MINISTRY OF FINANCE

DR RICHARD HU Minister for Finance

Fiscal Policy

The Government's fiscal policies will continue to support investment and economic growth.

The private sector will remain the engine of growth. The public sector will be kept small to limit its claims on financial and manpower resources.

Our tax structure will encourage savings, promote investments and stimulate economic growth. Corporate tax rates will be kept internationally competitive. Tax on individuals will remain broad-based, equitable and geared towards rewarding hard work and entrepreneurship.

We will publish a White Paper on the Government's proposals for a broad-based consumption tax, although actual implementation of the tax will be deferred while the revenue position permits.

Recurrent expenditures will be restrained, to free more resources for investments in infrastructure and education and to improve the quality of life. Public housing will be upgraded. Substantial funds will be allocated for new facilities for the arts, sports and recreation.

Monetary Policy

High economic growth and a tight labour market have generated some inflationary pressures. Our monetary and exchange rate policies will continue to be geared towards containing inflation and maintaining price stability.

Regulatory Policy

The integrity of the financial system is the sine qua non of a financial centre. We aim to maintain high regulatory standards without imposing unnecessary restrictions on financial institutions. Oversight supervision will ensure that prudential standards are upheld and that the interests of the investing public are safeguarded.

Singapore As An International Financial Centre

We will continue to develop Singapore as an international financial and business centre, competitive in providing a wide range of services. Leading international financial institutions will be encouraged to establish themselves here.

Privatisation of Government Enterprises

Privatisation of Government-linked companies in mature industries will continue. Statutory board activities which are primarily commercial in nature will also be privatised. This will be done progressively so as not to disrupt either the companies concerned or the financial and stock markets.

The Civil Service

The Civil Service will continue its drive to become more productive and effective. Management accounting systems should be set up in all ministries by fiscal year 1993. They will help to identify areas of poor performance, inefficiencies and waste.

The Auditor-General has carried out zero-base reviews of ministries to ensure that Government resources are efficiently and effectively deployed. The auditing cycle for all ministries should be completed within 5 years.

A computerised Central Personnel Information System will be installed in the Civil Service for more responsive personnel management. The system will be on-line in three ministries early this year, and fully operational by 1993.

The Civil Service Institute (CSI) will concentrate on the 5-year Public Contact Improvement Programme launched last year. The aim is to upgrade the quality of service of front-line personnel and make the Civil Service more responsive to the needs of the public at large.

We will set up a Service Quality Improvement Unit under the Prime Minister's Office, to monitor the standard of public administration and to receive constructive suggestions from the public on ways to improve this further.

A committee led by Head, Civil Service will monitor remuneration trends to ensure that service conditions in the Civil Service are kept in line with those in the private sector.

Social Development

We will continue to encourage single graduates to get married. The Social Development Unit will focus on graduates from the National University of Singapore and the Nanyang Technological Institute/University.