Singapore expected to rely on grants, loans and credit schemes to draw investors amid global tax shift

SINGAPORE may have to rely more on grants, loans and credit schemes to keep multinationals here, when new corporate tax rules kick in worldwide. But though policymakers have sounded the alarm over hotter competition for global investments, watchers believe that the country is poised to stay ahead of the pack.

While Pillar Two of the Base Erosion and Profit Shifting 2.0 (BEPS) initiative could limit tax breaks for foreign investors, analysts told The Business Times that Singapore already has substantial non-tax incentives in its economic policy arsenal.

Its well-established advantages, from infrastructure to rule of law, will also continue to give it an edge, they added.