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SINGAPORE: Welcome to our live blog covering this year's Budget statement.
Finance Minister Heng Swee Keat is delivering the 2018 Budget statement in Parliament at 3.30pm on Monday (Feb 19).
Follow us on Twitter and Facebook for the highlights of #SGBudget2018 or catch his speech live on Channel NewsAsia, 938Now, channelnewsasia.com and todayonline.com.
You can also go to Channelnewsasia.com's Budget 2018 site for all the latest stories.
Refresh for the latest updates on this live blog.
4.51pm: Community support for seniors
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File photo of elderly woman in Singapore. (Photo: Christy Yip)
Community Networks for Seniors, a scheme to help the elderly stay active and engaged with the community, will be expanded nationwide by 2020.
Social and healthcare services for seniors will be consolidated under the Health Ministry.
The Agency for Integrated Care and the Pioneer Generation Office will be merged to form the Silver Generation Office.
4.47pm: Foreign domestic worker levy to rise
The levy will be raised from S$265 to S$300 for the first worker and to S$450 for the second worker. To take effect from Apr 1, 2019.
Families that need help caring for young children, elderly or family members with disabilities continue to get a concession of S$60.
Read more here.
4.45pm: Extension of S&CC rebate
A view of an HDB block of flats in Singapore. (TODAY file photo)
The increased rebate for conservancy fees will be extended for another year.
Read more here.
4.43pm: Enhanced Proximity Housing Grant
Proximity Housing Grant for families buying a resale flat to live with their parents to increase to S$30,000; this also extends to singles, who will get S$15,000.
The grant for those buying a resale flat near their parents or children continues to be S$20,000. For singles, they will now get S$10,000.
Also, the "within 2km" criterion will be doubled to "within 4km".
Read more here.
4.40pm: More support for education
- Annual Edusave contributions by Government to increase from S$200 to S$230 for primary school students, and from S$240 to $290 for secondary school students.
- Increased support to students from lower-income families by raising bursary amount for pre-university students from S$750 to S$900
- More meals for secondary school students under School Meals Programme
4.39pm: Next up: A caring and cohesive society
Mr Heng says he will talk about how the Government can better support Singaporeans and their families, strengthen partnerships between the Government and the community and encourage a spirit of giving in Singaporeans.
4.26pm: Mid-Budget speech break
The Budget statement will resume after a short break.
4.20pm: Additional U-Save for households for three years
Government expects to collect carbon tax revenue of nearly S$1 billion in the first five years. Funds will be set aside to enhance support for companies to improve energy efficiency.
Eligible HDB households will each get S$20 more a year to cover the expected average increase in electricity and gas expenses arising from carbon tax.
Read more here.
4.17pm: Carbon tax
The new carbon tax is set at S$5 per tonne of carbon-dioxide-equivalent (tCO2e) of greenhouse gas emissions for facilities that produce more than 25,000 tCO2e in a year.
The first payment will be in 2020, based on emissions in 2019. It is to be increased to S$10 to S$15 per tCO2e by 2030.
This is lower than the S$10 to S$20 per tCO2e previously expected.
Read more here.
4.10pm: Beyond the economy
Mr Heng is moving on to how Singapore can become a smart, green and liveable city.
"Today, Singaporeans enjoy the comforts of a modern city, along with clean air, clean water and verdant spaces."
He mentions how otters have returned to Singapore's waterways.
4.05pm: A new Infrastructure Office
The Office will bring together local and international firms for infrastructure projects, to tap on opportunities in Asia - for example, China's Belt & Road Initiative, Japan and India's Asia-Africa Growth Corridor.
4pm: More initiatives for innovation
Finance Minister Heng Swee Keat delivering the Budget 2018 statement.
- The National Robotics Programme will be expanded to the built-environment sector, especially construction
- A new Enterprise Development Grant will combine IE Singapore and SPRING's existing grants, with up to 70 per cent co-funding
- Tax deduction for internationalisation to be doubled
- Also, a Capability Transfer Programme to support skills transfer from foreign specialists to Singaporeans
Read more here.
