
“If there is something more exciting than the live telecast of the World Cup, it will be Budget 2019 simply because it affects our wallet directly whether you placed a bet or not.” – Overheard at a Coffeeshop
TL;DR: The Budget 2019. How it affects YOU?
This year, the government expects an overall budget deficit of $3.5billion. There will, however, be no drawing on past reserves.
The YES:
- More CHAS subsidies and covers chronic conditions
- 1.4 million lower-income Singaporeans to receive up to $300 GST Vouchers
- $150 top-up to Edusave accounts, $500 top-up to Post-Secondary Education Accounts (Age 17-20)
- 50% Personal Income tax rebates (capped at $200)
- CPF top-ups of $1,000 for eligible Singaporeans (age 50-64)
- An annual special tax on Diesel Cars and Taxis reduced by $100 and $850 respectively
The NOs:
- Increase excise duty for diesel from $0.10 per litre to $0.20 per litre
- Reduced GST Import Relief from $600 to $500 (more than 48 hours overseas) and $150 to $100 (less than 48 hours)
Further Reading: Summary of Budget 2019
- Challenges Singapore face
- Singapore Economic Growth in the year 2018
- How Budget 2019 affects companies
- How Budget 2019 affects Singaporeans?
This year marks 200 Years since Raffles Landed in Singapore. This year, we reflect on history and see how we can chart a better future for Singaporeans.
In the global landscape, there is a decrease in support for globalisation. ASEAN however, is creating new opportunities for Singapore and the future is filled with potential.
The objective of SGBudget2019 will be to build a strong united Singapore.
Challenges Singapore face
Some of the issues Singapore faces are:
- Ageing Population
- Social Mobility
- Inequality
- Economic transformation
- Climate change
30% of Government expenditure: Support defence, security and diplomacy efforts
“This one cannot play play!”
- In order for Singapore to be a safe and secure home for all, deterrence and diplomacy are important to us as a nation.
- Singapore will find solutions to terrorism and cyber threats with the help of science and technology.
- Setting up of Home Team Science and Technology Agency to help deal with cyber threats.
Singapore Economy as a whole: 3.2% Growth in the year 2018 (HUAT AH!)
- Real median income of Singaporeans up by 3.6% over the past 5 years.
- Moderate global growth to be expected.
Strengthening Economic Competitiveness
“3 key trusts for Budget 2019 – Deep enterprise capabilities, deep worker capabilities, deep partnerships”
$100million to make Singapore companies more HUAT?
- Support in 3 areas to enable firms to grow: Customised assistance, better financing options and technological adoption.
- Innovation Agents Scheme: Allow firms to tap on the expertise of experienced professionals
- $100 million will be set aside to establish the SME Co-investment Fund III, to help SMEs scale up.
- SME Working Capital Loan Scheme is extended to 2 more years.
- SMEs encouraged to go digital at a better cost, with Go Digital programme expanded to more sectors.
Deepen capabilities of workers!
” Power to the People!”
- Allow Singaporeans to have good jobs and opportunities by investing in people across all ages.
- Upskilling, reskilling, increase training and job redesigning to allow Singaporeans to work better.
- New growth area to focus: Blockchain, embedded software, prefabrication (Blockchain doesn’t mean Bitcoin hoh!)
- Career Support Programme to extend 2 more years and local firms to revamp work processes, redesign jobs and reskill our workers.
- Foreign worker growth must complement our local workers, while local workers grow!
Sector | Current | Changes |
---|---|---|
DRC | ||
Manufacturing | 60% | No change |
Services | 40% | 1 Jan 2020: 38% 1 Jan 2021: 35% |
Construction | 87.5% | No Change |
Process | 87.5% | No Change |
Marine Shipyard | 77.8% | No Change |
S Pass sub-DRC | ||
Services | 15% | 1 Jan 2020: 13% 1 Jan 2021: 10% |
Others | 20% | No change |
- Good News for business owners of Marine Shipyard and Process Sectors: Increased Foreign Worker Levy pushed back for another year.
