Everything you need to know about new S$1.5 billion package to help lower-income fight inflation

The Government announced a S$1.5 billion support package on Jun 21, 2022 that will help lower-income and more vulnerable groups fight inflation.

At a press conference on the same day, Deputy Prime Minister Lawrence Wong told reporters that although inflation situation will eventually stabilise, Singapore must expect price increases to continue in the coming months. And that is why the Government decided to introduce another support package to help Singaporeans.

Here’s what you can expect:

For individuals and households

– Eligible Singaporeans will get a one-off GST Voucher cash special payment of up to S$300. This will be given out in August 2022 and is on top of the regular GST Voucher (cash of up to S$400) that had earlier been announced.

– All Singaporean households will receive a S$100 rebate on utilities.

– There will be permanent enhancements to ComCare assistance schemes. This is to support households on short- to-medium term Assistance or long-term assistance.

– Permanent revision to Singapore Allowance and monthly pension ceiling. This is to support pensioners who draw lower pensions.

For workers

– There will be an increase in Government’s co-funding for the Progressive Wage Credit Scheme for eligible wage increases in 2022 to help lower-wage workers:
• From 50 per cent to 75 per cent for wages up to S$2,500 (first tier)
• From 30 per cent to 45 per cent for wages above S$2,500 up to S$3,000 (second tier)

– The Jobs Growth Incentive will be extended for another six months to Mar 2023 to sustain support for employers of vulnerable workers. More details will be announced in Sep 2022.

For self-employed persons

– Eligible taxi drivers and private hire car drivers will receive a one-off relief of S$150 in August 2022.

– Up to S$300 in cash under the U FSE (NTUC Freelancers and Self-Employed Unit) Relief Scheme 2022 for combi bus drivers, limousine drivers, delivery drivers, and delivery motorcycle riders who are association members. Application is needed for this.

For businesses

– There’s the Energy Efficient Grant for local SMEs in food services, food manufacturing, and retail sectors; up to 70 per cent support to adopt energy-efficient equipment in pre-approved categories.

– The Trade Loan (Enterprise Financing Scheme) will also see its maximum loan quantum increased to S$10m from Jul 1 2022 to Mar 31, 2023; extended 70% risk-share during this period.

– The SME Working Capital Loan will also see its Maximum loan quantum increased to S$500k from Oct 1, 2022 to Mar 31, 2023 after the Temporary Bridging Loan Programme expires on Sep 30, 2022.