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Singapore appointed 2 idiots to lead the task force.
- Thread starter LaoTze
- Start date
Lawrence hosts The Regent of Pahang. 
Happy to host HRH The Regent of Pahang Tengku Hassanal to breakfast during his visit to Singapore.
We had a good discussion on a wide range of environment, social and governance (ESG) issues. Also learnt more about HRH’s plans for rainforest and tiger conservation in the state. It has been some time since I last visited Pahang, be it Kuantan, Cameron Highlands (where we used to go for family vacations), or even trekking in Taman Negara. Hope to have the chance to visit again when we further open up the borders for travel.
I look forward to further collaboration, as part of the close and long-standing ties between our two countries.
Lawrence Wong
7 hrs ·Happy to host HRH The Regent of Pahang Tengku Hassanal to breakfast during his visit to Singapore.
We had a good discussion on a wide range of environment, social and governance (ESG) issues. Also learnt more about HRH’s plans for rainforest and tiger conservation in the state. It has been some time since I last visited Pahang, be it Kuantan, Cameron Highlands (where we used to go for family vacations), or even trekking in Taman Negara. Hope to have the chance to visit again when we further open up the borders for travel.
I look forward to further collaboration, as part of the close and long-standing ties between our two countries.
Lawrence will take action against firms who increase prices unfairly.
I know many are concerned that businesses may use the GST increase as a cover to raise prices unfairly. In my #SGBudget2022 speech, I announced that we will stand up the Committee Against Profiteering to address this. Glad that MOS Low Yen Ling and her committee have convened today and started work.
To raise feedback or report any businesses using the GST as a pretext for unfair price increase, you may do so via www.cap.gov.sg from 1 Apr. Offline channels are also available.
The Government will not hesitate to take firm action against any errant firms that seek to profit from the GST. Let’s work together to enable effective market competition and safeguard consumers’ interests.
(
: Taken at a South-West CDC Dialogue)
Lawrence Wong
48 mins ·I know many are concerned that businesses may use the GST increase as a cover to raise prices unfairly. In my #SGBudget2022 speech, I announced that we will stand up the Committee Against Profiteering to address this. Glad that MOS Low Yen Ling and her committee have convened today and started work.
To raise feedback or report any businesses using the GST as a pretext for unfair price increase, you may do so via www.cap.gov.sg from 1 Apr. Offline channels are also available.
The Government will not hesitate to take firm action against any errant firms that seek to profit from the GST. Let’s work together to enable effective market competition and safeguard consumers’ interests.
(
Lawrence took part in a roundtable dialogue.
In 10 years' time, what is the Singapore you would like to see?
This was one of the questions ST’s Vikram Khanna posed to me at the The Straits Times and The Business Times Roundtable dialogue 2022.
On the economic front, I hope for a stronger, more resilient, and greener economy — one that will be a special node in the global network, with the best teams here doing exciting, cutting-edge work, and creating value for ourselves and the world.
On the societal front, I hope we will be a fairer, more equal, and more inclusive society — where everyone can achieve their full potential, and we can all give of our best, with the assurance that we will never be left to fend for ourselves when times are down. Because we will always have each other’s back and we will move forward together as one people. You can watch the full dialogue here: https://go.gov.sg/stbtroundtable2022
Lawrence Wong
5 hrs ·In 10 years' time, what is the Singapore you would like to see?
This was one of the questions ST’s Vikram Khanna posed to me at the The Straits Times and The Business Times Roundtable dialogue 2022.
On the economic front, I hope for a stronger, more resilient, and greener economy — one that will be a special node in the global network, with the best teams here doing exciting, cutting-edge work, and creating value for ourselves and the world.
On the societal front, I hope we will be a fairer, more equal, and more inclusive society — where everyone can achieve their full potential, and we can all give of our best, with the assurance that we will never be left to fend for ourselves when times are down. Because we will always have each other’s back and we will move forward together as one people. You can watch the full dialogue here: https://go.gov.sg/stbtroundtable2022
from straitstimes.com:
SINGAPORE - Despite Singapore's limited direct links with Russia and Ukraine, the conflict between the two countries could impact the global economy and, in turn, contribute to cost of living pressures, said panellists at a post-Budget 2022 roundtable organised by The Straits Times and The Business Times on Monday (March 14).
With uncertainty over how the three-week-long invasion by Moscow of its neighbour might pan out, questions remain over the degree of inflation to expect, they added, with one expert warning of "nefarious activities" by companies taking advantage of the global situation to engage in price gouging.
Finance Minister Lawrence Wong, one of the panellists, said the Government is monitoring the situation closely and would come up with additional measures if it worsens.
In his opening remarks, Mr Wong spoke of how Singapore would be confronting a post-pandemic future where a business-as-usual approach would no longer work. One reason for that is an increasingly unpredictable, volatile and dangerous world - a point brought into relief since Russia's invasion of Ukraine in late February, he said.
Asked by moderator and ST associate editor Vikram Khanna about the conflict's economic impact on Singapore, Mr Wong said: "These are still early days… I don't think anyone can predict with any certainty the trajectory of how the conflict will evolve in the coming weeks or even months."
He added: "As (we) have said before, if the situation were to worsen, we will be prepared to do more... and we have the means to do so."
Mr Wong noted that the concern was over the impact on global energy markets, food supply and supply chains - with the two warring countries being major exporters of wheat and precious metals. This, in turn, could affect Singapore's economy and inflation.
Trade and Industry Minister Gan Kim Yong has already warned that the crisis has clouded Singapore's economic outlook, and with Europe heavily reliant on Russian gas transiting through Ukraine, escalating energy costs are fuelling a knock-on increase in prices of other products.
