Many multinationals have made Singapore their regional headquarters, drawn in part by relatively low 17 per cent corporate tax.
In spite of its small size, Singapore regularly features among the world’s ten biggest foreign direct investment (FDI) destinations, according to data collated by the United Nations Conference on Trade and Development (UNCTAD).
However, global FDI fell by around 40 per cent in 2020; UNCTAD said in January, due to the coronavirus pandemic and related restrictions on businesses.
Wong warned on Monday that the proposed new rules should not inadvertently weaken the incentives for businesses to invest and innovate as otherwise; countries will all be worse off, fighting over our share of a shrinking revenue pie.
Singapore will attend the next meeting of the Group of 20 (G20) in July, where the tax proposals will be discussed, Wong said.