Singapore looks to leave behind their worst recession ever

Amidst the global economic disaster, Singapore, who has been in its deepest recession since they achieved nationhood, has cut corporate taxes for the second time in three years and they say they will tap into their reserves to fun record spending

The country is going to reduce the maximum tax rate payable by companies by 1%. Where it was 18% it is now 17%

Tharman Shanmurgaratnam, Singapore’s Finance Minister, made this announcement in a budget dress on Friday. The country will spend US$13.7 billion on property and personal tax rebates, as well as cash handouts to help businesses and workers. They will use $5 billion of their national reserves.

Singapore claimed that their economy may have experienced a 5% hit this year.

“A lot of help is extended to companies to keep jobs and the tax cut makes Singapore more competitive in this difficult period,” said Alvin Liew, an economist working for Standard Chartered Plc in Singapre. “It’s a budge to help cope with the recession, not exit it.”

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