Singapore
Singapore’s Finance Minister Heng Swee Keat outlined a set of targeted measures in his budget speech to help the struggling offshore and energy services industry and spur construction.
The government will bring forward S$700 million (Dh1.81 billion; $493 million) worth of infrastructure spending and defer levies on foreign workers in the marine and process sectors for another year, Heng told lawmakers on Monday. He also extended rebates on corporate income taxes.
“Given the uneven performance across different sectors, we need to go beyond general stimulus,” he said in a prepared speech.
Singapore is having to navigate immediate growth risks — such as weak consumer demand and the rising backlash against free trade — alongside longer-term challenges, like a rapidly ageing population. The budget seeks to flesh out initiatives outlined by a government-appointed panel two weeks ago aimed at driving growth to 2 per cent to 3 per cent a year over the next decade.
“This budget gives a bird’s-eye view of the economy,” said Lawrence Loh, an associate professor at the National University of Singapore’s Business School. “It covers all the critical bases, most of them quite expected, outlining the report of the Committee on the Future Economy.”
Singapore’s government is fiscally conservative since it’s mandated by law to run a balanced budget over its term of office. Heng raised the budget surplus in the year ending March to S$5.2 billion compared with a previously estimated S$3.4 billion after spending targets were missed and revenue improved slightly. The surplus will narrow to S$1.9 billion in the year beginning April 1, or 0.4 per cent of gross domestic product.
— Bloomberg
