S$1.1b package to aid workers, businesses hit by tighter Covid-19 measures

Singapore

THE government will enhance its support measures through a S$1.1 billion support package to aid workers and businesses as Singapore returned to Phase 2 (Heightened Alert).

The package will be funded by reallocations from one-off underutilisation of funds due to Covid-19 as well as fiscal resources set aside earlier in the event of an extension of support measures, the Ministry of Finance (MOF) said on Friday.

This move comes just a day after stricter curbs - including a ban on dining-out and a two-person cap on social gatherings - were reintroduced.

Finance Minister Lawrence Wong said in an Instagram video post on Friday: "I have been engaging - virtually - our business leaders and trade associations to get their feedback and to see how the government can provide better support."

The package was put together based on their inputs and to help businesses and workers "tide through this heightened alert period", he added.

Earlier this week, The Alliance of Frontline Business Trade Associations had pleaded for more support measures for the businesses in the retail, food and beverage and services sectors.

From July 22 to Aug 18, the Jobs Support Scheme (JSS) will be enhanced to 60 per cent for sectors where tightened measures require the suspension of many or all activities.

These include food and beverage (F&B) outlets, gyms, fitness studios, performing arts organisations, and arts education centres.

For other sectors significantly affected by the restrictions - including retail, personal care services, tourist attractions, licensed hotels, cruise and regional ferry operators, Mice (meetings, incentives, conferencing and exhibitions) organisers, travel agents, museums, art galleries, cinema operators and other family entertainment centres - JSS support will be bumped up to 40 per cent for the same period.

The JSS support will taper to 10 per cent from Aug 19 to 31.

Tenants can also expect to get more help with rental costs. Qualifying tenants of government-owned commercial properties will receive a four-week rental waiver, while those of privately-owned commercial properties will get a two-week rental relief cash payout.

This would effectively offset rent for the full duration of the heightened alert period for government-owned commercial properties, and for half the duration of heightened measures for privately-owned commercial properties.

MOF also noted that not all landlords were forthcoming with rental support despite being encouraged to do so during the last Phase 2 (Heightened Alert) period.

It will therefore be looking at the sharing of rental obligations among government, landlords and qualifying tenants, with more details to be announced by the Ministry of Law at a later date.

That said, the ministry will take the circumstances of landlords who face "genuine hardship" into consideration.

Stallholders in centres managed by the National Environment Agency (NEA) or NEA-appointed operators will each receive a one-off cash assistance of S$500 under the new Market and Hawker Centre Relief Fund. This is on top of the current one-month rental waivers and one-month subsidy for table-cleaning and centralised dishwashing services fees.

Enterprise Singapore (ESG) has also reintroduced the Food Delivery Booster Package to defray food delivery costs from July 22 to Aug 18. ESG will fund 5 percentage points of commission cost charged by food delivery platforms and 20 per cent of delivery costs for food delivery orders through third-party logistics partners.

In addition, there will be targeted support given to some segments.

For taxi and private hire car drivers, the Covid-19 Driver Relief Fund will be extended from July 22, providing eligible drivers with an additional S$10 per vehicle per day till Aug 31, and an additional S$5 per vehicle per day till Sept 30.

For workers, the temporary Covid-19 Recovery Grant will be extended to Aug 31; existing recipients who require assistance can apply for a second support payout.

The temporary Covid-19 Recovery Grant provides a payout of up to S$700 for those placed on involuntary no-pay leave, and up to S$500 who have lost at least half of their income for at least one month due to tightened safe management measures since May 16.

Deputy Prime Minister Heng Swee Keat wrote in a Facebook post on Friday: "Covid-19 has been very tough for affected businesses, including our F&B outlets, retailers, gyms, and hawkers. Not only have they seen their sales come down, the need to constantly adapt to the evolving situation together with the uncertainties faced have also taken a toll."

Meanwhile, credit support measures remain available. All three local banks - DBS, OCBC and UOB - said that they welcome the government's latest support package and will continue to support their small and medium-sized enterprise clients.

READ MORE: Businesses welcome fresh relief measures, but fear 'stopgap' help will come too late