Page 5 - RSM Budget 2021 Highlights
P. 5
TO BUILD A FORTIFIED CITY AND EMERGE STRONGER IN THE NEW
NORMAL
The COVID-19 pandemic has triggered global shifts on the economic, social and political fronts. The Government
identified three mega shifts (a) the changing competitive landscape, (b) rising inequalities and (c) the importance of
sustainability, which will continue to reshape the world.
Beyond funding for the immediate needs, such as in the last year’s Budgets where broad-based emergency
support was provided to help businesses cope with the pandemic, the Government in this year’s Budget has
pledged to set aside $24 billion over the next three years to invest in our people and businesses so that we are
ready for opportunities that arise, able to innovate, build deep capabilities and seize growth opportunities. Together
it is hoped that we will emerge stronger from the crisis.
A slew of initiatives and schemes were announced by the Minister, some of which are outlined below:
Restore Changi Airport’s connectivity and invest in on-arrival COVID-19 testing and biosafety systems.
Create platforms to help businesses digitalise and innovate. In this regard, a new Corporate Venture
Launchpad will be piloted to provide co-funding for corporates to build new ventures through pre-qualified
venture studios.
The Enterprise Financing Scheme - Venture Debt Programme is extended and enhanced. The Programme is
aimed at start-ups, where the Government shares up to 70% of the risk on eligible loans with participating
financial institutions. The loan quantum cap is increased from $5 million to $8 million.
The new Emerging Technology Programme will co-fund the costs of trials and adoption of frontier
technologies such as 5G, artificial intelligence and trust technologies.
To help firms identify and adopt digital solutions, the Chief Technology Officer or CTO-as-a-Service initiative
will be launched which will give companies access to professional IT consultancies. The new Digital Leaders
Programme will also support promising firms in hiring a core digital team and in developing and implementing
digital transformation roadmap.
Existing business-focused schemes such as the Productivity Solutions Grant, Market Readiness Assistance
and Enterprise Development Grant will be extended to end March 2022 and the support levels enhanced of up
to 80%.
A new investment scheme targeted at large local enterprises was announced. The Government will set aside
$500 million to be co-invested with Temasek in a Local Enterprises Funding Platform, to be managed
commercially. Temasek will match the Government’s funds on a one-for-one basis, so the platform will have
$1 billion available for its investments in non-control equity and mezzanine debt of selected large local
enterprises.
A Bill will be tabled in Parliament later this year on the issuance of bonds under a proposed Significant
Infrastructure Government Loan Act (“SINGA”). Proceeds from the bond issues will be used to finance assets
that are crucial to Singapore’s long-term development and sustainability, and which will benefit the current
and future generations. Based on the expected pipeline of major long-term infrastructure projects (e.g. new
MRT lines, and coastal and flood protection projects) over the next 15 years, $90 billion is expected to be raised
under SINGA.
The Government will take the lead by issuing green bonds for select public infrastructure projects. The future
flow of green bond issues out of Singapore will deepen and broaden our capital markets, attract green issuers,
capital and investors seeking stable, long-term returns with a good credit quality. These activities anchor well
for Singapore and boost the country’s position as the region’s leading green finance hub.
4 | RSM