Singapore appointed 2 idiots to lead the task force.

[jw5]

from straitstimes.com:

Budget debate: S'pore must maintain fair and progressive system of taxes and benefits, says Lawrence Wong​

SINGAPORE - Even as it seeks to raise revenues to meet growing spending needs, Singapore must insist on "keeping faith" with both current and future generations through a fiscal structure that is fair, inclusive and progressive, Finance Minister Lawrence Wong said.

This entails a good mix of income, asset and consumption-based taxes - which is why the goods and services tax (GST) cannot be ignored, Mr Wong said in rounding up the debate on Budget 2022 on Wednesday (March 2).

"We have designed our system on the principle of collective responsibility," he told Parliament in underlining why Singapore needs to raise the broad-based consumption levy from 7 per cent to 9 per cent.

"Those who have greater means bear a higher burden, and they draw less on government support… Those with fewer means carry a lighter share, but they still contribute something and, in return, they receive more benefits from the Government," he said.

"In this way, we all do our part to help ourselves and one another, and we strengthen the trust that binds us together as a society," he added in a 1½-hour speech wrapping up three days of debate during which 64 MPs spoke.

The House on Wednesday endorsed this year's $109 billion Budget, including plans to raise the GST rate in two stages - by 1 percentage point on Jan 1, 2023, and by a further 1 percentage point on Jan 1, 2024.

Opposition members objected to these plans. Leader of the Opposition and Workers' Party (WP) chief Pritam Singh recorded his party's dissent, saying "no offset package lasts forever" in reference to a $6.6 billion raft of measures to help cushion the blow of the GST hike.


In their speeches earlier in the week, WP MPs and the Progress Singapore Party's (PSP) Non-Constituency MPs Hazel Poa and Leong Mun Wai had cited disagreement with the GST increase as their primary reason for objecting to the Budget.

On Wednesday, Mr Wong began his response by noting that the Russian invasion of Ukraine would have an impact on the global economy. The Government is monitoring the risk - in growth and inflation - to Singapore's economy, he said.

"If the situation worsens, we will not hesitate to take further actions to protect jobs and to help households and businesses deal with increased costs," Mr Wong said.


He then acknowledged MPs' earlier questions and suggestions on labour policies and the green economy, among other issues, though much of his speech was focused on taxes.

"In many countries, the tendency is for politicians to focus only on the spending side, because it is inconvenient to talk about taxes," said Mr Wong. "As a result, these governments spend beyond their means, they run up unfunded obligations and debt, and they kick the fiscal can down the road. We are not immune to such pressures."

He reiterated that an increase in healthcare and social spending would be necessary and unavoidable, given Singapore's rapidly ageing population. To fund these pressing revenue needs, the GST increase cannot be pushed back any further.

While addressing alternative revenue options raised by MPs, he slammed the WP and PSP for their "simplistic and divisive" proposals to make other groups - such as the wealthy, large companies, and future generations - pay more tax in lieu of raising the GST.

Singapore cannot sustain a system where the bulk of the tax burden is borne by a small group at the end, Mr Wong stressed.

He also said the opposition MPs' criticisms of the GST offsets being temporary and the tax hike disproportionately affecting the poor were "misguided claims", given the schemes to ensure the effective rate for the lower-income remains unchanged.

Mr Wong also promised that the Government would continually review and update its system of taxes and transfers, to mitigate the pressures of social inequalities.

Mr Singh later rose to point out that since the GST hike was first announced in 2018, global events like the pandemic have since pushed inflation to its highest in years. "Is this a reasonable thing to do in these circumstances?" he asked of the tax hike.

Acknowledging that it was a very difficult decision to make in view of concerns over rising prices, Mr Wong said this was why the GST hike was delayed and staggered over two steps.

"If indeed inflation turns out to be more persistent and higher than expected, which may happen, we will deal with that decisively," he said.

Later, in response to questions from WP MP Leon Perera (Aljunied GRC) on rules and the optimal level for the reserves, Mr Wong said he could not understand why the party was willing to touch the reserves, but reject the option of a GST increase.

"I can only therefore ask whether you are taking things too lightly, or whether you are raising this in opposition because of… political reasons, or other things, as opposed to seriously looking at the facts and doing what's right for Singapore," he said.

A move like a GST increase is not the popular thing for him to do, Mr Wong said in his speech. "Certainly not for my first Budget as Finance Minister. But I have a responsibility to do what's right, and what's in the best interest of all Singaporeans. Not what's politically expedient now," he said.

"I have confidence that Singaporeans can instinctively sense if any Budget is not worthy of them and fails to renew their trust in the Government, in each other, and in the future," Mr Wong concluded.

"They can decipher whether the Budget reflects our shared vision of a fair and just society, whether this Government is one they can trust to manage our resources in a way that is in line with our values, and whether this Government is keeping faith with them and their children."

 

[jw5]

from straitstimes.com:

Budget debate: S'pore will not change approach to reserves as it has to think of next generation, says Lawrence Wong​

SINGAPORE - Singapore will stick to its current approach of husbanding its reserves because it has to consider the needs of the next generation, said Finance Minister Lawrence Wong on Wednesday (March 2).

He warned against the temptation to take the easy way out by spending more of the country's reserves, stressing that Singapore must ensure it has the resources to protect itself if need be.

"It begins with something small; let our standards slide a little, just tweak the parameters a little. What harm does it do?" Mr Wong said in a speech to round up the debate on this year's Budget, where he rebutted points made by MPs from the Workers' Party (WP) and Progress Singapore Party (PSP).

"But over time, these small things add up. Then it becomes politically very challenging to roll back any benefits and to raise taxes, or even to talk about it. And the country ends up quickly in a downward fiscal spiral."

The WP and PSP had called on the Government to adjust the Net Investment Returns Contribution (NIRC) framework to recurrent spending to be raised to 60 per cent from the current 50 per cent, and include a proportion of proceeds from land sales into recurrent revenue.

