Page 12 - index

RESEARCH, ANALYSIS & TRENDS

Five impacts of the

newly set 2014

Singapore Budget to

take note of

(and how retailers can

capitalize on it)

Whenever a large-scale government budget is set, the your company because Singapore is on its way to a
economy of that country and international trade partners more prosperous state at an extremely rapid pace.
of that economy are affected. This is especially true of One of the major strengths of the budget in the context
Singapore, an anchor of the at-large Asian continental of business is that it proactively readies companies to
economy and one of the most prosperous economies in take advantage of opportunities. The only way to re-
the world. The country’s GDP rose 3.7% last year, main unprepared is with self-hindering measures that
marking a significant increase in growth rate in a coun- overlook key investments in technology, infrastructure
try known for luxury items, advanced trade and tech- or labor. Avoid this fate. Prepare to invest and invest
savvy consumers. intelligently.

The new budget will affect different economic players in Singapore is about to boom— again.
different ways depending on what resources they need
and what consumers they seek. This is perhaps espe- #2: Internationalization and foreign investment
cially true for retail, one of the most direct-to-consumer have been made a priority, leaving the door wide
industries in Singapore and beyond. Fortunately for re- open for MNCs to invest.
tailers, there is always opportunity in any major eco- Singapore’s 2013 budget was $57.15 billion. That
nomic change, especially one in which revenues are set number will grow to $59.51 billion for 2014, an in-
to move safely en masse from government to the pri- crease of just more than 4%. That number may not be
vate sector. Singapore’s 2014 budget is no different. a jaw-dropper, but it is impressive enough to suggest
that Singapore is in line for significant growth.
Here are five impacts to expect from the 2014 budget
and how retailers can capitalize on them. At least one area of expansion deals with crossing the
country’s border into international trade opportunities.
#1: Singapore is officially poised to become the The new budget has taken a measure to double the
world’s leading business location. maximum loan quantum to $30m per firm. That invest-
Whenever a budget is set, the entities dependent on ment spells significant outreach on behalf of Singapo-
that budget take on a more certain outlook and forecast. rean vendors, but it also invites partners to enter the
With an eye toward the future, Singapore consumers country and get involved in the action of the country’s
and companies are now the beneficiaries of a locked robust economy. In addition the Global Company Part-
budget with specified expenditures. But it’s not just the nership Programme brings Singapore companies up to
certainty of a set budget that has made this year’s speed on international business strategy and imple-
spending outline so powerful in the context of Singapo- ments new policies and procedures that help them
rean advancement. Singapore’s new budget is highly compete, offering MNCs potential new business part-
diverse, benefitting a strong cross-section of private and ners in trade within the country and beyond. There is
public sector causes ranging from education to housing now also a waiver of withholding tax requirements on
to healthcare, labor, defense and more. Even in the payments made to Singapore government branches, a
context of business, the budget makes Singapore more victory for international companies seeking business
attractive for both SMEs and MNCs with credit and fi- tax breaks.
nance measures that benefit business as a whole rather
than promoting just one element of industry. How to capitalize on budget expansion: If you are
an MNC, open doors in Singapore. Get involved in
How to capitalize on certainty: Take advantage of the government and private business by making partners
budget items that have come down the pipeline, but al- and building alliances to coordinate major business
so plan ways to leverage other advantages in conjunc- campaigns and create social infrastructure that posi-

tion with the new budget. This is the time to invest in tions you to compete. If you are a Singaporean compa-
12 Asian eMarketing April 2014 - Mobile Marketing