Far-sighted budget to carry Singapore through productivity slump: KPMG

Innovation will bcome more pervasive.

The far-sighted 2015 Budget will help carry Singapore through the current productivity slump, a report by KPMG stated.

KPMG noted that while the productivity drive will remain broad-based, more help will be given to businesses that build innovative capacities and a global orientation.

“All these are steps in the right direction, as we mature from a value-adding to a value-creating economy. Creating new value would only be possible if we invest in new capabilities, which have to come from training our people in the deep skillsets valued by growth industries. SkillsFuture sets out to achieve this, with the Government setting aside $1 billion per year for the next five years for this initiative,” stated KPMG.

The full commentary by KPMG can be found here.

Here’s more from KPMG:

In many ways, this is a far-sighted Budget, aiming beyond basic solutions. It pledges support for companies venturing for bolder breakthroughs in the way they do business.

Encouragingly, in a move to make innovation pervasive in the economy, more forms of innovation will be recognised – including new ways of reaching customers, design and brand development, and overhauling of business processes. No longer is innovation narrowly confined to revolutionary breakthroughs, but now includes developmental applications of technology, where grants are concerned. 

Besides innovation and skills development, the Budget also promised enhanced support for companies expanding overseas. It recognises that more among our SMEs are thriving overseas, and that new technologies such as digitisation and crowd-sourcing are enabling more smaller companies to compete against larger players. Rising business costs are still real in the midst of restructuring pains.

To help businesses cope, the Wage Credit Scheme and Corporate Income Tax rebate will be extended for two additional years. Deeper skills development, stronger industry collaboration, more innovative and internationalising Singapore companies. This is the economic future that Budget 2015 envisions for Singapore, and one that we can all take part in and contribute to.