Highlights: Singapore's budget follows up on long-term economic strategy

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Reuters SINGAPORE
Last Updated : Feb 20 2017 | 2:07 PM IST

SINGAPORE (Reuters) - The following are some highlights of Singapore's budget proposals for the fiscal year that begins April 1.

The budget statement comes after a key advisory panel this month proposed a 10-year strategy aimed at ensuring annual economic growth of 2-3 percent. The strategy is mainly centred on trade partnerships, deepening the workforce's tech skills and digitalising the economy.

It also comes at a time when labour market conditions have worsened amid lacklustre economic growth, with job redundancies in 2016 hitting a seven-year high and total employment recording the smallest increase in 13 years.

Singapore posted its fastest growth in more than six years in the fourth quarter, expanding at an annualised 12.3 percent from the previous three months. But full-year growth in 2016 remained anaemic at 2.0 percent.

INFRASTRUCTURE:

-- Government will bring forward S$700 million ($494 million) of public sector infrastructure projects

ECONOMY/COMPANIES

-- Singapore will take steps to help weak marine, construction sectors

-- The government is deferring announced foreign worker levy increases in marine and process sectors, will proceed with hikes for construction.

-- Government to help firms invest in digital capabilities

-- State commits up to S$600 million to help firms scale up and internationalise

-- Government will put aside S$2.4 billion over four years to implement strategies proposed by the Committee on the Future Economy

-- It will also top up national research fund by S$500 million and national productivity fund by S$1 billion

TAXES

-- S$310 million to be set aside for corporate tax rebates in 2017, 2018

ENVIRONMENT

-- A carbon tax on direct emitters such as power stations will be introduced from 2019. It is looking at a carbon tax rate of S$10-20 per tonne of greenhouse gas emissions.

-- Water prices will increase by 30 percent in two phases, beginning July 1, 2017

(Reporting by Singapore bureau; Editing by Richard Borsuk)

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First Published: Feb 20 2017 | 1:56 PM IST

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