Mr Speaker, Sir, first, may I thank all the MPs for their contributions and, particularly, thank all those who have supported this Budget.

I am happy to note that nearly all of the MPs support the long-term vision set out in this Budget. It builds on the strategic changes launched in recent years, and sets the directions for the next few years.

On the economic front, the Budget is a continuation of the Economic Review Committee’s strategies to enhance our competitiveness, to promote entrepreneurship, and to create jobs. We have lowered the corporate tax rate to 20%. That is a big move. We have exempted from tax all foreign sourced income remitted by resident individuals in Singapore, as well as all Singapore sourced investment income derived by individuals. These are moves which we have thought over for many years before finally deciding to act this year. We have expanded the scope of the Technopreneur Investment Incentive to the Enterprise Investment Incentive. It is a change of one word but it is a change of mindset. And we are exempting start-ups from corporate tax on the first $100,000 of chargeable income for the first three years of assessment.

The Budget also sets the stage for restoring our fiscal health, following deficits in two out of the last three years, and another projected deficit this year. The Government aims to balance the budget by FY2005, barring exceptional circumstances.

On the social policy side, we are moving to focus subsidies on those who need them the most with a more equitable and sustainable basis for financing university education, and for expanding means testing in healthcare. And we have set out the principles which we will use to tackle the procreation issue.