Supplementary Budget For Businesses - 28 May 2020

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Supplementary Budget For Businesses - 28 May 2020
Supplementary Budget
For Businesses
28 May 2020
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
Supplementary Budget For Businesses - 28 May 2020
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

cashflows
Manage
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

                                                                                           4
Manage
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

                                                                                            5
Manage
 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

                                                                                      6
Manage
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                                      7
Manage
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
                                                                                8
Manage
      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
                                                                                          9
Manage
  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
                                                                                         10
Manage
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 website
To 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

cashflows
Deepen
   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 2020
Deepen
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 website
Deepen
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
                                                                                          16
Deepen
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
                                                                                                17
Deepen
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
                                                                                       18
Deepen
 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 2021
You 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

cashflows
Retain &
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 website
Retain &
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       Offshore
Retain &
                                                                               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

                                                                                                            23
The 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 Support
The 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 Support
The 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 Support
The 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.
                                                                                     27
We 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.
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