CHARTING OUR

NEW WAY FORWARD

TOGETHER
 Dear Fellow Singaporeans,
FOREWORD

Over the past two years, we have overcome

challenges brought about by COVID-19.
Singaporeans have rallied together, and we are
stronger now than when the virus first emerged.

We continue to provide targeted help where

needed, for workers, businesses, and households.
Beyond the immediate challenges, we must set our
eyes on the future and position ourselves for the
challenges and opportunities of the decade ahead.

We will continue to invest in our people and

enterprises. I encourage businesses to transform,
develop new capabilities in your employees, and
seize new growth opportunities from the green
economy.

We will renew and strengthen our social compact.

We are investing in our children and uplifting
lower-wage workers, boosting retirement adequacy,
and preparing for future healthcare needs. This will
enable us to build a more caring and inclusive
society.
We are building a fairer and more resilient revenue
system to support our growing expenditure needs.
While everyone will chip in, those with more will
contribute more. This allows us to ensure a fairer
and more progressive system of taxes and
transfers.

We are charting a new way forward today !

together, we will see through the pandemic, and
build a better Singapore for tomorrow.

Lawrence Wong
Minister for Finance

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 CONTENTS

INVEST IN NEW CAPABILITIES

Support for Businesses
page 6 - 7
Invest in our People
page 8 - 9

RENEW & STRENGTHEN

OUR SOCIAL COMPACT
GST Support
page 11 - 12
Support for Households
& Community
page 13 - 15

3
ADVANCE OUR GREEN TRANSITION
Singapore Green Plan
page 17
Carbon Tax
page 18

BUILD A FAIRER & MORE

RESILIENT TAX SYSTEM
page 20 - 22

4
 INVEST IN
ECONOMY

NEW
CAPABILITIES
SUPPORT FOR BUSINESSES

IMMEDIATE SUPPORT FOR BUSINESSES

$500 million Jobs and Business Support Package
New Small Business Recovery Grant
$1,000 payout per local employee (up to $10,000
per firm) for SMEs in sectors most affected by
COVID-19 restrictions
$1,000 payout to local sole proprietors and
partnerships in eligible sectors, and SFA-licensed
hawkers, market, and coffeeshop stallholders,
who do not hire local employees
Extend Jobs Growth Incentive to Sep 2022 to
encourage hiring of workers who face greater
difficulties in finding jobs
Extend Temporary Bridging Loan Programme and
Enterprise Financing Scheme (EFS) — Trade Loan to
30 Sep 2022, with revised parameters
Extend enhanced EFS — Project Loan to 31 Mar 2023
to support domestic construction projects
Aviation Support Package to preserve core
capabilities and enhance status as an international
aviation hub

6
 DIGITALISATION AND INNOVATION
Additional $200 million for building digital
ECONOMY

capabilities
Increase capacity of centres that engage in
technology, innovation, and enterprise
activities in Polytechnics and ITEs over next
5 years

STRENGTHEN LOCAL ENTERPRISES

$600 million to scale up Productivity Solutions
Grant (PSG) to support more than 100,000 PSG
projects over next 4 years
New Singapore Global Enterprises initiative
for larger local enterprises to innovate and
internationalise
New Singapore Global Executive Programme
to attract more young local talent to join
Singapore global enterprises

ENTERPRISE FINANCING SCHEME

Enhance Merger & Acquisition (M&A) Loan to
include domestic M&A activities from 1 Apr 2022
to 31 Mar 2026
Maintain 70% risk-share under enhanced Trade
Loan beyond 30 Sep 2022 for enterprises trading
in nascent markets

7
INVEST IN OUR PEOPLE
INVEST IN OUR PEOPLE
SkillsFuture Enterprise Credit (SFEC) covers up
to 90% of qualifying expenses e.g. job redesign,
training courses
Expand SFEC to an additional 40,000 SMEs by
waiving the Skills Development Levy
contribution requirement

BETTER SKILLS MATCHING

$100 million to support NTUC to scale up Company
Training Committees and introduce new grant to
support companies’ transformation plans

