Societal Issue
Title: Budget 2007: Poised for the future
Name: Ornan Wei
Reference: http://www.channelnewsasia.com/cgi-bin/search/search_7days.pl?status=&search=GST&id=259308

Although, there is a rise in GST, the majority of Singaporeans will get back in various ways at least four years’ worth of the extra GST they will pay, with the poor and elderly receiving the most. The advantage of the rise in the GST provides the government with more funds to spend on social needs. In twenty years time, Singapore will be expecting to have 6.5million people living in the country. Hence, there is a need for future development plans for housing, recreation and transport. The disadvantage is that the top earners would have to pay more. Since, they earn a lot; they will not benefit much in the increase of GST. Instead they have to pay more for the goods they purchase.

In my opinion the rise in GST was a fair one. The poor and elderly will be able to have better lives as funds are used to support old folk homes and poor income family with young children will receive 90% subsidy for kindergarten fees and more money for childcare centers. In addition, government funds will used for social purposes. For examples, to build a stronger arm forces to protect our country, canter to the needy, etc. Middle-income earners are able to benefits from the reduction of road tax, rebates in utilities bill service and conservancy charges, rentals and maid levy. Since, top earners are able to support themselves well; an increase in GST will only affect them a little.

Those who feel frustrated about the amendments made do not worry. Singapore’s government will ensure that everyone’s well being will be taken care of.

Next I will touch on wage boost for lower-income group. This will boost the earning of about 438,000 people.
Parts of the additional income will go to the worker’s CPF accounts. This is meant to support them after they retire from work. I believed that most help will benefit older workers who are earning a monthly salary of one thousand dollars or less. They get workfare of up to $1200 a year, both in cash and into their CPF accounts. The CPF system is also being changed to help low-income workers. After the change, they will be paying less into their CPF accounts and give workers more cash to support themselves. This not only benefits them but also employers to hire such workers, increasing the number of people being employed. Hence, increasing foreign companies to invest in Singapore.

The government also reduces Singapore’s corporate tax from 20 to 18 percent to attract more global companies. The reduction will increase workers’ CPF savings except those over 35 years old and will make Singapore one of the most competitive locations in the world for small and medium size enterprises and start up for new business.

In conclusion, whether a not we benefit from the amendments made, we just have to abide to it. These changes are for the country’s future. Every decision made by the government goes through series of stringent test before it is being pass down.