3.51pm: Aviation and Maritime Transformation
Mr Heng announces a new Aviation and Maritime Transformation Programme
Airport and seaport will become platforms for companies to develop test and use new technologies. The Government will fund up to S$500 million for the two programmes.
3.50pm: "Tinder" for innovation
An Open Innovation Platform will be piloted by IMDA - a virtual crowd-sourcing platform where companies can list specific challenges that can be addressed by digital solutions.
The companies will then be matched with ICT firms and research institutes, to co-develop solutions.
Read more here.
3.48pm: Incentives to boost innovation
As the Productivity and Innovation Credit (PIC) expires, Mr Heng says that existing grants to support adoption of off-the-shelf technologies will be streamlined into a single Productivity Solutions Grant or PSG.
There will be up to 70 per cent funding support for companies to adopt productivity-enhancing tech or solutions.
Other measures:
- More tax deductions on licensing payments for commercial use of intellectual property (IP)
- More tax deduction for IP registration fees and expenses incurred on R&D
3.46pm: "Make innovation pervasive throughout our economy"
Finance Minister Heng Swee Keat delivering the Budget 2018 statement.
Mr Heng raises the example of concrete and cement company Pan-United, which has developed a new type of flexible concrete which can cushion the landing of aircraft.
It's "a concrete example of how innovation can help a firm cement its position as a market leader", he says.
3.42pm: Corporate Income Tax rebate
The rebate for companies will be raised to 40 per cent, capped at S$15,000 for YA2018.
For YA2019, it will be 20 per cent, capped at S$10,000.
This will benefit all tax-paying firms, especially smaller ones, Mr Heng says.
3.41pm: Wage Credit Scheme to be extended
The scheme will be extended for three more years until 2020. The scheme co-funds wage increases for Singapore employees up to a gross monthly wage of S$4,000.
Co-funding will be 20 per cent for 2018, 15 per cent for 2019 and 10 per cent for 2020.
Read more here.
3.39pm: The way forward - 4 main themes
To address the coming shifts, Mr Heng lays out four areas of focus for the Budget:
- To develop a vibrant and innovative economy
- To build a smart, green and liveable city
- To foster a caring and cohesive society
- To plan ahead for a fiscally sustainable and secure future
3.33pm: Mr Heng highlights 3 major shifts in the coming decade
VIDEO: Ageing will be a major issue for Singapore in the coming decade. There will be “significant increase” in healthcare and social expenditure, says Minister Heng Swee Keat. #SGBudget2018 https://t.co/GmwWlQZ6Oh pic.twitter.com/HUNAj9Bdmy — Channel NewsAsia (@ChannelNewsAsia) February 19, 2018
- A shift in global economic weight towards Asia
- The emergence of new technologies
- Ageing population
3.28pm: Good news for the Singapore economy
Mr Heng starts on a positive note as he talks about the Singapore economy's better-than-expected growth in 2017.
GDP grew 3.6 per cent, up from 2.4 per cent in 2016.
Productivity growth was also stellar at 4.5 per cent value-added per actual hour worked - the highest figure since 2010.
3.08pm: Finance Minister Heng Swee Keat arrives
Mr Heng waves as he arrives at Parliament House, holding the traditional briefcase.
Minister for Finance Heng Swee Keat arrives in Parliament to deliver Budget 2018. (Photo: Gaya Chandramohan)
2.36pm: Where you can tune in for Budget 2018 coverage
Finance Minister Heng Swee Keat will be delivering this year's Budget in about an hour.
Mediacorp will broadcast the 2018 Budget statement live on Channel NewsAsia, 938Now, channelnewsasia.com, Channel NewsAsia Facebook and Toggle.
You can also go to Channelnewsasia.com's Budget 2018 site for all the latest stories.
Channel NewsAsia's Facebook page will also carry Mr Heng's speech live.
2pm: What can you expect from Budget 2018?
This year's Budget could provide more clarity on tax hikes as the Government strikes a balance between increasing spending on social needs and fiscal sustainability.
