February 17, 2023

In “Tax incentives for foreign investors: How effective?” (Business Times, February 2023), Distinguished Professor Ivan Png (NUS Business, Economics, and Information Systems and Analytics) questions the cost-effectiveness of tax incentives to promote inbound investments and technological transfers. The incentive schemes he names are the Pioneer Certificate Incentive, and the Development and Expansion Incentive.

Prof Png points out that these schemes, which offer tax cuts for companies investing in Singapore, constitute a loss in tax revenue. With regards to this, he raises two substantive questions: (1) whether the incentives really serve to attract foreign investors, and (2) how much potential revenue is foregone through these incentive schemes?

Prof Png points out that these are important evaluations, and that data on these should be made public. These comments are made considering the rise in the Goods and Service Tax which the Singapore government is enacting in 2023 and 2024.

Read the article here: https://www.businesstimes.com.sg/opinion-features/tax-incentives-foreign-investors-how-effective