Highlights of

Singapore’s
Resilience Budget
2020
 Introduction
Deputy Prime Minister and Minister for Finance, Mr. Heng Swee Keat,
delivered a Ministerial Statement on 26 March 2020 in Parliament
on the Government’s additional support measures for workers,
businesses and households in response to the COVID-19 pandemic.

Since the delivery of Budget 2020 (Unity Budget) in Parliament on

18 February 2020, COVID-19 has escalated into a global pandemic.
As an open economy and Asian hub, Singapore is on the front-line.
Her economy contracted by 2.2% on a year-on-year basis in the first
quarter of 2020, reversing the 1.0% growth in the preceding
quarter. The Ministry of Trade and Industry has further downgraded
the year 2020’s growth forecast to between -1.0% and -4.0%.

To meet these challenging times, a supplementary budget

(Resilience Budget) with measures worth S$48b has been
introduced to support Singaporeans and businesses. This is in
addition to the S$6.4b committed earlier in the Unity Budget.
Altogether, S$55b, amounting to 11.0% of Singapore’s GDP, will be
dedicated to enable Singapore to weather this unprecedented
situation.

The Resilience Budget focuses on three key areas:

► Helping enterprises to overcome immediate challenges

► Saving jobs, supporting workers and protecting livelihoods
► Strengthening economic and social resilience to emerge intact
and stronger

This news alert summarises the key announcements in the

supplementary budget that are most relevant to our clients.

Soh Pui Ming

Head of Tax, Singapore
Ernst & Young Solutions LLP
 Key proposals
Helping enterprises to overcome immediate challenges

In the Resilience Budget, the Government addresses the three concerns of businesses: cash flow, cost and credit. There are
very few tax changes.

Tax measures

► Deferment of income tax payments: Automatic deferment of income tax payments for three months for companies and
self-employed persons.

► For companies, income tax payments due in April to June 2020 will be deferred.

► For self-employed persons, income tax payments due in May to July 2020 will be deferred.

► Enhanced Property Tax Rebate:

Announced in Announced in
Type of properties Unity Budget Resilience Budget
(18 Feb) (26 Mar)

Qualifying commercial properties,

such as hotels, serviced 15% or 30% rebate 100% rebate
apartments, shops and restaurants

Integrated resorts 10% 60%

Other non-residential properties

30%
(industrial, office) Nil

Non-tax measures

The list below is not exhaustive, some key announcements include:

► Government fees and charges: All government fees and charges will be frozen for one year, from 1 April 2020 to
31 March 2021.

► Enhanced rental waiver: Rental waiver of up to two months for commercial and other non-residential tenants in
Government properties.

► Enterprise Financing Scheme (EFS):

► EFS – Trade Loan: Increase the loan quantum from S$5m to S$10m and raise the Government’s risk-share to 80%
(instead of up to 70% previously).
► EFS – SME Working Capital Loan: Increase the loan quantum from S$0.6m to S$1m.

► Loan Insurance Scheme and Temporary Bridging Loan Programme: Enhanced to help enterprises with cash flow concerns.

► Other measures including enhanced Job Support Scheme and other sector-specific measures are covered in the
next sections.
 Key proposals
Saving jobs, supporting workers and protecting livelihoods

Non-tax measures

► Enhanced Jobs Support Scheme: A 25% cash grant on the gross monthly wages of local employees subject to a monthly
wage cap of S$4,600 per employee (up from 8% on the first S$3,600 previously) for nine months (up from three months
previously). The cash grant is increased to 50% for businesses in food services. Tourism and aviation sectors will receive
even higher cash grant support of 75%.

► Self-Employed Person Income Relief Scheme: S$1.2b allocated to provide S$1,000 a month to eligible Singaporean
self-employed persons for nine months. Details are to be announced.

► Enhanced Self-Employed Person Training Support Scheme: The scheme is extended until end of 2020 and the training
allowance is increased from S$7.50 per hour to S$10 per hour, with effect from 1 May 2020.

