Page 5 - RSM Budget 2022 Highlights

Advance the Green Initiatives

Countries were urged during the 2021 UN Climate Change Conference in Glasgow to achieve net zero emissions by

or around the middle of the century, to keep alive the ambition of limiting global warming to 1.5°C above pre-
industrial levels.

Singapore is fully committed to do our part in the global movement to tackle climate change. In order to achieve net
zero emissions by around mid-century, businesses have to take actions now to moderate their carbon emissions.
With this in mind, the Government proposes to increase carbon tax progressively. It will be $25 per tonne in 2024
and 2025 (from the present $5 per tonne), raising to $45 per tonne in the subsequent two years and with a view to
reaching $50 to $80 per tonne by 2030.

To support firms that are in emissions-intensive and trade-exposed sectors, the Government will design a
transition framework for implementation in 2024. In many countries with carbon taxes, existing companies are
provided with allowances for a share of their emissions. For the design of our framework, the allowances will be
determined based on efficiency standards and decarbonisation targets. Also from 2024, businesses may use high-
quality international carbon credits to offset up to 5% of their taxable emissions, in lieu of paying carbon tax.

The Government also aims to issue $35 billion of green bonds by 2030 to fund public sector green infrastructure
projects.

Singapore aims to be a car-lite city. It is targeting to phase out internal combustion engine vehicles by 2040. The
most promising clean energy option for passenger vehicles is electric vehicles. The Government commits to
accelerate the building of more charging points to be located closer to our homes. This hopefully will entice
consumers to adopt electric vehicles sooner than later.

Renew and Strengthen the Social Compact
Singapore will continue to do more and across many fronts in strengthening our social compact.

Companies that employ foreign workers will be required to pay all their local employees at least the Local Qualifying
Salary, currently set at $1,400 per month, to uplift lower-wage workers. The Progressive Wage Credit Scheme will
be introduced to provide transitional support for businesses who will be faced with higher manpower costs.

Next, the Government will enhance the retirement adequacy of Singaporeans by increasing the employer and
employee CPF contribution rates for workers aged between 55 and 70.

Not forgetting the children, the Government is committed to ensure every Singaporean child has been given the
best possible start in life, regardless of his or her family background or circumstances. In this regard, the KidSTART
programme targets to support at least 5,000 children by year 2023. This programme is complemented by the
UPLIFT Community Pilot programme which is aimed at strengthening support for school-going children in
disadvantaged families.

The Government will also focus on the ageing population and significant rise in healthcare costs. The restructuring
of healthcare ecosystem is one option the Government has in mind to centre the healthcare system around the
patient, build closer partnerships between healthcare clusters and community partners and integrate the
healthcare IT systems for the sharing of patient information beyond hospitals to community healthcare providers.
This should enhance quality care and maximise convenience to patients.

In addition, the Enabling Masterplan 2030 will be launched in the later part of this year to further strengthen support
in areas of employment, lifelong learning and respite care for the underprivileged.

In furthering the support for the charity sector and to strengthen the culture of giving, there will be a top-up of $100
million and the Government will support the Tote Board’s Enhanced Fund-Raising Programme until the end of
financial year 2024. Charities can apply to receive dollar-for-dollar matching for eligible donations, up to a cap of
$250,000 per charity every year.

BUDGET 2022 HIGHLIGHTS | 3