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In his commentary, “ ” (Feb 26), Straits Times editor-at-large Han Fook Kwang called for new “ground-breaking” ideas on our economy and for the Government to do more on wealth redistribution. At the same time, Mr Han acknowledged the limits to what the Government could do in a modern economy. He conceded that the Government would serve the business world best by focusing on fundamentals: nurturing a conducive business environment, anchoring quality investments, building up our enterprises, and upskilling our workers. These are indeed core pillars of our economic strategy. We are investing in major infrastructure like Tuas Port and Changi Airport Terminal 5, taking action on climate change through the Singapore Green Plan, and training our people through SkillsFuture Singapore. Businesses, workers and the Government have been doing this sustained and patient work, year after year, industry by industry. They may not be “ground-breaking” enough for Mr Han, or make for eye-catching announcements in every Budget, but they are producing results. Singapore’s labour productivity rose 3.5 per cent per annum from 2016 to 2021, compared with 1.7 per cent in the preceding five years.  Mr Han also argued for a capital gains tax to redistribute wealth. The intention is laudable, but practical implementation is fraught with difficulties, especially as most of our competitors do not have such a tax. Instead, we have been modifying our fiscal system to tax property and the land on which it sits more heavily and progressively. Budget 2022 saw significant moves on property tax, which are taking place over 2023 and 2024. We have also been narrowing the income gap and tilting benefits more towards those with less. We will continue to study options to tax wealth effectively, and to make our system fairer and more progressive. But in considering these fiscal options, we always have to be mindful of their impact, and focus on what works best to foster both a vibrant economy and an inclusive society. Senior Minister of State for Finance and Transport