Driving commercial and political engagement between Asia, the Middle East and Europe
Driving commercial and political engagement between Asia, the Middle East and Europe
Driving commercial and political engagement between Asia, the Middle East and Europe
Singapore’s 2018 Budget, unveiled in Parliament by Minister for Finance Heng Swee Keat yesterday, aims to prepare for major shifts in the next decade.
In his speech, the Minister said that the Budget was meant to be “a strategic and integrated plan to position Singapore for the future, to prepare for three major shifts in the coming decade: a greater economic emphasis on Asia, the emergence of new technologies, and an ageing population.”
Citing Brexit as an example, the Minister noted that advanced economies had turned their attention inward in reaction to domestic pressures. In contrast, Asia was playing a larger role in global trade and investment flows – from China’s bold plans under the Belt and Road Initiative to ASEAN countries moving up the value chain.
To prepare for these shifts, Singapore’s Budget 2018 aims to develop a more vibrant and innovative economy; to build a smart, green and liveable city; to foster a caring and cohesive society; and plan ahead for a fiscally sustainable and secure future.
New initiatives to this end include a doubling of the corporate tax rebate, setting up a new Infrastructure Office to bring together local and international firms to develop, finance and execute infrastructure projects, and implementing a carbon tax.
While welcoming the enhancement and extension to the corporate tax rebate, some companies have noted that the focus on shorter term budget measures to help businesses has fallen due to the stronger economic growth in 2017.
According to UOB, the focus on shorter term measures fell to 13 per cent of total economic measures, from 25 per cent in Budget 2017. That said, UOB economist Francis Tan also noted in a Straits Times report that “the Ministry of Finance continued to focus on allocating a larger part of its resources towards longer term economic restructuring, compared to those for short term relief measures.”
The shift of economic power to Asia was discussed in ‘Asia as a financial services partner for London’, a research report compiled by Asia House for the City of London Corporation, published last month.
