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Post Chinese New Year Market, Budget 2015 In Play
Singapore Market Commentary | 27 February 2015
By: Louis Kent Lee
Articles (199) Profile

While most of us were away celebrating Chinese New Year in between bites of barbequed pork and the delightfully deceiving pineapple tarts, the market was actually prepping itself for the second round of results release. Oh, and the budget release.

Released on 23 February, Budget 2015 took a focal point after the long Chinese New Year holidays.

In essence, the budget took on a stance that focused more on investments for the future, on both the nation’s infrastructure and its people.

The new SkillsFuture programme is the government’s endorsement in such stance. Specifically, on the investment in its people.

Each Singaporean aged above 25 will receive $500 worth of credits and get regular top-ups. Such credits can be used for specific courses accredited by the government.

On a company level, the International Growth Scheme supporting a new tax incentive will help provide support to larger companies in their internationalisation efforts.

Singapore-listed companies that are exporting skills and driving to win larger overseas market share would be long-term winners of this scheme.

For real estate investment trusts (REITs), the government has decided to extend the tax concession on REITS for another 5 years.

This is in view to help sustain the growth of Singapore’s REIT’s industry.

So what do we look forward to? Mid cap stocks’ results are released these two weeks in full swing. We’ll be seeing an exciting ride. Buckle your seat belt people.

Louis is a qualified accountant with the ACCA, and is the Research Editor at Shares Investment magazine.

Please click here for more information about this author.


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