Deep partnerships
- On business to business and government to government level.
- Singapore to aim to be a Global-Asia Node of Technology, Innovation and Enterprise (NTU will launch Centre of Innovation in Energy, Temasek Polytechnic will launch Centre of Innovation in Aquaculture.)
- Global Ready Talent Programme for students to be better ready through internships
- $4.6billion for new economic capability-building measures to support Singaporean workers over the next 3 years.
Social Focus of SGBudget2019
- Uplifting Singaporeans
- Providing Greater Healthcare Assurance
- Foster Community of care and contribution
Uplifting Singaporeans:
- Bottom 20% of workers: WIS Scheme will provide better support
Maximum Annual Workfare Income Supplement (WIS) Payout from 1 Jan 2020 AGE Employees
(Maximum annual WIS payout)Self-employed
(Maximum annual WIS Payout)35-44 $1,700 $1,113 45-54 $2,500 $1,667 55-59 $3,300 $2,200 60 and above $4,000 $2,667
CHAS subsidies for GP clinics changes
- More subsidies for lower to middle-income Singaporeans (Orange cardholders) receives subsidies for common illnesses too!
- CHAS will cover chronic conditions too! Regardless of income
- Increased subsidies for complex chronic conditions
$5.1billion into Long-Term Care Support Fund
- Fund CareShiueld Life subsidies
- Fund Long-term care support. Eg. Elderfund
$6.1billion into Merdeka Generation Package
“500,000 Singaporeans to benefit from this!”
- $100 top-up to Passion Silver Cards where they can use for activities at Community centres
- Medisave Top-up: $200 per year for 5 years!
- Additional MediShield Life Premium subsidies for Life (Starting from 5% of their MediShield Life Premium)
- $1,500 incentive when they joinCareShield Life
- Increase subsidies for outpatient
Medisave top-ups of $100 for the next 5 years (If you are above 50)
- Singaporeans aged 50 and above in 2019, not eligible for Merdeka Generation or Pioneer Generation benefits
- To be eligible, one must be Singapore citizen, born in or before 1969
Lower-income families and pensioners benefits
- Allowance and monthly pension to increase for government pensioners who draw lower pensions.
- Increase by $20 per month each to $320 and $1,250 respectively
Bicentennial Bonus and Community Fund
“GST VOUCHERS! WOOHOO!”
- $200million set aside for Bicentennial Community fund to provide dollar for dollar matching donations to IPCs
- $1.1billion set aside as bonuses to Singaporeans
- 1.4 million lower-income Singaporeans to receive up to $300 GST Vouchers
- $150 top-up to Edusave accounts
- $500 top up to Post-Secondary Education Accounts (Age 17-20)
- 50% Personal Income tax rebates (capped at $200)
- CPF top-ups of $1,000 for eligible Singaporeans (age 50-64)
- Service and Conservancy Charges (S&CC) rebate:
HDB Flat type April 2019 July 2019 October 2019 January 2020 Total for FY2019 1 and 2 rooms 1 1 1 0.5 3.5 3 and 4 rooms 1 0.5 0.5 0.5 2.5 5 rooms 0.5 0.5 0.5 0.5 2 Executive and Multi-generation 0.5 0.5 0.5 - 1.5
- $10 million top-ups to Public Transport Fund
Singapore Battling Climate Changes
- Carbon tax to be implemented
- Zero waste Masterplan introduced in the second half of the year
- The Govt will raise the excise duty for diesel by $0.10 per litre, to $0.20 per litre.
- Special tax on diesel cars and taxis to reduced by $100 and $850 respectively
Here comes the TAX!
Travellers take note:
-
Time spent overseas Value of Goods Granted GST Relief More than 48 hours $500
(Down from $600)Less than 48 hours $100
(Down from $150) - Duty-free alcohol allowance to be reduced to 2 litres for travellers returning to Singapore.
Quick Recap: How did the Singapore Budget last year impact us?
Read more: Singapore Budget 2018: Increase in GST by 2% in the period from the year 2021 to 2025
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