Takeaway #1 - Grocers and neighborhood malls benefit from the S$3bn top-up to Assurance Package and new cost-of-living cash pay-out. Total cash distributed to eligible residents would be up to S$1,300 in CY23. A total of S$600 of CDC vouchers will be granted to Singapore households this year and next.
Takeaway #2 - Up to S$30k additional CPF Housing Grant for first-timer families. The additional grants should help to boost demand for resale flats for first timers.
Takeaway #3 - Minimal impact from higher buyer’s stamp duty for property developers. Marginal increase on buyer’s stamp duty rates for residential properties above S$1.5m of 1-2 percentage-points from the current 4%.
Takeaway #4 - Rise in CPF monthly salary ceiling may dampen consumer spending but lifts mortgage payment limit. The CPF monthly salary ceiling will be raised progressively from $6k to S$8k by 2026, while CPF annual ceiling is unchanged at S$102k. This can lower disposable income by up to S$400 per month, offsetting some of the positives in Takeaway #1. The flip side is there will be higher monthly CPF contributions of up to S$740 to the Ordinary Account for mortgage payment from 1 Jan 2026.
Takeaway #5 - Businesses will enjoy tax deductions of up to 400% (previous 250%) of qualifying innovation expenditure under the new Enterprise Innovation Scheme, assuming the criteria are met.
Read our report to find out which stocks will benefit from Budget 2023.