Presented by Mr Tay Woon Teck from RSM, during our Budget Seminar 2016, a joint event between UOB and RSM.

1. Business Advisors to Growing Businesses
While utmost care has been taken to ensure content accuracy at the time of writing, no person should rely on the contents in this presentation without first
obtaining advice from a qualified professional. These presentation slides are issued on the terms and understanding that (1) the author is not responsible for the
results of any actions taken on the basis of information in these slides, nor for any error in or omission from these slides; and (2) the author expressly disclaims all
and any liability and responsibility to any person, whether a reader of these slides or not, in respect of anything, and of the consequences of anything, done, or
omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of these slides. Information contained
herein is proprietary to RSM Risk Advisory Pte Ltd and no part should be reproduced without prior permission and due acknowledgement.
Disclaimer
Post SG50 - New
Insights and New
Horizon
Tay Woon Teck | Partner

2. Business Advisors to Growing Businesses
This seminar may be photographed for
archival purposes. The photos may also
be used for the firm's website, social
media platforms, newsletters and other
marketing collaterals. Please highlight
to the event organiser and speaker
before the session starts should you
wish to be excluded from the photos.

3. Business Advisors to Growing Businesses
Post SG50 – New Challenges
Maslow's Hierarchy
of Needs
1965 2016
Singapore Challenges
Post SG50
Self Actualisation
Less of self actualisation, priority is
survival. Pioneer generation put family
interest above self.
Singaporeans now seek self-fulfilment,
seek personal growth and peak
experiences.
Harder to satisfy all.
Each individual is unique.
Esteem
No education or primary education.
More factory workers in
manufacturing sector.
95% of students progress beyond
secondary schools. More PMET with higher
aspiration and capabilities.
Creating meaningful employment
opportunities for PMET.
Social
Extended family and
kampong spirit.
Nucleus family, social media
and social engineering.
Erosion of family values
and family cohesion.
Safety
Konfrontasi, communist threat
and Vietnam war.
Conventional threats, ISIS and terrorism
and cyber warfare.
Unstable world order, weaker US
leadership, terrorism and cyber
terrorism.
Physiological Fighting childhood mortality.
Care for our elderly, manage chronic
diseases and tackle childhood obesity.
Longer lifespan, more affluent
type of chronic diseases,
expensive healthcare costs.

4. Business Advisors to Growing Businesses
REVIEW OF LAST 5 YEARS BUDGET MEASURES
April 2016
BUDGET 2016 - NEW INSIGHTS AND NEW HORIZON

5. Business Advisors to Growing Businesses
Review of Past 5 Years Budget Themes
Consistent Message – Inclusive Society, Quality Growth, Focus on the Future
2012
An Inclusive
Society, A
Stronger
Singapore
2013
A Better
Singapore:
Quality
Growth, An
Inclusive
Society
2014
Opportunities
for the Future,
Assurance For
our Seniors
2015
Building Our
Future,
Strengthening
Social
Security
2016
Partnering for
the Future

6. Business Advisors to Growing Businesses
Government Spending Over The Last 5 Years
The Singapore
Budget annual
operating deficit has
increased from $3.8
billion in 2012 to
$11.26 billion in
2013. This operating
deficit is funded by
net investment
returns from GIC and
Temasek.
Close to half of total
expenditure goes to
social development.
Social development
spending has
increased from
$22.98 billion in 2012
to $35.76 billion in
2016.
Actual ($) Estimates ($) Growth
In $ Billion 2012 2013 2014 2015 2016
Operating Revenue 55.18 57.15 61.35 64.16 68.44 6%
Total Expenditure (50.11) (52.34) (57.20) (68.41) (73.43) 10%
Primary Surplus/Deficit 5.07 4.81 4.15 (4.25) (4.99)
Special Transfers (8.87) (8.82) (12.83) (10.54) (6.27) -8%
Basic Surplus/Deficit (3.80) (4.01) (8.68) (14.79) (11.26)
Net Investment Returns
Contribution
7.65 7.94 8.55 9.90 14.70 18%
Over Budget Surplus/Deficit 3.85 3.93 (0.13) (4.89) 3.44
Actual ($) Estimates ($) Growth
In $ Billion 2012 2013 2014 2015 2016
Social Development 22.98 24.79 27.76 31.94 35.76 12%
Security & External Relations 15.40 16.09 17.20 18.44 19.83 7%
Economic Development 9.83 9.57 10.15 15.79 15.23 12%
Government Administration 1.91 1.88 2.10 2.24 2.62 8%
50.11 52.34 57.20 68.41 73.43 10%
Social Development 46% 47% 49% 47% 49%
Security & External Relations 31% 31% 30% 27% 27%
Economic Development 20% 18% 18% 23% 21%
Government Administration 4% 4% 4% 3% 4%
100% 100% 100% 100% 100%
Source: Ministry of Finance Budget Book