Retaliatory sanctions by major Western economies and their allies worldwide are also pushing up already elevated prices of fuels, grains and industrial metals.
Food importers, manufacturers and businesses here are starting to feel the effects and some have started raising prices. Last week on Monday, the most popular grade of petrol - 95-octane - breached the $3 mark after multiple rounds of increases since the war began.
Panellist and UOB research head Suan Teck Kin said the question was how high the inflation would go and at what point it would start eating into consumers' and companies' budgets and reducing economic activities.
Economics and finance professor Sumit Agarwal from the National University of Singapore flagged concerns that merchants exporting goods to Singapore could be taking advantage of the war by increasing prices.
"The fact of the matter is that the common man is bearing the brunt of cost of living pressures," said National Trades Union Congress (NTUC) secretary-general Ng Chee Meng. "The taxi drivers, the private-hire drivers, the bus operators are suffering because of the fuel price increases. Our citizens, our workers are also telling me very clearly that chicken prices have gone up, egg prices have gone up."
He said FairPrice supermarkets were doing their bit to help by providing discounts for the elderly and by setting a benchmark price across its goods.
Mr Wong described this as the flip side of Prof Agarwal's call to watch for price gouging. "The majority of companies (are) very highly responsible, and in fact going out of their way to offer good value for money products and services - like the NTUC enterprises, FairPrice, and many others who will offer more house brands (and) help consumers stretch their dollar."
He stressed that the Government had put in significant resources and funding in this year's Budget to help households cope with rising prices, through the likes of a $560 million Household Support Package; a $6.6 billion package to soften the blow of an impending goods and services tax (GST) hike; and an enhanced GST Voucher scheme.
"When you pool it together for the individual in terms of cash, in terms of utilities rebates, in terms of CDC (Community Development Council) vouchers, in terms of the S&CC (service and conservancy charge) rebates, it's a lot of money, it's a lot of help," said Mr Wong. "And we will do more to help people understand that this package of measures is going to come their way very soon."
Impact of Ukraine war will add to cost of living pressures in Singapore: Panel
SINGAPORE - Despite Singapore's limited direct links with Russia and Ukraine, the conflict between the two countries could impact the global economy and, in turn, contribute to cost of living pressures, said panellists at a post-Budget 2022 roundtable organised by The Straits Times and The Business Times on Monday (March 14).
With uncertainty over how the three-week-long invasion by Moscow of its neighbour might pan out, questions remain over the degree of inflation to expect, they added, with one expert warning of "nefarious activities" by companies taking advantage of the global situation to engage in price gouging.
Finance Minister Lawrence Wong, one of the panellists, said the Government is monitoring the situation closely and would come up with additional measures if it worsens.
In his opening remarks, Mr Wong spoke of how Singapore would be confronting a post-pandemic future where a business-as-usual approach would no longer work. One reason for that is an increasingly unpredictable, volatile and dangerous world - a point brought into relief since Russia's invasion of Ukraine in late February, he said.
Asked by moderator and ST associate editor Vikram Khanna about the conflict's economic impact on Singapore, Mr Wong said: "These are still early days… I don't think anyone can predict with any certainty the trajectory of how the conflict will evolve in the coming weeks or even months."
He added: "As (we) have said before, if the situation were to worsen, we will be prepared to do more... and we have the means to do so."
Mr Wong noted that the concern was over the impact on global energy markets, food supply and supply chains - with the two warring countries being major exporters of wheat and precious metals. This, in turn, could affect Singapore's economy and inflation.
Trade and Industry Minister Gan Kim Yong has already warned that the crisis has clouded Singapore's economic outlook, and with Europe heavily reliant on Russian gas transiting through Ukraine, escalating energy costs are fuelling a knock-on increase in prices of other products.
Retaliatory sanctions by major Western economies and their allies worldwide are also pushing up already elevated prices of fuels, grains and industrial metals.
Food importers, manufacturers and businesses here are starting to feel the effects and some have started raising prices. Last week on Monday, the most popular grade of petrol - 95-octane - breached the $3 mark after multiple rounds of increases since the war began.
Panellist and UOB research head Suan Teck Kin said the question was how high the inflation would go and at what point it would start eating into consumers' and companies' budgets and reducing economic activities.
Economics and finance professor Sumit Agarwal from the National University of Singapore flagged concerns that merchants exporting goods to Singapore could be taking advantage of the war by increasing prices.
"The fact of the matter is that the common man is bearing the brunt of cost of living pressures," said National Trades Union Congress (NTUC) secretary-general Ng Chee Meng. "The taxi drivers, the private-hire drivers, the bus operators are suffering because of the fuel price increases. Our citizens, our workers are also telling me very clearly that chicken prices have gone up, egg prices have gone up."
He said FairPrice supermarkets were doing their bit to help by providing discounts for the elderly and by setting a benchmark price across its goods.
Mr Wong described this as the flip side of Prof Agarwal's call to watch for price gouging. "The majority of companies (are) very highly responsible, and in fact going out of their way to offer good value for money products and services - like the NTUC enterprises, FairPrice, and many others who will offer more house brands (and) help consumers stretch their dollar."
He stressed that the Government had put in significant resources and funding in this year's Budget to help households cope with rising prices, through the likes of a $560 million Household Support Package; a $6.6 billion package to soften the blow of an impending goods and services tax (GST) hike; and an enhanced GST Voucher scheme.
"When you pool it together for the individual in terms of cash, in terms of utilities rebates, in terms of CDC (Community Development Council) vouchers, in terms of the S&CC (service and conservancy charge) rebates, it's a lot of money, it's a lot of help," said Mr Wong. "And we will do more to help people understand that this package of measures is going to come their way very soon."
from straitstimes.com:
SINGAPORE - Singapore is not building up its reserves any faster than required, but at a rate that tries to keep pace with the mounting complexity of its future needs and challenges, said Finance Minister Lawrence Wong.
