Summary of Fortitude Budget 2020 in Singapore

Dear Reader,

Fortitude Budget 2020 SummaryWelcome to our Fortitude Budget 2020 summary. This is the fourth round of Budget measures to help Singapore through the COVID-19 pandemic.

The following government support measures are announced by Minister for Finance, Mr Heng Swee Keat in Parliament on Tuesday, 26 May 2020.

 

 

KEEPING WORKERS EMPLOYED

Enhancements to Jobs Support Scheme (JSS)

  • Extended for 1 more month to cover wages in August 2020, bringing total coverage to 10 months of wages (25% to 75% of the first $4,600 of wages for each local employee)
  • For firms that are not allowed to resume operations, Government will continue providing wage support at 75% until August 2020 or when allowed to reopen, whichever is earlier
  • Increased support for some affected sectors (e.g. aerospace, retail, marine and offshore) from 25% to 50% or 75%

 

SGUNITED JOBS & SKILLS PACKAGE

SGUnited Jobs & Skills PackageSGUnited Jobs

  • Aim to create 40,000 jobs by end-2020
  • Public sector to offer 15,000 jobs
  • Private sector to offer 25,000 jobs

SGUnited Traineeships

  • 21,000 traineeships for local first-time job seekers (Applications will open from 1 June 2020)
  • 4,000 traineeships for local mid-career jobseekers to learn new skills and start new careers

SGUnited Skills

  • Training courses for about 30,000 jobseekers to upgrade their skills while looking for a job
  • Training allowance of $1,200 per month for course duration (between 6 to 12 months) to cover basic expenses
  • Rolled out progressively from July 2020

Hiring Incentive

  • Hiring incentive for employers which hire local workers who have completed eligible traineeship and training programmes
  • Expanded to cover workers of all ages
Age of Eligible worker Amount of Incentive Capped at
Under 40 20% of monthly salary for 6 months $6,000 in total
40 and above 40% of monthly salary for 6 months $12,000 in total

 

 

HELPING WITH CASH FLOW, COSTS & CREDIT

Helping With Cash Flow, Costs & CreditForeign Worker Levy Waiver & Rebate

  • Extended by up to 2 months for businesses that are not allowed to resume operations after the circuit breaker
  • 100% waiver and $750 rebate in June 2020
  • 50% waiver and $375 rebate in July 2020

Deferment of Higher CPF Contribution Rates

  • Increase in CPF contribution rates for senior workers deferred by 1 year, from 1 January 2021 to 1 January 2022

Expanding Rental Relief for SMEs

  • $2 billion in cash grants to help SME tenants with rental costs
  • Including the Property Tax Rebate for 2020, Government will
  • Offset 2 months’ rental for qualifying SME tenants of commercial properties
  • Offset 1 month’s rental for qualifying SME tenants of industrial and office properties

Rental Relief for Government Tenants

  • Additional rental waivers for commercial and other non-residential tenants of government properties:
Tenant type Previous New Total
Stallholders of hawker centres and markets 3 months 2 months 5 months
Commercial 2 months 2 months 4 months
Industrial, office and agricultural 1 month 1 month 2 months

 

Financing Support for Promising Startups

  • So far, $4.5 billion of loans catalysed through Government financing schemes (e.g. Temporary Bridging Loan Programme, Enterprise Financing Scheme)
  • $285 million of additional financing support for promising startups by co-investing with the private sector
  • On top of $300 million set aside under the Unity Budget for deep-tech startups

 

DIGITAL TRANSFORMATION & INNOVATION

Digital Transformation & InnovationAdopting e-Payments

  • Bonus of $300 per month over 5 months to encourage adoption of e-payments by stallholders in
  • Hawker centres
  • Wet markets
  • Coffee shops
  • Industrial canteens

Digital Resilience Bonus

  • Pilot starting with Food Services and Retail sectors
  • Payout of up to $5,000 to help businesses digitalise with PayNow Corporate, e-invoicing, business process or e-commerce solutions
  • Additional payout of $5,000 for businesses that use advanced solutions

National Innovation Challenges

  • Encourage partnership with the private sector for industry­led solutions to reopen Singapore safely

 

HELPING WITH IMMEDIATE NEEDS

Helping With Immediate NeedsCOVID-19 Support Grant (CSG)

  • Additional $800 million set aside for CSG to continue supporting Singaporeans and Permanent Residents (PRs) who need help
  • Support for Singaporeans and PRs who due to COVID-19
  • Have lost their jobs;
  • Are placed on no-pay leave; or
  • Face significantly reduced salaries
  • Up to $800 per month for 3 months for eligible recipients

 

HELPING WITH HOUSEHOLD EXPENSES

Solidarity Utilities Credit

  • One-off $100 Solidarity Utilities Credit for each household with at least one Singapore Citizen
  • Covers all property types
  • Will be credited in households’ July or August 2020 utilities bills with SP Group
  • Comes on top of the Solidarity Payment and Care & Support Package

 

FOSTERING DIGITAL INCLUSION

Fostering Digital InclusionFor Students

  • Accelerated timeline for all secondary school students to own a digital learning device

For Seniors

  • Seniors Go Digital movement to build digital literacy through one-to-one coaching and small-group learning
  • Financial support for lower-income seniors to own digital devices

 

LOOKING AFTER ONE ANOTHER

Enhanced Fund-Raising (EFR) Programme

  • Dollar-for-dollar matching on eligible donations raised between 1 April 2020 to 31 March 2021, capped at $250,000 matching per charity
  • Additional $100 million top-up to strengthen support for charities

lnvictus Fund

  • $18 million top-up to help social service agencies maintain services, retain staff, and adopt technology

Fortitude Budget 2020 Summary