SINGAPORE: The head of corporate for a global fund services company lauded this year’s National Budget as one designed to bring advantage to Singapore’s economy.
After enumerating several of the measures Mr Wong outlined in the Budget, Mr Acconci wrote, “Overall, the Singapore Budget 2024 presents a forward-looking approach designed to bolster the economy, support workforce development, and ensure that the country remains a competitive global player in the coming years.
It offers a glimpse into the nation’s commitment to nurturing an innovative, skilled, and sustainable business ecosystem.”
A commentary on the Budget from Mr Dario Acconci, the head of corporate for Asia at Hawksford, a corporate, private client and fund services provider, was published on Wealth Briefing Asia on Feb 26.
The 2024 Budget statement was rolled out on Feb 16 by Deputy Prime Minister and Finance Minister Lawrence Wong and will be debated in Parliament beginning from Monday (Feb 26).
Mr Acconci noted that the Budget addressed increased costs of living as well as prioritised sustainability and boosted competitive advantages, particularly pointing out the measures aimed at helping businesses, such as the Enterprise Support Package (ESP), which provides support as companies face higher costs in the form of salaries, rental, and utilities.
Mr Wong announced that the S$1.3 ESP has three parts: a corporate income tax rebate, an enhanced Enterprise Financing Scheme, and an extension to SkillsFuture Enterprise Credit.
The SkillsFuture Level-UP Programme, specifically aimed at those aged 40 and above, gives Singaporeans in this age bracket a top-up in SkillsFuture credits of S$4,000 in May.
This year’s Budget also has a 50 per cent Corporate Income Tax Rebate with a maximum of S$40,000 as part of the ESP which includes a minimum benefit of S$2000 in cash for companies with at least one local employee in 2023. Meanwhile, individuals will receive a 50 per cent personal income tax rebate for this year, at a maximum of $200.
Mr Wong also said that the Government is investing S$3 billion in Research, Innovation, and Enterprise in 2025.
It will also introduce the Refundable Investment Credit scheme and provide top-ups of S$2 billion each to the National Productivity Fund and the Financial Sector Development Fund.
Moreover, the government aims to uplift lower-wage workers with an increase to the Workfare Income Supplement scheme payouts for a maximum of S$4,900 per year beginning in January of next year.
The qualifying income cap for this scheme will also be raised to S$3,000 by January 2025. As for the Local Qualifying Salary, this will be raised to S$1,600 by this July.
Mr Acconci also highlighted that the government is set to put more than S$1 billion over the next five years into National AI 2.0, which will help enhance the country’s artificial intelligence capabilities.
“Part of the investment will be used to ensure that Singapore can secure access to the advanced chips that are so crucial to AI development and deployment.
We will also work with leading companies in Singapore and around the world to set up their AI Centres of Excellence here,” Mr Wong said on Feb 16. /TISG