These would be alternatives to raising the goods and services tax (GST) from 7 per cent to 9 per cent, they said.

In response, Mr Wong said it is not responsible for MPs to push for changes in the rules at the first sign of need, taking the easy way out to avoid raising taxes.


If Singapore's NIRC had been 20 per cent less than what it is today, the GST rate would need to go up to 11 per cent - instead of 9 per cent - to meet the funding gap, he said. In other words, drawing more NIRC now means the next generation would have to pay more in taxes.

He also reiterated that the Government does not publicise information on the full extent of Singapore's reserves for strategic reasons. But it will put out as much information as possible on fiscal projections, including key expenditure drivers.

"I can't help but feel that the persistent requests for more information are red herrings. They are distractions from the key problem at hand," he said, adding the main issue is that of increasing revenue through taxes to meet future expenditure needs.

He also set out the Government's approach to proceeds from land sales, which are currently ploughed into Singapore's reserves. Half of the overall expected long-term real returns are then spent through the Net Investment Returns framework.

This is done because land sales do not involve the creation of new wealth, but represent the conversion of a physical asset to a financial one, Mr Wong said. By not directly spending proceeds from land sales, Singapore thus avoids several pitfalls.

First, land prices move in cycles and can be volatile, creating too much uncertainty for the Government to plan long term. And if a government becomes too reliant on land sales to fund spending, it will have a vested interest in keeping land prices high - which will ultimately hurt the economy and Singaporeans.

In contrast, the current strategy provides a stable and sustainable income stream over time, he said.

Mr Wong reiterated the importance of saving up for future generations, noting that Singapore has tapped about $37 billion from its reserves over the past two years and will continue to draw on them this year to keep up the fight against Covid-19.

"We are not out of the woods yet, and I would say that we will not be able to put back what we have drawn down from the past reserves any time soon," he said.

It is especially important to ensure that Singapore has sufficient resources to deal with whatever lies ahead, he added, given that the world is likely to become less hospitable for small countries.

"I say we continue to husband our reserves, keep faith with the generations after us, and ensure that they too will always have access to this rainy day fund to meet any emergencies - and importantly, a steady stream of income for their future needs."

WP MP Leon Perera (Aljunied GRC) then asked when it would be reasonable to review the rules governing Singapore's national reserves, and if there is an optimal level of reserves that Singapore is aiming to accumulate.

He also took issue with Mr Wong's use of the word "cavalier" to describe the opposition's suggestions to change the rules, noting that the ruling party has itself changed these rules in the past. The rules were amended in 2008 to create the NIRC framework, and again in 2015 to add state investment firm Temasek to the framework.

"And if that wasn't cavalier, why is it cavalier when the Workers' Party now suggests doing that?" Mr Perera said.

Mr Wong replied that Singapore would likely have to experience a very disruptive event with permanent effects in order to once again relook rules on the use of its reserves.

At that point in time, the Government would very carefully study its options because there are deep implications for inter-generational equity in changing the rules, he said, adding: "Essentially, resulting in our next generation having to pay more taxes."

Mr Wong asked why the WP feels it is acceptable to turn to the reserves to raise revenue when Singapore has other tax options, including raising the GST while offsetting its impact on the less well-off.

"Why turn to the reserves when we have all these options, and why make the GST into the last resort?" he said. "Reserves - OK. Future generations - never mind, let's do it. But GST - cannot touch. Why take that approach?"

Mr Wong said the WP chose not to support this year's Budget based on a "misguided view" that GST hurts the poor, even though the Government has explained why it does not. He asked if the party was opposing the Budget because of political reasons, instead of looking at the facts.

"The Workers' Party is entitled to their views and to... not support the Budget," he said. "But it will not stop me, as Finance Minister, from doing what is right, and it will not stop this government from continuing with all our efforts to build a better Singapore."

 

[jw5]

Lawrence remembers Mdm Sim.

Lawrence Wong​

1 hr ·
Some of you might remember Mdm Sim Soo Wee — I mentioned her in my #SGBudget2022 speech.
She was just seven years old when she lost her parents during the Japanese occupation. There are many others like her who lived through those difficult years. My mother is one of them, and still has vivid memories of what happened then. For pioneers like Mdm Sim and my mother, their experiences through poverty and hardships left them with indelible lessons.
As a nation, we have come a long way since WWII. Over the subsequent decades, we’ve confronted many other crises. Through these crucibles of fire, we forged our Singapore spirit. Adversity has not weakened us. It has strengthened our steel and deepened our bonds.
Let us continue to uphold this same spirit to overcome all challenges ahead of us, and to build a better Singapore together!

 

[jw5]

Lawrence is very grateful to his team.

Lawrence Wong​

10 hrs · Instagram ·
Happy International Women’s Day!
Very grateful to our wonderful team of Ministry of Finance (Singapore) officers who have been working so hard over the past few months to prepare #SGBudget2022. We have many women officers in the ministry, with several holding leadership positions including our two Permanent Secretaries!
Over the past year, we have engaged many people in our conversations on Singapore women’s development. Many good ideas have come up, from better support for caregivers to stronger measures against workplace discrimination. When the plans are ready, MOF will commit the necessary resources to realise them.

 

[jw5]

Lawrence is positioning Singapore to go green.

Lawrence Wong​

5 hrs ·
An important part of my #SGBudget2022 speech was how we are positioning Singapore to go big in the green space

In Parliament of Singapore today, a few of my cabinet colleagues elaborated on how we will seize opportunities in the green economy; move decisively to achieve net zero and build a low-carbon future for all.
Sustainability is a collective effort and that is why many government ministries are involved in our #SGGreenPlan — I urge everyone to join us towards a cleaner and greener future.
(

from my bike ride

)
Climate Change SG Ministry of Sustainability and the Environment Ministry of Trade & Industry Ministry of Transport, Singapore Ministry of National Development Ministry of Education

 

[jw5]

Lawrence Congratulates Raja!

