Budget Summary Slides FY2016

• Builds our foundation for

the next 50 years

• Set amidst a challenging

environment

• Measures that build on the

Singapore spirit that we

have inherited

• Partnerships between

people, government, and

businesses

The beginning of a

journey that will

define our future

• From basic education to

helping our people to skill

up at all stages of life

• From general healthcare to

healthcare for an ageing

population

• From basic infrastructure to

a smart nation

• From tackling

unemployment to

providing quality jobs for

a mature workforce

Singapore in the

next 50 years...

• Grow our economy to

increase our resources for

rising needs

• Remain prudent, spend

responsibly, invest in our

future, innovate

• Build on the spirit of

partnership between

Singaporeans

We must continue

to find new ways

to work together

so that everyone

has a better life

1. Address near term concerns

2. Embark on the Industry Transformation

Programme

3. Help Singaporeans to adapt and find new

opportunities

Budget 2016 will build

towards the vision of our

Future Economy

• Help companies to manage economic slowdown

• Encourage companies to seek opportunities to grow

Addressing Near Term Concerns

Transition Support

Package and

Infrastructure

Projects

Continued support

for firms

Enhancement of

Revitalisation of Shops

Scheme

Better support heartland

enterprises

Extension of

Special

Employment Credit

Help older workers

stay employed

SME Working

Capital Loan

Help SMEs with

cashflow and

expansion

Enhanced Corporate

Income Tax Rebate

Raised from 30% to 50%

tax payable with a cap of

$20,000 each year for

YAs 2016 and 2017

Changes to Foreign

Worker Levy

Tighten inflow of

foreign workers

• In March 2016, firms receive a total of $1.9 billion

under the Wage Credit Scheme

• Public sector demand for construction projects

expected to increase significantly in 2016 –

$2.5 billion of public spending expected in small

construction projects in 2016, which will benefit

smaller construction firms


Continued support from Transition Support

Package and Infrastructure Projects


• Provides employers with a wage offset for older

workers earning up to $4,000/mth

• Extended for 3 years - 2017 to 2019

• $1.1bn top-up to the SEC Fund

Extension of Special Employment Credit (SEC)

Age of Worker Monthly Wage Offset

55 to 59 Up to 3%

60 to 64 Up to 5%

65 & above Up to 8%

(+3% until re-employment age raised)


• In view of challenging business conditions and reduction

in number of Work Permit holders in those sectors

• Defer levy increase for Work Permit holders in Marine and

Process sectors for 1 year

• As announced in Budget 2015:

• Manufacturing sector Work Permit levies remain unchanged

• Services and Construction Work Permit holders, and S Pass

holders in all sectors will see levy increases

Changes to Foreign Worker Levy

• Better support promotional activities and

upgrading projects in HDB town centres and

neighbourhood centres

• SPRING to work with the Federation of Merchants’

