The objective of Budget 2001 at the macro level is to position Singapore for the challenges of the global economy in the new millennium.

The cuts in the corporate and property tax rates, the new corporate tax structure, and the exemption of withholding tax on software payments-these will all lower business costs, and help us maintain our international competitiveness as a business location.

However, as the global economy becomes more knowledge-based, to maintain competitiveness, it is no longer sufficient for us to just cut costs, or wring the last bit of efficiency out of existing systems. Innovations and new ideas will play an increasingly important role in creating wealth for companies in Singapore, and consequently, for Singapore as a nation.

This is why we are encouraging productivity and entrepreneurship, through the new corporate tax structure favoring small enterprises and startups, a more favourable treatment towards stock options for employees for companies and not just start-ups, and raising the tax exemption limits on voluntary CPF contributions by the self-employed.

At the same time, we will help our companies to move up the value chain and into growing industries by our $868 million spending in R&D and the Economic Development Assistance Scheme, and give assistance to local enterprises as they adapt to changing market conditions.

Though businesses are important, even more important are the people. This is why we are investing nearly $7 billion in the education of our children and continuous training of our people, through our investment in educational institutions, the Manpower Development Assistance Scheme, and the Lifelong Learning Endowment Fund, among many other ways.