The Singapore 2007 Budget focuses on developing new strategies to meet the challenges of globalization, but some of the measures fine-tune the existing tax framework to keep the relevant sectors competitive and, at the same time, strengthen the foundation for further growth. This article considers some of the tax changes designed to lay the long-term foundation for the economy and to further fine-tune certain tax incentives, including: direct taxes and borrowing costs: changes to the corporate tax system, deductions for borrowing costs; development of "high-trust" services: enhancing the income tax exemption for funds managed for foreign investors, enhancing the financial sector incentive, enhancing the finance and treasury centre incentive, extending the exemption for over-the-counter financial derivative payments made to non-residents, and enhancing the qualifying debt securities scheme; growing Singapore as a philanthropy hub; and logistics, maritime and aviation services.