A much-needed cushion to help businesses and society

IT'S as simple as ABC really. In his maiden Budget speech, Finance Minister Heng Swee Keat painted a tapestry of collective partnership to strengthen our enterprises, nurture innovative industries and build a caring society in Singapore. Recognising that business conditions are difficult and uncertain, there clearly was a need to extend near-term help but without losing sight of the medium-term strategies.

While the economic backdrop remains challenging, he stressed there was no need to be overly pessimistic. Even as major economies are continuing to restructure, the Singapore economy still sees pockets of growth and resilience within a soft 1-3 per cent growth forecast for 2016. Examples include the local food, ICT, tourism and financial services industries. The notable emphasis on driving Singapore to new areas of growth and innovation can also be seen from the ambitious development of the Jurong Innovation District, described as the "future of innovation for enterprise, learning and living".

The government also has sufficient ammunition, through the step-up in the Net Investment Return Contribution (NIRC) with the inclusion of Temasek Holdings, and this can and will be used when the need arises. These were the main messages that came through in Budget 2016.