As expected, the Singapore Budget 2012 included numerous measures that were aimed at building a more inclusive society. This post-election budget saw several measures aimed at building a stronger Singapore over the longer term. For the corporates, SMEs continue to receive some goodies. There were measures to boost the local tourism industry as well as beef up the healthcare sector. The transport sector also received a boost with the addition of 800 buses. Overall, the key beneficiaries are the transport, healthcare and tourism industries.
As expected, the Singapore Budget 2012 included numerous measures that were aimed at building a more inclusive society. The key announcements/highlights are:
• Aim of achieving productivity growth of 2-3% per year
• Reduce the inflow of foreign workers, with assistance to SMEs
• Introduction of a calibrated reduction in Dependency Ratio Ceilings (DRCs) in the manufacturing and services sectors. DRC specify the maximum proportion of foreign workers that companies can hire
• All employers will receive a Special Employment Credit (SEC) for their Singaporean workers aged above 50 years old and earning up to $4,000 per month
• A 200% tax allowance on the transaction costs incurred for M&A, subject to an expenditure cap of $100,000
• An additional $905 million for the Tourism Development Fund (TDF).
• Funding for 550 buses while the public bus operators will add another 250 buses to reduce waiting times
• Higher CPF rates for employees aged 50 and higher
• Double yearly healthcare expenditure from $4 billion to about $8 billion over the next five years – including better infrastructure and hospital capacity
• GST vouchers for lower-income and older Singaporeans
• Aim of achieving productivity growth of 2-3% per year
• Reduce the inflow of foreign workers, with assistance to SMEs
• Introduction of a calibrated reduction in Dependency Ratio Ceilings (DRCs) in the manufacturing and services sectors. DRC specify the maximum proportion of foreign workers that companies can hire
• All employers will receive a Special Employment Credit (SEC) for their Singaporean workers aged above 50 years old and earning up to $4,000 per month
• A 200% tax allowance on the transaction costs incurred for M&A, subject to an expenditure cap of $100,000
• An additional $905 million for the Tourism Development Fund (TDF).
• Funding for 550 buses while the public bus operators will add another 250 buses to reduce waiting times
• Higher CPF rates for employees aged 50 and higher
• Double yearly healthcare expenditure from $4 billion to about $8 billion over the next five years – including better infrastructure and hospital capacity
• GST vouchers for lower-income and older Singaporeans
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