Budget 2022: Providing Support for the Financial Services Sector, Businesses and Workers

Qinthara Fasya | 26 February 2022

Singapore raised taxes on wealthier incomes, including real estate and car levies, as part of its 2022 budget, to guarantee that people who make more money pay more. Tax rate increases for high incomes, which would hit the top 1.2 percent of taxpayers, were among the adjustments revealed on Friday. According to Singapore’s finance minister, it is estimated to earn $170 million in additional tax income every year.

“Ideally, we would like to tax the net wealth of individuals,” he stated during his budget statement on Friday. However, implementing such a tax successfully is difficult.” Other countries, he reminded out, confront similar difficulties.

Wong said Friday that Germany, France, and Denmark have stopped taxing people’s net worth, reducing the number of OECD nations that do so from 12 in 1990 to only three in 2020.

This budget address made it clear that Singapore is determined to ensure that it remains the best places in the world for businesses.

Property taxes for non-owner-occupied homes will be hiked from 10% to 20% to 11% to 27% in 2023. By 2024, such percentages will have risen to 12 percent to 36 percent. Luxury autos will face higher levies as well.

For the financial services sector, which has higher salary norms, this will be raised from the current $5,000 to $5,500. The qualifying salaries for older EP applicants, which increase progressively with age, will also be raised in tandem.

For the financial services sector, which has higher salary norms, this will be raised from the current $5,000 to $5,500. The qualifying salaries for older EP applicants, which increase progressively with age, will also be raised in tandem.

Lawrence Wong, Minister for Finance of Singapore

Equinix a company that that specializes in Internet connection and data centers, shares its views with regards to the 2022 Budget Announced last Friday.

We are pleased to see Singapore’s strong commitment to reducing its carbon footprint and achieving its goal of reaching net-zero by or around 2050, as announced in its Budget last Friday.

With more than 240 data centers around the world, Equinix can play a positive role in bringing about a sustainable future. We have the opportunity to enable our customers and partners to scale their digital transformations sustainably. Understanding that, we are taking a leadership role to do what it takes to protect the planet, tackling climate change across our data centers, and within our broader industry. Our 2030 global climate-neutral goal and science-based targets, along with our green data center design innovations, allow us to build and operate resilient, efficient and sustainable data centers around the world. 

In Singapore, all our data centers are certified to meet rigorous environmental and energy management standards. They adopt energy efficient technology and energy savings initiatives such as adaptive control systems, cold/hot aisle containment, etc. In particular, SG5 leverages Equinix’s bespoke and innovative surface cooling technology, known as the Equinix Cooling Array, supporting high density customers whilst reducing water and power consumption needs. Equinix is also a member of Cooling Energy Science and Technology Singapore (CoolestSG) Consortium. 

We’re also elated that the 2022 budget includes allocation for upgrading Singapore’s broadband infrastructure, with additional S$200 million for digital capabilities. Digital infrastructure, coupled with a robust network infrastructure, is the backbone of the digital economy. Trading stocks, paying bills, hosting video calls, and remote working or studying – all of these are made possible by a maze of technologies running on a digital infrastructure. Without it, a digital economy – and even a smart city – would be just a dream.

For more information on the Budget 2022 statement, click here.