From 2010 the economic policies of the government of Singapore have focused on reducing reliance on foreign workers and encouraging businesses to invest in improving productivity, skills, and innovation.
However, recent information shows that research and development (R&D) programs—such as the productivity and innovation credit (PIC) are being used by business to defray operating expenses, instead of supporting transformative activities.
According to recent guidance from the Inland Revenue Authority of Singapore, the PIC does not identify innovation unless it includes a “revolutionary” or “breakthrough” scientific or technological discovery. Possibly the 2015 budget will revise the PIC regime to address broader innovation and transformative activities.
