On taxes, Lim says that with the implementation of the OECD’s Pillar Two 15% minimum effective tax rate (ETR) for large multinationals (MNEs) from next year, this could negatively impact companies with substantial overseas income and hasten the relocation of more firms.
More financial support for initiatives in green energy and artificial intelligence (AI) could benefit DFI Retail, Jardine Cycle & Carriage (SGX:C07
) and Singtel, and an extension of tax incentives may benefit DBS, HSBC, Deutsche Bank and peers, says Bloomberg Intelligence analyst Catherine Lim in her note on 18 Feb.
Lim’s note follows the announcement of the Budget 2024 delivered by deputy prime minister Lawrence Wong on Feb 16. She adds that the higher handouts and support, and measures to reduce the impact of job loss could support retail sales and lift turnover rents for mall owners such as CapitaLand Integrated Commercial Trust (SGX:C38U) (CICT).
