Many Singaporeans have been fooled into thinking that foreigners invest billions in little red dot because of our efficiency and being the least corrupt Asian country.
While these factors do play a part, a more important consideration is of course our corporate income tax rate.
Among Asian countries, Singapore has the second lowest corporate tax rate. Among Asean countries, our corporate tax rate is right at the bottom. 😉
If there was a corruption free/efficiency premium for Singapore, investors surely wouldn’t mind paying higher taxes than, say, Indonesia’s 25%. Or at least on par.
But PAP can’t even raise corporate taxes to match Thailand’s 20%. In fact, it can’t even increase 1%.
PAP should ensure corporations contribute their fair share to government revenue, similar to our Asean neighbours.
Instead, PAP would rather burden citizens with another GST rate hike post GE2020. 😦