Landlords & Government To Help SMEs Tide Through Covid-19 Through Rental Waivers

On Tuesday (26 May), Deputy Prime Minister Heng Swee Keat introduced the Fortitude Budget to help Singapore tide through the difficult times ahead.

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Amounting to $23.5 billion in total, $2 billion of the Fortitude Budget will go towards local small-and-medium enterprises (SMEs) in the form of rental waivers.

$2 billion cash grant

According to Mr Heng, the $2 billion waiver will be “disbursed through property owners” from end-July.

He outlines that under the new package, qualifying tenants of commercial properties – retail stores, for example – can receive up to 0.8 month’s worth of rental grants.

On the other hand, those in industrial and office properties will get a grant amounting to around 0.64 month’s worth of rent.

The new grant is also applicable to SME property owners who run businesses on their own property.

Landlords required to waive rental fees

Furthermore, the government will also be implementing a new Bill next week, requiring landlords to provide waivers for SME tenants which have “suffered a significant revenue drop” over the past months.

Together with the Property Tax Rebate, the government will help offset 2 months of rental for qualifying SME tenants in commercial properties.

SME tenants occupying industrial and office properties will enjoy 1 month of rental waiver in total.

This move secures benefits for SMEs who suffered “significant revenue drop” due to the prevalent virus.

Featured image adapted from Facebook