[UPDATED] Finances 2020 â€” Measures to Cushion Influence of Covid-19 on Key Sectors
One of many key themes of this yrâ€™s Finances 2020 announcement by Finance Minister Heng Swee Keat is the Covid-19 coronavirus outbreak in Singapore. It got here at an unlucky time, as an financial downturn was lengthy forecasted earlier than the medical emergency hit us.
In accordance with Mr Heng, Singaporeâ€™s financial development was 0.7% in 2019, which is a 10-year low. In his phrases, it’s the â€śweakest itâ€™s been because the 2008 monetary disasterâ€ť. As such, the Ministry of Commerce and Trade has downgraded the GDP forecast to -0.5% to 1.5%.
Unity Finances 2020 measures to cushion impression of COVID-19 on companies and key sectors
The federal government is working onerous to supply reduction for companies and key sectors hit by the coronavirus outbreak. Right here’s an outline of the measures introduced.
Word:Â For the reason that Unity Finances (18 Feb 2020), there have been 2 extra bulletins: theÂ Resilience Finances (26 Mar 2020)Â andÂ Solidarity Finances (6 Apr 2020). This text displays the up to date data.
1. Jobs Assist Scheme (new) â€” up to date 6 Apr 2020
To assist companies retain employees, employers will obtain 75% (beforehand 8% / 25%) to offset month-to-month wages (wage capped at $4,600 per employee, beforehand $3,600) till the top of 2020.
When the Jobs Assist Scheme was first launched throughout the Unity Finances in February, it was solely 8% co-funding for the primary $3,600 of Singaporean employees’ salaries.
Subsequently â€” within the Resilience Finances in March â€” the co-funding was elevated to 75% for aviation and tourism sectors, 50% for meals companies and 25% for everybody else. The wage cap was additionally bumped as much as $4,600.
Most lately, the JSS was enhanced but once more throughout the Solidarity Finances in April. Now, all corporations will get 75% co-funding, no matter sector. It’s because the federal government acknowledges that the majority companies are hit, and never simply these in aviation, tourism and meals.
2. Wage Credit score Scheme (current, enhanced)
Presently, this scheme co-funds wage will increase for Singaporeans incomes as much as $4,000 month-to-month. This might be enhanced to incorporate employees incomes as much as $5,000 as a substitute.
Moreover, the co-funding might be elevated from 15% to twenty% in 2019 and 2021.Â That is anticipated to assist over 700,000 Singaporeans.
3. 25% Company earnings tax rebate (capped at $15,000)
Mr Heng additionally introduced a 25% company earnings tax rebate, capped at $15,000 per firm. This may price the federal government $400 million.
4. $800 million to assist frontline businesses combating COVID-19
Mr Heng introduced that in whole, $4 billion might be spent on the Stabilisation and Assist bundle for employees and companies.
Of this, $800 million will go to the frontline businesses (the majority of it going to the Ministry of Well being).
5. Focused reduction for key sectors impacted:
Replace (26 Mar 2020): With the newly introduced supplementary resilience finances 2020, qualifying industrial properties like motels, serviced residences, vacationer sights, outlets and eating places is not going to have to pay property tax (as a substitute of the beforehand introduced 15% to 30% rebate).
Companies in different non-residential properties (like places of work and industrial buildings) may also obtain a 30% property tax rebate for 2020.
Aviation â€” 15% property tax rebates for Changi Airport
Of the impacted companies, aviation was highlighted as a key sector. Therefore, Chang Airport will obtain 15% property tax rebates.
Associated capabilities like floor dealing with brokers and cargo brokers may also obtain help.
Level-to-point transport â€”$77 million help bundle for taxi & non-public rent drivers
The Ministry of Transport beforehand introduced this particular reduction fund to assist taxis and personal rent operators throughout the outbreak.
Mr Heng highlighted this once more, sharing that the federal government is contributing $45 million to this trigger.
Tourism â€” 30% property tax rebate
Inside tourism, there might be a 30% rebate for lodging and performance room elements of motels, serviced residences and MICE venues.
That, plus 15% and 10% rebates for worldwide cruise and regional ferry terminals, and built-in resorts respectively.
Meals and retail companies â€” rental waivers and property tax rebates
Stallholders in hawker centres and markets by NEA will get 3-month rental waivers (up from the beforehand introduced 1 month), whereas tenants underneath different businesses likeÂ HDB will obtain 2-month waivers (up from beforehand introduced 0.5 months).
There’ll even be a 15% property tax rebate for these in retail (for qualifying non-public properties).
Extra basic measures to assist with money stream
The majority of the measures are to assist companies in these focused industries, however typically, Mr Heng additionally introduced the next to additional assist companies with money stream:
Firstly, enterprises might be given quickerÂ write-down of their investments in vegetation and equipment, and renovation and refurbishment.
Secondly, underneath the enterprise financing scheme, the utmost working capital mortgage quantum might be raised from $300,000 to $600,000, with the federal government’s risk-share elevated to 80% (beforehand 50% to 70%).
What do you consider these measures to deal with Covid-19? Inform us within the feedback beneath.Â
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