Singapore to offer USD1Bn support package due to elevated energy costs

Singapore to offer USD1Bn support package due to elevated energy costs

Singapore has announced a commitment of USD 1 billion as inflation relief for households and businesses, as the energy prices increase universally faster than projected and are predicted to stay high.

As per sources, Lawrence Wong, Deputy Prime Minister of Singapore has announced the support package scheme which will be funded from the country’s better-than-expected fiscal position in FY21, stated the Ministry of Finance.

There will be no reduction in quality on the previous reserves of the nation.

Lawrence Wong, who is also the finance minister, stated that the situation is very fluid, and the government will continue analyzing the situation closely and incorporating programs and measures accordingly.

Wong mentioned earlier that the country has been dealing with many crises at the same time such as Covid-19 pandemic, inflation, and economic slowdown.

Reportedly, with the possible increase in the energy prices in the latter half of the year, many small enterprises will receive funding by the government of up to 70 per cent for equipment that are energy efficient.

Moreover, the latest Energy Efficient Grant focuses on food manufacturing, food services, and retail sectors.

Wong added that co-funding investments in energy-efficient equipment is a highly sustainable way to assist businesses to manage the rates of energy, which are beyond control. Along with this, every house in Singapore will also get USD 72.04 credits to bear the utility bills.  

According to sources, eligible private-hire drivers and cabbies will get a one-off payment of USD 108 in August. On the other hand, limousine, combi bus, and delivery drivers, part of labour movement-linked groups, will be eligible to apply for relief grants of nearly USD 216, provided by the National Trades Union Congress.

Wong also commented that they are aiming towards the transition to cleaner vehicles, and the elevated energy prices is the best opportunity to make the change.

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