What can Singapore Budget 2020 do for businesses?
On the 18th of February 2020, Deputy Prime Minister and Finance Minister Heng Swee Keat presented the Singapore Budget 2020. Furthermore, on the 3rd of March 2020, latest updates on Budget 2020 were furnished specifically catering to the hiring needs of an organisation.
It is evident that the Hong Kong protests and COVID-19 epidemic have caused one of the weakest GDP growths this past year. With the current economic standing, the Singapore Budget 2020 has been crafted in the form of a unity budget to revitalize the economy and support businesses. One of the decisions to keep the GST at 7% is a major factor that will help residents and businesses during this period.
The Singapore Government has also come up with a financial plan amounting to S$106 billion comprising packages such as Stabilisation & Support – worth S$4 billion and Transform & Grow – worth S$8.3 billion to back economy-wide businesses and workers.
The Stabilisation and Support package includes:
- A provision of temporary cash flow support such as 30% property tax rebates to assist sectors directly affected by COVID-19 (Tourism, Aviation, Maritime, Hawkers etc.)
- A 25% corporate tax rebate for all enterprises.
- A focus on Jobs Support and Wage Credit Scheme has been developed to help employers in all industries in areas of offsetting employee wages and increasing wages for Singaporean workers.
In addition to the Jobs Support & Wage Credit Schemes, there are also special incentives for organisations that retain or employ workers aged 40 and above. Professional Conversion Programs will greatly aid workers in the area of reskilling, especially with the increase in retirement age from 62 to 65. Here, you can find a detailed overview of the Budget 2020 schemes available for HR leaders to utilize.
The Transform & Grow (Enterprise Grow) package includes:
- A launch of business platforms such as GoBusiness and e-Adviser to help streamline business license applications and identify government assistance respectively.
- An expansion of programmes such as Go Digital and Market Readiness Access (MRA) to help enterprises grow, transform, build stronger partnerships.
- An enhancement of skills for workers aged 25 and above through a one-time Skillsfuture top-up of S$500.
- Support for leaders of small to medium-sized enterprises (SMEs). This aims to help about 900 small companies over the next three years with mentorship and training.
- S$300 million allocated to Startup SG Equity, which will focus on providing capital for early stage start-ups, aiming towards tech sectors.
This detailed guide will provide further elaboration on how businesses will be backed by the Singapore Government.
As much as there are many forms of support available from the Singapore government, it is also crucial that businesses enhance their Financial & Operational Resiliency in order to stay afloat in uncertain times, adapt to distresses in the economy and build continuity for critical economic functions.
This article is derived from these sources:
Information is correct at the time of publication.