Firms offer cash and aid in kind as staff tighten their belts

Singapore

AS the Covid-19 epidemic takes a toll on households, companies are stepping up to help their staff tide over possible cash crunches.

On the table: salary advances, interest-free loans, or even cash grants.

That's on top of the appreciation vouchers offered to front-line staff, as well as the financial aid for Malaysian workers affected by the movement control order that kicked in across the Causeway in mid-March.

Wong Keng Fye, head of human capital at Maybank Singapore, told The Business Times: "Our philosophy is to adopt a targeted approach aimed at helping those staff that require assistance and reach out to those who are in a vulnerable position."

One group of Singapore workers thrust into the spotlight is made up of Johor residents who travelled daily across the Causeway to work here.

Since Malaysia announced travel restrictions on the night of March 16, infrastructure group Sembcorp Industries has provided affected workers with cash to cover living expenses, plus transport, housing, meals and amenities such as washing machines.

Similarly, West Pharmaceutical Services, which makes drug packaging, opened a global employee emergency fund aimed at staff such as Malaysian or mainland Chinese workers who cannot return to Singapore. Those still in China, where the coronavirus outbreak began, are also facing exit controls and other travel curbs.

Other West employees in financial crisis can also apply, with payouts generally comprising a few hundred dollars, a spokesperson told BT.

Meanwhile, some front-line workers may look forward to tokens of appreciation, such as S$100 CapitaLand mall vouchers for Maybank's branch sales and service staff, as well as security guards, cleaners and others.

The Keppel conglomerate has set aside about S$200,000 to be handed out to cleaners, receptionists, security personnel and shipyard nurses. Each beneficiary gets S$200, although Keppel has not confirmed whether it will be in cash or vouchers.

But it's cold, hard dollars doled out across the board that grab attention.

Some companies are digging into their reserves to make payouts, such as global chipmaker Micron Technology, which set aside US$35 million to soothe the blow from the pandemic.

From that kitty, about three-quarters of employees in Singapore are eligible for S$850 each. Country manager Chen Kok Sing said the payout is "to support them with their extra expenses and hardships they are facing during this extraordinary time".

Similarly, Citi Singapore will credit a one-off payment of S$1,200 to staff who earn less than S$70,000 a year - a pledge of some S$2 million in all.

Elsewhere, real estate agency PropNex last week moved to release more than S$25 million in advance commissions and management fees for its salespeople and team leaders.

CapitaLand's emergency financial assistance scheme offers employees interest-free loans of up to one month's basic salary, while confirmed staff at OCBC Bank are eligible for interest-free loans of six times their basic monthly wage or S$30,000, whichever is lower.

Ernest Phang, OCBC's head of corporate services for group human resources, also indicated that the lender introduced a healthcare package in response to the coronavirus in March.

It includes telehealth consultations, as well as vouchers for ride-hailing firm Grab so employees who are not feeling well do not need to take public transport to see a doctor.

"Despite a reduction in recruitment budgets, many companies are committed to protecting and supporting their employees," Godelieve van Dooren, partner at human resources consultancy Mercer, told BT.

"In the immediate term, Mercer consultants are working closely with employers to address employee concerns around their personal finances," she added.

For instance, the firm is helping Singapore-based clients to develop customised financial education programmes for their staff.