[Local] Singapore Budget Day *2010 edition

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Singapore to unveil budget for 2008 fiscal year on Feb 15
SINGAPORE : Singapore will announce its national budget for the fiscal year of 2008 on 15 February, in a parliamentary seating.

Analysts say they expect the government to announce measures to help Singaporeans cope with inflation and the higher cost of living.
http://sg.news.yahoo.com/cna/20080128/tap-325422-231650b.html

SINGAPORE: Singapore's Budget will be released on Friday, and observers said it will address the core issues of widening income gaps and rising cost of living.

Central Singapore Community Development Council, the largest CDC in Singapore, handled 600 financial assistance cases last year. But its mayor said the mood has somewhat changed this year.

Zainudin Nordin, mayor of Central Singapore CDC, said: "People are giving us feedback (that) the prices are rising... even the (prices for) things they want to get on a daily basis are beginning to rise. So this is a concern to us too."

He said about 40 per cent of those asking for help are the elderly and needy who simply need that helping hand because they either cannot work or are too sickly to, or they cannot get any support from their families.

And the CDCs are doing more than just giving financial help.

Mr Zainudin said: "We also want to prepare people mentally and psychologically because whenever we face such challenges, Singaporeans need to be more resilient, they need to understand that they need to adapt and manage their resources. It is about managing expectations, moderate their aspirations. So people need to be encouraged to live within their means."

At the CDC level, officers are helping the lower income and needy with acquiring life skills and advice on using their finances resourcefully.

It is hoped that Friday's Budget speech will include measures to strengthen job stability for the lower income and further encourage both employers and employees to embark on skills upgrading programmes.

Upgrading the finances of lower income homes can also come in other ways, said Associate Professor Tan Khee Giap of Nanyang Technological University's Nanyang Business School.

"We should try to entice women from lower income households to come back to the workforce. The economy is... very strong, we need more labour. And if the mother/housewife comes back to work, it will... increase the lower income household's income."

He also hoped that the Ministry of Education would look into an expanded after-school programme, starting from pre-schools, so children from low income homes can spend more quality time in school to get better in their studies while allowing their mothers to go back to work to boost the family income. - CNA/ac

http://forums.sgfunds.com/viewtopic.php?t=8497&postdays=0&postorder=asc&start=25

[tags] : Budget, SBD, 2008

[Vorsprung durch Technik]

no money for the middle-class but taking more... and taking less from the rich. haiz...

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webcast via :
http://nettv.1-net.com.sg/MOF/Budget2008/mof128k.html

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official website via :

http://www.singaporebudget.gov.sg/

Economic Outlook for 2008

1.9 The key factor that will shape the growth of the Singapore economy in 2008 is the global economy, especially the state of the US economy. Many private forecasters now expect the US economy to enter a recession in the first half of the year, although it may be mild. If this happens, Asian exports will be affected. However, the IMF and other global forecasters still expect growth in Asia on the whole to remain healthy. China and India are expected to slow down, but still grow at 10% and 8% respectively on the back of strong domestic demand.

1.10 Overall, on all current indications of global conditions, we expect growth of 4.0% to 6.0% in the Singapore economy this year. This is lower than last year, but well in line with the economy’s potential over the medium term. Our economic fundamentals remain strong. Our pipeline of manufacturing investments remains robust with EDB expecting $16 billion worth of investment commitments this year, on top of the same volume last year. Our services sector too is well-positioned for growth. While demand for services will depend on the growth of the region and the rest of Asia, we have gained significant mindshare as a global financial and business centre.

1.11 However, there are major downside risks to this year’s forecast of growth. A sharper than expected decline in US growth could add to the turmoil in the financial markets, and deepen the credit crunch that is still unfolding. This will inevitably spill over to the Asian economies and markets, and our own growth will be impacted. The outcomes cannot be predicted, but we must be watchful of the risks and be ready to respond to them.

via : http://www.singaporebudget.gov.sg/speech_toc/index.html

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general jest from hearing on the webcast.

R&D is one of the main thrust in this budget. but would it be enough to make Singapore the R&D star?

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Minister of State for Finance and Transport Lim Hwee Hua said this is because petrol duty is a vehicular usage tax aimed at discouraging the excessive use of cars and promoting the greater use of public transport, and these objectives remain relevant.

Mrs Lim was replying to a question posed by MP for Aljunied GRC, Mrs Cynthia Phua, in parliament on Friday.

Mrs Phua had asked if the government would review its tax policy on petrol, diesel and natural gas to help reduce business costs for transport operators, businesses, as well as commuters.

Mrs Lim explained that higher pump prices do not mean that the government gets to collect more petrol duties.

She said: "The excise duty on petroleum is imposed on volumetric bases of 41 cents a litre for 92 and 95-octane petrol, and 44 cents a litre for petrol rated 97-octane and above. The excise duty is therefore a fixed sum per litre of petrol."

There is no excise duty on diesel, fuel oil and natural gas used for generating power.

via : MCF

[Vorsprung durch Technik]

without estate duties, the rich sure get richer. some opportunities for black cash?

