Dubbed the Construction Support Package, the fund aims to help construction firms offset additional compliance costs due to COVID-19.
Due to the ongoing COVID-19 outbreak, travel providers like airlines and hotels have been offering waivers of change or cancellation fees for travel to affected areas. If you have upcoming travel plans, it’s good to keep abreast of the latest developments, so you know your […]The post COVID-19: Airline And Hotel Cancellation Fee Waiver Policies appeared first on SingSaver Blog - We Compare, You Save.
The government expects the number of unemployed residents in Singapore to rise to above 100,000 this year due to the COVID-19 pandemic, said Deputy Prime Minister and Finance Minister Heng Swee Keat.
Should the government cut CPF contribution rates, it would do so “very carefully”, said Manpower Minister Josephine Teo on Thursday (4 June).
Fortitude Budget targeted to provide further clarity in helping SMEs to survive COVID-19 and its effects The Singapore government has announced a fourth round of support measures in Parliament on May 26, 2020 to help businesses, workers and households mitigate the coronavirus (COVID-19) impact. The new "Fortitude Budget" follows the Unity Budget announced on February 18, the Resilience [&hellipThe post Fortitude Budget targeted to help SMEs cope with Covid-19 appeared first on iCompareLoan Resources.
SINGAPORE (EDGEPROP) - The Singapore government is extending its rental relief support to benefit more small and medium enterprises (SMEs), says Deputy Prime Minister (DPM) Heng Swee Keat. He said this in a parliamentary address on May 26 to unveil the government’s proposed fourth budget — named the Fortitude Budget — to support the country amid the Covid-19 pandemic.The DPM, who is also the Finance Minister, stated that many businesses, especially SMEs, have voiced their difficulties in meeting rental costs at this time. “We will significantly add to the support for rental costs earlier provided through the Property Tax Rebate for 2020 in the Unity and Resilience Budgets,” says DPM Heng.The government will provide a cash grant to offset the rental costs of SME tenants, which will be disbursed through property owners. The grant will cost the government about $2 billion in total, and will be disbursed automatically from the end of July.Table: Ministry of FinanceResponding to the new support measures, the Real Estate Developers' Assoiation of Singapore (REDAS) says it welcomes the Government’s continued effort to help businesses manage costs in these challenging times. A Redas spokesperson adds: "We would urge our members who are owners of malls and non-residential properties to work closely with their tenants to provide the necessary assistance on a win-win approach to ensure business sustainability & continuity."Christine Li, head of research for Singapore and Southeast Asia at Cushman & Wakefield, says: “The expanded rental relief for SMEs is a welcome one, as SME tenants in commercial properties are also part of the ecosystem of the real estate sector. The risk sharing between the government and the private landlords will allow SME tenants to benefit from four months of rental relief in total.”DPM Heng says that together with the previously announced Property Tax Rebate, the government will offset about two months of rental for qualifying SME tenants of commercial properties. This translates to about a month’s rent for qualifying SME tenants in industrial and office properties. SME property owners who run a trade or business on their own property will also be eligible for the new cash grant. This new grant comes on top of the $1.8 billion set aside for the Property Tax Rebate.To ensure that SME tenants benefit from this handout, the government will table a new Bill that will mandate that landlords grant a rental waiver to their SME tenants, “who have suffered a significant revenue drop in the past few months”, says the DPM. On top of a cash grant to offset the rental costs for SME tenants, the government will introduce legislation to mandate that landlordspass on the benefits to their tenants. (Picture: Samuel Isaac Chua/The Edge Singapore)DPM Heng notes that the government does not ordinarily intervene in contracts after they have been signed, but this is an “exceptional situation” where the government needs to step in with “temporary targeted steps to safeguard the economic structure for the common good”, he says. The new Bill will also cover provisions on temporary relief from “onerous contractual terms” such as excessive late payment interest or charges. When passed, the Bill will allow tenants to pay their arrears through instalments.But according to Li, some landlords will be stuck in a difficult situation if the mandatory rental waiver is legislated. “Many asset owners and operators (of commercial real estate) are faced with drastically reduced operating income arising from concessions and rebates they have to dish out to save struggling tenants,” she says.Li adds: “Assets that thrive on the intensification of real estate and human interactions could also experience a much longer-term fundamental drop in future demand. By subjecting them to the mandatory rental waiver for their tenants, it could create a bigger problem down the road when these asset owners are unable to re-position their properties in time to tide through the difficult period.”Tay Huey Ying, head of research & consultancy at JLL, notes that another standout in the Fortitude Budget is the shift from saving jobs to reskilling the workforce. This demonstrates the government’s efforts to provide businesses and workers with a much needed push to transform and prepare for the new norm post COVID19, she says.Tay adds: "Overall, the size and emphasis of the Fortitude Budget in areas not adequately addressed in the earlier budgets should go some way to prolong the lifespan of more businesses and cushion the dent in demand for real estate arising from the protracted fight against COVID19."Read also: * Post-Covid-19 recovery in private residential market expected to be similar to post-H1N1 rally * CDL commits $6 mil more to support tenants amid extended circuit breaker * No further help for landlords but combined measures could soften blow on real estate marketSee Also: * Singapore Property for Sale & Rent, Latest Property News, Advanced Analytics Tools * The reimagined office * Singapore’s private home prices likely to rebound after Covid-19 * Remote working tougher for younger workers, survey shows * Some relief for landlords required to provide extra rental waivers for tenants * En Bloc Calculator, Find Out If Your Condo Will Be The Next en-bloc * HDB Resale Flats Up For Sale, Affordable Units Available
The question is not if we will see a drop in Singapore's economic growth. The important question is how quick and steep we expect the recovery to be, once we open up the economy.
