Singapore (VNA) – Singapore is focusing on boosting its economy thisyear, which is facing a lot of difficulties.

According to Singaporean Minister of Finance Heng Swee Keat, the economyexpanded by two percent in 2016, the slowest growth since 2009 when the economywas hit by a global financial crisis. It is forecast to grow from one to threepercent in 2017.

Therefore, this year the budget will be focused on short-term challenges, medium-termrestructuring plans and social support solutions for the city nation’s ageingpopulation, he said.

The ministry stressed that ministries and agencies will face two percent budgetcuts this year, adding that it does not mean the government will cut spending.Rather, financial sources will be prudently allocated with significant projectsprioritised, he said.

Based on recommendations from the Committee on the Future Economy (CFE), thisyear’s budget looks ahead by earmarking 2.4 billion SGD (1.7 billion USD) toroll out a four-year scheme to support the economy’s response to globalchanges. This is in addition to industry-level transformation initiativestotaling 4.5 billion SGD (3.2 billion USD), which was funded by last year’sbudget.

Heng said the country will set aside 600 million SGD (425.3 million USD) toestablish a fund helping domestic enterprises branch out in foreign markets as thegovernment hopes to help Singaporeans and companies tap overseas opportunities.
Meanwhile, 700 million SGD (496 million USD) will be spent on public infrastructureto improve transportation and upgrade sport facilities.

Some 1.4 billion SGD (992 million USD) will be used to help firms and workersas well as individuals, families and disadvantaged groups.

Regarding long-term strategies, the CFE submitted to the Prime Minister sevenstrategies to flesh out the economic goals, including deepening and diversifyinginternational connections, acquiring and utilising intensive skills,strengthening enterprise capabilities to innovate, scale up, building strongdigital capabilities, developing a vibrant and connected city, developing andimplementing industry transformation maps and building partnerships for growthand innovation.

It suggested the Government promote trade and investment cooperation and cuttariffs and non-tariff barriers through free trade blocs such as the ASEANEconomic Community and free trade pacts like the Regional ComprehensiveEconomic Partnership. It also called for connectivity between domesticuniversities and firms with foreign partners via the Global Innovation Alliance.

Development routes for each industry need to be adjusted to match each branch’sdemands, it said.-VNA