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A general view of Singapore’s financial district on Tuesday. Photo: AFP
AsiaSoutheast Asia

Coronavirus: what Singapore’s US$65 billion in pandemic stimulus will be spent on

  • The city state on Tuesday unveiled its fourth set of financial measures this year for businesses and households hit by the coronavirus pandemic
  • A sum equalling one-fifth of GDP has now been committed to economic stimulus, with the government drawing down S$52 billion from fiscal reserves
Coronavirus pandemic: All stories
Kok Xinghui
Kok Xinghuiin Singapore
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Singapore unveiled a new S$33 billion (US$23.25 billion) stimulus package on Tuesday with a specific focus on saving jobs amid the coronavirus pandemic.

This is its fourth set of financial measures this year for businesses and households whose livelihoods have been affected by border closures globally and a partial lockdown in the city state.

It means the government’s total fiscal injection will be a staggering S$92.9 billion – almost one-fifth of the country’s S$500 billion economy. Only Germany and Japan are ahead of Singapore when it comes to pandemic stimulus packages as a percentage of GDP, at 31.6 per cent and 19.6 per cent, respectively.

The government has so far drawn down S$52 billion from Singapore’s fiscal reserves, estimated to be worth well over S$1 trillion, to fund the packages.

Here’s where the funds are going:

February 18: ‘Unity Budget’ S$6.4 billion

  • S$800 million health care package
  • S$4 billion for businesses and workers, including a Job Support Scheme to offset 8 per cent of the first S$3,600 of workers’ monthly wages until?
  • S$1.6 billion for households to tide them over, including a cash payout to adult Singaporeans ranging from S$100 to S$300
  • Cabinet ministers as well as political office holders pledged to take a one-month wage reduction
A man passes a closed off shopping centre amid the coronavirus outbreak in Singapore. Photo: Reuters

March 26: ‘Resilience Budget’ S$48.4 billion, S$17 billion drawn from reserves

  • Jobs Support Scheme increased to 25 per cent of the first S$4,600 of workers’ monthly wages for a nine-month period, increasing to 50 per cent for those in the food services sector and 75 per cent for those in the aviation and tourism sectors
  • S$1.2 billion set aside for self-employed workers to receive monthly payments of S$1,000 for nine months
  • Maximum cash payout for all adult Singaporeans tripled from S$300 to S$900
  • S$350 million to help the aviation industry with rebates on landing and parking charges, as well as rental relief for airlines, ground handlers and cargo agents
  • A property tax holiday until the end of the year for all hotels, restaurants, shops and tourist attractions
  • Cabinet ministers as well as political office holders increased their pay cut to three months
A sign informing people about Singapore’s social distancing measures is seen at Raffles Place. Photo: AFP

April 6: ‘Solidarity Budget’ S$5.1 billion, S$4 billion drawn from reserves

  • Jobs Support Scheme goes up to 75 per cent of the first S$4,600 of all local workers’ monthly wages for the month of April
  • Foreign worker levies waived for April
  • An additional S$300 handout for all adult Singaporeans
  • Broader eligibility criteria introduced so more self-employed workers qualify for the monthly payments of S$1,000 for nine months
  • New laws to make sure property owners pass on tax rebates to tenants

April 21: S$3.8 billion economic stimulus alongside extension of lockdown

  • Additional Jobs Support Scheme payout offsetting 75 per cent of the first S$4,600 of all local workers’ monthly wages added for May
  • Foreign worker levies waived for May
  • Covid-19 Support Grant to give those who lose their jobs because of the crisis S$800 a month for three months
A woman wearing a face mask walks through Raffles Place in Singapore. Photo: AFP

May 26: ‘Fortitude Budget’ S$33 billion, S$31 billion drawn from reserves

  • Jobs Support Scheme extended by one month until November, with firms that cannot reopen – such as shops, gyms and cinemas – to get 75 per cent wage support until August or when they are allowed to reopen
  • S$2 billion for the SGUnited Jobs and Skills Package to create 40,000 jobs, 25,000 traineeships and 30,000 skills training opportunities
  • S$800 million for the Covid-19 Support Grant to give to those who lose their jobs because of the crisis
  • S$18 million for social service agencies to maintain service continuity, retain staff, and adopt technology
  • S$13 billion in the Contingencies Funds so the government can respond quickly to unforeseeable developments arising from the pandemic
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