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.
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.
STATE SUBSIDIES: The talks over a factory in Dresden have a top end on par with what Japan is offering TSMC and outdo a cap other firms are being offered in Europe Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is in talks to receive German government subsidies for as much as 50 percent of the costs to build a new semiconductor fab in the country, people familiar with the matter said. The government is in ongoing negotiations with TSMC, as well as its partners on the project — Bosch Ltd, NXP Semiconductors NV and Infineon Technologies AG — the people said, asking not to be identified because the deliberations are private. No final decisions have been made and the final subsidy amount could still change. Any state aid must also
South Korea would avoid capitalizing on China’s ban on a US chipmaker, seeing the move by Beijing as an attempt to drive a wedge between Seoul and Washington, a person familiar with the situation said. The South Korean government would not encourage its memorychip firms to grab market share in China lost by Micron Technology Inc, which has been barred for use in critical industries by Beijing on national security grounds, the person said. China is the biggest market for South Korea semiconductor firms Samsung Electronics Co and SK Hynix Inc and home to some of their factories. Their operations in China
GEOPOLITICAL RISKS: The company has a deep collaboration with TSMC, but it is also open to working with Samsung Electronics Co and Intel Corp, Nvidia’s CEO said Nvidia Corp, the world’s biggest artificial intelligence (AI) GPU supplier, yesterday said that it is diversifying its supply chain partners in order to enhance supply chain resilience amid geopolitical tensions. “All of our supply chain is designed for maximum diversity and redundancy so that we can have resilience. Our company is very big and so we have a lot of customers depending on us. And so our supply chain resilience is very important to us. We manufacture in as many places as we can,” Nvidia founder and chief executive officer Jensen Huang (黃仁勳) said in response to a reporter’s question in
POWER FORWARD: The US company’s bullish revenue projection also lifted the shares of Taiwanese chipmaker TSMC and Japanese equipment supplier Advantest Nvidia Corp’s forecast for surging revenue surprised even the most bullish analysts on Wall Street, propelling the chipmaker to the cusp of a US$1 trillion market capitalization and igniting a global jump in stocks linked to artificial intelligence (AI). The Santa Clara, California-based company gained as much as 29 percent in extended US trading, on course for a record high, after saying it expects sales to reach about US$11 billion in the three months ending July. That gain puts Nvidia on track also to rack up the biggest one-day valuation jump in US company history. Nvidia, the biggest supplier of the advanced