Stabilisation and Support Package (S$2.4bn). Under the Stabilisation and Support Package’s Job Support Scheme , every local worker in employment, the government will offset 8% of wages (monthly wage cap $3,600) for 3 months. It will cost S$1.3bn for 1.9mn workers (i.e. S$228 per month per worker). Another wage support is an increase to the cap of the existing Wage Credit Scheme to a monthly salary of S$5,000. This co-funding of the wage increase will also be raised by 5% points to 15% in 2020.
Corporate income tax rebate of 25% of tax payable but cap at S$15,000 (S$400mn). Enterprises will also be allowed faster write-down of their investments in plant and machinery, and renovation and refurbishment, incurred in 2020. This is one of the measures provided within the Enterprise Financing Scheme, which will cost S$1.6bn.
Care and Support Package for households (S$1.6bn). Depending on income and age, each Singaporean will each receive a cash payout in tranches of either S$100, S$200 or S$300. Eligible HDB households will receive GST vouchers which can at least double their annual eligibility. There will also be grocery vouchers of S$100 for the needy in 2020 and 2021.
Property. 30% property tax rebate for hotels and MICE venues. 15% property tax rebate for qualifying commercial buildings which we expect to be passed on to tenants.
Construction. New Coastal and flood protection fund of S$5bn to prepare the island against rising sea levels. Fund will be topped up when the fiscal situation allows. Foreign worker S Pass dependency ceiling lowered from 20% to 18% in Jan 2021 and eventually 15% in 2023. Sectors affected are construction, process and marine shipyard.
Consumer. Wage relief, property tax rebate and cash payouts to households will be supportive for the retail industry.
Transportation. Hybrid road tax will be reduced by an average of 29%. This will be positive for taxi operators.
Telecommunications. S$1bn will be set aside over three years to build up the government cyber and data security capabilities.
Banner photo via GOV.sg.