Highlights of Singapore Budget 2020

Ref No.: 200220 (1)
UEN: S97SS0046G

Dear Valued ASPRI Members,

Highlights of Singapore Budget 2020

On 18 February 2020, Deputy Prime Minister and Minster for Finance, Mr Heng Swee Keat, delivered the Budget 2020 speech at the Parliament.

We would like to highlight some of the pointers in his Budget Statement that may be relevant to your organisation.

 

STABILISATION & SUPPORT

SUPPORTING ENTERPRISES

A. Corporate to Enjoy Income Tax Rebate of 25%

  • Capped at $15,000 per company

B. Enterprise Financing Scheme – SME Working Capital Loan

  • Enhanced for 1 year period
  • Maximum quantum loan increased from $300,000 to $600,000
  • Government risk-share on loans raised from 50% to 80%

C. $4b Stabilisation and Support Packages

  • New Jobs Support Scheme: Government will offset 8% of wage, with a monthly cap of $3,600 for 3 months
  • Enhanced Wage Credit Scheme: Co-funds wage increased to $5,000 to benefit Singaporean employees

 

TRANSFORMATION & GROWTH

DRIVING GROWTH, TRANSFORMING ENTERPRISES

A. Enterprise Grow Package: Greater Support for Enterprises

  • Launch of GoBuisness Platform: Central platform for businesses to transact with the government
  • Enhancement of SMEs Go Digital Programme and Market Readiness Assistance Grant (MRA grant cap raised from $20,000 annually to $100,000)

B. Cuts in S-Pass sub-dependency ratio ceiling (DRC) thresholds:

  • For construction, marine shipyard and process sectors – Reduced from 20% to 15% by 2023

BOOSTING EMPLOYMENT FOR ALL

C. New Skillsfuture Enterprise Credit

  • To cover 90% of out-of-pocket costs for business transformation, re-design and re-skilling purposes
  • Productivity Solution Grant will be expanded to include support for pre-approved job re-design consultancy services

D. Senior Worker Support Package

  • Senior Employment Credit will take effect from 2021, to provide employers with wage offsets when employing Singaporean workers ages 55 and above
  • CPF Transition Offset to cover half of the increase in employer contributions in 2021
  • Senior Worker Early Adopter Grant: To support enterprises that raise their own retirement and re-employment ages ahead of legislated changes.