​Singapore Budget 2018 — Functional But Uninspiring

Beyond the meagre $100-$300 bonus payout that has been roundly ridiculed and the impending goods and services tax (GST) hike, there are many other talking points in Singapore Budget 2018.

Delivered in two parts by Finance Minister Heng Swee Keat on February 19, the talking points were built around what was announced, and what was not raised.

In the first of its Keep It Going sessions this year, STORM.SG gathered a disparate group of panelists at Suntec Convention Centre, to discuss the issues around Singapore Budget 2018. It ranged from infrastructure spending to sports, taxes and the future generation, education and the marketing of Singapore, among others.

The panelists at the session:
P.N. Balji, Media Commentator
K.C. Lau, Managing Partner, K.C. Lau & Co.
Richard Hoon, CEO, I Search Worldwide
Dr Clive Choo, Senior Lecturer in Strategy, Nanyang Business School
Ku Swee Yong, Co-Founder HugProperty
Tan ChinKar, Founder, Write Editions
P. Jeyaratnam, Executive Chairman, S&J Asia-Pacific Ventures
Sam Quek, Co-Founder ES Power
It was moderated by STORM.SG Publisher, Kannan Chandran.

Type Of Budget

From “catch up” to “not painful”, “not innovative” to “conservative” this year’s budget was described in many ways, showcasing a variety of readings into it.

Balji, who draws upon years of experience in the media industry, calls this a “catch up” budget.

He wonders if the expenditure on infrastructure could have been better spread out, if not for the fact that the MRT issues required a lot of fixing and the hospital crunch was not anticipated.

Lau, an accountant, was pleased to note that the SMEs are “the biggest winner” in this Singapore Budget 2018, though he felt the stamp duty hike by 1% for residential property over $1 million is not good as the cost of ownership was already so high.

Property agent Ku countered that most of the 80% living in public housing will not be affected by the $1 million price point. But he did bemoan the fact that with so many layers of taxes, real estate tax is becoming murky at a time when our neighbours are making it more streamlined.

How Will It Be Implemented?

Strategy lecturer, Dr Choo’s concern was more about the implementation of the policies. “They talk about the capacity transfer programme — transferring foreign talent capabilities to locals. I hear from my friends in the finance and IT industries that all the senior positions are taken by foreigners, and a lot of them recruit their own people. That means our local talent in the middle will have a hard time going up.

“The programme sounds good, but how will it be implemented?” Dr. Choo wonders.

Source: STORM SG, 6 March 2018