Just yesterday, the Singapore government has unveiled a S$20.5 billion Resilience Package to save jobs, help businesses and enhance competitiveness. The highly expansionary Budget will result in a S$8.7 billion deficit – the country’s largest ever

Finance Minister Tharman Shanmugaratnam in unveiling the budget said the government will dip into the reserves to draw S$4.9 billion to fund two temporary and extraordinary measures – Jobs Credit and a Special Risk-Sharing Initiative.

To sustain jobs for Singaporeans, the government will introduce a Jobs Credit which will encourage businesses to preserve jobs as much as is possible in the downturn. Jobs Credit scheme provides every employer with cash grants amounting to 12 per cent of the first S$2,500 of an employee’s wage, while the Special Risk-Sharing Initiative will help viable companies get funding and keep jobs.

The Budget also sees corporate income tax down to 17 per cent effective from Year of Assessment 2010.

To help households, the government will double the GST Credits that households will receive in 2009. Each household will get an additional payout of GST Credits, on top of the one that they will receive in July. The additional GST Credits will be paid out on 1 March. Additional rebates given for rentals and service and conservancy charges in public housing.

In terms of personal tax, there will be a 20 per cent income tax rebate for individual tax payers, capped at S$2,000, and a 40 per cent property tax rebate for owner-occupied homes.

Personally i felt that more should be done on cost reduction which seems to be the most urgent things to do. Most people are having their bonus freeze and pay cut hence the government should look out on areas that can cut costs. At least the govt decided to double up our GST Credit this year to help those lower income famiies. I believe this is the best time to introduce such package. But overall plans to help Singaporeans keep jobs and viable companies to stay afloat are good. Especially the Job Credit that was introduced for companies to make sure that they don’t cut jobs unnecessary so that more people can still be employed. Very good move! 

In times like that, spending more on infrastructures and companies are the way to go in order for Singapore to weather through this recession.  And for those entrepreneurs out there, it’s also time for us to change our business strategy to make sure we can stay afloat during this period! 

 

 

*Things do not change; we change.  ~Henry David Thoreau*

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