A new Bill to be read Singapore’s Parliament next week seeks to force landlords to grant rental waivers to their small-business tenants impacted by the COVID-19 pandemic.
The Singapore government has unveiled a $2 billion scheme to create almost 100,000 opportunities in jobs, traineeships and skills training, Deputy Prime Minister and Finance Minister Heng Swee Keat said on 26 May.
The Singapore government will set aside an additional $13 billion in the Contingencies Funds, which is specifically for urgent and unforeseen expenditure needs.
Finance Minister Heng Swee Keat announced on Tuesday (26) that the government would be setting aside another $33 billion as part of its COVID-19 response.
SINGAPORE — The Solidarity Budget will be boosted by a further $3.8 billion in line following the extension of the circuit period to help businesses and workers cope with its impact amid the coronavirus pandemic.
SINGAPORE — Over 140,000 employers will start to receive the first tranche of payouts totalling over $7 billion under the Jobs Support Scheme (JSS) to help cover the wages of over 1.9 million local employees in Singapore amid the COVID-19 pandemic.
Desperate times call for desperate measures. With the unprecedented health and economic havoc being wrecked by COVID-19, the Singapore government has launched a record-breaking relief package in response. The $53.1 billion (yes, with a ‘b’) Resilience and Solidarity Budget aims to do three things: support […]The post Resilience & Solidarity Budget To Tide You Over COVID-19 Circuit Breaker appeared first on SingSaver Blog - We Compare, You Save.
SINGAPORE (EDGEPROP) - The new “Solidarity Budget”, announced on April 6, in essence supplements and expands on the Resilience Budget announced on March 26, and is the second supplementary budget following the Unity Budget announced on Feb 18. The measures introduced in the Solidarity Budget include enhancing the Jobs Support Scheme and the Self-Employed Person Income Relief Scheme.(Photo: Albert Chua/EdgeProp Singapore)“The most significant parts of the Solidarity Budget are assistance schemes that would strengthen the job security of employees and the self-employed in Singapore,” says Nicholas Mak, head of research & consultancy for ERA Realty.The measures include enhancing the Jobs Support Scheme and the Self-Employed Person (SEP) Income Relief Scheme. It is also targeted at providing immediate or short-term relief, for instance, the increase in wage credits and waiver of foreign worker levy to help businesses keep workers. It will also bring forward, and increase, cash handouts to Singaporean households.The Ministry of Law will introduce a Bill on April 7 to let businesses and individuals defer certain contractual obligations such as rent payment, loan repayment or work completion, for a period. The Bill will also ensure that property owners pass on the property tax rebate in full to tenants. The earlier-announced 30-100% property tax rebates could amount to 3% to 10% of annual rent for tenants, says Tricia Song, Colliers International head of research for Singapore.Meanwhile, government agencies will increase the rental waiver for industrial, office and agricultural tenants to one month, from 0.5 month before, notes Song. Stall owners under hawker centres managed by National Environment Agency (NEA) will enjoy three months of rental waivers, while retail tenants will receive two months of rental waivers.“This Bill favours predominantly tenants as well as contracted service providers, and gives them much-needed reprieve from contractual obligations,” says Desmond Sim, CBRE head of research for Southeast Asia. “In particular, the new Bill will likely see commercial landlords bearing the brunt with premature deferments of rental income.”In addition, the proposed new Bill will offer respite for businesses under contract but faced with cashflow and manpower crunch, adds Sim."Retailers, especially those in the F&B trade, will welcome the enhanced jobs support scheme and the waiver of foreigner worker levy for April,” says Wong Xian Yang, Cushman & Wakefield associate director of research for Singapore and Southeast Asia. “Labour costs make up almost half of business costs. Retailers can draw on the various financing schemes to support their working capital needs." Retailers, especially those in the F&B trade, will welcome the enhanced jobs support scheme and the waiver of foreigner worker levy for April (Photo: Albert Chua/EdgeProp Singapore)The Solidarity Budget does not offer additional assistance for private landlords or developers, points out Colliers’ Song.If anything, landlords seem to be getting the short end of the stick, notes Cushman & Wakefield’s Wong. “Landlords still need to service their mortgage loans, which consist of interest costs and principal repayments. Unless landlords are also getting a reprieve from the banks, their short-term cashflow would also be impacted.”