Look Back At Recent Budgets

As we look forward to Budget 2019, check out some of the recent Budget measures that created a positive and significant impact to businesses and the lives of Singaporeans every day.

infrastructure-thumbnail Infrastructure: There’s No Place Like Home
English (pdf 287kb) Chinese (pdf 455kb) Malay (pdf 256kb) Tamil (pdf 768kb)
healthcare-thumbnail Healthcare: The Heart Of Healthcare
English (pdf 746kb) Chinese (pdf 818kb) Malay (pdf 1,212kb) Tamil (pdf 660kb)
job-thumbnail Jobs: Good Jobs, Bettter Careers
English (pdf 266kb) Chinese (pdf 380kb) Malay (pdf 286kb) Tamil (pdf 928kb)
social-support-thumbnail Social: A Helping Hand Can Change Lives
English (pdf 261kb) Chinese (pdf 417kb) Malay (pdf 261kb) Tamil (pdf 241kb)

Economic Schemes

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Scheme Short Description Year of Implementation Cost of Initiatives Scheme Beneficiaries Remarks

Schemes to support Continuing Education and Training (CET), including SkillsFuture - (MOE/ MOM/ MTI/ SkillsFuture SG)

To provide Singaporeans with the opportunities to develop to their fullest potential throughout life, regardless of their starting points.

2015

Increased spending on continuing education and training from $600 million per year (2010-2015) to over $1 billion per year (2015-2020)

All Singaporeans who want to improve themselves through learning and education

CET measures launched include: SkillsFuture Credit, SkillsFuture Earn and Learn, SkillsFuture Fellowships, SkillsFuture Leadership Development Initiative, SkillsFuture Mentors

National Trade Platform (NTP) - (Customs/SPRING/ GovTech/IMDA)

The NTP is a one-stop trade information management system that will enable electronic data sharing among businesses and government, and serve as an open innovation platform for service providers to develop value-added services and apps.

2017

Expected to cost more than $100 million

Supports firms, particularly in the logistics and trade finance sectors

It has the potential to bring over $600 million worth of man-hour savings each year to firms.

SMEs Go Digital Programme (IMDA)

To help SMEs build digital capabilities by:

a) Providing SMEs with step-by-step advice on the technologies to use at each stage of their growth through the sectoral Industry Digital Plans.

b) Providing SMEs with in-person help at SME Centres and the new Digital Tech Hub; and

c) Providing advice and funding support to SMEs that are ready to pilot emerging ICT solutions.

2017

$80 million (announced in 2017)

SMEs

Industry Digital Plans for the Retail and Logistics sectors have been launched. The IDPs work as a guide for local SME companies to digitalise their businesses, plug skills gaps and participate in national innovation initiatives.

The SME Digital Tech Hub, established by IMDA and operated by ASME, provides specialist digital technology advisory to SMEs with more advanced digital needs, such as data analytics and cybersecurity.

Wage Credit Scheme (WCS) To help companies defray operating costs, the WCS was introduced to support firms in their restructuring and upgrading journey.
The Government will co-fund wages increases given to Singaporean employees earning a gross monthly wage up to $4,000.
In Budget 2018, WCS was extended for three years, i.e. 2018, 2019 and 2020 $1.8 billion over three years (announced in 2018)  All companies The WCS has extended for three more years, to fund 20%, 15% and 10% of wage increases in 2018, 2019, and 2020 respectively. 
Corporate Income Tax (CIT) Rebate To ease business costs and support restructuring by companies, it was announced in Budget 2018 that the CIT rebate would be enhanced for Year of Assessment (YA) 2018 and extended to YA 2019. Enhanced for YA 2018; extended to YA 2019 Additional $475 million (announced in Budget 2018)  All tax-paying companies The CIT rebate has been enhanced and extended to 40% of tax payable, capped at $15,000 for YA 2018 and extended at 20% of tax payable, capped at $10,000 for YA 2019. 
Productivity Solutions Grant (PSG)  To support firms to keep up with the rapid pace of change, existing grants will be streamlined for adoption of pre-scoped, off-the-shelf technologies into one PSG.   2018 NA All companies Up to 70% funding support for the adoption of pre-scoped, off-the-shelf solutions to improve productivity. 
Enterprise Development Grant (EDG)  The EDG helps Singapore companies grow and transform. This grant supports projects that help companies upgrade their business, innovate or venture overseas, under three pillars:

