(Reuters) – Following are some excerpts taken from Singapore’s 2022 budget proposals announced by Finance Minister Lawrence Wong to parliament on Friday.
SUPPORT PACKAGES
– “While the overall outlook is positive I recognise that there are segments of the economy still struggling. I will therefore provide targeted help for our workers and businesses in these sectors through a S$500 million ($372.61 million) jobs and business support package.”
– “All of these amount to a significant package of S$560 million to help Singaporeans with their utility bills children’s education and daily essentials.”
SPENDING AND REVENUE
– “On the expenditure side, our needs are significant and growing, By 2030 we expect government expenditures to increase to more than 20% of GDP. Most of this increase in spending will go to healthcare.”
– “On the revenue side we would not have enough to cover additional spending needs… This is why we will make significant enhancements in our tax system in this budget. These tax adjustments will help raise additional revenue and also contribute to a fairer revenue structure, this means everyone chips in and contributes to a vibrant economy.”
INVESTMENT AREAS
– “This budget will set up the key changes we must make to invest in new capabilities we must take to invest in new capabilities, advance our green transition, review and strengthen our social compact and develop a faired and more resilient structure.”
– “We will also invest in future technologies like 6G, to ride the next communications and connectivity wave.”
– “Alongside infrastructure improvements I will set aside an additional S$200 million offer the next few years to enhance schemes and build digital capabilities in our businesses and workers.”
LABOUR
– “We will update the framework for employment pass (EP) holders. EP holders should be professionals and senior executives who can contribute to our economy, sharpen the skills of those we work with and strengthen our workforce.”
– “From September this year the minimum qualifying salary for new EP applicants will be raise from the current $4,500 to $5000. For the financial sector which has a higher salary norms, this will be raised from the current $5,000 to $5,500
– “Beyond the qualifying salary we will refine how we assess EP applications to improve the complementarily and diversity of our foreign workforce and also to increase certainty and transparency of businesses.”
– “Let me emphasise that Singapore will continue to stay open and welcome talent from around the world. The adjustments in our foreign worker policies apply mainly to the broad middle of the workforce.”
GREEN COMMITMENTS
– “We believe we can bring forward our net zero timeline. We will therefore raise our ambition to achieve net zero emissions by or around mid-century.”
– “The path towards net zero will entail significant economic restructuring and changes in how we live and work in the future. Everyone …will face difficulty choices. Costly investments may be required.”
“We aim to issue $35 billion in green bonds by 2030 to fund public sector green infrastructure. This will include bonds issued by the government as well as statutory boards.”
($1 = 1.3419 Singapore dollars)
(Compiled by Martin Petty; Editing by Kim Coghill)
