building a strong, united singapore · forward in our journey to build a strong, united singapore....

BUILDING A STRONG, UNITED SINGAPORE

BUDGET IN BRIEF

BUILDING A STRONG, UNITED SINGAPOREAmid new forces reshaping the world today, Budget 2019 charts the way

forward in our journey to build a Strong, United Singapore.

Singapore’s history stretches back at least 700 years. 1819 was a key turning point. The British decision to declare Singapore a free port plugged us into an emerging network of global trade. This, and subsequent developments, transformed Singapore into a global node.

FOUR MAJOR SHIFTS

✤ Shift in global economic weight towards Asia ✤ Rapid technological advancements ✤ Changing demographic patterns ✤ Decline in support for globalisation

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✤ A Safe and Secure Singapore ✤ A Vibrant and Innovative Economy ✤ A Caring and Inclusive Society ✤ A Global City and Home for All ✤ A Fiscally Sustainable Future

CHARTING OUR PATH FORWARD

These shifts create challenges and opportunities. Budget 2019 is a strategic plan to allocate resources to build a Strong, United Singapore:

KEEPING SINGAPORE SAFE AND SECUREStrong and resilient as a people to overcome crises


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✤ Invest significantly to support our defence, security, and diplomacy efforts

• New Home Team Science & Technology Agency

• Digital Defence as sixth pillar of Total Defence

SAFE AND SECURE HOME FOR ALL

TRANSFORMING OUR ECONOMY

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Ensuring that our firms and workers remain competitive and relevant

SME CO-INVESTMENT FUND III✤ $100 million investment by Government

to catalyse private sector funding in SMEs that are ready to scale up

✤New programme to help high-growth local firms innovate, grow, and internationalise

ENTERPRISE FINANCING SCHEME✤ Streamlining of existing financing

schemes to better support SMEs to access bank financing

✤ Enhanced support for companies incorporated for less than five years

✤ Extension of enhanced support for working capital to support SMEs, until 31 March 2021

INNOVATION AGENTS PROGRAMME

✤ Pilot for enterprises to tap on experienced industry experts for advice on innovation and commercialisation opportunities

BUILDING DEEP ENTERPRISE CAPABILITIES

SCALE-UP SG PROGRAMME



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SMES GO DIGITAL PROGRAMME✤ Expansion of Industry Digital Plans to more sectors, and more choices of pre-

approved digital solutions

AUTOMATION SUPPORT PACKAGE✤ Two-year extension to support businesses in deploying impactful and large-

scale automation technologies (until 31 March 2021)

DIGITAL SERVICES LAB

✤ Pilot programme to address digitalisation challenges in services sectors, through collaboration with industry and research partners

BUILDING DEEP ENTERPRISE CAPABILITIES


ONE-STOP PORTAL FOR FIRMS TO TRANSACT WITH GOVERNMENT

✤ Launch of pilot portal for the food services sector, to streamline regulatory touch-points with Government, from up to 14 to 1



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NEW PROFESSIONAL CONVERSION PROGRAMMES✤ Support for mid-career professionals to enter new growth areas, e.g. blockchain,

embedded software development, and prefabrication

HELPING OUR PEOPLE SEIZE OPPORTUNITIES

SUSTAINING OUR EFFORTS TO RESTRUCTURE

✤ Two-step reduction of Services Sector Dependency Ratio Ceilings (DRCs):

✤ Defer earlier announced increase in levy rates for Marine Shipyard and Process sectors for another year

Current New

DRC 40% 38% from 1 Jan 2020 35% from 1 Jan 2021

S Pass Sub-DRC 15% 13% from 1 Jan 2020 10% from 1 Jan 2021


ENTERPRISE DEVELOPMENT GRANT (EDG)✤ Include positive outcomes for workers, e.g. wage increases, for all EDG-

supported efforts starting from 1 April 2020 ✤ Three-year extension (until 31 March 2023) of enhanced support level of up to

70%, in view of foreign workforce policy changes

PRODUCTIVITY SOLUTIONS GRANT ✤ Three-year extension (until 31 March 2023) of enhanced support level of up

to 70%, in view of foreign workforce policy changes

CAREER SUPPORT PROGRAMME

✤ Two-year extension to provide wage support for companies that hire Singaporeans who are mature and retrenched, or in long-term unemployment (until 31 March 2021)


