26 Mar 2020
Ref No.: 260320 (2)
UEN: S97SS0046G
Dear Valued ASPRI Members,
Overcoming COVID-19 Together: Supplementary Budget 2020
Since Budget 2020, COVID-19 has accelerated into a global pandemic. The global economy has been hit and we are affected. To meet these challenging times, on 26 March 2020 the government announced a $48 billion resilience budget to support Singaporeans and businesses and emerge stronger.
Please see below for the key highlights from the announcement. To read the full supplementary budget booklet, please refer to the appended or click here: https://www.singaporebudget.gov.sg/budget_2020/resilience-budget/supplementary-budget-measures/supplementary-budget-booklet-eng
Together as one, we will weather this storm.
1/4: SUPPORT OUR WORKERS AND LIVELIHOODS
A) Enhanced Jobs Support Scheme (JSS)
• Government will help employers by paying 25% on the first $4,600 of monthly salaries, up from 8% on the first $3,600 previously
• JSS will be for 9 months till end-2020, up from 3 months previously
B) Enhanced Wage Credit Scheme (WCS)
• Additional $500m for employees’ wage increases, on top of $600m disbursed in March 20201
1WCS was enhanced in Budget 2020. The March 2020 payout was based on Budget 2019 parameters. A further WCS payout in June 2020 will comprise additional wage credits arising from Budget 2020 enhancements.
2/4: STABILISE OUR ECONOMY AND BUSINESSES
A) Deferment of Income Tax Payments
• Automatically defer income tax payments for 3 months for companies
Companies: deferment of payments due in April to June 2020
B) Freeze All Government Fees & Charges
• Freeze all government fees and charges for 1 year, from 1 April 2020 to 31 March 2021
C) Enterprise Financing Scheme (EFS)
• Maximum loan quantum of EFS-Trade Loan increased from $5m to $10m Government’s risk-share raised to 80%
• Maximum loan quantum of EFS-SME Working Capital Loan increased from $0.6m to $1m
D) Loan Insurance Scheme
• Subsidy for loan insurance premium raised to 80%
E) Temporary Bridging Loan Programme
• Expanded to cover all sectors and maximum supported loan raised from $1m to $5m
3/4: BUILD RESILIENCE IN OUR SOCIETY
A) Enhanced Support for Enterprises
• SMEs Go Digital enhanced to include more digital solutions for business continuity
• Up to 90% and 80% support under Enterprise Development Grant (EDG) and Productivity Solutions Grant (PSG), respectively
B) Broader Range of Safe Distancing Measures
• Help for employers and households implementing mandatory public health measures
C) Stepping Up Good Public Hygiene
• Boost SG Clean campaign to encourage higher levels of personal and public hygiene
• Co-funding for businesses undertaking professional cleaning of premises with a confirmed COVID-19 case
4/4: DEPLOY OUR STRATEGIC ASSET
A) Funding Extraordinary Measures for COVID-19
• The President has given in-principle support to draw on Past Reserves to combat COVID-19
(Job Support Scheme, Self-Employed Person Income Relief Scheme, Temporary Bridging Loan Programme, Enterprise Financing Scheme, Aviation Support Package)
• If needed, the Government is prepared to ask the President for a further draw on Past Reserves