Containing few measures in the way of providing shorter term support for businesses, it instead concentrated on addressing Singapore's longer-term challenges and building a better future for Singaporeans.
Taken in totality, this year's Budget shows a shift in the Government's attitudes and policy mindset. Besides some measures targeted at businesses, the other three main areas of focus are social mobility, support for the elderly and disabled, and building a more equitable tax system in Singapore.
As part of the Government's plans to restructure the economy, its goals continue to be on getting companies to increase their productivity, reducing the country's reliance on foreign labour, and creating more employment for Singaporeans.
Incentives were however dangled to encourage businesses that innovate, to grow, improve productivity and design better jobs to attract local workers. They include the Special Employment Credit (SEC) for employing older workers, and enhanced training and support for small and medium-sized enterprises (SMEs).
While these measures do not address short-term cost issues directly, they are targeted at helping companies gear up for longer-term growth.
We hope you will find our Budget commentary publication this year of assistance in understanding the most recent changes and new initiatives unveiled in Budget 2012.
Tay Hong Beng
Head of Tax
KPMG in Singapore
"Singapore Budget 2012" is issued in summary form exclusively for the information of clients and staff of KPMG Services Pte. Ltd., KPMG Advisory LLP and KPMG LLP. It should not be used or relied upon as a substitute for detailed advice or a basis for formulating business decisions. It should not be regarded as a basis for ascertaining liability to tax or determining investment strategy in specific circumstances. In such cases, specialist advice should be taken.
Please note that the Budget proposals and other tax changes summarised in this website may be amended significantly before enactment.