international tax developments which has changed the nature of competition for investments globally and reduced the use of tax incentives/policies as a tool to attract investments."
Kylie Luo, Executive Director (Private Client Services)
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