Lawrence Wong​

5 hrs ·
Congratulations Raja on your appointment as President of the FATF! We are very proud as Raja is also the first Singaporean to lead this inter-governmental body.
The FATF is the global watchdog aimed at combating money laundering and terrorism financing. It sets international standards to prevent and combat financing in these areas, and also to stop the funding of weapons of mass destruction.
Raja has contributed greatly to the work of the FATF, and I am confident that his leadership and experience in areas of policy, regulation and law enforcement, will enable him to effectively steward the team for the future.
(

: LinkedIn / T. Raja Kumar)

 

[jw5]

Lawrence speaks about healthcare.

Lawrence Wong​

1 hr ·
Healthcare is one of Singapore’s key priorities, not least because of our rapidly ageing population and the need to take better care of more seniors.
In #SGbudget2022, I spoke about the expected increase in healthcare expenditure over the coming years, which is the reason why we need to raise GST. In fact the additional GST revenues alone are not sufficient to cover the increased healthcare spending.
This is why we also need to fundamentally reorganise our healthcare system and focus more on preventive care - to keep all of us healthy and ensure that patients are cared for at the most appropriate setting.
In Parliament today, my colleague Ong Ye Kung shared the plans for “Healthier SG”. It’s a major move to ensure every Singaporean is cared for by a family doctor (under one of our three healthcare clusters); enrolls in a healthcare plan; and importantly embraces a healthy lifestyle.
This is a major undertaking involving many components and stakeholders. Ministry of Finance (Singapore) will do our part to review and update our funding approach, and help all Singaporeans live healthier lives!
#HealthierSG

 

[jw5]

from straitstimes.com:

Budget debate: S'pore monitoring Ukraine situation closely, will not hesitate to help firms and protect jobs​

SINGAPORE - Singapore is monitoring the situation in Ukraine and its global impact closely, and if things worsen, the Government will not hesitate to take further action to help businesses, workers and households, Finance Minister Lawrence Wong said in Parliament on Wednesday (March 2).

In his speech to round up the Budget debate, Mr Wong said: "Singapore's direct trade linkages with Russia and Ukraine are relatively small, but the conflict will impact the global economy and global energy markets, which will in turn affect us."

Actions are being taken to support firms and help consumers cope with the uncertainties caused by the Ukraine conflict and inflation, he added.

These include enhancing the resilience of energy supplies and extending the Temporary Electricity Contracting Support Scheme to help affected consumers, especially small and medium-sized enterprises (SMEs).

Retailers are also offering more value-for-money house brands to consumers and a Committee Against Profiteering will be set up to tackle unfair price hikes.

The Monetary Authority of Singapore has also taken the pre-emptive step of tightening monetary policy in January to moderate the impact of higher global inflation, Mr Wong added.

He said: "We are monitoring the external situation and the risk for our economy closely - risk in terms of both growth and inflation.


"If the situation worsens, we will not hesitate to take further actions to protect jobs and to help households and businesses deal with increased costs."

He added that while there are near-term uncertainties in the external environment, Singapore's overall prospects remain good.

"We are operating from a position of strength and that is why we can make bold moves now, which will position us well to seize the opportunities ahead," he said.

One such step is to accelerate the decarbonisation of the economy and achieve net zero emissions by or around the mid-century, he said, which means adjusting to new levels of carbon tax to facilitate this transition.

This will bring green opportunities and investments, he added.

"We will also step up training efforts to equip Singaporeans with the right skills to take on these new green jobs," he said.

"At the same time, we will continue our research and development efforts in emerging technologies like carbon capture and low-carbon hydrogen... All of these moves will enhance and strengthen Singapore's position as a choice destination for new investments in the green economy, and ultimately create many more good jobs for Singaporeans."

In his speech, Mr Wong acknowledged the concerns of MPs that the Budget has introduced too many changes at once, including the goods and service tax (GST) hike and changes to foreign worker policies, which will add to the cost pressures that firms face in an already difficult time.

"I understand these concerns, and that is why we are continuing to provide significant support to the harder hit sectors, including through the Small Business Recovery Grant. And we are also phasing in the new requirements," he said.

He noted that the carbon tax increase and foreign manpower policies will be staggered over phases so businesses can plan ahead.

"Even as we make these policy moves over the coming years, we continue to pay very close attention to our SMEs... We will continue to help our SMEs upgrade and maintain a vibrant SME sector in Singapore. This includes our heartland enterprises."

Mr Wong added that many support and grant schemes for firms are designed to provide the most benefit to SMEs. Before the Covid-19 pandemic, smaller firms were receiving about 12 times more grants from the Government on a grant-per-dollar-of-revenue basis compared with larger firms, he noted.

The various support schemes favour SMEs that have been actively training their workers and increasing their productivity, he said.

"If the SME is prepared to make the effort, it will enjoy very generous co-funding."

If SMEs stack schemes such as the Productivity Solutions Grant and SkillsFuture Enterprise Credit, which helps to fund programmes, they pay as little as $300 for a $10,000 productivity project, Mr Wong said.

He added that the Government will proactively reach out to SMEs through agencies like Enterprise Singapore and the trade associations and chambers, so they can access information on schemes and available support.

"I recognise that the operating environment in Singapore can be challenging for businesses. We are no longer competing based on being a low-cost business location," Mr Wong said, adding: "Where we can, the Government will manage the pace of cost increases and make it easier to do business."

 

[jw5]

Lawrence thanks his fellow parliamentarians.

