Singapore Budget 2021: Schemes For Businesses

Posted by Cheryl Lee on February 24th, 2021

Singapore’s Finance Minister and Deputy Prime Minister Heng Swee Keat, while delivering the Singapore Budget 2021 Statement on February 16, noted how during the last year Singapore has faced the worst recession since independence, as the world has fought the COVID-19 pandemic.

“Last year, in addition to our usual spending, the Government committed nearly 0 billion through five Budgets to support Singaporeans, help tide businesses over this difficult period, and most importantly, keep everyone safe," he said, adding, "Singapore’s GDP contracted by 5.4% in 2020. While the overall budget deficit for the Financial Year 2020 is also the largest since Singapore’s independence, at .9 billion, or 13.9% of GDP."

He forecasted this year’s deficit (Financial Year 2021) to be billion, or 2.2% of the GDP.

He also noted how the Singapore Government shifted its focus from containment to restructuring as the city-state re-opened its economy. "We transitioned our broad-based support to more targeted ones for firms, especially those in the hardest-hit sectors. We introduced measures to preserve core capabilities. We shifted our focus from job retention to job creation and helped workers secure jobs in growth sectors," he said.

Now, on the theme of Emerging Stronger Together, the Deputy PM’s Budget for Singapore this year has measures for COVID-19 relief for businesses, workers and families; as well as for initiating structural adaptations in the economy over the long-term.

Support for workers and businesses in Singapore Budget 2021

1. billion COVID-19 Resilience Package in Singapore Budget 2021

Of these measures, the Government has set aside .8 billion for public health and safe re-opening measures, including free and voluntary vaccinations, as well as contact tracing and testing.

Support for specific sectors:

• 0 million is set aside for the aviation sector, to preserve core capabilities and extend cost relief.
• The Government has also extended the Arts & Culture Resilience Package and Sports Resilience Package by million to support businesses and self-employed people in these sectors.
• A new 3 million COVID-19 Driver Relief Fund is put in place for eligible taxi and private hire car drivers. Under this scheme, 0 per vehicle per month from January to March 2021, and 0 per vehicle per month from April to June 2021, will be distributed.

Read more about Singapore Budget 2021 at Singapore Company Incorporation.