Singapore government support for firms and workers to 'evolve and taper'; details to come on Monday

EVEN as Singapore extends support for firms and workers as the Covid-19 pandemic continues, such support will have to "evolve and taper", with details to come in a ministerial statement on Monday, Deputy Prime Minister and Finance Minister Heng Swee Keat said in a Facebook post on Friday.

"We will continue to support our workers and firms through this crisis. But we are not able to sustain the same level of support indefinitely," said Mr Heng, who is also Coordinating Minister for Economic Policies.

"As more sectors re-open gradually, we will have to evolve and taper the support provided. We will continue to provide targeted support to sectors that are hardest hit, including helping them pivot to new opportunities in growth areas."

At 3.30pm on Monday, Mr Heng's statement will be delivered in a broadcast on CNA, CNA938, and Mediacorp MeWatch, said the Ministry of Finance in a statement on Friday. The full statement will be published on the Singapore Budget website after delivery.

In his Facebook post, Mr Heng noted that the pandemic continues unabated in many parts of the world. "The global economy has taken a very severe hit, and the situation could get worse."

Although the government has provided almost S$100 billion in support to workers and firms over four Budgets, Singapore is likely to see more job losses and retrenchments in coming months, with "many more months" before the economy recovers fully.

"Even then, it will not be back to business as usual," he warned. Recovery across industries is likely to be uneven and uncertain. While some sectors are growing and even hiring, others have been hard-hit "and are unlikely to recover for some years to come".

Noting the concerns that people have shared about their livelihoods and uncertainty over support schemes that are expiring, Mr Heng said he would give details on how the government will "evolve and extend" support for firms and workers in his Monday statement.