Substantial support will be given to Singaporeans during this downturn, primarily through job preservation.

This will be complemented with "direct assistance to all Singaporeans as well as targeted help for the most vulnerable groups."

In total, direct support to households and community groups amounts to $2.6 billion in 2009. This is on top of the help that Singaporean households will get from job initiatives such as the Jobs Credit, the WIS Special Payment and SPUR.

Direct assistance to households

Additional GST credits

Households will receive double the GST credits in 2009. Each household will be given an additional payout of GST Credits, on top of the one that they will receive in July. This will be paid out in March, to help households with their immediate needs. This measure will cost the government $580 million.

More GST credits will be given to the low-income and the old.

S & CC and rental rebates

Those living in one to three-room HDB flats will receive an additional one month of service and conservancy charge (S & CC) rebates, who will therefore receive a total of 3 to 4.5 months for this year.

Those living in larger flats will receive a total of one to two months of rebates.

An additional one month of rental rebate will be given to eligible households in public rental flats, who will get three to four months of rental rebates this year.

Tax assistance to households

Households that pay income tax will be given a personal income tax rebate of 20% for tax residents for Year of Assessment 2009. This will reduce their tax payable for last year's income.

This rebate will be capped at $2,000. This measure will cost the government $457 million.

Individual tax residents who have lost their jobs in 2008 or lose their jobs in 2009 will be able to pay their personal income taxes this year in instalments of up to 24 months, up from 12 months.

Owner-occupied residential properties for 2009 will also be given a 40 per cent tax rebate for 2009, which will cost the Government $75 million.

The income tax on Net Annual Value for higher-value homes or secondary residences will be removed with effect from Year of Assessment 2010.

All households will benefit

Singaporeans will receive substantial benefits from this year, as a result of this year's measures plus the measures previously announced for 2009, such as the U-Save rebates.

• Low-income households and those with elderly family members will get the most benefits. As an example, Mr Tharman said, "A retired couple in their 60s who live in a three-room HDB flat together with their working daughter with relatively low-income, can expect to receive about $4,500 in benefits in 2009."
• Middle class will also get significant benefits. The Finance Minister cited, "For example, take a family of four living in a five-room HDB flat with working parents earning $4,500 and $3,000 a month and two teenage children. They fall within the upper-middle income group in Singapore. They will receive $2,200 in total in 2009. This will include about $800 in GST Credits and $270 in personal income tax rebates, $800 in PSEA Top-Ups and $330 in U-Save, S&CC and property tax rebates."

Mr Tharman said that for most households, benefits exceed what they would have gained had the GST been cut by 2 per cent instead. He emphasised that keeping the GST is the right strategy for the times.

Increase in additional CPF housing grant

The government will ensure that public housing remains affordable to first-time home buyers.

The Additional CPF Housing Grant (AHG) for first-time home-buyers will be increased and broadened, with the maximum AHG quantum raised from $30,000 to $40,000.

The household income ceiling will also be raised from $4,000 to $5,000

These enhancements will more than double the estimated cost of the AHG scheme to approximately $150 million per year.

Targeted measures for vulnerable

The Government will increase the Public Assistance (PA) rate for single-person households by $30 from $330 to $360.

For government pensioners, the Government has also decided to increase the Singapore Allowance by $20 per month to $240.

The Public Transport Fund will also be topped up to bring it to $10 million and ensure that it is sufficient to fund public transport vouchers for all low-income households who need help.

$100 million dollars each will be added to the ElderCare Fund and Medifund this year. 

Financial assistance for students

MOE will enhance the financial assistance schemes for students, and introduce a Short-Term Study Assistance Scheme (SSAS) for students in our ITEs, polytechnics and autonomous universities. More details will be found at MOE's COS.

Support for charitable giving and the community

Several measures will be introduced to support enhanced community initiatives.

(1) Tax deductions for donations made in 2009 to Institutions of Public Character (IPCs) and other approved institutions will be increased from 200% to 250%.

(2) An additional $15 million to support government-funded voluntary welfare organisations (VWOs) will be provided, bringing the total to about $220 million for the year.

Jobs Credits will also be extended to VWOs, as they employ workers as well.

More resources will also be allocated in training social workers to strengthen the capacity of the VWO sector and achieve a better reach to families at risk.

(3) Funding to Self-Help Groups (SHG) will be increased to a total of $9 million a year for the next two years. Funding to the CCC-Comcare Fund will also be increased to $7 million a year, for the next two years.

(4) Greater tax incentive will be given to social enterprises - Companies Limited by Guarantee (CLG), set up by individuals to serve a core social objective. The government will extend the tax exemptions for start-ups to Companies Limited by Guarantee from YA2010.