Tuesday's Singapore budget contained a slew of "generous" measures that should benefit the retail property sector in the near-term and industrial properties over the longer term, Colliers International says. 

The financial policies announced by Deputy Prime Minister and Finance Minister Heng Swee Keat for the coming year included specific initiatives designed to address the coronavirus outbreak, with the allocation of SGD5.6 billion under two packages – Stabilisation and Support Package, and Care and Support Package.

There will also be SGD800 million assigned to helping frontline agencies fight and contain the outbreak.

Colliers International Singapore Head of Research Tricia Song said a 15 per cent property tax rebate for qualifying commercial properties should alleviate some concerns among retail mall operators arising from coronavirus.

"Colliers Research recommends retail landlords pass on the savings in the form of fit-out incentives during downtime or as direct temporary rent rebates for tenants," she said.

Source: Singapore Government

"Funds could also go to increased mall hygiene and/or free parking and increased marketing campaigns such as cashback.

"The delay in GST hike should encourage more domestic spending at least into 2021, and support retail sales."

Tuesday's budget also featured the unveiling of the government's Research, Innovation and Enterprise 2020 Plan, which outlines investment into artificial intelligence, industrial robotics, urban sustainability and biomedical sciences

An additional SGD300 million has been set aside under the Startup SG Equity for deep-tech start-ups, such as those in pharmbio and medtech, advanced manufacturing, and agri-food tech.

Ms Song said the manufacturing and property sectors both stood to benefit from the strategy.

"The Research, Innovation and Enterprise 2020 Plan should benefit the industrial property sector and we believe the government’s long-term strategic push on electric vehicles (EVs) could have a positive spillover effect on the manufacturing sector, pushing up demand for EVs production and other cleaner technologies in the long run," she said.

Click here for more information about 2020 Singapore Budget.

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