DEPUTY Prime Minister and Finance Minister Lawrence Wong will deliver the 2023 Budget Statement on Feb 14, with economists expecting a return to prudence after two years of Covid-related spending. But with slowing growth and high inflation, Singaporeans can still expect some short-term support.

1. Coping with the cost of living

Enhancements to the goods and services tax (GST) Assurance Package are expected, in the form of cash, vouchers or account top-ups. UOB economists predict that S$500 million to S$1 billion could be added. The lion’s share will likely go to the vulnerable and lower-income.

2. Promoting parenthood

Families may get help to cushion the cost of raising children. After government-supported pre-schools lowered fees in January, Prime Minister Lee Hsien Loong said that further changes would be announced in coming months.

3. Income support for the retrenched

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Unemployment support has been a hot topic, and may be introduced for retrenched workers. Conditions could include training participation, a minimum age and proof of a job search.

4. Business transformation

Budget 2023 is likely to be about the post-pandemic reality. For businesses, this means transformation. With Covid support having tapered, the focus may be on digitalisation, internationalisation and sustainability, with possible scheme extensions and renewals.

5. Continued sustainability push

To aid Singapore’s green transition, there may be initiatives to encourage blended financing; higher carbon taxes; and support for green infrastructure projects. Companies may get help to hire and train sustainability-focused staff.

6. Corporate or wealth tax changes

Higher personal income tax rates for top earners were announced in Budget 2022, so further changes are not expected now. But worries remain over the prospect of wealth taxes. There may be an update on the planned corporate “top-up” tax in response to global tax changes under the Base Erosion and Profit Shifting 2.0 initiative.

7. Property tax and rule tweaks

Further property cooling measures may be on the cards, with room for higher property and transaction taxes. Build-to-Order flat rules may also change, with National Development Minister Desmond Lee noting calls to prioritise “those with more urgent housing needs”, such as first-timer couples with children but not their own home, or lower-income families.

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