Tag: Singaporeans

Restriction On Use Of Fitness And Recreation Facilities On Weekends For Security Purposes

The use of fitness and recreation facilities in camps – such as swimming pools and gyms – by National Servicemen (NSmen) should be restricted to allocated time slots on weekdays for security purposes, said Minister for Defence Ng Eng Hen on Monday (Feb 23).

“These camps should only be accessed by authorised personnel to minimise the risk of sabotage or loss of information and equipment which could compromise the safety and security of our soldiers and citizens,” said Dr Ng in a written response to a question from NCMP Lina Chiam.

He added that SAFRA clubhouses were equipped with swimming pools and gyms to support the fitness training of NSmen preparing for their In-Camp Training (ICT). For example, SAFRA EnergyOne gyms offer preparatory training courses, designed by fitness experts, to help NSmen improve their Individual Physical Proficiency Test (IPPT) performance.

The IPPT Preparatory Training (IPT) – for NSmen who need additional help in their IPPT- will also be extended to other venues, such as public parks through the “IPT in the Park” initiative, to provide greater convenience for NSmen, said Dr Ng.

Such initiatives would provide support for NSmen seeking fitness training while ensuring the safety of SAF camps, he added.

Source: www.channelnewsasia.com

February 24, 2015
Elections Department: Registers Of Electors Revised, Open For Public Inspection
The registers of electors have been revised and will be open for public inspection from Feb 24, 2015 to Mar 9, 2015, the Elections Department said in a press release on Monday (Feb 23).

The revised registers contain the names of all qualified electors and may be checked through four channels:
- Online at the Elections Department website
- At community centres or clubs
- At Singapore overseas missions that serve as overseas registration centres
- At the Elections Department, located at 11 Prinsep Link, Singapore 187949
The latter three methods will require the individual’s NRIC or passport.

INCLUSION AND REMOVAL OF NAMES FROM REGISTERS

During the inspection period, a person may submit a claim or objection to include or remove his name from the revised registers of electors.

A claim to update one’s particulars can also be submitted during this period.

These changes can be made via the four methods stated above. Claims and objections submitted online must be done via SingPass.

RESTORATION OF NAMES AND REGISTRATION AS OVERSEAS ELECTOR

Singaporeans whose names were removed from the registers of electors for failing to vote at a previous election may apply to restore their names to the registers.

Overseas Singaporeans, whose names are listed in the registers and who have resided in Singapore for at least 30 days between Feb 1, 2012 and Jan 31, 2015 may register as overseas electors.

Following the revision of the registers, overseas Singaporeans who have been registered earlier as overseas electors will also have to re-register to vote at any one of the designated overseas polling stations.

The registrations can be done through the abovementioned channels. Applications will close with the issuance of the Writ of Election.

OVERSEAS POLLING STATION IN DUBAI

The Consulate-General of the Republic of Singapore in the United Arab Emirates (Dubai) has been designated as an overseas polling station for future elections. This is in addition to the nine overseas polling stations at Singapore’s overseas missions in New York, Washington DC, San Francisco, London, Shanghai, Beijing, Hong Kong, Tokyo and Canberra.

The Elections Department said the overseas polling station in Dubai will facilitate overseas voting and registration for overseas Singaporeans in the Middle East region.

More information about the addresses of registration centres can be found at www.eld.gov.sg.

Source: www.channelnewsasia.com
February 24, 2015
Temasek’s Expected Earnings To Be Added To Government Revenue

With spending expected to be racked up on several fronts, including in healthcare and public transport, Finance Minister Tharman Shanmugaratnam said the Government must take steps now to strengthen future revenue, with one of the first moves being to include the projected earnings of Temasek Holdings in the Net Investment Returns (NIR) framework.

The inclusion of Temasek’s total expected returns — including realised and unrealised capital gains, and not only actual dividends paid to the Government — in its spending budget will “bolster our fiscal resources at a time when we have to fund long-term critical infrastructure and develop the human talent and capabilities to secure our future”, said Mr Tharman.