Association Singapore (FMAS) and local merchant

associations to strengthen their capabilities to

support heartland businesses

• $15 million/year to support this


Enhancement of Revitalisation of Shops

Scheme


• Support SMEs that may have cash flow concerns or

wish to expand

• Loan cap of up to $300,000 per SME

• Government will co-share 50% of the default risks

of loans with Private Financial Institutions

• 3-year scheme

SME Working Capital Loan

• Innovate and adopt

new technology

• Encourage scale

Help companies to create value and grow

Focus on

Targeted Support Tapering of PIC

Automation

Support Package Support companies

for scaling up of

automation

Business Grants

Portal One-stop resource

to apply for govt

grants

National Trade

Platform One-stop trade

information system

Jurong Innovation

District Bring together

learning, research,

innovation and

production

National

Robotics

Programme Increase efficiency,

create high-value

jobs

Financing and

Tax Incentives Support

companies to

scale-up

Support for

Internationalization Help companies to

access overseas

markets

• Help with

internationalization

• Deepen partnerships

Embark on Industry Transformation Programme


• Cash payout rate for PIC will be 40% for qualifying

expenditures incurred on/after 1 Aug 2016

• Cap of $100,000 of qualifying expenditure per YA

remains

• PIC will expire after YA2018, as we focus on more

targeted support

Focusing on Targeted Support


• Fund up to 50% of project cost, grant cap of $1

million

• 100% Investment Allowance for automation

equipment

• Improve SMEs’ access to loans for approved

projects

• Govt will enhance risk-share with Private Financial Institutions from

50% to 70%

• IE Singapore will work with SPRING where relevant to

help these businesses to access overseas markets.

Automation Support Package


How it works:

• A company embarks on a $2m project to scale up its

automated manufacturing lines. It can receive up to

$1 million in grants, and more than $0.5m in tax

savings under the Investment Allowance and normal

capital allowance for plant and machinery

Automation Support Package


• One-stop portal for companies to apply for

government grants

• Organized to meet business needs of capability

building, training and international expansion

• Greater convenience – portal will pre-populate details

that are available in the ACRA database

• To be launched end of 2016

Business Grants Portal


• One-stop trade information management system

• Enable electronic data sharing between businesses

and government

• Open innovation platform – companies can

develop value-added services and apps

• $600 million worth of man-hour savings each year

expected

National Trade Platform (NTP)


• New major development to create a next-generation innovation

district

• Linking academia, research, innovation and production

• First phase of JID to be completed by around 2022

Jurong Innovation District (JID)

Watch a

video about

the JID here

http://we.tl/XjGNZlRxc7

Help Singaporeans to Adapt and find New Opportunities

Overview

“Adapt and Grow”

Initiative Help our people

adapt to changing job

demands and grow

their skills

TechSkills

Accelerator Strengthen training

and job-matching in

ICT sector

Investing in

SkillsFuture Help Singaporeans

take charge of their

learning and

maximise their

potential throughout

life


• Help our people to adapt to changing job demands

and grow their skills

• Wage support for workers who facing difficulty

finding jobs

• Step up the Professional Conversion Programme

to include programmes in design and ICT

“Adapt and Grow” Initiative


• New skills development and job placement hub for

the ICT sector

• Identify skills in demand and work with specialized

training providers

• Develop industry-recognized skills standards and

certification

• Work with anchor employers to hire and pay based

on certified skills proficiency rather than academic

qualifications

TechSkills Accelerator

In 2016:

• Plans to launch

about 18,000 HDB

flats e.g. new towns such as

Bidadari

Helping Singaporeans

own their homes

Housing Policies in the

last 5 years…

• Launched 100,000 flats

• Raised household income ceiling

• BTO flats, Exec Condos

• Extended Special CPF Housing

Grant

• raised income ceiling, doubled the

grant

• Step Up CPF Housing Grant

• help 2nd-time families upgrade

from 2- to 3-Room flats in non-

mature estates

• Proximity Housing Grant

• for buying a resale flat near

parents or married children

In 2016:

• Continued universal

coverage under MSHL;

premiums kept affordable.

• Subsidised healthcare

under CHAS will continue

• Generous healthcare

subsidies under PGP will

continue

• Further expansion and

building of healthcare

facilities

Ensuring affordable,

accessible and high-

quality healthcare for

Singaporeans

Healthcare Policies in

the last 5 years...

• Launched MediShield Life

(MSHL)

• Expanded CHAS

• cover more Singaporeans

• provide higher subsidies for visits

to specialist outpatient clinics

• Launched Pioneer Generation

Package (PGP)

• provide healthcare benefits to

pioneers for life

• Increased capacity of healthcare

facilities e.g. acute & community

hospitals, nursing homes and

polyclinics

In 2016:

• Further enhancements

to Workfare

• Silver Support to

supplement the incomes

of elderly Singaporeans

Empowering all to age

with vitality and dignity

Strengthening

retirement adequacy

in last 5 years….