The city-state's approach to accumulating reserves is not holding back the present-day economy either; and in the event of a crisis, the option of dipping into the "rainy day fund" remains, he added.
Speaking at a Budget roundtable organised by The Straits Times and The Business Times on Monday (March 14), Mr Wong pointed to the uncertain world that future generations would face, when asked if Singapore was accumulating reserves faster than necessary.
"The reserves may be growing, but the size of our economy, the complexity of our needs and the challenges we face in the future are growing faster, much faster," said Mr Wong.
He warned, as he did in his Budget round-up speech on March 2, against the temptation to dip, even if a little bit, into the "big pot of money" that was the reserves.
"You know the saying, how does a person go bankrupt? Two ways - gradually, then suddenly," said Mr Wong. "Eventually, it will all add up. And that's why virtually all cultures around the world have variants of the same saying, which is that wealth does not last three generations.
"And we are determined in Singapore not to let that happen to us but to keep on building something better for our children," he added. "The reserves rules ensure that we do that."
If Singapore starts on the premise of using more today, it is essentially telling the next generation to pay more taxes, said Mr Wong.
During the discussion, which came on the heels of two weeks of parliamentary debates on the Budget statement and ministries' spending plans, moderator and ST associate editor Vikram Khanna asked Mr Wong how Singapore decides on the appropriate balance between spending today and saving for tomorrow.
Mr Wong replied: "Are we unnecessarily holding back the economy today because we are putting more monies into the reserves? The answer is no… Where is our output gap today? No, we are at full potential. So from that macroeconomic point of view, no, we are not denying us opportunities today."
The reserves can also be used as a rainy day fund in times of crisis and emergencies, by going through the due process, he pointed out.
"We seek the President's approval, and we can use more than a 10 per cent or 20 per cent increase in the NIRC (Net Investment Returns Contribution)," said Mr Wong.
The NIRC framework allows the Government to spend up to 50 per cent of the net investment returns on net assets invested by sovereign wealth fund GIC, the Monetary Authority of Singapore and Temasek, and up to 50 per cent of the net investment income derived from past reserves from the remaining assets.
It would not be easy for the NIRC to keep pace with the economy, said Mr Wong.
"We have already said that projecting the NIRC forward, we think it will keep pace with the economy, and even to do that would be a significant achievement, given the headwinds that we see in the global investment environment," he said.
Noting that being prudent and disciplined was a virtue, he said Singaporeans should appreciate how their forefathers left behind reserves.
"They did not think along the lines of 'let's just optimise our consumption… and spend as much as we can'," said Mr Wong. "If we had 20 per cent less NIRC today because our forefathers spent more, the GST (goods and services tax) would have to go up another two percentage points to 11 per cent."
He had made similar points to rebut opposition MPs at the Budget debate, who had suggested raising NIRC spending to 60 per cent and including a proportion of proceeds from land sales in recurrent revenue as alternatives to raising the GST from 7 per cent to 9 per cent.
Mr Wong also defended the Government's approach of ploughing land sales proceeds into the reserves as more sustainable than directly spending them as part of revenue.
He listed two downsides to relying directly on land sales proceeds as revenue.
First, the highly volatile nature of land prices from year to year would render government finances unpredictable.
Second, there would be an incentive to keep land prices high to increase revenue.
This is happening elsewhere in the world, noted Mr Wong. Mr Khanna and other panellists - UOB research head Suan Teck Kin and economics and finance professor Sumit Agarwal from the National University of Singapore - agreed, pointing to Hong Kong and other Chinese cities.
"Chinese cities also rely on land sales to support their spending," said Mr Suan. "And that causes a lot of problems for (the) local government."
Singapore's future needs, challenges growing much faster than reserves: Lawrence Wong
SINGAPORE - Singapore is not building up its reserves any faster than required, but at a rate that tries to keep pace with the mounting complexity of its future needs and challenges, said Finance Minister Lawrence Wong.
The city-state's approach to accumulating reserves is not holding back the present-day economy either; and in the event of a crisis, the option of dipping into the "rainy day fund" remains, he added.
Speaking at a Budget roundtable organised by The Straits Times and The Business Times on Monday (March 14), Mr Wong pointed to the uncertain world that future generations would face, when asked if Singapore was accumulating reserves faster than necessary.
"The reserves may be growing, but the size of our economy, the complexity of our needs and the challenges we face in the future are growing faster, much faster," said Mr Wong.
He warned, as he did in his Budget round-up speech on March 2, against the temptation to dip, even if a little bit, into the "big pot of money" that was the reserves.
"You know the saying, how does a person go bankrupt? Two ways - gradually, then suddenly," said Mr Wong. "Eventually, it will all add up. And that's why virtually all cultures around the world have variants of the same saying, which is that wealth does not last three generations.
"And we are determined in Singapore not to let that happen to us but to keep on building something better for our children," he added. "The reserves rules ensure that we do that."
If Singapore starts on the premise of using more today, it is essentially telling the next generation to pay more taxes, said Mr Wong.
During the discussion, which came on the heels of two weeks of parliamentary debates on the Budget statement and ministries' spending plans, moderator and ST associate editor Vikram Khanna asked Mr Wong how Singapore decides on the appropriate balance between spending today and saving for tomorrow.
Mr Wong replied: "Are we unnecessarily holding back the economy today because we are putting more monies into the reserves? The answer is no… Where is our output gap today? No, we are at full potential. So from that macroeconomic point of view, no, we are not denying us opportunities today."
