Singapore budget focuses on relief for households, businesses amid rising costs: ‘we have your backs’
- Measures such as US$445 in vouchers for each household, and rebates for businesses, would provide ‘near-term relief’, No 2 leader Lawrence Wong said
- This year’s budget was based on recommendations put forth by the Forward Singapore report – the result of a nationwide feedback exercise with some 200,000 citizens
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Kimberly Lim
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Published: 4:20pm, 16 Feb, 2024
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Singapore’s second-in-command Lawrence Wong on Friday unveiled a budget aimed at relieving families and businesses of the pressures of rising costs of living, vowing that the government would “always have your backs”, as he announced a slew of benefits including raising the salaries of low-wage workers.
Wong, the deputy prime minister and finance chief, said the government would roll out measures including S$600 (US$445) in vouchers for each household and rebates to businesses, which would provide “near-term relief” amid inflation and higher operating costs.
“These are the concrete ways to help Singaporeans tackle cost-of-living pressures. Let me assure everyone, we will always have your backs,” he said.
Meanwhile, all companies will receive a 50 per cent corporate income tax rebate, capped at S$40,000.
Companies in Singapore will also receive a 50 per cent corporate income tax rebate in this year’s budget, No 2 leader Lawrence Wong said. Photo: AFP
To attract more investors and encourage companies to make sizeable investments in Singapore amid greater competition, Wong said the government would be introducing a Refundable Investment Credit – a tax credit with a refundable cash feature.
“Governments around the world are rolling out vast subsidies to attract investments, especially in strategic industries. For example, in November last year, Japan announced that it would allocate 2 trillion yen, or about S$18 billion, to support its semiconductor industry,” he said.
“We cannot afford to engage in a bidding war with the major economies, but neither should we stand still and just do nothing.”
Singapore’s Deputy Prime Minister and Finance Minister Lawrence Wong. Photo: Bloomberg
This year’s budget was based on recommendations put forth by the Forward Singapore report – the result of a nationwide feedback exercise with some 200,000 citizens.
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The initiative, which covered challenges and proposals on nearly every aspect of Singaporean life, was largely viewed as the first concrete sign of an impending change in leadership for the republic – its third since independence in 1965 – and described as a “primer” and “election manifesto” by political observers who earlier spoke to This Week in Asia.
Wong said the government would be giving its Assurance Package a further boost, with an additional S$600 in vouchers for all Singaporean households to be dished out in two phases, on top of a so-called Cost-of Living payment of between S$200 and S$400, depending on income and properties owned.
This brings the value of the Assurance Package up to S$1.9 billion, up from the estimated S$10.1 billion.
“We have designed the Assurance Package so that lower-income families get more support. We have also ensured that larger households, particularly those with seniors and children, get more support,” Wong said.
