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

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

Programme
• 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

Programme
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

Embark on Industry
Transformation Programme
• 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

Embark on Industry
• 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)

Embark on Industry
• 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

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

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Budget Summary Slides FY2016