Press Conference on Second Support Package in Response to the Continuing Middle East Situation - 2M(F) Jeffrey Siow and SMS(T&I) Low Yen Ling

2M(F) Jeffrey Siow

1. Good afternoon.

2. In April this year, following the outbreak of conflict in the Middle East, the Government announced a $1 billion package of assistance measures for households and businesses. This came on top of support that was provided in Budget 2026. 

3. Over the last few months, the Government has progressively rolled out these measures.

   1. Businesses have received the enhanced Corporate Income Tax Rebate and Cash Grant.

   2. Households have received $500 in CDC Vouchers, as well as U-Save rebates in April and July.

   3. And the enhanced Cost-of-Living Special Payment of between $400 and $600 will follow in September.

4. We moved quickly with this first assistance package when the crisis erupted, to cushion the impact of the energy price shock on Singaporeans and businesses.

5. At one point, there were fears that the conflict would escalate further and severely disrupt shipping through the Persian Gulf. Fortunately, this worst case scenario did not happen.                  

6. But the situation remains fragile.

   1. Hostilities had subsided for a period. There was some hope of reopening the Strait of Hormuz.

   2. But fighting has flared up again, and shipping through the Persian Gulf continues to be disrupted.

   3. A durable ceasefire between the US and Iran is proving difficult.

   4. Uncertainty in the region will persist for some time.

7. As a result, we expect global energy prices to remain elevated, which will translate to higher costs for petrol, diesel, electricity, as well as certain imported goods.

8. And at the same time, our economy has held up better than expected.

   1. Growth in the first half was healthy, supported by strong investment in artificial intelligence. We expect this momentum to continue.

   2. But performance across the economy has been uneven. Businesses that are more exposed to supply disruptions and energy costs have come under greater pressure. SMEs, in particular, feel these cost pressures more acutely.

9. Given this backdrop, the Government will provide a second package of assistance measures, to support households and businesses through this period of uncertainty.

10. I will speak on what we are doing to support households. SMS Low Yen Ling will cover the specific measures for businesses.

11. First, to help households better manage their electricity bills, the Government will enhance the upcoming U-Save rebates in October this year, and January next year.

    1. This continues the enhancements to U-Save disbursed earlier in April and July.

    2. Taken together, HDB households will receive $110 to $190 in rebates, in every quarter of this financial year.

    3. This amount should fully offset the impact of higher utility bills for most households living in a 4-room or smaller HDB flat until March next year.

12. Second, to help with daily expenses and cushion the impact of inflation, we will provide every Singaporean household with an additional $300 in CDC Vouchers.

    1. This comes on top of the $500 in CDC Vouchers that we brought forward to June 2026.

    2. This $300 will be disbursed in January 2027.

13. Third, we will provide additional support for lower-income households.

    1. We will increase monthly payouts for ComCare Interim Assistance to at least $250 per month for up to three months, with more provided to those with greater needs.

    2. We will also be more flexible on the eligibility of Comcare Interim Assistance, so more households can qualify for support.

14. This second package of Government assistance comes to around $900 million.

    1. Taken together with the earlier $1 billion package, this amounts to around $2 billion of Government support, on top of what already provided at Budget 2026.

15. We believe this is the right response given the economic conditions today.

    1. At the same time, we recognise that the global situation remains highly fluid.

    2. The Government is also in close contact and close touch with trade associations and businesses, unions and workers, grassroots leaders and residents, and receiving regular feedback on the ground.

    3. And if circumstances change, we stand ready to respond.

16. Before I hand over the time to SMS Low to share about the support measures for businesses, let me recap what I have said in Mandarin.

