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Singapore’s Resilience Package: Support for Businesses and Jobs in 2021
On February 16, 2021, Singapore’s government announced its 2021 national budget where it allocated S$11 billion (US$8.3 billion) for a new fiscal package, named the COVID-19 Resilience Package, which extends existing schemes to help businesses and save jobs by subsidizing wages of workers, providing access to working capital for businesses, and supporting targeted industries like aviation.
The Singapore government is expected to draw S$53.7 billion (US$40.6 billion) from its reserves for this year as well as S$24 billion (US$18.1 billion) over the next three years to assist businesses in their transition to a post-pandemic world. Singapore is expected to record a deficit of S$11 billion (US$8.3 billion) in 2021. From this, S$4.8 billion (US$3.6 billion) is earmarked for safe reopening measures, such as free vaccinations, contact tracing, and testing strategies.
The temporary bridging loan program (TBLP) provides working capital for eligible businesses. Until March 31, 2021, eligible enterprises can borrow up to S$5 million (US$3.78 million). This will be lowered to S$3 million (US$2.27 million) for applications from April 1, 2021, to September 30, 2021.
The interest rate is capped at five percent, and until March 31, 2021, the government’s risk share of the loan is 90 percent. This will be lowered to 70 percent for applications from April 1, 2021, to September 30, 2021.
The enterprise financing scheme – trade loan (EFS-TL) supports a company’s trade financing needs with a maximum loan quantum of S$10 million (US$7.5 million) until September 30, 2021.
The government’s risk-share of loans, however, will be lowered from 90 to 70 percent, starting from April 1, 2021, to September 30, 2021.
The enterprise financing scheme – project loan (EFS-PL) enables Singaporean companies to access financing throughout their various stages of growth. The EFS-PL has been enhanced to support domestic projects for construction companies until March 31, 2022.
The maximum loan quantum for domestic projects is S$30 million (US$22.7 million) and the government’s risk-share of loans is up to 70 percent.
The supportable loan types for overseas projects include:
This article was first published by AseanBriefing which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, India, and Russia. Readers may write to [email protected].
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