a) Core Capabilities
b) Innovation & Productivity
c) Market Access
2018 NA  All companies  The grant funds up to 70% of qualifying project costs namely third-party consultancy fees, software and equipment, and incremental internal manpower cost. 
Tech Skills Accelerator (TeSA) Scheme  Tripartite initiative by the Government, industry, and NTUC, to build and strengthen the digital workforce and to enhance employability outcomes in the ICT profession.  2016 (enhanced in Budget 2018) $145 million over three years (announced in Budget 2018)  All Singaporeans who seek to upgrade and acquire new skills in the Information and Communications Technology (ICT) industry.  TeSA provide programmes to develop more local ICT professionals in emerging skill areas like data analytics, artificial intelligence, and cyber security:

a) Company-led Training
b) Tech Immersion and Placement Programme (TIPP)
c) Critical Infocomm Technology Resource Programme Plus (CITREP+)
 

Social Schemes

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Scheme Short Description Year of Implementation Cost of Initiatives Scheme Beneficiaries Remarks

KidSTART - (MSF/ECDA)

Initiative that draws together government and community resources to help vulnerable children up to age 6 receive age-appropriate learning and developmental support, through three components: Regular home visits, playgroup sessions and enhanced pre-school support

Pilot introduced in 2016

The 3-year pilot is estimated to cost more than $20 million

About 1,000 children are expected to benefit

Research shows that experiences in the early years of a child’s life significantly influence his or her physical, cognitive, and social development.

Programme components include regular home visits, community-based playgroup sessions, as well as enhanced support in selected pre-schools. Pilot sites include Kreta Ayer, Bukit Merah, Taman Jurong, Boon Lay, and Geylang Serai.

CPF Housing Grant for resale flats - (HDB)

A grant to help make HDB resale flats even more affordable for first-timer homebuyers.

Together with the Additional CPF Housing Grant and Proximity Housing Grant, eligible first-timer families buying a resale flat can now enjoy up to $110,000 in housing grants.

Enhanced in 2017

-

First-timer applicants who choose to purchase HDB resale flats

In 2017, the Government enhanced the CPF Housing Grant for HDB resale flats from $30,000 to $50,000 (for households who purchase 4-room or smaller resale flats) and $40,000 (for households who purchase 5-room or bigger resale flats).

Special CPF Housing Grant (SHG) - (HDB)

A grant to help low-income families make a first-time purchase of a Build-to-Order flat, on top of the existing Additional CPF Housing Grant

SHG was introduced in 2011 to provide additional help to low-income citizen families, with a monthly income ceiling of $2,250, and a maximum grant quantum of $20,000. It was also initially restricted to 3R and smaller flats in non-mature estates (NMEs)

Introduced in 2011

-

Low- to middle-income families

There were two significant enhancements since introduction in 2011:

1. In 2013, the Government increased the income ceiling to $6,500 and extended it to households buying 4R and smaller new flats in NMEs

2. In 2015, the Government increased the income ceiling to $8,500 and doubled the maximum grant quantum to $40,000

GST Voucher (GSTV) Scheme – (MOF)

The permanent GSTV scheme was introduced by the Government in Budget 2012 to help lower-income Singaporeans. The GSTV is given in three components – Cash, Medisave and U-Save.

Introduced in 2012

~$6 billion set aside in GST Voucher Fund for FY12 to FY20; $1.5 billion top-up in FY17

~1.57 million Singaporeans and ~880,000 HDB households

In 2017,

  • 1.37 million citizens received up to $500 cash comprising the regular GSTV – Cash and the one-off GSTV – Cash Special Payment to help lower-income households with expenses.
  • 450,000 citizens aged 65 and above received up to $450 in GSTV – Medisave
  • 880,000 HDB households receive up to $380 U-Save rebates. The quantum of GST Voucher – U-Save rebates was also increased by between $40 and $120, depending on flat type.

