$7b Boost to Transform Economy

I refer to the article dated 23 February 2010. The government has revealed a multi-billion-dollar plan to help companies and workers here work smarter, grow and become globally competitive. They will be trying to improve on these five areas:

1.BOOSTING PRODUCTIVITY
$5.5b over five years, including:
-$1b for new National Productivity Fund
-$480m annually in new incentives to spur innovation
-$2.5b over five years for training and skills upgrading

2.SPURRING INNOVATION
-$1.5b to promote research and development
-$450m over five years to boost government-private sector collaborations

3.BUILDING COMPETITIVE COMPANIES
-$250m over five years to upgrade local companies' capabilities
-$100m to strengthen business associations
-Up to $250m for Government to co-invest in promising companies

4.HELPING WORKERS UPGRADE
-At least $100m for new Workfare scheme and higher Workfare payouts

5.FAMILIES AND HOME-OWNERS
-$230m to lower property tax
-$310m to top up CPF Medisave Accounts of those aged >50
-$230m to top up Post-Secondary Education Accounts
-$200m more each for Medifund and the Eldercare Fund
-Higher relief for taxpayers staying with parents and the disabled

The aim of all this is to raise the productivity rate by a few percentile, and to help to upgrade jobs. If Singapore achieves this, incomes could rise by as much as one-third, which is important because this is a great opportunity for Singapore companies to expand abroad, while their skill-sets are in high demand. And if they are successful, better and more jobs would be in turn created back in Singapore. Measures that have been implemented would benefit the lower- and middle- income households.There will also be tax reliefs for those who are supporting their parents and grandparents. Housewives who are also breadwinners can also claim relief.

I think that the government has set an ambitious goal, but it is achievable if we try hard enough.

P.S. What are your views on the $7b boost? Feel free to comment!
P.P.S. Here are some helpful links: http://app.singaporebudget.gov.sg/budget_2010/default.aspx
http://app.reach.gov.sg/reach/NewsEvents/Events/Budget2010/tabid/281/default.aspx
http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_444240.html
http://sg.video.yahoo.com/watch/7046459/18331562