Lawrence Wong​

6 hrs ·
After more than a week of debates in the Parliament of Singapore, we have wrapped up the Committee of Supply 2022 debates. Parliament passed the Supply Bill of $109 billion, including special transfers in the coming fiscal year. This year, we saw the highest level of participation in the debates, in the last five years. We spent more than 73 hours and took about 130 parliamentary questions over the past two weeks!
I thank my fellow parliamentarians for sharing their views on #SGBudget2022. One issue that we are monitoring very closely is the cost of living. That is why we have a comprehensive set of measures to help Singaporeans — especially our lower- and middle-income households. And we will provide further support if needed.
The most debated aspects of the budget are the revenue changes. Various alternatives to the GST increase were suggested. Unfortunately, the sums in these alternative proposals do not add up, and they will not generate enough revenue to close our funding gap. Ministry of Finance (Singapore) has put out a more detailed explanation on this: https://go.gov.sg/b2022explainers
It is never popular to raise taxes, let alone the GST. But we have to do the right thing to uphold sound management and stewardship of our finances. And we will ensure that the tax changes are implemented in a way that is fair and inclusive and does not hurt the low-income. I thank everyone for staying unified and resilient. Let's continue to work together for a fairer, more inclusive, and greener future

 

[jw5]

from straitstimes.com:

Singapore to ease Covid-19 rules in several steps: Lawrence Wong​

SINGAPORE - Singapore will ease its Covid-19 rules in several steps, after a streamlining of measures into five key areas takes place from next Tuesday (March 15).

Finance Minister Lawrence Wong said there will be different stages of easing for each of the five parameters: group sizes, mask wearing, workplace rules, safe distancing and capacity limits.

For example, the maximum size permitted for social gatherings will eventually go up from five to a larger number. "But it will not be the final ending point. We may go further beyond that," he said at a press conference held by the multi-ministry task force tackling Covid-19 on Friday (March 11).

"And likewise, for masks, for capacity limits, for the back-to-office parameter, you can imagine going from 50 per cent to a higher number before you reach 100 per cent, for example. So there would be a few steps."

Mr Wong was responding to a question on whether serving alcohol after 10.30pm and live music would be allowed in the next step of easing.

It is too early to say exactly when rules on alcohol consumption after 10.30pm and other measures relating to nightlife will be eased, he said, adding that this is something the Government is studying very carefully.

The minister also set out his thinking on why Singapore has chosen to distil its safe management measures to focus on five areas.


Group sizes directly affect the number of close contacts a person has, and are a key factor driving infections, he said. This is why the limit on the size of social gatherings remains at five people.

One change is that households will be allowed to host five visitors at any one time, compared to a maximum of five visitors a day now.

"This may be seen as an easing in some sense, but in fact, most households do not receive multiple sets of visitors outside of festive periods," noted Mr Wong.

"That's why... we felt that simplifying this particular rule will not add that much to transmission risk."
Mask-on rules remain as they have proven effective at protecting against infection, he added, while zoning requirements for events have been removed as Singapore relies on masks and vaccination to prevent the virus from spreading.

A capacity limit of 50 per cent will still be imposed for larger settings and events where more than 1,000 people are present, as these pose greater infection risks.

The current workplace restrictions, which allow up to 50 per cent of those able to work from home back in the office, remain unchanged.

These changes mean that rules across various settings will be made more consistent, Mr Wong said. For instance, people are currently barred from eating with their colleagues in the office, but can do so if at a hawker centre.

The minister said the task force has given the simplification of Covid-19 restrictions much thought. "We believe that doing so will not result in additional transmission risks, because this is not meant to be an easing of rules - it's meant to be a streamlining exercise."

Singapore will, however, be relaxing its rules on team sports. From Tuesday, up to 30 fully vaccinated people - including players, coaches, umpires and so on - will be allowed to take part in sports at selected venues.

The authorities will expand the number of approved venues in the coming weeks.

The decision to ease rules on team sports was made because there is no clear evidence that the transient contact during sports drives infection numbers up, Health Minister Ong Ye Kung explained.

"Sporting activities bring tremendous benefits, especially to our young, physically and emotionally," added Mr Ong, who co-chairs the task force with Mr Wong and Minister for Trade and Industry Gan Kim Yong.

"After two years of suspending sporting activities, I think that suspension is taking its toll," said Mr Ong.

 

[jw5]

Lawrence gives an update.

Lawrence Wong​

8 hrs ·
At the MTF press conference yesterday, we updated that the simplification of safe management measures (SMM) will take effect from 15 March.
The streamlining of SMMs to 5 key parameters (or SMMs 1-5) was announced last month but deferred due to the heavy workload in the healthcare sector. Now that we are past the peak and daily cases are coming down, we are able to proceed with the changes.
In the coming weeks, as cases continue to come down, we expect that the pressure on our healthcare system will ease further. If that happens, we will be able to take significant steps to ease up further, ie to allow freer international travel and also to relax our SMMs based on the 5 key parameters, i.e. group size, mask wearing, safe distancing, capacity limits, and % back to work.
MTF is reviewing these and other parameters, while keeping a close watch on our healthcare system. We will provide further updates when ready.

 

[jw5]

from straitstimes.com:

Tax raises never popular, but right thing to do for sound stewardship of S'pore's finances: Lawrence Wong​

SINGAPORE - It is never popular to raise taxes, let alone the goods and services tax (GST), but the Government has to do the right thing to uphold sound management and stewardship of the country's finances, said Finance Minister Lawrence Wong on Friday (March 11).

His remarks come as two weeks of debate on the Budget drew to a close and Parliament approved $109 billion in planned spending for the coming financial year.

In a Facebook post, Mr Wong noted that the most debated aspects of the Budget were the revenue changes, and various alternatives to the GST increase were suggested. "Unfortunately, the sums in these alternative proposals do not add up, and they will not generate enough revenue to close our funding gap," he said.

The revenue from the GST rate increase is meant to cover necessary and unavoidable government spending on healthcare and other social spending.

