MINISTRY OF FINANCE

The vision of Singapore as a City of Excellence and Society of Distinction can only be realized through good public services and enhanced economic and social development. The private sector must complement public sector programmes and be encouraged to take the lead in economic development.

BUDGET DIVISION

The Programme and Performance Budgeting System now in use in the Government will be improved to provide better allocation, management and control of the financial and manpower resources of Government.

Productivity and efficiency of Government operations will be increased so that new or expanded services may be provided with minimum rise in operating costs and manpower levels. Organizational structures and work procedures will be reviewed and improved. The National Computer Board will step up the planned computerization of Government operations. Computerized management information systems will be developed for all Ministries and departments. Proven high technology systems will be extensively used in the public sector in keeping with the vision of Singapore as a centre of high technology.

REVENUE DIVISION

Monetary policy will be geared towards maintaining confidence in the Singapore dollar and supporting non-inflationary economic growth.

The financial sector will be encouraged to innovate further. A futures exchange has recently been established and fiscal incentives for loan syndications, futures trading and fund management given. The promotion of fee-based financial services will be the next stage in the development of Singapore as an international financial centre.

Greater efficiency and better service to the public will be achieved through automation of banking operations. The automatic teller machine network of commercial banks and the Post Office Savings Bank will be extended. Electronic fund transfers and telephone banking will be promoted as steps towards a cashless society.

Financial and other institutions and companies will continue to be closely supervised by the regulatory authorities. The Registry of Companies and Businesses has been placed under the Ministry of Finance and a new Commercial Affairs Investigation Department has been established under the Ministry. These measures will help to maintain high standards of integrity in the corporate sector and safeguard the interests of the public.

Taxation policy will be directed towards developing a strong, internationally competitive and dynamic Singapore economy. Steady economic growth and stringent control on recurrent Government expenditure through higher productivity and efficiency should provide sufficient funds for infrastructural development without major new taxes or significant change to existing tax rates. Efforts will be made to ensure that the overall burden of taxation is not onerous. Wherever possible the tax structure will be simplified. Incentives will continue to be provided to encourage industries to upgrade, restructure, diversify and adapt to the changing world economic environment.

PUBLIC SERVICE DIVISION

The public sector must be staffed by properly qualified, skilled and highly motivated men and women to provide the level and type of service that will be required and expected. In particular, a core of officers of exceptional ability, integrity and dedication must be maintained.to lead the effort. To guard against a deterioration in the quality of the staff in the public services, it is important to ensure that public sector employees are adequately remunerated. Salaries and other conditions of employment in the public service will therefore be regularly reviewed to be competitive with those in the private sector. Priority will be placed on staff welfare and training in order to enhance morale and productivity. Training programmes will be reviewed so that they are relevant and help officers achieve their full potential.

DR TONY TAN KENG YAM Minister for Finance