ASME sees little cost relief

Singapore

WHILE the extension of the corporate income tax rebate and Wage Credit Scheme is welcomed, businesses say the raft of rebates and scheme enhancements does not necessarily point to lower costs for businesses.

"Generally, I think the Budget is continuing to point to a potentially higher cost environment," said Kurt Wee, president of the Association of Small and Medium Enterprises (ASME). "We're not cutting levy although we're deferring it, and we're increasing Central Provident Fund (CPF) contributions. There is also an emphasis that our labour policy will continue to be tight. So I think in the larger scheme of things, we're not looking at business costs coming down."