In his Budget speech on Feb 18, Mr Wong announced that the planned goods and services tax hike would be delayed to Jan 1, 2023, and the rate would be increased by one percentage point from 7 to 8 per cent then, and to 9 per cent on Jan 1, 2024.

During the debate, opposition MPs had objected to the tax hike and proposed alternatives, such as more taxes on the wealthy and on large companies, or to draw more from the national reserves.

In his post on Friday, Mr Wong pointed readers to explainers on the Ministry of Finance (MOF) website, which recap points he had made in rounding up the debate on the main Budget on March 2.

The ministry said that the Government had studied all options to address the funding gap and decided on a three-pronged approach.

First, the GST rate increase will yield $3.5 billion in revenue yearly.

But the bottom 30 per cent of Singaporean households will not be impacted, as the increase will be covered by offsets, said MOF.

Second, top income earners - the top 1.2 per cent of those who pay personal income tax - will pay higher sums from 2024 as the top marginal personal income tax rate increases from 22 per cent to 24 per cent.

While some have suggested further raising personal income tax rates for more revenue, the MOF said there is a limit to how much more can be done in this manner.

"For instance, to raise the same amount of revenue of $3.5 billion as the GST rate increase, we will need to raise the top marginal personal income tax rate from 22 per cent to 42 per cent for chargeable income in excess of $320,000," it said.

This assumes the tax base remains unchanged - meaning that people do not relocate. "But that is not realistic. Such a sharp increase in personal income tax is untenable and will badly damage our competitiveness," said the ministry.

"In reality, to raise the same amount as a GST increase through higher personal income tax, we would end up having to raise the personal income tax rates for a broader group of income earners, including upper-middle-income and even middle-income earners."

The third prong to generate revenue is through higher wealth taxes, mainly in the form of property tax.

MOF noted that the Government has been raising wealth taxes for residential properties and cars over time - as announced in the Budgets in 2010, 2013 and 2018.

This year's Budget included measures to collect additional $380 million yearly in property tax from all non-owner-occupied residential properties and the top 7 per cent of all owner-occupied residential properties, as well as more fees from buyers of high-end cars.

While the Government continues to study all options to tax wealth effectively, there remain challenges in doing so. Some have suggested a net wealth tax, but this is difficult, as many forms of wealth are mobile, and as long as there are differences in wealth taxes across jurisdictions, such wealth can and will move, said MOF.

This is why many jurisdictions have abolished their net wealth taxes - only three Organisation for Economic Cooperation and Development jurisdictions now have a net wealth tax, it added. These are Norway, Spain and Switzerland.

The middle- and upper-middle-income individuals may also be disproportionately affected compared with the rich who can find ways to avoid paying net wealth taxes through tax planning, said MOF.

"We welcome ongoing feedback on how to make a suggested net wealth tax work in practice in Singapore's context, when almost all our competitors in this region and worldwide do not levy such a tax," it said.

MOF added that other alternative taxes are also not viable solutions.

It said an increase in corporate tax is difficult as at this stage, it is premature and difficult to determine the eventual fiscal impact of the BEPS 2.0 - a framework to redesign the international rules for corporate tax. Singapore must also expect global competition for investments to intensify in a post-pandemic future, said MOF.

"Even if we can generate additional corporate tax revenue from BEPS 2.0, the revenues will have to be reinvested into enhancing our overall competitiveness, so that we can continue to attract our fair share of investments and create good jobs for all Singaporeans," it said.

Taxes on externalities are also not viable to close the funding gap - the carbon tax increase as announced in Budget 2022 is meant to be channelled towards decarbonisation and sustainability efforts, while alcohol and tobacco duties are meant as deterrents and not for revenue generation, said MOF.

Another suggestion raised was to draw more from the reserves or use more from land sales. "That means using more from the reserves today and leaving less behind for future generations. This will translate to a heavier tax burden for our children and the next generation of Singaporeans," said the ministry.

It said that in a scenario where Singapore were to have 20 per cent less in reserves than it has today - had its predecessors chosen to spend more from the reserves years ago - "our GST would now need to increase to 11 per cent instead of 9 per cent".

"We should keep faith with future generations and ensure that they too will always have access to sufficient resources to meet any emergencies, as well as a steady stream of income for their future needs."

 

[jw5]

from straitstimes.com:

Budget debate: Building blocks for a fairer, greener and more inclusive Singapore​

SINGAPORE - If Singapore's Budget 2022 statement was a post-pandemic road map for the city state, then the ensuing debates on each ministry's spending plans could perhaps be described as the building blocks for what this Singapore could look like.

Finance Minister Lawrence Wong's Budget speech on Feb 18 crystallised Singapore's priorities in generating revenue to meet rising healthcare expenses, to bridge social inequalities and to take proactive steps on sustainability.

He proposed that these be achieved through, among other things, a delayed goods and services tax increase; progressive moves in hiking personal income and property and luxury vehicle taxes for high earners; and a raised carbon tax rate to match a more ambitious target of net-zero emissions by or around 2050.

These headline changes to the tax system were set aside when MPs gathered in the House to scrutinise all 16 ministries' budgets, filing more than 600 "cuts" or short speeches containing questions and suggestions.

Over the past two weeks, some newly announced policies stood out for how they attempted to address concerns on the ground.

For some time now, Housing Board flat owners - usually from minority races - have felt penalised in the pocket by a policy that fixes quotas for units owned by each ethnic group in a block or precinct. They now have the option of asking the HDB to buy back their flats.

Employers long frustrated by the opaque nature of work pass approvals should welcome a new points-based system for higher-paid foreign professionals seeking a job here. The framework will evaluate factors such as their qualifications and the hiring firm's diversity of nationalities.


Another thread was support for the most vulnerable - from the low-income and migrant workers to former offenders and people with disabilities.

Under a Progressive Wage Mark accreditation scheme, employers must pay all local staff a salary of at least $1,400, and fulfil training requirements for workers at different skill levels, among other things. From March next year, companies will need this accreditation to take on government contracts.

