Celebrating sectors from Singapore Budget 2024: Banks, tech, and renewables, among others

SINGAPORE: Sectors who will be celebrating Singapore Budget 2024 support measures and tax reliefs include banks, renewables, technology, consumer staple sectors, and manufacturing, Singapore Business Review reports.

According to analysts at Maybank, the S$1.9 billion boost to the Assurance Package is set to alleviate the high cost of living for Singaporean households.

This package, comprising vouchers, cash payouts, and rebates, aims to tackle inflationary pressures, potentially reducing asset quality risks for banks.

In addition, the 50% corporate income tax rebate is expected to ease financing risks, especially benefiting lending giants like DBS, OCBC, and UOB.

The S$2 billion additional funding for the Financial Sector Development Fund and advancements in AI are predicted to support lending institutions and the Singapore Exchange.

For firms in the consumer segment, such as supermarket operators and retail landlords, cash handouts and income tax rebates are viewed favourably.

Defensive operators like Kimly and Sheng Siong are anticipated to see increased consumer spending.

Additionally, with Singapore’s net zero ambitions in mind, companies in the renewables sector are poised to benefit from the new S$5 billion Future Energy Fund, aiming to stimulate green investments.

On a note dated Feb 17, Maybank economists highlighted the budget’s focus on incentivising investments in green transition, human capital, critical infrastructure, and high-quality foreign direct investment (FDI).

The Refundable Investment Credit, featuring investment tax credits with refundable cash features, is expected to support companies in high-value initiatives, from research and development to expanding manufacturing capacity.

Tech firms like ST Engineering and Venture are cited as top beneficiaries of such schemes.

In the property market, the lower Additional Buyer’s Stamp Duty (ABSD) clawback rate is predicted to have a “marginal positive impact” on the sales volumes of real estate developers such as UOL and CDL.

However, analysts caution that near-term relief measures may offer “less help to smaller and less profitable companies,” as they continue to face pressure from increasing wage bills, rentals, and utilities.

Nonetheless, the economists believe that longer-term schemes aimed at improving productivity and promoting social inclusivity will contribute to long-term growth. /TISG

Read also: Analyst: ABSD adjustments’ impact on property developers may be negligible