While the Government will seek to control costs, spending will “inevitably rise”.

“We project overall spending to reach about 19 per cent to 19.5 per cent of gross domestic product on average over the next five years. This is about 1 per cent of GDP higher than the revenues we have today,” added Mr Tharman. “It is, therefore, necessary that we take steps now to strengthen future revenues, to put Singapore on a firm fiscal footing for the rest of this decade.”

Economists say the change will give a significant boost to government coffers — to the tune of at least S$3 billion per year — although at least one said it might lead to Temasek altering its investment approach to a more conservative one.

Before this change, the Government was allowed to spend up to half of the expected long-term real returns on net assets managed by the investment entities of the Monetary Authority of Singapore (MAS) and GIC.

The inclusion of Temasek’s expected returns in the NIR framework was deferred in 2008 because there were no established methodologies for projecting the sum, given its investment approach of taking concentrated stakes and making direct investments. Temasek’s investment strategy was also still evolving then — it began to invest in more geographies and sectors since 2002, said Mr Tharman.

But he said yesterday that the Government is now ready to do so, despite the volatility of Temasek’s equity-only portfolio. He added that it has developed an approach to project its expected long-term returns.

The change to the NIR framework, in addition to the raising of personal income taxes he also announced yesterday, will yield additional revenue equal to about 1 per cent of GDP annually for the Budget over the next five years, said Mr Tharman. Of that, changes to personal income tax rates are expected to raise S$400 million a year.

He added that the higher government spending over the coming years is in three main areas: Expanding healthcare infrastructure and subsidies for MediShield Life premiums; improving public transport (another S$26 billion has been committed over the next five years); and the development of Changi Airport Terminal 5.

On top of these expenditures, there will be other essential spending, such as on enhanced domestic security and the rejuvenation of neighbourhoods, said Mr Tharman.

Commenting on the move, Barclays economist Leong Wai Ho estimated that the inclusion of Temasek’s expected returns would yield at least S$3 billion, in addition to the roughly S$8 billion of investment income the Government is currently netting from the MAS and GIC per year.

DBS economist Irvin Seah said the change will increase the Government’s fiscal sustainability, “especially when social spending is set to rise as the population ages”. But he felt the long-term projection of Temasek’s earnings will not be easy, given the entity’s portfolio, which could encourage it to take a more conservative investment approach in return for greater stability.

Mr Leong noted that Temasek’s average returns over the past five years have been 11 per cent, falling to 9 per cent over the past 10 years and 6 per cent over the past 20. Its portfolio value, he observed, has risen to S$223 billion as of March last year, compared with S$133 billion 10 years ago.

“It is probably not as volatile as people think, because of its diversified basket of investments, both geographically and sectorally,” he said.

Source: www.todayonline.com

February 24, 2015
Singapore Budget 2015: 7 Reasons Why Robin Hood Budget Matters

I tried frantically to keep up with noting down the giveaways as Finance Minister Tharman Shanmugaratnam reeled them off as he announced the Budget 2015.

A new SkillsFuture Credit account for all Singaporean workers aged 25 and above. Top ups to the accounts of children, secondary school students and post-secondary school students. Higher GST vouchers across the board, with a special bonus for seniors.

There were too many to list. I gave up and just listened.

And minutes after Mr Tharman finished the Budget 2015 statement, the first SMS came, from a former colleague.

A Robin Hood Budget, she said.

Here are seven noteworthy things about this year’s Budget.

1. Robin Hood qualities

It takes from the very rich to give to those who are poorer. Without little fanfare but every determination, the Government raised the top marginal tax rate for personal income taxes from 20 to 22 per cent. It will raise $400 million in extra revenue when it kicks in the Year of Assesssment 2017.

It gives a lot to the poor, especially seniors from lower-income jobs in the past, under a new Silver Support bonus that aims to give up to about $750 a quarter a person to the elderly.

