Singapore Budget 2024 Highlights: What Businesses Need to Know

The Singapore Budget 2024, delivered by the Minister for Finance, outlines key fiscal policies and strategic initiatives to address economic resilience, social support, and business competitiveness. Here are the major highlights:

Economic Growth and Resilience

1. Support for Businesses:
   • Enhanced tax incentives and grants for SMEs and startups, including an extension of the Enterprise Innovation Scheme and support for digital transformation.
2. Green Economy Initiatives:
   • Increased funding for sustainability efforts, including incentives for renewable energy adoption and green financing schemes.
3. Infrastructure Development:
   • Continued investments in transport, housing, and connectivity to enhance Singapore’s status as a global hub.

Tax Adjustments

1. Corporate Tax Changes:
   • Introduction of measures aligning with global tax developments, such as the OECD's BEPS 2.0 framework.
2. 50% Corporate Tax Rebate:
   • A one-time corporate tax rebate of 50% (capped at a specific amount) to support businesses, particularly SMEs, in managing rising costs.
3. GST Adjustments:
   • Confirmation of GST increase to 9% from January 1, 2024, with additional rebates for lower-income households to mitigate the impact.
4. Property and Wealth Taxes:
   • Potential adjustments in property tax rates to ensure a more progressive system.

Support for Individuals and Households

1. Cost of Living Assistance:
   • Enhanced GST Vouchers, U-Save rebates, and targeted financial aid for lower-income families.
2. Workfare and Retirement Support:
   • Increased CPF contributions for older workers and additional incentives for lifelong learning and workforce upskilling.
3. Housing and Healthcare Benefits:
   • Enhanced grants for first-time home buyers and continued support for MediShield Life enhancements.

Innovation and Workforce Development

1. SkillsFuture Enhancements:
   • More funding for workforce training, digital skills programs, and support for mid-career transitions.
2. Tech and R&D Investments:
   • Boost in public and private sector collaboration in emerging technologies, AI, and deep-tech sectors.

Social and Community Initiatives

1. Support for Families and Seniors:
   • Additional child development and elderly care benefits.
2. Mental Health and Well-being:
   • Increased funding for mental health programs and workplace well-being initiatives.
3. Community Grants and Social Inclusion:
   • Strengthened measures to support persons with disabilities and other vulnerable groups.

Conclusion

Singapore Budget 2024 reflects a balanced approach to sustaining economic growth while ensuring social inclusivity. Businesses and individuals are encouraged to take advantage of the various incentives and grants introduced. More details on the implementation of these measures will be provided by the relevant government agencies in the coming months. For further insights and how these changes impact your business, contact Apexia Corporate Advisory today.