Singapore Budget 2020 – 5 Takeaways for the Food & Beverage Industry
Singapore announced it’s 2020 budget on Tuesday, 18th Feb 2020, with a focus on
short-term challenges such as the impact of the coronavirus outbreak as well as long-
term economic development.
Here are 5 measures of benefit to the Food & Beverage Industry in Singapore:
1. Jobs support scheme = Employers will receive 8% cash grant for a period of 3
months on the gross monthly wage (capped at $3,600) of each of their
Singaporean / PR employee. The grant will be automatically distributed to the
company’s bank account by July and will be based on the Oct-Dec 2019 CPF
2. Enhanced wage credit scheme = Government will co-fund wage increase for
Singaporean staff by 20% (for wages raised in 2019) and 15% (for wages raised
in 2020). The credit will be distributed to company bank account in the
second half of the year (2)
3. Corporate tax rebate = For financial year 2019 (Year of Assessment
2020), 25% tax rebate will be given (capped at $15,000) on tax payable (3).
4. Rent = National Environment Agency-managed Hawker centers will offer
one-month rental waiver to its tenants while HDB is offering half-month
rental waiver to its commercial tenants. Furthermore, a 15% property tax
rebate has been announced for qualifying commercial properties in Singapore (4). According to the Deputy Prime Minister Mr Heng "I strongly urge landlords
to pass this on to their tenants by reducing rentals".
HINT: You may wish to liaise with your landlord on how do they plan to pass
on the property tax rebate to your company.
5. Working Capital Loan scheme = Enhanced by one year and loan component
doubled to $600,000.
HINT: You may wish to consider this scheme for short term working capital
needs provided that you meet the eligibility criteria which is; Company must
registered and operating in Singapore, Less then $100 million annual sales or
less than 200 group employees and minimum 30% Singaporean/PR
For further details, please check this link
According to Mr. Heng, additional support will be announced for the F&B sector in
due course and dependant on situational changes