This year's budget explores several avenues in heading towards building a better Singapore. Strengthening productivity incentives, capabilities for new growth industries and sustaining a fair and progressive fiscal system are some of these areas which the Government has targeted to chart the way ahead.
Strengthening Productivity Incentives
These enhancements will involve additional Government resources of about $500 million over three years. The enhanced incentives will be at three levels of the economy – industry-wide collaborations, individual firms and Singaporeans at all levels of the workforce.
Notably, the Government will enhance the Workfare Training Support (WTS) scheme for lower-wage Singaporeans as well as programmes to help PMEs (Professionals, Managers and Executives) to develop further expertises or to make mid-career switches.
Capabilities For New Growth Industries
The Government will keep developing new capabilities to stay relevant in the world and create higher value industries and high quality jobs for Singaporeans. On this note, it will set aside $500 million over the next five years to support a Future of Manufacturing plan.
Sustaining A Fair And Progressive Fiscal System
The Government has also made further steps to make the fiscal system more progressive. It will implement a progressive tax structure for owner-occupied residential properties and non-owner occupied residential properties as well as for passenger cars.
More significantly, its moves to strengthen the Workfare Income Supplement (WIS) will go a long way in impacting workers positively.
These major enhancements will be made:
Expand WIS Coverage For More Workers
· Monthly income ceiling will rise to $1,900 a month, which will benefit about 480,000 Singaporeans
Increase WIS Payouts For More Cash
· Maximum WIS payouts will rise by 25 – 50 per cent or up to a maximum of $700 for workers aged 45 and above
· Proportion of cash to CPF will increase to provide more help for workers with immediate expenses
· Higher payments to CPF Medisave and Special accounts to help boost healthcare and retirement savings of older low-wage workers
CPF Restoration For Low-Wage Workers For More CPF
· Employer and employee CPF contributions rates to be restored for workers who are earning less than $1,500 a month
