Opportunities for the Future

Transcription

1 Opportunities for the Future Assurance for Our Seniors Budget In Brief

2 Backdrop to Budget 2014 In the last few Budgets, we have focused on building a nation of opportunity and an inclusive society where every citizen shares in Singapore s success; This is underpinned by four key themes: Quality Growth Based on innovation and deeper capabilities Good jobs and rising incomes for Singaporeans Thriving small and medium enterprises A Fair and Equitable Society Affordable healthcare Assurance for retirement needs Help for the vulnerable Opportunities for every child to do well A Liveable and Endearing Home Quality and affordable public housing Connected and reliable public transport Attractive social spaces for all A Cohesive Community Strong families and communities Vibrant arts and sports scene Active citizenry We have embarked on several multi-year initiatives that are making good progress. Budget 2014 builds on these efforts to provide greater emphasis on transforming our economy and strengthening social support, especially for our seniors. Budget

3 Transforming Our Economy We have made skills, innovation and productivity the basis for economic growth and rising real incomes. This is key to keeping our economy vibrant, with a strong core of Singapore-based companies and with every working Singaporean in well-paying, meaningful jobs. Restructuring is benefitting Singaporeans through higher real wages. Median wages for citizens grew by 9%, after accounting for inflation Higher than in other Asian NIEs Investing in Productivity and Skills We provide firms with strong support for every investment that could improve productivity. We set aside $2b for the National Productivity Fund, introduced the Productivity & Innovation Credit (PIC) scheme and other measures in previous years. Last year, we added a three-year Transition Support Package including the Wage Credit Scheme (WCS). Many SMEs have benefitted from these schemes. Wage Credit Scheme Productivity In end-march 2014, businesses will receive around $800m for employees wage increases in 2013 Since 2011, we have disbursed more than $1b in PIC benefits. Two out of three SMEs with turnover of more than $1m have claimed PIC benefits Productivity has increased by 11% since we began the restructuring journey. This was entirely due to the strong cyclical recovery in 2010, but there has been little improvement since. Budget 2014 will deepen support for companies that make efforts to strengthen dynamism and efficiency. Budget

4 In Budget 2014 PIC Enhancements; More Support For SMEs Extend PIC for 3 years to provide continuing support for businesses as they restructure Introduce PIC+ for qualifying SMEs: Raise expenditure cap for each qualifying activity from $400,000 to $600,000 from YA2015 Scale up Adoption of Infocomm Technology (ICT) 3-year ICT for Productivity and Growth Programme (IPG) Proven ICT solutions: Target to extend these solutions to another 10,000 SMEs Piloting of emerging solutions: Support 80% of qualifying costs, capped at $1m per participating firm Enabling high speed connectivity for businesses: Subsidise SMEs fibre broadband subscription plans of at least 100 Mbps and provide support to implement Wireless@SG services at their premises Facilitating access to fibre broadband: Subsidise up to 80% of the costs of new in-building infrastructure, capped at $200,000 per building Industry Transformation through New Industrial Spaces Investment in Skills and Training Support clustering among firms to improve competitiveness 5-year renewal of the Land Intensification Allowance scheme till Jun 2020 and extended to logistics sector Top up $500m to the Lifelong Learning Endowment Fund to $4.6b, in line with our commitment to Continuing Education and Training Tax Incentives For Innovation Qualifying R&D expenditure: 10-year extension of the 50% additional tax deduction till YA2025 EDB-approved R&D projects: 5-year extension of the further tax deduction scheme till Mar 2020 Acquisition of Intellectual Property Rights: 5-year extension of writing down allowance till YA2020 Budget

5 Helping Businesses Grow and Internationalise Micro-Loan Programme (MLP) has provided 3,500 loans to SMEs over the last 2 years Co-Investment Programme (CIP) has catalysed over $500m of investments from private sector players, over 3 times the Government s seed funding IE Singapore provided assistance to more than 26,000 companies in 2013, including access to $775m in trade and financing loans In Budget 2014 MLP: Raise Government s risk-share for loans to young SMEs CIP: Additional $150m to further catalyse growth capital for promising enterprises Internationalisation Finance Scheme: Double the maximum loan quantum to $30m per firm More support under Global Company Partnership Programme Managing Foreign Workforce Growth We have progressively raised levies and lowered Dependency Ratio Ceilings. To raise the quality of our foreign workforce, we have differentiated the levies for skilled and unskilled workers, and tightened the requirements for S Pass and Employment Pass holders. Foreign Worker Inflow (excluding construction sector) 2011: 60, : 16,800 In Budget 2014 Construction Targeted Policies and Upstream Measures Increase levies for basic-skilled workers by $100 in 2016 to encourage employment of skilled workers New Market-Based Skills Recognition Framework to help retain workers with better skills and experience Extend maximum Period of Employment from 18 to 22 years for higher-skilled workers Mandate use of productive technologies on selected sites Increase buildability and constructability scores for private projects on non-government Land Sale sites Budget