17. 大家下午好。

18. 中东局势不断升温，全球经济受到冲击。

    1. 能源价格也大幅度上涨。

    2. 政府很清楚，这会影响生活费，也会增加企业的成本压力。

19. 今年四月，我们在财政预算案的基础上，追加了十亿元的援助配套。

20. 中东的冲突到现在还没有平息。

    1. 不过，我们的经济表现还是比预期来得好。

    2. 同时，我们也知道有些企业受到的影响 比较大，尤其是中小企业。

21. 所以，政府决定推出第二轮的援助，进一步帮助家庭和企业。

22. 接下来，我会谈家庭方面的措施。企业方面，由刘燕玲部长介绍。

23. 在家庭方面，首先，我们会调高水电费回扣。

    1. 符合条件的新加坡家庭，今年十月和明年一月会获得一共高达一百九十元的额外水电费回扣。

    2. 这足以抵消四房式或更小组屋单位到明年三月的水电费涨幅。

24. 第二，每一户新加坡家庭明年一月会多拿三百元的社理会邻里购物券。

    1. 我们希望这会减轻日常生活开销，同时支持本地邻里商店和小贩摊位。

25. 第三，我们会加强社区关怀计划下的临时援助措施。收入较低的家庭 ，会得到更多的帮助。

26. 这第二轮的配套总额大约九亿元。加上四月份的十亿元，一共接近二十亿元的政府援助。

27. 我们会继续留意情况。如果有需要的话，政府一定会采取更多的行动。

28. 谢谢大家。

29. Thank you. I will now hand the time over to SMS Low.

SMS(T&I) Low Yen Ling

1. Thank you and good afternoon.

2. In his remarks, Minister Siow shared that inflation is expected to remain elevated into next year.

3. Against this backdrop, we are boosting our support for our businesses, especially for our small and medium enterprises (or SMEs). We do this because we understand that many are concerned about higher operating costs and cashflow. We aim to help them better manage their costs in the near term, while giving them the support they need to make business adjustments for the long run.

4. To assist our businesses, we will provide additional help in three ways.

5. First, we will make a time-bound enhancement to the Enterprise Financing Scheme (or EFS), from September 2026 to March 2027. This will enable our local enterprises to better access financing to meet their cashflow needs.

   1. We will increase the Government’s risk-share from 50% to 70% for the EFS – SME Working Capital Loan and EFS – Project Loan. Businesses will have improved access to financing for their cashflow.

   2. We will also enhance the coverage of the EFS – Project Loan. Currently, it supports financing for overseas projects. We will expand its coverage to also cover and support domestic projects by local construction enterprises, amidst higher costs. This will make it easier for them to secure financing to manage higher costs amidst a challenging environment.

6. Second, we will provide a one-off SME Cash Grant to support our SMEs with their cashflow needs.

   1. Active SMEs with at least one local employee will be eligible for this grant.

   2. SMEs will receive a grant of $500 per local employee, up to a cap of $2,500 per company.

   3. Eligible sole proprietorships, partnerships, and limited liability partnerships with at least one local business owner but no local employees will also receive a flat $500 grant.

   4. The grant will be disbursed in November 2026.

7. Third, we will provide rental support for stallholders in markets and hawker centres managed by the Government and Government-appointed operators.

   1. Cooked food stalls will each receive $1,200.

   2. Market stalls will each receive $600.

   3. To help our stallholders over this period, the support will be disbursed across six months, from September 2026 to February 2027.

   4. They will be separately notified of the details, such as eligibility criteria.

8. Beyond these measures, we are continuing to work closely with sector agencies to support and strengthen our businesses through this challenging time. We are keeping a very close watch on how businesses fare, and we stand ready to provide additional targeted support when needed as the situation evolves.

9. 各位媒体朋友们，大家下午好。刚才萧部长提到，我们当前正面对国际局势的动荡和挑战，萧部长也介绍了政府为帮助本地家庭而推出的措施。接下来，我将精简地和大家分享政府如何从三方面，帮助中小企业减轻一些成本上升的压力。我们将从融资支持、现金补助和租金援助这三方面着手，为本地中小企业提供援助。

10. 首先是融资支持。从今年9月到明年3月，企业融资计划 (Enterprise Financing Scheme；简称EFS) 下的中小企业流动资金贷款（SME Working Capital Loan）和项目贷款（Project Loan），政府所承担的风险的比例，将从50% 上调到70%。EFS项目贷款的范围，也将从海外项目扩大到涵盖新加坡的建筑公司在本地的项目，让本地企业受惠。

11. 第二是现金补助方面。凡是有聘用本地员工的中小企业，每聘用的一名本地员工，可获500元的补助，顶限是2500元。个体经营者，合伙人或是有限责任合伙公司，只要有至少一名业主或是一位合伙人是新加坡公民，就算没有本地员工，也可以获得一次性500元的补助。这项补助将在今年11月发放。

12. 第三是租金援助方面。政府以及政府指定的经营者所管理的巴刹和小贩中心的摊主，都将获得租金补贴。巴刹摊位可获得600元的补贴，熟食摊位则可获得1200元的补贴。补贴将从今年9月开始，分6个月发放。

13. 政府会继续密切关注国际局势的发展，以及外部环境对本地企业的影响。步入8月份，我们即将欢庆新加坡建国61周年。61年来，我们和国人一起经历过许许多多的挑战和危机，也很多次把危机转变成为契机。我们有信心，这一次也能够一起战胜眼前的挑战，共同放眼未来的发展。

14. Thank you.