Everything You Need to Know on Budget 2024

On 16 February 2024, Deputy Prime Minister and Minister for Finance, Mr Lawrence Wong delivered the new Budget 2024 Statement in Parliament, titled “Building Our Shared Future Together”.

It covered a wide range of topics on financial matters, from inflation to economic growth and measures taken by the government to combat the rising costs. Amongst the measures taken are changes and improvements to various schemes, grants, programmes, and initiatives designed to help local businesses in growing and innovating so that we may build a strong economy for all Singaporeans together.

Let’s look at the key points that you may need to know from the Budget 2024 Statement.

Supporting Businesses & Driving Growth

One of the key points was on the importance of supporting and driving innovation in enterprises, ensuring they have the necessary funds and capital to evolve and stay relevant.

Enhancements has been made to the Enterprise Support Package and Enterprise Financing Scheme to help manage the rising business costs.

There will be a 50% corporate income tax rebate, capped at $40,000, for YA 2024 and a cash payout of $2,000 for businesses that employ at least ONE local employee in 2023.

Adjustments to business loans are also put in place to increase working capital and operational cash flow needs, with the maximum working capital loan quantum to be permanently raised from $300,000 to $500,000 while the maximum trade loan quantum of $10 million and the project loans for domestic construction projects will be extended till 31 March 2025.

For companies looking to go green by investing in energy efficient equipment, the Energy Efficiency Grant (EEG) will be extended to cover more sectors including Manufacturing, Construction, Maritime and Data Centres and their users.

Investing in Our People

Minister Wong also touched on the importance of investing into upskilling and reskilling of employees, ensuring that your company and its people remain future-ready.

The funds for the Progressive Wage Credit Scheme have received a top-up of $1 billion to support lower-income workers, and co-funding support from the government will be raised from the current 30% to max 50% for employers who raise salaries for lower-wage workers. The qualifying wage ceiling for lower-income workers will also be raised from $2,500 to $3,000 in 2025.

If your employees wish to pursue a diploma, they can leverage on the SkillsFuture Mid-Career Enhanced Subsidy to upskill and reskill themselves while receiving subsidies of up to 90% of the course fees. Should they have to encounter any loss of income due to full-time studies, the SkillsFuture Mid-Career Training Allowance can help to alleviate it up to $3,000 a month.

To allow for financially supported training, there will be a $4,000 SkillsFuture Credit (Mid-Career) top-up in May 2024 while SkillsFuture Enterprise Credits (SFEC) will be extended to 30 June 2025.

You can use these credits on eligible industry-oriented training or other supportable schemes. It is also applicable if you wish to embark on Job Redesign (JR) with us to transform your business by redesigning your work processes and job roles.

To find out more information on Job Redesign and JR consultancy, you can read more here.

Want to find out more on the information covered in the Budget 2024 statement and how to best benefit from it?

We are co-organising a Post Budget Sharing session in partnership with 361DC for informative discussion and networking on 21^st March 2024.

Tickets are free for WAF guests! All you have to do is simply quote “361waf” on checkout.

-- This Event Is Over --

Check Out The Event Recap Here!

 

Summary of information covered above:

• Enhancements to the Enterprise Support Package
  • 50% corporate income tax rebate, capped at $40,000, for YA 2024
  • Cash payout of $2,000 for businesses that employ at least one local employee in 2023.
• Enhancements to the Enterprise Financing Scheme
  • Max working capital loan quantum to be permanently raised from $300,000 to $500,000.
  • Max trade loan quantum of $10 million will be extended till 31 March 2025
  • Project loans for domestic construction projects will be extended till 31 March 2025, with a max loan quantum of $15 million.
• Extension of SkillsFuture Enterprise Credit (SFEC)
  • Extended by another year to 30 June 2025
  • Employers can use it on supportable schemes beyond 30 June 2024
  • Final claims to be submitted before 30 June 2025
• Extension of Energy Efficiency Grant (EEG)
  • To cover more sectors including Manufacturing, Construction, Maritime and Data Centres and their users
  • Additional support for companies with more ambitious plans to reduce carbon emissions.
• Enhancements to Progressive Wage Credit Scheme
  • Fund to be topped up by $1 billion to support lower-income workers.
  • Employers who raise salaries for lower-wage workers will receive higher co-funding support from the government, from current 30% to max 50%
  • Qualifying wage ceiling to be raised from $2,500 to $3,000 in 2025.

For further information on Budget 2024, you may read more in the e-booklet below.