David Low
CEO
Futuristic Store Fixtures Pte Ltd

The year of Tiger looks promising with Singapore fast crawling out of the economic doldrums. However, we have to be cautious with every step for there are potential pitfalls stemming from a faster than expected recovery. Following recommendations put forth by the Economic Strategies Committee, I hope to see greater preparations for recovery, for the road ahead is ironically certain of uncertainties.

Four elements I hope to see reinforced in the Tiger budget:

1) Strengthen businesses especially SMEs. An extension of the Jobs Credit Scheme till end of this year instead of mid year will surely add fiscal muscle for companies to better position themselves for post crisis opportunities in FY2010. In addition, a further reduction of corporate tax by one per cent spread over two years will encourage foreign investments, and their cashflow injections could fill the gaps from companies that underperformed and are therefore forced to close down.

2) Budget for lower income citizens. With inevitable economic restructuring and potentially an inflation in the near term, we have to ensure our lower income group is acclimatised progressively to prevent any social problems that will only impede growth. A Budget allocation expedited in phases to help alleviate financial burdens will see this group through recovery while they build on their skills with governmental programmes.

3) Education hub. In line with driving Singapore to be a service oriented economic model, we will have to continually invest in education to elevate Singapore to a higher scale in the education arena worldwide, focusing not only on scholastic achievements but also creating opportunities to develop specialty fields in technology, design, arts and music. This will nurture Singaporeans to better appreciate the softer side of finery and at the same time, attract foreign talent to come ashore, thereby building up a pool of special talent to drive Singapore up the value chain.

4) Stimulate domestic demand and consumer dollars. Lower personal income tax to provide greater disposable income for spending.

David Leong
Managing Director
PeopleWorldwide Consulting Pte Ltd

Against the backdrop of a growing economy albeit a slower one, we should make 2010's budget neutral and focus on building on structural and long term measures to ensure the sustainability of our growth engines. There should be certain conservatism in fiscal and monetary policies. As we turned the corner in 2009, we cannot afford the quick-fix rescue packages which were generally broad-based relief type measures to save businesses and jobs.

With disproportionate growth and with a Gini coefficient, which is used to indicate income inequality, remaining persistently high, Workfare's continued roll-out is important to help supplement the income of low-wage workers. The formula should be tweaked to put more money in the hands of the workers so that common staples and living expenses can remain sanely affordable to the low-wage workers. Inflationary pressure is likely to rise for food commodity and oil and this will exceed any marginal increase in salary for these workers.

The Government should look at boosting businesses with new measures like providing tax holidays for new business start-ups for a longer period. To attract offshore risk capital to Singapore to support the entrepreneurial eco-system, the Government should consider providing the risk capital with fixed years of tax holidays so that their risk value will drop. This will gravitate risk capital from the region to Singapore. Investments in the research and developments or green initiatives should receive longer period of tax holiday.

Singapore can differentiate itself by introducing bold fiscal measures to boost investments and increase market liquidity.