Zetland Analyzes Singapore's Budget Amid US$4.5 Billion Surplus

Hong Kong-based financial consultancy Zetland Group takes an in-depth look at Singapore's budget presented last month, as the city-state announced a billion dollar surplus after earlier deficit forecasts.

Hong Kong (PRWEB) March 26, 2008 -- Singapore's finance minister presented the country's budget last month after announcing a US$4.5 billion surplus, and Zetland Financial Group examines where the money will be spent in a new report.

Finance Minister Tharman Shanmugaratnam told Parliament the government expected to post a surplus of 6.4 billion Singapore dollars (US$4.52 billion) for the fiscal year through March, compared to a projected deficit of S$0.7 billion at the start of the year.

Tharman attributed the surplus to faster than expected economic growth of 7.7 percent last year, and an "exceptionally buoyant" real estate market.

Hong Kong-based Zetland posted a thorough review of Singapore's budget on its comprehensive website, breaking it down into four key components.

According to Zetland, the budget provided a full range of education and training opportunities for people to find and stretch their potential in their post-secondary education, as well as throughout their working years.

Second, it offered incentives for enterprises to create new ideas and products. Third, the budget adjusted tax policies to stay competitive, support the growth of small and medium enterprises (SMEs), encouraged risk-taking, and strengthened Singapore's role as a financial and business hub.

And fourth, according to Zetland, the budget continued to build a resilient community by strengthening the financial security for retirement and helping the less well-off members of society.

However, global economic uncertainty could hamper Singapore's strong fundamentals, said Tharman.

"A sharper than expected decline in the U.S. economy could add to the turmoil in financial markets and deepen the credit crunch that is still unfolding," Tharman said. "This would inevitably spill over to the Asian economies and markets, and our own growth will be impacted."

The report is one of many offered each month by Zetland Financial Group on its website. Zetland provides business and financial consultancy internationally and in the Asia region with an emphasis on operations in China, offering personal service and valuable advice with total confidentiality.

From its base in Hong Kong, the company is in a position to provide clients with the efficiencies and sophisticated infrastructure of one of the most dynamic international cities -- also an integral part of the rapidly growing economy of China.

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