Andy why labour-intensive industries must not be ignored.
KPMG released its reactions to the recently delivered Singapore Budget 2013. Here's the analysts' overall comments:
Tham Sai Choy, Managing Partner, KPMG in Singapore says: The focus of Budget 2013 is on creating a better Singapore and a more inclusive society for all Singaporeans.
This is a laudable goal, and demonstrates that the Government has listened carefully to feedback from all segments of society. It is heartening to see help for Singaporeans who would otherwise be left behind. We applaud the Government’s efforts to encourage greater social cohesion expanding our social safety network for those in need.
The announcements of Budget 2013 have the right focus. Improving productivity and innovation is important to improving the competitiveness of Singapore’s companies. As we strengthen these companies, we hope to see a greater focus on innovation and branding.
Carefully designed incentives and grants can help to build flourishing Singapore companies with strong brands that fully capitalise on the growth in Asia. At the same time, their unique brand identities will help these companies to endure difficult times.
Tay Hong Beng, Head of Tax, KPMG in Singapore says: While we don’t see any drastic change to the income tax rates, we have to recognise and acknowledge that a considerable amount of money will be channelled to the lower income and those in need. We welcome that.
Improving productivity is an important initiative given the limited resources in Singapore. The enhanced tax incentives for productivity are worth applauding.
However, it would have been more complete and holistic an approach if value-creation measures targeted at brand building and innovation activities also featured in this push to grow local businesses.
Our economy is moving towards a new paradigm and we have to recognise that. This Budget is very much focused on productivity and helping the lower income group as well as the elderly.
We now await the details for implementation and execution, and look forward to more information about how it will reach and impact the targeted groups.
We welcome the corporate tax rebate and it looks to be an extension of the previous SME grant. However, like this grant – it does not seem to extend to sole proprietorships and partnerships.
While sole proprietors and partnerships may benefit from the individual tax rebates, it is worthwhile noting that the individual tax rebate is capped at $1,500 and the corporate tax rebate at $30,000.
Alan Lau, Partner, Tax, KPMG in Singapore says: This year's Budget announcement has a strong SME focus. The Government has pulled out all the stops to help our local enterprises, but has not forgotten the bigger boys. A 30 percent corporate tax rebate will definitely help reduce business costs.
Here is the full copy of KPMG's reactions to Singapore Budget.
More From Singapore Business Review