8
 SUPPORT FOR MID-CAREER WORKERS
SGUnited Mid-Career Pathways Programme —
ECONOMY

Company Attachment made permanent with

full-time attachments and training allowances
New SkillsFuture Career Transition Programme
to provide high-quality, industry-oriented training
courses for jobseekers

ADJUSTMENTS TO FOREIGN WORKER POLICIES

Changes to Employment Pass
Raise minimum qualifying salaries to $5,000;
$5,500 for financial services
For new applications from Sep 2022, and
renewal applications from Sep 2023
Changes to S Pass
Raise minimum qualifying salaries to $3,000;
$3,500 for financial services
For new applications from Sep 2022, and renewal
applications from Sep 2023
Tier 1 levy raised to $650 in 2025
Changes to Work Permit for construction and
process sectors
Lower Dependency Ratio Ceiling from 1:7 to 1:5
from 1 Jan 2024
New levy framework from 1 Jan 2024

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 RENEW &
SOCIAL

STRENGTHEN
OUR SOCIAL
COMPACT
 SOCIAL

GST SUPPORT
$6.6 BILLION ENHANCED ASSURANCE PACKAGE
$700 to $1,600 cash payouts for Singaporean
adults over next 5 years
$600 to $900 GSTV — Cash (Seniors’ Bonus)
over next 3 years for eligible seniors aged
55 and above
$330 to $570 additional GSTV — U-Save
rebates over next 4 years for eligible HDB
households
$450 MediSave top-ups over next 3 years for
Singaporean children aged 20 and below and
seniors aged 55 and above
$400 Community Development Council (CDC)
vouchers over 2023 and 2024 for Singaporean
households

11
ENHANCED
! GST VOUCHER (GSTV) SCHEME
Service and Conservancy Charges (S&CC)
Rebates (new component)
Increase Assessable Income threshold for
GSTV — Cash from $28,000 to $34,000, benefitting
more Singaporeans
Increase in GSTV ! Cash payouts:

Annual Value GSTV — Cash

of Home Payouts

$13,000 and below $500 (up from $300)

$13,001 to $21,000 $250 (up from $150)

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 SUPPORT FOR HOUSEHOLDS
& COMMUNITY
SOCIAL

IMMEDIATE SUPPORT FOR HOUSEHOLDS

$560 million Household Support Package
Double GSTV — U-Save rebates (up to $285
more for eligible HDB households) for the
remaining quarters of 2022
$200 top-up to Child Development Account,
Edusave Account or Post-Secondary Education
Account for children aged 20 and below
$100 CDC Vouchers for all Singaporean
households in 2022

BOOST RETIREMENT ADEQUACY

Continue next increase in CPF contribution
rates for senior workers aged 55 to 70 in 2023
(including CPF Transition Offset)
Raise Basic Retirement Sum for those turning
55 in 2023 to 2027

INVEST IN OUR CHILDREN

Enhance Fresh Start Housing Scheme to better
support second-timer families with children
living in rental housing to purchase a flat
Scale up KidSTART programme nationwide
Expand into a nationwide UPLIFT Community
Network to support more students in
disadvantaged families
Integrate social service delivery, in tandem with
Community Link scale-up to support more
families with children living in rental housing

13
PREPARE FOR FUTURE HEALTHCARE NEEDS
Healthier SG ! Bring healthcare closer and make it more
accessible to the community
Closer partnerships between healthcare clusters and
community partners
Enhance and integrate mental health and social services

CARING AND INCLUSIVE SOCIETY

Launch Enabling Masterplan 2030 to strengthen
support for persons with disabilities in areas like
employment, lifelong learning, and respite care
$100 million top-up to Enhanced Fund-Raising Programme
until end-FY2024 to match eligible donations
$26 million top-up to Charities Capability Fund to help
charities do more for the community
Extend One Team Singapore Fund for 5 years to match
donations to High Performance Sports
$150 million top-up for 3 years to Cultural Matching Fund
to match donations to Arts and Heritage charities

