Digitalisation and innovation
To build stronger digital capabilities, the government co-funded the adoption of digital solutions and new technologies like the Emerging Technology Programme and Digital Leaders Programme. The Chief Technology Officer as a Service (CTOaaS) was also launched to provide quick access to relevant digitalisation resources via a onestop touchpoint.
Investments were made in the area of innovation as well. The new Corporate Venture Launchpad provides co-funding for corporates to build new ventures through pre-qualified venture studios. Another new initiative was the Global Innovation Alliance (GIA), launched to catalyse cross-border collaboration between Singapore and global innovation hubs.
The Open Innovation Platform (OIP), which matches business seeking digital innovation with solution providers, has been enhanced with new features to enable better matching, testing and development.
What to expect for Budget 2022
According to figures released by the Ministry of Trade and Industry, Singapore's GDP grew 5.9 per cent year-on-year in the fourth quarter, bringing full-year growth for 2021 to 7.2 per cent. This growth, coupled with high vaccination rates, provides a strong foundation for Budget 2022.
In a February 3 speech, Finance Minister Mr Lawrence Wong noted that this year's Budget will address concerns over "more immediate issues" like the cost of living and provide support for sectors facing difficulties due to Covid-19.
“We will continue to grow and transform our economy, and create good jobs and opportunities for all Singaporeans,” he added.
SMBs can expect an announcement on the Goods and Services Tax (GST) rate hike. The plan to raise the GST by two percentage point (from 7 per cent to 9 per cent) was first announced in 2018 during then-Finance Minister Heng Swee Keat’s Budget speech. In his New Year message, Prime Minister Lee Hsien Loong indicated that the Government would have to “start moving” on the planned hike in Budget 2022.
A revised carbon tax level for 2024 will also be announced. The government will provide indications on what to expect up to 2030, giving businesses time to adjust.
"To help companies transit, they can tap incentives and grants by investing in production processes and equipment that will, for example, increase energy efficiency, or to capture carbon,” said Minister for Sustainability and the Environment Grace Fu, speaking at the St. Gallen Symposium 2022 Singapore Forum.