Enhanced COVID-19 Relief Measures
On 16 February 2021, Mr Heng Swee Keat delivered the 2021 Budget Statement. He announced various schemes to help Singaporeans, jobs, and companies.
There is a shift from broad-based assistance to more specific support especially those in the hardest-hit industries.
Focus on Creating More Jobs
The focus has been shifted from workforce security to creating more jobs in growing economies and protecting core competencies.
As companies continue to evolve, the Singapore Government will assist them in digitalizing, embracing emerging technologies, innovating, partnering, and gaining access to global markets.
Budget 2021 focuses on Emerging Stronger Together – this is the window of opportunity to plan for a new world after COVID-19.
The Singapore Government will ensure a better future for Singaporeans, with innovative companies and stable employment.
Key Enablers To Improve the Economy
Three key enablers – the spirit of creativity and entrepreneurship, financial resources, and human capital.
This will help to create innovative enterprises, excellent and meaningful employment and prospects, growing wages, and optimism about our collective future.
The Singapore Government works closely with corporations, employees, and industry sector partners to improve the economy.
This ensures that everyone resolves this crisis as a community and emerge stronger together.
Additional steps to support businesses
The Singapore Government took additional steps to support enterprises, protect jobs and livelihoods.
1. Credit
Trade Loan Financing Scheme
This scheme is formerly known as Loan Insurance Policy Plus and it helps enterprises with their trade financing needs.
It includes a higher government risk-share of 90% and a higher overall loan volume of SGD 10 million.
- There is an extension of the improved EFS-TL for another six months from 1 April 2021 to 30 September 2021.
- The gross loan amount is SGD 10 million from 1 April 2021 to 30 September 2021.
- There is a reduction of the government’s risk share on loans to 70%.
Project Loan Financing Scheme
From 1 January 2021 to 31 March 2022, this scheme supports project loans for domestic construction projects and overseas projects.
- The maximum loan quantum for domestic construction project loans is SGD 30 million.
- There is an increase in the government’s risk-share of loans to up to 70%.
Startups Special Situation Fund
The Singapore Government has SGD 285 million to invest in selected startups with private sector co-investors on a one-to-one basis.
During the COVID-19 pandemic, this would help to sustain startup creativity and entrepreneurship.
The scheme will end after all funds have been invested or on 31 October 2021, whichever comes first.
Temporary Bridging Loan Programme
The programme provides temporary working capital to businesses.
- There is an extension for another six (6) months from 1 April to 30 September 2021.
- The cumulative loan amount of SGD 5 million to 31 March 2021.
- From 1 April 2021 to 30 September 2021, the cumulative loan amount is SGD 3 million.
- The government’s risk-share on loans is at 90% to 31 March 2021.
- From 1 April 2021 to 30 September 2021, the government’s risk-share on loans is 70%.
2. Cashflow
Jobs Support Scheme
The Job Support Scheme was introduced to help companies retain local employees.
It has been extended by up to six (6) months for companies in Tier 1 and Tier 2 markets, covering earned salaries up to September 2021.
Tier 1 sectors include Aviation, Aerospace and Tourism. Currently, Tier 1 sectors receive 50% JSS support. From April to June 2021, they will receive 30% support for wages paid. From July to September, they will receive 10% support for salaries paid.
Tier 2 sectors include Food Services, Retail, Marine & Offshore, and Arts and Entertainment. Currently, Tier 2 sectors receive 30% JSS support. From April to June 2021, they will receive 10% support for wages paid.
Tier 3A sectors continue to receive 10% JSS support for wages paid from September 2020 to March 2021.
3. Cost
Foreign Worker Levy Rebate
From April 2020 to December 2021, companies in the Construction, Marine and Process sectors are eligible for foreign work levy rebates.
Each Work Permit holder is at SGD 90 from October 2020 to December 2021.
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