GROWTH, BUT NOT AT ALL COSTS
Even as he unveiled a slew of support schemes to nurture a more caring and inclusive society, Mr Wong did not mince words when it came to talking about the importance of economic growth, saying the government “makes no apology for pursuing growth”.
“In past years, some had suggested that Singapore should slow down, and not grow so quickly. Indeed, this was what happened last year – our economy grew by just about 1 per cent,” he noted.
But if the Republic were to experience similarly slow growth for several years in a row, “we will be in trouble”, he added.
“We will have no chance of improving our collective wellbeing. Singaporeans’ living standards will be dented. We will not be able to afford the social services we need. Lower-income workers and families will be hit the hardest.”
To be clear, Mr Wong said Singapore is not gunning for growth at all costs. After all, there is a limit to how fast Singapore can grow due to the tighter constraints it faces in land, labour and carbon.
But growth at an average of 2 to 3 per cent each year over the next decade is possible through focusing on productivity and innovation, he said.
To that end, he announced various measures to attract high-quality and high-value investments into Singapore, including a new Refundable Investment Credit, a tax credit with a refundable cash feature.
This will support high-value and substantive economic activities, including the setting up or expansion of manufacturing facilities, new innovation and research and development activities and activities that support the economy’s green transition.
He also announced significant investments to boost important sectors in Singapore’s economy, including over S$1 billion into artificial intelligence talent and industry development.