Lion City move apportioning lion's share to its risk takers

IF A WEEK is a long time in politics, as former British prime minister Harold Wilson once observed, then a year must border on eternity. Singaporeans are discovering the truth of this pithy political observation as the delivery of the budget approaches once again.

A little more than 12 months ago, the finance minister of the time Richard Hu Tsu Tau took the wraps off what he dubbed his 'most generous' budget. The veteran front-bencher cut corporate tax by a full percentage point to 24.5 per cent and trimmed property tax to 10 per cent from 12 per cent. Personal tax rates were also pared back and, significantly, there were deeper cuts for the lower-paid.

Such moves reflected the long-standing position of the ruling People's Action Party (PAP) that, while it was important to foster a pro-business environment, it was also critical to promote social equity. Vast extremes in the distribution of society's spoils were to be avoided. Under the party's favoured model, Singapore was run on a broadly egalitarian basis (with the perhaps notable exception of the world-beating salaries paid to cabinet ministers).

Since then, in true Wilsonian fashion, much time has passed and much has changed, notwithstanding the fact that the PAP remains firmly in control of the machinery of government after sweeping the national polls in November.

Mr Hu is no longer behind the desk at finance, having been replaced by Deputy Prime Minister Lee Hsien Loong, the country's leader in waiting.

Mr Lee has added preparing the budget to his existing role at the head of the Monetary Authority of Singapore.