Singapore Finance Minister Richard Huin his budge speech introduced a tax package he said aims at
consolidating economic recovery.
    He imposed higher taxes on tobacco and liquor but
introduced tax incentives to promote population growth and
offshore services. In order to further accelerate development
of the capital market and fund management activities, from the
year of assessment 1988 income earned by Asian Currency Units
and securities companies approved by the Monetary Authority of
Singapore will be taxed at a concessionary rate of 10 pct.
    He said interest paid by Simex members to non-residents in
respect of transactions in the deferred gold market will be
exempt from withholding tax. This will make Singapore a more
attractive place to carry out such transactions, he added.
 Reuter
