Singapore Government business support
COVID-19 has impacted economies across the globe with governments developing stimulus packages to support their respective countries. The Singapore government has outlined a number of initiatives to protect the health and well being of their citizens but also to cushion the impact from the economic downturn.
Below is a summary of the support businesses can receive from the Solidarity Budget, as well as an overview of the earlier announced Unity Budget and Resilience Budget. Small businesses should seek the advice of their accountant to help them navigate the financial support available and to position up for them rebound.
Unity Budget [announced 18 Feb 2020]
Support for Businesses
1. Stabilisation & Support Package
· Jobs Support Scheme.
· Enhanced Enterprise Finance Scheme-SME Working Capital Loan.
· 25% Corporate Income Tax Rebate for the year 2020, up to $15,000 per company.
2. Transformation and Growth
· $8.3 billion allocated over the next three years for Transformation and Growth.
· Additional $300 million under Startup SG Equity for deep-tech startups.
· Enterprise Grow Package.
o Launched GoBusiness platform, a single touchpoint for Government-to-Business transaction.
o Expanded SMEs Go Digital programme to drive greater adoption of digital technology.
o Enhanced Market Readiness Assistance grant to help more enterprises enter new markets.
· Enterprise Transform Package.
o Training and mentorship for businesses leaders of 900 enterprises, through Enterprise Leadership for Transformation programme.
o Expanding Enterprise Development Grant to support 3,000 business transformation projects.
Resilience Budget [announced 26 Mar 2020]
Support for Businesses
1. Help with cash flow
· Accelerated flowing of payouts under wage support schemes (a total payout of $5.6 billion by end-May 2020).
· Brought forward additional $500 million of wage credits.
Automatic deferment of income tax payments for 3 months for companies and self-employed persons.
2. Help with business costs
· Enhanced Property Tax Rebate.
o No Property Tax for 2020 for qualifying commercial properties (up from 15% – 30% Property Tax Rebate).
o 30% Property Tax Rebate for 2020 for businesses in other non-residential properties affected .
· Rental waivers of up to 3 months for stallholders in hawker centres managed by National Environment Agency (NEA) or NEA-appointed operators, eligible tenants under government agencies and all other non-residential tenants.
· One-year freeze on all government fees and charges, from 1 April 2020 to 31 March 2021.
3. Help with credit
· Enhanced Enterprise Financing Scheme (EFS) – Trade Loan with maximum loan quantum of $10 million (up from $5 million) and Government’s risk-share of 80% (up from 70%).
· 80% subsidies to businesses for loan insurance premiums under the Loan Insurance Scheme (up from 50%).
· Expanded Temporary Bridging Loan Programme expanded to all enterprises, with maximum supported loan of $5 million (up from $1 million).
· Enhanced EFS –SME Working Capital Loan with maximum loan quantum of $1 million (up from $600,000).
· Deferred capital payments for one year on the EFS-Working Capital Loan and the TBLP loans for businesses that request it.
· $20 billion of loan capital set aside as part of the budget.
· Help for loan obligations and insurance premium payments for businesses and individuals facing cash flow challenges.
4. Help for sectors most affected by COVID-19 (Coronavirus)
· Enhanced Jobs Support Schemes for business in the aviation, tourism and food service sectors, up to 75% wage offset first $4,600 of monthly wages will be provided for every local employed
· $350 million enhanced aviation support package.
· $90 million set aside to help the tourism industry rebound.
· Extended and enhanced Point-to-Point Support Package for taxi and private hire car drivers, to receive the Special Relief Fund payments of $300 per vehicle per month until end-Sep 2020.
· One-year road tax rebate and six-month waiver of parking charges at government-managed parking facilities for private bus owners.
· $55 million support package for the arts and culture sector.