Singapore 20.5b Resilience Package

For the first time ever, the Government is using its past reserves to help pay for the Budget's one-off short term measures. It has drawn $4.9b from reserves are for the Jobs Credit scheme and Special Risk-Sharing Initiative.

**Disclaimer**
All the information below are taken from The Straits Time and the information here not all-inclusive. [Try summarising the amount of information from 5+12 pages]. TO GET THE WHOLE PICTURE, READ THE PAPERS. Its a good habit to read the papers!!!!

A total of $20.5b resilience package is spilt up into

1. $5.1b for saving jobs
2. $2.6b for helping families
3. $5.8b + $2.6b for helping companies
4. $4.4b for investing in the future

Jobs Credit scheme

- Temporary one-year scheme ( could be extended, in some form, next year if the downturn continues)

- direct cash grants of 12% of an employee's(Singaporean and PRs only) monthly wage, with a cap of $2,500 per employee. [works out to max 300/month/employee or equivalent to 9% cut to their CPF contribution rate]

- 120,000 employers to benefit

Reason for doing so

• save jobs by helping companies keep their workers
• as $2,500 is the median monthly wage in Singapore, this allows employers to enjoy full 12% wage subsidy
• as opposed to cutting CPF rates, Jobs Credit scheme helps to reduce overall payroll cost WHILE preserving the retirement fund of employees.

Another $750m will go to fund training & upgrading courses for workers of various skills & education level.

Another $150m will go to low-wage workers in form of a Special Workfare payout to top up their incomes.

Special Risk-Sharing incentive

For the first time, the Government will get involved in trade financing and unsecured loans. The Government will take on a fair amount of risk in bank lending but will not take over the lending business.

New Bridging Loan Programme will cater to loans of up to $5m, up from $500,000, while Government's share of risk on these loans will increase from 50% to 80%.

Coroprate Benefits

Property

• 40% property tax rebate for industrial & commercial properties
• 15% rental rebate to companies leasing prperties, land and market stalls
• Property tax for land under development deferred for 2 years

Tax Help

• Corporate tax cut from 18% to 17%
• All foreign-sourced income exempted from tax for one year when remitted to Singapore

Transport

• 30% road tax rebate for good vehicles,buses & taxis for 1 year
• Diesel tax for unhired taxis waived for 1 year
• Tax exemption for CNG vehicles extended until end-2011

Grants & Training Schemes

• $45m to be added to Maritime Cluster Fund
• $230m Singapore Media Fusion fund to give grants to local enterpirses & build up media talent base
• $200m in test-bedding fund
• $400m top-up of National Research Fund

Direct help for families

• GST Credits & Senior Citizens' Bonus to double [Cost - $580m]
• 20% personal income tax rebate [Cost - $457m]
• Housing grant for first-time HDB flat buyers raised from $30,000 to $40,000 [Cost- $150]
• 40% property tax rebate for onwer-occupied homes [Cos $75m]
• Up to 4.5months of conservancy charges waived for 1-3room HDB flats; waivers for larger flats up to 2months
• Families renting 1 & 2 room flats will get up to 4months of rent waived

Help for the vulnerable

• $100m for Eldercare & $100m for Medifund
• $20m in financial aid schemes for needy students
• $10m for Public Transport Fund
• Public Assistance raised to $360/month [increase of $30]
• Government pensioners to get $240/month [increase of $20]

More support for social welfare

• Tax deductions for donatiosn to charity raised to 250% from 200%
• $15m for government-funded voluntary welfare organisations
• $9m for selp-help groups
• $7m for grassroots to provide aid