A bumper Budget surplus is also expected on the back of stronger economic growth.
Channel NewsAsia's Tang See Kit takes a look at five issues that could be in the spotlight for Budget 2018.
Opening Statement
3:33pm: Minister Heng Swee Keat starts the budget off by recapping some of the challenges that Singapore will face in the global economy that we live in. These include 1) a shift in global economic weight towards Asia, 2) emergence of new technologies and 3) our ageing population.
Building A Vibrant And Innovative Economy
3:40pm: Firms remain concern about business cost. One key concern is wage growth. But wage growth is good for Singaporeans.
> Wage Credit Scheme (WCS) to be extended for three more years. WCS helps co-fund wage increases of Singaporeans up to $4,000. In total, this will cost about $1.8billion. Corporate Income Tax to be extended as well. This will cost about $475 million over the next two years.
Longer Term Transformation For The Economy
3:43pm: Strengthen the three enabler to build the Singapore economy: Innovation, Capability and Partnership.
3:46pm: Innovation – Support firms to become more innovative. Temasek and NRF to work together to help companies grow their IP. At least $100 million will be invested into this program.
3:51pm: Deepening Capabilities – Spring and IE Singapore to merge into Enterprise Singapore.
> “Every profitable company should pay taxes” – Minister Heng. Start-Ups and older firms will see their taxes go up slightly as tax exemptions are slightly reduced.
Clean & Green City
4:14pm: Singapore produces least carbon emission compared to most countries. To encourage companies to reduce carbon emission, Carbon tax to be introduced in 2019. This will be set at $5 per tonne of emission and is expected to raise about $1 billion over a period of 5 years. For petrol and diesel, no additional taxes (for now). Carbon tax is unlikely to affect household by much. However, addition U-Save vouchers will be given to selected families to help them cope with this small increase in cost.
Increasing Support For Citizens
4:40pm: Support Singaporeans and their families by supporting their education cost. Annual Edusave top-up from $200 to $230 for primary school students, and from $240 to $290 for secondary school students with effect from 2019. Additional support for students from lower income families by raising bursary from $750 to $900.
> Give our youth a good financial literacy head-start. Financial education curriculum to be introduced at Polytechnic and ITE.
> Premium subsidies for lower and middle income families for ElderShield Review
> Support families who live with and near each. Proximity Housing Grant (PHG) to increase from $20,000 to $30,000 for those who live with their parents/children. PHG criterion will also be extended from within a 2km radius to within a 4km radius.
> Foreign Domestic Work levies will also be revised.
Watch It Live
You can watch the broadcast live via webcast on the Singapore Budget 2018 website. You can also can watch it on ChannelNewsAsia, NewsRadio 938LIVE and Toggle.
Pre-Budget Articles
Before the budget is announced, you can read up on some of the pre-budget related articles that we have written.
Singapore’s Ageing Population: The Financial Implications Of Our Country Growing Old
Singapore’s Healthcare Outcomes Are Among The Best In The World. Why Is The Government Still Planning To Spend More?
The National Budget: Spending Today vs Investing For The Future? Which Is More Important?
Guide To Understanding Taxes In Singapore, And Who Pays For Them
DollarsAndSense.sg is a website that aims to provide interesting, bite-sized financial articles which are relevant to the average Singaporean. Subscribe to our free e-newsletter to receive exclusive content not available on our website. Follow us as well on Instagram @DNSsingapore to get your daily dose of finance knowledge through photos.
SINGAPORE - Amid Singapore's strong position riding on a global upturn last year, Finance Minister Heng Swee Keat outlined in his Budget speech on Monday (Feb 19) three major shifts in the coming decade: a greater economic emphasis on Asia, the emergence of new technologies and an ageing population.
Budget 2018 is meant to be a strategic and integrated plan to help Singapore prepare for these changes.
GREATER EMPHASIS ON ASIA
With several advanced economies turning their attention inwards due to domestic pressures - such as Brexit in Britain and the United States' recent tax changes and review of trade pacts - Asia will play a larger role in global trade and investment flows, Mr Heng said.
