Singapore's Upcoming 2023 Budget Proposal and How it Will Impact You

Singapore’s Upcoming 2023 Budget Proposal and How it Will Impact You

Come 14 February 2023, Finance Minister Lawrence Wong will be delivering the annual Budget for Singapore.

Three main themes have been outlined:

1. Navigating a Volatile and Complex World

As Singapore gradually recovers from the pandemic, new challenges await her in an uncertain environment, such as increased geopolitical tensions, slower growth rate, rising inflation and economic disruptions. How can Singapore emerge stronger from the downturn?

2. Strengthening the Social Compact

Singaporeans got to play a more active role and band together to strengthen our social fabric. As the nation gears up for the challenges ahead, the people will need to work hand in hand with the government to bring about more care and concern for one another. Singapore will need to come together as one.

3. Building a Resilient Nation

Being a tiny nation, Singapore is heavily reliant and dependent on her neighbours and the rest of the world. External factors can easily crumple the local economy and bring it to a standstill. For example, our supply chains had been badly disrupted by the pandemic and a Malaysian export ban had resulted in high prices of our poultry. Therefore Singapore must increase her resilience to endure and absorb such external shocks and overcome sudden disruptions.

Rising Costs

Due to global supply disruptions and a resurgence in demand, inflation in Singapore is expected to reach an all-time 14-year high soon.

The Finance Ministry announced in November that the government will allocate an additional S$1.4 billion to offset increased GST cost for most Singaporean households for at least five years in an effort to help the people cope with inflation and the waves of the GST hikes.

The GST has been increased from 7% to 8% on 1 January  2023, and it is slated to be further increased to 9% on 1 January 2024.

How can Singapore businesses cope with the GST increase?

To cut costs and mitigate the effects of the GST hike, Singapore companies should move towards digitalisation and automation so as to improve operational efficiency and reduce wastage.

  1. Automating processes: Automating repetitive and time-consuming tasks can help to reduce labour costs and improve efficiency.
  2. Implementing e-commerce platforms: Many brick and mortar stores have turned to online sales channels to reach a wider customer base and to reduce costs associated with physical storefronts.
  3. Adopting digital marketing strategies: Digital marketing can be more cost-effective and targeted as compared to the traditional methods, which can help businesses reach new customers and increase sales.
  4. Using digital financial tools: Digital financial tools such as online accounting and invoicing software can help businesses to reduce administrative costs and streamline financial processes.

Automated Digital Solutions for Every Business

Any running business will need to handle accounts and manage its human resources. Administrative tasks related to finance and HR can be very time-consuming and mundane. As such, it is important that businesses try to automate these work so that they can achieve maximise utility. Many of the popular software in the market that local SMEs use are designed for businesses in Singapore and are compliant with the laws and regulations.

Xero cloud accounting software’s automated invoice reminders, for instance, reminds clients on payments automatically. This removes the need for you to send them emails manually and ensure you maintain a healthy cashflow.

HReasily, a cloud payroll software automates your payroll process. This frees you from tedious manual salary calculation and filing while staying compliant with IRAS regulations.

Click to explore:

Grow with Digital Solutions

There are many features and benefits that digital solutions provide such as helping companies comply with the GST hike and staying compliant with CPF rate changes. Contact us for a free consultation at 6515 7906 or to discuss how these software solutions can improve your organization today!

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