Singapore Budget Commentary 2016

The Singapore Budget 2016 themed “Partnering for the Future” was unveiled by the Finance Minister, Mr Heng Swee Keat on 24 March 2016. The message was clear for all to come together as partners to transform Singapore’s economy through enterprise and innovation and to build a more caring and resilient society.

Recognising current business conditions are difficult and uncertain, the Government is providing support to address the near-term concerns of businesses, whilst supporting enterprises and industries to restructure and move forward. The shift from broad-based to targeted support is applauded given that it is an imperative approach towards building a stronger and more productive economy for the long term.

A caring and resilient society is as important as a robust and productive economy. Hence, this Budget is aimed at caring for our people, namely our young, seniors, low wage earners and people with disabilities. At the same time, this Budget also sought to encourage corporate social responsibility and the spirit of giving. A little disappointing, though, is the silence on personal tax rebate.

In good and bad times, opportunities are abundant. Businesses which are prepared to take risks, engage in deep innovation, grow through non-organic means, invest in capability building and training and expand internationally have much to gain from this Budget. They can also expect easier access to the various government assistance schemes with the launch of the Business Grants Portal.

As Singapore continues its journey in economic and social transformation, the way forward is to seize opportunities amidst challenges and charge ahead through strengthened partnership.

BDO Singapore is pleased to offer our insights on the key developments and changes of Singapore Budget 2016 in our annual commentary. For further enquiries, feel free to contact your BDO contacts or drop us an email at info@bdo.com.sg.