Singapore’s Fourth Stimulus Package + Comparison Table

Singapore during COVID-19

At the beginning of the Coronavirus outbreak, Singapore was heralded as one of the safest places to be. After an outbreak among migrant workers in shared dormitories, their cases soared, and the economy took a hard blow. According to the Financial Times, without a vaccine in sight, the economy could shrink by up to 7% as a result of the pandemic.

Since February, the Singaporean government has announced several stimulus measures to soften the blow on the economy and protect businesses and employees. A comparison of these stimulus packages is displayed in the table below.

▼ What is HK doing to support employees during the Covid-19 pandemic?

▼ What can HR do to ensure a smooth return to the office during Covid-19?

▼ How do you close a company in Singapore the right way?

▼ How can a business grow sustainably post Covid-19?

Singapore’s Fourth Stimulus Package

On May 26th, 2020, Singapore announced the fourth of their stimulus packages which injected 33 billion SGD ($23.2 billion) into the economy (Source: CNBC). The purpose of this package, similar to the ones before it, is to support businesses and employees who were severely impacted by the pandemic.

According to CNBC, this package will total Singapore’s fiscal injection to nearly 100 billion SGD; that’s 20% of the country’s GDP! This money is derived from 52 billion SGD of fiscal reserves which are estimated to be worth over 1 trillion SGD.

Singapore COVID-19 Stimulus Packages 2020

	FEBRUARY 18: UNITY BUDGET	MARCH 26: RESILIENCE BUDGET	APRIL 6/21: SOLIDARITY BUDGET	MAY 26: FORTITUDE BUDGET
TOTAL AMOUNT	S$6.4 billion	S$48.4 billion	April 6: S$5.1 billion April 21: S$3.8 billion	S$33 billion
AMOUNT DRAWN FROM RESERVES	–	S$17 billion	S$4 billion of the S$5.1 billion	S$31 billion
HEALTHCARE SUPPORT	S$800 million health care package	–	–	–
BUSINESS AND WORKER SUPPORT	S$4 billion for businesses and workers, Job Support Scheme to subsidise S$3,600 of workers’ monthly wages	Job Support Scheme increased to 25% of the first S$4,600 of workers’ monthly wages for a 9 month period. Increased by 50% for food services and 75% for tourism sector	Job Support Scheme continues. Foreign worker levies waived. Covid-19 Support Grant given to those who lost their jobs due to pandemic	Job Support Scheme extended. Job creation of over 40,000 jobs. S$800 million to Covid-19 Support Grant
HOUSEHOLD SUPPORT	S$1.6 billion for households including a cash-payout of S$100-S$300 for adults	Cash payout to adults raised to S$900	Additional S$300 handout to adults. Property owners pass on tax rebates to tenants	–
POLITICAL MEASURES	Cabinet ministers and poltical office members take a 1 month wage reduction	Cabinet ministers and political office members increase pay cut to 3 months	–	S$13 billion in the Contingencies Funds so the govt. can respond quickly to developments arising from the pandemic

Singapore shows continuous support to their economy through multiple stimulus packages
Source: gov.sg, scmp.com

As seen above, there are a series of measures that the government is putting in place to stabilize, stimulate, and support the economy throughout the pandemic.

Fourth Stimulus Package: Summary

To elaborate on what is seen in the table, the fourth stimulus package specifically aims to support businesses and workers:

Jobs Support Scheme
- Extended by one month and agreed that firms which cannot reopen (such as gyms, cinemas and shops) will receive 75% wage support until they are able to reopen

Job Creation
- S$2 billion towards the SGUnited Job and Skills Package thus creating:
  - 40,000 jobs
  - 25,000 traineeships
  - 30,000 skills training opportunities

Unemployment
- S$800 million for the Covid-19 Support Grant, given to those who lost their jobs due to the pandemic

Foreign Workers
- Waivers and rebates in foreign worker levy for companies in industries such as construction

Rent
- Rental waivers and relief for small and medium sized enterprises

Keep Up to Date with the Latest Government Schemes

With many updates to schemes from governments coming through, businesses should keep up with the latest insights as they could be eligible to benefit from them. Make it easier for yourself by partnering with a trusted payroll vendor and ensure you never miss out on the latest measures.

Servicing in multiple countries, Links International has exceptional insights on local labour law and regulations around Asia-Pacific. Learn more about how partnering with us can help you streamline your business and take it to new heights.

Professional HR Outsourcing Services in Hong Kong

3 Key Takeaways

Maximise your benefits through HR Outsourcing

Many of the elements in these stimulus packages affect wages and employment. In order to ensure your company takes advantage of these measures, outsource your HR services with Links International! Let us help you support your business and employees.

Stay informed & take advantage of government schemes

Want to make sure you don’t miss out on these stimulus packages and other government support schemes? Stay up to date by subscribing to our research page where you can find clearly outlined salary guides as well as management insights from all over the region.

Prioritise the well-being of your employees

In a time of economic downturn, it is important to prioritise the well-being of your employees while also being as cost-effective as possible. Implementing an Employee Assistance Programme can help your business save money while also focusing on growth and employee productivity.

Links International is an industry leader in innovative HR outsourcing with services such as payroll outsourcing, visa application, Employer of Record (EOR), outplacement, recruitment and more! Contact us for more information on how we can help leverage your HR function.