Government measures in key jurisdictions 4th edition - Flipbook - Page 108
Singapore
Nicholas Lauw | nicholas.lauw@rajahtann.com | +65 62320772
Contributor: Rajah & Tann Asia
Loans and
financial
support
Has the
government put in
place any new
bank funding
schemes?
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 USD60 billion of
funding to support stable USD liquidity conditions.
•
The MAS SGD Facility is established to provide low costs 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 on Enterprise Singapore's ("ES") lending
schemes for SMEs: the SME Working Capital Loan scheme and the Temporary Bridging Loan
Programme. It was announced on 20 April 2020 that MAS will offer near-zero interest rate loans
to eligible banks – just 0.1 per cent per annum for a two-year tenor, which will help to lower the
cost of loans for these SME lending schemes and help financial institutions make loans to SME
borrowers more affordable.
•
This has been extended to 31 March 2021.
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.
•
Employment
What financial
support is the
government
providing to
businesses and to
individuals on
employment
issues?
Individuals
•
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 up to SGD800 for 3 months,
subject to certain criteria beingfulfilled. This has been extended to December 2020.
•
The Workfare Special Payment ("WSP") is a cash payout of SGD3,000 provided to all Singapore
employees and self-employed who have received Workfare Income Supplement payments in 2019.
This will be extended to include lower-wage workers aged 35 and above in 2020 who received
Workfare Income Supplement payment in 2020, who did not qualify for WSP previously.
Government measures in key jurisdictions
108