Singapore's top executives think Budget 2014 failed to address business cost woes

Local businesses still worry over tax environment.

According to a release, an overwhelming 70 percent of C-level delegates attending a KPMG breakfast seminar yesterday expressed satisfaction with the overall direction of Budget 2014.

In particular, a majority – or about 70 percent – felt that measures to support innovation and skills were a highlight in this year’s budget.

However, the audience poll also shed light on areas C-level executives thought the Budget could have better addressed.

More than half, or 54 percent of respondents felt that the Budget did not sufficiently focus on rising business costs.

About 20 percent felt that not enough was being done to provide greater certainty and simplicity in the tax and regulatory environment. Mr Tay added: “There are more than 100 tax incentives in Singapore, and many of them have conditions that are not straightforward.

More can still be done to focus on creating certainty and accessibility to incentives, as this will help businesses plan their growth.

“Simplifying the qualifying conditions for tax incentives can go a long way towards allowing businesses in Singapore to tap on available benefits.”

One of the panellists for the event, Mr Kurt Wee, President of the Association of Small & Medium Enterprises said: “Local businesses are worried about the overall business cost environment and the lack of measures to help reduce or lower costs.

“Singapore is already helping businesses which are progressive and which are already on the bandwagon. There are no low-hanging fruits. Our concern is that high business costs might hinder a level of self-renewal. We are also not sure about the pace at which the smaller companies are being squeezed out.”