\nIn total, the government is set to commit $59.9 billion, or about 12% of Singapore\u2019s GDP in a battle against the Covid-19 pandemic.
\nFollowing 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 \u201ccircuit breaker\u201d distancing measures that kicks in today (7 April).\u00a0
\nCalled the Solidarity Budget, the third stimulus package will cost a further $5.1 billion.\u00a0
\n\u201cThese measures will impact our workers and businesses severely,\u201d said Deputy Prime Minister Heng Swee Keat as he spoke in Parliament.
\n\u201cAdditional 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.\u201d
\n\u00a0
\nThird budget a first in Singapore\u2019s history
\nThe Solidarity Budget marks the first time the government has released three Budgets in less than two months, after February\u2019s $6.4 billion Unity Budget and the record-breaking $48 billion Resilience Budget on 26 March, reported CNA.
\nTo fund the third Budget, the government had sought President Halimah Yacob\u2019s 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\u2019s GDP in a battle against the Covid-19 pandemic.
\n\u201cThis is an unprecedented budget for extraordinary times,\u201d said Heng, who also serves as Finance Minister.
\n\u201cThe situation remains highly fluid and uncertain. The Government stands ready to provide further support, should it become necessary.\u201d
\n\u00a0
\nSingapore\u2019s GDP to take further hits
\nAnd as Covid-19 continues to spread across the globe, the city-state\u2019s overall GDP is forecasted to \u2018take a further hit\u2019 as the country\u2019s trading partners put up restrictions, curtailing demand for exports.
\n\u201cThe 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,\u201d said Heng.
\n\u201cWe will also help businesses preserve their capacity and capabilities, to resume activities when the circuit breaker is lifted.\u201d
\n\u00a0
\nThe 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.
\nThe first payout under the scheme will also be brought forward to April, with some companies receiving the first tranche next week.
\nThe monthly foreign worker levy due in April will also be waived to ease the companies\u2019 labour costs from hiring foreign workers.
\nEmployers 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.
\n\u00a0
\nIncreased cash handouts to Singaporeans
\nSingaporean 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 \u2013 which consists of the $300 first announced in February\u2019s Care and Support package plus an additional $300.
\nSingaporeans 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.\u00a0
\nHeng noted that the increased cash payouts will cost the government a further $1.1 billion.\u00a0
\nOther cash payouts under the Care and Support Package, which were earlier announced, will also be brought forward to June, instead of August.
\n\u00a0
\nNew Bill to be passed today to help businesses and individuals defer repayment of loans
\nTricia Song, Head of Research for Singapore at Colliers International noted that while \u201cSolidarity Budget does not offer additional assistance for private landlords or developers\u201d, 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.\u00a0
\nThe new Bill will also ensure that property owners pass on the property tax rebate in full to tenants.\u00a0
\n\u00a0
\n\u201cWe 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,\u201d said Song.
\nHere\u2019s a summary on how the Solidarity Budget will help businesses and individuals:
\n\u00a0
\nSelected measures<\/p>\n
Measures<\/p>\n
3rd\u00a0support Budget on 6 April<\/p>\n
Supplementary Budget on 26 March<\/p>\n
Budget on 18 Feb
\n\u00a0<\/p>\n
Beneficiaries<\/p>\n
Property tax rebates\u00a0for qualifying commercial properties including shops and restaurants<\/p>\n
\u00a0<\/p>\n
100%<\/p>\n
15%<\/p>\n
Retail malls<\/p>\n
Property tax rebate\u00a0for hotels, serviced apartments, tourist attractions, MICE venues<\/p>\n
\u00a0<\/p>\n
100%<\/p>\n
30%<\/p>\n
Hospitality<\/p>\n
Property tax rebate\u00a0for Integrated Resorts<\/p>\n
\u00a0<\/p>\n
60%<\/p>\n
10%<\/p>\n
Integrated Resorts operators<\/p>\n
Property tax rebate\u00a0for non-residential properties<\/p>\n
\u00a0<\/p>\n
30%<\/p>\n
None<\/p>\n
Industrial, warehouse, office landlords<\/p>\n
Rental waivers\u00a0for non-residential tenants of state properties
\nSuch as hawker centres, JTC, SLA,\u00a0HDB, URA, BCA, NParks, and PA<\/p>\n
+0.5 month for industrial, office and agricultural tenants; rest remained same<\/p>\n
0.5 to 3 months<\/p>\n
0 to 1 month<\/p>\n
Non-residential tenants of government agencies<\/p>\n
Deferment of\u00a0income tax payments\u00a0for companies and self-employed persons<\/p>\n
\u00a0<\/p>\n
3 months<\/p>\n
None<\/p>\n
Industry-wide<\/p>\n
Jobs Support Scheme<\/p>\n
75% of monthly wages for every local worker in employment, capped at SGD4,600,\u00a0for month of April<\/p>\n
25% of monthly wages for every local worker in employment, capped at SGD4,600, for 9 months til end-2020<\/p>\n
None<\/p>\n
Industry-wide<\/p>\n
Enhanced Jobs Support Scheme for Aviation, Tourism, Food Services, Land Transport, Arts & Culture sector<\/p>\n
\u00a0<\/p>\n
50- 75% wage offset, capped at monthly wage of SGD4,600, for 9 months til end-2020<\/p>\n
None<\/p>\n
Industry-wide\u00a0<\/p>\n
Foreign worker levy waiver\/ rebate<\/p>\n
The monthly foreign worker levy due in\u00a0April\u00a0will be waived.
\nAs early as Apr 21, employers will also receive a foreign worker levy rebate of SGD750 for each work permit or S pass holder.<\/p>\n
None<\/p>\n
None<\/p>\n
Industry-wide<\/p>\n
Cash payout and grocery vouchers to households<\/p>\n
Additional SGD300 cash payout for every Singaporean adult, and one-off payment of SGD600 by 30 April<\/p>\n
SGD300-900<\/p>\n
SGD100-300<\/p>\n
Industry-wide<\/p>\n