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Everything You Need to Look Out For This Budget 2021

2021-02-16 , 9:55 am

By now, you’ve probably heard about the K-Shape recovery that Singapore is looking at for 2021.

For the full reveal, you can read the article here, but basically, it means that some sectors will grow while others continue meandering downwards.

With that said, the God of Prosperity of Singapore, DPM Heng Swee Keat (also known as the man with a plan) assures that more will be done to help this year.

Innovate, Grow & Adapt

On 5 Feb 2021, DPM Heng revealed that the focus of Budget 2021 is to help businesses and individuals adapt, innovate and grow.

In other words, if Budget 2020 was about survival, Budget 2021 will be about survival and preparing for the future.

While continuing to support hard-hit businesses and individuals, the government will also be preparing them for the post-Covid-19 world.

“There is no turning back the clock. While we deal with the present, we must also prepare our workers and businesses for a different world post-Covid.”

By the way, the title for the speech this year is Emerging Stronger Together.

You can read DPM Heng’s Facebook post on why and how he came up with that catchy title below:

With that said, here’s what you need to look out for this afternoon, 16 Feb 2021, when the Budget for this year is revealed.

More Targeted Support

For those who are hoping for more angbaos from the government this year, you’ll be glad to know that might be happening… but only if you’re in specific sectors.

According to Mr Liang Eng Hwa, chairman of the Government Parliamentary Committee for Finance, Trade and Industry, Budget 2021 is likely to be less generous compared to last year.

However, help will still be rendered to sectors which are affected most severely by the Covid-19 pandemic.

In other words, if you fall on the downward slope along the K-shape recovery, you’ll probably receive help from the government.

Jobs Support Scheme

For those who are unaware, the Jobs Support Scheme (JSS), in which the government offsets employees’ salaries, will end next month.

Experts are of the opinion that the JSS is broad-based and costly, which makes the scheme likely unsuitable for the uneven recovery Singapore is expecting this year.

They suggest strengthening incentives for firms to hire and retrain Singaporeans instead.

Other observers, who noted that the unemployment and retrenchment situation might worsen again, suggest an extension of the Jobs Growth Incentive (JGI).

Property Cooling Measures

Imagine what would happen in Singapore if the property bubble bursts.

The answer? Absolute chaos, given how most of us are asset-rich (homes & CPF), not cash-rich.

Despite Covid-19, property prices in Singapore have been on the rise, with several HDB flats selling for over S$1.2 million.

The price of HDB resale flats spiked by 5 per cent while private apartments and non-landed condominiums increased by 2.5 per cent.

The government has been keeping a close eye on the property market.

Observers say that possible cooling measures include:

limiting the loans for investors
additional stamp duties for investors and foreigners
tighter mortgage terms
bigger minimum home sizes

A Stronger Social Safety Net

The PAP and Workers’ Party might disagree on many things.

But one thing they both agree on is the need to provide a stronger social safety net for people in Singapore.

A social safety net basically means schemes put into place to help protect the vulnerable and the needy.

Last year has proven that there’s not enough time to wait for the Progressive Wage Model (PWM) to roll out to other sectors, according to SMU law don Eugene Tan.

A spokesperson for the Ministry of Social and Family (MSF) revealed that the applications for ComCare assistance jumped by 26 per cent.

Makes you wonder what will be done this year, doesn’t it?

Touching The Reserves

Last year saw Singapore drawing a lot from our reserves.

Will it be the same this year?

Apparently not, according to experts.

It was suggested that Singapore could explore borrowing from other places to finance its expenditure, given the low interest-rate environment.

Alternatively, as my colleague suggested, the GST Hike, which was slated for between 2021 and 2025, could happen sooner than later.

The Green Plan

You’ve probably heard all about how Singapore will be pursuing the sustainability angle.

From schools going carbon neutral to working in environmental-friendly buildings, more about the sustainability agenda will be covered during the Budget process.

GST Voucher

Last, but not least, the amount of GST vouchers and rebates you’ll get this year.

After all, that’s why we pay attention to the Budget speech every year, no?

Last year, eligible households received double the amount of GST U-Save Rebates and up to $300 cash.

The full details of Budget 2021 will be revealed by DPM Heng this afternoon.

By the way, for those curious about the entire Budget process, you can check it out here.

You can catch the Budget 2021 speech at 3pm today:

The Ministry of Finance (Singapore) Facebook page
8视界新闻新加坡 8world News Facebook pages
Budget website (www.singaporebudget.gov.sg)
Live on CNA and Channel 5

Feature Image: Igor Plotnikov / Shutterstock.com