✤ Expand scope to also support out-of-pocket cost for training, capped at $10,000


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PARTNERING TO WIN

FRAMEWORK FOR SECURE EXCHANGE OF ELECTRONIC TRADE DOCUMENTS

✤ Achieve productivity gains from digitalising trade documents and secure exchange of electronic trade documents

HOST SINGAPORE WEEK OF INNOVATION AND TECHNOLOGY (SWITCH) AND SINGAPORE FINTECH FESTIVAL (SFF) TOGETHER

✤ Enhance Singapore’s position as an innovation node through bringing together start-ups and investors

✤ Hold SWITCH and SFF in the same week in mid-November

LOCAL ENTERPRISE AND ASSOCIATION DEVELOPMENT (LEAD) PROGRAMME

✤ Help for key Trade Associations and Chambers (TACs) to adopt more strategic and longer-term plans to drive industry transformation


GLOBAL READY TALENT PROGRAMME

✤ Support for sending young Singaporeans on local and overseas internships

✤ Support for sending Singaporeans for overseas job postings

GLOBAL-ASIA NODE OF TECHNOLOGY, INNOVATION AND ENTERPRISE

✤ Translate research into deployable solutions to create economic opportunities and improve resilience in food supply and energy

CENTRES OF INNOVATION IN AQUACULTURE AND ENERGY


BICENTENNIAL BONUS

✤ For lower-income Singaporeans • Up to $300 in GST Voucher — Cash (Bicentennial Payment) for 1.4 million Singaporeans

• Workfare Bicentennial Bonus: 10% of total WIS payouts for work done in 2018 in cash, with minimum payout of $100

✤ For income earners • 50% personal income tax rebate, capped at $200, for Year of Assessment 2019

✤ For parents with school-going children • $150 top-up to Edusave accounts for all students at primary and secondary levels

• Up to $500 top-up to Post-Secondary Education Accounts for Singaporeans aged 17 to 20 (who do not already receive Edusave top-up)

✤ For older Singaporeans • $300 to $1,000 in CPF top-ups to eligible1 Singaporeans with lower CPF balances

Combined CPF Ordinary and Special Account2 or Retirement Account3 Balances as at 31 Dec 2018

Age in 2019 Up to $30,000 Above $30,000 but less than $60,000

50 to 54 $500 $300

55 to 64 $1,000 $6001 Eligibility Criteria

• Assessable Income for Year of Assessment 2018 not more than $28,000 • Annual Value of home as at 31 Dec 2018 not more than $21,000 • Do not own more than one property.

2 For CPF members aged 50 to 55 in 2019. 3 For CPF members aged 56 to 64 in 2019.

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COMMEMORATING OUR BICENTENNIAL

BICENTENNIAL COMMUNITY FUND

✤ $200 million fund to provide dollar-for-dollar matching for donations made to Institutions of a Public Character (IPCs) from 1 April 2019 until 31 March 2020, with a cap


A CARING AND INCLUSIVE SOCIETYTo support Singaporeans throughout different stages of life — access to opportunities, greater

healthcare assurance, with more help for the less advantaged

✤ $6.1 billion set aside in Merdeka Generation Fund to cover the lifetime benefits of the Merdeka Generation

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MERDEKA GENERATION PACKAGE (MGP)

PASSION SILVER CARD TOP-UP✤ One-off $100 top-up to support active lifestyles

MEDISAVE TOP-UPS

✤ $200 per year from 2019 to 2023

MEDISHIELD LIFE PREMIUM SUBSIDIES

CARESHIELD LIFE PARTICIPATION INCENTIVE

✤ Additional participation incentive of $1,500 for joining CareShield Life

✤ Together with $2,500 incentive announced earlier, MG seniors will receive a total of $4,000 in participation incentives if they join CareShield Life


A CARING AND INCLUSIVE SOCIETY

Age at Next Birthday (at policy renewal)

Additional Subsidy for MG Seniors

Total Subsidy (in 2019/2020)*

60 to 75 Additional 5% off annual premiums

$31.50 to $390

76 and above Additional 10% off annual premiums

$113 to $918

* Applicable from 1 Nov 2019 to 31 Oct 2020, based on prevailing MediShield Life premiums. The total subsidy includes the existing subsidies that MG seniors in lower-to-middle-income households are also receiving, but excludes transitional subsidies.

