Singapore - Budget sees mixed views from S'poreans, companies

Chairman of the government parliamentary committee (GPC) for finance, trade and industry and Member of Parliament for East Coast GRC, Ms Jessica Tan, kicked off the debate on this year's Budget by praising it for being inclusive.

But she also said that several feedback sessions with residents and grassroots leaders have produced mixed views about the announcements.

Many welcomed the attention paid to senior citizens, the disabled and the lower-income Singaporeans, but more could be done to address the concerns of the singles, the 'sandwiched class, i.e. middle income including retirees" and those who live in private property but are not well off.

Touching on CPF contributions, Ms Tan asked the Government to consider extending the CPF contribution rates for those above 65 years old who can work and are working.

 The Straits Times also reported that Ms Tan suggested allowing low-income Singaporeans aged 60 to 64 years to qualify for the Medisave top-up component of the GST Voucher. Currently this component applies only to those aged 65 and above.

Meanwhile, measures proposed to restructure Singapore's economy, managing the economy's dependence on foreign workers and support for SMEs turned up mixed views.

She said that SMEs will have to adjust in the light of the reduction in the Dependency Ratio Ceilings (DRC) and S Passes, but the enhanced Productivity and Innovation Credit  (PIC) Cash Payout of up to 60 per cent of $100,000, Special Employment Credit and enhanced Double Tax Deduction (DTD) for Internationalisation Scheme were welcome measures.

But Ms Tan also said that further tweaks could be considered. For example, the application process for the Productivity and Innovation Credit (PIC) could be simplified further. The PIC is a government grant aimed at helping small companies boost their productivity.

She also asked if the Special Employment Credit, a wage subsidy for employers who hire graduates of special education schools, could be extended to those that hire disabled non-graduates.

And to encourage employers to hire older professionals, Ms Tan asked if the $4,000 salary cap can be lifted so employers will be more open to having such workers on their payroll.

AsiaOne

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