BUDGET 2021: EMERGING STRONGER TOGETHER
Channel: A Singaporean
Date: 2021-02-20

BUDGET 2021: EMERGING STRONGER TOGETHER

Summary of Budget 2021

Budget 2021: Emerging Stronger Together is the first full budget in the Government's new term this year, and it will be balanced between ensuring that crucial sectors stay afloat, while also investing in Singapore's long-term future. The budget differs from last year's, as the 2020 budgets were more focused on broad emergency support, whereas the 2021 budget will have greater emphasis on speeding up structural adaptations so as to ready Singapore's businesses and workers for future challenges.

The budget stands at $107 billion, with $11 billion of the budget meant for the Covid-19 Resilience Package. The Covid-19 Resilience Package will help safeguard public health and provide support to workers and businesses, with extra money going to the hardest-hit sectors such as aviation and tourism. Taxi and private-hire car drivers will be supported by $133 million through the Covid-19 Driver Relief Fund. $45 million will also be set aside for the extension of the Arts and Culture Resilience Package and the Sports Resilience Package.

Jobs and Skills Upgrading

The Jobs Support Scheme, which helps firms retain workers and reduce retrenchments, will become more targetted and will start tapering down. It will cost $700 million.

Jobseekers will be assisted via the SGUnited Jobs and Skills Package which will cost $5.4 billion, where 200 thousand locals will be matched with jobs through the Jobs Growth Incentive, and 35 thousand traineeship and training opportunities will be provided this year. Companies will be supported in hiring older workers, disabled persons and former criminals.

A new Innovation and Fellowship Programme will support about 500 fellowships in areas like cyber security, artificial intelligence, and health technology over the next 5 years.

The salaries of healthcare workers, including nurses, will be raised. This is especially justified given their contributions in the front line against Covid-19. Government support for wage increments for locals will be supported with the extension of the Wage Credit Scheme for one year.

Business Innovation

$24 billion will be additionally allocated over the next 3 years to allow Singaporean firms and workers to emerge stronger from the crisis.

Investments will be especially made in on-arrival testing and biosafety systems, which are being developed by GovTech with the private sector to verify Covid-19 test results and vaccination records.

A pilot Corporate Venture Launchpad will co-fund corporations building new ventures overseas, an Open Innovation Platform will match firms with solution providers and co-fund prototypes, and the Global Innovation Alliance containing major global innovation hubs will expand from the current 15 to more than 25 over the next 5 years. A Singapore Intellectual Property Strategy 2030 is being developed to support firms seeking to commercialise their innovations.

The Government will also step up risk-sharing arrangements with Capital providers, provide grants for firms to innovate, transform and scale up. Start-ups will be able to tap on enhanced support. Mature enterprises such as SMEs will get help co-funding digitalisation and adoption of new technologies. Local large firms will be able to tap on a new funding platform set up by the Government and Temasek to transform and expand their operations.

Supporting Households

A $900 million Household Support Package, consisting of utility grants, and GST and cash vouchers will be issued to all families, with the majority targetted at lower-income and middle-income households. All Singaporean households will get $100 in Community Development Council (CDC) vouchers to use in heartland shops and hawker centres.

In addition, every Singaporean child below 21 will receive a one-time $200 top-up to their Child Development Account, Edusave Account or Post-Secondary Education Account.

ComLink, which helps low-income families in rental housing, will expand its coverage from the current 1 thousand families to 14 thousand in two years. An Inclusive Support Package will provide early intervention support for children with special needs.

Charitable causes will be supported with the 250% tax reduction for donations being extended by 2 years, $20 million being set aside for a New Change for Charity Grant to match donations from consumers who donate while making purchases, and also $50 million for a matching grant for the CDC Care and Innovation Fund that will support bottom-up community initiatives.