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2-room HDB households will continue to get GST offset package, Workfare supplement
http://www.straitstimes.com/Latest%2BNews/Singapore/STIStory_206793.html

Income tax payers to get rebate of 20% on 2008 income
http://www.straitstimes.com/Latest%2BNews/Singapore/STIStory_206796.html

Growth Dividends for all adult S'poreans
http://www.straitstimes.com/Latest%2BNews/Singapore/STIStory_206811.html

Older workers: Bonus to sign up for CPF Life, Medisave top-ups
http://www.straitstimes.com/Latest%2BNews/Singapore/STIStory_206806.html

Estate duty to be removed
http://www.straitstimes.com/Latest%2BNews/Singapore/STIStory_206795.html

read via : http://forums.vr-zone.com/showthread.php?t=237304
*Christine

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Highlights of Singapore's 2008/09 budget

FOLLOWING are the highlights of Singapore's 2008/09 budget delivered by Finance Minister Tharman Shanmugaratnam in Parliament on Friday.

KEY POINTS:
- Singapore 2007/08 budget surplus at S$6.4 billion.
- Manufacturing investment likely S$16 billion in 2008.
- Rising cost of living a major concern.
- There is limit on Singapore dollar appreciation.
- To adjust tax policies to stay competitive.
- Research spending to be increased to S$7.5 billion by 2010.
- Tax deductions for R&D to rise to 150 percent from 100 percent.
- To keep business cost competitive against other cities.
- To defer another S$1 billion of public construction projects.
- Corporate tax rate of 18 percent is competitive.
- To introduce tax incentives for family-owned holdings and insurance brokers - To drop estate duty immediately.
- No cut in personal income tax this year. Grants 20 percent income tax rebate capped at S$2,000.
- To tax all alcoholic beverages based on alcohol content.
- Expects 2008/09 budget deficit of S$0.8 billion.

FINANCE MINISTER'S COMMENTS: ON INVESTMENT
'Our pipeline of manufacturing investments remains robust with EDB (Economic Development Board) expecting S$16 billion worth of investment commitments this year, on top of the same volume last year.'

ON INFLATION
'We seek to moderate imported inflation through our Singapore dollar exchange rate policy. There is a limit to how fast the Singapore dollar can appreciate without hurting our economic performance and growth, and eventually causing wages to fall. An overly strong Singapore dollar can bring inflation down, but at the cost of lower growth and higher unemployment. This is why, while we can mitigate imported inflation through MAS's exchange rate policy, we cannot insulate ourselves completely from the effects of global inflation.'

ON COMPETITIVENESS
'We will also adjust our tax policies so that we stay competitive, support the growth of our SMEs, encourage risk-taking as well as strengthen our role as a financial and business hub.'

ON RESEARCH SPENDING
'We will increase our overall research spending to S$7.5 billion by 2010, or three percent of the GDP, with one-third of this being publicly funded research.'

ON R&D INCENTIVES
'I will increase the tax deductions allowed for R&D done in Singapore from 100 percent to 150 percent. This enhanced decision means that for every S$100,000 of local spending, a company will be able to deduct S$150,000 from its taxable income.'

ON BUSINESS COST
'We have to keep our business costs competitive, and not let them run ahead of the cities we are competing with.'

ON PUBLIC CONSTRUCTION PROJECTS
'The combination of higher raw material prices and work on major new projects such as two integrated resorts and petrochemical plants has caused costs to spike up. To ease the pressure, the government has earlier announced the deferment of some S$2 billion worth of government projecst. We have now decided to defer another close to S$1 billion of projects. This deferment will only affect projects which are less urgent'

ON COPORATE TAX
'With our 18 percent corporate tax rate and the enhancements we have made to our partial tax exemption scheme last year, our corporate tax regime is competitive.'

ON FAMILY-OWNED HOLDINGS INSURANCE BROKERS
'I will introduce a tax incentive scheme for family-owned investment holding companies. The scheme will allow these companies to enjoy the same scope of exemptions that individuals currently enjoy on Singapore and foreign-sourced investment income.

'I will introduce a tax incentive scheme for licensed insurance and reinsurance brokers. They will be taxed at a concessionary rate of 10 per cent on the income they derive from offering insurance broking and advisory services to offshore clients.'

ON ESTATE DUTY
'I have therefore decided to remove estate duty from our tax regime, with effect from today. It is not just a practical or expedient measure, but one that on balance will be in our collective interest.'

ON PERSONAL INCOME TAX
'We will not be making any further move on personal income tax rates this year. But we will continue to watch this and ensure that we are always able to attract and keep talent in Singapore, including those at the top end.'

'I will give an income tax rebate of 20 percent for all resident taxpayers for year of assessment 2008.'

ON ALCOHOL TAX
'With effect from today, all alcoholic beverages will be taxed on the basis of their alcoholic content.'

ON BUDGET DEFICIT
The net effect of these additions is to bring the overall budget balance for financial year 2008 to a deficit of S$0.8 billion.'

Source: http://www.straitstimes.com/Latest%2BNews/Singapore/STIStory_206824.html

read via : http://forums.hardwarezone.com.sg/showthread.php?p=28237009

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more discussion via : http://forums.sgfunds.com/viewtopic.php?t=8497&postdays=0&postorder=asc&start=25

I think Shiny Head has made it clear....estate duty will be history. So congrats to all taking MAS exams.. one less subject.

