Singapore Market Focus ~ Fortitude Budget - DBS Research 2020-05-27: A Determined COVID Response

Singapore Market Focus - DBS Research | SGinvestors.io SINGAPORE TECH ENGINEERING LTD (SGX:S63) COMFORTDELGRO CORPORATION LTD (SGX:C52)

Singapore Market Focus ~ Fortitude Budget - A Determined COVID Response




S$92.9bn response to COVID-19



Job Support Scheme enhancements

  • This will be extended by one month for a total of 10 months of wage support. Firms that are not allowed to re-open on-site after 1 June will get a wage subsidy of 75% of first S$4.6k till Aug 2020.
  • Wage support will increase to 75% (previously 25%) for sectors severely impacted by the Circuit Breaker such as aerospace (ST Engineering (SGX:S63)) and construction.
  • Wage support has also been lifted to 50% (previously 25%) for sectors such as food services, rail operators (ComfortDelGro (SGX:C52)), marine & offshore (Keppel Corp (SGX:BN4), Sembcorp Marine (SGX:S51)), cinema operators (mm2 Asia (SGX:1B0)) and retail (Retail REITs).


Improving cashflow and lowering cost

  • Foreign worker waivers and rebates will be extended for up to 2 months for businesses that must remain closed after the Circuit Breaker is lifted such as marine & offshore (Keppel Corp (SGX:BN4), Sembcorp Marine (SGX:S51)) and construction. This amounts to 100% waiver with S$750 rebate for June and 50% waiver with S$375 rebate for July.
  • There is also rental relief for qualifying SME tenants ( < S$100m annual revenue) to receive cash grants equivalent to 0.8 month’s of rent for qualifying commercial properties and 0.64 month’s rent for qualifying industrial and office properties.


Negative for industrial and office REITs


Straits Times Index up a modest 43pts since Resilience Budget. See chart in PDF report attached below.






Kee Yan YEO CMT DBS Group Research | Janice CHUA DBS Research | https://www.dbsvickers.com/ 2020-05-27
SGX Stock Analyst Report HOLD MAINTAIN HOLD 3.400 SAME 3.400
HOLD MAINTAIN HOLD 1.550 SAME 1.550



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