• Help Singaporeans save

more while working

• Enhanced Workfare

• Increased CPF Salary

Ceiling and SRS

Contribution Cap

• Raising CPF contributions

for older workers

• Supporting re-employment

• Enhancing the CPF system

• Additional Extra Interest

• More flexibility and choices

Caring for Our Seniors

• For bottom 20% of elderly aged 65 and above, and

smaller degree of support covering up to bottom

30%

• Seniors who had lower incomes over their lifetimes

and have less retirement support

• Application not required – automatic enrolment if

you qualify; Paid out quarterly

• First payment in July 2016 will consist of 2 quarters’

worth of payouts

Silver Support

• Who will get it?


Lifetime Wages Housing Type Household

Support

Not more than $70,000 in total

CPF contributions at age 55;

self-employed persons should

also have an average annual

net trade income of not more

than $22,800 between the ages

of 45 and 54

1 to 5-Room

HDB flats*

Household

income per

person is not

more than

$1,100 per

month

*Seniors will not qualify if they, or their spouses, or both own an HDB flat which is 5-Room or larger,

a private property, or multiple properties.

• Eligible seniors will receive between $300 to $750

every quarter, depending on their flat type*


Residence

Type

Payout per

quarter

Payout per

year

1-2 Room HDB $750 $3,000

3-Room HDB $600 $2,400

4-Room HDB $450 $1,800

5-Room HDB* $300 $1,200

Note: Seniors on the ComCare Long Term Assistance (LTA) Scheme will automatically

receive a Silver Support Payout of $300 per quarter, so long as they meet the age criteria.

*Live in and do not own a 5-Room HDB flat.


Lifetime Wages Put less than $70,000 into their CPF

accounts each by age 55

Residence type/

property

ownership

3-room HDB flat

Household

income None

Silver Support

payouts

$600 each every 3 months

$4,800 per year

Mr X Age: 67

Retired

Former Hawker

Assistant

Mrs X Age: 66

Homemaker

Left workforce 20 years

ago to take care of ill

and elderly mother

The couple has no children


• To better coordinate amongst community partners to

reach out to seniors and enable them to age

successfully

• Networks will comprise local stakeholders with small

full-time teams to coordinate support for seniors

• Empower seniors to take preventive health measures

• Connect those who are healthy and mobile to

activities

• Provide more targeted and coordinated health and

social support for seniors who need more help

Community Networks for Seniors (Pilot)

Caring for Families & Households

Families with children…

Currently you enjoy:

• Child Development Account

Co-Savings

• Enhanced Baby Bonus Cash

Gift of $8,000 to $10,000

• $4000 Medisave Grant for

Newborns

• 4 months maternity leave

• 1 week legislated paternity

leave

• Up to 6 days of childcare

leave/year

• Parenthood Priority Scheme,

Parenthood Provisional Housing

Scheme (for HDB flats)

• MediShield Life coverage from

birth

• Parenthood Tax Rebate

• Working Mother’s Child Relief

• Subsidies for Centre-based Infant

care and Childcare

• Foreign Domestic Worker levy

concession

• Medisave maternity package, etc.


In addition, you will now get:

• Child Development Account First Step Grant of $3,000

• Double the Medisave withdrawal limit from $450 to $900

for pre-delivery medical expenses for mothers who have

delivered on or after 24 March 2016

Families with children…


• For all eligible babies born on or after 24 March

2016

• Previous: Parents must first save into CDA to

receive $1:$1 co-matching contributions from

Government

• New: First $3,000 of Government contributions

provided without parents having to save first

• Parents can continue to save into CDA to receive

$1:$1 co-matching, up to remaining Government

contributions caps

Child Development Account First Step Grant


Child Development Account First Step Grant

$6,000 $6,000

Previously

$3,000

$6,000

Parent’s

Savings

Maximum

Government

Contribution

Parent’s

Savings

Maximum

Government

Contribution

Enhanced

First

Step

$3,000

$3,000

For 1st & 2nd Child Each

• Wait till 1 July 2016 before

starting to save into CDA


Birth Order CDA First

Step Grant

Government’s

co-savings for

each dollar

that parents

save

Total

Government

contribution

(no change)

