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As mentioned in previous articles, small and medium-sized enterprises (SMEs) are the hardest-hit during this pandemic-related slowdown of Singapore’s economy.
In response, government and private organizations have launched multiple initiatives over 2 months to support this vulnerable group of enterprises.
This article seeks to consolidate and provide a summary of all initiatives for SMEs. Please let us know if we have excluded anything!
| Organization | Scheme |
|---|---|
| IRAS | Job Support Scheme (Budget 2020) This scheme aims to help employers retain their local employees. Employers may receive 25% cash grant on the first $4,600 of the gross monthly wages of each local employee on their CPF payroll for up to 9 months. Additional support (50% & 75%) will be extended to severely affected sectors. (Update 1) Support increased to 75% for all employees for the month of April (Update 2) 75% wage support extended for May 2020, shareholders-directors with NOA less than $100,000 will now be covered. (Update 3: Fortitude) JSS will be extended by 1 month, for a total of 10 months. Companies not allowed to resume business will continue receiving 75% support until operations resume or August 2020, whichever is earlier. Certain industries are upgraded to a higher base-tier of support of 50% and 75%. (Update 4: Ministerial Statement - Aug 2020) JSS will be extended for another 7 months, covering wages paid from Sep 2020 up to Mar 2021. In total, the government is providing support for wages for 17 months from Oct 2019 - Mar 2021. However, levels of support will be reduced to 0% (for less affected industries) - 50% (for heavily affected industries). Link |
| Ministry of Manpower | Jobs Growth Incentive (JGI) (Ministerial Statement - Aug 2020) To support hiring in growth industries in Singapore, the government will co-pay up to 25% of salaries of all new local hires for one year, subject to a cap. For those aged 40 and above, the co-payment to firms will be up to 50%. Link |
| IRAS | Enhanced Property Tax Rebate for Non-Residential Properties (Budget 2020) This scheme aims to help business owners alleviate the cost of operations. Property tax for qualifying commercial properties has been reduced by 30%, while tourism and event-related venues have been waived completely. Legislation will be introduced to ensure landlords pass down property tax savings to tenants. (Update: Fortitude) The government will provide a new cash grant (0.64 - 0.8 months) to offset rental costs in addition to property tax rebates. Link |
| Various | Rental Waivers for Tenants in Government-Owned / Managed Non-Residential Facilities (Budget 2020)
This scheme aims to help business owners alleviate the cost of operations.
Subject to qualification:
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| COVID-19 (Temporary Measures) (Amendment) Bill 2020 | Rental Waivers for Tenants in non-Government-Owned / Managed properties
This scheme aims to help business owners alleviate the cost of operations.
Subject to qualification:
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| Ministry of Manpower | Foreign Worker Levy Waiver & Rebate (Budget 2020, Solidarity Budget, Fortitude Budget) This scheme aims to help business owners alleviate the cost of operations. Foreign worker levies due in April 2020 will be waived in light of the circuit breaker measures announced to prevent a further spread of COVID-19. Employers will also received a Foreign Worker Levy Rebate of $750 in April 2020 from levies paid this year, for each Work Permit or S Pass holder. Rebates may be received as early as 21st April 2020. (Update) Businesses that are not allowed to resume operations on-site immediately after the circuit breaker ends on 1st June will have the foreign worker levy waived for up to two more months. On top of that, a 100% waiver and $750 rebate will be distributed in June 2020, and a 50% waiver and $375 rebate distributed in July 2020. Link |
| IRAS | Deferment of Income Tax Payment for Companies (Budget 2020)
This scheme aims to help business owners with their immediate cash flow needs. All companies with company income tax (CIT) payments will be granted a 3-month deferment. CIT payments due in the months of April, May and June 2020 will be deferred to July, August and September 2020 respectively. No applications required. Link |
| Enterprise Singapore | Enhanced Financing Support (Budget 2020)
This scheme aims to help business owners with their immediate cash flow and operational requirements.
Eligible SMEs will have access to:
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| Enterprise Singapore, IMDA | Building Capabilities and Resilience (Budget 2020)
This scheme aims to help business owners upgrade their employees’ capabilities, preparing them for the eventual economic upturn.
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| SkillsFuture | Enhancement to Course Fee Subsidy and Absentee Payroll (Budget 2020)
This scheme aims to help business owners upgrade their employees’ capabilities, preparing them for the eventual economic upturn.
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| Monetary Authority of Singapore (MAS) | Supporting SMEs with Access to Bank Credit and Insurance Cover
This scheme aims to help SMEs with their immediate cash flow requirements.
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| Enterprise Singapore | E-Commerce Booster Package for Retailers (SMEs) to Diversify
This scheme aims to help SMEs increase sales and diversify their sales channels through online platforms.
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| Singapore Fintech Association (SFA), Monetary Authority of Singapore (MAS), NTUC, e2i | S$125 Million Package for Financial Institutions and Fintech Firms to Strengthen Long-Term Capabilities
The support package, funded by the Financial Sector Development Fund, has three main components:
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| Singapore Fintech Association (SFA), Monetary Authority of Singapore (MAS) & AMTD | S$6 Million Grant Scheme to Support Singapore Fintech Firms
The grant aims to support Singapore-based fintech firms amid the challenging business climate caused by the COVID-19 pandemic.
It comprises two components:
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| NETS | Boosting E-Payment Adoption The government will now provide a bonus of up to $1,500 for stallholders in hawker centres, coffee shops and industrial canteens to adopt SGQR unified e-payment solutions. Sign up with NETS. Link |
Eric Koh is passionate about helping SMEs grow and has spent years interacting with business owners at OCBC and IFS Capital. He is interested in 70s rock ‘n roll, the odd novel and copious amounts of historical trivia.
