Singapore Budget 2018: Live Updates
Finance Minister Heng Swee Keat will be delivering the Budget at 3:30pm, and we’ll be updating this article live with pointers mentioned during the speech.
Longer term goals of economic restructuring and transformation are expected to be covered this year.
In the meantime, watch this video and find out more about the purpose of the annual Budget!
Join us at 3:30pm, and watch the livestream here, or keep refreshing this page for the Budget’s pointers as they are delivered.
- Singapore’s GDP grew by 3.6% last year, up from 2.4% in 2016, exceeding Govt’s forecast of 1% to 3%.
- We’ve been experiencing good productivity growth – highest since 2010.
- With the support of businesses, Trade Associations and Chambers and unions, Government has launched 21 out of 23 Industry Transformation Maps
- Budget must be strategic to identify future needs and preparations
- Integrated because it should pull together different sectors to build a better SG for everyone
- All developments represent opportunities for us – ride on and contribute to Asia’s growth
- There are threats to us – tensions on South China Sea
- Second shift – new technologies changing the way we live, work and play
- Interacting with traditional businesses – competitors but also complementary
- Focus more on intellectual property, first-mover advantage
- Securing better jobs and higher wages wont be just about how well we do in school but how well we adapt and grow
- Third shift is ageing
- Significant increase in healthcare, and resident workforce will shrink
- Need to support our workforce with calibrated inflow from abroad
- Govt must prepare for 3 major shifts in the coming decade: rise of Asia, emerging tech and ageing society
- Welcome investments and talents to SG and be bold in venturing out into the world
- Develop deep capabilities and strengthen relationships locally and abroad
- Build a smart, green and liveable city to improve the quality of lives of Singaporeans
- Be more carbon efficient as a society
Building a vibrant and innovative economy
Need to ensure we have enough resources to do everything we need to do
Must support firms and workers to capture new opportunities and new term challenges
Though economy picked up last year, we remained concerned about wage cost
But wage growth is good for S’poreans. We need to keep improving productivity and improve quality growth
- 20% co-funding for 2018, 15% for 2019, 10% for 2022. 1.8 billion dollars over next 3 years
- Strengthen support for workers – for lower to middle income support, and convert Work Trial scheme into a Career Trial scheme
- Our companies must keep up and workers must adapt as the skills evolve
- Need to differentiate themselves and venture abroad
Made a good start with ITMs, need more cluster-based approach
- First enabler: Innovation. Must make innovation pervasive for firms of every size, and make use of technologies
- One of the Singaporean companies mentioned: PanUnited
- This Budget will support firm across the entire value chain
- Support businesses to buy and use new solutions
- Existing grants for adoption of pre-scoped, off the shelf technologies to be streamlined
- Govt will pilot the Open Innovation Platform to help businesses find partners to co-create solutions
- Sustain R&D spending at 1% GDP annually
- Maritime and aviation transformation – will provide support of up to $500 million for these two programmes
- National Research Foundation (NRF) and Temasek Holdings will launch an NRF-Temasek IP Commercialisation Vehicle
- At least $100m from Govt and Temasek
- Implement National Robotics Programme – particularly in the construction industry
Second key enabler: building deep capabilities
- In April, we will merge SPRING and IE Singapore into Enterprise Singapore
- Enterprise Development Grant (EDG): up to 70%
Will exempt 75% of tax instead of 100% for startups for their first $100k