SGÂ Budget2020Â Schemes
The Singapore government has released four Budgets in 2020 to help businesses through the COVID-19 crisis – the Unity Budget (February 18), the Resilience Budget (March 26), the Solidarity Budget (April 6), the Fortitude Budget (May 26), and the Ministerial Statement of August 17.
Here, we’ve consolidated the key schemes, with details that may be of particular interest to MICE and Events businesses, in the four budgetary categories – Cashflow, Manpower Support, Skills Upgrading, and Others.
Enterprise Financing Scheme
Temporary Bridging Loan
The Temporary Bridging Loan Programme (TBLP) provides access to working capital for business needs.
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As announced at Solidarity Budget 2020, eligible enterprises may borrow up to $5 million under the TBLP, with the interest rate capped at 5% p.a., from Participating Financial Institutions (PFIs). The Government will provide 90% risk-share on these loans for new applications initiated from 8 April until 31 March 2021. Eligible enterprises under the TBLP may also apply for up to one year deferral of principal repayment to help manage their debt.
Enterprises can apply directly to the PFIs.
SME Working Capital
To help SMEs with their working capital needs, the maximum loan quantum has been raised from $300,000 to $1 million. Risk-share was also increased to 90% (from 50% and 70% for young companies) for new applications initiated from 8 April 2020 until 31 March 2021. 
Enterprises under the Enhanced EFS-WCL may apply for up to one year deferral of principal repayment to help manage their debt.
Trade Loan
The EFS Trade Loan covers enterprises’ domestic and overseas transactions. It also complements the current Loan Insurance Scheme (LIS) by insuring loans which are beyond the capacity of current LIS insurers. Eligible enterprises may borrow up to $10 million with the interest rate subject to the PFIs’ assessments of risks involved.
Finance trade needs, including:
Inventory / stock financing
Structured pre-delivery working capital (revolving working capital)
Factoring (with recourse) / bill of invoice / AR discounting
Overseas working capital loan
Loan Insurance Scheme
Enterprises can secure short-term trade financing loans via the Loan Insurance Scheme (LIS) from Participating Financial Institutions (PFI) for these purposes:
Inventory/ stock financing facility
Structured pre-delivery working capital
Factoring/ bill or invoice or accounts receivable discounting with recourse
Overseas Working Capital Loan
Banker's Guarantee
Loans are insured by commercial insurers which co-share loan default with the PFI in the event of enterprise insolvency, with a portion of the insurance premium supported by the government. As announced at Supplementary Budget 2020, support for the LIS insurance premium will be increased to 80% (from 50%) until 31 March 2021.
Defer Payment of Principal on Secured SME Loans
SMEs may apply to their lender to defer principal repayment of their loan until 31 December 2020. SMEs will also be able to extend the tenure of their loans by up to the corresponding principal deferment period if they wish.
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This relief will be available to SMEs that continue to pay interest and are in good standing with their banks and finance companies (not more than 90 days past due as of 6 April 2020).
Freezing of Government Fees and Charges
As part of the Resilience Budget, fee charges for government-provided services will not increase for one year, from 1 April 2020 to 31 March 2021. Fees and charges will continue to be collected during this period, but at the current rates.
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Some examples: LTA and STB licence fees, SFA food import permits, ACRA company registration fees, NEA inspection fees, and fees for certification of government documents.
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If you have any questions on specific fees and charges, please approach the relevant government agencies.
Passing on of Property Tax Rebate Benefit or Provision of Additional Support to Tenants
As part of the Resilience Budget announced on 26 March 2020, owners of qualifying non-residential properties ("qualifying properties") are granted a property tax rebate of up to 100% on their property tax payable from 1 January 2020 to 31 December 2020.
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Owners of qualifying properties are required to unconditionally and fully pass on to their tenants the property tax rebate that is attributable to the rented property based on the period it was rented out.
Property Tax Rebate
Qualifying non-residential properties will be granted property tax rebate for the period of 1 Jan 2020 to 31 Dec 2020, ranging from 30% to 100%.
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Under the COVID-19 (Temporary Measures) (Amendment) Act passed on 5 June 2020, to provide relief for Small and Medium Enterprises (SMEs) and Non-Profit Organisations (NPOs) operating in qualifying non-residential properties, owners of such qualifying properties will be granted government cash grants. These property owners are required to provide rental relief through a waiver of rent for their eligible SME and NPO tenant-occupiers.
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Property owners are not required to submit any claims for the rebate. The rebate notices have been issued and were posted to property owners in April 2020.
Manpower Support
Job Support Scheme
The JSS provides wage support to employers to help them retain their local employees (Singapore Citizens and Permanent Residents) during this period of economic uncertainty. Under the JSS, the Government co-funds between 10% to 50% of the first $4,600 of gross monthly wages paid to each local employee in the subsequent 7-month period from September 2020 to March 2021.
