Types of Assistance Provided by the Singapore Government for SMEs Amidst COVID-19

 Types of Assistance Provided by the Singapore Government for SMEs Amidst COVID-19

The COVID-19 pandemic has had adverse effects on both the business and the work culture in Singapore. Companies are running out of revenues, and people are losing their jobs.

The government has allocated $4 billion to help companies in the city-state to minimize the negative effects of Coronavirus. This will benefit both the firm and its employees.

Singapore Government Aid for Companies During the Outbreak

Most SMEs obviously have been losing income, but the government hasn’t turned a deaf ear towards them. In fact, there are various incentives, which are going to be of huge help:

The Singapore budget 2020 summary highlights various financial grants such as Digital Resilience Bonus, Productivity Solutions Grant (PSG), Enterprise Development Grant (EDG), etc. to help with the cash flow.

  • Companies can retrench employees as per the contract if they are finding it difficult to pay full wages.
  • The Income-tax rebate is set to be 25% in the year 2020. This has been capped for $13,000.
  • Property tax rebate is in place. Depending on the sector, firms will get 100%, 60%, or 30% refunds on their property taxes.
  • Every affected SME Tenants Gets Relief in this pandemic. The government will pay off two, or four months of corporate tenant’s rent.
  • There are various loan schemes. Specialized programmes for FinTech companies are also available.
  • A job support scheme is in place, which will fund from 25% to 75% of the initial $4600 monthly income (gross) for each employee during a 10-month period.

What do Companies Need to Do?

Though Companies do get some benefits, they also have responsibilities once they are in operations after the circuit breaker. Most of these are health-related. They will need to hire a Safe management Officer (SMO) and make sure Work from Home and Virtual Meetings are implemented when possible. Other guidelines include regulating schedules, paying extra attention to vulnerable employees, etc.

Furthermore, installing the SafeEntry Management System is compulsory in every office. Employees will also need to be more health-conscious, such as compulsory wearing of masks, and maintaining a safe social distance.

 

Clare Louise

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