Page 5 - Build Strong Resilience in the Real Estate and Construction Sector

PaRT II: goVernment solidarity Funding is aVailaBle

the government of singapore has drawn on national reserves through several rounds of budgetary measures. to support this,
the coVid-19 (temporary measures) act was passed on 7 april 2020. this aims to help relieve individuals and businesses from
meeting qualifying contractual obligations including leases, construction contracts, loan facilities and hire-purchase agreements.

in a property leasing scenario, a moratorium might be applied to the property owner on taking actions against the arising
tenancy default (for a fixed duration). Landlords would also be restricted from taking actions, such as court arbitration, distress
claims, exercising securities and exercising forfeiture rights. in the similar vein, those in the engineering and construction
segments could make use of these measures to invoke moratoriums on contractual claims such as performance bonds, court
arbitrations and adjudications.

Below is a summary of government support schemes for businesses in the real estate and
construction industry to tide over the current challenges:

Cash Support

1. Job support scheme
2. solidarity Payment
3. self employed Person (“seP”) income relief scheme
4. extension of Permissible Period for distribution of taxable income for
real estate investment trusts ("reits")

Credit Support

1. temporary Bridging loan Programme
2. enterprise Financing scheme – sme capital Working loan
3. loan insurance scheme
4. increased aggregate gearing ratio

Cost reduction Support

1. Foreign Worker levy rebate
2. enhanced Wage credit scheme
3. Property and corporate income tax rebate
4. rental Waivers on government Properties
5. enhanced adapt and grow initiative (Workforce singapore)

Build strong resilience in the real estate and construction sector amidst the challenging outlook 5