7. Business Advisors to Growing Businesses
Government Spending Over The Last 5 Years
Special Transfers to
Business has
increased over the
years from $0.37
billion Year 2012 to
close to $4.96 billion
in Year 2015.
This year, our
businesses is
expected to benefit
from special
transfers totalling
$2.21 billion,
representing 35% of
total special
transfers.
In $ Billion 2012 2013 2014 2015 2016
Wage Credit Scheme 0.82 1.76 2.31 0.79
PIC 0.65 0.74 1.50 0.66
Temporary Employment Credit - - 0.69 0.73
PIC Bonus 0.64 0.32 0.45 0.02
SME Cash Grant 0.04 0.03 0.01 0.01
Special Transfers to Businesses 0.37 0.23 2.85 4.96 2.21
Total Special Transfers 8.87 8.82 12.83 10.54 6.27
As a % of Total Special Transfers 4% 3% 22% 47% 35%
Source: Ministry of Finance Budget Book

8. Business Advisors to Growing Businesses
Manpower Planning
Consistent message – policy to put a cap on foreign workers will not change
2012
Reduction in
Dependency
Ratio Ceilings
(DRC) and Man-
Year Entitlement
2013
Increase in
Foreign Worker
Levies;
Reduction in
DRC and
Increase in S
Pass Qualifying
Salary
2014
Increase in
Foreign Worker
Levies for Basic
Skilled (R2) MYE
work permit
holders in the
construction
sector
2015
Defer levy
increases for S
Pass and Work
Permit Holders
for 1 year,
Adjustment to
construction levy
to retain higher
skilled workers,
freeze levy on
mfg sector at
2014 level
2016
Defer levy
increases for
Work Permit
Holders for
Marine and
Process sectors.
Levy increase for
services and
construction
work permit
holders as well
as S Pass

9. Business Advisors to Growing Businesses
Manpower Planning
Rising trend of degree, diploma and professionals in our labour force
participation
Restricted foreign workers growth
Singapore businesses need to rethink their manpower strategy and job
design

10. Business Advisors to Growing Businesses
Measures To Help SME Saw Little Progress In
Productivity Gain and Innovation Growth
Little Progress on Productivity
2012
Increase Funding for
Capability Development
Grants
Enhancements to PIC
Scheme
M&A Scheme
2013
Job Credit Scheme – 3
Years Transition
Support Package (TSP)
PIC Bonus and
Relaxation of
Prescribed Equipment
List under PIC Scheme
12 Initiatives to Help
SME Improve
Productivity
2014
Supporting Innovation
and Skills
Adopting ICT Solutions
To Increase Productivity
Catalysing Investment
in Growth Enterprise
2015
Strengthen Grant
Support For Innovation
Going Beyond Our
Shores
Encourage Scale
2016
Addressing Near
Term Concerns
Industry Transformation
Programme
Supporting our People
through Change

11. Business Advisors to Growing Businesses
Little Progress on Productivity
Outward–oriented sectors showed real productivity growth

12. Business Advisors to Growing Businesses
Tackling Lower Productivity
Launch of a new $4.5 billion Industry Transformation Programme
Transforming
Enterprises
Business Grants Portal
Automation Support Package
Financing and Tax Incentives
to Support Scale – Ups
Support For Internationalisation
Transforming
Industries
National Trade Platform
Leveraging New Technologies
Increasing Outreach Through
Trade Associations and
Chambers
Transforming
through Innovation
Deepening Innovation
Capabilities
Strengthening Innovation and
Enterprise Networks
Jurong Innovation District

13. Business Advisors to Growing Businesses
Tackling Lower Productivity
Supporting Our People Through Change
Investing in Skills
Future
Singapore Skills Framework
SkillsFuture Earn and Learn
Programme
Sectoral Manpower Plans
P-Max
Adapt and Grow
Initiative
Job Matching and Job
Retraining
Lifelong Learning
Endowment Fund
Skills Development Fund
TechSkills
Accelerator
Smart Nation Initiatives
Strengthening our
engineering core
Identify Future Skills and
Future Opportunities

14. Business Advisors to Growing Businesses
All the developed countries, the America, the Europeans are going
through a period of very poor productivity performance. And they
are not sure why, they are not sure what to do about it. We are
doing all the things which the economists say ought to be done in
order to fix it. We haven’t seen the results yet but we are doing
what we believe are the right things……… I think it’s an act of faith
but I think eventually it will show results
Prime Minister Lee Hsien Loong on Singapore’s efforts to restructure the economy and boost productivity

15. Business Advisors to Growing Businesses
QUESTIONS ?

16. Business Advisors to Growing Businesses
THANK YOU FOR
YOUR TIME AND
ATTENTION