'We look forward to measures supporting upskilling programs in niche areas'
When it comes to Singapore’s budget for 2023 — coming out today — rising costs and the tight labour market are agendas to be focused upon, according to one expert.
“Especially in times of global uncertainty,” said Sekhar Garisa, CEO of foundit (previously Monster APAC & ME).
“The economic agenda for achieving this vision today largely rests on the creation of opportunities in newer sectors such as the green industries and travel and tourism.”
In a time of global uncertainty, GDP is expected to grow at a slower rate of 0.5% to 2.5% but economists predict this will not have a significant impact on long-term strategies for Singapore to be a more digital, inclusive, and green economy.
Foundit has noted a 21% growth in hiring demand for green jobs since January 2022. However, these sectors will require niche skills and make upskilling crucial, said Garisa. If upskilling isn’t accounted for, “it could act as a deterrent to growth,” he said.
“Globalization, technological advancement, and demographics are constantly reshaping the fundamental nature of work, and the focus remains on re-skilling and upskilling to stay dynamic,” he said.
“We look forward to measures supporting upskilling programs in niche areas that would enable the youth to secure in-demand jobs and help transform the country into a hub of excellence and talent. We also look forward to the government creating policies toward a green economy leading to new roles in the sector. At the same time, we are hopeful that upskilling programs will be put in place to fulfil the demand for such niche talent."
Refining Singapore’s research and development (R&D) scheme also seems to be high on the wish list for many organisations. EY released a press release calling for consideration of the option of a qualified refundable tax credits for R&D, to allow companies to cash out benefits, and to enhance R&D deductions on overseas R&D activity.
“The existing enhanced tax deduction mechanism reduces the effective tax rate of the company and may not be a helpful tool,” Johanes Candra, Partner, Business Incentives Advisory, Ernst & Young Solutions LLP said.
Allowing companies to cash out benefits up to a cap if they are in a tax-loss position is also recommended, according to Chai Wai Fook, Partner, Tax Services, Ernst & Young Solutions LLP. This has been done in Australia, Canada, Ireland, New Zealand, and the UK.
