Singapore Prime Minister, Heng Swee Keat, stated that the plan is to invest around 1 billion Singapore dollars (3.31 billion Malaysian ringgit) to establish a new semiconductor research and development center, which will provide "excellent tools for researchers and industry partners" to promote innovation.
In his first budget speech as Prime Minister on the 18th, Heng Swee Keat noted that the world's leading tech companies hope to increase their operations in Singapore, including in emerging fields such as AI and quantum computing.
He also promised that Singapore will invest an additional 5 billion Singapore dollars (16.55 billion Malaysian ringgit) into the development of Changi International Airport, to enhance the growth and development of Singapore's aviation industry.
Heng Swee Keat stated that significant investments in energy and infrastructure are necessary for Singapore, and announced an additional 5 billion Singapore dollars for the future energy fund. In last year's budget speech, Heng Swee Keat mentioned that Singapore would allocate 5 billion Singapore dollars to invest in clean energy technology to achieve the goal of net zero emissions by 2050.
Speaking on nuclear energy, Heng said: "We will further systematically build capabilities in this field."
He also announced that the government would double coastal and flood protection funds, adding 5 billion Singapore dollars as part of measures against climate change. With global warming, sea levels could rise by 1 meter by 2100, combined with increased storm surges, making one-third of Singapore susceptible to coastal flooding.
Additionally, the Singapore government will establish a 1 billion Singapore dollar private credit fund to provide more financing options for fast-growing local enterprises.
In order to revitalize the stock market, the Singapore government also proposed tax incentives for companies investing heavily in Singapore stocks or seeking to list on the Singapore Exchange. Heng stated: "There is feedback suggesting that the Singapore Exchange lacks appeal, even for enterprises focused on Singapore and Southeast Asia."
The government will offer a 10% to 20% corporate income tax rebate for companies listed and registered locally in Singapore, and a preferential tax rate of 5% for fund managers entering the Singapore market for listing and fundraising. Tax exemptions will also be offered to fund managers who invest more than 30% of managed assets in Singapore-listed stocks.