Business as Usual in Singapore

Singapore is well and truly on its U-shaped recovery. Even though 3.5 percent of GDP growth for 2022 was narrowed from an earlier projected range of 3 - 4 percent, wage growth in Singapore in 2023 is set to stay robust even as the slowing economy cuts labor demand. Following the significant ease of COVID-19 restrictions, yesteryear saw the country’s labor market attaining pre-pandemic normalcy. Total employment surpassed pre-Covid levels in the third quarter of 2022, making way for a reduction in unemployment rates. All things considered, the business realm in the country is doing a commendable job.

The Deputy Prime Minister and Finance Minister Lawrence Wong presented the 2023 Budget on Feb 14. The 2023 budget signaled that things are back to normal after the pandemic. Total government expenditures for operations and development purposes are set to equal 15.3 percent of GDP, roughly the same level it was before the pandemic. With the threat of slow growth and high inflation over the head, the business realm in the country, especially startups, can still expect some short term support.

Under the Singapore Global Enterprises initiative, the government has allocated S$5 billion to support the growth of local companies in international markets. This endeavor will help Singaporean businesses expand overseas and diversify their revenue streams. In the 2023 budget, the Finance Minister also announced a new S$1 billion support fund to help local enterprises compete globally. The country’s U-shaped recovery is well and truly on. Despite the increase in tax, the cushion for GST and support initiatives will provide businesses with breathing space.