► SGUnited Traineeships Programme and SGUnited Jobs Initiative: New initiatives targeted at creating job opportunities for
jobseekers, including co-sharing of manpower costs with enterprises that offer traineeships to local first-time jobseekers.

► COVID-19 Support Grant: Cash grant of S$800 a month for three months for lower and middle income Singaporeans who
lose their jobs due to COVID-19.

► Other support for households, families and needy Singaporeans includes enhancing the cash payout under the Care and
Support Package, freezing all Government fees and charges, student loan relief and suspending late HDB mortgage
payment charges, etc.

Strengthening economic and social resilience

Non-tax measures

The list below is not exhaustive, some key announcements include:

► Developing a robust, multi-pronged strategy to strengthen Singapore’s food security, with a “30 by 30” vision to produce
30% of the nation’s nutritional needs by 2030 (up from less than 10% today).

► Enhancement of SMEs Go Digital: From 1 April to 31 December 2020, the scope of pre-approved digital solutions will be
expanded to cover online collaboration tools, virtual meeting and telephony tools, queue management systems and
temperature screening solutions, to help SMEs implement safe distancing and business continuity measures.

► Enhancement to Enterprise Development Grant and Productivity Solutions Grant: From 1 April to 31 December 2020,
the funding support level will be raised to up to 90% and 80% respectively.

► Enhanced Training Support: Higher course fee subsidies of 90% and enhanced absentee payroll of 90% of hourly basic
salary (capped at S$10 per trainee-hour).

► Co-funding for businesses undertaking professional cleaning of premises that have experienced a confirmed
COVID-19 case.
 Selected sector initiatives

► Enhanced Jobs Support Scheme: 75% wage offset on the first S$4,600 of gross monthly
wages of local employees of airlines, airport ground handlers and airport operators.
► Enhanced Aviation Support Package: S$350m to fund measures such as rebates on
Aviation sector landing and parking charges, and rental relief for airlines, ground handlers and
cargo agents.
► Property tax rebate of 100% for Changi Airport for the period 1 January to
31 December 2020.

► Enhanced Jobs Support Scheme: 75% wage offset on the first S$4,600 of gross monthly
wages of local employees of hotels, travel agents, tourist attractions, cruise terminals
and operators, and Meetings, Incentive Travel, Conventions and Exhibitions (MICE)
venue operators.
► S$90m set aside for tourism recovery.

► Property tax rebates to be granted for the period 1 January to 31 December 2020.
Tourism sector ► 100% for accommodation and function room components of hotels licensed under
the Hotels Act, serviced apartments and MICE space components of prescribed MICE
ventures and other qualifying commercial properties such as (a) premises of
international cruise or regional ferry terminal; (b) shops (e.g., retail and F&B),
including those within hotel buildings, serviced apartment buildings, and the
prescribed MICE venues; and (c) premises of tourist attractions.
► 60% for Marina Bay Sands and Resorts World Sentosa.
► Details have been released on the IRAS website.

► Enhanced Point-to-Point Support Package: S$95m to provide special relief fund

payments of S$300 per vehicle per month to eligible taxi hires and private hire car
Land transport drivers until September 2020.
sector ► Private bus owners will receive a one-year road tax rebate and a six-month waiver of
packing charges at Government-owned parking facilities.

► S$55m support package to provide additional support to major companies and leading
Arts and culture arts groups, deepen skills and support professional development and step up
sector digitalisation efforts.
 Contact us
Head of Tax Business Tax Global Compliance Indirect Tax
Services and Reporting

Soh Pui Ming Choo Eng Chuan Chai Wai Fook Yeo Kai Eng
pui.ming.soh@sg.ey.com eng.chuan.choo@sg.ey.com wai-fook.chai@sg.ey.com kai.eng.yeo@sg.ey.com

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People Advisory Financial Services

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Evelyn Ang
Atlas Asia Law Corporation
evelyn.ang@atlasasialaw.com.sg

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APAC no. 12002070

ED None

UEN 201911025K

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not intended to be relied upon as accounting, tax or other professional advice.
Please refer to your advisors for specific advice.

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