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What Businesses Should Know about Singapore Budget 2021

Deputy Prime Minister (DPM) Heng Swee Keat announced the Singapore Budget 2021 with the theme “Emerging Stronger Together” on 16 February 2020. Given the effects of the COVID-19 pandemic, this year’s budget covers a wide range of support measures to benefit businesses and individuals alike. Aiming to help the Singaporean economy as it recovers from the unprecedented economic impacts, Budget 2021 includes new and continued initiatives to support enterprises and their workers. 

Singapore Budget 2021: Enablers for Emerging Stronger

According to Deputy Prime Minister Heng Swee Keat, for this next phase of transformation, the Budget 2021 will help build a vibrant business community, a wide range of capital to allow the businesses to grow and transform and develop the workforce by creating opportunities and redesign jobs to emerge stronger. 

Singapore Budget 2021 Highlights

1. Extended Jobs Support Scheme

The Jobs Support Scheme (JSS) will be extended for targeted industries that are hardly affected by COVID-19. The JSS extension will cost $700 million. 

  1. Tier 1 sectors – aviation, aerospace, and tourism, JSS will be extended for six months. Firms under tier 1 will receive 30% support for wages paid from April to June 2021 and 10% support for wages paid from July to September 2021.
  2. Tier 2 sectors – retail, arts and culture, food services and built environment, JSS will be extended at 10% for three months, which will cover wages paid up to June 2021.
  3. Tier 3A sectors – JSS will continue covering wages up to March 2021, 

 

2. Jobs Growth Incentive (JGI)

  • $5.2 billion will be allotted for JGI, allowing the hiring window to be extended by seven months, up to the end of September 2021.
  • Support the hiring of 200,000 locals through the Jobs Growth Incentive (JGI).
  • Provide up to 35,000 traineeship and training opportunities to continue to support jobseekers in upskilling and accessing employment opportunities.

 

3. SGUnited Jobs and Skills Package

Under the Budget 2021, SGUnited Jobs and Skills Package, comprising the SGUnited Mid-Career Pathways Programme, SGUnited Skills Programme, and SGUnited Traineeships will be extended to 31 Mar 2022, providing support for fresh graduates and mid-career individuals. 

The SGUnited Jobs and Skills Package is considered as the pillar of Singapore’s industry transformation, allowing Singaporeans to learn, grow and thrive as businesses transform.

Additional $5.4 billion funding for Jobs and Skills Package on top of the $3 billion funding provided last year.

  • SGUnited Mid-career Pathways Programme

The SGUnited Mid-career Pathways Programme will be extended to 31 Mar 2022 and will continue to fund up to 90% of training allowance for mid-career individuals. Moreover, the government will also fund up to 80% of training allowances that will range from $1,400-$3,000 per month for attachments commencing before April 2021. 

  • SGUnited Skills Programme 

The SGUnited Skills Programme will offer a monthly training allowance of $1,200 to help cover basic expenses. 

4. Wage Credit Scheme 

The Wage Credit Scheme will be extended for a year at a co-funding ratio of 15% with the qualifying gross wage ceiling at $5,000.

5. Capability Transfer Programme

The Capability Transfer Programme (CTP) will be extended up to the end-September 2024. The extension of CTP will help support the capabilities of foreign specialists to locals. 

6. Job Redesign under Productivity Solutions Grant

Enterprises can also apply for PSG-JR, a scheme under Workforce Singapore. For approved projects, the Ministry of Manpower (MOM) will raise the government co-founding ratio for the Job Redesign under Productivity Solutions Grant funding from 70% to 80% capped at $30,000 per company. 

7. S Pass sub-Dependency Ratio Ceiling

The government will make changes to the existing sub-DRC for Manufacturing will cut from 20% to 18% in 2022 and will be reduced 15% in 2023. 

8. Digital Leaders Programme

The new Digital Leaders Programme will allow promising local firms to create a core digital team as well as in developing and implementing digital transformation roadmaps. 

9. Enhanced Support Levels for Enterprise Schemes

The government will extend the enhanced support levels of up to 80% until the end of March 2022. The existing enterprise schemes include the Scale-up SG programme, Productivity Solutions Grant, Market Readiness Assistance Grant and Enterprise Development Grant. 

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