Singapore unveils new S$1.5 billion support package: what does it mean for your business?

The supply chain turmoil stemming from the ongoing war in Ukraine and the continuing COVID-19 restrictions in some parts of the world have resulted in rising energy and food prices.

With the global inflation expected to remain high in the coming months, Singapore is bracing for a further rise in prices before the situation improves.

Against the challenging backdrop of inflationary pressure, the Singapore government has announced a S$1.5 billion support package to provide immediate relief for lower-income and more vulnerable groups. The announcement was made by Deputy Prime Minister and Minister for Finance Lawrence Wong on  21 June 2022.

These measures will have significant implications for the Singapore businesses, industries and sectors. Below, our summary offers focused insight into the measures for businesses and workers.

Key measures for businesses in Singapore

The government announced measures to support the vulnerable segments of the workforce that have been disproportionally affected by the pandemic. The support package also includes a levy to help industries build resilience amid food supply shortage.

1. Employers and workers

• Progressive Wage Credit Scheme (PWCS)

Government’s co-funding share for PWCS support will increase from 50% to 75% for wages up to S$2,500 (First tier) and from 30% to 45% for wages above S$2,500 up to S$3,000 (Second tier).

Supporting both businesses and workers, PWCS was announced in Budget 2022 as a way for the Government to co-fund the wage increases of lower-wage workers under the Progressive Wage moves.

• Jobs Growth Incentive (JGI)

Businesses can continue to benefit from the JGI until September 2022 through hiring mature jobseekers who have not been working for at least six months, as well as persons with disabilities or ex-offenders. The JGI will be extended for another six months to March 2023 to support employers of vulnerable workers.

• Foreign Worker Levy

One-month Foreign Worker Levy waiver for 11 chicken slaughterhouses to support firms affected by chicken export ban.

2. Green grant

Amidst rising electricity costs, the government announced a new grant which provides a more sustainable way to help businesses manage energy prices benefit local business. The grant is also in line with Singapore’s energy conservation efforts and goal to reduce its greenhouse gas emissions.

• Energy Efficiency Grant

The new grant will provide local SMEs in the Food Services, Food Manufacturing, and Retail sectors with up to 70% support to adopt energy-efficient equipment in pre-approved categories, capped at S$30,000 per company.

Support will be provided for energy efficient equipment in the categories such as LED lighting, air conditioners, cooking hobs and refrigerators. This grant complements other energy efficiency initiatives such as NEA’s Energy Efficiency Fund as well as BCA’s Green Mark Incentive Scheme for Existing Buildings 2.0.

3. Financing schemes

The Singapore government announced the following enhancements to support local enterprises with cashflow concerns:

• Enterprise Financing Scheme – Trade Loan (EFS – TL)

The EFS-TL’s maximum loan quantum increased to S$10 million from 1 July 2022 to 31 March 2023 with an extended 70% risk-share during this period.

• Enterprise Financing Scheme – SME Working Capital Loan (ETF-WCL)

The ETF-WCL maximum loan quantum increased to S$500,000 from 1 October 2022 to 31 March 2023, after the Temporary Bridging Loan Programme expires on 30 September 2022.

Other support measures

Apart from the measures introduced for businesses, the Government has also announced measures for self-employed persons, individuals and households in Singapore.

Cash relief will be provided for self-employed drivers and drivers under the NTUC U FSE scheme. To help Singaporeans with rising costs, individuals and households will receive GST voucher special payment and S$100 Household Utilities Credit. To enhance retirement financial adequacy, the eComCare assistance rates will be increased from 1 August alongside the increase of the Singapore Allowance and monthly pension ceiling for pensioners who draw lower pensions.

Get in touch

At Mazars, our Outsourcing experts can assist your organisation in navigating the changing tax and legislative developments relating to your employees. We can help you to identify the right incentives to drive your business growth. We will also help you to stay on top of new immigration requirements and policies so you can meet all your compliance needs.

Mazars offers an integrated team of Sustainability specialists to provide your organisation with the guidance you need in your sustainability journey - from supply chain awareness, carbon mapping to inequality reduction.

Companies that thrive are the ones that have strong business foundations and strategies, adopt technology and innovative processes. If you are looking to grow your business, our Management Consulting specialists excel in consulting across everything from organisational design to business function strategy to cash flow optimisation.

If you would like to find out how you or your organisation might benefit from the newly announced support package, please don’t hesitate to get in touch with us.