Singapore Budget 2021: Top 5 Things Business Owners Need To Know

1. Extension of Jobs Support Scheme (JSS) 

To help businesses retain local employees, the government is extending the JSS by up to six months until September 2021. 

2. Industry Transformation Maps 

$24 billion will be allocated over the next three years to help businesses and workers ‘emerge stronger’ beyond the adverse effects of the COVID-19 pandemic. 

How will this $24 billion be used? Singapore will move swiftly to: 

Develop a vibrant business community by catalysing a wide range of capital to enable businesses to transform and scale and also, redesign jobs to create new job opportunities for Singaporeans to develop their skills, creativity, and talents. 

3. How will Singapore Develop a Vibrant Business Community?

To emerge stronger, the Singapore Government is looking to deepen Singapore’s position as Global Asia node in the following ways:

a) Restoring physical connectivity and transforming the aviation sector for recovery

To improve global connectivity during COVID-19 and adapt to the changing aviation landscape, Singapore will implement on-arrival testing and biosafety systems at Changi Airport to verify the authenticity of digital COVID-19 test result certificates and vaccination records to restore its position as a global travel hub.

b) Creating platforms for nurturing creative Ideas

4. Capital to Enable Businesses to Transform and Scale

The Singapore Government will step up risk-sharing arrangements with providers of capital, and provide grants, to support businesses at various stages of growth:

• For high growth enterprises and start-ups, the Government will extend and enhance the Enterprise Financing Scheme - Venture Debt programme. Within this scheme the Government shares up to 70% of the risk on eligible loans with Participating Financial Institutions (up to $8 Million SGD)
• For mature enterprises, from micro and small, to medium and large enterprises, the Government will co-fund their adoption of digital solutions and new technologies through:
  
  • Emerging Technology Programmes to co-fund the costs of trials and adoption of frontier technologies like 5G, artificial intelligence and trust technologies
  • CTO-as-a-Service initiatives which aim to provide access to professional IT consultancies
  • An extension up to March 2022 and the enhancement (up to 80% support level) of the Scale-up SG programme, Productivity Solutions Grant, Market Readiness Assistance Grant, and Enterprise Development Grant that co-funds up to 80% of their capital
• For Large Local Enterprises, that are ready to transform or expand overseas on a larger scale, the Government will complement existing grants and loans, to support them through non-controlling equity investments. Temasek will also invest with the Government into this Platform.
• The Government will also support companies in different growth stages and focus on the transformation of entire value chains – where each player in the chain works together to integrate and digitalise processes and upskill their workers. 

5. Productivity Solutions Grant (PSG) for Job Redesign 

Introduced by Enterprise Singapore, the PSG Grant is a Singapore government subsidy to encourage businesses in Singapore to take on IT solutions costs and solutions to streamline business operations. 

Xero is an online cloud accounting software system that Hawksford set-ups for their clients to help them digitalise and automate accounting processes. Eligible companies using Xero will be able to claim up to 80% on IT solutions and equipment’s including Xero which will help to increase business productivity.

To learn more about how your company could digitalise your accounting and tax using Xero, speak to our experts here.

Still have more questions about the Singapore budget? Attend one of our budget webinars.