Singapore said it will spend S$9 billion ($7 billion) on health care and other benefits for the elderly, while providing companies with more funds to increase efficiency as the economy adjusts to a tighter labor supply.
Singapore Finance Minister Tharman Shanmugaratnam said there’s no need for monetary stimulus in a country with full employment, leaving policy makers reliant on unorthodox tools to prevent asset bubbles.
Singapore intensified efforts to address the island’s income gap in its budget, with measures to boost aid for the poor and curb foreign-worker inflows that signal it’s putting less priority on pursuing high growth rates.
Singapore may run into structural budget deficits in the next decade if it does not raise revenues to meet increases in spending on infrastructure and health care, Finance Minister Tharman Shanmugaratnam said.
Singapore tightened curbs on foreign labor for a fourth straight year and unveiled measures that will raise wage costs for companies through 2015, as the government steps up efforts to increase productivity among businesses.