Budget 2020 Overview
What does it mean for your business?
As your business deals with new challenges and complexities, how can you stay nimble and embrace transformation to take advantage of emerging growth opportunities?
Budget 2020 introduces new measures and initiatives to help businesses develop new capabilities, deal with short-term challenges and set the stage for long-term growth.
#1 Digital Resilience Bonus
- Support for businesses to improve competitiveness and productivity through digitalisation, and adapt to safe management practices.
- As a pilot in Budget 2020, the Bonus will target businesses in F&B and Retail that are most affected by safe distancing requirements.
- Eligible businesses will receive up to S$10,000 if they adopt baseline digital solutions such as PayNow Corporate and e-invoicing, as well as digitalise business processes, create online channels and implement data mining and analytic solutions.
To be eligible for the grant, businesses must meet the following criteria:
- UEN falls under Food Services and Retail sectors
- UEN incorporated on or before 26 May 2020
- Adopt PayNow Corporate and Peppol e-invoicing; and
- Adopt the digital solutions in the required categories
For more information, please contact IMDA at info@imda.gov.sg.
#2 Enterprise Leadership for Transformation (ELT)
- One-year programme that supports business leaders of promising SMEs to acquire business growth and transformation capabilities through executive training, and to develop and implement a business growth plan.
- Offers access to an alumni network for peer learning and collaboration.
- ELT will be delivered by a network of knowledge partners, financial institutions, and experienced industry partners.
- Eligible enterprises can qualify for up to 90% funding of programme fees.
- The ELT is suitable for business owners or leaders who have grown their businesses beyond S$5 million, with the commitment to bring their enterprises to the next stage and see through the programme.
#3 SkillsFuture Enterprise Credit
- A one-off S$10,000 credit will help eligible employers cover up to 90% of out-of-pocket expenses for eligible enterprise or workforce transformation schemes as part of the Budget plans.
- Employers who have contributed at least S$750 Skills Development Levy (SDL) in total in the preceding 12 months and have at least three Singapore Citizens or Permanent Residents (SC/ PR) employed in each of the preceding 12 months will automatically qualify for the credit and be informed.
- Valid from 1 April 2020 to 30 June 2023.
#4 Productivity Solutions Grant (PSG)
The Productivity Solutions Grant (PSG) supports companies keen on adopting IT solutions and equipment to enhance business processes. The Budget continues to give solid support to businesses in Singapore.
For a start, PSG covers sector-specific solutions including the retail, food, logistics, precision engineering, construction and landscaping industries. Other than sector-specific solutions, PSG also supports adoption of solutions that cut across industries, such as in areas of customer management, data analytics, financial management and inventory tracking.
SMEs can apply for PSG if they meet the following criteria:
- Registered and operating in Singapore
- Purchase/ lease/ subscription of the IT solutions or equipment must be used in Singapore
- Have a minimum of 30% local shareholding; with Company’s Group annual sales turnover less than S$100 million, OR less than 200 employees (for selected solutions only)
SUPPLEMENTARY BUDGET
- Maximum support level will be raised from 70% to 80% from 1 April 2020 to 31 December 2020.
- Expanded scope of solutions to help enterprises implement COVID-19 business continuity measures:
- Online collaboration tools
- Virtual meeting and telephony tools
- Queue management systems
- Temperature screening solutions
#5 Enterprise Development Grant (EDG)
Today and into the future, companies that thrive are the ones that have strong business foundations and strategies, adopt technology and innovative processes, and grow their overseas presence.
The Enterprise Development Grant (EDG) helps Singapore companies grow and transform. This grant supports projects that help you upgrade your business, innovate or venture overseas, under three pillars:
SUPPLEMENTARY BUDGET
- Maximum support level will be raised from 70% to 80% from 1 April 2020 to 31 December 2020.
- For firms that are most severely impacted by COVID-19, the maximum support level can be further raised to 90% on a case-by-case basis.
- Unionised enterprises and e2i partners under the Labour Movement are eligible to receive an additional 10% funding support, subject to NTUC e2i’s assessment.
