Singapore’s government announced a number of measures as part of its Budget 2021 including a SGD 11 billion (USD 8.3 billion) Covid-19 Resilience Package. The Budget will also set aside SGD 24 billion (USD 18.0 billion) over the next three years to enable Singaporean firms and workers to emerge stronger from the crisis.

The Budget’s Covid-19 Resilience Package has a three-pronged approach with the first prong entailing the safeguarding of the health of Singaporeans. This includes vaccination and safe re-opening measures.

The second part of the package focuses on continuing support for workers and businesses where needed. Singapore’s Jobs Support Scheme, first introduced when the pandemic hit last year, will be extended and the wages support level will also be increased.

For firms in Tier 1 sectors, which includes the aviation, aerospace, and tourism sectors, the Jobs Support Scheme will be extended by six months.

The Budget also extends specific schemes within the SGUnited Jobs and Skills Package, including the Jobs Growth Incentive and specific traineeship, attachment and training opportunities.

The third prong of the Covid-19 Resilience Package is to provide more targeted support for the worst-hit sectors, which continue to be adversely affected in 2021. The includes support for the hard-hit aviation sector, as well as the land transport sector (which includes taxi and private hire car drivers) as well as arts and culture, and sports sectors.

Finance Minister Heng Swee Keat, who announced the Budget, said he will allocate SGD 24 billion (USD 18.0 billion) to enable Singapore’s firms and workers to emerge stronger.

“The efforts will span several years, but it is crucial that we start today,” Keat said.

“The employment landscape is undergoing fundamental changes, and Covid-19 will accelerate these changes,” Keat continued. “A digital, innovation-driven economy means that businesses will need highly-skilled workers and deep talent. Our people will need to have both broader and deeper skills and creativity.”

The government will allocate an additional SGD 5.4 billion (USD 4.0 billion) to a second tranche of the Jobs and Skills Package, on top of the SGD 3 billion (USD 2.2 billion) allocated last year.

Through the next phase of the SGUnited Jobs and Skills Package, the government set aside the budget to support the hiring of 200,000 locals this year through the Jobs Growth Incentive, and provide up to 35,000 traineeship and training opportunities to continue to support jobseekers in upskilling and accessing employment opportunities.

Furthermore, the Budget pledges to enhance the salaries of Singapore’s nurses and other healthcare workers such as support care staff.

On the topic of managing the local-foreign worker mix alongside industry transformation, Keat said, “I will support the employment of Singaporeans while we deepen their capabilities and promote capability transfer, while moderating our reliance on foreign labour where we must.”

Other key measures of Budget 2021 include a household support package and support for its ‘Green Plan 2030’.

In 2020, Singapore’s GDP shrank by 5.4%, according to the Ministry of Trade and Industry. For 2021, the MTI has maintained the GDP growth forecast at 4.0 to 6.0%.

The read the full Budget 2021 measures, click here.