Singapore Supplementary Budget 2020 – Weathering The Covid-19 Storm.

 1. 

Defraying staff cost

To help businesses defray some of their staff costs and retain their local employees, Supplementary Budget 2020 will provide employers with a 25% (up from 8% as previously announced during Budget 2020) cash grant on the gross monthly wage of each Singapore or permanent resident ("PR") employee. The monthly cap will be raised to S$4,600 (up from S$3,600) per employee, and will now also cover two additional quarters from February 2020 to April 2020 and from May 2020 to July 2020 (in addition to October 2019 to December 2019). 
 

To assist businesses particularly affected by COVID-19, the cash grant amount provided to businesses in the food services, aviation and tourism sectors will be raised to 50%, 75% and 75%, respectively, on the gross monthly wage of each Singapore or PR employee.

 2. 

. Support for the self-employed

To help self-employed persons, who generally have less income security, Supplementary Budget 2020 will provide eligible self-employed persons with a S$1,000 direct cash assistance each month, for a period of nine months.
 

Capitalising on this period of economic slowdown, Supplementary Budget 2020 seeks to encourage self-employed persons to train and upskill by enhancing the hourly training allowance to S$10 per hour (up from S$7.50) until the end of 2020.

 3.

Support for lower-income Singaporeans

The Workfare Income Supplement Scheme will raise its payouts to lowerincome workers to S$3,000 each.

 4.

Support for jobseekers

Supplementary Budget 2020 will introduce the SGUnited Traineeship programme to assist local first-time jobseekers. The programme will coshare manpower costs with businesses that offer traineeships for local firsttime jobseekers. 
 

Supplementary Budget 2020 will also introduce the SGUnited Jobs programme. The programme is expected to create about 10,000 jobs over the next 12 months in the public and private sectors.

 5.

Support for the unemployed 

Supplementary Budget 2020 will set up a Temporary Relief Fund to provide unemployed Singaporeans or PR with immediate financial assistance.
 

The COVID-19 Support Grant will be introduced to help qualifying workers who become unemployed due to COVID-19 by providing them with a grant of S$800 per month (for three months) as they seek new jobs or attend training to better their employment prospects. 

 6.

Support for Singaporean households

Supplementary Budget 2020 will provide cash payouts of between S$300 to S$900 (up from S$100 to S$300), depending on income, for all adult Singaporeans.
 

Additional cash payouts of $300 (up from S$100) will be given to each Singapore parent with at least one young Singaporean child.
 

Grocery vouchers of S$300 (up from S$100) will be given to qualifying Singaporeans to help them cope with the cost of living. 
 

Fees and charges for Government services will be frozen until 31 March 2021. 
 

Loan repayments and interest charges in connection with student loans will be suspended until 31 May 2021.

 1. 

3-month income tax deferment

Supplementary Budget 2020 will grant an automatic deferment of income tax payments for self-employed individuals and companies for three months.
 

Self-employed individuals with personal income tax payments due in May, June and July 2020 will be granted a deferment; the outstanding tax will only be collected in August, September and October 2020, respectively.

Companies with corporate income tax payments due in April, May and June 2020 will be granted a deferment; the outstanding tax will only be collected in July, August and September 2020, respectively.

 2.

Property tax rebate

To help the sectors most affected by COVID-19, Supplementary Budget 2020 implements the following measures for YA2020: 
 

▪ 100% property tax rebate for qualifying commercial properties directly impacted by COVID-19 (i.e. hotels, serviced apartments, tourist attractions, shops, restaurants, etc.);
 

▪ 60% property tax rebate for integrated resort operators; and
 

▪ 30% property tax rebate for businesses in other non-residential properties (e.g. offices and industrial property).
 

Landlords are "strongly urged" to fully pass the rebate to tenants by way of rental reduction, to directly ease the latter's cash flow.

 3. 

Enhancement of the Enterprise Financing Scheme ("EFS") for SMEs

The EFS-SME Working Capital Loan was first introduced to support the daily operational cashflow needs of SMEs. Supplementary Budget 2020 raises the maximum loan quantum to S$1 million (up from S$600,000).
 

The EFS-Trade Loan was introduced to support Singapore-based businesses' trade financing needs. Supplementary Budget 2020 will raise the maximum loan quantum to $10 million per borrower group (up from $5 million) and increase the Government's risk-share to 80% (up from 70%).
 

Under the Loan Insurance Scheme, subsidies to businesses for loan insurance premiums will be raised to 80% (up from 50%).
 

The scope of the Temporary Bridging Loan Programme will be broadened from the tourism sector to include all businesses. The maximum loan quantum will be increased to S$5 million (up from S$1 million). Businesses may also request for deferment of principal repayment for one year, subject to assessment by the relevant participating financial institutions.

 1. 

Enhancements to Enterprise Development Grant ("EDG")

The EDG supports local businesses to grow and transform in three areas: core competence, innovation and productivity, and market access. Supplementary Budget 2020 will increase the maximum support level to 80% (up from 70%) until December 2020. For businesses severely affected by COVID-19, the maximum support level will be increased to 90% on a case-by-case basis.

 2.

Enhancements to Productivity Solutions Scheme ("PSG")

The PSG provides support to businesses by funding the adoption of Government-approved off-the-shelf productivity solutions and equipment. Supplementary Budget 2020 will increase the maximum support level to 80% (up from 70%) until December 2020.

 3.

Enhancement to 'SMEs Go Digital' Programme

The 'SMEs Go Digital' Programme helps SMEs build digital capabilities. Supplementary Budget 2020 will expand the scope of the programme to cover the implementation of safe distancing and business continuity measures. 
 

Supplementary Budget 2020 will also provide up to 80% funding support for businesses to adopt advanced digital solutions until December 2020. These digital solutions include, for example, integrated business-to-business systems to facilitate end-to-end transactions between buyers and sellers.

 4.

E-invoicing registration grant

Singapore's nationwide e-invoicing network was first designed to improve efficiency, reduce costs, and enjoy faster payment cycles by doing away with paper invoices. Businesses registered on the nationwide e-invoicing network before 2021 will receive a one-time grant of S$200.

 5.

Absentee payroll

A 90% absentee payroll rate (i.e. 90% of hourly basic salary, capped at S$10 per trainee-hour) will be extended to all sectors to provide additional cash flow relief for employers when they send their workers for training. This programme will cover eligible courses that commence before 1 January 2021