Budget 2022: S$500m to support businesses and jobs as economy recovers

THE Singapore government is setting aside S$500 million to help workers and businesses still struggling as the economy recovers, Finance Minister Lawrence Wong said as he kicked off his Budget speech on Friday (Feb 18).

As part of the Jobs and Business Support Package, a grant will be provided for small and medium-sized enterprises (SMEs) most affected by Covid-19 restrictions over the past year, such as those in the food and beverage, retail, tourism and hospitality sectors.

Under the Small Business Recovery Grant, SMEs in eligible sectors will get a payout of S$1,000 per local employee up to a cap of S$10,000 per firm.

Local sole proprietors and partnerships in eligible sectors, as well as hawkers, and market and coffeeshop stallholders licensed by the Singapore Food Agency, who do not hire local employees, will also receive a S$1,000 payout.

The Jobs Growth Incentive, which supports employers to expand local hiring, will be extended by six months to September 2022.

"This extension will cover those who face greater difficulty finding jobs, such as mature workers who have not been employed for six months or more, persons with disabilities, and ex-offenders," Wong told Parliament.

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Workers who continue to face income-loss due to the pandemic can apply for the Covid-19 Recovery Grant, which has been extended to year-end.

Aside from the support package, targeted assistance for the aviation sector will be extended to "preserve and enhance our status as an international aviation hub", Wong said.

Wong noted that close to S$100 billion has been committed over the past 2 years to support Singaporeans and businesses through the Covid-19 pandemic.

These measures have borne fruit, he said, pointing out that the resident unemployment rate has come down to 3.2 per cent - close to pre-pandemic levels.

Meanwhile, the median income of full-time employed residents grew by around 1 per cent in real terms last year, after a decline of 0.4 per cent in 2020.

Barring fresh disruptions, Singapore's economy is expected to grow 3 to 5 per cent this year.

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READ MORE: Budget 2022: Quick Takes on support packages for jobs, businesses, families