Whenever a large-scale government budget is set, the economy of that country and international trade partners of that economy are affected. This is especially true of Singapore, an anchor of the at-large Asian continental economy and one of the most prosperous economies in the world. The country's GDP rose 3.7% last year, marking a significant increase in growth rate in a country known for luxury items, advanced trade and tech-savvy consumers.
The new budget will affect different economic players in different ways depending on what resources they need and what consumers they seek. This is perhaps especially true for retail, one of the most direct-to-consumer industries in Singapore and beyond. Fortunately for retailers, there is always opportunity in any major economic change, especially one in which revenues are set to move safely en masse from government to the private sector. Singapore's 2014 budget is no different.
Here are five impacts to expect from the 2014 budget and how retailers can capitalize on them.
#1: Singapore is officially poised to become the world's leading business location.
Whenever a budget is set, the entities dependent on that budget take on a more certain outlook and forecast. With an eye toward the future, Singapore consumers and companies are now the beneficiaries of a locked budget with specified expenditures. But it's not just the certainty of a set budget that has made this year's spending outline so powerful in the context of Singaporean advancement. Singapore's new budget is highly diverse, benefitting a strong cross-section of private and public sector causes ranging from education to housing to healthcare, labor, defense and more. Even in the context of business, the budget makes Singapore more attractive for both SMEs and MNCs with credit and finance measures that benefit business as a whole rather than promoting just one element of industry.
How to capitalize on certainty: Take advantage of the budget items that have come down the pipeline, but also plan ways to leverage other advantages in conjunction with the new budget. This is the time to invest in your company because Singapore is on its way to a more prosperous state at an extremely rapid pace. One of the major strengths of the budget in the context of business is that it proactively readies companies to take advantage of opportunities. The only way to remain unprepared is with self-hindering measures that overlook key investments in technology, infrastructure or labor. Avoid this fate. Prepare to invest and invest intelligently.
Singapore is about to boom- again.
#2: Internationalization and foreign investment have been made a priority, leaving the door wide open for MNCs to invest.
Singapore's 2013 budget was $57.15 billion. That number will grow to $59.51 billion for 2014, an increase of just more than 4%. That number may not be a jaw-dropper, but it is impressive enough to suggest that Singapore is in line for significant growth.
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