Decoding Singapore Budget 2023 for Businesses

The Singapore Budget 2023 was recently announced by the Minister for Finance, Lawrence Wong, on 21 February 2023. The budget is focused on promoting long-term growth and sustainability, with a particular emphasis on the digital economy and supporting businesses. In this blog, we will be decoding the Singapore Budget 2023 specifically for businesses, and examining the various measures that have been introduced to support them.

Support for Businesses

The Singapore Budget 2023 includes a range of measures aimed at supporting businesses in the country, particularly those that have been impacted by the COVID-19 pandemic. These measures include:

Corporate Income Tax (CIT) Rebate

The government will be providing a CIT rebate of 10% for YA 2023, subject to a cap of S$10,000 per company. This is aimed at providing relief to businesses that have been affected by the pandemic, and helping them to recover from the economic slowdown.

Extension of Wage Credit Scheme (WCS)

The WCS will be extended for another year, providing businesses with co-funding for wage increases for Singaporean employees. This is aimed at helping businesses to retain and attract local talent, and to support wage growth.

SkillsFuture Enterprise Credit (SFEC)

The SFEC scheme will be extended for another two years, with an additional S$500 million in funding. The scheme provides businesses with credits to support skills training and development for their employees, with the aim of boosting productivity and competitiveness.

Digital Resilience Bonus (DRB)

The DRB scheme, which was introduced in the previous budget, will be extended for another year. The scheme provides businesses with up to S$10,000 in funding for adopting digital solutions to improve their operations and resilience. The DRB scheme will be extended for another year, providing businesses with funding to adopt digital solutions.

Support for the Tourism and Hospitality Sector

The government will be providing targeted support to the tourism and hospitality sector, which has been severely impacted by the pandemic. This includes a range of measures, such as the extension of the Jobs Support Scheme, the enhancement of the Singapore Rediscovers Vouchers, and the introduction of a new S$100 million grant to support the sector.

Support for the Aviation Sector

The government will also be providing support to the aviation sector, which has also been severely impacted by the pandemic. This includes the extension of the Jobs Support Scheme, the introduction of a new S$50 million grant to support the sector, and the enhancement of the Aviation Development Fund.

Digital Transformation

Another key focus of the Singapore Budget 2023 is on digital transformation, which is seen as crucial for driving long-term growth and competitiveness. The government has introduced a range of measures to support digital transformation, including:

Digital Leaders Programme

The government will be launching a new Digital Leaders Programme, aimed at developing a pool of digital leaders in the public and private sectors. This programme will provide training and development opportunities, and is aimed at driving the adoption of digital solutions and innovation.

Digital Platforms and Ecosystems

The government will also be investing in the development of digital platforms and ecosystems, with the aim of supporting digital innovation and entrepreneurship. This includes the development of a new national digital identity platform, the enhancement of the Singapore Blockchain Innovation Programme, and the expansion of the Open Innovation Platform.