The reserves can also be used as a rainy day fund in times of crisis and emergencies, by going through the due process, he pointed out.
"We seek the President's approval, and we can use more than a 10 per cent or 20 per cent increase in the NIRC (Net Investment Returns Contribution)," said Mr Wong.
The NIRC framework allows the Government to spend up to 50 per cent of the net investment returns on net assets invested by sovereign wealth fund GIC, the Monetary Authority of Singapore and Temasek, and up to 50 per cent of the net investment income derived from past reserves from the remaining assets.
It would not be easy for the NIRC to keep pace with the economy, said Mr Wong.
"We have already said that projecting the NIRC forward, we think it will keep pace with the economy, and even to do that would be a significant achievement, given the headwinds that we see in the global investment environment," he said.
Noting that being prudent and disciplined was a virtue, he said Singaporeans should appreciate how their forefathers left behind reserves.
"They did not think along the lines of 'let's just optimise our consumption… and spend as much as we can'," said Mr Wong. "If we had 20 per cent less NIRC today because our forefathers spent more, the GST (goods and services tax) would have to go up another two percentage points to 11 per cent."
He had made similar points to rebut opposition MPs at the Budget debate, who had suggested raising NIRC spending to 60 per cent and including a proportion of proceeds from land sales in recurrent revenue as alternatives to raising the GST from 7 per cent to 9 per cent.
Mr Wong also defended the Government's approach of ploughing land sales proceeds into the reserves as more sustainable than directly spending them as part of revenue.
He listed two downsides to relying directly on land sales proceeds as revenue.
First, the highly volatile nature of land prices from year to year would render government finances unpredictable.
Second, there would be an incentive to keep land prices high to increase revenue.
This is happening elsewhere in the world, noted Mr Wong. Mr Khanna and other panellists - UOB research head Suan Teck Kin and economics and finance professor Sumit Agarwal from the National University of Singapore - agreed, pointing to Hong Kong and other Chinese cities.
"Chinese cities also rely on land sales to support their spending," said Mr Suan. "And that causes a lot of problems for (the) local government."
Lawrence wants a greener home. 
前人栽树, 后人乘凉 — this is a Chinese saying about how the trees that our predecessors have planted, helped to provide shade for our later generations.
Our natural resources are limited. But our forefathers have worked hard and built up our savings, to create the Singapore that we know today. And we must continue building on this — to ensure a good future for all our young ones and future generations.
Together, we can work towards a fairer, more inclusive, and greener home. #SGBudget2022
Lawrence Wong
3 hrs ·前人栽树, 后人乘凉 — this is a Chinese saying about how the trees that our predecessors have planted, helped to provide shade for our later generations.
Our natural resources are limited. But our forefathers have worked hard and built up our savings, to create the Singapore that we know today. And we must continue building on this — to ensure a good future for all our young ones and future generations.
Together, we can work towards a fairer, more inclusive, and greener home. #SGBudget2022
Lawrence attended the Muslim Youth Forum Singapore “Gameplan” dialogue.
Sunny Saturday afternoon at *Scape — I attended the Muslim Youth Forum Singapore “Gameplan” dialogue. We shared our thoughts on #SGBudget2022 — including what opportunities we are building for young Singaporeans and what we want to see in our country's future.
We also had good discussions about support for cost of living concerns, inequality, mental health, and more. Our future is not without its challenges, but we can build a brighter Singapore by rallying together and leaving no one behind.
Thanks to MYF and Ustaz Zahid Zin for hosting me. Wish everyone good health while you prepare for the blessed month of Ramadan.
(
: Muslim Youth Forum Singapore)
Lawrence Wong is at SCAPE.
47 mins · Singapore ·Sunny Saturday afternoon at *Scape — I attended the Muslim Youth Forum Singapore “Gameplan” dialogue. We shared our thoughts on #SGBudget2022 — including what opportunities we are building for young Singaporeans and what we want to see in our country's future.
We also had good discussions about support for cost of living concerns, inequality, mental health, and more. Our future is not without its challenges, but we can build a brighter Singapore by rallying together and leaving no one behind.
Thanks to MYF and Ustaz Zahid Zin for hosting me. Wish everyone good health while you prepare for the blessed month of Ramadan.
(
from straitstimes.com:
SINGAPORE - The debate on relying on the goods and services tax (GST) hike versus counting on other mechanisms to generate revenue misses the point, said Finance Minister Lawrence Wong during a post-Budget roundtable organised by The Straits Times and The Business Times on Monday (March 14).
The GST increase needs to be considered together with other options, he added, as spending needs go up and the funding gap increases.
The minister said the GST hike alone does not yield enough revenue for the Government to address that funding gap.
During the discussion, which was moderated by Straits Times associate editor Vikram Khanna, Mr Wong also elaborated on why certain other methods to generate revenue were not chosen - such as increasing personal income tax, corporate tax or introducing estate tax.
In his Budget speech on Feb 18, Mr Wong had announced that the planned goods and services tax hike would be delayed, and the rate would be increased by one percentage point each year in 2023 and 2024.
When asked on Monday if the Finance Ministry had considered alternative measures, Mr Wong said: "It's certainly a question I've had to deal with a lot after the Budget, and I've consistently told everyone, we've considered all of these alternatives."
He noted that current expenditure is about 18 per cent of gross domestic product (GDP), and is expected to increase to 20 per cent of GDP or more by 2030.
While 2 per cent of GDP may sound like a small figure, it is about $10 billion in absolute numbers using current GDP figures, he said, adding that the GST rate increase will yield only about $3.5 billion a year.
If instead of the GST rate increase, the task of generating more revenue was placed on personal or corporate income tax, "it would be unbearable", said Mr Wong.
