What new measures will Singapore firms receive for cash flow relief?

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Singapore Firms to Receive Enhanced Cash Flow Relief Measures

Singaporean firms will benefit from a comprehensive package of measures aimed at alleviating cash flow challenges, reducing operational costs, and improving access to credit. These initiatives include significant enhancements to property tax rebates, substantial rental waivers for tenants in government-managed properties, a freeze on government fees and charges, and expanded access to financing schemes. Additionally, corporate income tax payments will be deferred to ease immediate financial burdens.
Enhanced Property Tax Rebates for Commercial Properties

Property tax rebates have been significantly increased across various commercial property segments to lower operating expenses. Specifically, the tourism sector, encompassing hotels, serviced apartments, and exhibition centres, will see their property tax rebate rise from 30 per cent to 100 per cent. Premises located at key transport hubs such as Changi Airport, Singapore Cruise Centre, Marina Bay Cruise Centre, and Tanah Merah Ferry Terminal will also receive a 100 per cent rebate, an increase from the previous 15 per cent. A broad category of other commercial properties, including retail shops, food and beverage outlets, sports and recreation facilities, schools, childcare centres, tourist attractions, workers' dormitories, and healthcare facilities, will also benefit from a 100 per cent rebate, up from 15 per cent. Integrated resorts will receive an enhanced rebate of 60 per cent, up from 10 per cent, while non-residential properties like offices and industrial buildings will be granted a 30 per cent rebate, a new provision not included in previous budgets.
Expanded Rental Waivers and Fee Freeze

To directly support tenants, rental waivers have been extended for those occupying government-managed properties. Stallholders in hawker centres managed by the National Environment Agency (NEA) will receive a three-month rental waiver, an increase from the previously announced one month. Eligible tenants in other government properties, including those managed by the Housing and Development Board (HDB) and the National Arts Council (NAC), will be provided with a two-month rental waiver, an improvement from the initial half-month. All other non-residential tenants will receive a half-month rent waiver. Complementing these measures, all government fees and charges will be frozen for a period of one year, from April 1, 2020, to March 31, 2021, further reducing the financial obligations for businesses.
Increased Access to Loans and Credit Facilities

The government is bolstering access to credit by setting aside S$20 billion of loan capital and enhancing existing financing schemes. The loan quantum for trade loans under the Enterprise Financing Scheme (EFS) has been doubled to S$10 million, with the government increasing its risk share from 70 per cent to 80 per cent. Subsidies for loan insurance premiums under the Loan Insurance Scheme will also be raised from 50 per cent to 80 per cent. The temporary loan bridging loan programme, initially targeted at the tourism sector, is now expanded to all enterprises, with the maximum supported loan increased from S$1 million to S$5 million. Interest rates for these loans will remain capped at 5 per cent, with the government bearing 80 per cent of the loan risk. Furthermore, the maximum loan quantum for working capital loans for SMEs under the EFS has been raised from S$600,000 to S$1 million.
Deferment of Corporate Income Tax Payments

A key measure to immediately improve cash flow involves the deferment of corporate income tax payments. Companies will have their tax payments due in April, May, and June automatically deferred to July, August, and September, respectively, without the need for an application. Similarly, self-employed individuals will see their tax payments due in May, June, and July deferred to August, September, and October. This three-month deferment aims to provide businesses and individuals with greater financial flexibility during this challenging period.

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What new measures will Singapore firms receive for cash flow relief?

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