Supplementary Budget For Businesses - 28 May 2020
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Supplementary Budget For Businesses 28 May 2020
The Supplementary Budget will save jobs and help enterprises
overcome immediate challenges, in response to COVID-19.
Supplementary Budget will help you to:
Retain & Develop
Manage cashflows Deepen capabilities
Talent
• Enhanced Enterprise Financing Schemes • SMEs Go Digital • Enhanced Jobs Support Scheme
(Working Capital Loan, Trade Loan) • Bonus for adopting e-payments • Enhanced Wage Credit Scheme
• Enhanced Temporary Bridging Loan • Digital Resilience Bonus • SGUnited Traineeships
• Enhanced Loan Insurance Scheme • E-invoicing Registration Grant
• Deferment of Income Tax payments and higher • Enhanced Enterprise Development
CPF contribution for senior workers Grant
• Freeze on increases of all government fees & • Enhanced Productivity Solutions
charges Grant
• Enhanced Property Tax Rebates • Enhanced Training Support
• Extended Rental Relief • Enhanced SG Together Enhancing
• 6 months relief from fulfilling contractual Enterprise Resilience (STEER)
obligations
• Defer principal payment on secured SME loans
2
• Lower interest on SME loans
• FWL Waiver + Rebate
Your business is badly affected by
COVID-19.
You need to address immediate
cash flow concerns to keep your
business afloat.
How can you leverage on the
Budget to manage cash flow
issues?
Manage 3
cashflowsManage
1 Enhanced Enterprise Financing cashflows
Schemes
Working Capital Loan Trade Loan
• Open to SG SMEs from ALL sectors • Open to SG enterprises from ALL sectors
with less than S$500mil annual revenue
• $1m max loan quantum
• Max loan quantum raised to $10m per
• Borrowers may request for a 1-year borrower group
deferral of principal repayment, subject
to the banks’ assessment.
For more info, please visit ESG website From 1 April 2020 – 31 March 2021
4Manage
2 Enhanced Temporary Bridging Loan cashflows
Programme
• Expanded to cover SG SMEs and Non-SMEs from ALL sectors
• Eligible enterprises can borrow up to $5 million per borrower group from Participating
Financial Institutions (PFIs), with interest rate capped at 5% per annum.
• Borrowers may request for a 1-year deferral of principal repayment, subject to the
banks’ assessment.
For more info, please visit ESG website From 1 April 2020 – 31 March 2021
5Manage
3 Enhanced Loan Insurance Scheme cashflows
• Open to SG SMEs from ALL sectors
• Raised Government’s subsidy on insurance premium to 80%
For more info, please visit ESG website From 1 April 2020 – 31 March 2021
6Manage
4 More support on SME loans cashflows
a. Secured Term Loans, on opt-in basis:
• Defer payment of principal and pay only interest for up to 9 months
• Extend loan tenure by up to corresponding principal deferment period
b. Unsecured Term Loans
• Lower interest on ESG’s WCL and TBL by Banks and Finance Companies that
tap on MAS funding
c. Pay enterprises’ general insurance premium in instalments
For more info, please visit MAS website 7Manage
5 Deferment of Income Tax payments cashflows
Automatically defer income tax payments for 3 months, for companies and self-
employed persons (SEPs)
• Companies: deferment of payments due in April – June 2020
• SEPs: deferment of payments due in May – July 2020
For more info, please visit IRAS website
6 Deferment of higher CPF contribution for senior
workers by 1 year, to 1 Jan 2022
8Manage
Freeze increase of all Govt fees & cashflows
7 charges for 1 year
From 1 April 2020 – 31 March 2021
For more info, please visit IRAS website
8 Enhanced Property Tax Rebates
• COVID-19 (Temporary Measures) Bill to ensure pass-through of PTR from property
owners to tenants
• 100% rebate for qualifying commercial properties
• 60% rebate for the Integrated Resorts
• 30% rebate for other non-residential properties From 1 Jan 2020 – 31 December 2020
9Manage
9 Expanded Rental Relief for SMEs cashflows
• Rental cash grants for SME tenants in privately owned non-residential properties. Cash
grants will automatically be disbursed to property owners who are required to pass on
benefits to SME tenants. Cash grants amounts to:
• ~0.8 months to tenants of qualifying commercial properties
• ~0.64 months to tenants of qualifying industrial/office properties
• 5 months’ rental waiver for hawkers
• 4 months’ rental waiver for commercial tenants in Govt properties
• 2 months’ rental waiver for industrial, office and agricultural tenants of Govt agencies
10Manage
10 6 months relief from fulfilling cashflows
contractual obligations
Leases or licences for non- Construction contract Events contract
residential property or supply contract
Tourism-related contract Certain loan facilities granted by a
bank or a finance company to SMEs
*For contractual obligations that come due after 1 Feb 2020. For more info, please visit MinLaw website 11
The Bill will not cover any contracts that are entered into after 24 March 2020.Manage
11 Foreign Worker Levy cashflows
• For all businesses in April and May 2020:
• Waiver of monthly Foreign Worker Levy
• Foreign Worker Levy Rebate of $750 from levies paid this year, for
each Work Permit or S Pass holder
• For businesses that are unable to resume operations after 2 June 2020*:
• 100% FWL waiver and $750 rebate in June 2020
• 50% FWL waiver and $375 rebate in July 2020
*Includes all businesses in construction, marine and offshore and process sectors
12
For more info, please visit MOM websiteTo prepare for economic
rebound, you hope to take this
opportunity to deepen
capabilities.
Perhaps adopting more digital
solutions?
How can you leverage on the
Budget to deepen capabilities?
Manage 13
cashflowsDeepen
1 Enhanced SMEs Go Digital capabilities
Up to 80% support for:
Safe distancing & biz continuity Advanced digital solutions
Online Collaboration & Queue management Advanced security & facility Integrated B2B systems
Virtual meeting tools management systems
14
For more info, please visit IMDA website From 1 April 2020 – 31 December 2020Deepen
2 Adopt e-payments capabilities
• Bonus of $300 per month for 5 months for hawker centres, wet markets, coffee
shops, industrial canteens to adopt e-payments.
3 Digital Resilience Bonus
• Pilot with Food Services and Retail sectors
• Payout of up to $5,000 to help businesses digitalise with PayNow Corporate, e-
invoicing, business process or e-commerce solutions
• Additional payout of $5,000 for businesses that adopt advanced digital solutions
like data mining and analytics
15
For more info, please visit IMDA websiteDeepen
4 E-Invoicing Registration Grant capabilities
• Register on nationwide e-invoicing network on/before 31 December 2020 to
receive a one-time grant of $200.
• You may register through more than 50 Peppol-ready accounting and ERP
solutions.
For more info, please visit IMDA website From now – 31 December 2020
16Deepen
5 Enhanced Enterprise Development capabilities
Grant (EDG)
• Up to 80% support for all projects
• Up to 90% support for sectors most severely impacted by COVID-19 and safe
distancing measures, on a case-by-case basis
For more info, please visit ESG website From 1 April 2020 – 31 December 2020
6 Enhanced Productivity Solutions Grant (PSG)
• Up to 80% support of pre-approved productivity solutions and equipment
For more info, please visit ESG website
From 1 April 2020 – 31 December 2020
17Deepen
7 Enhanced Training Support capabilities
• Up to 90% Course Fee Subsidy
• Applicable for Air Transport, Tourism, Retail, Food Services, Land Transport*
and Arts & Culture sectors
• Enhanced Absentee Payroll rate to ALL sectors: support 90% of hourly basic salary
(capped at $10 per trainee-hour)
• Please check with training providers on courses eligible for absentee payroll
funding
For more info, please visit SSG website
18Deepen
8 Enhanced SG Together Enhancing capabilities
Enterprise Resilience (STEER)
• ESG will match $1 for every $2 raised by industry-led funds, up to $1m per fund
• Supportable areas:
Manage cashflow Grow businesses Upgrade capabilities
• Interested TACs and industry groups can submit proposals to ESG from now until 2
March 2021
19
For more info, please visit ESG website From 1 April 2020 – 2 March 2021You hope to keep as many
workers as you can.