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 UPLIFT LOWER-WAGE WORKERS
Extend Progressive Wage Model to retail,
SOCIAL

food services, and waste management sectors;

and to other occupations, e.g. in-house cleaners,
administrators, and drivers
Companies employing foreign workers required
to pay local employees at least the Local
Qualifying Salary, currently $1,400 per month
Co-fund wage increases of lower-wage workers
between 2022 and 2026 under the Progressive
Wage Credit Scheme

Year Wage Increase

2022 - 2023 50%

2024 - 2025 30%

2026 15%

Enhance Workfare Income Supplement to

boost wages of lower-wage workers
More workers benefit with higher qualifying
income cap of $2,500 per month
Extend to workers aged 30 to 34
New minimum income criterion: $500
Higher maximum annual payouts of $2,100 to
$4,200

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 ADVANCE
SUSTAINABILITY

OUR GREEN
TRANSITION
 SUSTAINABILITY

ADVANCE OUR
GREEN TRANSITION
NET ZERO AMBITION
Raise Singapore’s ambition to achieve net zero
emissions by or around mid-century

SINGAPORE GREEN PLAN

Green growth opportunities and jobs e.g. green
finance, carbon services
Increase public sector green bonds issuance
to $35 billion by 2030; publish Singapore Green
Bond Framework by 2022
Accelerate adoption of Electric Vehicles by
having more charging points near homes

17
CARBON TAX
Carbon tax rate adjustments:

Year Rate (per tonne)

Current $5

2024 - 2025 $25

2026 - 2027 $45

By 2030 $50 to $80

Allow carbon tax-liable businesses to use carbon

credits to offset up to 5% of taxable emissions
from 2024
Transition framework to help emissions-intensive,
trade-exposed sectors manage near-term impact
on business competitiveness
More details on support for households to be
announced next year e.g. additional U-Save rebates

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 BUILD A
TAX

FAIRER &
MORE
RESILIENT
TAX SYSTEM
A FAIRER & MORE
RESILIENT TAX SYSTEM
CORPORATE INCOME TAX
Explore a top-up tax called the Minimum Effective
Tax Rate (METR) regime, in line with the global minimum
effective tax rate under the Base Erosion and Profit
Shifting (BEPS) 2.0 Pillar 2
IRAS will consult the industry on the design of the METR

PERSONAL INCOME TAX

Increase in top marginal tax rate from Year of
Assessment 2024:

Portion of
Tax Rate
Chargeable Income

In excess of $500,000 23% (up from 22%)

up to $1 million

In excess of $1 million 24% (up from 22%)

20
 PROPERTY TAX
Increase in marginal tax rates from 2023 in two
TAX

steps. The rates from 2024 are:

Non-owner-occupied residential properties:
12%-36% (up from 10%-20% )
Owner-occupied residential properties for
the portion of annual value in excess of
$30,000: 6%-32% (up from 4%-16% currently)

ADDITIONAL REGISTRATION FEE (ARF)

Higher ARF rates for luxury cars
Additional ARF tier for cars at a rate of 220%
for the portion of Open Market Value in excess
of $80,000

Open Market Value ARF Rate

First $20,000 100%

Next $30,000 140%

Next $30,000 180%

Above $80,000 220%

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GOODS AND SERVICES TAX (GST)
GST increase will be delayed to 2023 and staggered
over two steps:

Time Period GST Rate

From 1 Jan 2023 8%

From 1 Jan 2024 9%

To cushion the impact of the GST increase:

$6.6 billion enhanced Assurance Package for
all Singaporeans (page 11)
Enhanced permanent GSTV scheme for lower-
to middle-income households (page 12)
No increase in Government fees and charges for
1 year from 1 Jan 2023
Continue to absorb GST for publicly-subsidised
healthcare and education
Additional $15 million per year for Town Councils to
absorb additional GST payable on Service and
Conservancy Charges
Productivity Solutions Grant for businesses to
apply for subsidised accounting and point of sale
solutions (page 7)

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Read more at singaporebudget.gov.sg

Based on information available as of 18 February 2022