Monday 21 February 2022

Singapore Budget 2022

I see an enthusiastic guy being rejected by another. Is it me or am I just reading too much into this picture? Either the news editor didn't vet properly or he just thought this was nothing unusual. In any case, I postulate that poor DPM wasn't expecting such a reaction from his successor (nervousness perhaps?).

Finance Minister, Lawrence Wong, unveiled the slew of many measures in his maiden speech to combat rising costs of living and maintain economic competitiveness. Here's what I thought the impact would be on me.

1) The big one has to be GST although it's slightly cushioned by the implementation till 2023. This means that everyone has the chance to lock in big item purchases for the rest of the year. What's unavoidable would be recurring expenses like dining and petrol which take up the bulk of my spending. Since GST is applicable to all, it's a fair way to help improve tax collections.

2) The Basic Retirement Sum would progressively increase by 3.5% for 5 years. While it's not going to affect me, it's actually quite a sizable amount to be attained for those who have not reached. My wife is in that situation and I'm thinking how to help.

3) The income, property and luxury car tax are negligible. I'm relieved that the bracketed range for heavier tax imposition are mainly for the top income earners. However, I do get the feeling that further fine tuning is planned in the coming years to lower the threshold.

While my household and children do get a bit of handout, the amount is not much as we are considered middle income. The other budget measures relate to business challenges so I shall think about it when in office. For now, the budget looks evenly distributed and the government has done the smart thing to steer the Singapore boat gently in an open ocean fraught with impending interest rate rise and inflation. At least for me, it buys time to focus on improving investment returns, reallocate funds and seize good opportunities.

Tip: The Federalist Bourbon Barrel Zinfandel 2017, strong oak perfume, caramel and juicy medium body

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