$500 million package to help firms cope with COVID-19 challenges
Businesses will continue to receive targeted help to cope with the ongoing challenges of the COVID-19 pandemic.
Workers and businesses in sectors still affected by the pandemic will receive a total of $500 million in assistance through the Jobs and Business Support Package.
Eligible small and medium-sized enterprises (SMEs) will receive a payout of $1,000 per local employee, capped at $10,000 per firm.
These SMEs are in sectors such as food and beverage, retail, performing arts, and arts education. Operators of sports facilities, cinemas, museums, art galleries, historical sites, indoor playgrounds, and other family entertainment centres will also be eligible.
The tourism, hospitality, and conventions and exhibitions sectors will also be included.
In addition, firms must have an annual operating revenue of less than $100 million, or have fewer than 200 employees, as of Dec 31 last year.
Local sole proprietors and partnerships in eligible sectors, as well as hawkers, market and coffee shop stallholders licensed by the Singapore Food Agency (SFA) who do not hire local employees, will also receive a one-off grant.
Finance Minister Lawrence Wong said the Government expects a steady recovery this year.
“Singapore will continue to benefit from the recovery of the global economy. More extensive vaccinations will support the growth of major economies like the US and those in Europe.”
“The recovery of our key trading partners in the region will also support our growth,” said Mr Wong in his Budget speech on Friday (Feb 18).
Workers who continue to face income loss due to the pandemic can apply for the Covid-19 Recovery Grant, which has been extended to the end of this year.
The grant provides up to $700 a month for three months to workers who have been retrenched or placed on involuntary no-pay leave due to the pandemic.
Mr Wong said the Jobs Growth Incentive will also be extended for another six to nine months, with support rates progressively stepped down to reflect the improving labour market conditions.
He said: “The extension will cover those who face greater difficulty in finding jobs, such as mature workers who have not been employed for six months or more, persons with disabilities, and ex-offenders.”
The scheme, which was launched in September 2020 to support hiring during the COVID-19 pandemic, has been extended twice, with the latest qualifying window originally set to end next month.
More details on the extension will be announced during the Committee of Supply debates, which begin on Feb 28.
Mr Wong said targeted assistance for the aviation sector will be extended.
This includes measures to ensure public health and safety at the airport, as well as to preserve core capabilities.
“We must preserve and enhance our position as an international aviation hub,” he said, adding that the Ministry of Transport will provide more details during its budget debate.
Amid rising inflation that has sparked cash flow concerns, businesses will also get more help through the extension of various loan schemes.
The Temporary Bridging Loan Programme (TBLP) and the enhanced Enterprise Financing Scheme – Trade Loan will be extended for six months, from April 1 to Sept 30.
The TBLP was launched in March 2020 to provide working capital for businesses during the pandemic, while the Enterprise Financing Scheme – Trade Loan supports Singaporean companies with their trade financing needs.
The enhanced Enterprise Financing Scheme – Project Loan will also be extended for another year, from April 1 to March 31.
“This is on top of the foreign worker levy rebates that construction firms are currently receiving,” Mr Wong said.
The project loan scheme supports Singaporean companies with their overseas project financing needs, including for working capital, guarantees and fixed assets.
Meanwhile, households will get more help with rising prices through vouchers and rebates.
A $560 million Household Support Package will help Singaporean families with cost of living pressures, providing support for daily essentials, including utility rebates, education subsidies for children, and vouchers for use at heartland shops.
Under this package, all eligible HDB households will receive double the regular GST Voucher – U-Save rebates in April, July and October this year.
Children under 21 will also receive a $200 top-up for their education-related expenses.
All Singaporean households will also receive another $100 in Community Development Council (CDC) Vouchers, which can be used at participating heartland shops and hawker stalls.
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