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Two women wearing protective face masks, amid concerns over the spread of the COVID-19 coronavirus, walk on the street in Singapore on February 14, 2020. Photo: AFP

Singapore Budget 2020: the list of promises

  • The government’s US$76 billion plan includes support for businesses, workers and households to cope with the coronavirus outbreak
  • Other measures include a cushion for an impending GST hike, incentives to hire midcareer workers, and a flood protection fund with an initial injection of US$3.6 billion
With Singapore in the grip of a coronavirus outbreak and the economy expected to take a beating, Deputy Prime Minister Heng Swee Keat on Tuesday unveiled a “unity Budget” to help the city state weather the uncertainties ahead with a slew of measures for families, workers, elderly citizens and businesses.
The Singapore government’s S$106 billion (US$76 billion) plan comprised ministries’ expenditures, special transfers and fund top-ups, and included two packages totalling S$5.6 billion to help firms, workers and households cope with the outbreak crisis.
Writing on Facebook on Tuesday evening, Prime Minister Lee Hsien Loong said the 2020 Budget carried extra significance because it offered “critical support” for Singapore’s economy and its people during the virus outbreak.

“We are able to do this because of our fiscal prudence and discipline over many years. Together, we have put aside enough to cope with a rainy day like this,” he said.

Heng Swee Keat, Singapore’s finance minister, delivered the Budget speech on February 18, 2020. Photo: Bloomberg

In his Budget speech, which lasted more than two hours, Heng said Singapore would face more complex challenges in future and could succeed only if everyone worked together.

With multifaceted challenges confronting the country, he said that solutions would come in all shapes and forms from every segment of society.

“We must overcome these challenges and find solutions together,” said Heng, who is also Finance Minister.

Visitors seen in protective face masks at the Singapore Zoo on February 18, 2020. Photo: AFP

Supporting individuals

S$1.6 billion ‘care and support’ package: To help Singaporeans navigate a slower economy and the continuing coronavirus outbreak, the authorities are rolling out a slew of measures, including a one-time cash payout of between S$100 and S$300 for Singaporeans aged 21 and older. Singaporeans who are 50 and above will also have S$100 topped up into their PAssion cards this year.

• Offset package to cushion Goods and Services Tax (GST) hike: This S$6 billion package will help Singaporeans when the GST is raised by 2025. The package will provide S$700 to S$1,600 to every adult Singaporean over five years. Heng announced on Tuesday that the GST hike – from 7 to 9 per cent – would not take effect in 2021, owing to Singapore’s weaker economy. It will happen sometime between 2022 and 2025.

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More help for students

More support for students from lower-income families: The yearly bursary quantum for pre-university students will go up to S$1,000, from S$900, under the Education Ministry’s financial assistance scheme. There will also be higher transport subsidies for all students and more help with school meals for those in secondary school.

More bursaries for full-time students at the Institute of Technical Education (ITE): From the 2020 academic year, full-time ITE students from low- and middle-income households will benefit from a cash bursary boost by up to S$200 a year. Those from households in the lowest-income tier will receive a full fee subsidy in addition to the cash bursary.

More help for preschoolers: The Government will double spending on the early-childhood sector to more than S$2 billion a year in the next few years. There will be higher preschool subsidies across all eligible income groups, for instance. The Government will also increase the share of government-supported preschool places from over 50 per cent to 80 per cent by about 2025.

A worker wears a mask in precaution of the coronavirus outbreak in Singapore’s Central Business District. Photo: Reuters

Helping workers

S$500 SkillsFuture Credit top-up: Singaporeans aged 25 and older will receive a one-off SkillsFuture Credit top-up of S$500, which they can use from Oct 1. Unlike the previous S$500 credit given to Singaporeans in 2016, which had no expiry, this top-up credit will expire by the end of 2025.

