Deputy Prime Minister and Minister for Finance Heng Swee Keat had outlined support for businesses to save jobs and protect livelihoods through the Unity, Resilience and Solidarity Budgets.
However, in the next phase of Singapore’s fight against COVID-19, the global economy is unlikely to recover quickly. Our businesses and workers will face tough times ahead.
The latest $33 billion Fortitude Budget provides additional support for businesses to adapt, transform and seize new opportunities now and in the post COVID-19 future.
Here is a quick overview:
Supporting businesses, saving jobs
With businesses trying to get back on their feet and re-open safely, the Government will further strengthen support for businesses on the 3Cs – cash flow, costs and credit.
- Cash flow: The Jobs Support Scheme will be enhanced. All firms will receive an additional month of support. Firms that resume on-site operations after the circuit breaker will continue to receive wage support at 75% until August 2020, or when they are allowed to reopen. Higher wage support at 50-75% will be given to aerospace, retail, built environment, marine and offshore sectors.
- Help with labour costs: The Foreign Worker Levy waiver and rebate will be extended by 2 months for businesses who cannot resume on-site operations. The Government will also defer higher CPF contribution rates for senior workers by one year to 1 January 2022, to help businesses manage costs in these challenging times.
- Help with rental costs: Many businesses are also facing difficulty with rental costs, particularly SMEs. Therefore, an additional $2 billion cash grant has been set aside to help SMEs with two months of rental costs. To support our tenants, additional rental waivers of one to two months will be provided for commercial tenants, hawkers, industrial, office and agricultural tenants.
- Credit: Some promising start-ups are finding it difficult to develop their business in this situation, and would need additional support. Therefore, an additional $285 million has been set aside to finance promising start-ups, thereby helping them sustain their innovation and commercialisation activities. Additional support packages will be rolled out for built environment sector and sectors facing longer-term challenges, such as aviation and tourism.
Transforming to seize new opportunities
To build on the momentum of digital transformation, the Government will allocate $500 million allocated to support businesses and ensure no business is left behind.
- Support for e-payment solutions: To encourage businesses to digitalise, a bonus of $300 per month over five months has been set aside to encourage adoption of e-payments by stallholders in hawker centres, wet markets, coffee shops and industrial canteens.
- Digital Resilience Bonus: Enhanced support will be provided for businesses who are ready to take the next step to digitalise. Eligible businesses in the F&B and retail sectors will receive a pay-out of up to $5,000 if they adopt PayNow Corporate, e-invoicing, business process or e-commerce solutions. An additional $250 million has been set aside to help businesses digitalise and lessen revenue impact of COVID-19.
- Seizing opportunities: Singapore will continue to build its reputation as a trusted, neutral and reliable node. This will support our businesses to go digital and global, therefore creating good jobs for Singaporeans.
For more on the Fortitude Budget, click here.
For more on Budget 2020, visit http://www.singaporebudget.gov.sg
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