(Singapore, May 26, 2020) The Singaporean government announced today an additional budget of $33 billion to support the next phase of its fight against Covid-19, including the creation of 100,000 job vacancies and vocational opportunities.
Thus, the overall Budget deficit for FY2020 will increase to $74.3 billion, or 15.4 percent of GDP, largest since S’pore’s independence in 1965, Deputy Prime Minister and Finance Minister Heng Swee Keat said in unveiling the details of the fourth round of Budget measures to help Singapore through the Covid-19 situation.
Together with the previously announced budgets in three batches, the Government will be dedicating close to $100 billion or 19.2 percent of our GDP, to support Singaporeans in this battle.
“Altogether, we are looking at drawing up to a total of $52 billion from past reserves this financial year to enable Singaporeans to tide through this crisis and emerge stronger,” he said, noting that the President has given her in-principal support for a further draw of $31 billion from our past reserves to fund the measures in this Budget.
The announced 100,000 job opportunities will be launched in three areas – 40,000 jobs, 25,000 traineeships, and 30,000 skills training courses.
Besides, hiring incentives will be provided to employers to hire local workers who have gone through eligible traineeship and training schemes.
For eligible workers aged 40 and above, the incentive will be doubled to cover 40 percent of salary over six months, capped at $12,000 in total.
Together with other support schemes such as the special SkillsFuture Credit top-up of $500 to every Singaporean aged 40 to 60 in 2020, the Government is providing specially enhanced support for jobs and training for this group.
Besides, the hiring incentive will be expanded to cover workers of all ages. For eligible workers under 40, this incentive will cover 20 percent of the monthly salary over six months, capped at $6,000 in total. About $2 billion set aside for the SGUnited Jobs and Skills Package this year.
“The battle against Covid-19 will be a long one, and the road ahead will be uncertain, with more ups and downs,” says Mr. Heng.
“The current generation must have the fortitude to persevere, to adapt and to emerge stronger, just like Singapore’s founding generation,” he added, noting that this is why this support package was named the Fortitude Budget, which means courage in adversity, he says.
“Moving forward with fortitude – as we stay united as one people, remain resilient in the face of adversity, and stand in solidarity with one another,” he said.
