Tax free interest income could be fertiliser
By Mano Sabnani, Business and Financial Consultant
First published in TODAY
1-2 Mar 2003

A smaller government should allow for lower public sector costs which, in turn, would provide space for further reductions in taxes and charges imposed on businesses, notwithstanding the slower growing economy and constrained revenue collections. It is essential that small businesses be able to operate on low overheads, including bearable rentals and administrative costs.

Mr Lee is right in pushing ahead to re-plant the seeds for a truly entrepreneurial eco-system on this island. The measures in yesterday's Budget, as well as those of the last few years, should lay the base for a hundred thousand entrepreneurial flowers to bloom in due course.

Singaporeans certainly have the ideas. If CPF liberalises the use of savings, in a limited way, for business, it could be the source of water for the entrepreneurial plants to grow.

Yesterday's proposals to allow tax-free repatriation of funds parked overseas, under certain conditions, as well as tax-free interest on domestic savings, could provide the fertiliser needed for healthy plants. The measures add up to an invitation to local entrepreneurs to plant their seeds here and to stay rooted to Singapore as they reap the flowers and fruits of their endeavours.