It would also have a huge impact on Singapore's overall competitiveness. In addition, increasing personal income taxes would mean the middle- or upper middle-income groups would have to pay more as a small group of top earners are unlikely to bear the entire load, he said.
Another common objection to the GST increase - that it will hurt the poor - is also not valid because of the enhanced GST Voucher scheme which will effectively neutralise the impact of the tax increase on low-income groups, said Mr Wong.
When asked by Mr Khanna if the threshold at which GST can be charged by companies could be lowered to broaden the tax base, Mr Wong said it was a judgment call to balance between revenue needs and compliance costs, especially for smaller businesses.
Singapore's threshold is currently at an annual turnover of $1 million, while some other countries have set a lower bar. For example, in Malaysia, it is at RM500,000 (S$163,000).
Mr Wong added: "With all the changes that are happening already - the cost increases, the impact of supply chains, the cost of raw materials - smaller businesses are the ones that are hurting the most. So if we were to impose this on them, they would be the ones to suffer."
Fellow round-table panellist Ng Chee Meng, secretary-general of the National Trades Union Congress, added that apart from the collection of taxes, it is important to remember the distribution of the tax dollars. The monies go to areas such as eldercare and education, which contribute to building an inclusive society, he said.
Mr Wong agreed, saying that Singapore pays attention to both fronts: taxation, in a fair and effective way, and expenditure, in ensuring good value for money outcomes and that those with greater needs get more.
"So when you add the two together, we, in fact, have a highly progressive system of taxes and transfers compared to most other countries," he said.
The panellists, which also included UOB head of research Suan Teck Kin and National University of Singapore economics, finance and real estate professor Sumit Agarwal, also discussed the tax rates of other countries.
For example, in the United Kingdom, the maximum personal income tax rate is 45 per cent, while its standard tax on goods and services is 20 per cent. In many Organisation for Economic Cooperation and Development (OECD) countries, the value-added tax (VAT) rates are in the double digits, such as Japan's 10 per cent.
In response, Mr Wong said: "So we really should be asking ourselves, why would Singapore be so special? And these countries also have very high income tax rates, easily way above 30 per cent for the middle income. We're not talking about the top tier.
"So why would we somehow think that Singapore would be so different?"
On the topic of estate duties, Mr Wong said Singapore's experience was that a disproportionate part of the burden was borne by the middle- and upper middle-income groups, whereas the very top end could tax plan estate duties away.
This poses a similar challenge as a net wealth tax, which has been suggested as an alternative method for revenue generation.
There is no solution in sight yet to address this challenge, said Mr Wong.
He added: "We continue to study, we continue to review and look at the experiences of other jurisdictions. We also do not rule out that perhaps international rules may evolve around this, just as they have on corporate taxes."
Mr Khanna also asked about property taxes, another key measure from the Budget, noting that while the increase in property tax would bring in significant revenue, it may not tame the property market because the super rich would not be deterred.
"So property prices may continue to rise. And if that happens, the wealth inequalities will continue to widen," said Mr Khanna.
In response, Mr Wong said the property tax regime is not meant to cool the property market, as there are other tools for that, including moves such as higher Additional Buyer's Stamp Duty rates that were announced in December 2021.
With regard to dealing with wealth inequality, "ideally, we would like to tax wealth directly in the form of a net wealth tax", he said.
"But that is, in practice, very hard to implement, which is why many OECD countries have also dropped the idea of a net wealth tax."
The ministry will continue to review and study this, Mr Wong added.
Debate on GST hike vs other ways to generate revenue misses the point: Lawrence Wong
SINGAPORE - The debate on relying on the goods and services tax (GST) hike versus counting on other mechanisms to generate revenue misses the point, said Finance Minister Lawrence Wong during a post-Budget roundtable organised by The Straits Times and The Business Times on Monday (March 14).
The GST increase needs to be considered together with other options, he added, as spending needs go up and the funding gap increases.
The minister said the GST hike alone does not yield enough revenue for the Government to address that funding gap.
During the discussion, which was moderated by Straits Times associate editor Vikram Khanna, Mr Wong also elaborated on why certain other methods to generate revenue were not chosen - such as increasing personal income tax, corporate tax or introducing estate tax.
In his Budget speech on Feb 18, Mr Wong had announced that the planned goods and services tax hike would be delayed, and the rate would be increased by one percentage point each year in 2023 and 2024.
When asked on Monday if the Finance Ministry had considered alternative measures, Mr Wong said: "It's certainly a question I've had to deal with a lot after the Budget, and I've consistently told everyone, we've considered all of these alternatives."
He noted that current expenditure is about 18 per cent of gross domestic product (GDP), and is expected to increase to 20 per cent of GDP or more by 2030.
While 2 per cent of GDP may sound like a small figure, it is about $10 billion in absolute numbers using current GDP figures, he said, adding that the GST rate increase will yield only about $3.5 billion a year.
If instead of the GST rate increase, the task of generating more revenue was placed on personal or corporate income tax, "it would be unbearable", said Mr Wong.
It would also have a huge impact on Singapore's overall competitiveness. In addition, increasing personal income taxes would mean the middle- or upper middle-income groups would have to pay more as a small group of top earners are unlikely to bear the entire load, he said.
Another common objection to the GST increase - that it will hurt the poor - is also not valid because of the enhanced GST Voucher scheme which will effectively neutralise the impact of the tax increase on low-income groups, said Mr Wong.
When asked by Mr Khanna if the threshold at which GST can be charged by companies could be lowered to broaden the tax base, Mr Wong said it was a judgment call to balance between revenue needs and compliance costs, especially for smaller businesses.
Singapore's threshold is currently at an annual turnover of $1 million, while some other countries have set a lower bar. For example, in Malaysia, it is at RM500,000 (S$163,000).