6 A Fair and Equitable Society Our policies and programmes seek to: Provide stronger support for those who start off with less Strengthen our social safety nets Mitigate inequalities Keep quality healthcare affordable and strengthen community networks Promoting Social Mobility Our approach is to ensure that our students have every opportunity to advance through education, regardless of family background. We are committed to significant upstream interventions to give even greater support to students from lower- and middle-income families. 200 more childcare Increased support Improved affordability of centres by 2017 to pre-schools to childcare for lower- and raise quality middle-income families Extended bursaries for Increased financial Raised the target for university higher education to 2/3 of assistance to benefit about cohort participation to 40% Singaporean households 65,000 needy students by 2020 In Budget 2014 Enhance the Kindergarten Fee Assistance Scheme (KiFAS) Provide more fee assistance Extend support to middle-income families Extend to all Anchor Operators and MOE Kindergartens Increase bursaries for students in ITEs, polytechnics and universities Raise qualifying per capita monthly household income threshold to $1,900 to cover two-thirds of Singaporean households More support for lower- and middle-income families Budget

7 Enhancing Progressivity In previous years, we have: Significantly enhanced the Workfare Income Supplement (WIS) to boost incomes and retirement savings of low wage workers Introduced the Progressive Wage Model in the cleaning sector to ensure that they enjoy significant upgrades in their basic pay and get more when they upgrade their skills Increased progressivity of Singapore s tax system through: Higher property tax rates for high-end residential properties, especially investment properties $ Higher Additional Registration Fees for more expensive cars Improving Housing and Public Transport To ensure quality, affordable housing for Singaporeans, we have: Increased supply of Build-To-Order (BTO) flats by more than 77,000 over the last three years Enhanced housing grants and raised income ceilings for BTOs and Executive Condominiums Introduced several rounds of measures to cool the residential property market We are improving our public transport system to benefit commuters: WIS Bus Service Enhancement Programme to up frequency and add 40 new routes by 2014 Reliability has improved further for trains and buses Better last-mile connectivity with 200km more sheltered walkways by 2018 New fare concessions for WIS recipients and the disabled Budget

8 Preparing for an Ageing Population We are providing more support to older workers. We are also making healthcare more accessible and affordable. Special Employment Credit CPF LIFE provides lifelong Help seniors unlock their (SEC) encourages monthly payouts property savings with Lease employment of older Buyback Scheme and Silver workers Housing Bonus By 2020: 6 new polyclinics, MediShield Life from 2015 Higher subsidies (up to 80%) 4 new community hospitals, for all Singaporeans with for intermediate and long- 25 new and replacement enhanced benefits term care for lower- and nursing homes middle-income Singaporeans In Budget 2014 Higher subsidies for Specialist Outpatient Clinic services for lower-- and middle-income Singaporeans, benefiting 400,000 patients Annual Medisave top-ups - of $100 to $200 over five the next years five for years Singaporeans for Singaporeans aged 55 and 55 years above and in 2014, above excluding 2014, those excluding already those covered already by the covered Pioneer Generation by the Pioneer Package Generation Package Allow elderly patients to use a portion of Medisave more flexibly across a range of Allow outpatient elderly treatments, patients above to use existing a portion Medisave of Medisave withdrawal more limits flexibly across a range of outpatient treatments, above existing Medisave withdrawal limits From 2015, increase CPF employer contribution rates for all workers by 1 percentage point From to 2015, be allocated increase to CPF the employer Medisave Account. contribution In addition, rates for all workers by 1 percentage point Workers to be allocated aged to the years: Medisave +1 percentage Account. point In addition, to the Special Account Workers above years: percentage point to to the the Special Account Workers above years: +0.5 percentage points to the Special Account To offset cost increases, Government will provide employers (for one year) with: To Additional offset cost up increases, to 0.5 percentage Government point will of provide the Special employers Employment (for one Credit year) with: Additional Temporary 0.5 Employment percentage Credit point of 0.5 Temporary percentage Employment points Credit Special Employment Credit up to 0.5 percentage points more Workers aged will also contribute an additional 0.5 percentage point to their Ordi- nary Workers Account above years will also contribute an additional 0.5 percentage points to their Ordinary Account Enhance parent and handicapped parent reliefs by up to $3,000 from YA2015 onwards, Enhance with individuals parent staying and handicapped with their parents, parent grandparents reliefs by or up great to -$3,000 grandparents from enjoying YA2015; higher individuals reliefs staying with parents, grandparents or great-grandparents get more Budget

