It has been five weeks since the first stimulus package was announced on 18 February 2020. From a number of 80 COVID-19 cases since then, it has escalated to 683 cases as of today. On 11 March 2020, World Health Organization (WHO) has upgraded the status of the outbreak from epidemic to pandemic, which has also unfortunately translated into a Global Financial Crisis.
This afternoon, Deputy Prime Minister Heng Swee Keat announced a second stimulus package - The Resilience Budget - which will be funded from a combination of current and past reserves as another S$48 billion will be allocated for additional support measures.
The Resilience Budget focuses on three key areas:
- Save jobs, support workers, protect livelihood
- Help Enterprises with Cashflow, Cost and Credit
- Strengthen economic and social resilience
As fellow Small and Medium Enterprises (SMEs) and self-employed individuals, our top concern is, how are we benefiting from the Resilience Budget?
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The Resilience Budget continues to support workers in staying employed by defraying and co-funding wage costs for employers
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Enhanced Jobs Support Scheme
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- $15.1b to support more than 1.9 million local employees
- 25% co-funding wages for local workers on the first $4,600 of monthly salaries
- 9 months till end of 2020
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Enhanced Wage Credit Scheme
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- Additional $500m for employees’ wage increases, on top of $600m disbursed in March 2020
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SGUnited Traineeships
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- Co-funding of wages for companies offering traineeships to first-time jobseekers
- 8,000 traineeships in 2020 for fresh graduates
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Self-employed Persons and Freelancers are not left out as well
(More details on eligibility and benefits to be updated)
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Self-employed Persons Income Relief Scheme (SIRS)
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- $1.2b set aside
- Eligible Singaporean SEPs will receive $1,000 per month for 9 months
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Self-employed Persons Training Support Scheme
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- $48m set aside till end of 2020
- Enhanced training allowance of $10 per hour
- Sustained support for 200,000 eligible SEPs to make use of downtime to train and upskill
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Point-to-Point Support Package
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- Special Relief Fund payments of $300 per vehicle per month for taxi and private hire car drivers
- Until end of September 2020
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Supporting Businesses in Cashflow, Cost and Credit
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Deferment of Income Tax Payments
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- Income tax payments will be automatically deferred for 3 months for companies and SEPs
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Freeze All Government Fees and Charges
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- For all government fees and charges for 1 year, from 1 April 2020 to 31 March 2021
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Enhanced Property Tax Rebate
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- 100% rebate for qualifying commercial properties
- 60% for Integrated Resorts
- 30% for other non-residential properties
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Enhanced Rental Waivers
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- 3 months rental waiver for hawkers
- Up to 2 months rental waiver for commercial and other non-residential tenants in government properties
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Enterprise Financing Scheme
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- Maximum quantum of Trade Loan increases from $5m to $10m
- Government’s risk-share increases to 80%
- Maximum quantum of Working Capital Loan increases from $600,000 to $1m
- 1 year deferment of capital payments
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Enhanced Loan Insurance Scheme
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- Increase subsidies for loan insurance premiums from 50% to 80%
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Temporary Bridging Loan Programme
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- Maximum loan quantum increases from $1m to $5m
- Expanded to cover all sectors
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You can also refer to the NTUC Care Fund and SBF-YBLN Hope Fund for other schemes available
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Singapore economy has contracted 2.2% year-on-year in Q1 2020, and full-year growth forecast has been slashed to between -4% and -1%. As the COVID-19 pandemic worsens, and with global shocks affecting uncertainties and cutback in economic activities, there is an urgency for the Singapore Government to step in to keep the economy afloat.
With the Resilience Budget announced this afternoon, we have to remain optimistic and of course, RESILIENT.
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