Mr Wong added: "With all the changes that are happening already - the cost increases, the impact of supply chains, the cost of raw materials - smaller businesses are the ones that are hurting the most. So if we were to impose this on them, they would be the ones to suffer."
Fellow round-table panellist Ng Chee Meng, secretary-general of the National Trades Union Congress, added that apart from the collection of taxes, it is important to remember the distribution of the tax dollars. The monies go to areas such as eldercare and education, which contribute to building an inclusive society, he said.
Mr Wong agreed, saying that Singapore pays attention to both fronts: taxation, in a fair and effective way, and expenditure, in ensuring good value for money outcomes and that those with greater needs get more.
"So when you add the two together, we, in fact, have a highly progressive system of taxes and transfers compared to most other countries," he said.
The panellists, which also included UOB head of research Suan Teck Kin and National University of Singapore economics, finance and real estate professor Sumit Agarwal, also discussed the tax rates of other countries.
For example, in the United Kingdom, the maximum personal income tax rate is 45 per cent, while its standard tax on goods and services is 20 per cent. In many Organisation for Economic Cooperation and Development (OECD) countries, the value-added tax (VAT) rates are in the double digits, such as Japan's 10 per cent.
In response, Mr Wong said: "So we really should be asking ourselves, why would Singapore be so special? And these countries also have very high income tax rates, easily way above 30 per cent for the middle income. We're not talking about the top tier.
"So why would we somehow think that Singapore would be so different?"
On the topic of estate duties, Mr Wong said Singapore's experience was that a disproportionate part of the burden was borne by the middle- and upper middle-income groups, whereas the very top end could tax plan estate duties away.
This poses a similar challenge as a net wealth tax, which has been suggested as an alternative method for revenue generation.
There is no solution in sight yet to address this challenge, said Mr Wong.
He added: "We continue to study, we continue to review and look at the experiences of other jurisdictions. We also do not rule out that perhaps international rules may evolve around this, just as they have on corporate taxes."
Mr Khanna also asked about property taxes, another key measure from the Budget, noting that while the increase in property tax would bring in significant revenue, it may not tame the property market because the super rich would not be deterred.
"So property prices may continue to rise. And if that happens, the wealth inequalities will continue to widen," said Mr Khanna.
In response, Mr Wong said the property tax regime is not meant to cool the property market, as there are other tools for that, including moves such as higher Additional Buyer's Stamp Duty rates that were announced in December 2021.
With regard to dealing with wealth inequality, "ideally, we would like to tax wealth directly in the form of a net wealth tax", he said.
"But that is, in practice, very hard to implement, which is why many OECD countries have also dropped the idea of a net wealth tax."
The ministry will continue to review and study this, Mr Wong added.
Lawrence wants to show support for MSF Singapore.
The love of a family is life’s greatest blessing. This year, 2022 is dedicated as the Year of Celebrating Singapore Families. #CelebratingSGFamilies
Let us show our support for MSF Singapore by adding this frame to our profile photo, you can learn more here: go.gov.sg/celebratingsgfamilies
Lawrence Wong updated his profile picture.
16 hrs ·The love of a family is life’s greatest blessing. This year, 2022 is dedicated as the Year of Celebrating Singapore Families. #CelebratingSGFamilies
Let us show our support for MSF Singapore by adding this frame to our profile photo, you can learn more here: go.gov.sg/celebratingsgfamilies
Lawrence promotes the WCS.
The Wage Credit Scheme is an initiative where the Government co-funds the wage increments for Singaporean workers earning a monthly income of up to $5000.
Later this month, $840 mn in WCS payouts will be disbursed to benefit more than 780,000 Singaporean employees. This is one concrete way for us to uplift the wages of lower and lower-middle income Singaporeans.
(
: Staff from cybersecurity firm Horangi have enjoyed salary increases and will benefit from the WCS payouts)
Lawrence Wong
7 hrs ·The Wage Credit Scheme is an initiative where the Government co-funds the wage increments for Singaporean workers earning a monthly income of up to $5000.
Later this month, $840 mn in WCS payouts will be disbursed to benefit more than 780,000 Singaporean employees. This is one concrete way for us to uplift the wages of lower and lower-middle income Singaporeans.
(
Lawrence spoke at the Singapore Regional Business Forum.
There are many uncertainties in the near term and significant downside risks to both growth and inflation. We are monitoring these closely. But we also need to look over the horizon and press on with efforts to transform our economy.
At the Singapore Regional Business Forum today, I spoke about how we will do this - by redoubling our efforts to build a more connected, more innovative, and more resilient economy.
In this volatile world, we must expect many more shocks to our economy and society. We cannot avoid these shocks. But we can learn to be more resilient - to be able to take some hits, and bounce back and emerge stronger each time. We can build resilience by keeping sound and stable public finances, investing in our people, and strengthening our social compact. I'm confident that working together, we can go the distance towards a fairer and more inclusive home!
(
: Singapore Business Federation)
Lawrence Wong
48 mins ·There are many uncertainties in the near term and significant downside risks to both growth and inflation. We are monitoring these closely. But we also need to look over the horizon and press on with efforts to transform our economy.
At the Singapore Regional Business Forum today, I spoke about how we will do this - by redoubling our efforts to build a more connected, more innovative, and more resilient economy.
In this volatile world, we must expect many more shocks to our economy and society. We cannot avoid these shocks. But we can learn to be more resilient - to be able to take some hits, and bounce back and emerge stronger each time. We can build resilience by keeping sound and stable public finances, investing in our people, and strengthening our social compact. I'm confident that working together, we can go the distance towards a fairer and more inclusive home!