The lower income gets the most in terms rebates, gst offset package, cpf top-ups, workfare bonuses. They also get the biggest subsidies for housing(additional grants from previous budget) and healthcare(means testing).

The rich can cheer about estate duty being history.

The middle income, i think the tax rebate is UP to $2000. not 2k for all... I am not excited about it. I was hoping for a personal income tax reduction, to offset rising costs of living, since we have been doing well for some time now.

So that is why i say, it is disappointing.

Private Investor wrote:
bungerstar wrote:

The estate duty is GONE wie.


Not sure this will impact the IFAs in anyway since one of the revenue reason is now gone


I think this is good news to the finance industry in general as more global elites would want to come here and jon the elite club, hence more business for the financial services sector.

so it is small fortune out, big fortune in.

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2008 Budget was more for the poorer people.

what would the 2009 holds?

they say to help SMEs... we will see... in 48hours.

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SINGAPORE: Prime Minister Lee Hsien Loong said if the growth estimates for this year materialise, Singapore will see its worst economic performance in decades. As a response to the crisis, Mr Lee said the government's Budget to be announced on Thursday will not be an ordinary one.

Speaking at a dinner to mark a decade of partnership between the National University of Singapore (NUS), Nanyang Technological University (NTU) and the Massachusetts Institute of Technology (MIT) on Wednesday, Mr Lee said the Budget's focus will be to keep companies afloat so that they can provide jobs for Singaporeans.

So there will be special schemes to help businesses reduce costs and gain access to urgently-needed financing.

He added that the Budget will also have measures to help households especially needy families.

Mr Lee said: "The Budget will not turn around our situation overnight. No government package can do that. But it will help us to see through this difficult period and emerge stronger.

“But even under the best scenario, we have to be prepared for a long recession and probably several years of slow growth thereafter."

Mr Lee said the Budget will have measures to prepare Singapore for the long term, like improving the country's competitive edge and building new capabilities.

He said Singapore will continue to invest steadily in education, research and development.

One such example currently in action is the Singapore-MIT Alliance which started 10 years ago during the 1997 Asian Financial Crisis.

The programme has produced some 780 graduates who have gone on to contribute in life sciences, pharmaceuticals and engineering.

Under it, S$48 million will be given to selected 100 PhD students for their research projects. - CNA

via : http://www.singsupplies.com/showthread.php?t=15528

and another thread on the budget expection.
http://www.singsupplies.com/showthread.php?t=15511

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general expectations are tax cuts, n rebates.

there's probably going to be a big chunk to spend in the various dept on land, building, defence, research etc.

keyword would probably reduce cost. keeping employment rate manageable/low.

the govt will hold back half of what they can do. only to release them later part of the year as off-budget addons.

that's my guess. will know later. keke.

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Budget won't be ordinary 
The target is to keep companies afloat, save jobs and help low-income Singaporeans, says PM



THE Singapore Budget to be announced today will not be an ordinary one, either in its contents or overall fiscal position, said Prime Minister Lee Hsien Loong, giving a quick glimpse of its focus.

Its target will be to keep companies afloat, save jobs and help low-income Singaporeans, he said yesterday at the 10th anniversary dinner of the Singapore-MIT Alliance, comprising the Massachusetts Institute of Technology, National University of Singapore and Nanyang Technological University.

The aid for businesses will include special schemes to help them reduce their costs and maintain access to urgently needed financing, he added.

These new schemes will be in addition to measures taken by the Government recently to tackle the credit squeeze faced by companies here.

Mr Lee noted that by helping companies stay afloat, 'they can provide jobs for Singaporeans'.

There will also be measures to help households, especially needy families, he added.

However, he cautioned against expecting the Budget to bring an economic turnaround overnight.

'No government package can do that. But it will help us to see through this difficult period, and emerge stronger.'

As it tackles the immediate problems, the Budget will also not lose sight of Singapore's long-term needs and opportunities, said Mr Lee, citing two areas where Singapore would keep investing steadily: education, and research and development.

Such measures will improve Singapore's competitive edge and build new capabilities, he added.

'Asia is the place where the world's growth has been and will continue to be after this storm has passed. When the clouds clear, as they eventually will, Singapore must be well-positioned to grow at the heart of Asia again,' he said.

The PM also warned against expecting too much from the unprecedented steps governments across the world, including in the United States and Europe, had taken to tackle the crisis.

'We fervently hope these efforts will succeed. But even under the best scenario, we have to be prepared for a long downturn, and probably several years of slow growth thereafter.'


Finance Minister Tharman Shanmugaratnam will deliver the Budget statement at 3.30pm today. It will be broadcast live on TV and radio, and also on the Internet at www.singaporebudget.gov.sg

Source: http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_329254.html

via : http://forums.vr-zone.com/showthread.php?t=383251

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catch it live on http://nettv.1-net.com.sg/MOF/budget2009/index.asp

Benefits Calculators
http://www.singaporebudget.gov.sg/benefits/index.html