After the Singapore Budget 2020 was introduced on 18 February 2020, the government continues to announce two more supplementary budgets which are respectively Resilience Budget on 26 Mar 2020 and Solidarity Budget on 6 Apr 2020, to address the Covid-19 pandemic as well as assist businesses to overcome this very rough time.
Below is the summary of the most crucial supporting measures from the two budgets.
1. Supporting Workers and Employers
1.1. Job Support Scheme (JSS)
Enhancements are made to the Job Support Scheme:
- The government will pay employers 25% on the first $4,600 of monthly wages for each local worker in employment for 9 months (compared to 8% on the first $3,600 previously)
- The government will pay higher support rates for sectors which are heavily affected by the pandemic:
- 75% wage support for aviation and tourism sectors;
- 50% for the food services sector.
- The government will pay 75% on the first $4,600 of monthly wages paid in April and May 2020 for each local worker in employment.
- Payouts will be sent to companies in April, July and October 2020
1.2. Wage Credit Scheme
Additional payout in the Wage Credit Scheme which was previously announced in the Budget 2020 will be paid in end June 2020 instead of September 2020.
1.3. SGUnited Traineeships
Co-fund wage costs of companies offering traineeships to first-time jobseekers.
2. Supporting Businesses
In order to stabilize businesses, below measures have been announced:
2.1. Income Tax Payment
Companies are automatically postponed income tax payment for 3 months. Particularly, payments due in April, May and June are deferred to July, August and September 2020 respectively.
2.2. Government Fees and Charges
Government fees and charges will not be increased for 1 year, from 1 April 2020 to 31 March 2021.
2.3. Foreign Worker Levy
Companies receive a waiver of monthly Foreign Worker Levy (FWL) due in April 2020
They also receive FWL rebate of $750 in April 2020 from levies paid this year, for each Work Permit or S Pass holder
2.4. Enhanced Property Tax Rebate for 2020
- 100% tax rebate, which equals no property tax, for qualifying commercial properties including hotel, serviced apartments, tourist attractions, shops and restaurants
- 60% tax rebate for the Integrated Resorts
- 30% tax rebate for other non-residential properties
2.5. Rental Waivers
- Rental waiver increased from 1 month to 3 months for stallholders in hawker centers managed by NEA or NEA appointed operators
- Rental waiver increased from 0.5 months to 2 months, for eligible commercial tenants of Government agencies
- 1-month rental waiver for office, industrial and agriculture tenants of Government agencies
- 0.5-month rental waiver for all non-residential tenants of Government agencies
2.6. Cash-flow Support with Credit
- Temporary Bridging Loan Programme is expanded to cover all sectors with maximum support loan increased from $1 million to $5 million
- Enhancements are made to the Enterprise Financing Scheme (EFS):
- Subsidy from the Loan Insurance Scheme for loan insurance premium is increased to 80%
- The Government’s risk-share rate is raised from 80% to 90% for EFS – Trade Loan, EFS – SME Working Capital Loan and Temporary Bridging Loan Programme for all loans application from 8 April 2020 to 31 March 2021.
2.7. Capability Development
- SMEs Go Digital is enhanced to provide more digital solutions in order to reduce in-person communication.
- Support levels from the Enterprise Development Grant (EDG) and Productivity Solution Grant have been raised to maximum 90% and 80% respectively until the end of 2020.
- Training Support is enhanced with higher fee subsidies of 90% and up to $10 hourly absentee payroll. It is also extended to cover more sectors including Land Transport, Arts and Culture till June 2020.
2.8. Support for Heavily Affected Sectors
- Aviation: $350 million support package to provide cost relief and to maintain a minimum level of connectivity
- Tourism: $90 million for recovery
- Land Transport:
- Special Relief Fund payments of $300 per vehicle per month for eligible taxi hirers and Private Hire Car (PHC) drivers, till September 2020
- 1-year road tax rebate and 6-month waiver of season parking charges at government-owned parking facilities
- Arts and Culture: $55 million support package
Should you still have further questions to ask, please message us! We are always ready to help!
Disclaimer: While BBCIncorp strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact BBCIncorp’s customer services for advice on your specific cases.
- 1. Supporting Workers and Employers
- 2. Supporting Businesses
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