2. The 1 per cent gap

Mr Tharman flagged this gap. No, I’m not talking about the much-touted gap between the top 1 per cent earners and the rest, which has gotten so much flak worldwide for fostering inequality.

I’m talking about the 1 percentage point projected gap between long-term revenues and long-term spending. The latter is tipped to go up to 19 to 19.5 per cent of GDP from now, as Singapore opens its coffers to spend on health care, retirees, and on infrastructure and investment in education. The former hovers around 18 to 18.5 per cent of GDP.

How to make up the shortfall of about 1 per cent of GDP?

This is a structural issue that will have resonance beyond this Budget.

3. New spending rule

Mr Tharman has a way to close that 1 per cent gap: Use projected long-term returns from Temasek Holdings.

The Net Investment Return formula framework was implemented in 2009. He said: “Under the framework, the Government is allowed to spend up to 50 per cent of the expected long term real returns on its net assets managed by MAS and GIC.”

Temasek was left out as it was undergoing a major change in investment strategy. Mr Tharman said it was a good time to add Temsek to the mix.

So this Budget is important for signalling the long-term gap in revenue and spending.

It is also significant for using a new framework that allows Singapore to tap a wider pool of money from expected investment returns on its reserves into the future.

“The move will bolster our fiscal resources at a time when we have to fund long-term critical infrastructure and develop the human talent and capabilities to secure our future.”

4. More help for middle-income

Actually, I should qualify the Robin Hood bit. This Budget takes from the rich, to give a lot more to the middle-income, not just the poor.

A 50 per cent personal income tax rebate, capped at $1,000, will benefit mid-income earners most.

The concessionary maid levy is halved to $60. Exam fees are waived for most school students. Child-care subsidies will be improved. Most parents with kids will get fairly large top-ups to the child’s education account, of about $500 per child, regardless of whether the child is in preschool, secondary school or tertiary education.

5. New way of targeting subsidies

A new method to figure out who gets more subsidies and government assistance will be introduced for the Silver Support bonus for retirees. It goes beyond the traditional use of housing type. The Silver Support will still use housing type as a proxy for wealth, giving those in smaller flat types more in the Silver Support bonus. But even those in larger flats, up to five-roomers, will get it.

But it will also take into account past working income of the retiree. It will also look at their household income to gauge what level of support these retirees have.

As the Silver Support kicks in only from the first quarter of 2016 – in just over a year’s time – it isn’t clear how this new system will work out.

But it is a novel, and potentially very useful, way of targeting subsidies. It will also be automatic, using presumably income data from Iras and CPF, and household type data from HDB.

With Singapore going well-down the path of more middle-class welfare subsidies, expect this to be the start of a more refined way of figuring out who deserves what grants and subsidies.

6. Meritocracy of skills, not hierarchy of grades

Mr Tharman and other government ministers have been saying for several years now that Singapore has to go beyond a system where people are valued for their academic credentials, to one where every worker is motivated to excel at what he or she does, and rewarded accordingly.

This Budget puts substance to that dream, with a new SkillsFuture Credit account for every Singaporean aged 25 and above. The Government will give $500 into this account in 2016.

There will be a concerted push to get Singaporean workers and employers to change our culture to one which values people for skills, not their paper qualifications.

A range of new SkillsFuture Awards and Fellowships will be introduced. Think of these as the skills-equivalent of the Public Service Commission’s scholarships for academically bright students.

7. Productivity 2.0

The first round of measures yielded some good results.

Mr Tharman said: “Productivity today is 13 per cent higher than at the start of our restructuring journey in 2009. This is an average growth rate of 2.5 per cent per year. All of this gain was achieved in 2010 (11.6 per cent) and 2011 (2.3 per cent) as we recovered from the recession, and growth has been negligible in the three years since then.”

Next: consolidating measures to focus on innovation and internationalisation. More grants for innovation. Tax breaks for mergers and acquisitions go up to encourage companies to merge and consolidate. The National Research Fund gets a $1 billion boost.