1st or 2nd $3,000 $3,000 $6,000

3rd or 4th $3,000 $9,000 $12,000

5th or higher $3,000 $15,000 $18,000


• For second-timer families with young children,

who sold their first flat and are now living in public

rental housing

• Grant of up to $35,000, to help them own a 2-Room

flat with shorter lease

• Families need to demonstrate effort e.g. by staying

employed and ensuring their children attend school

• Work with social agencies to support these families

Fresh Start Housing Scheme


One-off GST Voucher – Cash Special Payment on top of regular GSTV- Cash, Medisave and U-Save

Annual Value of Home as at 31 Dec 2015

Up to $13,000 $13,001 to $21,000

$300

+

$200 GSTV

– Cash Special

Payment

$150

+

$100 GSTV

– Cash Special

Payment

Total in 2016:

$500 Total in 2016:

$250

To Qualify

Assessable Income

for YA 2015

≤ $26,000

For individuals

≥ 21 years

Note: Individuals who own more than one property will not qualify for the GST Voucher Scheme


• Total personal income tax reliefs capped at $80,000

per YA

• 99% of tax-resident individuals will not be affected

• With effect from YA 2018

• Personal income tax obligation remains low

• Will make our tax system more progressive

Personal Income Tax Relief Cap


• 1 to 3 months of Service and Conservancy Charges

Rebate

• Benefits about 840,000 households

Service and Conservancy Charges Rebate

HDB Flat Type S&CC Rebate (No. of

months offset)

1- and 2-Room HDB 3

3- and 4-Room HDB 2

5-Room HDB 1.5

Executive / Multi-Generation 1


Family A lives in a 4-room flat

Husband Age: 35

Income:

$2,800/mth

Wife Expecting 2nd Child

Age: 32

Income:

$1,800/mth

Son the firstborn

Age: 4

Family A is eligible for the following schemes in 2016:

Scheme Benefits Total Cash Total to CPF

Healthcare

Subsidies

Healthcare subsidies for Medishield Life

premiums and Community Health

Assist Scheme (CHAS)

Varies Varies

Marriage &

Parenthood

Package For newborn: Baby Bonus Cash Gift,

CDA First Step grant, Medisave Grant

for Newborns etc

For 4 yo child: Child Care subsidies etc

$8,000

(Baby Bonus

Cash Gift)

+ $3,000

(CDA)

+ $4,800

(Childcare)

$4,000

GST Voucher

(GSTV) Scheme

$300 GSTV – Cash (wife)

$200 one-off GSTV – Cash Special

Payment (wife)

$220 GSTV – U-Save rebate

(Household)

$500

+$220

utilities rebate

Service and

Conservancy

Charges (S&CC)

rebate

2 months of S&CC rebate 2 mths

S&CC rebate

TOTAL >$16,520 >$4,000


Family B lives in a 3-room flat

Husband Age: 66

Income:

$1,300/mth

Wife Age: 60

Income:

$700/mth

Family B is eligible for the following schemes in 2016:


Healthcare

subsidies


premiums and Community Health Assist

Scheme (CHAS)

Varies Varies

Silver Support

Scheme

$1,200 in July 2016

$600 every subsequent quarter $2,400

Extra Interest

(CPF)

Additional 1% of interest on first $30,000 of CPF

balances (up to $300 each) $600

5-Year Medisave

Top-Up Scheme

$200 each, Medisave top-up, every year until

2018 $400

Workfare

Income

Supplement

$3,150 (husband) per year from 2017 ($525

increase)

$2,500 (wife) per year from 2017 ($48 increase)

