Singapore is planning to raise taxes for buyers of higher-value properties and luxury vehicles, as it tackles a growing wealth gap brought on by the arrival of rich families.
The city-state is also planning to increase levies on tobacco in an attempt to boost income and reduce inequality, Singaporean Minister of Finance Lawrence Wong (黃循財) said in a budget speech on Tuesday.
The ruling party, which faces growing healthcare and housing costs, is fighting hard to raise revenue. Singapore’s infrastructure and stability have attracted a growing number of ultra-wealthy individuals, contributing to a spike in costs for everything from luxury vehicles to golf club memberships and condominiums.
Photo: Bloomberg
Homes valued S$1.5 million to S$3 million (US$1.12 million to US$2.25 million) would be taxed 1 percentage point higher at 5 percent. Homes valued more than S$3 million would be taxed 2 percentage points higher at 6 percent.
The changes are to apply to all properties acquired from yesterday, Wong said.
The move is expected to generate an additional S$500 million in revenue per year.
Even with the hikes, buyers of high-end real estate might not be deterred, OrangeTee & Tie (橙易產業) senior vice president of research and analytics Christine Sun (孫燕清) said.
“Properties in the upper tier may not see a major impact as wealthy buyers are not likely to be deterred by the additional” tax, Sun said. “Properties with good product attributes and location will continue to draw buying interest.”
Singapore was expected to have an influx of about 2,800 high-net-worth individuals last year, residence and citizenship planning provider Henley & Partners said.
The firm estimates that 249,800 residents there have a net worth of at least US$1 million, making it the fifth-wealthiest city on Earth.
Singaporean home sales last month climbed to a four-month high, helped by a new project launch that highlighted residents’ pent-up demand after supply dwindled late last year.
Sales of new privately owned apartments climbed to 391 last month, the Singaporean Urban Redevelopment Authority said yesterday.
That was more than double the previous month, when transactions fell to a 14-year low of 170 as a supply crunch kept buyers at bay.
Last month’s sales were healthy despite high interest rates and curbs on mortgage borrowing implemented in September last year, Sun said.
That underscored pent-up demand for housing units, especially in the suburbs where supply remains tight, she said.
SEMICONDUCTORS: The firm has already completed one fab, which is to begin mass producing 2-nanomater chips next year, while two others are under construction Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, plans to begin construction of its fourth and fifth wafer fabs in Kaohsiung next year, targeting the development of high-end processes. The two facilities — P4 and P5 — are part of TSMC’s production expansion program, which aims to build five fabs in Kaohsiung. TSMC facility division vice president Arthur Chuang (莊子壽) on Thursday said that the five facilities are expected to create 8,000 jobs. To respond to the fast-changing global semiconductor industry and escalating international competition, TSMC said it has to keep growing by expanding its production footprints. The P4 and P5
Printed circuit board (PCB) maker Global Brands Manufacture Ltd (精成科技) is to fully acquire Japanese peer Lincstech Co for about NT$8.4 billion (US$256.9 million) as the company aims to add high-end PCBs to its PC-centric product lineups. The company also expects the deal to help expand its manufacturing sites in Southeast Asia, as local firms diversify to mitigate geopolitical risks. “The acquisition will mean an important step for the company to further expand its presence in Southeast Asia and globally,” Global Brands Manufacture chief financial officer Weng Chia-yu (翁家玉) said at a news conference in Taipei yesterday. The company has set up manufacturing
DOWNFALL: The Singapore-based oil magnate Lim Oon Kuin was accused of hiding US$800 million in losses and leaving 20 banks with substantial liabilities Former tycoon Lim Oon Kuin (林恩強) has been declared bankrupt in Singapore, following the collapse of his oil trading empire. The name of the founder of Hin Leong Trading Pte Ltd (興隆貿易) and his children Lim Huey Ching (林慧清) and Lim Chee Meng (林志朋) were listed as having been issued a bankruptcy order on Dec. 19, the government gazette showed. The younger Lims were directors at the company. Leow Quek Shiong and Seah Roh Lin of BDO Advisory Pte Ltd are the trustees, according to the gazette. At its peak, Hin Leong traded a range of oil products, made lubricants and operated loading
The growing popularity of Chinese sport utility vehicles and pickup trucks has shaken up Mexico’s luxury car market, hitting sales of traditionally dominant brands such as Mercedes-Benz and BMW. Mexicans are increasingly switching from traditionally dominant sedans to Chinese vehicles due to a combination of comfort, technology and price, industry experts say. It is no small feat in a country home to factories of foreign brands such as Audi and BMW, and where until a few years ago imported Chinese cars were stigmatized, as in other parts of the world. The high-end segment of the market registered a sales drop
RSS