In total, the government is set to commit $59.9 billion, or about 12% of Singapore’s GDP in a battle against the Covid-19 pandemic.
Following the announcement by Deputy Prime Minister Heng Swee Keat, the Singapore government has unveiled a third round of support measures on 6 April to help save jobs and protect livelihoods during the “circuit breaker” distancing measures that kicks in today (7 April).
Called the Solidarity Budget, the third stimulus package will cost a further $5.1 billion.
“These measures will impact our workers and businesses severely,” said Deputy Prime Minister Heng Swee Keat as he spoke in Parliament.
“Additional support will be required to save jobs, preserve capabilities, and provide immediate direct assistance to Singaporeans to help them tide through this exceptional and difficult period.”
Third budget a first in Singapore’s history
The Solidarity Budget marks the first time the government has released three Budgets in less than two months, after February’s $6.4 billion Unity Budget and the record-breaking $48 billion Resilience Budget on 26 March, reported CNA.
To fund the third Budget, the government had sought President Halimah Yacob’s permission to draw an additional $4 billion from past reserves. In total, the government is set to commit $59.9 billion, or about 12% of Singapore’s GDP in a battle against the Covid-19 pandemic.
“This is an unprecedented budget for extraordinary times,” said Heng, who also serves as Finance Minister.
“The situation remains highly fluid and uncertain. The Government stands ready to provide further support, should it become necessary.”
Singapore’s GDP to take further hits
And as Covid-19 continues to spread across the globe, the city-state’s overall GDP is forecasted to ‘take a further hit’ as the country’s trading partners put up restrictions, curtailing demand for exports.
“The primary aim of this Solidarity Budget is to take further steps to save jobs and protect the livelihoods of our people during this temporary period of heightened measures,” said Heng.
“We will also help businesses preserve their capacity and capabilities, to resume activities when the circuit breaker is lifted.”
The Jobs Support Scheme, for instance, will be further enhanced allowing companies to receive 75% wage support for local employees in April, an increase from 25% previously.
The first payout under the scheme will also be brought forward to April, with some companies receiving the first tranche next week.
The monthly foreign worker levy due in April will also be waived to ease the companies’ labour costs from hiring foreign workers.
Employers will also receive a $750 foreign worker levy rebate for every work permit or S pass holder. The rebate can be received as early as 21 April.
Increased cash handouts to Singaporeans
Singaporean households will also receive more timely support in the form of increased cash handouts. All Singaporean adults above 21 years of age will enjoy a one-off Solidarity Payment of $600 in cash – which consists of the $300 first announced in February’s Care and Support package plus an additional $300.
Singaporeans who have provided their bank account details to the government shall receive the payments by 14 April, while those who have not, will receive the payments by cheque, which will be issued starting on 30 April.
Heng noted that the increased cash payouts will cost the government a further $1.1 billion.
Other cash payouts under the Care and Support Package, which were earlier announced, will also be brought forward to June, instead of August.
New Bill to be passed today to help businesses and individuals defer repayment of loans
Tricia Song, Head of Research for Singapore at Colliers International noted that while “Solidarity Budget does not offer additional assistance for private landlords or developers”, she said the new Bill which will be passed today, aims to help businesses and individuals to defer obligations such as rent and loan repayments.
The new Bill will also ensure that property owners pass on the property tax rebate in full to tenants.
“We urge landlords to work hand in hand with tenants, and pass on the earlier-announced 30-100% property tax rebates (which could amount to 3-10% of annual rent) to tenants,” said Song.
Here’s a summary on how the Solidarity Budget will help businesses and individuals:
Selected measures
Measures
3rd support Budget on 6 April
Supplementary Budget on 26 March
Budget on 18 Feb
Beneficiaries
Property tax rebates for qualifying commercial properties including shops and restaurants
100%
15%
Retail malls
Property tax rebate for hotels, serviced apartments, tourist attractions, MICE venues
100%
30%
Hospitality
Property tax rebate for Integrated Resorts
60%
10%
Integrated Resorts operators
Property tax rebate for non-residential properties
30%
None
Industrial, warehouse, office landlords
Rental waivers for non-residential tenants of state properties
Such as hawker centres, JTC, SLA, HDB, URA, BCA, NParks, and PA
+0.5 month for industrial, office and agricultural tenants; rest remained same
0.5 to 3 months
0 to 1 month
Non-residential tenants of government agencies
Deferment of income tax payments for companies and self-employed persons
3 months
None
Industry-wide
Jobs Support Scheme
75% of monthly wages for every local worker in employment, capped at SGD4,600, for month of April
25% of monthly wages for every local worker in employment, capped at SGD4,600, for 9 months til end-2020
None
Industry-wide
Enhanced Jobs Support Scheme for Aviation, Tourism, Food Services, Land Transport, Arts & Culture sector
50- 75% wage offset, capped at monthly wage of SGD4,600, for 9 months til end-2020
None
Industry-wide
Foreign worker levy waiver/ rebate
The monthly foreign worker levy due in April will be waived.
As early as Apr 21, employers will also receive a foreign worker levy rebate of SGD750 for each work permit or S pass holder.
None
None
Industry-wide
Cash payout and grocery vouchers to households
Additional SGD300 cash payout for every Singaporean adult, and one-off payment of SGD600 by 30 April
SGD300-900
SGD100-300
Industry-wide
Source: Colliers International, Ministry of Finance
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Source : proppertyguru.com.sg/Property Market
Read more…Singapore unveils .1bil third support package, known as the Solidarity Budget
