Deputy Prime Minister (DPM) and Finance Minister Heng Swee Keat announced the Fortitude Budget in Parliament on Tuesday, May 26.

Totalling S$33 billion, this unprecedented fourth Budget means that S$92.9 billion in financial support will be provided by the government to businesses, workers and households.

Heng said that the theme of the Fortitude Budget was the three "Cs" -- Cash Flow, Costs and Credit, as well as providing sector-specific support and job creation.

1. Enhanced Job Support Scheme

The Job Support Scheme, meant to help employers to continue to employ their workers by providing wage support, received another boost.

Heng announced a one-month extension to the scheme, as well as re-classifying some firms so they received higher levels of support, up to 75 per cent of a worker's wages.

The extra support will cost S$2.9 billion. Heng said that this was needed to help businesses with the cash flow.

2. S$100 utilities credit for households

All households with at least one Singaporean member will receive a one-off Solidarity Utilities Credit of S$100.

This will cover all property types and will be credited in the July or August utilities bill.

This credit, which would help to offset utility costs, is meant to thank Singaporeans for staying home during the Circuit Breaker.

3. More than 40,000 jobs to be created

The government will also take an active hand in creating jobs for those looking for them, as well as providing support to job-seekers.

Heng launched the SGUnited Jobs and Skills Package, which will create 40,000 jobs, 25,000 traineeships and 30,000 in skills training. Said Heng, "This will support the immediate needs of our workers, and raise the skills of our people for future jobs."

Long-term needs in sectors like healthcare and early childhood education will create jobs in the public sector, while agencies will work with businesses to create jobs in fields like computer engineering.

Traineeships will be expanded for first-time job-seekers, while mid-career job-seekers will also benefit from training opportunities.

Job-seekers will receive a training allowance of S$1,200 per month to help them upgrade their skills.

The total cost of this package will be S$2 billion this year.

4. Deferred higher contribution rate for CPF for older workers

During the 2019 National Day Rally, Prime Minister Lee Hsien Loong announced that the CPF contribution rates for older workers would be raised, beginning on Jan. 1, 2021.

This was intended to help older workers to boost their retirement savings, as long as they are employed.

However, this will now be delayed to Jan. 1, 2022.

5. Rental costs offset

The government will continue to support tenants by extending rental waivers for commercial tenants and hawkers by another two months.

Industrial, office and agricultural tenants will receive a rental waiver extension of one month.

The Ministry of Law will also introduce measures to help ensure that these waivers will help to flow through to sub-tenants, many of whom are SMEs.

In addition, the government will provide a cash grant to offset rental costs of SME tenants, to be disbursed through property owners.

The grant will be automatically disbursed from end-July and will cost S$2 billion.

6. Draw on past reserves

These measures necessitate a further draw-down of S$31 billion from Singapore's past reserves, the second time that it was being done.

This will mean that Singapore will withdraw a total of S$52 billion from past reserves in this financial year.

In addition, Heng will set aside S$13 billion in the Contingencies Fund to allow the government to quickly respond from unforeseen developments arising from Covid-19.

Top image from CNA and Lily Banse via Unsplash.