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Hard-pressed
How Budget 2017’s near-term support measures up to other indicators
Near-term help for workers SMEs
MEASURE
WHAT’S NEW
COST
(S$M)
%
GDP
EFFECTIVE
PERIOD
Public infrastructure projects
Brought
forward
Upgrading community clubs
and sports facilities
700
0.2
To start in
FY17-18
Wage credit scheme
■ subsidised wage increase
Extended
70% of payment to SMEs
600
0.1
FY17
Special employment credit
■ subsidised wages for old aged workers
Extended
re-employment age raised
to 67 (from 65)
460
0.1
FY17
SME working capital loan
■ Government to share 50% of default risks on
loans up to S$300,000
Extended
catalysed >S$700m
since inception (Jun 2016)
Corporate income tax rebate
■ rebate of 50% on tax payable for two years;
cap of S$20,000 each year
Enhanced
YA17 – 50% of tax payable
capped at S$25,000
YA18 – 20% of tax payable
capped at S$10,000
310
0.1
YA17-18
Fixed-asset investments
Formation and cessation of business entities
(S$M)
8,000
4000
NET FORMATION
7,000
FORMATION
6,000
3500
5,000
3000
CESSATION
4,000
3,000
2500
2,000
1,000
2000
0
-1,000
1500
-2,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015
2016
J F M A M J
2015
J
A S O N D* J F M* A M** J J A S O N D
2016
* ACRA struck off dormant companies in December 2015 and March 2016.
** Lower cessation figure in May 2016 due to ACRA deferring strike-off to June 2016 for administrative reasons.
Sources: MOF, RHB, EDB, DOS, ACRA