ANNOUNCEMENT 16 Feb 2021

In February 2021, Singapore introduced several stimulus packages to help local companies and workers to recover from the impact of COVID-19 pandemic.

NUMBER OF INTERVENTIONS

10

  • 10 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 16 Feb 2021 | Removal date: open ended

State loan

On 16 February 2021, Singapore unveiled its stimulus package under Budget 2021. Under this Budget, the Singapore government in cooperation with Temasek invested S$1 billion (USD 754.2 million) in a Local Enterprises Funding Platform to be managed commercially. Some of this funding would be used to provide loans to selected large local enterprises (LLEs). This aimed to allow the LLEs to transform or expand overseas on a larger scale. 

Temasek is an investment company owned by the government of Singapore. 

*Singapore Dollar to USD as of 16 February 2021 - S$ 1.33/USD

 

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 16 Feb 2021 | Removal date: open ended

State aid, nes

On 16 February 2021, Singapore announced its Budget 2021 consisting of stimulus packages in response to the COVID-19 pandemic. In 2020, Singapore has provided some stimulus packages to help the economy to recover from the impact of the COVID-19 pandemic (see related Acts). Under Budget 2021, Singapore provided a cost relief of S$ 870 million (USD 656.6 million) to the aviation sector. This was to respond to the reduction of demand for aviation such as total passenger movements in Changi were only about 2% of the pre-COVID-19 level.

*Singapore Dollar to USD as of 16 February 2021 - S$ 1.33/USD

 
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Inception date: 16 Feb 2021 | Removal date: open ended

Financial grant

On 16 February 2021, Singapore provided a stimulus package to ease the impact of the COVID-19 pandemic. Under this package, Singapore provided S$ 133 million (USD 100.4 million) in the form of the COVID-19 Driver Relief Fund (CDRF) to the transport sector, taxi, and private hire car drivers. CDRF would be provided in the form of a grant to the drivers of the following companies:

  • The drivers of the ride-hail service operators known as Go-Jek, Grab, Ryde, and TADA companies  
  • The drivers of taxi service operators.

*Singapore Dollar to USD as of 16 February 2021 - S$ 1.33/USD

 
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Inception date: 16 Feb 2021 | Removal date: open ended

Capital injection and equity stakes (including bailouts)

On 16 February 2021, Singapore unveiled its stimulus package under Budget 2021. Under this budget, Singapore provided S$500 million (USD 377.1 million) to be co-invested with Temasek in a Local Enterprises Funding Platform to be managed commercially. Temasek would provide another S$500 million (USD 377.1 million) on top of the Government’s fund so the platform would have S$1 billion (USD 754.2 million) available for its investments. Some of this funding would be used to invest in non-control equity of selected large local enterprises (LLEs). This aimed to allow the LLEs to transform or expand overseas on a larger scale. 

Temasek is an investment company owned by the government of Singapore. 


*Singapore Dollar to USD as of 16 February 2021 - S$ 1.33/USD

 
 

 
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Inception date: 16 Feb 2021 | Removal date: open ended

Localisation incentive

On 16 February 2021, as part of its Budget 2021, Singapore allocated S$5.2 billion (USD 3.92 billion) to the Jobs Growth Incentive (JGI) from now to the end of September 2021. The companies who hired local would be provided with wage support from the month of hire. The JGI supports employers to expand local hiring so as to create good and long-term jobs for locals. To be eligible for the JGI, there should be an increase in overall local workforce size and an increase in local workforce size earning more than S$ 1,400 (USD 1055)/month.

*Singapore Dollar to USD as of 16 February 2021 - S$ 1.33/USD

 

 
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Inception date: 01 Jan 2022 | Removal date: 31 Dec 2022

Labour market access

On 16 February 2021, Singapore announced that it would reduce the number of S Pass work permit given to foreign experts in the manufacturing industry. Singapore would reduce the number of S Pass from a maximum of 20 percent to 18 percent of the total labor force in the manufacturing industry from 1 January 2022 - 30 December 2022. It aimed to promote the hire of the local workforce. The S Pass is a work permit for companies to hire workers with technical expertise.

 
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Inception date: 01 Jan 2023 | Removal date: open ended

Internal taxation of imports

On 16 February 2021, Singapore announced that it would impose Goods and Services Tax (GST) on the imported low-value goods (worth up to S$400 or USD 301) via air or post from 1 January 2023. The GST would increase from 0% to 7%. Singapore has already imposed a GST of 7% for imported goods via land and sea, regardless of the value.

*Singapore Dollar to USD as of 16 February 2021 - S$ 1.33/USD

 
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Inception date: 01 Jan 2023 | Removal date: open ended

Internal taxation of imports

On 16 February 2021, Singapore announced that it would impose Goods and Services Tax (GST) on the imported non-digital services such as live interaction with overseas providers of educational learning, fitness training, counseling, and telemedicine. The tax would be imposed on service providers who have an annual global turnover exceeding S$1 million (USD 754,261) and make B2C supplies of digital services to customers in Singapore exceeding S$100,000 (USD 75,426) annually. The GST would increase from 0% to 7% from 1 January 2023.

*Singapore Dollar to USD as of 16 February 2021 - S$ 1.33/USD

 
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Inception date: 16 Feb 2021 | Removal date: open ended

State aid, unspecified

On 16 February 2021, under its budget 2021, Singapore announced that it allocated $24 billion (USD 18.1 billion) to local firms and workers through various initiatives that aimed the followings:

  1. to grow a vibrant business community, with a strong spirit of innovation and enterprise, deeply connected with Asia and the world;
  2. to catalyze a wide range of capital to enable businesses to transform and scale; and
  3. to create opportunities and redesign jobs, for Singaporeans to develop their skills, creativity, and talents. 

 The fund would be used over a span of years from the announcement date. 

 
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Inception date: 01 Jan 2023 | Removal date: open ended

Labour market access

On 16 February 2021, to promote the local hire, Singapore announced that it would reduce the number of S Pass work permit given to foreign experts in the manufacturing industry. Singapore would reduce the number of S Pass from a maximum of 18 percent to 15 percent of the total labor force in the manufacturing industry from 1 January 2023. The S Pass is a work permit for companies to hire workers with technical expertise.

 
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