Singapore Budget 2018
The Singapore Budget 2018 is out and we have some early takeaways on what we can expect.
When it comes to daily life changing decisions, the budget is one of the biggest political factors to look out for. Announced annually, the budget sets out our taxes and price fluctuations for the coming year.
With the Singapore Budget just out for 2018, PwC have given us a quick rundown of the biggest things to look out for.
One takeaway from the budget is that the clear winner this year is the Singapore economy as a whole as we move from 2017 to 2018. GDP grew 3.6 percent last year versus 2.4 percent from the year before, and this is expected to continue. At the same time, we achieved a surplus of over $9 billion.
This has enabled us do to a couple of things.
One is perhaps delaying some of the larger tax rises as expected as well as helping us save for a rainy day. In terms of the big expected tax rise, GST, it’s happening, but we have a few years to get ready. The two percent rise won’t happen until 2021 to 2025.
This is the same for no tax on imported e-commerce goods below $400 as the government works out how to tackle that.
So the message is to keep on spending before those rises come through.
In terms of investment, it’s similar themes as before. Gearing up for the future, we have an aging population, much needed infrastructure, technology, innovation disruption and the environment.
For each of these, more money is being put aside.
Infrastructure has an office being set up with significant sums to rail, maritime and air. Technology and innovation is a continued focus, with new grants and public private partnerships encouraged. This is a strong focus of the Industry Transformation Maps (ITMs) coming out this year.
Lastly around the environment, the carbon tax is happening next year and this aims to raise around $1 billion over the next five years.
So, overall messages, what do we think?
Generally, we should be positive. The Singapore economy is doing well and continues to do well, this is enabling us to spend and at the same time invest in the future of Singapore