Coronavirus - Government measures in key jurisdictions - Flipbook - Page 68
Singapore
Nicholas Lauw | nicholas.lauw@rajahtann.com | +65 6232 0772
Contributor: Rajah & Tann Asia
1
Loans and
financial
support
•
The Monetary Authority of Singapore (“MAS”) has established the MAS SGD Facility
and MAS USD Facility to provide SGD and USD to funding markets in Singapore in
order to support their effective functioning.
– The MAS USD Facility, established on 26 March 2020, seeks to provide up to
USSGD60 billion of funding to support stable USD liquidity conditions.
Has the
government put
in place any new
bank funding
schemes?
– The MAS SGD Facility is established to provide low cost funding to banks and
finance companies on the conditions that such financial institutions commit to pass
on the savings in funding costs to small and medium enterprises (“SME”) applying
for loans under Enterprise Singapore’s (“ES”) lending schemes for SMEs: the SME
Working Capital Loan scheme and the Temporary Bridging Loan Programme.
•
The SME Capital Working Loan scheme was enhanced pursuant to the Solidarity
Budget 2020 for the purpose of aiding SMEs with their working capital and
operational cashflow needs.
– The maximum loan quantum was increased from SGD300,000 to SGD1 million.
– The risk-share percentage is enhanced to 90% for new applications made from 8
April 2020 until 31 March 2021, i.e. lending institutions may make a claim against ES in
the event of defaults by SME borrowers for 90% of the unrecovered amount.
– SMEs under the enhanced scheme may apply for up to 1 year deferral of principal
repayment to help manage their debt, subject to assessment and approval by the
lending institution.
•
The Temporary Bridging Loan Programme was established in March 2020 for the
purpose of providing companies with access to up to SGD5 million working capital for
business needs.
– The Interest rate payable on the loan is capped at 5% per annum.
– ES will provide 90% risk-share on loans extended under new applications made
from 8 April 2020 until 31 March 2021 i.e. lending institutions may make a claim against
ES in the event of defaults by SME borrowers for 90% of the unrecovered amount.
– Companies may apply for up to 1 year deferral of principal repayment to help
manage their debt, subject to assessment and approval by the lending institution.
2
68
Employment
Individuals
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
•
The Temporary Relief Fund is a one-off SGD500 cash assistance to support Singapore
citizens and permanent residents who are retrenched or suffered at least 30% loss of
personal income due to COVID-19, subject to certain criteria being fulfilled.
•
The COVID-19 Support Grant provides eligible Singapore citizens and permanent
residents who have lost their jobs due to COVID-19 with a monthly cash grant of
SGD800 for 3 months, subject to certain criteria being fulfilled.
•
The Workfare Special Payment is a cash payout of SGD3,000 provided to all
Singapore employees and self-employed who have received Workfare Income
Supplement payments in 2019. The cashpayout will be paid over two equal payments
of SGD1,500 each in July and October 2020
•
The Self-Employed Person Income Relief Scheme provides quarterly cash payouts of
SGD3,000 in May, July and October 2020 to eligible self-employed persons (“SEP”), if
the SEP meets certain criteria.
Government measures in key jurisdictions
3
