Support Measures

Follow Our Latest COVID-19 Updates

SINGAPORE: Forward, Together: Singapore Budget 2022

In light of Singapore's economy rebounding from the reverberations from the COVID-19 pandemic, Budget 2022 was unveiled by Singapore's Minister for Finance Mr Lawrence Wong on 18 February 2022. With the theme "Charting Our New Way Forward Together", Mr Wong laid out a wide range of measures to tackle Singapore's immediate challenges, including:

• S$500 million Jobs and Business Support Package to provide targeted help for workers and businesses in segments of the economy that are facing slower recovery;

• S$560 million Household Support Package that helps Singaporean families to manage cost of living pressures by providing support for daily essentials;

• S$600 million set aside to strengthen local enterprises under the Productivity Solutions Grant; and

• S$200 million to improve digital capabilities in businesses and workforces, such as investing in future technologies like 6G.

There were also tax measures and changes announced which were categorised as follows:

• Maintaining the Competitiveness and Resilience of the Tax System

• Building a Fairer and More Resilient Tax System

• Enhancing Service Delivery • Increasing the Carbon Tax

In this Update, we discuss selected tax measures, changes, enhancements, extensions, and refinements.

SINGAPORE: Application Period for Simplified Insolvency Programme Extended to 28 July 2022

The Ministry of Law has announced that the application period for the Simplified Insolvency Programme ("SIP") has been extended to 28 July 2022. The SIP helps eligible micro and small companies facing financial difficulties restructure their debts or wind up via simpler, faster and lower-cost restructuring processes. Entry into the SIP is initiated by the applicant company submitting an application to the Official Receiver. The application period was originally set at six months (from 29 January 2021 to 28 July 2021). However, in light of the continued challenges in the business environment arising from the COVID-19 pandemic, the application period has been extended for another year.

SINGAPORE: Budget Speech 2021 – Emerging Stronger Together

After an unprecedented year in which Singapore experienced its worst recession since independence and with the global battle against COVID-19 far from over, Budget Speech 2021 was delivered by Singapore's Deputy Prime Minister (DPM) and Minister for Finance Mr Heng Swee Keat on 16 February 2021. With the theme "Emerging Stronger Together", DPM Heng laid out the following plans to tackle Singapore's immediate challenges:

• The COVID-19 Resilience Package to reopen Singapore safely and sustain the momentum of its recovery;
• The Household Support Package for families, with greater support for families in need;
• Singapore's investments in economic and workforce transformation to emerge stronger; and
• The Singapore Green Plan 2030 to enhance sustainability and deal with climate change.

There were also tax measures and changes announced which were categorised in the following manner: 

• Extending Budget 2020 Temporary Tax Measures to Support Businesses;
• Updating Singapore's Tax Regime as the Digital Economy Grows;
• Maintaining the Competitiveness and Resilience of Singapore's Tax System;
• Emerging Stronger as a Community: Encouraging Philanthropy and Volunteerism;
• Encouraging Early Adoption of Electric Vehicles; and • Environmental Sustainability.

In this Update, we discuss selected tax measures, changes, enhancements, extensions, and refinements.

SINGAPORE: Simplified Insolvency Programme in Effect from 29 January 2021

In the midst of the COVID-19 pandemic, the Singapore government has introduced the Simplified Insolvency Programme ("SIP"), which seeks to support micro and small companies to restructure their debts or to wind up. The SIP has come into effect on 29 January 2021.

The SIP provides simpler, faster, and lower-cost restructuring and insolvency proceedings for eligible companies. It will be available for application for a period of 6 months from 29 January 2021 to 28 July 2021. In this Update, we highlight some of the key features of the SIP – in particular, we look at the eligibility criteria for the SIP as well as the application process.

