As Singapore ages, low tax model creaks
For the first time in its short history, Singapore is expected to have as many people aged 65 and older as under 15 this year, a demographic crux that challenges the low-tax economic model that helped transform Singapore from port town to financial hub in a matter of decades.
A recent study by the Institute of Policy Studies (IPS) showed Singaporeans would rather the government dip into its national reserves than raise taxes. (Picture for representational purpose)
Beneath its modern and glitzy exterior, Singapore is ageing. For the first time in its short history, the Southeast Asian nation is expected to have as many people aged 65 and older as under 15 this year, a demographic crux that challenges the low-tax economic model that helped transform Singapore from port town to financial hub in a matter of decades.
Top government officials have been signalling the need for higher taxes to support future social spending, and with the country forecasting a primary deficit in 2017 that would be the largest in at least 16 years, changes are expected as soon as the budget on February 19.
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