Singapore Budget 2022 

As the COVID-19 pandemic enters the third year and as global economies slowly open up, this year’s Budget seeks to position Singapore for the opportunities and challenges in the post-pandemic world. The Minister for Finance in his Budget Statement said that this year’s Budget “is about charting our new way forward together”. In keeping with this theme, the Budget sets out the key changes to:

1. Invest in new capabilities;
2. Advance Singapore’s green transition;
3. Renew and strengthen Singapore’s social compact; and
4. Develop a fairer and more resilient revenue structure.

While the Budget is forward looking, immediate concerns were also addressed. To provide continued targeted support to households, businesses and workers to mitigate the lingering effects of the COVID-19 pandemic, several support packages were introduced. For example, a S$560 million Household Support Package was unveiled to help Singaporeans with their utility bills, children’s education and daily essentials. In addition, several existing measures such as the Jobs Growth Incentive were enhanced or extended.

Instead of a new wealth tax that is practically difficult to administer in its pure form, several tweaks have been introduced to the existing tax regime to make the tax system more progressive such that the more well-off contribute a larger share to the tax revenue. However, these changes do not rock Singapore’s status as a wealth management hub.