A future where no one is left behind
As the world moves forward from the COVID-19 pandemic, two main risks hang over the global economy: rising inflation and geopolitical tensions. Time is also running out in the race to build a sustainable earth against the mounting threats of climate change.
In the face of this complex constellation of challenges, Singapore remains undeterred.
Investments in clean technologies and energy efficiency have accelerated to meet shifting energy needs and reach climate objectives. More help for Singaporeans to cope with rising costs and strengthen resilience are on the way. And support for business transformation and innovation remains robust.
While the road ahead remains uncertain, one thing is clear: To build a strong, competitive and cohesive society, the nation will need to forge new pathways to sustainable and inclusive growth — where no one will be left to walk alone.
Explore key highlights from the Singapore Budget 2023, which reflects recommendations put forth in KPMG in Singapore's Budget 2023 Proposal.
With the introduction of the Enterprise Innovation Scheme, Singapore will lead the global chart as being one of the most attractive countries for R&D activities. As a nation focused on innovation, it will reap the benefits from increased R&D investments by businesses.
Enhancements to the National Productivity Fund (NPF) will strengthen our people's capabilities and productivity, providing Singapore with a competitive edge to attract and anchor strategic industries, with a more sustainable approach than providing tax breaks and subsidies.
The $1b Singapore Global Enterprises boost will spur companies with global mindsets to expand internationally. They can use this grant to accelerate innovation, capitalise on emerging opportunities and form partnerships for internationalisation. This will result in a more resilient and robust business model for local enterprises.
The enhancement of the National Productivity Fund to build local capabilities, enhance productivity and reskill our workforce signals the Government’s recognition of the need to stay competitive and commitment to creating strategic long-term value.
From topping up the National Productivity Fund and SME Co-Investment Fund, to pushing new frontiers by introducing the Enterprise Innovation Scheme, Budget 2023 blazes a trail for local enterprises to build core capabilities and seize growth opportunities.
Extending the Enterprise Financing Scheme and Energy Efficiency Grant signals strongly the Government’s commitment to SME growth and energy transition.
In Budget 2023, the Government reaffirmed its commitment to fighting climate change and the greening of Singapore’s stock of buildings.
To help accelerate the greening of buildings in Singapore, it will be necessary to boost the attractiveness of such buildings for developers and owners. This can be bolstered by appropriate fiscal incentives such as double tax deduction on financing costs, property tax and GST rebates.
In addition, the demand for such buildings can be enhanced through double tax deductions on rentals paid by tenants of green buildings.
The decision to raise the CPF salary ceiling from $6,000 to $8,000 per month is a timely response to rising retirement needs and will assist Singaporeans to keep pace amid the high inflation environment.
More importantly, phasing implementation over four years will cushion the impact for employers, allowing them to adjust to these changes at a time when they are already dealing with escalating business costs in these post-pandemic years.
Introducing the Philanthropy Tax Incentive Scheme for Family Offices will enable Singapore to elevate its status as a regional and global philanthropic hub by allowing tax deductions for overseas donations.
As Singapore strives towards new horizons, the Enterprise Innovation Scheme will encourage businesses to invest in R&D and innovation ensuring that they capitalise on emerging opportunities in the face of growing uncertainty.
Opportunity amid uncertainty
New initiatives and enhancements to pave pathways to growth
For one, for all
Support and grants to strengthen social compact and uplift lives
The road to resilience
Measures and support to survive and prosper in a troubled world
Tax changes
Keep up with the latest tax changes unveiled by Deputy Prime Minister and Minister for Finance Mr Lawrence Wong in his Budget 2023 Statement.
Event: KPMG Singapore Budget 2023 Technical Seminar
KPMG in Singapore will be sharing insights and perspectives on how this year’s Budget will affect businesses like yours at our Budget 2023 Technical Seminar on Tuesday, 28 February 2023, at the Sands Expo and Convention Center.
Our Budget 2023 Proposal
KPMG in Singapore has put forth a three-pillar framework for how the nation can come together to chart a path towards a lasting future — one in which everyone has a stake and role to play. Explore our proposed measures for Singapore Budget 2023.