(
from straitstimes.com:
SINGAPORE - Making early moves to transform business processes to be less reliant on labour and be more energy-efficient will put Singapore's businesses in a stronger position for the future, said Finance Minister Lawrence Wong on Tuesday (March 22).
This is given that labour and carbon constraints are likely to be a permanent fixture in Singapore's economy in the future, he said.
Mr Wong was speaking at the Singapore Regional Business Forum (SRBF), one of the five conferences held during the Singapore Apex Business Summit at Sands Expo and Convention Centre.
The four-day summit, organised by the Singapore Business Federation (SBF) and events firm MP Singapore, ends on Friday.
The minister addressed questions posed by SBF chief executive Lam Yi Young during a lunchtime plenary, including one on whether policy measures such as foreign-workforce tightening and the carbon tax hike from 2024 could be pushed back so as not to add further to increasing cost pressures faced by companies.
Mr Wong said the Government has been cognisant of the challenges faced by businesses, and that policy changes have been deliberately staggered and announced in advance to give businesses adequate time to adjust.
While he understands the sentiments around pushing back policy changes further, he noted that the constraints around labour and carbon emissions are inevitable.
"It's wishful thinking to sort of hope that (at) some point down the road, we can do away with these constraints," Mr Wong said.
"So long as Singapore is successful as an economy, we will always have a tight labour market."
On the carbon tax front, he pointed out that if the country wants to do something about climate change and global warming, "we have to move more decisively to reduce carbon".
"So if we understand that labour and carbon will be permanent constraints in our economy, wouldn't it be better to move early to adjust, restructure and transform our business processes to rely less on labour and to be less energy-intensive?"
Mr Wong noted that many schemes and initiatives have been put in place in the Budget to help businesses with transformation on these fronts, such as sustainability measures to help firms be more energy-efficient.
He said the take-up rates for such schemes tend to end up lower than what has been budgeted for, and that it would be a "happy problem" if the take-up rate this year is much better and funds for such initiatives are fully utilised.
The minister acknowledged that businesses, especially small and medium-sized enterprises, are concerned about the "more pressing immediate issues", especially manpower and worker shortage, and the Government is mindful of their worries.
One reason firms are facing these shortages is Singapore's border measures, which have yet to be fully opened for travel, Mr Wong noted.
"But this is temporary. And with the Covid-19 situation in Singapore improving day by day... I am quite sure we will soon be able to open up for freer international travel, and when that happens, it will be much easier for firms to bring in workers, be it on work permits, S Passes or Employment Passes, or even workers across our land crossings from Malaysia," he added.
"I hope that will provide some easing on the manpower front."
Mr Wong also stressed how Singapore is putting in effort and emphasis on skills upgrading and training, as the greater churn seen in the economy is going to be a permanent feature.
"More churn means potentially more mismatches of skills," he said, adding that the Government is looking forward to working more closely with trade associations and chambers on training as well as skill-matching efforts to help firms with employee retention.
During the session, Mr Wong also addressed concerns about the uncertainties arising from Russia's invasion of Ukraine and its impact on Singapore.
He noted that aside from whether the situation could lead to a more divided world and other geopolitical implications, it is still too early to say how the crisis will impact Singapore's economy and businesses.
"If the situation were to worsen... and we see a huge impact on our economy or on inflation, we will certainly not hesitate to do more, whether through fiscal or monetary policies to make sure that we keep the economy steady, or stabilise prices and do everything we can to help households, businesses and workers."
The sixth edition of the SRBF on Tuesday included plenary sessions on topics such as sustainable supply chain management and green financing.
On Tuesday evening, the SBF held an event to celebrate its 20th anniversary, which was attended by more than 500 guests, including past and present leaders of the chamber as well as foreign dignitaries.
In her speech, President Halimah Yacob, the guest of honour, highlighted the contributions of the chamber in promoting sustainable and resilient businesses in Singapore.
She also spoke about how it has served as a key pillar of Singapore’s tripartite partnership by working with the unions and the Government to support businesses.
About a hundred business and government leaders will be speaking during the four-day summit, on topics such as digitalisation, transformation and internationalisation.
Transforming to rely less on labour and energy will make Singapore firms stronger: Lawrence Wong
SINGAPORE - Making early moves to transform business processes to be less reliant on labour and be more energy-efficient will put Singapore's businesses in a stronger position for the future, said Finance Minister Lawrence Wong on Tuesday (March 22).
This is given that labour and carbon constraints are likely to be a permanent fixture in Singapore's economy in the future, he said.
Mr Wong was speaking at the Singapore Regional Business Forum (SRBF), one of the five conferences held during the Singapore Apex Business Summit at Sands Expo and Convention Centre.
The four-day summit, organised by the Singapore Business Federation (SBF) and events firm MP Singapore, ends on Friday.
The minister addressed questions posed by SBF chief executive Lam Yi Young during a lunchtime plenary, including one on whether policy measures such as foreign-workforce tightening and the carbon tax hike from 2024 could be pushed back so as not to add further to increasing cost pressures faced by companies.
Mr Wong said the Government has been cognisant of the challenges faced by businesses, and that policy changes have been deliberately staggered and announced in advance to give businesses adequate time to adjust.
While he understands the sentiments around pushing back policy changes further, he noted that the constraints around labour and carbon emissions are inevitable.
"It's wishful thinking to sort of hope that (at) some point down the road, we can do away with these constraints," Mr Wong said.
"So long as Singapore is successful as an economy, we will always have a tight labour market."
On the carbon tax front, he pointed out that if the country wants to do something about climate change and global warming, "we have to move more decisively to reduce carbon".