All in, it can be said to be a sensible yet generous Budget, albeit at the expense of the very high-income. It may disappoint those who wanted a big SG50 Bonus to celebrate the nation’s Jubilee. But it does give out a mass hongbao to all Singaporeans, via top-ups to education funds for children and students, and via the new $500 SkillsFuture Credit for workers.

More importantly, it sets Singapore on a clear trajectory – Mr Tharman would call it the path of progressivity – but basically the writing’s on the wall: higher taxes on the rather rich, to give to the poor and the middle-income.

Chua Mui Hoong, Opinion Editor

Source: www.straitstimes.com

February 24, 2015
Singapore Budget 2015 – Winners And Losers

Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam delivered his speech on Budget 2015 on Monday, and there were few surprises.

As expected, he talked about the Silver Support scheme for the low-income elderly, the enhancements to the Central Provident Fund System, handouts in the form of GST vouchers, and more help for SMEs.

Perhaps the biggest surprise was the higher personal income tax rate for top earners.

Here’s a round-up of the key announcements based on the “winners” and “losers”:

Biggest loser: High-income earners

Singapore’s top 5 percent, those who earn at least $160,000, will pay higher personal income tax.

“I will raise the top marginal rate by two percentage points, from 20 per cent to 22 per cent, for the highest income earners, with a chargeable income above $320,000. I will also make smaller adjustments that will raise income tax for the others in the top 5 per cent,” he said.

The higher tax rates will apply starting with income earned in 2016 and on taxes to be paid in 2017. It is expected to raise additional revenue of $400 million a year when it comes into effect.

Loser: Businesses relying on Transition Support Package

Tharman announced that the Wage Credit Scheme will be extended for 2016 and 2017, but level of co-funding will be reduced. He will also extend the CIT rebate for years of assessment 2016 and 2017 at the same rate of 30 per cent of tax payable but up to a lower cap of $20,000 per year of assessment. He will let the Productivity and Innovation Credit (PIC) Bonus expire.

The three schemes make up the Transition Support Package, which is estimated to disburse $7.6 billion over three years.

Loser: Car owners

Tharman announced higher petrol duty rates effective the same day as his speech. The duty rates for premium grade petrol will be increased by $0.20 per litre and internmediate grade petrol by $0.15 per litre.

Tharman noted that petrol duty rates have remained unchanged since 2003, and that with alling oil prices, pump prices after the petrol duty changes would remain lower than the level in the last two years.

Winner: Middle-income households

To help middle-income taxpayers, Tharman announced a personal income tax rebate of 50 per cent, setting the cap at $1,000. It will apply for year of assessment of 2015 (for income earner in 2014).

1.5 million individuals are expected to benefit from the tax rebate, which will cost the government $717 million.

Also, to support middle-income families, the foreign domestic worker concessionary levy will be reduced from $120 per month to $60 per month and extended to households with children aged below 16 from below 12.

Winner: Lower-income households

The quantum for the GST Voucher will be increased by $50 in cash across the board from 2015 onwards. It is expected to benefit 1.4 million Singaporeans.

Winner: CPF members

As proposed by the NTUC and CPF Advisory panel, the government will increase the CPF salary ceiling from $5,000 to $6,000. It is expected to benefit at least 544,000 CPF members.

The contribution rates for workers aged 50 to 55 will be restored to the same level as those for younger workers. Thus, the contribution rates for these workers will go up by two percentage points in 2016 (1 percentage point each from employer and employee).

For workers aged 55 to 60, the rate will go up by 1 percentage point from employers, and for workers aged 60 to 65, it will go up by 0.5 percentage points from employers.

To make the CPF system more progressive, an additional 1 per cent extra interest will be paid on the first $30,000 of CPF balances from age of 55. The change will take effect from the start of next year.

Winner: Low-income elderly

The Silver Support Scheme will be a new feature of Singapore’s social security system, said Tharman.

“It is a permanent scheme for both today’s seniors and those in the future,” he said.

