Government measures in key jurisdictions 5th edition - Flipbook - Page 113
Singapore
Nicholas Lauw | nicholas.lauw@rajahtann.com | +65 6232 0772
Contributor: Rajah & Tann Asia
Loans and
financial
support
Has the
government put
in place any new
bank funding
schemes?
The Monetary Authority of Singapore (“MAS”) has established the MAS SGD Facility and
MAS USD Facility to provide SGD and USD to funding markets in Singapore in order to
support their effective functioning.
•
The MAS USD Facility, established on 26 March 2020, seeks to provide up to USD60
billion of funding to support stable USD liquidity conditions.
•
The MAS SGD Facility is established to provide low costs funding to banks and finance
companies on the conditions that such financial institutions commit to pass on the
savings in funding costs to small and medium enterprises ("SME") applying for loans on
Enterprise Singapore's ("ES") lending schemes for SMEs: the SME Working Capital Loan
scheme and the Temporary Bridging Loan Programme. It was announced on 20 April
2020 that MAS will offer near-zero interest rate loans to eligible banks – just 0.1 per cent
per annum for a two-year tenor, which will help to lower the cost of loans for these SME
lending schemes and help financial institutions make loans to SME borrowers more
affordable.
•
This has been extended to 31 March 2021.
The SME Capital Working Loan scheme was enhanced pursuant to the Solidarity Budget
2020 for the purpose of aiding SMEs with their working capital and operational
cashflow needs.
•
The maximum loan quantum was increased from SGD300,000 to SGD1 million.
•
The risk-share percentage is enhanced to 90% for new applications made from 8 April
2020 until 31 March 2021, i.e. lending institutions may make a claim against ES in the
event of defaults by SME borrowers for 90% of the unrecovered amount.
•
SMEs under the enhanced scheme may apply for up to 1 year deferral of principal
repayment to help manage their debt, subject to assessment and approval by the
lending institution.
The Temporary Bridging Loan Programme was established in March 2020 for the purpose
of providing companies with access to up to SGD5 million working capital for
business needs.
•
The Interest rate payable on the loan is capped at 5% per annum.
•
ES will provide 90% risk-share on loans extended under new applications made from 8
April 2020 until 31 March 2021 I.e. lending institutions may make a claim against ES in
the event of defaults by SME borrowers for 90% of the unrecovered amount.
•
Companies may apply for up to 1 year deferral of principal repayment to help
manage their debt, subject to assessment and approval by the lending institution.
Employment
Individuals
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
The Ministry of Social and Family Development launched the Covid-19 Recovery Grant on
18 January 2021, which provides eligible Singapore citizens and permanent residents who
remain significantly affected by job or income loss. Those eligible will receive up to:
•
•
$700 per month for 3 months for employees who have lost their jobs or are placed
on involuntary no-pay leave for at least 3 consecutive months; or
$500 per month for 3 months for employees and self-employed persons who are
facing average income loss of at least 50% for at lease 3 consecutive months.
Government measures in key jurisdictions
113
