Singapore’s pro-business environment has always been a plus point for businesses wishing to conduct their economic activities here. With our agility and adaptability to changes, we have been able to stay competitive while continuously identifying new areas of growth. One key focus of the Singapore Budget 2024 is innovation, which will ultimately enable businesses to leverage on exceptional opportunities for growth, and compete on an international scale with their counterparts.
Numbers at a glance
S$1 billion
investment in the area of AI (Artificial Intelligence)
S$3 billion
investment in Research, Innovation and Enterprise 2025
S$2 billion
top-up of Financial Sector Development Fund
Blueprints to sharpen our competitive edge
To enhance the competitiveness of Singapore’s economy and retain high-value economic activities within our shores, the Government introduced the Refundable Investment Credit (RIC) scheme to provide tax credits for enterprises, amongst other initiatives that positions Singapore as a preferred hub for conducting business.
Key initiatives:
Introduction of Income Inclusion Rule (IIR)
Domestic Top-up Tax (DTT)
Introduction of Refundable Investment Credit scheme
A focus on knowledge, an eye on AI
Recognising the transformative power of AI in the economy, the Government is dedicating S$1 billion over the next 5 years to developing the industry of AI, with a plan to become a leader in the field, through establishing centres of excellence with leading companies.
For an economy that would thrive on AI, it is crucial to stay up-to-date with trends, with a commitment to identify new avenues of growth. With the Budget 2024, businesses engaging in technological research and innovation are given an extra hand to harness and develop our knowledge capital.
Key initiatives:
S$1 billion investment over 5 years in area of AI
Development and cultivation of knowledge capital ecosystem
S$3 billion investment in Research, Innovation and Enterprise 2025
Elevating capabilities for all-round growth
Encouraging more partnerships with multinational enterprises (MNEs), the Partnership in Capability Transformation allows businesses to upskill and elevate their capabilities, and prepare them for competing in overseas markets. In addition, the S$2 billion top-up of the Financial Sector Development Fund (FSD) will help retain Singapore’s leading status as a financial services hub, while developing new core areas in fintech and green finance.
Key initiatives:
Investment in enterprises through Partnership in Capability Transformation (PACT) for enhanced collaboration and capability development
S$2 billion top-up of the Financial Sector Development Fund