SINGAPORE: August 2020 Ministerial Statement: Further Support for Businesses and Workers

Life seems unlikely to return to normal anytime soon as the COVID-19 pandemic continues to swirl around the globe, particularly for some key sectors such as aviation and tourism. As certain support lifelines provided for in the past four Budgets draw close to their expiry dates without significant alleviation of the need for them, there have been stirrings of unease among businesses and workers. 

On 17 August 2020, the Deputy Prime Minister and Minister of Finance, Mr Heng Swee Keat, released a Ministerial Statement setting out further financial support measures to help workers and businesses stay afloat in the short term and adapt by seizing growth opportunities in a COVID-19 world. 

This Update will focus on the measures targeting businesses and workers, which can be broadly categorised into the following: 

1. Extension of the existing Jobs Support Scheme ("JSS");
2. New Jobs Growth Incentives scheme to encourage hiring of locals;
3. Supporting workers; and
4. Sector-specific relief for aviation, tourism, and startups.

SINGAPORE: Insolvency, Restructuring and Dissolution Act to Come into Operation on 30 July 2020

On 23 July 2020, it was announced that the Insolvency, Restructuring and Dissolution Act 2018 ("IRDA"), together with 48 pieces of subsidiary legislation, will come into operation on 30 July 2020.

The IRDA is a significant piece of legislation and its implementation is set to effect major changes in the restructuring and insolvency regime in Singapore. Businesses and insolvency practitioners should be aware of the impending changes and the potential impact on the industry. It should also be noted that the COVID-19 pandemic has resulted in certain temporary measures which affect the operation of the insolvency framework.

This Update highlights the key elements of the IRDA, as well as the COVID-19 related measures which relate to personal and corporate insolvency.

SINGAPORE: Going Forth: Singapore's Fortitude Budget for Employers, Tenants, and Businesses

With the end of the circuit breaker period on 1 June 2020, the Singapore government has laid out a three-phase approach towards the resumption of normality. Phase One commenced on 2 June 2020 and is expected to last for at least four weeks, although this will be reassessed in mid-June 2020 with a view to shortening it. It is marked by a restart of some economic activities that do not pose a high risk of transmission, such as manufacturing and office work. Telecommuting must still be adopted to the maximum extent. Some major sectors, such as retail and dining-in, will not be permitted to reopen until Phase Two.

As progression to the next phase depends on the COVID-19 situation rather than a fixed timeframe, many businesses remain uncertain as to when they can reopen. On 26 May 2020, the Minister of Finance Mr Heng Swee Keat ("DPM Heng") announced the fourth Budget, christened the Fortitude Budget, to provide further relief in these times of economic uncertainty.

In this Update, we cover key aspects of the Fortitude Budget that relate to employers, tenants, and businesses.

SINGAPORE: Control and Support Measures in Singapore Amid the COVID-19 Pandemic

In response to the COVID-19 pandemic, Singapore has introduced a number of control and safe distancing measures progressively to manage the spread of COVID-19, and to provide relief to individuals and businesses affected by the outbreak. Under the COVID-19 (Temporary Measures) Act 2020 ("Act"), the Minister for Health has issued the COVID-19 (Temporary Measures) (Control Order) Regulations 2020 ("Regulations"), which seeks to minimise the movement of and interaction between individuals with effect from 7 April 2020. As part of Singapore's circuit breaker efforts to pre-empt the increasing trend of local transmission, the Regulations have been progressively updated with enhanced measures. The Regulations are stated to be in force until 4 May 2020 and may be extended if necessary; on 21 April 2020, Prime Minister Lee Hsien Loong announced that the circuit breaker period would be extended until 1 June 2020.

The Singapore Parliament has also introduced legislative provisions in the Act that will afford temporary relief from actions for parties unable to perform their contracts, repay loans or pay rent due to COVID-19 events, and will increase the monetary thresholds and time limits for insolvency and bankruptcy. In addition, the Government has introduced various initiatives to provide financial support for businesses and individuals during this time, including the Unity Budget, the Solidarity Budget, the Resilience Budget together with further support measures for businesses to cover the prolonged circuit breaker.