There were also decisive near- and long-term moves in the drive towards sustainability, with hundreds of millions pumped into firms and industries to spur reduction of emissions, and into electric vehicle infrastructure to encourage adoption.

A hotly debated disposable bag charge will finally take effect, at minimally five cents a bag at most supermarket outlets here.

And as part of a wider healthcare strategy, 10 new polyclinics will be built by 2030, with their doctors plus general practitioners taking on a larger role in attending to the public. This will free up hospitals to focus on the demands of a rapidly ageing population.

Taken together, these themes provide some indication of the contours of a future society being shaped - one which Mr Wong envisioned, in his Budget round-up speech, as a fairer, greener and more inclusive one.

In further delaying a hike in the goods and services tax to next year and implementing it in two stages, Finance Minister Lawrence Wong cited concerns over rising prices.

This attention to ground sentiment was a theme throughout the ministries' debates, as measures were announced to tackle issues raised by various groups - from home owners struggling to sell their flats, to residents dealing with noisy neighbours, to healthcare workers increasingly facing abuse amid the pandemic.

Some of these changes seek to address concerns over fairness and just treatment, across race, nationality, jobs and aptitude in school.

• The Housing Board will offer to buy back flats from owners who find it difficult to sell them due to the Ethnic Integration Policy. To be eligible, they need to have owned the flat for at least 10 years and made regular, genuine attempts over six months to sell it at a reasonable asking price on the open market.

• A points-based system called Compass (Complementarity Assessment Framework) will be used to evaluate higher-paid foreign professionals applying for Employment Passes to work in Singapore. This is in addition to a salary threshold that was raised for the third time in under three years. The minimum pay for mid-level skilled employees on S Passes has also been increased, although those in seven selected occupations will be able to switch to become work permit holders instead.

• As part of a shift in focus away from grades alone, more schools are being added to the subject-based banding programme, which lets students take subjects at different levels according to their strengths. The programme will eventually replace the current streaming system. Junior colleges will also offer more places under the direct school admission (DSA) route for students with talents other than in academics. Mid-year exams in all primary and secondary schools will be scrapped.

• Make-up pay for operationally ready national servicemen (NSmen) will be automatically computed, removing the need to manually claim lost income during NSmen activities. There will be a base monthly pay of $1,600 for all, regardless of rank and vocation.

• A panel will be set up to define what constitutes unacceptable neighbourhood noise disturbances. The Government will refer to these norms when facilitating mediation at the Community Disputes Resolution Tribunals. Consumers and small businesses can also settle drawn-out complaints and issues with telcos through an Alternative Dispute Resolution Scheme, instead of going to court. The telcos will bear 50 per cent to 90 per cent of fees.

• The courts will be given more powers to ensure judgments in civil proceedings are enforced, a move that will help small businesses and people representing themselves - who may otherwise spend disproportionate time, effort and cost to ensure compliance.

• A work group will look into preventing abuse and harassment of healthcare workers. Work processes will also be reviewed and measures put in place to boost well-being - especially of junior doctors. Healthcare staff have been under siege throughout Singapore's Covid-19 fight, with long hours and fatigue leading to higher resignation rates.

Building a secure country and sustainable economy​

Budgets are also about concrete moves to meet immediate, pressing needs - and with the Russian invasion of Ukraine, it was apt that the Ministry of Defence (Mindef) announced a major upgrade to deal with the looming spectre of digital threats.

Just as key is preserving Singapore's status and competitiveness as a global hub, and for the nation to become more sustainable through the Singapore Green Plan 2030. Here are significant steps taken in these directions.

• A new branch of the military - the Digital and Intelligence Service (DIS) - will be set up to complement the army, navy and air force. It will integrate the Singapore Armed Forces' military intelligence services, cyber defences, electronic protection and C4I (command, control, communications, computers and intelligence) systems. Mindef and Nanyang Technological University have also launched a programme to train selected full-time national servicemen to become digital specialists under the DIS.

• As part of efforts to stop scams, money mules will no longer be able to escape punishment and will instead face money laundering charges with lower culpability. It was previously difficult to prove their intent and hence prosecute such individuals who move tainted funds for crime syndicates.

• A safety rating system for e-commerce platforms will be introduced, and telcos will be required to install enhanced safeguards to block scam calls, SMSes and websites.

• Support will be injected into all levels of the economy - from $50 million to help heartland shops go digital, to the Singapore Global Enterprises programme that will help to raise local talent and local firms into global players. These come under the Singapore Economy 2030 vision, which includes an overall target to grow exports to at least $1 trillion by 2030, and plans and strategies across the key economic pillars of services, manufacturing, trade and enterprises.

• The aviation sector will get $500 million to rebuild capacity and reclaim Singapore's position as a global air hub. The sum will be used to support manpower, industry transformation and safe air travel and operational needs.

• A new research institute on Jurong Island will explore ways to reduce the industrial sector's carbon footprint, while manufacturing firms and building owners will get more funding and grants to adopt energy-efficient technologies and cut down on emissions. At least $300 million will be invested to reduce emissions in the maritime industry as Singapore, a global cargo hub, gears up for a multi-fuel future.

• Singapore's food security goals will also get a leg-up with the introduction of leases for coastal fish farms, which will provide more certainty for farmers and encourage technological investments to improve yields and increase overall production.

• The number of places where smoking is banned will be extended to include all public parks, gardens and 10 recreational beaches, among others. When the ban kicks in on July 1, smokers will largely be able to light up only in designated smoking areas and open public spaces such as vacant land, uncovered walkways and uncovered areas on the top deck of multi-storey carparks.

Building stronger safety nets to renew social compact​

Extending a helping hand to the vulnerable groups in society played a big role in the debates across ministries.

The various measures announced over the past two weeks illustrate Budget 2022's stated intent to build a fair and inclusive society.