But you may have to tighten
your belt.
How can you leverage on the
Budget to retain and even
develop talent?
Manage 20
cashflowsRetain &
1 Enhanced Jobs Support Scheme (JSS) Develop Talent
• Co-fund 25% of the first $4,6000 of gross monthly wages for SC/PR employees
for 10 months (extended)
• Topped-up to 75% for the months of April and May
• For businesses that are not allowed to resume operations post-Circuit
Breaker, you will continue receiving 75% JSS until August 2020 or when you
are allowed to resume operations (whichever is earlier).
• Shareholder-directors with assessable income less than $100k are now
eligible
For more info, please visit IRAS websiteRetain &
1 Enhanced Jobs Support Scheme (JSS) Develop Talent
• 4 payouts to cover 10 months of support: April, May, July, October
• Increased base tier support from 25% to 50% or 75% for:
Tier 1
75%
Aviation Tourism Built Environment Aerospace MICE Organisers
Tier 2
50%
Arts & Marine & Land Transport
Food Services Retail
Entertainment OffshoreRetain &
Develop Talent
2 Enhanced Wage Credit Scheme (WCS)
Additional $500m for employees’ wage increases, on top of $600m disbursed in
March 2020 For more info, please visit IRAS website
3 SGUnited Traineeships
Co-fund wage costs of companies offering traineeships to first-time jobseekers
For more info, please visit MOM website
23The Budget outlined support for sectors most severely
impacted by COVID-19.
Resilience Budget will extend support if you are in:
Aviation Tourism Land Transport Arts & Culture Food Services
24
For more info, please refer to Budget Annex B8 Sector-Specific SupportThe Budget outlined support for sectors most severely
impacted by COVID-19.
• [From Jun 2020 -Jan 2021] Enhanced Jobs Support Scheme (JSS): 75%
wage offset, up to monthly wage cape of $4,600
• $350m to provide cost relief for the sector and maintain a minimum
level of connectivity
Aviation
• [From Jun 2020 -Jan 2021] Enhanced Jobs Support Scheme (JSS): 75%
wage offset, up to monthly wage cape of $4,600
• $90m for tourism recovery
Tourism
25
For more info, please refer to Budget Annex B8 Sector-Specific SupportThe Budget outlined support for sectors most severely
impacted by COVID-19.
• Special Relief Fund payments of $300 per vehicle per month
extended till Sep 2020
• Private Bus Owners: 1-year road tax rebate and 6 month waiver of
parking charges at govt-owned parking facilities
Land Transport
• $55m support package
Arts & Culture
26
For more info, please refer to Budget Annex B8 Sector-Specific SupportThe Budget outlined support for sectors most severely
impacted by COVID-19.
• [From Jun 2020 – Jan 2021] Enhanced Jobs Support Scheme (JSS):
50% wage offset, up to monthly wage cap of $4,600
• JSS topped up to 75% for the month of April and May
• Bonus of $300 per month for 5 months for hawker centres, wet
Food Services markets, coffee shops, industrial canteens to adopt e-payments.
• Digital Resilience Bonus of up to $10,000 to help businesses digitalise
with PayNow Corporate, e-invoicing, business process or e-commerce
solutions, data mining and analytics.
• Food Delivery Booster Package includes time-limited (7 April to 30
June 2020) funding support for offering food delivery services on food
delivery platforms and third party logistics partners.
27We will work with you to ride
through this crisis together.
This material contains confidential and/or official information. The terms and conditions
governing its use can be found at www.enterprisesg.gov.sg/Terms-of-Use.T: +65 6513 0388 T: +65 6337 8381 T: +65 6508 0147
E: enquiries@smecentre-asme.sg E: enquiry@smecentre-sccci.sg E: sme@smecentre-sicci.sg
Make an appointment with the
Business Advisors at
www.smeportal.sg/smecentres
to access business advisory,
T: +65 6826 3020 T: +65 6293 3822 capability workshops and
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