The Singaporean Budget will soon be released for 2021 and the Business Times asked us to weigh in our thoughts.
Singapore’s Budget 2021 will be presented in Parliament on February 16, soon after the Chinese New Year holidays.
In 2020, as Covid-19 forced almost an economic shutdown in the earlier months of the pandemic, Singapore saw an unprecedented four Budgets and two ministerial statements as the government disbursed rounds of support measures for afflicted industries, businesses and individuals. Close to S$100 billion was allocated for the Covid-19 aid packages, with up to S$52 billion drawn from the reserves. For the full year, the economy shrank a record 5.8%.
The economic outlook has since improved but remains highly uncertain. For 2021, “if the trajectory of economic recovery is on track, then we will have a more ‘traditional’ Budget year”, Deputy Prime Minister Heng Swee Keat has said. “But if the situation takes a turn for the worse, we are ready to respond and adapt.”
Following last year’s extensive support, the 2021 Budget is expected to be more targeted and measured, likely focused on the sectors that remain hard hit by the pandemic.
Other issues that may be addressed in the Budget include long standing themes such as encouraging digital adoption, as well as how businesses can transform and thrive in a post-Covid world.
Here are some thoughts from Swag EV’s CEO – Janson Chen on the upcoming budget presentation.
What should be the focus of Singapore’s Budget 2021? Is there any issue in particular you wish to see addressed?
“While last year’s budget was encouraging for the electric vehicles (EV) space in Singapore, we need to take even greater strides towards greener transportation options in 2021. To make EVs a reality on our roads, two key parts need to converge. A key first step would be to drive wider EV adoption. To encourage Singaporeans to make the switch from ICE vehicles, we need to incentivise them through subsides. Secondly, creating a conducive ecosystem for EV players to develop will be crucial. The government can to help steer this direction and look at offering tax incentives to manufacturers to provide funding to help EV start-ups develop innovative new solutions, powered by new technologies, that will put Singapore on the world map.”
Thanks for the Business Times Singapore, for featuring us.