Special Employment Credit (SEC) - (MOM)

SEC encourages employers to hire Singaporeans aged 55 and above, and earning up to $4,000 a month by offering wage offsets of up to 8% of the employee’s monthly wages.

With the increase of the re-employment age to 67 from 1 Jul 2017, the Additional Special Employment Credit is extended to provide additional wage offsets to employers hiring older Singaporean workers above the re-employment age earning up to $4,000 a month. This will support (i) workers older than the re-employment age, and (ii) those who are 65 or older as of 1 Jul 2017 and hence not covered by the increase in re-employment age to 67.

Introduced in 2011 and extended to end of 2019

$1.1 billion over the next 3 years (2017-2019)

The extended SEC will cover about 340,000 workers, or about three in four older Singaporean workers

The Government has introduced several measures to support the continued employment of older workers. Other measures include re-employment legislation, higher CPF contributions for older workers, Workfare Training Support and initiatives under the Tripartite Alliance for Fair Employment Practices.

Silver Support Scheme - (MOM/CPF)

The Silver Support Scheme provides quarterly cash supplement to the bottom 20% of Singaporeans aged 65 and above. These are individuals who had low incomes through life and who currently have little or no family support.

Introduced in 2016

$320 million in the first year

Will benefit more than 140,000 seniors

Three sets of criteria used in combination to determine eligibility: lifetime wages, housing type, level of household support.

Workfare Income Supplement (WIS) - (MOM/CPF/ Workforce SG)

Supplements incomes and retirement savings of the bottom 20% of workers, with some support also provided to those up to the 30th income percentile

Introduced in 2007; regular subsequent enhancements, with the last enhancement in 2017

$770 million in 2017

460,000 Singaporean workers

Qualifying income ceiling increased from $1,900/month to $2,000/ month from 1 Jan 2017

Higher WIS payouts of up to $3,600 per year.

Community Network for Seniors - (MOH)

The networks will comprise local stakeholders, such as Voluntary Welfare Organisations (VWOs), community volunteers, schools and businesses. At the core is a small team of full-time officers who will study the health and social needs of seniors and draw together stakeholders to provide coordinated support.

Bring together Government agencies and community partners to do ABC:
a) A is for Active Ageing, to encourage seniors to remain active and stay healthy.
b) B is for Befriending, to link up lonely seniors with new friends.
c) C is for Care, for frail and vulnerable seniors.

Pilot started in 2016. Announced in Budget 2018 that it will be expanded nationwide by 2020           

NA

Pilot launched at three precincts across the island which helped almost 800 seniors

Integrates resources and efforts of government agencies, VWOs and local volunteers

Ambassadors under the Pioneer Generation Ambassadors Programme will guide seniors in health screening exercises, join group exercises and provide more information on active ageing and befriending services.

Government is reviewing our processes to achieve better integration of health and social services for seniors. Programme will be extended to other constituencies.

Community Mental Health Masterplan - (MOH)

The Community Mental Health (CMH) Masterplan is a 5-year masterplan to strengthen our community mental health services and better support persons with mental health conditions in the community. Key aspects of the masterplan include improving early identification of mental health symptoms, expanding mental health services in polyclinics, and strengthening integrated health and social care services in the community.

First 5-year CMH Masterplan was launched in 2012, with the second launched in 2017

The second CMH Masterplan will cost an additional $160 million from FY17 to FY21

Persons with mental health conditions

Initiatives include establishing more Dementia-Friendly Communities, providing mental health and dementia services within polyclinics, and expanding the number of community outreach teams and allied health community intervention teams

Enabling Masterplan 3 - (MSF)

5-year national plan to support persons with disabilities and their caregivers, providing help in areas such as early intervention and education, employment, care services, assistive technologies and accessibility.

2017 – 2021

$400 million per year on initiatives for persons with disabilities and their caregivers

Persons with disabilities and their caregivers

Initiatives include the School-to-Work Transition Programme, setting up a new Disability Caregiver Support Centre, and enhancements to the Taxi Subsidy Scheme.