Budget 2021: Emerging Stronger Together, delivered by Singapore Deputy Prime Minister, Coordinating Minister for Economic Policies, and Minister for Finance Heng Swee Keat has set out the government’s plans on immediate challenges, and its goal to build a stronger Singapore that is economically vibrant, socially cohesive, and a sustainable home for all.
Some highlights include:
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| Source: Singapore Ministry of Finance. Cover, Budget Booklet. |
“We must help Singapore corporates get ready for the impending change in international taxation. There is anticipation of more tax disputes and controversies as governments grapple with their revenue base and the situation is compounded by the shock waves of COVID-19.
"Every government has increased its spending and will need to collect more taxes to fund this. There is a burning platform - a greater need to ensure Singapore gets its correct share or bite from the global tax collection pie,” said Chris Woo, Tax Leader, PwC Singapore.
An S$11 billion COVID-19 Resilience Package (CRP) will address Singapore’s immediate needs to safeguard the health of Singaporeans, continue support for workers and businesses where needed, and provide more targeted support for the worst-hit sectors. This includes S$4.8 billion dedicated towards public health and safe re-opening measures. The remainder has been channelled towards support for workers and businesses that continue to face difficulties.
The government will build a vibrant business sector and an ecosystem for innovation. This includes deepening Singapore’s position as a Global-Asia node by positioning Singapore’s aviation sector for recovery, and investing in platforms that enable local businesses to innovate and collaborate across borders, especially with ASEAN nations.
To encourage Singaporeans to give back to the community, the 250% tax deduction for donations to institutions of a public character (IPCs) will be extended until the end of 2023. The Business and IPC Partnership Scheme, Tote Board’s Enhanced Fund-Raising Programme, as well as ComChest’s SHARE as One matching grant will also be extended. In addition, a new S$20 million Change for Charity Grant will be introduced to encourage businesses to facilitate donations from their customers, in the course of daily transactions.
Budget 2021 introduced several measures under the Singapore Green Plan 2030, including a movement towards going car-lite. Along with investments in public transportation, the government will introduce various measures to encourage the adoption of electric vehicles (EVs) and discourage the use of internal combustion engine vehicles. This includes the installation of 60,000 charging points at public carparks and private premises by 2030, and setting aside S$30 million over the next five years for EV-related initiatives.
To fund sustainability efforts the government will lead by example with the issue of green bonds on select public infrastructure projects. For a start, up to S$19 billion of public sector green projects have been identified.
The public sector will also commit to more ambitious sustainability goals under the new GreenGov.SG initiative. For example, the Ministry of National Development, Home Team Academy, and Temasek Polytechnic are switching to low-global warming potential refrigerant chillers, ahead of the mandatory adoption end-2022. This will reduce 24 kilo-tonnes of carbon dioxide emissions, equivalent to the annual emissions of about 7,400 cars.
Hari V. Krishnan, CEO and MD, PropertyGuru Group said, “We welcome Singapore’s increased commitment to enable sustainable urban living. The latest support measures for residents to go car-lite and further their usage of cleaner-energy vehicles are timely. We also welcome the focus on urban solutions and sustainability under Research, Innovation and Enterprise 2025 (RIE 2025) to help Singapore build a more sustainable and liveable environment. These measures will help each of us place environmental considerations top-of-mind, so we frequently assess the impact of our day-to-day activities.
"We commit to making changes in our own business to meet the goals stated in the recently unveiled Singapore Green Plan 2030, and building a better home for our future generations.”
"Given the recent Green Plan, we look forward to more details of setting Singapore on the path to be a global player in ESG, built on capabilities rooted in new skills are developed and jobs are created and anchored around sustainability; more businesses built on green finance, sustainability consultancy, verification, credits trading and risk management; Singapore being developed into a global centre for green finance; and Singapore developing her own innovation capabilities around sustainability," said Woo.
