Singapore's expected tax increase to fund Fintech and new economic sectors: Economist
Singapore may be looking at tax increases to fund new economic growth sectors, such as fintech, said Mahamoud Islam, Senior Economist for Asia at Euler Hermes.
Islam said: “With its market having an ageing population, Singapore will be doing the right thing in increasing taxes.
“Singapore is also a market that has targeted investment in new economic sectors such as Fintech, and this will need ways to be funded. One of the ways is to increase taxes as this will generate the necessary funds that can be redirected to these new sectors of growth,” he told WFTV.
The economic sense out of such policies is that Singapore is looking at consolidating its Fintech sector, whereas Euler Hermes determined that Blockchain would be one of the growth sectors of the economy.
He further explained that with the plans to improve the fintech sector among others, tax policies would be a way to get funds to pump in those sectors that would create new jobs and expand the economy altogether.
“This is how the country will also have a more balanced economy,” said Islam who added the fact that Singapore has adopted more prudent policies, which is a key characteristic to the Asean countries, there will be an increase in investor’s confidence in the country.
“Such prudent policies are a very good step since they are predetermined policies that are positive for investors.
“One of the reasons why Singapore is still attracting investors is due to such policies in place. They have a strong industrial policy that improves the position country’s economy in the value chain.
“Singapore’s macroeconomic policies altogether reinforces the trust of investors in the country as a key hub for trade and for financing activities,” said Islam.