• Low-income families who seek support from different agencies will not have to go through the hassle of making multiple applications as the Ministry of Social and Family Development will be allowing those on ComCare to automatically qualify for other help schemes. This move tackles a common bugbear for these families - that they have to spend extra time providing the same documents and evidence to qualify for different support schemes.

• Other vulnerable groups getting more support include those with disabilities - a new school for children with multiple disabilities will be set up in the west of Singapore - as well as inmates, as a new masterplan will see them pick up digital skills prior to their release in a bid to help them better reintegrate into society.

• Aspiring para-athletes will have a clear pathway from recreational participation to high-performance sport with a new Para Sport Academy. The academy will offer 10 sports, such as cerebral palsy football and wheelchair tennis, to about 500 participants.

• With the rapid take-up of digital technology, a worry among parents is that their children will be exposed to online harms - territory that is continually evolving. The Ministry of Communications and Information announced that online platforms will be legally required to take prompt action when users report harmful content, and implement systems such as content filters to protect children.

• Protections for vulnerable workers are also being reinforced. The new Progressive Wage Mark accreditation scheme to be rolled out by the Ministry of Manpower means that employers will have to commit to paying all local workers - Singaporeans and permanent residents - at least the local qualifying salary of $1,400, and follow any relevant progressive wage models. This aims to give a boost to lower-wage workers and narrow the income gap.

• Another group of vulnerable workers are migrant workers, whose dangerous conditions while being ferried in lorries have raised concerns, including from MPs and activists. All lorries ferrying migrant workers must now be equipped with speed limiters and must have a designated person on board who can stop the driver if he is too tired or driving in an unsafe way. There will also be new rules to ensure drivers ferrying these workers have enough rest.

• More support for migrant workers in terms of medical coverage is also on the cards. Employers of maids and other migrant workers on work permits and S Passes will need to buy higher medical insurance coverage for these workers by the end of the year. They must buy plans with a minimum annual claim limit of $60,000 for hospitalisation and surgical procedures, up from $15,000 now.

Building for Singapore and Singaporeans of the future​

At each Budget, the Government lays out its plans not just for the upcoming year but also for the future - sometimes decades away.

Measures were introduced this year to address the issue of the fast-ageing population and its potential strain on the healthcare system, as well as the ever-pressing climate crisis.

• As part of preparations for a green transition, every Housing Board town will be "EV-Ready" by 2025 - a commitment made by Transport Minister S. Iswaran to install at least three electric vehicle charging points at each of nearly 2,000 HDB carparks over the next three to four years. The Land Transport Authority also aims to have 60,000 charging points across the island by 2030.

• Consumers will, from mid-2023, have to pay at least five cents for every disposable bag, regardless of material, they take at most supermarket outlets here, in a bid to encourage the public to be more judicious with their use of disposables. Excessive use of disposable bags has a negative impact on the environment and environmental groups here have been calling for a charge on disposable bags for years.

• Singapore is broadening its focus for local food production beyond leafy vegetables, eggs and food fish to other food types, such as tomatoes, mushrooms and shrimp. This is part of efforts to transform the agri-food industry here with climate-resilient and sustainable technologies to provide 30 per cent of the country's food needs locally by 2030.

• Major changes in how healthcare is delivered are afoot to better prepare for an ageing society. To shift the pressure from acute hospitals to more community settings such as general practitioner clinics or polyclinics, each resident here will from next year be invited to enrol with one general practitioner or polyclinic doctor, who will work with the resident to prevent or manage chronic conditions. Doing so would free up hospitals to focus on emergencies and complex treatments as demand rises from a fast-ageing population.

• Ten new polyclinics are slated to open between this year and 2030, while existing ones in towns such as Pasir Ris and Clementi will be redeveloped. There are currently 23 polyclinics here. One of the newly announced polyclinics, in Taman Jurong, will have elderly-friendly and accessibility features for the convenience of patients and incorporate pandemic-ready infrastructure.

• Lifelong learning will also be reinforced as industries and careers are set to experience greater volatility in the coming years. A new SkillsFuture Career Transition Programme for mid-career workers will be launched next month to help Singaporeans looking to switch careers. They can take industry-oriented, modular training courses lasting from three to 12 months.

• From June 1, the Additional SkillsFuture Credit (Mid-Career Support) will be expanded to cover around 7,000 courses, up from about 350 courses now. This move comes after feedback from the ground that individuals not looking to switch careers would also like to use their free SkillsFuture credit for upskilling.

---

10 upcoming changes to look out for​

April 2022: SkillsFuture Career Transition Programme for mid-career workers launches

July 2022: Smoking ban extended to more parks, gardens and beaches

2nd half of 2022: Progressive Wage Mark accreditation scheme takes effect

End-2022: Higher medical insurance coverage required for helpers, migrant workers

By end-2022: 2nd batch of assisted living HDB flats in Queenstown

By end-2022: Digital and Intelligence Service set up as fourth branch of Singapore Armed Forces

Mid-2023: Disposable bag charge kicks in at larger supermarkets

By 2023: No more mid-year exams for primary and secondary students

September 2023: Points system for Employment Pass applications implemented

From 2023: Each resident is invited to pair up with a general practitioner or polyclinic doctor of his choice

 

[jw5]

Lawrence went to the garden.

Lawrence Wong​

30 mins · Instagram ·
Now that budget is over, I managed to take some time to see the beautiful cherry blossoms at @gardensbythebay! Do check it out. Great to see many volunteers accompanying our migrant workers to enjoy the gardens over the weekend too!

 

[jw5]

Lawrence enjoys cherry blossoms.

 

[jw5]

Many people enjoying cherry blossoms.

 

[jw5]

from straitstimes.com:

Budget 2022 reflects Singapore's ethos of a shared compact in building a better future: Lawrence Wong​

SINGAPORE - Budget 2022 is not just about dollars and cents, but also encapsulates the Singapore spirit, both in planning for the future and not leaving anyone behind.

