• Maintain Neutral-weight (NW) as Budget 2015 focuses more on extending help to the “sandwiched” class, families, and elders.
• Measures to benefit the mass voting block: Introduction to the Skills Future scheme and the Silver Support Scheme, and revisions to areas such as petrol duties, personal income tax rates for top earners as well as CPF contribution rates.
• Support to business is heavily weighted on SMEs – mainly to offset the rising cost due to domestic restructuring (shifting from labour-intensive industries to advanced manufacturing and services).
• Government expenditure will focus on healthcare, public transport and Changi Airport Terminal 5. Temasek would be included into the Net Investment Returns (NIR) framework, and personal income tax rates of the top income earners would be raised. For FY2015, the Overall Budget Balance is projected to be a deficit of $6.7bn (deficit due mainly to $6bn set aside for future investments).
• Overall measures are encouraging (financed through progressive tax rate), but are biased towards improving social welfare instead of injecting economic stimulus.

Source: Phillip Securities Research - 25 Feb 2015