(Read more at Covid-19 Solidarity Budget: What about the landlords? and Small businesses whipsawed by Covid-19 crisis get some financial relief)Wong also points out that repayment schedules would also need to be fleshed out clearly under the Covid-19 (Temporary Measures) Bill that was announced on April 1. “It is unlikely that tenants would be able to pay back the deferred rents at one go after a break of six months or even longer,” he says. “In light of the upcoming new bill, some landlords may even choose to commit to more rental rebates, provided that tenants do not defer their rental payments. This would be a win-win situation.”Residential development timelines are also likely to be delayed with the temporary suspension of construction and closure of show suites, says CBRE’s Sim. “Moving forward, we could see more developers engage in the use of technology to ensure businesses continuity.” Residential development timelines are also likely to be delayed with the temporary suspension of construction and closure of show suites (Photo: Albert Chua/EdgeProp Singapore)By keeping the unemployment rate low, the risks of property foreclosures due to borrowers unable to meet their mortgage obligations would also be lowered, notes ERA’s Mak. “In the past major economic downturns, foreclosed properties that were subsequently sold at lower prices contributed to downward pressure on real estate price trends,” he explains.Furthermore, the weak employment market would also “suppress real estate demand and values in a few ways”, says Mak. First, most potential buyers are unlikely to invest in real estate or upgrade to a more expensive home if their job security is in question. Second, credit for real estate purchases could be tightened as banks become more stringent in granting mortgages, he explains.Therefore, the Solidarity Budget, together with the Resilience Budget, “could soften the adverse impact of the Covid-19 outbreak on the real estate market”, adds Mak.Read more: * Solidarity Budget will cushion extent of job losses, but might still not be enough * 'Life saving' $5.1 billion package for 'unprecedented' times lauded * ERA unveils its own Covid-19 response plans for agentsSee Also: * Singapore Property for Sale & Rent, Latest Property News, Advanced Analytics Tools * Corporate real estate staff will return to office in waves, survey shows * Keppel Asia Infrastructure Fund to raise capital commitments of US$570 mil * Three-storey conservation terraced house at Mount Sophia for sale at $3.8 mil * [UPDATED] What’s in store for Asia-Pacific real estate in the coming quarters * En Bloc Calculator, Find Out If Your Condo Will Be The Next en-bloc * HDB Resale Flats Up For Sale, Affordable Units Available
SINGAPORE — Changi Airport will be suspending operations at Terminal 2 (T2) for 18 months from May, said Transport Minister Khaw Boon Wan in Parliament on Monday (6 April).
SINGAPORE — More self-employed persons will get cash assistance under broader measures targeted at them unveiled in the Solidarity Budget to deal with the impact of the COVID-19 outbreak.
SINGAPORE — A Bill will be introduced on Tuesday (7 April) to ensure that property owners pass on the 100 per cent Property Tax Rebate for non-residential properties to their tenants.
All adult Singaporeans will receive a one-off cash payment of $600 under the $5.1 billion Solidarity Budget unveiled by Deputy Prime Minister and Finance Minister Heng Swee Keat on Monday (6 April). The minister said that the payout - totalling $1.1 billion - involves an additional $300 above the existing $300 payment from the Care and Support Package he announced during Budget 2020 on 18 February. Heng added that other cash payouts under the Care and Support Package, which were announced in Budget 2020 in February, will be brought forward to June instead of August.
Finance Minister Heng Swee Keat unveiled a $5.1 billion Solidarity Budget to help the Singapore economy tide through its circuit breaker period.
Owners of non-residential property will soon be required by law to pass on property tax rebates to their tenants, the Ministry of Finance said.
Homeowners will soon be able to apply to their banks to defer repayments of property loans until 31 December this year, as part of the measures unveiled by the Monetary Authority of Singapore (MAS).
Singapore’s central bank said local lenders will help clients with good credit history meet their loan obligations and access financing during the virus-induced economic downturn, while ensuring banks have low-cost funding.
As companies navigate this rapidly developing crisis, ensuring business continuity and saving jobs to secure the talent when the window of recovery opens will be important.