In your view, what are the most notable aspects and proposals of Budget 2010? Do the proposals cover all the major bases?

2010’s budget is premised on building long term structural adjustments to ensure the sustainability of Singapore’s economy and its fundamental resilience. The dynamic flexibility in the budget allocation – in promotion of certain industries with funds and bank lending coupled with pro-growth policies in R&D, training and innovation will give the economy the ability to overcome future challenges – which should not be taken for granted.



Singapore’s economy still has to contend with short-run cyclical performance of the global economy and may be further subjected to shocks in the Europe, Middle East and the US. The budget is careful not to go into a long-run entitlement spending burden in healthcare or social welfare. A one-time personal tax relief and a 1-percentage drop in corporate tax are significant to show that policies are in place to preserve Singapore underlying low-tax environment which is pro-business. This budget provides a positive environment for small businesses and entrepreneurial activities with its monetary stimulation. With an efficient deployment of funds and loans and with prudent risk-taking implementation, the budget will promote technology and productivity gains. Solid and sustained economic performance is a necessary foundation for a sound fiscal environment and for advancing Singapore’s standards of living.



Human capital development is a key plank in this budget and to set the virtuous cycle in motion, a huge budget is allocated for training to improve productivity and to enhance key skills – skills that can bring about better jobs and incomes for Singaporeans. With a stretched retirement age for the working population, training must be provided to cater to this ballooning workforce with lesser reliance on foreign workers for jobs that can be substitutable with Singaporeans.



Singapore’s economy has shown a remarkable ability to absorb shocks of all kinds and its resiliency is a trademark of Singaporeans. The budget is premised on economic realism based on flexible and efficient markets for labor and capital to eventually build on infrastructures and people.