Businesses hope for speedy aid to address immediate needs

Singapore

WITH the Covid-19 virus outbreak likely to last till the end of the year, businesses are hoping to get more help to retain their workforce and quicker aid within the next two to three months in the government's second support package.

"The package, regardless of size, should be targeted at preserving jobs and addressing the immediate needs of our businesses so they can survive," said Ho Meng Kit, CEO of the Singapore Business Federation (SBF). He expects that the second package will enhance the government's first Stabilisation and Support Package, offering more support over a longer period.

Businesses will welcome tax rebates, waivers of licensing fees and reduction in handling costs, as well as more bridging loans, Mr Ho said. Given that the virus is expected to linger, businesses would also benefit from greater access to healthcare supplies and equipment.

T Chandroo, chairman of the Singapore Indian Chamber of Commerce and Industry (SICCI), highlighted that small and medium-sized enterprises (SMEs) in particular are in dire need of support to retain their workforce.

"Some may even need six months to a full year's worth of their previous annual revenue to stay afloat," Dr Chandroo said.

Vihang Patel, co-founder and CEO of Finaxar, a fintech startup focused on small business financing, agreed, saying: "The government previously announced a three-month programme in support of (payroll struggles), but an expansion to a more SME-focused package beyond the other sectors mentioned (tourism, transport, etc) should be introduced. This is also due to the trickle-down impact that these industries will have on other industries."

The SICCI is in favour of the second package being larger than the first and kicking in within two months. Said Dr Chandroo: "At this stage, it might be prudent to match the support that was given during the Sars outbreak in 2003 (S$230 million) and the global financial crisis in 2008 which was a S$4.9 billion Resilience Package."

Vick Aggarwala, CEO of electronics distributor Supreme Components International, said that tax rebates and more wage support in the form of recurring payouts would help him to retain staff and stay afloat.

"Whatever we get from the government, we will give back to our employees," he said.

Jaymes Sim, senior manager at shipping and marine supplier Mooreast Asia, suggested that the Wage Credit Scheme could be extended to more industries, and the Working Capital Loan scheme accelerated to offer relief more quickly.

Singapore Hotel Association (SHA) president Kwee Wei-Lin said she hopes the second package will have more support for manpower, as it is the largest component of hotels' fixed costs. The measures should also be disbursed as soon as possible, because cash flow is crucial to hotels' survival, she said.

Thomas Koh, COO of Mr Bean, said that rental and manpower costs continue to be key concerns for retail and food and beverage players, and called for the help from both packages to be disbursed more quickly.

The Singapore Retailers Association (SRA) proposed that the government could refund the 15 per cent property tax rebate promised earlier directly to retailers to speed up the process and ensure that they receive the full amount they are due.

To attract the public back to the shopping districts and stimulate spending, households could be given shopping vouchers, and electronic road pricing (ERP) charges and goods and services tax (GST) could be waived until the end of June or as long as the Covid-19 situation lasts, it added.

"We need these now as there are many retailers who will not outlast the virus," SRA said.

Andrew Chan, managing director of The Soup Spoon, suggested lowering the foreign worker levy as a more immediate way to help businesses. "We need the help now, not three months or half a year later. If you want to prevent job loss, you have to do it quickly because a lot of companies can't afford to wait."

Some firms did not ask for more subsidies and handouts, but suggested other ways to help businesses. For instance, government spending in the form of continuing rather than suspending large construction projects, and prioritising local contractors for these, would boost the construction industry more meaningfully than short-term measures, said Derek Wu, managing director of D-Team Engineering.

"Lowering or suspending the manpower levy for a short time would be helpful, but that would only benefit those that have jobs in hand," Mr Wu said.

Pawan Khaitan, president of commodity trader Khaitan International, noted that while banks are being encouraged to lend more, the interest rates are still rather high, and the loans being offered in Singapore dollars is not ideal for Khaitan International, which trades in US dollars. "Banks could have more flexibility in adjusting to customers' needs," he suggested.

Adrien Desbaillets, cofounder of SaladStop!, said that measures to encourage locals and tourists to resume spending would encourage longer-term recovery.

"I can see people are coming back out, restaurants are getting busy on Friday nights and Saturdays. All of this is a confidence booster for the economy, and the mood will improve," he said.

- Additional reporting by Lynette Tan

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