• 75% JSS Support : Tourism, Aerospace, Aviation Sectors
• 30% JSS Support: Arts & Entertainment, Food Services, Land Transport, Marine and Offshore, and Retail sectors
• 10%: Other remaining sectors
• 10% for 4 months till December 2020: Sectors that are managing well, such as ICT
Hiring Incentive
The Hiring Incentive was introduced as part of the SkillsFuture Mid-Career Support Package (SMCSP) in the February 2020 Unity Budget, for employers who hire local workers aged 40 and above through eligible reskilling programmes. This includes:
20% of monthly salary support for 6 months, capped at $6,000 in total, when hiring reskilled workers under the age of 40
40% of monthly salary support for 6 months, capped at $12,000 in total, when hiring workers aged 40 and above
Enabling Employment Credit
The Enabling Employment Credit (EEC) is a new wage offset scheme designed specially to support employment for Persons with Disabilities (PWDs), after the Special Employment Credit and Additional Special Employment Credit expires in end 2020. The EEC will be available for five years from 2021 to 2025.
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The EEC will be given to employers who hire Singaporean PWDs earning below $4,000 a month.
Special Employment Credit (SEC)
The Special Employment Credit (SEC) was introduced as a Budget Initiative in 2011 to support employers, and to raise the employability of older Singaporeans. It will provide wage offsets to employers hiring Singaporean workers aged 55 and above earning up to $4,000. The grant will be valid until the end of 2020.
Self-Employed Person Income Relief Scheme
As part of the Solidarity Budget, the Ministry of Manpower (MOM) will enhance the Self-Employed Person (SEP) Income Relief Scheme (SIRS) to broaden support for SEPs affected by COVID-19 and tide them through this period of economic uncertainty. With these enhancements, SEPs will receive three cash payments of $3,000 each in May, July and October 2020.
Skills Upgrading
SkillsFuture Enterprise Credit (SFEC)
The SkillsFuture Enterprise Credit (SFEC) encourages employers to invest in enterprise transformation and capabilities of their employees. Eligible employers will receive a one-off S$10,000 credit to cover up to 90% of out-of-pocket expenses on qualifying costs for supportable initiatives, over and above the support levels of existing schemes.
Enhanced Training Support Package and Enhanced Absentee Payroll
The Enhanced Training Support Package (ETSP) is part of the Stabilisation and Support Package and supplementary Resilience Budget. The ETSP will be time-limited to cover eligible courses in selected sectors starting before 1 Jan 2021. This is to help selected sectors tide over the economic impact of COVID-19, and to help them position themselves for subsequent recovery.
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The enhanced absentee payroll rates will be further extended to cover all sectors at 90% of hourly basic salary, capped at $10 per hour, and enhanced Course Fee support at up to 90% of course fees. This will apply to all courses that are eligible for absentee payroll funding. Employers are advised to check with the training providers on the courses that are eligible for absentee payroll funding.
NTUC Training Fund (SEPs)
Leveraging the government’s Self-Employed Person (SEP) Support Scheme and co-funded by the government and NTUC, the NTUC Training Fund (SEPs) now allows SEPs to earn as they train. It also aims to support SEPs in deepening and/or acquiring new competencies during this lull period, in preparation for when the economy recovers.
The NTUC Training Fund (SEPs) is applicable for courses under the SkillsFuture Series and selected sector-specific training courses. The courses listed here are eligible for course fee subsidy, SkillsFuture Credit, and Training Allowance of at least $10 per hour (from 1 May 2020).
Others
Double Tax Deduction for Internationalisation Scheme
To encourage internationalisation, businesses may claim automatic double tax deduction on qualifying expenses incurred from 1 Apr 2012 to 31 Dec 2025 of up to $150,000 per year of assessment, on qualifying activities.
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Businesses may also apply to Enterprise Singapore or Singapore Tourism Board (STB) for approval to claim double tax deduction on a case by case basis.
Tourism Product Development Fund (TPDF)
The Tourism Product Development Fund (TPDF) supports the creation, development of new tourism products and/or major rejuvenation of existing tourism products to increase Singapore destination attractiveness to visitors. Successful applicants will receive funding support for qualifying costs, subject to the scope of the project and STB's evaluation of the merits of the project.
Rental Relief under the COVID-19 (Temporary Measures) Act and COVID-19 (Temporary Measures) (Amendment) Act 2020
The Amendment Act provides a rental relief framework (in the form of rentail waiver and a repayment scheme for rental arrears) for Small and Medium Enterprises (SMEs) and enhances the relief available for businesses, organisations and individuals who are unable to fulfil their contractual obligations because of COVID-19.
The Act covers relevant contractual obligations that are to be performed on or after 1 February 2020, for contracts that were entered into before 25 March 2020.
DISCLAIMER: Please refer to the respective government agencies website for updated information
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SACEOS is the trade association for MICE and Events in Singapore
1 Raffles Boulevard, Level 3 Venue Management Office, Suntec City, S039593
secretariat@saceos.org.sg
+65 9732 3941