A leg-up for mid-career workers: A package for mid-career workers will help them move into new jobs. It includes a hiring incentive – employers who hire local jobseekers aged 40 and older through a reskilling programme will receive 20 per cent salary support for six months, capped at S$6,000. Every Singaporean aged 40 to 60 this year will also receive an extra S$500 SkillsFuture Credit top-up.

Other measures to help workers: A S$1.3 billion job support scheme will be rolled out to benefit firms and their more than 1.9 million local employees. The Government will fork out 8 per cent of the wages of these workers, up to S$3,600 monthly for three months. It will also provide higher co-funding for wage increases of Singaporean workers under the Wage Credit Scheme.

People walk along the corridor of a wet market in Singapore on February 18, 2020. Photo: AFP

Lending a hand to seniors

Dollar-for-dollar top-up for those with less Central Provident Fund (CPF) savings: To help older middle- to lower-income Singaporeans meet their retirement needs, the Government will match every dollar of cash top-up made to their CPF Retirement Accounts, capped at S$600 yearly, under the new Matched Retirement Savings Scheme. Singaporeans aged 55 to 70 who have not been able to set aside savings in the prevailing Basic Retirement Scheme will be eligible for the scheme from next year to 2025. About 435,000 Singaporeans will benefit.

Higher cash payouts and other improvements under Silver Support Scheme: Cash payouts under the Silver Support Scheme, which helps the bottom 20 per cent of Singaporeans aged 65 and above, will rise by 20 per cent, or by S$150 every quarter. Among other improvements, the eligibility criteria for Silver Support will also be broadened so that more seniors will be covered. About 100,000 more seniors will benefit from the improved scheme next year.

Supporting workers who are seniors: To support seniors who wish to work longer, the Government will roll out a “senior worker support” package, which includes measures such as a Senior Employment Credit. From 2021, this will provide employers with wage offsets when they employ Singaporean workers who are 55 and older, with support tapering over time as the retirement and re-employment ages are gradually raised.

Retail workers at a store in Singapore’s Jewel Changi Airport mall. Photo: EPA-EFE

Lifting businesses

S$8.3 billion kitty to support firms: The Government will set aside this amount over the next three years, including sums that were allocated in previous years, to help companies – from start-ups to small- and medium-sized enterprises – transform and grow. For instance, an extra S$300 million will be set aside for deep-tech start-ups – which deal with emerging technology including pharmaceutical bioinformatics, medical technology and advanced manufacturing – to better access capital, expertise and industry networks.

Measures to help businesses hit by the coronavirus crisis: A 30 per cent property tax rebate will be granted this year to accommodation and function-room components of licensed hotels and serviced apartments, as well as venues for meetings, incentives, conventions and exhibitions. International cruise and regional ferry terminals will receive a 15 per cent property tax rebate, and integrated resorts will get a 10 per cent rebate. As for the hard-hit aviation sector, there will be rebates on aircraft landing and parking charges, assistance for ground-handling agents, and rental rebates for shops and cargo agents at Changi Airport. Food services and retail businesses will also receive rental waivers or rebates.

Singapore will set up a Coastal and Flood Protection Fund with an initial injection of US$3.6 billion. File photo: AFP

Fighting climate change

Rebate for owners of fully electric cars and taxis: From January next year, drivers who buy these vehicles will receive a rebate on their additional registration fee in an attempt to encourage cleaner and more environmentally friendly vehicles. Buyers will get a rebate of up to 45 per cent on the additional registration fee – a tax paid when a vehicle is registered – capped at S$20,000.

Expanding public charging points for electric vehicles: There are 1,600 or so electric-vehicle charging points in Singapore now. This number is set to jump to 28,000 chargers by 2030 at public car parks island-wide.

Other climate-saving steps: A Coastal and Flood Protection Fund will be set up with an initial injection of S$5 billion (US$3.6 billion). This will be topped up whenever Singapore’s fiscal situation allows. A S$1 billion sum will be committed to research in urban solutions and sustainability, focusing on renewable energy and cooling Singapore, for example.

Read the original article at Today Online.

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