Mr Speaker, Sir,

This Budget is an important step forward in restructuring our economy. It builds on the strategic shifts which we began last year, especially the tax changes, the offset package for the tax changes, including the ERS distributed on 1st January, and also the CPF changes. So, as aptly pointed out by Ms Indranee Rajah and other MPs, the measures and policies in this Budget should be seen in that context, and not in isolation.

The Budget will also have to be seen in the context of the current global outlook, and the short-term prospects for the Singapore economy. The global outlook is very uncertain. Much hinges on what will happen in Iraq. The whole world is now anxiously following developments at the UN Security Council, watching to see if war breaks out over the next few days and, if there is a war, how events develop and what happens afterwards.