Live updates: Singapore Budget 2023

Singapore's Deputy Prime Minister and Minister for Finance, Lawrence Wong, is delivering the #SGBudget2023 speech for the Financial Year 2023 in Parliament at 3.30pm.

Stay tuned to this page for key updates as unveiled in the Budget, and to our daily e-Bulletin for the full post-Budget highlights following the statement. 

Most recent updates will appear on top.  

Report by Arina Sofiah and Priya Sunil.

Aligning CPF contribution rates of platform workers and companies

The CPF contribution rates of platform workers and companies will be aligned with those of employees and employers over a period of five years. As take-home pays will be affected, CPF Transition Support will be provided in the first four years after implementation.  

Next, the CPF contribution rates of senior workers will be increased and their minimum CPF monthly payout will be boosted under the Retirement Sum Scheme, to S$350 a month. 

Finally, middle-income Singaporeans will see the CPF monthly salary ceiling being raised from S$6,000 to S$8,000 in 2026. The increases will be phased in over 4 years, starting from this year, to allow employers and employees to adjust to the changes.

Doubling of paternity leave from 2024

In one of the biggest announcements made today, from 1 January 2024 onwards, the number of weeks of Government-paid paternity leave will be increased from two weeks, to four weeks. The additional two weeks will be on a voluntary basis.

There will also be some adjustments to the Working Mother’s Child Relief to provide more support for eligible lower- to middle-income working mothers:

• First child:
  • From 14 February to 31 December 2023: 15% of the mother's earned income
  • From 1 January: S$8,000
• Second child:
  • From 14 February to 31 December 2023: 20% of the mother's earned income
  • From 1 January: S$10,000
• Third child:
  • From 14 February to 31 December 2023: 25% of the mother's earned income
  • From 1 January: S$12,000

There will also be an increase in the unpaid infant care leave from six to 12 days per year for each parent.

Housing support for young Singaporeans

Specific groups of first-timer applicants who intend to buy a BTO flat or a resale flat will get more support. Families with children and young married couples aged 40 years old and below, who are buying their first home, will be given an additional ballot chance for their BTO flat applications. 

The CPF Housing Grant will also be increased by S$30,000 for eligible first-timer families purchasing four-room or smaller resale flats, and by S$10,000 for those purchasing five-room or large flats. Eligible first-timer families purchasing resale flats will benefit from this increased CPF Housing Grant with immediate effect.

This additional grant amount will be credited into their CPF account from April 2023 onwards.

Introducing the Uplifting Employment Credit

Minister Wong shared that a new Uplifting Employment Credit will be introduced in the form of a time-limited wage offset, in a move to encourage firms to employ ex-offenders.

At the same time, the Enabling Employment Credit will be enhanced to support employers to hire persons with disabilities.

Next, senior workers who wish to continue working will also be supported via the extension of the Senior Employment Credit and Part-time Re-employment Grant.

All in all, the Minister shared that the increased Government’s co-funding share for Progressive Wage Credit Scheme (PWCS) support will be maintained this year. The PWCS fund will be topped up by S$2.4bn to continue providing transitional support for businesses.

More on this will be shared at the Ministry of Manpower's Committee of Supply Debate.

Translating training into good employment outcomes

To ensure that training translates into good employment outcomes, the Government will appoint and equip Jobs-Skills Integrators who will:

• Engage enterprises to understand the manpower and skills gaps in the sector,
• Work with training providers to update existing training programmes, or develop new ones, and
• Work with employment facilitation agencies, industry partners and unions to ensure that training translates into better employment and earnings prospects.

More on this will be shared at the Ministry of Education's Committee of Supply Debate.

Enhanced tax deductions/allowances

Under the Enterprise Innovation Scheme, enhanced tax deductions/allowances will be provided to businesses, with a cash conversion option from YA2024 to YA2028:

• Annual tax deductions/allowances of 400%, each capped at S$400,000 of qualifying expenditure for:
  • Local research and development activities,
  • Registration and Intellectual Property,
  • Acquisition and licensing of qualifying IP Rights, for taxpayers with a revenue less than S$500mn, and
  • Qualifying courses that are aligned with the Skills Frameworks
• Annual tax deductions of 400%, capped at S$50,000 of qualifying expenditure, for Innovation projects carried out with polytechnics, ITE, or other qualified partners.
  • Option to cover 20% of total qualifying expenditure per YA across qualifying activities in lieu of tax deductions/allowances, into cash payout of up to S$20,000.

S$4bn top-up to the Government National Productivity Fund

As part of efforts to ensure Singapore's workforce remains competitive, MOF will top up the Government National Productivity Fund with S$4bn. 

The scope of the fund will be expanded to include investment promotion as a supportable activity. This includes: 

• Supporting companies to build new capabilities 
• Adding greater value to our domestic ecosystems
• Upskilling our workers

GSTV Scheme and Assurance Package updates

Reiterating the support provided to Singaporeans in mitigating the increased costs of living, Minister Wong shared that both the permanent GSTV Scheme and the Assurance Package have been enhanced to support Singaporeans through higher inflation and cushion the impact of the new GST rates. 

Overall, the Assurance Package will be enhanced by S$3bn, totalling S$9.6bn. 

The payouts are part of a S$3bn enhancement to the Assurance Package, now amounting to S$9.6 billion, which was first announced in 2020 to cushion the impact of the GST hike.

Support for Singaporean households:

• CDC vouchers totalling S$300
• U-Save rebates of between S$400-S$760
• S&CC rebates for between 1.5-3.5 months

Support for Singaporean individuals:

• Cash payouts:
  • For individuals aged 21-54: up to S$1,700
  • For individuals aged 55 and above: up to S$2,300
•  MediSave top-ups:
  • Aged 20 and below: S$150
  • Age 55 and above: S$150-S$600
• Child development account top-up: S$400
• Edusave account and PSEA account top-ups: S$300
• A Cost-of-Living Special Payment of up to S$400 for eligible Singaporeans

Enhancements to the Enterprise Financing Scheme

Minister Wong has announced that to help businesses weather immediate challenges of tighter financial conditions and higher energy prices, the Government will extend the current enhancements to the Enterprise Financing Scheme for a year till 31 March 2024 to facilitate access to credit.

The Energy Efficiency Grant will also be extended for a year to continue supporting businesses in the food services, food manufacturing, and retail sectors to invest in energy efficiency.  

Outlook for 2023

To address cost-of-living concerns in response to inflationary pressures, the Government had rolled out three packages totalling over S$3.5bn in 2022 to provide comprehensive support to Singaporeans.

For 2023, the key factor that will shape the country's growth is the global economy, Minister Wong stressed. Based on current indications of global conditions, the Government expects "positive but slower economic growth of 0.5% to 2.5% this year".

"But there are major uncertainties and downside risks to this year’s forecast. We must prepare ourselves for these risks and be ready to respond to them."

Photo / DPM Lawrence Wong's Facebook