Heng Swee Keat, the deputy prime minister, introduced the outlines of the Budget 2021 to Parliament on February 16, 2021.
After the COVID-19 outbreak, SMEs are battling to survive.
Some of the essential points from the session are summarized below.
Postponement of the GST hike
From 2021 to 2022 or 2025, you will postpone the Goods and Services Tax (GST) increase from 7% to 9%. A $6 billion assurance package will mitigate the impact of the hike.
Specific help for badly hit sectors
The COVID-19 Resilience Package, valued at $11 billion, will provide:
The arts, entertainment, and sports sectors receive $45 million.
It will be strengthened and extended to include the skills and culture resilience package and the sports resilience package to aid enterprises and self-employed individuals in these areas.
For the aviation sector, $870 million will be spent.
This will provide cost-relieving methods and financial support for the project.
There are different levels of support available under the expanded Jobs Support Scheme (JSS)
Those who are Singaporeans or permanent residents working in the JSS would be eligible for a subsidy of up to $4,600.
Aviation, aerospace, and tourism sectors
From April to June, you will pay 30% of the workers’ pay in September. From July to September, 10% of the salary will be distributed in December.
This grant, worth $330 million, would enable Singaporeans and permanent residents to earn 50% of their salaries from April to September, the Ministry of Transport revealed. As of February 17, 2021, this information was available to the public.
Retail, maritime and offshore, and the arts and entertainment sectors are examples of industries that could be affected.
In September, businesses will receive 10%of the wages they paid from April to June. In these areas, the government will pay $700 million in wages to employees.
Help businesses to innovate
Initiatives like the ones below will help firms develop and collaborate globally to stay competitive.
Corporate Venture Launchpad: Through the partnership, new creative companies will be born.
Global Innovation Alliance (GIA): Singapore and global centers are encouraged to collaborate. With a Co-innovation Programme covering 70% of costs, it will be spread to more than 25 locations throughout the world in the next five years.
Open Innovation Platform (OIP): Businesses and government agencies can find solutions to common problems.
Government assistance to develop capital
The government will enter into risk-sharing agreements with capital providers and offer grants to firms to encourage them to grow.
Start-ups and other businesses with high development potential will receive government aid under the enterprise financing plan debt enhancement program, according to the government.
These activities will receive a budget of $1 billion.
CTO-as-a-Service: Professional IT consultancies can help firms identify solutions.
Digital Leaders Programme: Companies will be assisted in their digital transformation efforts by a core team of digital experts.
Emerging Technology Programme: This money will be used to pay for adopting new technologies at the cutting edge of science and engineering.
Local Enterprises Funding Platform: The government will invest $500 million, and Temasek will match it dollar-for-dollar. Using the $1 billion supplied by the platform, significant local firms can develop worldwide.
Productivity Solutions Grant: Government assistance for this and other existing business programs, such as the Scale-up SG program, will increase to 80% (from 70%) by the end of March 2022.
Venture Debt Programme: There will be an increase from $5 million to $8 million in the maximum loan amount.
Help to train and upskill workers.
In addition to last year’s $3 billion, another $5.4 billion will be injected SGUnited Jobs and Skills Package, the second tranche.
The Jobs Growth Incentive will receive $5.2 billion of this total. By the end of September 2022, you could extend the hiring window by up to seven months.
Employers who hire qualifying locals will be eligible for up to 12 months of salary support from the month of hire onward. Mature workers, ex-offenders, and those with disabilities will be eligible for up to 18 months of pay support.
Two hundred thousand locals are expected to be hired, and up to 35,000 traineeship and training roles are expected to be created.
More support for workers
you will make the following adjustments to Singapore’s workforce to transform and upskill it:
Capability Transfer Programme (CTP): Up until the end of September 2024, the initiative that encourages the transfer of skills from overseas specialists will continue. Find out more about this topic by clicking on the link below.
Manufacturing S Pass sub-Dependency Ratio Ceiling (DRC): 20% will be cut to 18% in 2022 and 15% in 2023.
Wage Credit Scheme: For an additional year, you will provide a co-funding of 15%.