Fortitude Budget 2020: Impact on SME Tenants



Share on facebook
Share on email
Share on whatsapp

Written by: Syasya Nur

Singapore’s property sector is set to see new changes with the new Fortitude Budget rolled out on 26 May. Deputy Prime Minister (DPM) Heng Swee Keat announced in parliament on 26 May 2020 that $33 billion would be rolled out to help ease the financial circumstances that small and medium enterprises (SMEs), workers and households are facing due to COVID-19.

How will the new Fortitude Budget impact Singapore’s SME Tenants?

1. Expansion of rental relief for SMEs

Under the Fortitude Budget, $2 billion in cash grants has been set aside for qualifying SMEs. This marks the fourth budget rolled out in the year 2020. Along with this year’s property tax rebate, the main goal of this budget is to:

  • Offset two months’ rental for qualifying SME tenants of commercial properties.
  • Offset one months’ rental for qualifying SME tenants of industrial and office properties.

These rebates are meant to complement the first phase of the circuit breaker exit that started on 2 June 2020, so that SMEs can operate with fewer restrictions and ultimately generate more profit.

However, DPM Heng Swee Keat also stressed that these rebates are but a short-term solution. A complete restoration of business operations is essential for SME owners to recover losses over the past few months, and potentially, losses in months to come.

2. Creation of industry panel for fair leasing practices

Previously, landlords had come under scrutiny for refusing to pass on government tax rebates to tenants. The new budget has taken that into account and will ensure that funds will go directly to tenants.

In addition, five SME groups in Singapore have come together to form the The Fair Tenancy Framework Industry Committee (FTFIC) to represent more than 10,000 firms and advocate for fairer leasing practices The FTFIC submitted a position paper and recommendation to the Ministry of Law and Ministry of Trade and Industry stating 15 key recommendations for fairer leasing agreements.

The FTFIC and COVID-19 (Temporary Measures) Act seeks to tip the power scales in favour of the tenants and give tenants some leverage in reshaping contracts in time to come.

SME Tenants are advised to read up on Tenant-Landlord Rights in Singapore in order to protect themselves.

Planning to rent an apartment during this period? Read our FAQ or speak to our in-house agents.

Call +65 6886 9009 for professional advice.

While the Information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact on the accuracy of the Information. The Information may change without notice and Ohmyhome is not in any way liable for the accuracy of any information printed and stored or in any way interpreted and used by a user.

Consult an expert for free!

Send us your details and we’ll be in touch within 15 min (daily 9am to 9pm GMT +8).


Contact us your way

Talk to us today. Available daily 9 AM to 9 PM (GMT +8)

Subscribe Now

Get a notification every time we upload a new blog post.

Find out how to transact your home during this period

Buying or selling your property during COVID-19?

Find out how to transact your home during this period

Buying or selling your property during COVID-19?


Share on facebook
Share on twitter
Share on whatsapp
Share on email

Consult an expert for free!

Send us your details and we’ll be in touch within 15 min (daily 9am to 9pm GMT +8).


Featured Blogs

Highlighting unique property views for every Singaporean

get an agent

Sell with an Agent

Dedicated experts at your service

Documentation Services

Leave the paperwork to us

do it yourself

Prefer to do-it-yourself?

Check out how our platform can help

Post a Listing for Free

Download the app and connect with buyers


Ohmyhome E-Valuation

Know the value of your property in seconds!

Calculate Seller’s Stamp Duty

Find the amount payable when selling

How to Sell an HDB

A step-by-step guide to selling HDB

How to Sell my Private Property

A step-by-step guide to selling condo/landed