Rounding up the three-day debate on the Budget statement, Finance Minister Lawrence Wong told Parliament on Wednesday (March 2) that the Government's financial plans reflect as well the trust it has among people, as he pledged to do what is in the best interest of all Singaporeans.

Mr Wong, who gave his first Budget statement as Finance Minister on Feb 18, said the Government discusses and debates the "design of policy parameters or schemes in monetary terms" in every Budget .

"But the Budget is much more than that. It reflects something deeper: our ethos and our values. It's an expression of our shared compact to tackle our challenges together, to never stop thinking of tomorrow, and to never cease building a better Singapore," said Mr Wong.

The Budget is also about the conviction of Singaporeans to build a better society for all. The minister revealed that at engagements on the weekend after the Budget announcement, he came across an individual who told him he was happy to pay more taxes, as "it is the right thing to do".

And at a dialogue he attended, one of the participants volunteered that she did not need the money from the Assurance Package, which is meant to help cushion the increase in the goods and services tax (GST), and asked if she could donate her portion.



Mr Wong said he was cheered by this, and that an online portal would be set up in "the coming months" to allow Singaporeans to do so.


The Budget and its many announcements all boil down to trust - that between the Government and its people, that people have in one another, and across generations, he said.

Such trust is fragile and precious, taking effort and time to build up, but quickly destroyed, he stressed.

Mr Wong said that in his Budget statement, he set out "plainly" the challenges and opportunities that lie ahead for Singapore.

He also explained the need to move on difficult measures like the GST increase. While this may not be a popular thing for him to do, especially in his first Budget as Finance Minister, Mr Wong said he had a responsibility to do what was right and in the best interests of all Singaporeans, instead of what was "politically expedient now".

"I am convinced that the measures in the Budget are necessary and will put us in a stronger position - to strengthen the self-reinforcing system of trust we have now and to ensure that every citizen contributes their fair share to building our common enterprise, which is Singapore," he said.

Mr Wong called on MPs to always work on strengthening the trust in Singapore's institutions, and in each other, no matter their views on the Budget, or the differences they may have on policy issues.

"That means debating the issues based on facts and not biased soundbites or worse, half-truths and lies," he said.

"It means being honest and upfront with Singaporeans about what we need to do together; not sugarcoating realities or pretending that there are quick and painless remedies available."

 

[jw5]

Lawrence wants to invest in all our children.

Lawrence Wong​

4 hrs ·
Today marks the start of the one week school break! I hope students and parents can spend some quality time together.
Last week, my Ministry of Education colleagues announced some new initiatives - one of which is the removal of mid-year examinations for all primary and secondary levels. We want students to be able to have the time and space to develop a broader range of important life skills, rather than focus narrowly on just academic excellence.
We will continue to invest in all our children - to give them a good start in life, and ensure they can develop their fullest potential. Let us help our children seize the many opportunities ahead of them, and tackle any future challenge with confidence!
(

: Pic with students from Yuying Secondary school in 2021)

 

[jw5]

from straitstimes.com:

Lawrence Wong to join ST-BT Budget Roundtable 2022 on 'new way forward'​

SINGAPORE (THE BUSINESS TIMES) - Finance Minister Lawrence Wong will speak on Singapore's aim to forge a more dynamic and greener economy anchored by a fairer tax system, at a roundtable organised by The Straits Times and The Business Times on Monday (March 14).

Mr Wong will be discussing Budget announcements as part of a panel of experts also featuring UOB head of research Suan Teck Kin, National Trades Union Congress secretary-general Ng Chee Meng, and economics and finance professor Sumit Agarwal from the National University of Singapore.

Moderated by The Straits Times associate editor Vikram Khanna, ST-BT Budget Roundtable 2022 comes on the heels of the fortnight-long Budget and Committee of Supply debates in Parliament.

"The roundtable will focus on the extent to which this 'new way forward' Budget is a break from the past and how effectively it can deliver on the goals of rebuilding public finances, accelerating decarbonisation, reducing wealth inequalities and getting Singapore's workforce future-ready," Mr Khanna said.

The topics it will cover include the overall tax system, carbon taxes, labour policies as well as the impact of Russia's invasion of Ukraine on the economy, he added.

During Budget 2022 on Feb 18, Mr Wong announced a series of tax reforms to support longer-term spending while ensuring the system remains fair and progressive.



This includes wealth taxes, levied on properties with a higher annual value as well as luxury cars, and higher personal income taxes for top earners.


Carbon tax will also see a five-fold increase to $25 per tonne of emissions from 2024 - a steep hike that caught market watchers off guard and signals the Government's resolve to push the industry towards greener solutions.

Meanwhile, the goods and services tax hike will be delayed until next year and will be implemented in two steps, amid - among other reasons - the likely uneven economic recovery from the Covid-19 pandemic and rising inflation.

Since these announcements were made, however, energy prices have soared past US$100 per barrel as the Ukraine crisis deepened, threatening to further accelerate inflation, which in January hit a near-decade high.

Full coverage of the roundtable will be in Thursday's edition of The Straits Times.

 

[jw5]

Lawrence had good discussions with business leaders.

Lawrence Wong​

47 mins ·
Had good discussions with over 400 business leaders and Singapore Business Federation members over the past week on #SGBudget2022.
The post-pandemic future is volatile and unpredictable. There are challenges on the horizon. But there are also many opportunities. We must be prepared for them.
In the Budget, we are providing more support for our businesses to thrive now and in the future. Importantly, we are investing heavily to strengthen capabilities for our businesses and workers - to digitalise, to internationalise, and to go strong in new growth areas.
On this journey, our businesses will not walk alone - we will walk with them. We value our partnerships between government, trade associations and chambers, and businesses, and we will continue to work together for a brighter future for all.
Gan Kim Yong