China setting out a regional infrastructure bank for its bold plans under the Belt and Road initiative, and a rapidly growing middle-class population in Asean countries are just some of the significant opportunities for Singapore firms, Mr Heng added.
But he also warned about potential threats to the stability of the region, in the form of tensions in the Korean peninsula and the South China Sea, as well as terrorism concerns.
NEW TECHNOLOGIES
New technologies, such as robotics and digital innovations, are reshaping the economy and jobs, Mr Heng said.
Soon, firms will compete less on physical assets, but more on intangible ones such as intellectual property, data and user networks, said Mr Heng, adding that "first-mover advantage and time to market will be key".
AGEING POPULATION
With an ageing population, there will be more spent on healthcare and other social expenditure, which, in turn, places greater demands on families and the Government, said Mr Heng.
It also means that the resident workforce will shrink, tightening the labour market and slowing economic growth further, unless people change the way they work to be more productive, and supplement the workforce with a calibrated inflow of foreigners, Mr Heng added.
Noting that there are other forces that can also strain the social fabric, such as income inequality and social mobility, Mr Heng said the Government will continue to invest in education and skills upgrading, and promote sports, arts and volunteerism to build common interests and shared activities.
These three shifts will interact, to bring new opportunities - such as technology to help older workers stay productive - but also new challenges - such as the risk of cyber attacks and online radicalisation, said Mr Heng. But Singapore is in a good position to guard against such challenges and capture the opportunities, he added.
It will do so under four broad strokes:
1. Developing a vibrant and innovative economy
2. Building a smart, green and liveable city
3. Fostering a caring and cohesive society
4. Planning for a financially sustainable and secure future
DEVELOPING A VIBRANT AND INNOVATIVE ECONOMY
Singapore must become a technology hub connecting Asia to the rest of the world, said Mr Heng.
To do this, it must make “innovation pervasive in our economy”, develop deep capabilities in its workers, and establish strong partnerships abroad.
The Government will push this through by:
- Extending the Wage Credit Scheme, which subsidises wage increases for Singaporean employees earning up to $4,000 monthly, for another three years, though this will taper off over the years.
- Doubling the corporate tax rebate to 40 per cent of tax payable and capped at $15,000, up from $10,000 previously.
- Leaving levy rates for foreign workers unchanged for all sectors.
- Introducing the new Productive Solutions Grant, which will fund up to 70 per cent of qualifying costs for small and medium-sized enterprises seeking to adopt off-the-shelf technologies.
- Setting up a new Infrastructure Office to bring together local and international firms to develop, finance and execute infrastructure projects, and enable local companies to tap opportunities in the region.
BUILDING A SMART, GREEN AND LIVEABLE CITY
The authorities will continue to improve the living environment here by implementing Smart Nation initiatives, such as better adoption of e-payments, and developing next-generation grid architectures that can respond quickly and reliably to changes in energy demand and supply, said Mr Heng.
SINGAPORE - The upcoming Budget will be pro-Singaporean, pro-business, and pro-environment, said Finance Minister Heng Swee Keat on Sunday evening (Feb 18) during the River Hongbao celebrations.
Mr Heng, who is due to give his annual Budget statement in Parliament on Monday, was addressing crowds gathered at The Float@Marina Bay.
"Budget Day is tomorrow. Everyone has been asking me if there will be a 'hongbao'," Mr Heng joked in Mandarin.
But the Budget is actually a comprehensive, strategic plan for Singapore, he added in a more serious tone.
"In the coming 10 to 15 years, we will face some very large challenges, so we need a strategic plan to build a better Singapore," he said.
Ahead of Budget Day, Deputy Prime Minister Teo Chee Hean also spoke on Sunday of the need to help companies improve their technology and workforce, and help workers gain skills needed for the "jobs of the future".
The Budget statement will be delivered at 3.30pm on Monday.
The Straits Times will cover the speech live at www.straitstimes.com. The public can also watch it on the official Budget website.