"So if we understand that labour and carbon will be permanent constraints in our economy, wouldn't it be better to move early to adjust, restructure and transform our business processes to rely less on labour and to be less energy-intensive?"
Mr Wong noted that many schemes and initiatives have been put in place in the Budget to help businesses with transformation on these fronts, such as sustainability measures to help firms be more energy-efficient.
He said the take-up rates for such schemes tend to end up lower than what has been budgeted for, and that it would be a "happy problem" if the take-up rate this year is much better and funds for such initiatives are fully utilised.
The minister acknowledged that businesses, especially small and medium-sized enterprises, are concerned about the "more pressing immediate issues", especially manpower and worker shortage, and the Government is mindful of their worries.
One reason firms are facing these shortages is Singapore's border measures, which have yet to be fully opened for travel, Mr Wong noted.
"But this is temporary. And with the Covid-19 situation in Singapore improving day by day... I am quite sure we will soon be able to open up for freer international travel, and when that happens, it will be much easier for firms to bring in workers, be it on work permits, S Passes or Employment Passes, or even workers across our land crossings from Malaysia," he added.
"I hope that will provide some easing on the manpower front."
Mr Wong also stressed how Singapore is putting in effort and emphasis on skills upgrading and training, as the greater churn seen in the economy is going to be a permanent feature.
"More churn means potentially more mismatches of skills," he said, adding that the Government is looking forward to working more closely with trade associations and chambers on training as well as skill-matching efforts to help firms with employee retention.
During the session, Mr Wong also addressed concerns about the uncertainties arising from Russia's invasion of Ukraine and its impact on Singapore.
He noted that aside from whether the situation could lead to a more divided world and other geopolitical implications, it is still too early to say how the crisis will impact Singapore's economy and businesses.
"If the situation were to worsen... and we see a huge impact on our economy or on inflation, we will certainly not hesitate to do more, whether through fiscal or monetary policies to make sure that we keep the economy steady, or stabilise prices and do everything we can to help households, businesses and workers."
The sixth edition of the SRBF on Tuesday included plenary sessions on topics such as sustainable supply chain management and green financing.
On Tuesday evening, the SBF held an event to celebrate its 20th anniversary, which was attended by more than 500 guests, including past and present leaders of the chamber as well as foreign dignitaries.
In her speech, President Halimah Yacob, the guest of honour, highlighted the contributions of the chamber in promoting sustainable and resilient businesses in Singapore.
She also spoke about how it has served as a key pillar of Singapore’s tripartite partnership by working with the unions and the Government to support businesses.
About a hundred business and government leaders will be speaking during the four-day summit, on topics such as digitalisation, transformation and internationalisation.
Lawrence hopes you listened to his boss.
Hope you tuned in to PM Lee’s broadcast and the live MTF press conference today.
From 29 Mar, we are easing further along the five key parameters for safe management measures. And we are making additional adjustments in specific settings, like the sale and consumption of alcohol after 10.30pm at F&B outlets, and live performances.
As we gather in bigger group sizes or mask-off outdoors, let's continue to exercise personal responsibility — on our journey to being a Covid resilient nation!
Lawrence Wong
10 hrs ·Hope you tuned in to PM Lee’s broadcast and the live MTF press conference today.
From 29 Mar, we are easing further along the five key parameters for safe management measures. And we are making additional adjustments in specific settings, like the sale and consumption of alcohol after 10.30pm at F&B outlets, and live performances.
As we gather in bigger group sizes or mask-off outdoors, let's continue to exercise personal responsibility — on our journey to being a Covid resilient nation!
Lawrence thinks that this year’s Raya is indeed a special one.
This year’s Raya is indeed a special one – Ramadan bazaars will finally return to Geylang Serai and Kampong Glam!
Over the past two years, our Muslim community has taken the Covid-19 measures in its stride. Though the pandemic has affected how you have marked and celebrated Hari Raya, I am heartened you have kept up with traditions - and our gotong royong spirit is stronger than ever.
A big thanks to Faishal Ibrahim, the organising committee and Wisma Geylang Serai for organising this year’s light-up. I'm sure many are looking forward to the live shows, good food and more.
Saya ingin mengucapkan Selamat Berpuasa kepada semua rakan-rakan Melayu-Islam. Salam Ramadan! #RayaIstimewa #wismageylangserai
Lawrence Wong
1 hr ·This year’s Raya is indeed a special one – Ramadan bazaars will finally return to Geylang Serai and Kampong Glam!
Over the past two years, our Muslim community has taken the Covid-19 measures in its stride. Though the pandemic has affected how you have marked and celebrated Hari Raya, I am heartened you have kept up with traditions - and our gotong royong spirit is stronger than ever.
A big thanks to Faishal Ibrahim, the organising committee and Wisma Geylang Serai for organising this year’s light-up. I'm sure many are looking forward to the live shows, good food and more.
Saya ingin mengucapkan Selamat Berpuasa kepada semua rakan-rakan Melayu-Islam. Salam Ramadan! #RayaIstimewa #wismageylangserai
Lawrence is concerned about climate change. 
The effects of climate change are real and impending. And that is why as a country, we are taking steps to reduce our carbon emissions, as part of the nation-wide movement to tackle this global issue.
We can all contribute even in small ways too, like turning off the tap after use, or electrical appliances - like what my team has done in this video!
Let's also go beyond #earthhour - and practise sustainability in our everyday lives.
Lawrence Wong
2 hrs ·The effects of climate change are real and impending. And that is why as a country, we are taking steps to reduce our carbon emissions, as part of the nation-wide movement to tackle this global issue.
We can all contribute even in small ways too, like turning off the tap after use, or electrical appliances - like what my team has done in this video!
Let's also go beyond #earthhour - and practise sustainability in our everyday lives.
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