9 Supporting Vulnerable Groups We introduced the permanent GST Voucher (GSTV) Scheme to help low-income families cope with the cost of living. For a typical elderly couple staying in a small HDB flat, the GSTV fully offsets the GST they pay. There are also new and enhanced schemes to support needy families and persons with disabilities (PWDs). Cash Medisave U-Save Benefits 1.4 million Helps 370,000 older Provides relief to Singaporeans Singaporeans 800,000 households SEC WIS Set up 20 Social Support PWDs Enhanced Public Expand GP outpatient Service Offices by through the Enabling Assistance scheme subsidy scheme to 2015 to coordinate Masterplan; extended for 3,000 recipients 520,000 households social services WIS and SEC to them and include all ages In Budget 2014 Greater Support for Persons with Disabilities Early intervention programmes for children with special needs: Higher subsidies Extend coverage to the upper-middle-income families Affordable transport: New fare concessions (25% discount) on public transport Higher subsidies (up to 80%) for dedicated transport services to schools and care centres, to also include upper-middle-income families For those unable to take public transport or dedicated transport services, subsidies of up to 50% for taxi services Increase handicapped dependant reliefs by $2,000 from YA2015 Budget

10 In Budget 2014 Additional Support for Singaporean Households The following one-off measures will help Singaporeans, especially lower-income groups and retirees, cope with cost of living: $ GST Voucher Cash: Seniors Bonus of $100 to $250 for Singaporeans aged 55 years and above this year, based on annual value of home and assessable income GST Voucher U-Save Special Payment of $90 to $260 to all HDB households, based on flat type Service and Conservancy Charges Rebates of one to three months for all HDB households, based on flat type Other Tax Measures Enhance Early Turnover Scheme to further incentivise owners to replace their diesel commercial vehicles Extend Carbon Emissions-based Vehicle Scheme by six months Increase excise duties across all liquor categories by 25%, from 21 Feb 2014 Increase excise duties on cigarettes and other manufactured tobacco products by 10%, from 21 Feb 2014 Budget

11 In Budget 2014 Honouring Our Pioneer Generation The Pioneer Generation Package recognises the unique contributions of the generation who built up Singapore. We will provide our Pioneer Generation with additional healthcare benefits covering outpatient treatment, Medisave top-ups and medical insurance for life. About 450,000 Singaporeans will benefit. Outpatient Care Additional 50% off subsidised bills at Specialist Outpatient Clinics and polyclinics Enhanced benefits under CHAS Disability Assistance of $1,200 a year in cash for those with moderate to severe functional disabilities Components come into effect from Sep 2014 Medisave Top-Ups Annual Medisave top-ups, from Jul 2014 More for older cohorts MediShield Life Subsidy Special subsidies for MediShield Life premiums starting from 40% at age 65, rising to 60% at age 90 Effective in 2015 Budget

12 In Budget 2014 Assurance in Their Golden Years When MediShield Life is implemented: For Pioneer Generation members aged 80 and above in 2014 We intend to fully cover their premiums through a combination of premium subsidies and Medisave top-ups. This will be the case even for those currently not covered under MediShield. For younger Pioneer Generation members (e.g. aged 70 in 2014) If they are already on MediShield today, we aim to cover about half of their current premiums. If they are not on MediShield today, they will be brought onto MediShield Life. They can expect to pay less than the current MediShield premiums. The package will benefit Singaporeans who: & Were at least 16 years old in 1965 (i.e. 65 and older in 2014) Became citizens by 31 December 1986 For more information, please go to Budget