SG Resilience Budget for Businesses to combat Covid-19

As Singapore is going through an unprecedented COVID-19 crisis, the Government has come forward to introduce a Supplementary Resilience Budget – just shortly 5 weeks after the Unity Budget was announced. By tapping into the  past reserves – an emergency action that was taken once during the 2008 financial crisis, another $48.4 billion will be invested to:

1. Support workers
2. Stabilise businesses 
3. Protect livelihoods

Below is the comprehensive summary of the major enhancements. 

1. Supporting Workers

• Job Support Scheme (JSS)

  • For directly affected sectors such as aviation, tourism and food sector, the government will provide a higher wage co-funding of 50%-75%. 
  • For other sectors, there will be 25% (up from 8%) co-funding of local workers’ wages until December 2020. 

  Payouts will be in May, July and October, and those earning up to $4,600 monthly will qualify.

• Wage Credit Scheme

  Additional payouts will be brought forward from September to End June 2020. 

• Skillsfuture Credit

  Individuals aged 25 and above can now use their additional Skillsfuture top-up from 1st April 2020 onwards. 

• COVID-19 Support Grant

  Middle and low income workers who have lost their jobs due to COVID-19 will receive $800 cash monthly for 3 months.

• NTUC Care Fund (COVID-19)

  For union members, NTUC will provide a one-off relief of up to $300 per union member. 

• Self-Employed Individuals

  • Eligible self-employed persons will receive $1,000 cash every month for 9 months.
  • There will be an automatic deferment of income tax payment for 3 months.

• SGUnited Jobs

  The government hopes to create over 10,000 jobs via MyCareersFuture.sg this year. 

• SGUnited Traineeships

  Workforce Singapore will support a total of 8,000 traineeships this year, across both large and small enterprises.

2. Stabilising Businesses 

• Enhanced Support for Sectors Directly Affected by COVID-19

  • $300 million for Aviation Sectors.
  • $90 million for Tourism sectors
  • $95 million Point-to-Point support package for taxi drivers and private-hire car drivers.
  • $23 million road tax rebates and parking fee waivers for private bus owners. 
  • Arts and Culture to receive $55 million for job retention and digitalisation. 

• Capability Development

  SMEs can leverage on the SMEs Go Digital Programme, Productivity Solutions Grant (PSG) and Enterprise Development Grant (EDG), which all have been enhanced and extended till December 2020. 

• Enhanced Property Tax Rebates

  • Increased Property Tax Rebate for qualifying commercial properties, such as hotels, serviced apartments, tourist attractions, shops and restaurants, from 15% or 30% to 100%
  • Increased Property Tax Rebate for Integrated Resorts from 10% to 60%
  • All other non-residential properties will receive a new 30% Property Tax Rebate

• Rental Waivers

  Rental waivers for up to 3 months have been announced.

• Cash Flow Support

  • To support businesses’ trade financing needs, the Enterprise Financing Scheme will be enhanced, with the maximum loan quantum being increased from $5 million to $10 million
  • An increase in the Government’s risk-share to 80%, up from 70%.
  • Subsidies to businesses for loan insurance premiums will be increased from 50% to 80%, under the Loan Insurance Scheme.
  • The Temporary Bridging Loan Programme (TBLP), which was introduced for the tourism sector, will be expanded to all enterprises, and the maximum supported loan will be increased from $1 million to $5 million.
  • SMEs that require support beyond the TBLP can continue to tap on the EFS – SME Working Capital Loan. The maximum loan quantum for this will be further enhanced, from $600,000 to $1 million.
  • The Government will work with participating financial institutions to defer capital payments for one year on the EFS-Working Capital Loan and the TBLP loans if requested by businesses, subject to assessment by the institutions.

3. Protecting Livelihoods

• The Government has frozen all government fees and charges for one year, from 1 April 2020 to 31 March 2021. This will apply to all fees for government services.
• 3-month suspension of late payment charges on HDB mortgage arrears. HDB will continue to exercise flexibility when providing assistance during this period, through existing measures such as deferring payment of loan instalments for six months.
• For all graduates who have taken a government loan for their university and polytechnic studies, there will be a one-year suspension of student loan repayment and interest charges, from 1 June 2020 to 31 May 2021.
• Strengthening the network support for Singaporeans, the Government has decided that self-help groups will get double grants for two years. In total, this will be $20 million. Community Development Councils (CDCs) grants will also increase from $2 million to $75 million.
• All Singaporeans living in 1-room and 2-room HDB flats will receive triple of the grocery vouchers given to them, from $100 to $300, for this year. 
• There will be a one-off PAssion card top-up of $100 in cash for Singaporeans aged 50 years and above.

The Care and Support – Cash for all Singaporeans aged 21 and above, will be enhanced, as one-off cash payout will be tripled, from the earlier announced $100-$300, to a range from $300 to $900, depending on income. There will be additional help for families with young children, with cash payout to each parent tripled, from $100 to $300.

Suggested Readings

How businesses will be backed as part of the Singapore Budget 2020 Singapore Budget 2018 – Overview of Tax Changes for Businesses and Individuals What You Need to Know about the Singapore Budget 2018 Businesses You Can Start With $250 Or Less