Gov't spending to increase to improve quality of life
Government spending is expected to rise over the next five years as it embarks on plans to improve the quality of life for Singaporeans.
These plans include improving the transport infrastructure, enhancing the educational and healthcare systems and improving the quality of housing, listed Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam on Tuesday.
This will result in "government expenditure rising as a percentage of GDP in the next five years," he was quoted by The Straits Times as saying.
However, Tharman stressed that the government will maintain a "sound and sustainable fiscal system" and has in place a "resilient revenue structure to enable us to meet these higher spending needs".
He also added that the "overall burden of taxes on Singaporeans" will remain low by international standards.
In response to President Tony Tan's address on Monday, Tharman said strong reserves ensure Singapore can deal with crises.
He added that the Government of Singapore Investment Corporation and Temasek Holdings must continue to focus on the long term, pursuing investment strategies that "generate sustainable portfolio returns".
Meanwhile the Ministry of Trade and Industry (MTI) has also pledged to create more good jobs for locals, reported the paper.
In his addendum to the president's address, MTI minister Lim Hng Kiang was quoted as saying, "Singapore will be the preferred location for companies to deepen their understanding of the Asian consumer and test-bed new products and services for the region.
"At the same time, we will make Singapore an attractive base for emerging Asian companies seeking to expand internationally," he said.
The ministry also said it would help Singapore move up the value chain for production and tap on new growth opportunities.
To ensure local firms are competitive and productive, eight customised productivity roadmaps in various sectors, such as retail and precision engineering, have been deployed. One initiative is the Furniture Industry Productivity Plan launched by SPRING Singapore on Tuesday.