Silver Support will be paid quarterly, similar to Workfare. It will provide a supplement of $300 to $750 every quarter for eligible seniors. The average recipient will get $600 per quarter. All the seniors who qualify will receive the supplements for life, as long as they remain eligible.

The scheme is aimed to support the bottom 20 per cent of Singaporeans aged 65 and above. The assessment will be done automatically, so there will be no need for application. It is estimated to cost about $350 million in the first full year. The Ministry of Manpower is expected to implement it around the first quarter of 2016.

Aside from the scheme, Tharman also said seniors aged 55 and above will get a GST seniors’ bonus in 2015 to help with their daily expenses. It will effectively double the GSTV cash component that they usually receive.

Also, those aged 65 and above and living in HDB flats will get an additional $300 this year.

Winner: Skills upgraders

Tharman announced a SkillsFuture Credit in which each Singaporean 25 years old and above will receive an initial credit of $500 from 2016. Further top-ups will be made at regular intervals. The credits can be used for education and training.

Education and training subsidies for all Singaporeans aged 40 and above will be enhanced to a minimum of 90 per cent of training costs for courses funded by the Ministry of Education and the Workforce Development Agency.

The subsidies will be significant, Tharman pointed out. For example, for a part-time undergraduate course such as a Bachelor of Engineering, the total fees payable by a student will be reduced by 60 per cent, from about $17,000 to $6,800.

Tharman also introduced the SkilsFuture Study Awards and the SkillsFuture Fellowships to develop deep skills and mastery in the growth clusters of the future, as well as the SkillsFuture Leadership Development initiative to encourage companies to groom Singaporeans in leadership roles.

Winner: Families with children

Tharman announced the introduction of a new partner operator (POP) scheme to complement the anchor operator scheme. Parents will benefit from lower fees than these centres currenly charged, Tharman said.

He also said the government will top up the Child Development Accounts of every Singaporean child aged six and below in 2015. Those currently without CDAs can open accounts and receive the top-up. The majority of children will receive $600, he said.

Also, fees for national examinations for Singaporean students in government-funded schools will be waived, saving families and students up to $900 from primary school to pre-university.

Government will also provide a $150 top-up to the Edusave Accounts of Singaporeans students aged 7 to 16 on top of the annual contribution of up to $240. Students above the age of 16 who are still in secondary school will also get the top-up.

Tharman also said the MOE Financial Assistance Scheme will be enhanced and a transport subsidy will cover at least half of students’ transport costs.

Annual grants for school-based financial assistance will also be increased.

Post-Secondary Education Account (PSEA) of Singaporeans aged 17 to 20 will also get a top-up. The majority will receive $500.

Winner: SMEs, start-ups, businesses in expansion mode

Tharman said he would top up the National Research Fund by $1 billion this year to encourage firms to invest in research and development.

To reduce early-stage funding gaps for start-ups, the government will increase the co-investment cap for SPRING’s Startup Enterprise Development Scheme (SEEDS) and Business Angel Scheme.

The government will also pilot a venture debt risk-sharing programme with selected financial institutions to provide high growth companies with an alternative to equity financing and traditional bank loans.

It will also raise the support level for SMEs for all activities under IE Singapore’s grant schemes from 50 per cent to 70 per cent for three years. It is expected to benefit about 700 projects.

For companies venturing overseas, Tharman said he will enhance the Double Tax Deduction for the Internationalisation scheme to cover salaries incurred for Singaporeans posted overseas.

Tharman also introduced a new tax incentive, the International Growth Scheme (IGS), to provide support to meet the needs of larger Singaporean companies in their internationalization efforts. Qualifying companies will enjoy a 10 per cent concessionary tax rate on their incremental income from qualifying activities.

The tax allowance for acquisitions costs will also be increased from 5 per cent to 25 per cent of the value of acquisition. Companies will also be able to claim M&A benefits for acquisitions resulting in at least 20 per cent shareholding in the target company, down from 50 per cent.

Source: https://sg.finance.yahoo.com

February 24, 2015