What do SMEs want from the 2016 Singapore Budget

SMEs Singapore Budget 2016 is set to be released on Thursday, March 24^th at 3:30pm by Singapore’s Finance Minister – Mr Heng Swee Keat.

SMEs Singapore Budget: Overview

Mr Heng had provided an indication that the Singapore 2016 budget will have a strong focus on the economy and, providing support to the local SMEs is a priority. It is expected that the government will continue to focus on enhancing SMEs’ productivity and encouraging innovation to create a strong foundation to support economic growth.

Mrs Chung-Sim Siew Moon, head of tax services at Ernst & Young Solutions said “This year’s Budget is likely to be more moderate and perhaps empathetic in approach where the government will likely seek to balance the continued push for a vibrant and competitive economy with more care towards enabling our SMEs (small and medium enterprises), workforce and population to grow and succeed, so as to strengthen the Singapore core and foster an inclusive society.”

SMEs Singapore Budget: Feedback from SMEs on Singapore Budget 2016 per-announcement

Singapore Government received about 3,600 feedbacks prior to finalising the budget and Singapore SMEs are proposing:

1. Government to support SMEs by reducing the costs of technology and innovation solution that improve business productivity and reduce costs

2. Help cope with the challenging economic condition by

• Implementing a tax-free first year for new start-ups and tax reliefs
• Implementing tax rebates to incentivise companies to hire locals.
• Lowering of the Goods and Services Tax (GST), property tax and fuel tax.

2015 Performance

Gross domestic product (GDP) growth –  2%, the weakest since 2009

Productivity growth — down by 0.1 %, mark the second consecutive year of decline.

Source

• ‘Budget 2016: Slowing economy, jobs among Singaporeans’ top concerns’, Channel News Asia, 20^th March 2016.
• Lee Yen Nee, The Big Read: Budget 2016 prediction: No big bang, but a focus on the future, Today online, Friday 18^th March 2016