$2,037

$2,260 from

2017

$3,040

$3,390 from

2017

GST Voucher

(GSTV) Scheme

$300 GSTV – Cash (each);

$200 one-off GSTV – Cash Special Payment

(each); $250 GSTV – Medisave (husband);

$240 GSTV – U-Save

$1,000

+$240

utilities rebate

$250

Service and

Conservancy

Charges (S&CC)

rebate

2 months of S&CC rebate 2 mths S&CC

rebate

TOTAL >$5,677 >$4,290


Family C lives in a 5-room flat

Wife Age: 46

Income:

$2,500/mth

Grandma Age: 75

Retired and a

Pioneer

Daughter Age: 20

University

student

Son Age: 17

Polytechnic

student

Husband Age: 48

Income:

$4,000/mth

Family C is eligible for the following schemes in 2016:


Healthcare

subsidies


premiums and Community Health Assist

Scheme (CHAS)

Varies Varies

Pioneer

Generation

Package

(Grandma)

$400 in Annual Medisave top-up

Subsidies of 40 – 60% for MediShield Life

Special subsidies for Outpatient Care

$400

Bursaries for

Institutes of

Higher Learning

$2,600 MOE bursary (Daughter)

$1,500 MOE bursary (Son)

Eligible for Tuition Fee Loans and Study Loans

(interest-free for duration of studies)

$4,100

GST Voucher

(GSTV) Scheme

$300 GSTV – Cash (Grandmother)

$200 one-off GSTV – Cash Special Payment

$350 GSTV – Medisave (Grandmother)

$200 GSTV – U-Save rebate (Household)

$500

+$200 utilities

rebate

$350

Service and

Conservancy

Charges (S&CC)

rebate

1.5 months of S&CC rebate 1.5 mths

S&CC rebate

TOTAL >$4,800 >$750

From January 2017, WIS Scheme will be enhanced

Caring for Our Low-Wage Workers & Persons with Disabilities

Enhancements to Workfare Income

Supplement (WIS) Scheme

Enhanced WIS Scheme

• For workers earning up to

$2,000/month

• WIS will be paid monthly

• WIS will be paid for every

month worked

• Workers earning $1,000 to

$1,600 get $100/yr to $500/yr

increase

Current WIS Scheme

• For workers earning up to

$1,900/month

• WIS is paid quarterly

• To qualify, one has to work 2

out of 3 consecutive months

• Employers who hire PWDs who earn up

to $4,000/month will continue to receive

the Special Employment Credit.

• PWDs below 35 years old who earn low wages

eligible for the Workfare Training Scheme from

1 Jan 2017

• Public Service will expand job opportunities for

persons with disabilities


Extension of Workfare Training Scheme to

more persons with disabilities (PWD)

• Increase in basic monthly cash allowance

• This is on top of free or highly subsidized social

services, free medical treatment in polyclinics

and public hospitals

• LTA recipients will also receive Silver Support if

they meet age criterion


Increase in ComCare Long-Term

Assistance (LTA)

Building a Caring Society

• Businesses who organise their employees to

volunteer and provide services to IPCs, including

secondments, will receive a 250% tax deduction on

wages and incidental costs

• Subject to IPCs’ agreement, with a yearly cap of

$250,000 per business and $50,000 per IPC on the

qualifying costs

• Pilot scheme from 1 July 2016 to end of 2018

Business and IPC Partnership Scheme (BIPS)


• Government will match dollar-for-dollar all

additional donations through SHARE, over and

above the FY2015 levels

• FY2016 to FY2018, starting 1 April 2016

• Part of the matching funds will be made available

for businesses to support approved corporate

social responsibility efforts

Supporting Community Chest Giving


• A new fund for citizens’ ground-up

initiatives that build national

identity or meet social and

community needs

• Up to $25 million

• Set up by second half of 2016

Our Singapore Fund

Budget Summary Slides FY2016

Government & Nonprofit

Transcript of Budget Summary Slides FY2016