To support Singaporeans throughout different stages of life — access to opportunities, greater healthcare assurance, with more help for the less advantaged

SUBSIDIES FOR OUTPATIENT CARE

✤ Special subsidies at CHAS GP and dental clinics, higher than CHAS Blue subsidy rates

✤ Additional 25% off subsidised bills at polyclinics and public Specialist Outpatient Clinics



GREATER HEALTHCARE ASSURANCE

ENHANCED COMMUNITY HEALTH ASSIST SCHEME (CHAS)

✤ Extend CHAS to all Singaporeans with chronic conditions, regardless of income

✤ Extend subsidies for common illnesses to citizens with CHAS Orange card

✤ Increase subsidies for complex chronic conditions

FINANCIAL PROTECTION FOR LONG-TERM CARE

✤ Put $5.1 billion into a new Long-Term Care Support Fund

✤ Help Singaporeans with long-term care, e.g. CareShield Life premium subsidies and participation incentives, ElderFund

FIVE-YEAR MEDISAVE TOP-UPS

✤ $100 MediSave top-up per year (from 2019 to 2023) for citizens born in 1969 or earlier, and do not receive Merdeka or Pioneer Generation benefits

A COMMUNITY OF CARE AND CONTRIBUTION

COMCARE LONG-TERM ASSISTANCE✤ Higher cash assistance rates for those permanently unable to work and have little

family support

STRENGTHENING PHILANTHROPY AND VOLUNTEERISM — SG CARES

✤ Nurture youth multipliers in IHLs to give back to the community ✤ Encourage senior volunteerism for a more purposeful retirement ✤ Strengthen culture of care and contribution within the Public Service through

Public Service Cares

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ENHANCED WORKFARE INCOME SUPPLEMENT (WIS)

✤ Increase wage support for almost 440,000 Singaporeans

SPECIAL EMPLOYMENT CREDIT & ADDITIONAL SPECIAL EMPLOYMENT CREDIT✤ Extend for one year until 31 Dec 2020 to encourage employers to hire older

Singaporean workers

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UPLIFTING EVERY SINGAPOREAN

UPLIFTING PUPILS IN LIFE AND INSPIRING FAMILIES TASKFORCE (UPLIFT)✤ Strengthen after-school care and support for disadvantaged students in

school-based Student Care Centres

SERVICE & CONSERVANCY CHARGES (S&CC) REBATE

✤ 930,000 households to receive 1.5 to 3.5 months of rebates

OTHER SUPPORT FOR HOUSEHOLDS

PUBLIC TRANSPORT FUND

✤ Top up $10 million to help lower-income families with transport expenses


Qualifying Monthly Income Cap

$2,000 currently

$2,300 from Jan 2020

Maximum Annual Payout

$3,600 currently

$4,000 from Jan 2020


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A GLOBAL CITY AND HOME FOR ALL

LINKING OUR CITY TO THE WORLD

To link our city to the world and ensure a sustainable environment for all

ENHANCING CONNECTIVITY✤ Increasing the capacities of our airport and sea port will strengthen our role as a

key node within Asia and to the world

✤ Reduce Special Tax for diesel vehicles

✤ Increase diesel excise duty by $0.10 per litre, to $0.20 per litre

RESTRUCTURING DIESEL TAXES

ENSURING A SUSTAINABLE ENVIRONMENT

Annual Special Tax

$100 lower for diesel cars

$850 lower for diesel taxis

Rebates

Commercial Diesel Vehicles

✤ Road tax rebates of 100%, 75%, and 50% until 2021

Diesel Buses Ferrying Students

✤ Additional cash rebates of $1,800, $900, and $500 until 2021


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A FISCALLY SUSTAINABLE FUTUREA fair, progressive, and pro-growth system of tax and transfers

ENSURE RESILIENCE OF TAX SYSTEM

BUDGET POSITION

✤ FY2018: Overall budget surplus of $2.1 billion (0.4% of GDP)

✤ FY2019: Overall budget deficit of $3.5 billion (0.7% of GDP)

PREPARING FOR THE FUTURE

Value of Goods Granted GST Import Relief

Time spent outside Singapore Current New

Less than 48 hours $150 $100

At least 48 hours $600 $500

✤ Reduce GST import relief for travellers as follows:

✤ Reduce alcohol duty-free concession for travellers from 3 litres to 2 litres


building a strong, united singapore · forward in our journey to build a strong, united singapore....

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