Extraordinary Budget 2020! What You Need To Know For Families

Risk of recession mentioned by PM Lee because of COVID-19

"I can’t say whether we will have a recession or not.

It’s possible, but definitely our economy will take a hit,"

This was what PM Lee told reporters on Friday (Feb 14) during a visit to Changi Airport Terminal 3.

The impact, particularly in the next few quarters, will be significant as the country battles a "very intense outbreak", he said.

"It’s already much more than Sars, and the economies of the region are much more interlinked together. China, particularly, is a much bigger factor in the region," he added.

Retail industry and Tourism industry hit REALLY HARD!

The tourism industry is among the hardest hit sectors.

Already, the government is bracing itself for tourist arrivals to drop by between 25 and 30 per cent this year. (stated in post above)

MBS is the best example to see the impact of COVID-19 on tourism

Below is an image taken at MBS around 7pm! SERIOUSLY NOBODY!

Chinatown is also a classic example to see the impact of COVID-19 on the retail industry!

I have a family member operating a business there in People's Park Centre and traffic has been the MOST empty in years.

It used to be bustling with chinese foreign workers who would be doing remittance and buying things to send back to China.

But now, it has all evaporated. As of 8pm, the whole mall looks almost empty.

What about Peoples park food centre?

Chinese workers used to dine and eat 重庆烤鱼 and 麻辣汤 with MANY MANY bottles of china TSINGTAO beer.

Used to be TOTALLY PACKED! But now... =(


At TheAstuteParent, we'd be focusing on the benefits to families and citizens. Most of us are not business owners so these following points are really for you!

Click on this link to see Budget 2020 infographics!

(Source from NTUC Labour Movement)

1) Care and Support Cash

#1: Up to $300 for all singaporeans aged 21 and above

#2: Additional $100 for each parent with a child age 20 and below.

This is free cash! Fully details out in future.

2) Additional GST Voucher - U Save + S&CC rebates

Double the GSTV - U Save for eligible HDB households.

If you are not familiar with GST Voucher, click here.

Eligible Singaporean households living in HDB flats will receive rebates to offset between 1.5 and 3.5 months of Service and Conservancy Charges (S&CC) charges.

3) GST will not be raised till at least 2022!

Super good news!

The dreaded 9% GST will take place somewhere in 2022 to 2025! 

4) Passion card top up ($100 for age 50 and above) and grocery voucher (for citizens in 1 or 2room HDB)

#1) $100 top up to all Singaporeans aged 50 and above in 2020

#2) $100 grocery voucher for Singaporeans age 21 and above for 2020 and 2021.

5) Introduction of Matched Retirement Savings Scheme 

The Government will introduce the Matched Retirement Savings Scheme (MRSS) from 2021 to 2025 to help those who have less CPF savings to save more for retirement. 

Lower- to middle-income Singaporeans aged 55 to 70 who have not been able to set aside the prevailing Basic Retirement Sum will be eligible for this scheme.

The Government will match every dollar of cash top-up made to the CPF Retirement Account, up to an annual cap of $600.

6) Additional subsidies for Pre-school and KiFAST

The subsidies were previously already raised in NDR2019.

Details are not out yet but expect even more of us to qualify for subsidies!

Conclusion: Is it the government's job to help?

Many jobs are affected in this period. Even taxi drivers.

You'd certainly know of a family member/friend/army buddy/customer who is in retail or tourism. And really hurting right now...

When our economy suffers, no one benefits.

Investment confidence drops and domestic spending shrinks.

Hence, this extraordinary budget filled with freebies is indeed timely and hopefully, we can ride out COVID-19 together soon!

PS: In this video below, I'd be sharing some investing insights.

Travel industry and the hospitality industry will suffer for a period from this wuhan virus.

In Singapore, SIA will see loss of business volume.

In hotel line, there is CDLHT, Frasers HT, AMARA, BANYAN TREE, Roxy...

For internal tourism in China, there is SASSEUR REIT and there is STRACO. 

Watch video below to learn more and join our community.

Last updated on February 24th, 2020 at 05:06 pm

Josh Tan Jian Liang (CHFC) Principal Author

REVIEWS: https://theastuteparent.com/josh-tan Practising financial planner with Promiseland Independent Pte Ltd. EXPERIENCE: More than 13years. Josh Tan is a young parent, speaker, author and founder of TheAstuteParent.

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