| 2.1 Our first priority is to make our
economy more resilient and dynamic, and to help private
enterprise flourish. We need to do this at three levels.
First, we must make the overall environment conducive
to business. Companies must be free to compete with
one another; entrepreneurs must be able to pursue their
visions and build their businesses; and workers must
have every incentive to work hard and earn more. This
means a free market economy which operates with maximum
flexibility and minimum distortions. It also means keeping
the tax burden low, and having a competitive tax structure
which encourages enterprise and effort, and attracts
talent to live and work here.
2.2 Second, we must foster the growth of important
sectors of our economy. We have done this very successfully
with manufacturing, through the efforts of EDB and JTC,
applying judicious tax incentives such as pioneer status
and investment allowances. We have also done this for
specific service industries such as financial services.
The objective is not to protect a sunset industry, but
to give an extra push to an industry which has good
potential. Our tax incentives are effective because
they reward success rather than subsidise failure.
2.3 As our economy restructures and diversifies, services
will be an important source of jobs and growth. We therefore
need to promote key service industries, particularly
those which strengthen our position as a regional hub.
We also need to support small and medium enterprises
(SMEs), because not only do SMEs employ many workers,
but start-up companies are also an important avenue
for entrepreneurship.
2.4 And third, we must prepare workers for the needs
of the new economy. We want not just an efficient and
productive economy, but also a workforce that possesses
the skills to hold good jobs. We need to help workers
to acquire new skills, paying particular attention to
lower skilled, less educated workers. Then they can
stay employable as the economy restructures, and earn
their fair share of the fruits of growth.
2.5 This Budget contains measures to achieve these
three objectives.
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