SINGAPORE: Extension of Support Measures for Businesses to Cover Prolonged Circuit Breaker

On 21 April 2020, the Singapore Government announced that the original circuit breaker measures ("Measures") lasting from 7 April to 4 May 2020 would be extended to 1 June 2020 (inclusive), totalling eight weeks of such Measures. These Measures include the closure of all non-essential businesses, which has since been further tightened such that only 15% of the usual workforce continues to physically attend at their workplaces.

The Solidarity Budget (covered in our earlier Client Update titled "In Solidarity: Third Budget to Support Businesses through COVID-19 Circuit Breaker Measures") announced several relief measures to assist employers in retaining their workforce. This has now been extended to cover the full circuit breaker period, and includes the enhanced Jobs Support Scheme ("JSS") and a second Foreign Worker Levy ("FWL") waiver and rebate.

This Update covers the above, as well as a further announcement from the Ministry of Manpower ("MOM") on its requirements of employers which may affect the receipt of the JSS and FWL payouts.

SINGAPORE: In Solidarity: Third Budget to Support Businesses through COVID-19 Circuit Breaker Measures

On 3 April 2020, Singapore announced that she was moving to implement circuit breaker measures to control the spread of COVID-19. As covered in our earlier Client Update, these circuit breaker measures include school closures and shutdowns for all businesses except those providing essential services, and will remain in place from 7 April 2020 to 4 May 2020 (both dates inclusive).

To alleviate the hardship consequent upon business closures, the Deputy Prime Minister and Minister for Finance, Mr Heng Swee Keat, announced the S$5.1 billion Solidarity Budget on 6 April 2020, of which S$4 billion will go towards supporting businesses and workers.

This Update discusses the additional support provided for businesses, which includes measures such as further enhancements to the Jobs Support Scheme and rebates for foreign worker levies paid in 2020. It also covers other relief measures employed by the Monetary Authority of Singapore ("MAS") to assist small and medium enterprises ("SMEs") with continued access to bank credit and insurance cover, and to ensure interbank funding markets remain liquid and well-functioning.

SINGAPORE: Lex Mundi Global Report on COVID-19 Government Support Measures

The economic fallout from the COVID-19 shockwave places many companies at financial risk. As governmental authorities formulate and roll-out new support measures intended to throw companies a lifeline, the Lex Mundi full-service member firms have come together to provide a snapshot of the policies implemented and announced in 104 jurisdictions.

In this wide-reaching report, the content for each jurisdiction is provided locally, by experts on the ground steeped in the local legal business culture. The guide gives a quick and comparative reference for the policies and measures across the respective jurisdictions.

Our Competition & Antitrust and Trade Practice contributed to the Singapore chapter of this guide, which will be regularly updated to take into account changes and additions to the measures announced thus far. If you have any question, do not hesitate to contact Ms Kala Anandarajah (kala.anandarajah@rajahtann.com).

For more information, please click here for the full guide. An interactive version of the guide will be uploaded shortly to the Lex Mundi website.

SINGAPORE: COVID-19 Resilience Budget and MOM Relief Measures: Additional Support for Businesses

Since the announcement of Budget 2020 (also known as the Unity Budget) a bare five weeks ago, the Deputy Prime Minister and Minister of Finance, Mr Heng Swee Keat, has unveiled the S$48 billion Resilience Budget on 26 March 2020 to help Singapore weather the "mighty storm" of COVID-19. In a mark of the extraordinary times, this is only the second time that Singapore's reserves have been drawn on in her history.

Apart from the relief measures that directly assist households, the Resilience Budget sets aside funds to implement new schemes and enhance existing ones to support businesses in these crippling times. Key measures are elaborated on below, together with a consolidation of recent non-Budget measures implemented by the Ministry of Manpower ("MOM") to provide relief to employers to cope with manpower issues.